Shift4 Payments, Inc.

Shift4 Payments provides payment processing, merchant software, tax-free shopping and currency conversion services. Its customers include restaurants, hotels, sports venues and retailers. Common shares trade on the New York Stock Exchange under FOUR. It reports on a calendar-year basis.

Latest financial results

Revenue less network fees deducts payment-network charges from gross revenue. Organic growth in that measure was 8%, or 9% with currency rates held constant. The organic calculation excludes qualifying acquisitions and divestitures for four quarters. Global Blue joined the organic comparison after its July 2025 acquisition anniversary.

Organic payments revenue after network fees grew 14%, tax-free shopping revenue grew 7%, and organic subscription and other revenue declined 8%. These businesses are moving at different speeds.

Adjusted net income fell while adjusted earnings per share rose slightly, helped by a lower adjusted share count. That denominator assumes conversion of mandatory preferred stock. Reported diluted earnings per share included an $0.08 benefit from buying preferred shares below their carrying value.

Free cash flow deducts equipment, software and property spending from operating cash flow. The adjusted measure adds back acquisition, restructuring, integration and other costs, totaling $42 million in Q3. The quarter's cash increase also benefited from changes in operating assets and liabilities.

Targets through the year

Q3 revenue after network fees of $648 million and adjusted EBITDA of $310 million roughly matched August's approximate $650 million and $310 million targets. Adjusted free cash flow of $200 million exceeded the approximate $180 million target.

The current fourth-quarter targets are $625 million to $640 million of revenue after network fees, $285 million to $300 million of adjusted EBITDA, and $155 million to $165 million of adjusted free cash flow. Travel disruption and pressure on existing merchants' sales are the main headwinds management describes.

Cash, debt and repurchases

September 30 cash and cash equivalents were $1.242 billion. A separate $396 million of cash within settlement assets supports payments to merchants. Debt principal was $5.539 billion, compared with a $5.483 billion carrying value after financing costs and premiums. Undrawn revolving capacity was $550 million.

A $1 billion incremental term loan issued in July supplied about $983 million after discounts and arranger fees. Permitted uses include refinancing $633 million of convertible notes due August 1, 2027, working capital and general corporate purposes. Total term-loan principal was $1.990 billion at September 30, maturing July 2032 with scheduled amortization. Other senior notes mature in August 2032 and May 2033.

In the first nine months, operating cash flow of $418 million less $203 million of equipment, software and property spending left $215 million. Common and preferred share repurchases used $521 million; preferred dividends used a further $46 million. Q3 alone included $190 million of common and $10 million of preferred repurchases.

The new $1 billion common/preferred repurchase authorization takes effect when the previous program's $175 million remaining capacity is used, or January 1, 2027 if earlier. It has no expiration date. Mandatory preferred shares carry a 6% annual dividend on approximately $1 billion of liquidation preference and convert by May 2028. A $227 million tax receivable agreement liability is separate from debt.

Completed and pending acquisitions

Shift4 acquired control of Global Blue on July 3, 2025, with approximately $2.7 billion of consideration for accepted shares and related awards. The deal expanded tax-free shopping and international retail services. Management expects to reach nearly $50 million of synergies at the end of 2026 and has a $70 million target for 2027.

Bambora's North American business closed March 2, 2026, for $91 million in cash, or $83 million after acquired cash excluding merchant-settlement balances. It brought payments and gateway services across the U.S. and Canada.

The Paramount Commerce agreement was signed in August 2026 and remained pending at the November update. Initial consideration is about $143 million in cash, plus up to $174 million contingent on performance. Shift4 expects a fourth-quarter close after customary regulatory approvals. The Canadian business would extend account-to-account payments and payouts.