Shift4 Payments (FOUR) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 results with volumes up 35% year-over-year to $45 billion, gross revenue less network fees up 40% to $369 million, and adjusted EBITDA up 38% to $169 million, with margins at 46% and adjusted EPS of $1.07 per share.

• Gross revenue for Q1 2025 increased 20% year-over-year to $848.3 million, driven by payments-based and subscription revenue growth.

• Raised full-year 2025 guidance for both gross revenue less network fees and adjusted EBITDA, reflecting confidence in execution and ongoing momentum.

• CEO succession planning is underway as founder Jared Isaacman was nominated for NASA Administrator; succession plan in place for President Taylor Lauber.

• Announced acquisition of Global Blue, a leading payment platform for luxury brands, expected to close in early Q3, with $80 million in revenue synergies targeted by 2027.

Financial highlights

• Q1 gross revenue less network fees grew 40% year-over-year to $369 million.

• Payments-based revenue grew 15% to $755.7 million; subscription and other revenues surged 77% to $93 million, mainly from acquisitions and SkyTab SaaS growth.

• Adjusted EBITDA increased 38% to $169 million, with a margin of 46%, exceeding guidance.

• Net income attributable to Shift4 Payments, Inc. was $16.7 million, down from $20.6 million in Q1 2024, reflecting higher operating expenses and interest costs.

• Cash and cash equivalents at quarter-end were $1.2 billion; total debt outstanding was $2.87 billion.

Outlook and guidance

• Raised full-year 2025 guidance: gross revenue less network fees to $1.66–$1.73 billion (23–28% growth), adjusted EBITDA to $840–$865 million (24–28% growth).

• Q2 guidance: gross revenue less network fees of $405–$415 million, with adjusted EBITDA margins around 50%.

• Expect over 50% adjusted free cash flow conversion for the full year.

• Sufficient liquidity and cash flow are anticipated to fund operations and capital needs for at least the next twelve months.

• Guidance assumes stable consumer spending and does not rely on macroeconomic improvement.