FIS (NYSE:FIS) today reported its financial results for the second quarter of 2025.
On a GAAP basis, revenue increased 5% as compared to the prior-year period to approximately $2.6 billion. GAAP net earnings attributable to common stockholders from continuing operations were $(470) million or $(0.90) per diluted share, including $(539) million of non-cash expense to reflect an increase in FIS’s deferred tax liability arising from FIS’s agreement to sell its remaining interest in Worldpay.
On an adjusted basis, revenue increased 5% as compared to the prior-year period reflecting recurring revenue growth of 6%. Adjusted EBITDA increased 5% to approximately $1.0 billion, and Adjusted EBITDA margin was relatively flat as compared to the prior-year period at 39.8%. Adjusted net earnings from continuing operations were $716 million, and Adjusted EPS increased by 1% as compared to the prior-year period to $1.36 per diluted share.
As of June 30, 2025, debt outstanding totaled $12.9 billion. Second quarter net cash provided by operating activities was $382 million, and adjusted free cash flow was $292 million. In the second quarter, the Company returned $459 million of capital to shareholders through $246 million of share repurchases and $212 million of dividends paid.
The Company repurchased $246 million of shares in the second quarter and is reiterating its goal to repurchase approximately $1.2 billion of shares in 2025. Additionally, the Company will continue to pay quarterly dividends targeting dividend per share growth in line with Adjusted EPS growth.
FIS raised its full-year outlook for revenue growth to 4.8 to 5.3% and Adjusted EPS growth to 10 to 11%.
On April 17, 2025, FIS entered into definitive agreements to (i) buy the Issuer Solutions business from Global Payments Inc. for an enterprise value of $13.5 billion, inclusive of $1.5 billion of anticipated net present value of tax assets, or a net purchase price of $12.0 billion, subject to customary adjustments and (ii) sell its remaining equity interest in Worldpay to Global Payments for a pre-tax value of $6.6 billion net of transaction fees and other costs.
The completion of the transaction is conditioned upon (among other things) the expiration or termination of the waiting period applicable to the Transactions under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The HSR waiting period expired as of July 18, 2025.
FIS expects to fund the Issuer Solutions Acquisition through a combination of approximately $8 billion of new debt and the after-tax proceeds from the Worldpay Minority Interest Sale. Following the closing of the transactions, the Company expects pro forma gross leverage to be approximately 3.4x, deleveraging to its target gross leverage of 2.8x within 18 months.
The transactions are expected to close simultaneously in the first half of 2026, subject to regulatory approvals and other customary closing conditions.
