Global Payments (GPN) Investor Update summary

Strategic Vision and Transformation

• Strategy centers on being the worldwide partner of choice for commerce solutions, emphasizing unified global operations, product-led growth, and brand consolidation under the Genius POS platform.

• Operational transformation aims to streamline the business, reduce silos, and unlock over $500 million in run-rate benefits by 2027, with $400 million expected to flow to the bottom line.

• Investments are concentrated in high-growth verticals, geographies, and SMBs, with exits planned for non-core assets and select asset dispositions to accelerate value creation.

• Modernization of Issuer Solutions includes full migration to cloud-native architecture, enhancing agility, efficiency, and enabling new growth channels.

• Sustainable performance is prioritized through organic growth, disciplined capital allocation, and maximizing shareholder value.

Financial Outlook and Capital Allocation

• 2025 is positioned as a transition year, targeting mid-single-digit adjusted net revenue growth, at least 50 basis points of margin expansion, and double-digit adjusted EPS growth, accelerating to low-teens in 2026–2027.

• $7.5 billion in capital returns to shareholders is planned over the next three years, with a focus on organic growth, limited tuck-in M&A, and proceeds from non-core asset divestitures.

• Free cash flow conversion is expected to remain above 90%, with cumulative free cash flow of $8.5–$9 billion over three years.

• Capital allocation prioritizes CapEx (7-8% of net revenue), maintaining ~3x net leverage, steady dividend, and $2B+ annual share repurchases.

• Divestiture proceeds from non-core assets will be returned to shareholders, and capital expenditures will be elevated during the transformation period before normalizing.

Business Segments and Growth Drivers

• Merchant Solutions operates at scale with over 5 million merchant locations, 39B+ annual transactions, and a $100B+ total addressable market, targeting high single- to low double-digit growth in POS/software and Integrated & Embedded.

• Issuer Solutions is the #1 issuer processor in core markets, handling 35B+ annual transactions and 830M accounts, with cloud modernization and cross-selling as key growth drivers.

• B2B and commercial payments present a $36T U.S. market opportunity, with double-digit growth expected in virtual card transactions.

• Core Payments serves as a hunting ground for cross-selling higher-growth solutions, with a strategy to convert direct payment clients to integrated or POS relationships.

• Key KPIs include new POS locations, partner additions, recurring revenue growth, and transaction volumes, all showing favorable trends.