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, simplification, and focus on high-growth verticals and geographies.

• Brand consolidation under the Genius POS platform is underway, leveraging market testing and integration experience to unify capabilities and drive growth.

• Operational transformation targets over $500 million in run-rate benefits by 2027, with a third reinvested in 2025 and $400 million flowing to the bottom line by 2027.

• Portfolio review has identified $500–$600 million in annual revenue for potential divestiture, with proceeds to be returned to shareholders.

• Capital allocation prioritizes $7.5 billion in shareholder returns over three years, with disciplined tuck-in M&A and a focus on organic growth.

Financial Performance and Outlook

• 2023 adjusted net revenue reached $8.7 billion, with adjusted operating margin at 44.6% and adjusted EPS of $10.42.

• 2025 is positioned as a transition year, with mid-single-digit adjusted net revenue growth and at least 50 basis points of margin expansion.

• Double-digit adjusted EPS growth is targeted for 2025, accelerating to low teens in 2026–2027 as transformation benefits materialize.

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

• Capital allocation includes CapEx at 7–8% of net revenue, maintaining ~3x net leverage, steady dividend, and $2B+ annual share repurchases.

Business Segments and Initiatives

• Merchant Solutions operates at scale with over 5 million merchant locations, 39B+ annual transactions, and a $100B+ total addressable market.

• Merchant business unified around POS/software, Integrated/Embedded, and Core Payments, with focus on SMBs, vertical fluency, and global expansion.

• Issuer Solutions is the #1 issuer processor in core markets, handling 35B+ annual transactions and 830M accounts on file, with 70% of revenue from software solutions.

• Issuer Solutions modernization to cloud-native architecture enables faster onboarding, new use cases, and modular services, targeting mid-single-digit growth with long-term margin expansion.

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