Global Payments (GPN) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with the launch of a broad transformation agenda, realignment of strategy, and a shift to a unified global operating model, driving strong operational and financial performance.

• Transformation included a holistic business review, realignment of the operating model, and a focus on high-growth, differentiated areas, with expected annual run-rate operating income benefits of over $600 million by H1 2027.

• Significant progress was made in streamlining operations, consolidating technology, and harmonizing global product offerings under the Genius brand.

• The company exited subscale markets, divested non-core assets, and acquired stakes in key joint ventures to simplify governance and operations.

• Early evidence of transformation benefits includes improved collaboration, efficiency, and technology standardization.

Financial highlights

• FY 2024 adjusted net revenue was $9.15B, up 6% year-over-year (+6.5% constant currency ex-dispositions); Q4 adjusted net revenue was $2.29B, up 5% (+6.5% constant currency ex-dispositions).

• FY 2024 adjusted EPS grew 11% to $11.55; Q4 adjusted EPS was $2.95, up 11% (12% constant currency).

• FY 2024 adjusted operating margin was 45.0%, up 40 bps; Q4 margin was 45.2%.

• Adjusted free cash flow for the year was $2.7B (95% conversion), with Q4 conversion at 110%.

• FY 2024 GAAP revenue grew 4.7% to $10.11B; GAAP diluted EPS was $6.16, up from $3.77.

Outlook and guidance

• 2025 guidance: constant currency adjusted net revenue growth of 5%-6% (excluding dispositions), with adjusted operating margin expanding ~50 bps.

• Adjusted EPS growth projected at 10%-11% constant currency; FX headwind of 175 bps expected.

• Capital expenditures planned at $780M (~8% of revenue); adjusted free cash flow conversion >90%.

• ~$2B targeted for shareholder returns in 2025, with further debt reduction planned.

• Merchant segment expected to grow ~6% and Issuer solutions ~4% in adjusted net revenue, both with ~50 bps margin expansion.