Q2 2025 Fidelity National Information Services Inc Earnings Call Transcript
Key Points
- Fidelity National Information Services Inc (FIS) reported a strong quarter with 5% revenue growth, accelerating from 4% in the first quarter.
- The company exceeded its adjusted EBITDA outlook, with margins improving by 200 basis points sequentially.
- FIS returned $460 million to shareholders through share repurchases and dividends in the second quarter.
- The strategic acquisition of a global payments issuer business and the sale of a Minority Worldpay stake are expected to strengthen FIS's financial profile and improve free cash flow.
- FIS is driving AI innovation with the upcoming launch of Banker Assist, an AI platform for commercial banking, and has multiple AI pilots across banking and capital markets.
- Free cash flow was $292 million, with a cash conversion rate of 52%, impacted by higher cash tax payments.
- Banking EBITDA margin contracted by 70 basis points due to a bad debt charge in the quarter.
- Capital Markets adjusted revenue growth was slightly below expectations due to a temporary slowdown in lending business.
- Leverage increased modestly quarter-over-quarter to 3 times, with a target long-term ratio of 2.8 times.
- The company faced a 23-point headwind in cash conversion due to higher cash tax payments.
Good day, and welcome to the FIS second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session.
(Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. George Mihalos, Head of Investor Relations. Please go ahead.
Thank you, Shereen. Good morning, everyone. Thank you for joining us today for the FIS second quarter of 2025 earnings conference call. The call is being webcasted. Today's news release, corresponding presentation, and webcast are all available on our website at fisglobal.com.
Joining me on the call this morning are Stephanie Ferris, our CEO and President, and James Kehoe, CFO. Stephanie will lead the call with a strategic and operational update, followed by James, who will review our financial results.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
