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Fiserv Reports Fourth Quarter and Full Year 2024 Results

FI

GAAP revenue growth of 7% both in the quarter and for the full year;
GAAP EPS increased 13% in the quarter and 8% for the full year;
Operating cash flow was $6.63 billion for the full year;
Organic revenue growth of 13% in the quarter and 16% for the full year;
Adjusted EPS increased 15% in the quarter and 17% for the full year;
Free cash flow was $5.23 billion for the full year;
Company expects 2025 organic revenue growth of 10% to 12%
and adjusted EPS of $10.10 to $10.30, or growth of 15% to 17%

Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology solutions, today reported financial results for the fourth quarter and full year 2024.

Fourth Quarter and Full Year 2024 GAAP Results

GAAP revenue for the company increased 7% to $5.25 billion in the fourth quarter of 2024 compared to the prior year period, with 11% growth in the Merchant Solutions segment and 3% growth in the Financial Solutions segment. GAAP revenue for the company increased 7% to $20.46 billion for the full year 2024 compared to the prior year, with 10% growth in the Merchant Solutions segment and 4% growth in the Financial Solutions segment.

GAAP earnings per share was $1.64 in the fourth quarter and $5.38 for the full year 2024, an increase of 13% and 8%, respectively, compared to the prior year periods. The full year 2024 included a $595 million non-cash impairment charge related to one of the company’s equity method investments, as well as a $147 million non-cash settlement charge in the fourth quarter for terminated pension plans. The full year 2023 included a $172 million gain related to the sale of the company’s financial reconciliation business.

GAAP operating margin was 31.8% and 28.7% in the fourth quarter and full year 2024 compared to 29.4% and 26.3% in the fourth quarter and full year 2023. GAAP operating margin in the Merchant Solutions segment was 39.2% and 37.0% in the fourth quarter and full year 2024 compared to 37.7% and 34.1% in the fourth quarter and full year 2023. GAAP operating margin in the Financial Solutions segment was 51.7% and 47.3% in the fourth quarter and full year 2024 compared to 48.4% and 45.9% in the fourth quarter and full year 2023. Net cash provided by operating activities was $6.63 billion for the full year 2024.

“Fiserv’s track record of growth and consistency continued through 2024 — our fourth year in a row of double-digit organic revenue growth and 39th consecutive year of double-digit adjusted earnings per share growth,” said Frank Bisignano, Chairman and Chief Executive Officer of Fiserv. “The strength and sustainability of Fiserv’s performance is a testament to our unparalleled business model which generates high recurring revenue, strong incremental margin, and healthy free cash flow.”

Fourth Quarter and Full Year 2024 Non-GAAP Results and Additional Information

  • Adjusted revenue increased 7% to $4.90 billion in the fourth quarter and 7% to $19.12 billion for the full year 2024 compared to the prior year periods.
  • Organic revenue growth was 13% in the fourth quarter of 2024, led by 23% growth in the Merchant Solutions segment and 4% growth in the Financial Solutions segment.
  • Organic revenue growth was 16% for the full year 2024, led by 27% growth in the Merchant Solutions segment and 6% growth in the Financial Solutions segment.
  • Adjusted earnings per share increased 15% to $2.51 in the fourth quarter and 17% to $8.80 for the full year 2024 compared to the prior year periods.
  • Adjusted operating margin increased 180 basis points to 42.9% in the fourth quarter and 170 basis points to 39.4% for the full year 2024 compared to the prior year periods.
  • Adjusted operating margin increased 150 basis points to 39.2% in the Merchant Solutions segment and 320 basis points to 51.7% in the Financial Solutions segment in the fourth quarter of 2024, compared to the prior year period.
  • Adjusted operating margin increased 290 basis points to 37.0% in the Merchant Solutions segment and 130 basis points to 47.3% in the Financial Solutions segment for the full year 2024, compared to the prior year.
  • The company repurchased 6.1 million shares of common stock for $1.3 billion in the fourth quarter and 33.9 million shares of common stock for $5.5 billion in the full year 2024.
  • In January 2025, Fiserv was named one of Fortune® World’s Most Admired Companies, a recognition received by the company for 10 of the last 11 years.

Outlook for 2025

Fiserv expects organic revenue growth of 10% to 12% and adjusted earnings per share of $10.10 to $10.30, representing growth of 15% to 17%, for 2025.

“We are confident in our ability to meet or beat the medium-term outlook provided at our November 2023 investor conference, as ongoing Merchant and Financial Solutions initiatives are having early success,” said Bisignano. “Our 2025 guidance reflects a continuation of our product, client and distribution strategies and our commitment to operational excellence to drive outperformance.”

Segment Realignment

The company realigned its reportable segments during the first quarter of 2024 to correspond with changes in its business designed to further enhance operational performance in the delivery of its integrated portfolio of products and solutions to its financial institution clients (“Segment Realignment”). The company’s new reportable segments are Merchant Solutions and Financial Solutions. Segment results for the three months and full year ended December 31, 2023 have been recast to reflect the Segment Realignment.

Earnings Conference Call

The company will discuss its fourth quarter and full year 2024 results in a live webcast at 7 a.m. CT on Wednesday, February 5, 2025. The webcast, along with supplemental financial information, can be accessed on the investor relations section of the Fiserv website at investors.fiserv.com. A replay will be available approximately one hour after the conclusion of the live webcast.

About Fiserv

Fiserv, Inc. (NYSE: FI), a Fortune 500™ company, aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale and business management platform. Fiserv is a member of the S&P 500® Index and one of Fortune® World’s Most Admired Companies. Visit fiserv.com and follow on social media for more information and the latest company news.

Use of Non-GAAP Financial Measures

In this news release, the company supplements its reporting of information determined in accordance with generally accepted accounting principles (“GAAP”), such as revenue, operating income, operating margin, net income attributable to Fiserv, diluted earnings per share and net cash provided by operating activities, with “adjusted revenue,” “adjusted revenue growth,” “organic revenue,” “organic revenue growth,” “adjusted operating income,” “adjusted operating margin,” “adjusted net income,” “adjusted earnings per share,” “adjusted earnings per share growth,” and “free cash flow.” Management believes that adjustments for certain non-cash or other items and the exclusion of certain pass-through revenue and expenses should enhance shareholders' ability to evaluate the company’s performance, as such measures provide additional insights into the factors and trends affecting its business. Therefore, the company excludes these items from its GAAP financial measures to calculate these unaudited non-GAAP measures. The corresponding reconciliations of these unaudited non-GAAP financial measures to the most comparable GAAP measures are included in this news release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the non-cash and other items described below that are excluded from the non-GAAP outlook measures. See page 15 for additional information regarding the company’s forward-looking non-GAAP financial measures.

Examples of non-cash or other items may include, but are not limited to, non-cash intangible asset amortization expense associated with acquisitions; non-cash impairment and terminated pension plan settlement charges; severance costs; merger and integration costs; gains or losses from the sale of businesses, certain assets or investments; and certain discrete tax benefits and expenses. The company excludes these items to more clearly focus on the factors management believes are pertinent to the company’s operations, and management uses this information to make operating decisions, including the allocation of resources to the company’s various businesses.

The company adjusts its non-GAAP results to exclude amortization of acquisition-related intangible assets as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Management believes that the adjustment of acquisition-related intangible asset amortization supplements GAAP information with a measure that can be used to assess the comparability of operating performance. Although the company excludes amortization from acquisition-related intangible assets from its non-GAAP expenses, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Management believes organic revenue growth is useful because it presents revenue growth excluding the impact of foreign currency fluctuations, acquisitions, dispositions and the impact of the company’s postage reimbursements. Management believes free cash flow is useful to measure the funds generated in a given period that are available for debt service requirements and strategic capital decisions. Management believes this supplemental information enhances shareholders’ ability to evaluate and understand the company’s core business performance.

These unaudited non-GAAP measures may not be comparable to similarly titled measures reported by other companies and should be considered in addition to, and not as a substitute for, revenue, operating income, operating margin, net income attributable to Fiserv, diluted earnings per share and net cash provided by operating activities or any other amount determined in accordance with GAAP.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated organic revenue growth, adjusted earnings per share, adjusted earnings per share growth and other statements regarding our future financial performance. Statements can generally be identified as forward-looking because they include words such as “believes,” “anticipates,” “expects,” “could,” “should,” “confident,” “likely,” “plan,” or words of similar meaning. Statements that describe the company’s future plans, outlook, objectives or goals are also forward-looking statements.

Forward-looking statements are subject to assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that could cause the company’s actual results to differ materially include, among others, the following: the company’s ability to compete effectively against new and existing competitors and to continue to introduce competitive new products and services on a timely, cost-effective basis; changes in customer demand for the company’s products and services; the ability of the company’s technology to keep pace with a rapidly evolving marketplace; the success of the company’s merchant alliances, some of which are not controlled by the company; the impact of a security breach or operational failure in the company’s business, including disruptions caused by other participants in the global financial system; losses due to chargebacks, refunds or returns as a result of fraud or the failure of the company’s vendors and merchants to satisfy their obligations; changes in local, regional, national and international economic or political conditions, including those resulting from heightened inflation, rising interest rates, a recession, bank failures, or intensified international hostilities, and the impact they may have on the company and its employees, clients, vendors, supply chain, operations and sales; the effect of proposed and enacted legislative and regulatory actions affecting the company or the financial services industry as a whole; the company’s ability to comply with government regulations and applicable card association and network rules; the protection and validity of intellectual property rights; the outcome of pending and future litigation and governmental proceedings; the company’s ability to successfully identify, complete and integrate acquisitions, and to realize the anticipated benefits associated with the same; the impact of the company’s strategic initiatives; the company’s ability to attract and retain key personnel; volatility and disruptions in financial markets that may impact the company’s ability to access preferred sources of financing and the terms on which the company is able to obtain financing or increase its costs of borrowing; adverse impacts from currency exchange rates or currency controls; changes in corporate tax and interest rates; and other factors included in “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2023, and in other documents that the company files with the Securities and Exchange Commission, which are available at http://www.sec.gov. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements. The company assumes no obligation to update any forward-looking statements, which speak only as of the date of this news release.

Fiserv, Inc.

Condensed Consolidated Statements of Income

(In millions, except per share amounts, unaudited)

Three Months Ended
December 31,

Year Ended
December 31,

2024

2023

2024

2023

Revenue

Processing and services

$

4,260

$

4,025

$

16,637

$

15,630

Product

991

892

3,819

3,463

Total revenue

5,251

4,917

20,456

19,093

Expenses

Cost of processing and services

1,320

1,265

5,363

5,332

Cost of product

699

577

2,650

2,338

Selling, general and administrative

1,564

1,624

6,564

6,576

Net (gain) loss on sale of businesses and other assets

5

(167

)

Total expenses

3,583

3,471

14,577

14,079

Operating income

1,668

1,446

5,879

5,014

Interest expense, net

(323

)

(284

)

(1,195

)

(976

)

Other expense, net

(161

)

(59

)

(178

)

(140

)

Income before income taxes and loss from investments in unconsolidated affiliates

1,184

1,103

4,506

3,898

Income tax provision

(193

)

(210

)

(641

)

(754

)

Loss from investments in unconsolidated affiliates

(43

)

(4

)

(685

)

(15

)

Net income

948

889

3,180

3,129

Less: net income attributable to noncontrolling interests

10

19

49

61

Net income attributable to Fiserv

$

938

$

870

$

3,131

$

3,068

GAAP earnings per share attributable to Fiserv – diluted

$

1.64

$

1.45

$

5.38

$

4.98

Diluted shares used in computing earnings per share attributable to Fiserv

571.4

602.7

582.1

615.9

Earnings per share is calculated using actual, unrounded amounts.

Fiserv, Inc.

Reconciliation of GAAP to

Adjusted Net Income and Adjusted Earnings Per Share

(In millions, except per share amounts, unaudited)

Three Months Ended
December 31,

Year Ended
December 31,

2024

2023

2024

2023

GAAP net income attributable to Fiserv

$

938

$

870

$

3,131

$

3,068

Adjustments:

Merger and integration costs 1

22

38

81

158

Severance costs

80

22

157

74

Amortization of acquisition-related intangible assets 2

335

378

1,420

1,623

Non wholly-owned entity activities 3

22

31

100

133

Impairment of equity method investments 4

25

635

Non-cash settlement charge for terminated pension plans 5

147

147

Net (gain) loss on sale of businesses and other assets 6

5

(167

)

Canadian tax law change 7

27

Tax impact of adjustments 8

(132

)

(94

)

(548

)

(355

)

Argentine Peso devaluation 9

71

71

Adjusted net income

$

1,437

$

1,321

$

5,123

$

4,632

GAAP earnings per share attributable to Fiserv - diluted

$

1.64

$

1.45

$

5.38

$

4.98

Adjustments – net of income taxes:

Merger and integration costs 1

0.03

0.05

0.11

0.21

Severance costs

0.11

0.03

0.22

0.10

Amortization of acquisition-related intangible assets 2

0.47

0.50

1.95

2.11

Non wholly-owned entity activities 3

0.03

0.04

0.14

0.17

Impairment of equity method investments 4

0.07

0.85

Non-cash settlement charge for terminated pension plans 5

0.16

0.16

Net (gain) loss on sale of businesses and other assets 6

0.01

(0.19

)

Canadian tax law change 7

0.04

Argentine Peso devaluation 9

0.12

0.12

Adjusted earnings per share

$

2.51

$

2.19

$

8.80

$

7.52

GAAP earnings per share attributable to Fiserv growth

13

%

8

%

Adjusted earnings per share growth

15

%

17

%

See pages 3-4 for disclosures related to the use of non-GAAP financial measures.

Earnings per share is calculated using actual, unrounded amounts.

1

Represents acquisition and related integration costs incurred in connection with acquisitions. Merger and integration costs associated with integration activities for the full year 2024 primarily include $23 million of third-party professional service fees, $22 million of share-based compensation, and $14 million related to a legal settlement. Merger and integration costs associated with integration activities for the full year 2023 primarily include $70 million of third-party professional service fees and $35 million of share-based compensation.

2

Represents amortization of intangible assets acquired through acquisition, including customer relationships, software/technology and trade names. This adjustment does not exclude the amortization of other intangible assets such as contract costs (sales commissions and deferred conversion costs), capitalized and purchased software, financing costs and debt discounts. See additional information on page 14 for an analysis of the company’s amortization expense.

3

Represents the company’s share of amortization of acquisition-related intangible assets at its unconsolidated affiliates, as well as the minority interest share of amortization of acquisition-related intangible assets at its subsidiaries in which the company holds a controlling financial interest.

4

Represents a non-cash impairment of certain equity method investments during 2024, primarily related to the company’s Wells Fargo Merchant Services joint venture, recorded within loss from investments in unconsolidated affiliates in the consolidated statement of income.

5

Represents a non-cash settlement charge associated with the terminations of the company’s defined benefit pension plans in the United Kingdom and United States. Settlements of the terminated plans were completed in the fourth quarter of 2024.

6

Represents a net gain for the full year primarily associated with the sale of the company’s financial reconciliation business during 2023.

7

Represents the impact of a multi-year retroactive Canadian tax law change, enacted in June 2023, related to the Goods and Services Tax / Harmonized Sales Tax (GST/HST) treatment of payment card services.

8

The tax impact of adjustments is calculated using a tax rate of 20% for both the full year 2024 and 2023, which approximates the company’s annual effective tax rate, exclusive of actual tax impacts of an aggregate $196 million benefit associated with the impairment of certain equity method investments and the settlement charge for terminated pension plans during 2024, and a $48 million provision associated with the net gain on sale of businesses during 2023.

9

On December 12, 2023, the Argentina government announced economic reforms, including a significant devaluation of the Argentine Peso. This adjustment represents the corresponding one-day foreign currency exchange loss from the remeasurement of the company’s Argentina subsidiary’s monetary assets and liabilities in Argentina’s highly inflationary economy.

Fiserv, Inc.

Financial Results by Segment

(In millions, unaudited)

Three Months Ended
December 31,

Year Ended
December 31,

2024

2023

2024

2023

Total Company

Revenue

$

5,251

$

4,917

$

20,456

$

19,093

Adjustments:

Postage reimbursements

(349

)

(320

)

(1,333

)

(1,247

)

Deferred revenue purchase accounting adjustments

3

19

Adjusted revenue

$

4,902

$

4,600

$

19,123

$

17,865

Operating income

$

1,668

$

1,446

$

5,879

$

5,014

Adjustments:

Merger and integration costs 1

22

38

81

158

Severance costs

80

22

157

74

Amortization of acquisition-related intangible assets

335

378

1,420

1,623

Net (gain) loss on sale of businesses and other assets

5

(167

)

Canadian tax law change

27

Adjusted operating income

$

2,105

$

1,889

$

7,537

$

6,729

Operating margin

31.8

%

29.4

%

28.7

%

26.3

%

Adjusted operating margin

42.9

%

41.1

%

39.4

%

37.7

%

Merchant Solutions (“Merchant”) 2

Revenue

$

2,499

$

2,261

$

9,631

$

8,722

Operating income

$

979

$

851

$

3,561

$

2,974

Operating margin

39.2

%

37.7

%

37.0

%

34.1

%

Financial Solutions (“Financial”)

Revenue

$

2,401

$

2,331

$

9,477

$

9,101

Adjustments:

Deferred revenue purchase accounting adjustments

3

19

Adjusted revenue

$

2,401

$

2,334

$

9,477

$

9,120

Operating income

$

1,241

$

1,128

$

4,485

$

4,178

Adjustments:

Deferred revenue purchase accounting adjustments

3

19

Adjusted operating income

$

1,241

$

1,131

$

4,485

$

4,197

Operating margin

51.7

%

48.4

%

47.3

%

45.9

%

Adjusted operating margin

51.7

%

48.5

%

47.3

%

46.0

%

Fiserv, Inc.

Financial Results by Segment (cont.)

(In millions, unaudited)

Three Months Ended
December 31,

Year Ended
December 31,

2024

2023

2024

2023

Corporate and Other

Revenue

$

351

$

325

$

1,348

$

1,270

Adjustments:

Postage reimbursements

(349

)

(320

)

(1,333

)

(1,247

)

Adjusted revenue

$

2

$

5

$

15

$

23

Operating loss

$

(552

)

$

(533

)

$

(2,167

)

$

(2,138

)

Adjustments:

Merger and integration costs

22

35

81

139

Severance costs

80

22

157

74

Amortization of acquisition-related intangible assets

335

378

1,420

1,623

Net (gain) loss on sale of businesses and other assets

5

(167

)

Canadian tax law change

27

Adjusted operating loss

$

(115

)

$

(93

)

$

(509

)

$

(442

)

See pages 3-4 for disclosures related to the use of non-GAAP financial measures.

Operating margin percentages are calculated using actual, unrounded amounts.

1

Includes deferred revenue purchase accounting adjustments within the Financial segment related to the 2019 acquisition of First Data Corporation. Adjustments for this residual activity concluded as of December 31, 2023.

2

For all periods presented in the Merchant segment, there were no adjustments to GAAP measures presented and thus the adjusted measures are equal to the GAAP measures presented.

Fiserv, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions, unaudited)

Year Ended
December 31,

2024

2023

Cash flows from operating activities

Net income

$

3,180

$

3,129

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and other amortization

1,672

1,479

Amortization of acquisition-related intangible assets

1,423

1,642

Amortization of financing costs and debt discounts

43

41

Share-based compensation

367

342

Deferred income taxes

(662

)

(511

)

Net gain on sale of businesses and other assets

(167

)

Loss from investments in unconsolidated affiliates

685

15

Distributions from unconsolidated affiliates

39

55

Non-cash settlement charge for terminated pension plans

147

Non-cash foreign currency exchange loss

92

76

Other operating activities

(17

)

(27

)

Changes in assets and liabilities, net of effects from acquisitions and dispositions:

Trade accounts receivable

(169

)

23

Prepaid expenses and other assets

(398

)

(790

)

Contract costs

(267

)

(246

)

Accounts payable and other liabilities

426

(54

)

Contract liabilities

70

155

Net cash provided by operating activities

6,631

5,162

Cash flows from investing activities

Capital expenditures, including capitalized software and other intangibles

(1,569

)

(1,388

)

Net proceeds from sale of businesses and other assets

234

Merchant cash advances, net

(801

)

Payments for acquisitions of businesses, net of cash acquired

(13

)

Distributions from unconsolidated affiliates

60

136

Purchases of investments

(155

)

(39

)

Proceeds from sale of investments

61

5

Other investing activities

(3

)

Net cash used in investing activities

(2,404

)

(1,068

)

Cash flows from financing activities

Debt proceeds

6,783

5,567

Debt repayments

(5,396

)

(3,015

)

Net borrowings from (repayments of) commercial paper and short-term borrowings

278

(1,456

)

Payments of debt financing costs

(28

)

(38

)

Proceeds from issuance of treasury stock

97

101

Purchases of treasury stock, including employee shares withheld for tax obligations

(5,837

)

(4,827

)

Settlement activity, net

(527

)

Distributions paid to noncontrolling interests and redeemable noncontrolling interest

(55

)

(34

)

Payment to acquire noncontrolling interest of consolidated subsidiary

(56

)

Payments of acquisition-related contingent consideration

(3

)

(35

)

Other financing activities

(4

)

(36

)

Net cash used in financing activities

(4,165

)

(4,356

)

Effect of exchange rate changes on cash and cash equivalents

(32

)

33

Net change in cash and cash equivalents

30

(229

)

Cash and cash equivalents, beginning balance

2,963

3,192

Cash and cash equivalents, ending balance

$

2,993

$

2,963

Fiserv, Inc.

Condensed Consolidated Balance Sheets

(In millions, unaudited)

December 31,

2024

2023

Assets

Cash and cash equivalents

$

1,236

$

1,204

Trade accounts receivable – net

3,725

3,582

Prepaid expenses and other current assets

3,087

2,344

Settlement assets

15,429

27,681

Total current assets

23,477

34,811

Property and equipment – net

2,374

2,161

Customer relationships – net

5,868

7,075

Other intangible assets – net

4,072

4,135

Goodwill

36,584

37,205

Contract costs – net

996

968

Investments in unconsolidated affiliates

1,506

2,262

Other long-term assets

2,299

2,273

Total assets

$

77,176

$

90,890

Liabilities and Equity

Accounts payable and other current liabilities

$

4,799

$

4,355

Short-term and current maturities of long-term debt

1,110

755

Contract liabilities

819

761

Settlement obligations

15,429

27,681

Total current liabilities

22,157

33,552

Long-term debt

23,730

22,363

Deferred income taxes

2,477

3,078

Long-term contract liabilities

263

250

Other long-term liabilities

863

978

Total liabilities

49,490

60,221

Redeemable noncontrolling interest

161

Fiserv shareholders’ equity

27,068

29,857

Noncontrolling interests

618

651

Total equity

27,686

30,508

Total liabilities and equity

$

77,176

$

90,890

Fiserv, Inc.

Selected Non-GAAP Financial Measures and Additional Information

(In millions, unaudited)

Organic Revenue Growth 1

Three Months Ended
December 31,

Year Ended
December 31,

2024

2023

Growth

2024

2023

Growth

Total Company

Adjusted revenue

$

4,902

$

4,600

$

19,123

$

17,865

Currency impact 2

294

1,621

Acquisition adjustments

(1

)

(10

)

Divestiture adjustments

(2

)

(5

)

(15

)

(46

)

Organic revenue

$

5,193

$

4,595

13

%

$

20,719

$

17,819

16

%

Merchant

Adjusted revenue

$

2,499

$

2,261

$

9,631

$

8,722

Currency impact 2

274

1,499

Acquisition adjustments

(1

)

(10

)

Organic revenue

$

2,772

$

2,261

23

%

$

11,120

$

8,722

27

%

Financial

Adjusted revenue

$

2,401

$

2,334

$

9,477

$

9,120

Currency impact 2

20

122

Divestiture adjustments

(23

)

Organic revenue

$

2,421

$

2,334

4

%

$

9,599

$

9,097

6

%

Corporate and Other

Adjusted revenue

$

2

$

5

$

15

$

23

Divestiture adjustments

(2

)

(5

)

(15

)

(23

)

Organic revenue

$

$

$

$

See pages 3-4 for disclosures related to the use of non-GAAP financial measures.

Organic revenue growth is calculated using actual, unrounded amounts.

1

Organic revenue growth is measured as the change in adjusted revenue (see pages 9-10) for the current period excluding the impact of foreign currency fluctuations and revenue attributable to acquisitions and dispositions, divided by adjusted revenue from the prior period excluding revenue attributable to dispositions.

2

Currency impact is measured as the increase or decrease in adjusted revenue for the current period by applying prior period foreign currency exchange rates to present a constant currency comparison to prior periods.

Fiserv, Inc.

Selected Non-GAAP Financial Measures and Additional Information (cont.)

(In millions, unaudited)

Free Cash Flow

Year Ended
December 31,

2024

2023

Net cash provided by operating activities

$

6,631

$

5,162

Capital expenditures

(1,569

)

(1,388

)

Adjustments:

Distributions paid to noncontrolling interests and redeemable noncontrolling interest

(55

)

(34

)

Distributions from unconsolidated affiliates included in cash flows from investing activities

60

136

Severance, merger and integration payments

179

169

Tax payments on adjustments

(36

)

(34

)

Other

23

5

Free cash flow

$

5,233

$

4,016

Total Amortization 1

Three Months Ended
December 31,

Year Ended
December 31,

2024

2023

2024

2023

Acquisition-related intangible assets

$

334

$

381

$

1,423

$

1,642

Capitalized software and other intangibles

167

133

631

493

Purchased software

57

58

232

225

Financing costs and debt discounts

10

11

43

41

Sales commissions

29

27

113

110

Deferred conversion costs

26

24

108

85

Total amortization

$

623

$

634

$

2,550

$

2,596

See pages 3-4 for disclosures related to the use of non-GAAP financial measures.

1

The company adjusts its non-GAAP results to exclude amortization of acquisition-related intangible assets as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Management believes that the adjustment of acquisition-related intangible asset amortization supplements the GAAP information with a measure that can be used to assess the comparability of operating performance. Although the company excludes amortization from acquisition-related intangible assets from its non-GAAP expenses, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.

Fiserv, Inc.
Full Year Forward-Looking Non-GAAP Financial Measures

Reconciliations of unaudited non-GAAP financial measures to the most comparable GAAP measures are included in this news release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of these items that are excluded from the non-GAAP outlook measures. The company’s forward-looking non-GAAP financial measures for 2025, including organic revenue growth, adjusted earnings per share and adjusted earnings per share growth, are designed to enhance shareholders’ ability to evaluate the company’s performance by excluding certain items to focus on factors and trends affecting its business.

Organic Revenue Growth - The company’s organic revenue growth outlook for 2025 excludes the impact of foreign currency fluctuations, acquisitions, dispositions and the impact of the company’s postage reimbursements. The currency impact is measured as the increase or decrease in the expected adjusted revenue for the period by applying prior period foreign currency exchange rates to present a constant currency comparison to prior periods.

Growth

2025 Revenue

9% - 11%

Postage reimbursements

(0.5)%

2025 Adjusted revenue

8.5% - 10.5%

Currency impact

1.5%

Acquisition adjustments

—%

Divestiture adjustments

—%

2025 Organic revenue

10% - 12%

Adjusted Earnings Per Share - The company’s adjusted earnings per share outlook for 2025 excludes certain non-cash or other items such as non-cash intangible asset amortization expense associated with acquisitions; non-cash impairment charges; merger and integration costs; severance costs; gains or losses from the sale of businesses, certain assets and investments; and certain discrete tax benefits and expenses. The company estimates that amortization expense in 2025 with respect to acquired intangible assets will decrease approximately 10% compared to the amount incurred in 2024.

Other adjustments to the company’s financial measures that were incurred in 2024 are presented in this news release; however, they are not necessarily indicative of adjustments that may be incurred throughout 2025 or beyond. Estimates of these impacts and adjustments on a forward-looking basis are not available due to the variability, complexity and limited visibility of these items.

FI-G