Rayna Kumar

Rayna Kumar asked about the current regulatory environment, specifically if Affirm is hearing about potential caps on BNPL rates and how the company would react to such developments.

Answer

Max Levchin, Founder and CEO of Affirm Holdings, stated that they are not hearing about specific caps on BNPL rates, but are tracking dynamic conversations at federal and state levels regarding credit card rates. He emphasized Affirm's positive relationships with regulators due to its transparent practices (no late fees, no hidden charges) and its proactive step of applying for an industrial loan company bank charter.

Rayna Kumar inquired about the regulatory environment, specifically potential caps on BNPL rates, and how Affirm would respond.

Answer

Max Levchin, Founder and CEO, stated they are not hearing about specific BNPL rate caps but are tracking broader credit card rate discussions. He emphasized Affirm's positive regulatory relationships due to their 'no late fees' approach and their bank charter application as a sign of preparing for increased scrutiny.

Rayna Kumar asked about WEX's free cash flow conversion, noting it was below 55% for the year, and sought insights into 2026 free cash flow expectations. Additionally, she inquired about the same-store sales growth for local fleets within the mobility segment.

Answer

Jagtar Narula (CFO, WEX) expressed satisfaction with 2025 free cash flow at $638 million, an improvement over 2024, and expects further increases to north of $600 million in 2026. Regarding same-store sales, he stated that local fleets showed a slight improvement over Q3 trends, while over-the-road (OTR) was slightly worse.

Rayna Kumar inquired about WEX's free cash flow conversion, which was below 55% in 2025, asking for any specific call-outs and the outlook for free cash flow in 2026. She also asked for the same-store sales growth for local fleets within mobility.

Answer

Jagtar Narula, CFO, WEX, expressed satisfaction with 2025 adjusted free cash flow of $638 million, an improvement over 2024, and expects further increases to north of $600 million in 2026. Regarding same-store sales, he noted that local fleets showed a slight improvement compared to Q3, while over-the-road was slightly worse.

Rayna Kumar from Oppenheimer asked for WEX's expectations regarding adjusted operating margin for the remainder of the year and whether margin expansion is anticipated for 2026, assuming a stable macro environment.

Answer

Jagtar Narula, CFO of WEX Inc., explained that Q3's year-over-year operating margin decline was partly due to a challenging credit loss comparison, which is expected to improve in Q4. He noted that Q4 typically sees lower operating income margins due to the travel business. For 2026, while it's too early for a definitive guide, he anticipates operating income margins to trend similarly to the current year, supported by revenue growth and the lapping of strategic investments.

Rayna Kumar asked for expectations regarding adjusted operating margin for the remainder of the year (Q4) and whether margins are anticipated to expand in 2026, assuming a stable macro environment.

Answer

Jagtar Narula, CFO, WEX Inc, explained that Q3 year-over-year operating margins were down approximately 400 basis points, with about 200 basis points attributed to a tough credit loss comparison and the remainder to sales, marketing, and product investments. He expects the credit loss impact to improve in Q4, though Q4 typically sees lower operating income margins due to the Corporate Payments travel business. For 2026, he stated it's too early for a specific guide but expects operating income margins to trend similarly to the current year, with revenue looking positive.

Rayna Kumar of Oppenheimer & Co. Inc. inquired about current travel trends within the Corporate Payments business and expectations for Q3. She also asked for the outlook on adjusted operating margin for the remainder of the year.

Answer

Chair, CEO & President Melissa Smith described the travel environment as stable and consistent with expectations, a trend projected to continue. CFO Jagtar Narula anticipates adjusted operating margins will be in line with Q2, but cautioned that Q2 costs were unusually low due to the timing of efficiency gains and investment spending, which is expected to catch up in the second half.

Rayna Kumar asked about the current travel trends observed in the Corporate Payments business and the expectations for Q3. She also requested color on the outlook for adjusted operating margin for the remainder of the year.

Answer

CEO Melissa Smith described travel trends as stable and consistent with projections, with continued volume growth. CFO Jagtar Narula stated that adjusted operating margins are expected to be in line with Q2. He cautioned that Q2 benefited from accelerated efficiency gains and slower-than-planned hiring for investments, and that spending is expected to catch up in the second half of the year.

Rayna Kumar asked for Bullish's stance on the Clarity Act, its thoughts on key provisions such as tokenization, DeFi, and stablecoin yields, and the likely timeline for the bill's passage.

Answer

Chairman and CEO Tom Farley expressed optimism that the Clarity Act is moving towards passage, despite being less optimistic on the previous call. He identified three key issues: stablecoin yield (a competitive issue for banks), DeFi KYC/AML requirements (seeking a middle ground between zero regulation and stifling innovation), and ethics/conflicts of interest (the thorniest due to presidential politics). Farley hopes for passage before the summer, emphasizing that Bullish is broadly comfortable with the bill and views its passage as crucial for market clarity and growth.

Rayna Kumar asked for Bullish's stance on the Clarity Act, its key provisions including tokenization, DeFi, and stablecoin yields, and the likely timeline for its passage.

Answer

Tom Farley, Chairman and CEO, expressed increased optimism for the Clarity Act's passage, potentially before summer. He identified three key issues: stablecoin yield (competitive, not community bank protection), DeFi KYC/AML requirements (seeking a middle ground for innovation), and ethics/conflicts of interest (the thorniest due to presidential politics). He noted Bullish is broadly comfortable with the bill and sees its passage as crucial for market structure clarity and industry growth.

Rayna Kumar asked about the specific drivers that will enable Corpay's lodging business to achieve low single-digit growth this year and sought an outlook for EBITDA margin, including any puts and takes.

Answer

CFO Peter Walker stated that lodging is expected to see negative organic growth in H1 2026, turning positive in H2 as new sales and implementations come online. He noted that EBITDA margins would increase substantially quarter-over-quarter in 2026 but be slightly down year-over-year due to acquisitions, with expansion driven by business volume growth and synergy implementation.

Rayna Kumar asked about the specific drivers that will enable the lodging business to return to low single-digit growth this year and provided an outlook for EBITDA margin in 2026, including any puts and takes.

Answer

Peter Walker, CFO, explained that lodging is expected to see negative organic growth in the first half of 2026, with a pickup in the back half driven by new sales and implementations coming online. Regarding EBITDA margins, he stated they are expected to increase substantially quarter-over-quarter in 2026, though full-year margins will be slightly down year-over-year due to recent acquisitions. Ron Clarke, Chairman and CEO, added that expense rationalization initiatives are targeting $75 million in savings, with $50 million already executed, contributing to sequential margin improvement.

Rayna Kumar asked about expectations for Q3 sales results, specifically if they would be better than Q2, and the impact of recent core consolidation news from a competitor. She also inquired about changes in pricing for core systems and ancillary services.

Answer

Gregory Adelson, President and CEO, stated that Q3 was starting well but couldn't definitively say if it would be better than Q2. He noted that Q2 sales were minimally impacted by the competitor's announcement, but the pipeline for core, complementary, and payment products is growing. Regarding pricing, Mr. Adelson indicated it has been consistent over the last couple of years, emphasizing that Jack Henry is not the lowest-cost provider, with 22 wins in the quarter reflecting their value.

Rayna Kumar asked about expectations for Q3 sales results, specifically the impact of a competitor's core consolidation news, and inquired about pricing trends for core systems and ancillary services in the competitive environment.

Answer

Gregory Adelson (President, CEO, and Board Member) stated that Q3 started well but couldn't predict final results. He noted that Q2 sales were minimally impacted by the competitor's announcement, as deals were already in motion, but the pipeline is growing across all products. Regarding pricing, he indicated it has been consistent over the last couple of years, with no significant changes, and highlighted Jack Henry's ability to win deals despite not being the lowest-cost provider.

Rayna Kumar inquired about the timeline for the project delays experienced in the quarter and questioned if the medium-term margin expansion target of 25-40 basis points is too low given recent strength and cost management.

Answer

CEO Greg Adelson confirmed that some projects are being pushed from the current fiscal year into the next. CFO Mimi Carsley stated that while the company is always mindful of cost management, the 25-40 bps target represents a 'floor' for annual improvement and it is too early to provide specific guidance for fiscal 2026. Greg Adelson added that disciplined headcount management is a key factor in their cost control.

Rayna Kumar of J.P. Morgan Chase & Co. inquired about potential increased competition and pricing pressure at the lower end of the market from a specific large competitor.

Answer

President and CEO Greg Adelson responded that Jack Henry has not observed a significant change in the competitive landscape or new pricing pressures. He noted that the competitor's approach seems more focused on retaining existing clients rather than winning new ones from Jack Henry. Adelson also highlighted that some of Jack Henry's recent 'merger of equals' wins have come from that same competitor, suggesting the competitive dynamic is not one-sided.

Rayna Kumar asked if Jack Henry is facing increased competition in core processing for larger banks, referencing a recent competitor win. She also inquired if a resilient macro environment could lead to upside in the company's fiscal 2025 margin expansion target.

Answer

CEO Greg Adelson stated there is no new competitive pressure, noting that while they don't win every deal, their success rate with large institutions remains very high, evidenced by a recent $7 billion win and strong renewal rates. CFO Mimi Carsley acknowledged that while it's early, a stronger economy and consumer spending could present potential upside to margin targets, particularly through higher transaction and card volumes in the spring.

Rayna Kumar from Oppenheimer sought more color on the five resellers signed for the Direct License Program, specifically what percentage of the total reseller market they represent. She also asked about how FICO is addressing any operational hurdles in moving resellers to the direct model, referencing previous discussions.

Answer

Will Lansing, CEO, estimated that the five signed resellers represent somewhere in the 70%-80% range of the total reseller market. He clarified that FICO currently has no operational hurdles, with the process moving very smoothly, and expressed high confidence that the program will be live in the relatively near future.

Rayna Kumar asked about the market representation of the five signed resellers in the Direct License Program to gauge the size of these wins. She also followed up on previous discussions regarding operational hurdles in moving resellers to the direct model and how FICO is addressing them.

Answer

CEO Will Lansing estimated that the five signed resellers represent somewhere in the 70%-80% range of the total reseller market. He stated that FICO currently has no operational hurdles, and the process is moving very smoothly, with high confidence that the program will be live in the relatively near future.

Rayna Kumar asked about the fundamental drivers underpinning the preliminary 2026 EPS guidance, specifically seeking insights into projected revenue growth, GMV growth, and expectations for provisioning. She also inquired about the competitive landscape, including any observed changes in pricing or strategic approaches from competitors.

Answer

Charlie Youakim, Executive Chairman and CEO, explained that the 2026 EPS guidance is propelled by sustained growth in subscription and mods, with a particular emphasis on subscription, coupled with stringent cost management aimed at accelerating gross margin dollar growth faster than operational expenses. He indicated that provisioning expectations for 2026 are consistent with the 2025 guidance range of 2.5%-3%. Charlie noted that the guidance incorporates a degree of conservatism due to broader economic uncertainties, despite no current signs of consumer activity deterioration. Regarding competition, he reported no significant changes in pricing or strategy, only mentioning Klarna's introduction of a higher-dollar subscription product.

Rayna Kumar asked about the underlying drivers for Sezzle's preliminary 2026 EPS guidance, including expectations for revenue growth, GMV growth, and provisioning. She also inquired about the competitive landscape, specifically any observed changes in pricing or strategy from competitors.

Answer

Executive Chairman and CEO Charlie Youakim stated that the 2026 EPS guidance is driven by continued growth in subscription products and 'mods' (monthly on-demand and subscribers), with a stronger lean towards subscriptions. He reiterated Sezzle's commitment to cost-consciousness, aiming to grow gross margin dollars faster than operational expenses. Provisioning expectations for 2026 are anticipated to be in the same range as 2025 (2.5%-3%). Mr. Youakim noted that any conservatism in the outlook is primarily due to broader economic uncertainties, though Sezzle has not observed any deterioration in consumer activity. Regarding competition, he mentioned Klarna's launch of a higher-dollar subscription product but otherwise noted 'more of the same' in terms of competitor strategies or pricing.

Rayna Kumar asked about the slight deceleration in Visa's payment volume in Latin America compared to the previous quarter, seeking specific reasons for this trend.

Answer

CFO Chris Suh attributed the deceleration in Latin America primarily to moderating inflation in Argentina, while noting that the region still remains a high-growth area for Visa.

Reyna Kumar observed a slight deceleration in Latin America's payments volume compared to the previous quarter and asked for the contributing factors.

Answer

Chris Suh, Visa's Chief Financial Officer, attributed the slowdown in Latin America primarily to moderating inflation in Argentina. He noted that despite this, Latin America remains a high-growth region for Visa.

Rayna Kumar inquired about the opportunities and potential headwinds for Visa resulting from the CFPB's final open banking rule in the U.S., particularly from the perspective of its Tink acquisition.

Answer

CEO Ryan McInerney stated that Visa supports secure consumer data access and sees the new rule as an opportunity. He believes the Visa brand and capabilities like Visa A2A can build confidence and resolve complexity in the U.S. open banking ecosystem, similar to its strategy in Europe.

Rayna Kumar inquired about the trends in North America, noting that they appeared to have worsened compared to the second quarter, and asked if the company expects improvement from here, specifically if the region has reached its bottom.

Answer

CEO Devin McGranahan described the quarter as 'lumpy,' with some improvement in July, a tough August, and then some positive trends in late September and early October. He indicated that while linear improvement isn't present, directional improvement suggests potential stability relative to the lows seen in June or August.

Rayna Kumar inquired about North America trends, asking if they have worsened compared to Q2 and if the market has reached a bottom.

Answer

Devin McGranahan (CEO) described the quarter as 'lumpy,' with a better July, a tough August, and improving trends in late September and early October. He indicated that directional improvement suggests stability, but linear improvement is not yet present.

Rayna Kumar asked if the Evolve 2025 strategy needs to be tweaked due to tightening U.S. immigration policy and questioned why a customer with a debit card would use it at a retail location instead of a digital channel.

Answer

CEO Devin McGranahan affirmed their commitment to the Evolve 2025 strategy, stating that while U.S. growth may slow, the core opportunity remains. He noted an increased focus on non-remittance services like the digital wallet. McGranahan explained that the retail value proposition extends beyond cash to include convenience, familiarity, language support, and the certainty of a paper receipt, with a recent survey indicating over two-thirds of retail customers would opt to use a debit card in-store.

Rayna Kumar asked about current hiring trends, particularly in white-collar segments, and the expected impact on Talent Solutions in the fourth quarter.

Answer

CEO Mark Begor noted a sluggish hiring market, especially for white-collar jobs, with overall employment remaining high but new job creation being low. He attributed this to continued cautiousness among HR managers due to broader economic uncertainty, including tariffs.

Rayna Kumar inquired about the continued stress in white-collar hiring, seeking details from customer and background screener conversations, and the expected impact on the Talent Solutions segment in the fourth quarter.

Answer

Mark Begor, Chief Executive Officer, described the market as sluggish with high employment but low new job creation. He noted that background screening customers report corporate cautiousness around hiring due to broader economic uncertainties, particularly regarding tariffs, which needs to be resolved.

Rayna Kumar inquired about the impact of current travel trends on Global Blue's performance and asked if Shift4 is actively investing in or exploring opportunities related to agentic commerce.

Answer

CEO Taylor Lauber noted that while Global Blue's growth had moderated, trends improved during the summer travel season, though currency fluctuations remain a key factor. Regarding agentic commerce, he stated that Shift4 is monitoring the technology and will apply its 'build, buy, or partner' framework, but believes the established nature of the travel industry makes Shift4 a natural beneficiary regardless of technological shifts.

Rayna Kumar of JPMorgan Chase & Co. inquired about the competitive landscape in international markets and Shift4's specific competitive advantages.

Answer

Taylor Lauber, President and incoming CEO, explained that international markets resemble the U.S. market from 15-20 years ago, with fragmented software, hardware, and payment providers. He stated that Shift4's edge comes from its proven strategy of bundling these services into a single, cohesive solution for merchants, noting that one in four new merchants now comes from outside the U.S.

Rayna Kumar of Oppenheimer & Co. Inc. requested an update on the gateway conversion process, including the size of the remaining opportunity and whether softening consumer spending was impacting the pace of conversions.

Answer

President Taylor Lauber confirmed that over $100 billion in annualized volume remains in the gateway conversion funnel. He described the conversion process as programmatic, involving both large enterprise dialogues and smaller merchant conversions over time. He noted the gateway's direct revenue is minimal, but the conversion opportunity is a primary strategic focus, with acquisitions like Givex intended to continuously replenish this funnel.

Rayna Kumar requested an update on Shift4's gateway conversion process, including the size of the remaining opportunity and whether softening consumer spending has impacted the pace of conversions.

Answer

President Taylor Lauber confirmed that a substantial opportunity of over $100 billion in annualized volume remains on the gateway. He characterized the conversion pace as 'programmatic,' involving planned enterprise migrations and ongoing conversions of smaller merchants. Lauber emphasized that the strategic focus is on continually refilling the cross-sell funnel through acquisitions like Givex, ensuring the gateway remains a long-term value driver.

Rayna Kumar asked for an update on Mastercard's progress in gaining share in markets with strong account-to-account (A2A) players, such as Pix in Brazil and UPI in India, and the strategies being employed.

Answer

CEO Michael Miebach explained that the strategy centers on product differentiation. In Brazil, for example, Mastercard revamped its debit platform to better compete online. He emphasized that their existing solutions for installments and recurring payments remain highly competitive against A2A offerings. The overall approach is to provide choice, partner where possible, and compete effectively, noting that their Brazil business continues to show healthy growth.

Rayna Kumar requested an update on Mastercard's progress in gaining market share in Europe and asked which countries were demonstrating particularly strong performance.

Answer

CEO Michael Miebach described Europe as a significant success story, noting market share leadership in the U.K. and strong momentum on the continent. He highlighted a strategic partnership with UniCredit across 13 markets and a major win with Banco Popolare in Italy as key examples. He also emphasized the ongoing opportunity to displace cash in developed economies like Italy.

Rayna Kumar of Oppenheimer & Co. Inc. asked about the drivers behind volume acceleration in Europe, the macroeconomic outlook for the region, and the potential for further market share gains.

Answer

Chief Financial Officer Sachin Mehra attributed the strong European performance to positive macro trends, improving consumer confidence, and a significant secular shift to digital payments. He also highlighted that recent market share wins, such as the UniCredit and Deutsche Bank portfolios, and the ongoing Maestro to Debit Mastercard migration are key contributors to growth.

Rayna Kumar asked how Toast would balance cost management with strategic investments in a potential recession and followed up on whether the Applebee's win opens doors to service similar large brands.

Answer

CFO Elena Gomez responded that the company has a history of being decisive in dynamic environments and would pull back on non-revenue-generating spending while balancing long-term goals. CEO Aman Narang added that the enterprise sales pipeline has never been stronger and that they see a significant opportunity with many other large brands.

Jay Coyman, on for Rayna Kumar, asked about the key business drivers for the personal loan, auto, and POS markets, and also inquired about current trends and pricing in the capital markets.

Answer

CEO Gal Krubiner detailed the value proposition for each vertical: helping personal loan partners acquire and engage customers, enabling auto lenders to win dealership business with high approval rates, and allowing POS lenders to win more merchants. CFO Evangelos Perros added that these verticals grew 25% YoY. Regarding capital markets, Krubiner acknowledged short-term spread widening after macro news but explained Pagaya prices this into new loans, neutralizing the effect on profitability.

Rayna Kumar asked about any potential revenue or cost dis-synergies that might result from the sale of the Worldpay business.

Answer

CEO Stephanie Ferris stated definitively that there are no dis-synergies from the Worldpay sale. She explained that any such impacts were already accounted for during the initial separation when FIS sold its 55% majority stake.

Rayna Kumar requested a breakdown of the tourist mix at European ATMs, particularly the percentage of U.S. tourists, and asked about the impact of FX volatility on Money Transfer and the target for new ATM deployments this year.

Answer

CEO Michael Brown and CFO Rick Weller estimated that U.S. tourists constitute roughly 5-10% of total European ATM customers. Weller stated that FX volatility had minimal impact in Q1 but increased in April. He also mentioned that while they are moving away from specific targets, new ATM deployments would be consistent with prior years.

Rayna Kumar of Evercore ISI asked for the key drivers behind the confident 2025 adjusted EPS growth guidance of 12% to 16% and requested clarification on the expected growth contributions from each business segment.

Answer

CEO Michael Brown attributed the confidence to strong momentum across all three business segments, highlighting growth in EFT's merchant services, epay's expansion with major brands, and a 33% increase in Money Transfer's digital transactions. CFO Rick Weller added that the company's geographic and product diversity provides consistency, and he expects similar continuity and operating income growth in 2025. Management declined to provide specific growth forecasts by segment.

Rayna Kumar requested a detailed breakdown of the unit economics for digital versus retail transfers and asked about Q4 trends and the potential business impact of a future Trump administration.

Answer

CEO Robert Lisy and Head of Digital Marcelo Theodoro provided a comparative breakdown, noting a retail wire to Mexico yields a gross margin of just over $5, while a digital transaction yields a superior margin of $6 to $6.50. Lisy stated that while not providing guidance, he expects the market to remain soft in Q4, with digital growing rapidly. Regarding politics, Lisy noted the business experienced its strongest growth during the previous Trump administration, attributing it to a strong U.S. economy.