Fidelity National Information Services, Inc. (FIS) Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 revenue was $2.60B (+3% YoY), GAAP diluted EPS $0.56, and adjusted EPS $1.40 (+49% YoY); adjusted EBITDA margin expanded 103 bps to 42.9% on higher license mix and cost savings . Capital Markets led growth (+9% YoY) while Banking was modest (+1% YoY) due to a termination fee reversal and a large license deal push-out .
• Management introduced 2025 guidance calling for 4.6–5.2% revenue growth, 40–45 bps margin expansion, and 9–11% adjusted EPS growth; Q1 2025 revenue $2.485–$2.510B, adjusted EPS $1.17–$1.22 .
• Strategic catalysts: dividend raised 11% to $0.40/share and 2025 buyback target lifted to $1.2B; BNPL partnership with Affirm to integrate pay-over-time into FIS debit processing bank clients .
• Street consensus (S&P Global) for Q4 2024 was unavailable; results are assessed vs prior periods and company guidance. S&P Global estimates could not be retrieved due to API limit; no consensus comparison included.

What Went Well and What Went Wrong

• What Went Well

  • Capital Markets delivered strong revenue growth (+9% YoY) with adjusted EBITDA margin up 191 bps to 55.1% on higher-margin license sales and operating leverage .
  • Adjusted EBITDA margin expanded 103 bps to 42.9% corporate-wide; adjusted EPS increased 49% YoY to $1.40, reflecting mix and cost savings execution .
  • “We had a record year of core wins… sales momentum across our key growth vectors of digital, payments and commercial lending,” with digital new sales up 70% YoY and Affirm partnership announced .

• What Went Wrong

  • Banking revenue was negatively impacted by reversal of a previously recognized termination fee tied to a planned bank merger that was abandoned; a large license deal slipped from Q4 into 2025 .
  • Working capital conversion for 2024 was 77%, below target, due to less favorable working capital performance; actions underway to improve terms and collections .
  • Corporate & Other posted an adjusted EBITDA loss of $69M in Q4; Banking segment margin contracted 120–123 bps on unfavorable mix including the termination fee reversal .

Financial Results

*Consensus values retrieved from S&P Global were unavailable due to API limits; no consensus comparison included.

Segment revenue and margins:

Key KPIs:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “2024 was a year of positive momentum for FIS… Our 2025 outlook reflects acceleration in the business… drive double-digit total returns.” – Stephanie Ferris, CEO .
• Sales transformation: “We’ve hired more quota-carrying specialists… in payments, digital and treasury and risk… specialized sales approach will allow us to better cross-sell.” .
• Segment highlights: “Banking revenue growth was negatively impacted by the reversal of a previously recognized termination fee… Adjusted EBITDA margin contracted… less favorable revenue mix.” . “Capital Markets… margin expanded… reflecting an increase in higher-margin license revenue and operating leverage.” .
• Capital allocation: “Repurchased $1.0B in Q4; $4.0B in 2024… plan to repurchase ~$1.2B in 2025; dividend increased to $0.40 per share.” .

Q&A Highlights

• Banking cadence: Q1 is the low point (2.5–3.5% total company); Banking accelerates in Q2 as deferred implementations ramp; termination fee reversal (~$20M) and license slip pressured Q4 .
• Free cash flow: 77% conversion in 2024; plan to improve payables (extend terms), strengthen collections, normalize capex to ~8% over time (vs 9% in 2025) .
• Worldpay EMI: Strong Q4; 2025 EMI ~ $550M expected; refinancing benefits; some stand-up cost headwinds .
• Share repurchases: 2025 buyback target raised from ~$0.8B to ~$1.2B, reflecting underspend in 2024 M&A .
• Capital Markets outlook: 6.5–7% 2025 growth; acquisitions contribute ~140 bps; licenses strong, predictable quarterly cadence .

Estimates Context

• S&P Global Wall Street consensus for Q4 2024 EPS and revenue was unavailable due to API limits; therefore, no explicit beat/miss vs consensus is presented. Results are compared against prior periods and management guidance [S&P Global data unavailable].
• Given margin expansion (+103 bps) and adjusted EPS +49% YoY in Q4, estimates revisions are likely to move higher for Capital Markets, while Banking estimates may adjust to reflect Q1 softness and Q2 rebound commentary .

Key Takeaways for Investors

• Capital Markets is the growth engine: sustained high-quality revenue growth (~7%) with expanding margins on license mix; durable and predictable trajectory .
• Banking softness is transient: Q1 headwinds (license timing, termination fee reversal) give way to Q2 acceleration from signed backlog; full-year Banking growth guided to 3.7–4.4% in 2025 .
• Cost discipline and mix support EPS: corporate margin execution and higher license revenue drove 103 bps Q4 margin expansion and $1.40 adjusted EPS; 2025 guides to 9–11% adjusted EPS growth .
• Cash return remains robust: dividend raised 11% to $0.40/share and buyback target increased to ~$1.2B for 2025; expect ongoing capital return while pursuing targeted tuck-in M&A .
• Strategic BNPL catalyst: Affirm partnership integrates pay-over-time into bank debit programs, enhancing consumer engagement and issuer value propositions; watch for adoption ramp .
• Watch working capital execution: management outlined concrete actions to lift FCF conversion (terms, collections); improvement should be visible through 2025 .
• Narrative to monitor: AI-enabled Treasury GPT and Office of the CFO solutions broaden addressable market with enterprise software-like dynamics; potential multiple expansion driver if execution persists .

Notes: All figures reflect continuing operations (ex-Worldpay Merchant Solutions) unless stated; non-GAAP metrics per company definitions.