Adjustments for Non-Cash Items [USD]

Stock-Based Compensation [USD]

Changes in Working Capital [USD]

Capital Expenditures (CapEx) [USD]

Proceeds from Debt [USD]

Repayments of Debt [USD]

Share Repurchases [USD]

Dividend Payments [USD]

Net Change in Cash [USD]

a63e8ef8ce38bb727ff31f3a9e218f48206b9f8c7ff55cd5b199e5bf566a44d1

f8b5b8a2ca63d2c546d6afd08b93546d45812af004a1c444ee7e2f02d1ad21bb

38ccdcc74eb4f975613ee4a88076c38bd8c30bd194a4b56409503cf9207bd94c

2daa70b1be478e0be2fae8d4c524a96485ab3f256427feef99ee23a6e66bfad0

Americas

North America

- United States

- Canada

Europe

Asia Pacific

Asia-Pacific

International

TSYS

Total Revenue

a814d733e5885f49a002f9632010f4d5a658d19468a47b9f9c8d76e94b79b902

24dd7f70356f35e3f6ad9de92925850858ea758ae1b7d1d2574b123bbc5b2b08

Cash and cash equivalents (USD, thousands)

Accounts receivable, net (USD, thousands)

Settlement processing assets (USD, thousands)

Prepaid expenses and other current assets (USD, thousands)

Total current assets (USD, thousands)

Goodwill (USD, thousands)

Other intangible assets, net (USD, thousands)

Property and equipment, net (USD, thousands)

Deferred income taxes (USD, thousands)

Notes receivable (USD, thousands)

Other noncurrent assets (USD, thousands)

Total assets (USD, thousands)

Settlement lines of credit (USD, thousands)

Current portion of long-term debt (USD, thousands)

Accounts payable and accrued liabilities (USD, thousands)

Settlement processing obligations (USD, thousands)

Total current liabilities (USD, thousands)

Long-term debt (USD, thousands)

Other noncurrent liabilities (USD, thousands)

Total liabilities (USD, thousands)

Redeemable noncontrolling interests (USD, thousands)

Paid-in capital (USD, thousands)

Retained earnings (USD, thousands)

Accumulated other comprehensive loss (USD, thousands)

Total Global Payments shareholders’ equity (USD, thousands)

Nonredeemable noncontrolling interests (USD, thousands)

Total equity (USD, thousands)

Total liabilities, redeemable noncontrolling interests and equity (USD, thousands)

a59a7bd39c73a97caa73f079b70cdafa41db829e623a78191a6b5de260e9431b

Revenues (USD, thousands)

Cost of Service (USD, thousands)

Selling, General and Administrative Expenses (USD, thousands)

Net (Gain) Loss on Business Dispositions (USD, thousands)

Operating Expenses (USD, thousands)

Operating Income (USD, thousands)

Interest and Other Income (USD, thousands)

Interest and Other Expense (USD, thousands)

Income Before Income Taxes and Equity in Income of Equity Method Investments (USD, thousands)

Income Tax Expense (USD, thousands)

Income Before Equity in Income of Equity Method Investments (USD, thousands)

Equity in Income of Equity Method Investments, Net of Tax (USD, thousands)

Net Income (USD, thousands)

Net Income Attributable to Noncontrolling Interests (USD, thousands)

Net Income Attributable to Global Payments (USD, thousands)

Basic Earnings Per Share Attributable to Global Payments (USD)

Diluted Earnings Per Share Attributable to Global Payments (USD)

10a49f4dcfe16e5fe1fe1170819570aee7d206fbb59fcb4f40c61572994007f8

Global Payments Inc.'s **high cash and cash equivalents** in Q3 2024 were primarily driven by a **substantial increase in net cash provided by operating activities**—rising from **$1,591,291 thousand** in the previous period to **$2,879,256 thousand**—and a **significant reduction in cash used for investing activities**, which dropped from **$4,119,679 thousand** to **$846,621 thousand**. Although financing activities shifted from a net inflow of **$2,458,377 thousand** to a net outflow of **$1,151,073 thousand**, the strong operational cash flow and lower investing outflows were the key factors contributing to the elevated cash levels in Q3 2024.  **[0001123360-24-000033_exhibit99120240930.htm:6]** **[0001123360-24-000036_gpn-20240930.htm:4]** **[0001123360-24-000033_exhibit99120240930.htm:7]** 

Why was Cash and cash equivalents so high in Q3 2024?

The drop in total assets in Q4 2024 was mainly caused by a **significant decrease in settlement processing assets** (from **$4,097,417 thousand** to **$1,620,921 thousand**), a **reduction in goodwill** (from **$26,743,523 thousand** to **$26,286,318 thousand**), and a **decline in other intangible assets, net** (from **$10,168,046 thousand** to **$8,931,943 thousand**).  **[0001123360-25-000004_exhibit99120241231.htm:6]** **[0001123360-25-000011_gpn-20241231.htm:101]** 

What caused the drop in Total assets in Q4 2024?

The jump in the **Current portion of long-term debt** in Q1 2024 is primarily due to the **reclassification of debt maturing within the next 12 months** from long-term to current liabilities. Specifically, the **1.500% senior notes due November 15, 2024** and **2.650% senior notes due February 15, 2025** were reclassified, which significantly increased this balance. In addition, the company issued **$2 billion in convertible notes in February 2024** and used a portion of those proceeds to repay its commercial paper facility, further influencing its debt structure.  **[0001123360-24-000014_gpn-20240331.htm:3]** **[0001123360-24-000012_exhibit99120240331.htm:5]** **[0001123360-24-000014_gpn-20240331.htm:15]** **[0001123360-24-000014_gpn-20240331.htm:35]** **[GPN_3381813_6]** 

Why did the Current portion of long-term debt jump in Q1 2024?

98817b7cccf14d279661d8d2c46ac1d75e036d30f1ecae5bfc2b2d5276bd0636

Net Income turned positive in Q1 2024 primarily because the **loss on business disposition** seen in Q1 2023 was absent, which removed a major drag on profitability. Additionally, the company experienced **revenue growth**, **improved operating income**, benefited from a **lower effective tax rate**, and saw **higher interest and other income** compared to Q1 2023, all of which contributed to the strong turnaround in net income.  **[0001123360-24-000014_gpn-20240331.htm:2]** **[0001123360-24-000012_exhibit99120240331.htm:5]** 

Why did Net Income turn positive in Q1 2024?

The surge in **Operating Income** for **Q4 2024** was primarily driven by a **$273.1 million net gain on business dispositions** from the sale of the AdvancedMD business, which was a stark contrast to the much smaller gain in Q4 2023. In addition, **revenue growth**—with GAAP revenues increasing by **3.4%** and adjusted net revenues by **4.7%**—combined with efficient **cost management** (including a slight decrease in SG&A expenses) and benefits from **operational transformation initiatives** further boosted margins. Enhanced performance in key segments, notably a **9.3% increase** in operating income for the Merchant Solutions segment and a **2.1% rise** for the Issuer Solutions segment, also contributed significantly to the overall improvement in operating income.  **[0001123360-25-000011_gpn-20241231.htm:70]** **[0001123360-25-000004_exhibit99120241231.htm:8]** **[0001123360-25-000004_exhibit99120241231.htm:5]** **[0001123360-25-000004_exhibit99120241231.htm:14]** **[GPN_3415839_1]** 

What drove the surge in Operating Income in Q4 2024?

The significant spike in **Basic EPS** in Q4 2024 was driven by several key factors. **First**, there was a **57.0% increase in net income**, which played a major role. **Second**, **improved operating income**—which grew by **67.1%**—contributed significantly to the earnings spike. **Third**, there was solid **revenue growth**, with GAAP revenues and adjusted net revenues showing positive trends, reflecting strong performance across business segments. **Fourth**, the company achieved **cost efficiencies** through its transformation initiatives, including synergy gains from its EVO Payments acquisition and other operational improvements that expanded operating margins. **Lastly**, **share repurchases** reduced the weighted-average number of basic shares outstanding, further boosting the EPS figure.  **[0001123360-25-000004_exhibit99120241231.htm:4]** **[0001123360-25-000004_exhibit99120241231.htm:0]** **[GPN_3415839_6]** 

What factors contributed to the spike in Basic EPS in Q4 2024?

The significant increase in FY 2024 net income was driven by several key factors. **Revenue growth** played a role, as GAAP revenues increased from **$9,654,419 thousand** in FY 2023 to **$10,105,894 thousand** in FY 2024. Additionally, **operating income** improved markedly, rising from **$1,716,386 thousand** to **$2,333,605 thousand**, indicating efficient cost management and enhanced operations. A notable contributor was the change in **net gain on business dispositions**, which flipped from a net loss of **$136,744 thousand** in FY 2023 to a net gain of **$273,134 thousand** in FY 2024. Furthermore, an increase in **interest and other income** from **$113,711 thousand** to **$169,168 thousand**, along with a decrease in **interest and other expense** from **$660,150 thousand** to **$633,986 thousand**, also supported the improved net income performance.  **[0001123360-25-000011_gpn-20241231.htm:99]** 

What led to the significant increase in FY 2024 Net Income?

The decline in **Operating Income** in **Q3 2024** occurred despite higher revenues because the company faced **substantial cost pressures**. These included **higher costs from ongoing business transformation activities**, which involved significant expenses related to restructuring and modernization initiatives, as well as **technology asset charges** related to a revised technology architecture development strategy. Additionally, while the **Merchant Solutions** segment saw a boost, the **Issuer Solutions** segment experienced a notable decline due to elevated costs, including in systems development and compensation, which further contributed to the overall drop in operating income.  **[0001123360-24-000036_gpn-20240930.htm:43]** **[0001123360-24-000033_exhibit99120240930.htm:8]** **[0001123360-24-000036_gpn-20240930.htm:43]** 

Why did Operating Income decline in Q3 2024 despite higher revenues?

711d1dd3664d5c7826611aeeb5924242772cd1c40739b60ec87a1ec984a8f55e

Operating Cash Flow in Q3 2024 was significantly high due to several factors. **Higher net income** played a major role as net income increased from **$656,390 thousand** to **$1,045,870 thousand**. Additionally, there was a remarkable improvement in **settlement processing assets and obligations**, which shifted from a negative change of **$(29,857) thousand** to a positive **$789,702 thousand**. The effect of **lower deferred income taxes** also contributed, with the adjustment being less negative in 2024 (**$(251,652) thousand** vs. **$(407,767) thousand**). Furthermore, the inclusion of a **$55,808 thousand** non-cash **technology asset charge** helped reconcile the net income to operating cash flows, and the absence of a **loss on business dispositions** (which was **$139,095 thousand** in 2023) further boosted the operating cash flows in Q3 2024.  **[0001123360-24-000033_exhibit99120240930.htm:7]** **[0001123360-24-000036_gpn-20240930.htm:5]** 

Why was Operating Cash Flow so high in Q3 2024?

The surge in operating cash flow in FY 2024 was primarily driven by **higher net income**, a **shift in settlement processing assets and obligations** from a negative to a positive change, **lower negative impacts from prepaid expenses and other assets**, **improved accounts receivable management**, and a **net gain on business dispositions** compared to the losses in FY 2023. Additionally, **general business improvements** and timing-related factors also played a role in boosting the cash flow.  **[0001123360-25-000011_gpn-20241231.htm:103]** **[0001123360-25-000004_exhibit99120241231.htm:7]** **[0001123360-25-000011_gpn-20241231.htm:73]** 

What contributed to the surge in operating cash flow in FY 2024?

The positive swing in Q4 2024 was largely driven by a substantial increase in proceeds from the sale of businesses—especially highlighted by the sale of AdvancedMD—coupled with significantly lower business acquisition costs, while capital expenditures remained stable. These factors together shifted the investing cash flow from negative to positive.  **[0001123360-25-000011_gpn-20241231.htm:103]** **[GPN_3415839_3]** 

What drove the swing to positive investing cash flow in Q4 2024?

4e97fc6f7bbd3789a13e932efbe60b3c1c811e9ff71e1786d527f23778a6c92b

Global Payments Inc (GPN)

Financials