10-QPeriod: Q1 FY2025

FISERV INC Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 25, 2025For Securities:FISV

Summary

Fiserv, Inc. reported solid financial results for the first quarter ended March 31, 2025, with total revenue increasing by 5% year-over-year to $5.13 billion. This growth was primarily driven by an increase in processing and services revenue, which rose to $4.05 billion, alongside a significant 23% jump in product revenue to $1.09 billion. Operating income saw a substantial increase of 18% to $1.40 billion, resulting in a healthy operating margin of 27.2%. Diluted earnings per share (EPS) also showed strong performance, increasing to $1.51 from $1.24 in the prior year period. The company successfully integrated two strategic acquisitions in March 2025: Payfare, Inc. and CCV Group B.V., which are expected to bolster its embedded finance capabilities and expand its POS payment solutions, respectively. Fiserv also benefited from a favorable pricing environment, as indicated by the increase in product revenue, and demonstrated effective cost management, leading to an expansion in operating margin. The company's financial position remains robust, supported by consistent operational cash flow and strategic capital allocation, including significant share repurchases.

Financial Highlights

49 data points
Beta

Revenue

$5.13B

Net Income

$851.00M

16.6% Net Margin

EPS (Diluted)

$1.51

Total Assets

$80.40B

Cash & Equivalents

$1.18B

Free Cash Flow

$313.00M

Financial Statements
Beta
Revenue$5.13B
SG&A Expenses$1.68B
Operating Expenses$3.73B
Operating Income$1.40B
Interest Expense$339.00M
Net Income$851.00M
EPS (Basic)$1.52
EPS (Diluted)$1.51
Shares Outstanding (Basic)561.30M
Shares Outstanding (Diluted)564.70M

Key Highlights

  • 1Total revenue increased 5% to $5.13 billion compared to the prior year period.
  • 2Processing and services revenue grew 1% to $4.05 billion, while product revenue surged 23% to $1.09 billion.
  • 3Operating income increased 18% to $1.40 billion, with operating margin expanding by 300 basis points to 27.2%.
  • 4Diluted earnings per share (EPS) rose to $1.51 from $1.24 year-over-year.
  • 5Completed two strategic acquisitions in March 2025: Payfare, Inc. and CCV Group B.V.
  • 6Net cash provided by operating activities was $648 million, although down 22% from the prior year, primarily due to working capital changes.
  • 7Significant share repurchases of $2.2 billion were made in the first quarter of 2025.

Frequently Asked Questions

Fiserv reported a 5% increase in total revenue for the first quarter ended March 31, 2025, reaching $5.13 billion. This growth was driven by a 1% increase in processing and services revenue to $4.05 billion and a substantial 23% increase in product revenue to $1.09 billion.

In March 2025, Fiserv acquired Payfare, Inc. and CCV Group B.V. for an aggregate purchase price of $324 million. These acquisitions are expected to enhance Fiserv's embedded finance capabilities and expand its POS payment solutions, contributing to future revenue growth, though their full financial impact is still unfolding.

Fiserv demonstrated strong expense management, with total expenses increasing only 1% year-over-year. This, combined with revenue growth and a favorable product revenue mix, led to a significant 18% increase in operating income to $1.40 billion and an expansion of operating margin by 300 basis points to 27.2%.

The company generated $648 million in net cash from operating activities, though this was a decrease from the prior year mainly due to working capital movements. Fiserv continues to allocate capital strategically, with a strong emphasis on share repurchases, which amounted to $2.2 billion in the first quarter of 2025. The company also has significant liquidity from its cash reserves and revolving credit facility.