FIS Earning Date, Transcript Summary & Report

Recurring Revenue Acceleration: Adjusted revenue grew 4% in the third quarter, fueled by a strong acceleration in recurring revenue growth.

EBITDA Margin Expansion: Adjusted EBITDA margin of 41.3% exceeded our outlook, with both operating segments posting year-over-year margin expansion.

Recurring Sales Growth: We continue to focus on driving high-quality recurring sales, with cross-sell activity across the enterprise up over 20% year-to-date.

Earnings and Shareholder Returns: Adjusted EPS of $1.40 increased 13% year-over-year on a normalized basis and we returned a total of $700 million of capital to shareholders in the third quarter across both buybacks and dividends.

Digital Acquisition Progress: We also recently closed a small acquisition in the digital space, Dragonfly Technologies, as we make progress against our M&A goals.

Steady Adjusted Revenue Growth: Adjusted revenue growth was steady at 4% in the quarter, driven by an acceleration in recurring revenue growth, indicating a slowdown compared to previous periods.

EBITDA Margin Performance: Adjusted EBITDA margin exceeded expectations at 41.3%, offset by a tough year-over-year comparison in corporate expenses, suggesting potential pressure on future margins.

Adjusted EPS Increase Concerns: Adjusted EPS was $1.40 in the quarter, up 49% compared to the prior year, but this increase was primarily due to non-cash adjustments, raising concerns about sustainability.

Free Cash Flow Impact: Free cash flow was impacted by an increase in capital expenditures to 9% in the quarter, indicating potential strain on cash generation capabilities going forward.

High Indebtedness Concerns: Total debt at the end of the quarter was $10.9 billion, with a leverage ratio of 2.6 times, suggesting a high level of indebtedness that could limit financial flexibility.