Why Is Shift4 Payments Stock Falling Tuesday?

Shift4 Payments (NYSE:FOUR) stock plunged Tuesday after it reported fiscal second-quarter 2025 results.

The company reported quarterly gross revenue growth of 17% year-on-year (Y/Y) to $966.20 million, missing the analyst consensus estimate of $982.95 million. 

The payment processing company’s adjusted EPS of $1.10 missed the analyst consensus estimate of $1.26. 

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Payments-based revenue improved from $755.8 million a year ago to $868.5 million. Subscription revenue was $97.7 million, up from $71.2 million a year ago.

Gross revenue minus network fees improved to $413.4 million versus $320.6 million a year ago, up 29% Y/Y.

End-to-end payment volume climbed 25% Y/Y to $50.1 billion. Adjusted EBITDA improved 26% Y/Y to $205.1 million. The margin declined 100 bps to 50%.

Shift4 CEO Taylor Lauber said the company delivered strong second-quarter results, achieving record payment volume, revenue, and adjusted EBITDA. He credited the growth to stable payment spreads, a more diversified business mix, and strong performance across key verticals like hotels, restaurants, and entertainment.

Lauber highlighted the successful close of the Global Blue acquisition, which added a new vertical, luxury retail, and expanded Shift4’s reach to six continents. He expects Global Blue to contribute $330 million in revenue and $125 million in adjusted EBITDA for the rest of 2025, significantly boosting the company’s cross-sell opportunity.

He also announced a leadership change. CFO Nancy Disman will retire at year-end and rejoin the board, while Chris Cruz, a longtime board member and investor, will step in as the new CFO. Lauber reaffirmed Shift4’s progress toward its medium-term targets, including a $1 billion free cash flow run rate.

Outlook

Shift4 expects fiscal 2025 gross revenue minus network fees outlook of $1.965 billion-$2.035 billion (prior $1.35 billion–$1.36 billion).

The company expects fiscal end-to-end payment volume of $200 billion-$220 billion (prior $164 billion–$166 billion).

It projects a fiscal adjusted EBITDA of $965 million-$990 million (prior $677 million–$688 million).

Shift4 expects third-quarter gross revenue minus network fees of ~$590 million and adjusted EBITDA of ~$290 million.

Price Action: FOUR stock is trading lower by 17.7% to $84.12 at last check Tuesday.

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