Fidelity National Information Services Reports 5% Revenue Growth but $470 Million Net Loss in Q2 2025

Fidelity National Information Services, Inc. (FIS) reported its financial results for the second quarter of 2025, revealing a revenue increase of 5% to $2.616 billion compared to $2.490 billion in the same period last year. For the first half of 2025, revenue rose by 4% to $5.148 billion, up from $4.958 billion in the prior year. However, the company experienced a net loss attributable to FIS of $470 million for the quarter, translating to a loss of $0.90 per share, compared to a profit of $238 million, or $0.43 per share, in the second quarter of 2024. The decline in profitability was attributed to increased costs, including higher amortization of software and personnel expenses, as well as a significant rise in interest expenses.

In terms of operational changes, FIS has undergone significant strategic shifts, including the completion of the 2024 Worldpay Sale, which involved divesting a 55% equity interest in its Worldpay Merchant Solutions business. This transaction, finalized on January 31, 2024, has led to a restructuring of the company's reporting segments, now focusing on Banking Solutions, Capital Market Solutions, and Corporate and Other. The company is also in the process of acquiring the Issuer Solutions business from Global Payments for an enterprise value of $13.5 billion, which is expected to close in the first half of 2026.

FIS reported a total of 522,378,577 shares of common stock outstanding as of August 1, 2025. The company has also been active in share repurchases, buying back approximately 3.2 million shares for $246 million during the second quarter. The total remaining for repurchase under the current program is approximately $2.4 billion. Additionally, FIS has maintained a quarterly dividend of $0.40 per share, with plans to continue this practice, contingent on financial performance and cash requirements.

The company’s operational metrics showed a mixed performance across its segments. The Banking Solutions segment reported a 6% revenue increase to $1.808 billion, driven by growth in commercial services and transaction volumes. Conversely, the Capital Market Solutions segment also saw a 6% revenue increase to $765 million, while the Corporate and Other segment experienced a 25% decline in revenue, primarily due to the divestiture of a non-strategic business. Overall, FIS's adjusted EBITDA for the second quarter was $1.041 billion, reflecting a 5% increase year-over-year.

Looking ahead, FIS anticipates continued growth driven by its strategic acquisitions and investments in technology. The company is focused on enhancing its integrated solutions to meet evolving market demands, particularly in the payments sector. However, it also faces challenges from rising interest rates and inflation, which could impact its financial performance in the near term. The management remains optimistic about the long-term prospects, emphasizing the importance of innovation and operational efficiency in navigating the competitive landscape.