Global Payments Reports Revenue Decline and Strategic Acquisition Plans for Q2 2025

Global Payments Inc. reported its financial results for the second quarter of 2025, revealing a decline in both revenue and profitability compared to the same period in 2024. The company generated revenues of $1.96 billion for the three months ended June 30, 2025, a decrease of 0.7% from $1.97 billion in the prior year. For the first half of 2025, revenues totaled $3.77 billion, down 1.0% from $3.81 billion in the same period last year. Operating income also fell, reaching $427.2 million for the quarter, down from $475.4 million a year earlier, while net income attributable to Global Payments decreased to $241.6 million from $374.8 million.

The decline in revenue and operating income was attributed to increased selling, general, and administrative expenses, which rose to $1.03 billion in the second quarter, compared to $991.2 million in the previous year. The company noted that its Merchant Solutions segment saw a slight increase in operating income, driven by cost reduction initiatives, but overall corporate expenses surged due to ongoing business transformation activities. The effective income tax rate for the quarter was 38.1%, significantly higher than the 17.9% reported in the same quarter of 2024, primarily due to deferred tax expenses related to the restructuring associated with the divestiture of its Issuer Solutions business.

In terms of strategic developments, Global Payments announced a definitive agreement to acquire Worldpay Holdco, LLC for approximately $6.1 billion in cash and 43.3 million shares of common stock. This acquisition is expected to close in the first half of 2026, alongside the divestiture of its Issuer Solutions business to Fidelity National Information Services for about $7.5 billion. The Issuer Solutions business has been classified as a discontinued operation, reflecting a strategic shift that will significantly impact the company's operations and financial results.

Operationally, Global Payments reported a slight increase in its integrated and embedded solutions service line, which grew by 7.1% in the second quarter, while revenues from point-of-sale and software solutions declined by 10.8%. The company also noted a reduction in its employee headcount, which is part of its ongoing efforts to streamline operations and enhance efficiency. As of June 30, 2025, the company had cash and cash equivalents of $2.79 billion, with $809.9 million available for general purposes.

Looking ahead, Global Payments anticipates that its transformation initiatives will yield over $650 million in annual run-rate operating income benefits by the first half of 2027. However, the company remains cautious about macroeconomic conditions, including inflation and currency fluctuations, which could impact its financial performance. The management emphasized the importance of maintaining liquidity and capital resources to support ongoing operations and strategic investments.