Good morning. Welcome to Global Payments Second Quarter 2026 Conference Call.

Joining us today is our CEO, Cameron Bready; CFO, Josh Whipple; and COO, Bob Cortopassi. Some of the comments made during today's call will contain forward-looking statements.

These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied, and we caution you not to place undue reliance upon them. They speak only as of the date of this call, and we undertake no obligation to update them.

In addition, we will be referring to non-GAAP financial measures. For a full reconciliation of the non-GAAP financial measures to the most comparable GAAP measure, please see our press release furnished as an exhibit to our Form 8-K filed this morning and the supplemental material available on our Investor Relations website.

Finally, the slide presentation that accompanies our prepared remarks is also available on our Investor Relations website. With that, I'll turn the call over to our CEO, Cameron Bready.

Cameron?

Thanks, Nate, and good morning, everyone. We are pleased with our second quarter performance, which reflects the continued, disciplined execution of our team members worldwide.

Our integration of Worldpay is progressing rapidly, and we are progressing well against the roadmap we established to unlock the value creation opportunities from the transaction. At the same time, we continue to enhance our competitive position through strong commercial execution, ongoing innovation, and the accelerated adoption of AI across our products and operations, while also establishing a strong foundation to lead in the emerging era of agentic commerce.

Our second quarter results underscore the durability of our business model. Adjusted net revenue grew 4% on a normalized basis, which includes an approximately 100 basis point headwind from the impact of the Middle East conflict on our travel portfolio.

Adjusted operating margins expanded 70 basis points on a normalized basis, and adjusted earnings per share increased 12%. Our ability to generate durable, mid-single-digit growth in the face of transient, external headwinds demonstrates the benefits of our enhanced scale and the resilience of our diversified revenue streams.

Capital allocation remains a central pillar of our investment thesis. During the quarter, we returned approximately $550 million through our previously announced accelerated share repurchase program as well as additional open-market repurchases.

Combined with our dividend payments, we are now more than halfway to our over $2 billion capital return commitment for the year. Turning to the integration of Worldpay, we achieved a number of key milestones this quarter.

First, we completed our operating model design and have now established our entire leadership structure, creating a more streamlined organization with clearer accountability, greater agility, and faster decision-making. Second, we defined our target architecture model for our combined technology environment, providing the blueprint to consolidate platforms, reduce infrastructure complexity, and improve operating leverage over time while accelerating product innovation.

Third, we finalized the alignment of our commercial organization around three operating segments: SMB, Enterprise, and Platforms, simplifying execution while positioning us to better serve customers across each market segment. With these foundational elements now in place, we are well positioned to advance integration execution, unlock further synergies, and strengthen our competitive position across the markets we serve.

In our SMB business, our investments in go-to-market transformation are yielding improvements in sales effectiveness. Since the beginning of the year, we have seen a 30% increase in new merchant locations per quota-carrying sales professional.

This contributed to a greater than 25% sequential increase in Genius bookings in the second quarter. New customer yields also increased 75% year-over-year, demonstrating that our clients are willing to pay for the value Genius delivers.

Genius adoption is accelerating as we expand across geographies and sales channels. In Canada, our long-standing bank partner, Desjardins, is now selling Genius and experiencing strong momentum.

In the US, we are on track to enable Worldpay's financial institution partners to begin selling Genius during the fourth quarter, starting with 30 of our largest bank partners. Further, our pipeline remains strong, and we continue to win new marquee clients.

For example, Long John Silver's recently completed its rollout of Genius digital menu solutions across 100 locations, and Pollo Tropical selected Genius for its 135 stores. Jeremiah's Italian Ice chose Genius to replace its legacy point-of-sale solution and to unify its software and payments together with a single provider.

In response to this strong demand, we are further investing in new features and functionality for Genius. We recently introduced our sleek, new Genius handheld.

It is designed for edge AI, meaning that it eliminates latency by running an AI model locally on the device. Its AI-powered voice ordering technology allows servers to have natural conversations with customers while the point-of-sale system quietly builds the ticket in the background, even in high-noise environments.

We also introduced our Genius AI reporting tool. This agentic assistant allows users to ask natural-language questions across their own operational data and reports.

It surfaces trends, patterns, and insights from a business's reporting and operational data set to proactively support decision-making. These innovations demonstrate the power of Genius as a modern, scalable platform that combines ease of use, robust functionality, and AI-enabled capability.

We recently celebrated the one-year anniversary of Genius's launch at the National Restaurant Association Conference in May. While its revenue contribution is relatively modest today, our sales momentum, product enhancements, and geographic expansion in such a short period of time is impressive and a testament to the strength of our team and the scale of our business.

Genius remains central to our long-term strategy, and we are investing meaningfully in the product to enhance capabilities and open new markets, as well as in marketing to build brand awareness and mindshare. You may have seen our newest commercial that features Genius in the fast-paced, high-pressure environments restaurant operators navigate every day.

It helped to drive a nearly 60% uplift in Genius in Google branded search, which ultimately helps to lower our cost of acquisition over time. Looking ahead, we are making additional targeted investments to accelerate Genius adoption and deepen partner engagement.

Later this month, we will host Genius World in Las Vegas, bringing together clients and partners to showcase our full suite of capabilities and innovation roadmap. We are also launching a nationwide roadshow to expose Genius directly to partner bank branches, increasing awareness, education, and momentum across our expanding financial institution network.

Turning to our Enterprise segment, our strategy to sell our advanced payments capabilities and value-added services in a modularized, configurable way continues to pay dividends. Bookings are up 10% year-to-date, including notable new wins with Shangri-La Hotels, online derivatives platform IG Group, Australian crypto trading platform BingX, and a multinational home furnishing brand.

We also expanded our relationship with Domino's Pizza to be their exclusive provider for card-present and card-not-present payments in the US alongside our existing relationship in Canada. Further, we extended our relationship with a leading global retailer to support their Canadian locations, and we renewed key municipality partners, including the state of Ohio and the cities of Chicago and San Antonio.

We also continue to make strong progress integrating and ramping our recently signed clients, with approximately one-third of these going live during the second quarter, including our recent wins with ALDI, Morrisons, and ride-sharing and delivery platform Careem in the UAE. Within our Platforms segment, our growth strategy is centered around expanding our leadership position in embedded payments.

We are investing to extend our reach with fast-growing PayFacs, marketplaces, and software platforms, while leveraging our global footprint and broad portfolio of value-added services to drive expansion across both new and existing partners. Within this segment, we signed 48 new partners during the second quarter, with more than half of these wins being international.

These partners are well diversified across verticals, including B2B, healthcare, hospitality, personal and professional services, and retail. On the renewal front, we were pleased to extend and expand our relationship with Xplor, a leading provider of software and integrated payment solutions across several verticals.

They selected Global Payments for Platforms because of our scale, service excellence, reliability, and importantly, for our ability to enable their international expansion. Several of our other value-added services, including embedded finance, dynamic payouts, and terminal modernization, also form a core part of the value proposition we deliver to Xplor and their clients.

Platforms VAS revenue grew 25% in the second quarter, driven by FraudSight, payouts, prime routing, and merchant working capital. We saw continued double-digit volume growth in our embedded payments platform, highlighting the strength of our capabilities.

Across our business, we continue to deploy AI as an accelerator in our products and internal workflows, allowing us to innovate at a faster pace, reduce development cycle times, enrich merchant experiences, and provide distinctive customer service. Thanks to the scale of our combined company, the volume of data we process gives us a competitive advantage in value-added services like fraud and authorization optimization, and we're magnifying that advantage by deploying AI.

Payment performance is not based on guesswork; it is based on frameworks and identifying patterns in data. For example, our AI-native optimization services continue to drive payment performance and risk mitigation across multiple products, delivering higher approval rates with minimal risk.

Our RevenueBoost solution, which was already generating $2 billion in annual approval uplift, is now delivering an additional 50 basis point increase in approval rates through AI-powered intelligent decisioning. Our patent-pending Authentication Optimization solution is also utilizing agentic capabilities to deliver significant improvements in authorization performance for 3D Secure transactions.

Further, agentic commerce is an emerging growth opportunity, and we continue to invest in platform-agnostic, modular set of capabilities designed to help merchants participate in new commerce models regardless of channel, agent, or payment method. We now have multiple agentic commerce pilots in flight with leading AI platforms and some of the world's largest global retailers.

We are co-creating new commerce experiences, bringing to bear our deep expertise in payments, fraud, and authentication, to allow advancement to happen at pace in a secure, reliable, and scalable way. Our continued innovation and disciplined execution reinforce our confidence in the durability of our business model and our ability to consistently generate sustainable top-line growth, strong cash flow, and attractive long-term shareholder returns.

With that, I'll turn it over to Josh.

Thanks, Cameron. In the second quarter, we generated adjusted net revenue of $3.16 billion, representing normalized growth of 4% excluding dispositions.

Our results reflect resilient consumer spending trends across our business through the quarter, partially offset by an approximately 100 basis point headwind primarily related to reduced volumes in our travel sector business from the conflict in the Middle East. This is in line with what we discussed on our first quarter call.

Adjusted operating margin for the quarter expanded 70 basis points on a normalized basis excluding dispositions, and the net result was adjusted earnings per share of $3.46, representing an increase of 12%. Turning to our segment results, we are pleased to introduce our three new operating segments: SMB, Enterprise, and Platforms, which reflect our go-forward business.

These segments align to the go-to-market structure we implemented at the closing of the Worldpay transaction. In addition to our operating segments, we also have other revenue that includes non-core portfolios and certain relationships that don't align with our segments' go-to-market strategies.

We will report each of our operating segments on a contribution margin basis, and we'll also have a corporate category that contains all overhead costs. Our largest operating segment is SMB, which provides payment, software, and related commerce solutions to help small and medium-sized businesses with less than $50 million in annualized volume.

In the second quarter, SMB generated adjusted net revenue of $1.51 billion, representing normalized growth of 4% excluding dispositions, underpinned by 4% volume growth. We saw solid growth in North America in the second quarter, and our enlarged and transformed sales force continued to deliver strong results as we accelerated the rollout of Genius, our new flagship point-of-sale technology platform.

New Genius locations grew more than 50% year-over-year and nearly 25% sequentially compared to the first quarter. We delivered $891 million of adjusted operating income in the SMB segment, representing a contribution margin of 59%.

Our Enterprise segment serves large enterprises and multinational clients with more than $50 million in annualized volume. It provides card-present and card-not-present payment processing and other value-added software and services offerings to support complex payment environments.

In the second quarter, Enterprise generated adjusted net revenue of $838 million, representing normalized growth of 7%, despite an approximately 400 basis point headwind attributable to the Middle East conflict. Enterprise volumes grew 4%, highlighting our ability to expand yields based on the strength of our solutions.

In addition, card-not-present revenue, which primarily represents global e-commerce, grew low double digits. We delivered $653 million of adjusted operating income in the Enterprise segment, representing a contribution margin of 78%.

Our final operating segment is Platforms, which offers payment and commerce solutions through software partners, PayFacs, marketplaces, and other technology-enabled platforms across numerous vertical markets. In the second quarter, Platforms generated adjusted net revenue of $628 million, representing normalized growth of 7%, led by strength in embedded payments, which includes our PayFac and managed PayFac offerings.

Platforms segment volume grew 10% in the second quarter, reflecting the growing mix of embedded payments within the segment. We delivered $284 million of adjusted operating income in the Platforms segment, representing a contribution margin of 45%.

We generated adjusted free cash flow of $687 million in the second quarter, representing a conversion rate of adjusted net income to adjusted free cash flow of approximately 75%. This represents sequential improvement as expected, and our free cash flow adjustments declined by more than 70% compared to the first quarter.

As a reminder, our free cash flow conversion follows a seasonal pattern and is typically materially higher in the back half of the year relative to the first half. Additionally, we invested $236 million in capital expenditures in the quarter, representing approximately 7% of revenue.

In the second quarter, we repurchased approximately 8 million shares for $550 million through our previously announced accelerated share repurchases as well as open-market repurchases. Our balance sheet remains healthy.

We ended the second quarter just below 3.5 times net leverage, and our indebtedness is more than 90% fixed rate with a weighted-average cost of approximately 4%. Turning now to our full-year outlook.

As we discussed on our first quarter earnings call, our prior outlook assumed a normalization of travel activity by the end of the second quarter. However, we continue to see impacts on our travel portfolio, particularly in the Middle East, and the associated revenue headwind has persisted longer than anticipated.

Accordingly, we are updating our outlook to reflect the assumption that the impact of the conflict will continue through the remainder of 2026. While the duration and ultimate outcome remain uncertain, this represents the most prudent planning assumption at this time.

As a result, we now expect normalized constant-currency adjusted net revenue growth of approximately 4% to 5% for the full year 2026. We continue to expect normalized adjusted operating margin expansion of approximately 150 basis points, and we now anticipate adjusted earnings per share of $13.60 to $13.80, representing 11% to 13% growth for the full year, which reflects the flow-through of the travel portfolio impacts to earnings, as well as less FX impact.

Given the recent strengthening in the US dollar, we now expect currency exchange rates to have roughly no impact on reported growth for the full year. We continue to expect to realize benefits from our sales force expansion, ramping of Genius sales, and enterprise clients coming live during the second and third quarters, and also for adjusted operating margins to expand more meaningfully in the second half of the year as we realize additional integration cost savings.

Regarding cash flow, we continue to expect the conversion rate of adjusted net income to adjusted free cash flow to exceed 90% for the full year of 2026. Our capital allocation plans for 2026 and beyond remain unchanged.

We continue to expect to return more than $2 billion to shareholders in 2026 while investing approximately $1 billion in the business, or 8% of adjusted net revenue. Furthermore, we remain committed to preserving our investment-grade credit ratings and achieving our 3 times net leverage target by the end of 2027.

In summary, the underlying trends across the business demonstrate the durability of our model. The team's focus continues to be on commercial excellence in all our go-to-market channels and disciplined execution of our integration with Worldpay.

We remain confident in our prospects for sustainable growth, cash flow generation, and return of capital to shareholders. With that, I'll turn the call back over to Cameron.

Thanks, Josh. As you've heard throughout the call, we are executing well and delivering on the initiatives within our control, exactly as planned.

We are continuing to monitor the conflict in the Middle East, but expect its impact to be modest and transitory, underscoring the diversity of our revenue streams and the power of our scale. We continue to differentiate through feature-rich products, distinctive service and support, and a reputation for delivering outcomes that exceed client expectations.

From industry-leading enterprise payment solutions to innovative platforms like Genius, Global Payments is at the forefront of commerce technology. With approximately $1 billion in annual investment, we are among the few companies in our industry with the resources to innovate at this scale, anticipating and delivering solutions ahead of demand.

Our global distribution network is another powerful differentiator. The breadth of our reach, combined with deep local expertise, positions us uniquely to help customers expand into new markets and capture growth opportunities around the world.

At the same time, we remain focused on disciplined capital deployment and maximizing total shareholder return. We are a proven compounder with durable and diversified revenue streams and substantial free cash flow generation.

We are more than halfway to our $2 billion-plus 2026 return of capital commitment, and remain on track to return $7.5 billion cumulatively by the end of 2027. Overall, the integration execution, operational simplification, innovation investments, and disciplined capital deployment are strengthening the foundation of the company and positioning Global Payments to deliver sustainable growth, expanding margins, and compelling long-term shareholder value.

Operator, please open the line for questions.

Hey, guys. Can you hear me?

Yes, we can. Good morning, Dan.

Morning, Dan.

Hey. Good morning, Cameron.

Good morning, team. Really nice results.

Really great to see all the progress on Genius. Looks like you're off to a great start there.

Just had a question, Cameron, I think a lot of people are asking. Can you maybe help us unpack some of the assumptions underpinning the new guide?

I think a lot of investors want to get some more detail into that, but overall, great job here and congrats again.

Yeah. Thanks, Dan.

Maybe I'll start with a high-level sort of overview, and I'll turn it over to Josh to get into a little bit of the detail. Look, I think the right way to think about the guide is we're trying to de-risk the back half for whatever the Middle East conflict may entail in terms of ongoing impact to our travel portfolio.

As we said in our Q2 results, we certainly saw a pretty meaningful impact from the conflict. We called out 100 basis points.

It was probably a little bit higher than that. We were able to offset some of that impact in Q2.

Look, the situation obviously remains volatile and uncertain. Right now, our assumption is that it will persist through the balance of the year and will continue to negatively impact the travel portfolio.

Look, the environment is slightly better than it was, clearly, in the sort of the middle of Q2, but certainly capacity and forward bookings within our travel portfolio remain significantly below kind of pre-conflict levels. The capacity that kind of has come back tends to be more short-haul, lower-yielding, domestic sort of routes versus the higher-yielding long-haul routes that drive greater levels of revenue for us.

Look, I think our guide for the year now is 4% to 5% on a constant-currency, ex-disposition basis. I think that allows for a range of outcomes in the Middle East.

I think previously we said the back half would be slightly above 5%. Now it's probably going to be closer to that 4.5% range, not to put too fine a point on it, again, trying to allow for a variety of outcomes as it relates to the conflict.

Look, I think this is the prudent approach to take given the uncertainty that exists and the impacts that we continue to see on the travel portfolio versus taking kind of a quarter-by-quarter view. Certainly, end of day, we still feel good about kind of how the business is positioned for the balance of the year.

I think, most importantly, it doesn't impact our capital return plans for the year, because the impact overall, given the size and scale of the business, is relatively modest. Josh, I don't know if you'd add any more details around that.

Just a couple other things that I would add, put a finer point on some of the other pieces of it. We do continue to expect margins to expand 150 basis points for the full year, and that's primarily driven from the realized Worldpay integration synergies and operating leverage from the model.

As Cameron mentioned, we now expect to report EPS growth in that 11% to 13% range, which also takes into consideration updated FX assumptions, just given the strength and the recent strengthening of the dollar. Then as it relates, Dan, more specifically to the second half, we would expect revenue growth to be in that approximately 4.5% range.

We expect 200 basis points of margin expansion, with margins right around that 43% range. Then as it relates just to general macro, we factored in just continuation of the spending trends that we saw in Q2, and a generally stable macro environment.

Great. Thanks again, and congrats on a really, really good quarter.

Thank you.

Thanks, Dan.

That's great. Thanks, Dan.

Hi, good morning. Solid results here.

Wanted to ask about yields. I noticed that the normalized revenue is running above volume for Enterprise and a little bit below for Platforms.

Just wanted to understand that and maybe what the kind of go-forward outlook looks like for those segments. Then in SMB, volume and revenue are at the same levels.

I'm just wondering with Genius coming into the mix, does that maybe drive yield higher for that segment? Thanks.

Really great questions, Dan. Why don't I start, and I'll ask Bob maybe to chime in if he has some additional color he'd like to add.

Look, as it relates to the Enterprise business, as a reminder, it's a mix of card-present, card-not-present volume. I think we called out in our script, card-not-present volumes are kind of growing in that double-digit range.

Card-present, given the type of merchants we serve in that space, is generally going to be more GDP-type level, you blend that together and you get a growth rate that is on a volume basis fairly consistent with the overall revenue growth of the business. We do obviously get a little bit of a tailwind from value-added services within the Enterprise channel as well, again, blend it all together, probably revenue growth a little bit higher than overall volume growth when you mix the card-present, card-not-present portions of the portfolio together with VAS kind of being a tailwind that drives revenue growth a little bit higher.

I think in the Platforms business, it's really a mix question. Where we're seeing volume growth, and this is a secular trend, not just a unique trend to Global Payments, is really around the PayFac and managed PayFac segments of the market, what we characterize as our embedded solutions.

Volume growth there is strong, around 15%. Volume growth in the more traditional integrated referral channels is going to be less than that, you get a blended volume growth in the business that's in the roughly 10% level.

Revenue growth being a little bit lower than that largely because the revenue yield that we see in the managed PayFac and PayFac channels is a little bit less than what we see in the more traditional integrated referrals. That's a little bit of a mix story in Platforms, and certainly we're pleased with the strength in volume we're seeing, and obviously the revenue growth will continue to drift up as we move more and more volume to our managed PayFac solutions over time.

Then lastly, within the SMB channel, you're exactly right. I think the challenge with Genius is just size relative to the size of the channel.

Genius is a relatively modest contributor today. Over time, we would expect Genius to be able to drive better yields, and we actually see that in the data, and some of that we called out on the call this morning.

It's just a modest contributor given the scale and size of the total SMB business today, I would continue to expect to see revenue growth in SMB fairly consistent with volume growth in the short term. Over time, obviously, revenue growth will drift up as Genius becomes a more meaningful contributor to revenue over a longer period of time.

Bob, I don't know if there's anything you would add.

Great. Thanks for taking the questions.

Real quick, one additional item, Bryan. I think Cameron already highlighted that our expectation is for revenue growth and volume to decouple in a favorable way over a period of time.

That's not just anchored to Genius, although certainly we have aspirations for Genius that we think are going to drive material improvements in the growth of the business. It's really about the value-added service portfolio across all three of the segments.

Over a period of time, accounting for mix shift and some of the trends that Cameron already highlighted, we would expect to be driving higher front-book yields and over time higher back-book yields by attaching more products and services to our relationships with clients across the size spectrum, whether they're SMB, Platforms, or Enterprise.

That's helpful. Thanks, Cameron.

Thanks, Bob.

Thanks, Bryan.

Thanks, Bryan.

Hey, Cameron, Bob, Josh. Thanks for taking the questions this morning.

Appreciate all the work on the segment detail here, really helpful. Two related questions, I'll ask them upfront.

Just when we think about segment growth rates, if we just maybe talk about expectations for intermediate term, I know we just walked through some of the yield dynamics, some of the drivers there, but just intermediate term sort of view on those segments would be helpful. Then specifically within SMB, obviously Genius, a big driver, value-added services, distribution, maybe we could just drill into that a little bit in terms of the key components in terms of driving revenue growth improvement there.

Thanks so much.

Hey, Andrew, it's Josh. Good question.

As we think about just the segments more generally, if we start with Enterprise, we called out 7% normalized growth in Q2, and that obviously reflects some impact from the Middle East, which was about 400 basis points of growth headwinds. That business on a normalized basis, you can call it low double digits.

I think as you think about the back half of the year, we would see some modest improvement there as we continue to see some of the strong underlying trends around card-not-present. We called out that the bookings growth of 10% in the first half of the year, and we start to see those conversions of those bookings go live in the back half.

We're continuing to see really strong trends there. Platforms, we called out that's normalized growth rate in that 7% range.

That we expect to see some slight acceleration there. Embedded payments, which includes our PayFac and managed PayFac business, that's about 23, 20, call it a little over 20% of the overall composition there, and that's growing down in that 20% range.

We expect to see some acceleration there in the back half. Then SMB, we called out is about 4% normalized growth.

Again, we've seen really strong trends through Genius. What we talked about the bookings and the new locations that we added in our prepared remarks, and we continue to see really, really strong underlying trends with Genius, a modest piece of the overall SMB composition.

Generally speaking, we're seeing really strong trends with Genius as that we continue to see improved adoption. We also really only launched this a little over a year ago, we're still kind of in the early innings here.

Again, as I mentioned, seeing really strong contribution from that.

Maybe I'll just add a couple points on that. If I take a bigger step back and kind of look at the three segments sort of specifically, I would say Enterprise we would target to be kind of a high-single-digit, low-double-digit grower depending on the quarter and some of the underlying trends, particularly around e-com volumes, etc., seeing really good front-of-book productivity, 10% sales growth kind of in the quarter as we called out.

That's generally the target that we would have for that business, ex the kind of Middle East headwinds that we're experiencing currently. Platforms again, to Josh's point, a high-single-digit grower really led by the embedded solutions, managed PayFac and PayFac capabilities, obviously with VAS becoming an increasingly important component of revenue growth over time.

Then SMB, we've still targeted in that mid-single-digit range. That's a little bit of a more secular story than anything else.

I think, as probably everyone on the audience is aware, more and more SMBs are procuring their payment solutions from their software provider. Over time, that's why Genius is such a critical component of our growth story for SMB, is getting good penetration with our own software solutions in restaurant and retail and adjacencies where we think Genius can be relevant, whereas over time other verticals will continue to shift towards our Platforms business, again, as more and more SMBs look to procure their solutions integrated with their software provider.

That's more of a secular trend broadly in the market, and why we expect to see kind of SMB at those types of growth rates, again, with Genius becoming a more meaningful contributor over time, and ultimately able to drive the growth rate higher, but that's going to take some time just given the relative size of Genius today.

Very helpful. Thank you, Cameron.

Thank you, Josh. Appreciate it.

Thanks.

Morning, guys. Thanks.

I

know you said 4.5% growth for the second half of the year. Just curious on cadence there between Q3 and Q4.

Then just to get a little nerdy on the numbers maybe for a second, I want to talk about the Middle East. Just going back to last quarter, I thought we were talking about a 70 basis point headwind in Q2 and then another 30 basis points from the IRS contract.

It sounds like the airlines alone were a little over 100 bips of headwind in Q2. Just wanted to make sure we have the facts right there, and then should we assume that the 4.5% outlook for the second half assumes that current run rate of airline headwind stays unchanged?

Jason, it's Cameron. Maybe I'll start, and I'll ask Josh to chime in with some more color as well.

To your first question, I wouldn't parse too specifically Q3 and Q4 at this point in time. Obviously, given the drivers of better growth in the back half of the year, I think it's fair to assume that on the margin Q4 would be a little better than Q3, but I don't think we're talking huge material differences here relative to the back-half outlook in totality.

As a reminder, those drivers are really a few things. One is just the continued ramping of our sales force from a productivity perspective as well as our new sellers.

Two, it's the continued progress that we're seeing with Genius and obviously the trends that we've seen in the first half of the year start to contribute more as a revenue matter into the back half of the year on the margin, which is helpful. Then third, it's really the boarding and go-live and ramping of the Enterprise book of business that is what we call signed but not live.

We called out on the call that about a third of those went live in the second quarter, they'll now start to ramp in the back half of the year. Examples are ALDI, Morrisons, Careem, which is a ride-hailing service in the UAE.

All those are going to help to drive slightly better kind of outcomes in the back half of the year as those revenues ramp for the business. Hopefully that gives you a little bit of color around the drivers for the back half.

I think to your second question, first of all, your memory is very good. We did call out 70 basis points and roughly 30.

I think the 70 basis points, as we said in our Q1 call, really sort of presupposed that the Middle East conflict kind of ended more quickly than certainly it hasn't ended yet. It ended up persisting for the entirety of the second quarter, and the impact ended up being slightly more than we anticipated, closer to that 100 basis points versus the 70 that we called out in the first quarter.

We were largely able to absorb the other things largely because of better volume, some of that was driven by the World Cup that we don't necessarily expect to persist in the back half of the year, but we were able to offset some of the impact around that for the second quarter. For the balance of the year, look, as I said earlier, things are getting slightly better, but we still expect a headwind from the Middle East conflict on the travel portfolio.

If things get worse, it could drift up to that kind of 100 basis point impact we saw in the second quarter. If not, it'll probably slightly less than that, and I think that's what our guide largely reflects.

I think we've given room in the guide for a variety of outcomes around the Middle East conflict, and given the uncertainty and again the current instability in the environment, we think that's the prudent approach to take.

Yep, I totally agree, and that's helpful color. I'm just going to pivot to free cash flow for a second.

It's good to see some of those adjustments coming down, and I know we've been talking about an adjusted free cash flow number for next year of $4 billion. Just as we think about trying to translate that to more of a GAAP free cash flow number, based on your sense of how much more the adjustments may come down next year, what might be a reasonable range to think about for a clean GAAP free cash flow number in 2027?

Look, Jason, we talked about when we announced the transaction that we expected $600 million of one-time costs to match our overall synergies. This year, we're trending, I think, in the first half of integration, we're right around that $300 million mark.

We expect about another $100 million. That does include some separation costs in it, you back that out.

We would expect to go ahead and see the integration costs come down slowly over time, with them primarily front-loaded in the first half of the integration and then tailing off into 2028. Again, we feel comfortable kind of with our free cash flow that we've called out in 2028, our capital returns, and deleveraging back down to that 3 times leverage point.

Then as we obviously get closer to 2027, we'll be able to give a better steer with regards to what the outlook looks like for '27. I'd say right now we feel very good about getting back to that 3 times leverage point and returning the capital that we committed to returning when we announced at our Investor Day in September of 2024.

Jason, it's Cameron. Let me just add a couple comments to that.

We are trying to pull forward some of our integration work, but more importantly, our separation work. We spend a lot of time talking about integration.

We haven't spent so much time talking about separation, but we are trying to pull forward as much as we can our separation from FIS for Worldpay, in particular their technology environments. The sooner that we can do that, the sooner we can execute on our own plans without reliance upon coordination through FIS, etc.

That's not a knock on FIS, by the way. It's just that's what's in the best interests for the business for the long term, is trying to move off as quickly as we can.

We are accelerating some of that work into 2026, to Josh's earlier point, around separation, those costs will likely be a little bit higher this year. The benefit of that also is it helps to offset the tax gain on the Issuer sale.

There is some benefit of pulling forward planned one-time expenses associated with integration and separation into this year. As Josh said, over time, naturally those costs will drift down as we continue to execute on both of those initiatives as we get into '27 and more so in 2028.

I think the most important point is, we remain confident in our ability to generate the free cash flow next year that supports the capital return plans that we've articulated and view ourselves very much on track to hit those objectives.

Thank you. Appreciate it.

Hey, thanks, guys. Cameron, I want to ask first a question on Genius, and then, Josh, I will have a quick follow-up on the free cash, just more in this year versus going forward.

Cameron first, just on the Genius rollout, obviously the checks continue to be very strong that the demand is there. What expectations do you actually have for its ability, specifically the SMB segment, and to see success with cross-selling to the Worldpay side over the next 12 months?

Just I guess we're looking for a little bit more color on milestones you're looking to achieve that we can watch and see success in.

I think it's a good question, Darrin. Thanks, and thanks for the commentary as well.

We see the same thing in the marketplace, which is why we continue to invest behind the product, the capability, the marketing, the brand, the distribution, etc., because we have big ambitions for Genius, and certainly all of the early results a year in from launch remain very, very positive, particularly as it relates to the sequential growth in new sales and just the receptivity in the market for the product we're able to deliver. Look, I think as we get through kind of the back half of the year heading into 2027, we owe you more of sort of the key sort of KPIs around Genius itself.

Just where have we gotten to in terms of size, what do we expect sort of the Genius-specific growth rates to be as we continue to move forward and invest against the product and solution. It's such a modest contributor today.

We haven't really broken out a lot of specificities around Genius in particular, but other than kind of what we're seeing from a front-book perspective. As we continue to scale it for the back half of the year and head into 2027, we'll be able to provide you a little bit more color around size, contribution, and where we see it going from a growth rate perspective over time that I think will help inform the overall expectations around kind of growth for the SMB channel.

I would just reflect back on the comment I made earlier. I think it's important to recognize as this business evolves over the course of the next few years, and this is largely a US commentary, but that's the vast majority of our SMB business, ultimately the SMB channel is going to be selling Genius largely in restaurant and retail verticals and some adjacencies where, again, Genius can be relevant.

Most everything else we're doing from a vertical perspective will be through our Platforms business, again, as more and more SMBs are procuring their payment solutions through their software providers. That's a natural kind of secular trend in the industry, but certainly something we expect to continue to play out in our SMB portfolio and our Platforms portfolio over a period of time.

As payment and software continue to merge, and buying behaviors of SMBs continue to drift towards procuring it through software vendors, ultimately that's the expectation that you should see in the SMB channel and the Platforms business. Continue strong growth.

SMB is transitioning from having historically sold standalone payment solutions to selling Genius. Ultimately, whether it's next year or the following, I think effectively 100% of front-book sales in our SMB channel will be Genius in the US, and the rest of the world will evolve towards that same model over a period of time.

That's really helpful. Josh, just my follow-up was on free cash again.

I know you did about $1.2 billion in adjusted free cash, and you need to do about $2 billion in the second half. In terms of also real free cash, we calculate you would need a step-function of around $1.7 billion in the second half just to achieve what we think is the conversion.

Just I know you said there's seasonality that drives second half higher, but if you could just walk us through some of the key specifics to drive that materially higher free cash both on an adjusted and GAAP basis, that need to be really helpful just given the strong capital return program we're looking for.

Look, so, Darrin, a good question. What I would do is I would point you actually back to kind of the historical trends that we've seen around free cash flow conversion.

Historically, it's lower in the first half relative to the second half. I think if you go back and if you look at our free cash flow conversion, last year, it was over 100% in the second half of the year.

We would expect those trends to go ahead and continue for the second half where we see that acceleration. Look, we've already returned more than half of the capital that we targeted to return in 2026, we're well on our way there.

We feel very confident with regard to between dividends and buybacks that will be over that $2 billion mark for the full year.

Got it. Thanks, Josh.

Thanks, Darrin.

Thanks, guys. Good morning.

I just wanted to do a little bit of housekeeping on revenue. Since FX was neutral, was the delta between nominal and adjusted the $60 million of divestitures?

Then along those lines, on other revenues was down year-over-year on a normalized basis, which in our math takes the growth rate down obviously across the three segments. Can you just help us understand what sits in the other revenue bucket and when it stops being a drag?

Thanks.

Sure. Adam, as it relates to the other revenue, we called this out in our prepared remarks, this represents non-core portfolios of certain relationships that don't align to our segments or our go-to-market strategies.

What that really is comprised of, it's portfolio of partners that are no longer referring us front-book relationships and that are no longer actively providing us with new merchant referrals, so that's one piece of it. Another piece of it is there are a couple non-core processing businesses that we acquired through the Worldpay acquisition, that's included in there.

Then there's a portfolio where we provided managed services, where the partner has built its own acquiring platform and they're slowly migrating off of us. If you think about just the other revenue, and that's in our disclosure, about 8% in 2025 of our total revenue was other, and we expect that to be in the 6% range in 2026.

The reason, Adam, we broke that out is we want to go ahead and give better line of sight of what the core business looks like going forward. Those are some of the components that make up the other revenue.

Hey, Adam, and just to your first question, you're right, the difference year-over-year for Q2 is just going to be dispositions. There's really no meaningful FX sort of to call out.

The ex-dispositions number, I think it's a little north of $60 million, 63 or 65 in the second quarter is the difference. Then to just put a finer point on Josh's comment, the aggregate growth rate's the aggregate growth rate.

What we're trying to demonstrate I think in the disclosures and the way that we've segmented the business is, the future of the business really now sits in Enterprise, Platforms, and SMB. There are elements of the business that we are winding down and exiting over a period of time that will be a drag until they're gone, but we did want to at least highlight across the three segments what the ongoing sort of growth rate for the business is, in particular, how we're sort of competing and winning in the market, and what the three segments look like, excluding kind of the drag from this other portfolio of activities that were, in some cases, purposely sort of looking to exit and wind down over a period of time because they don't align with the go-forward strategy for the business.

We think the disclosures we provided help to provide a lot more transparency around that, and obviously the other revenue will continue to decline as that revenue attrites and we exit certain relationships over the coming years.

Great color. Thank you.

Thanks, Adam.

Hey, guys. Thank you.

I guess, I'm kind of wondering how we see the acceleration picture going forward. You're talking about second half, 4.5%.

As we look forward, it seems the Middle East 1% dissipates, you get Worldpay revenue synergies probably incremental kind of going into next year, and then Genius ramps. Do you feel pretty good today that 2027 will be an accelerating growth year?

Absolutely, David. I think for the reasons you described, obviously, once we lap the headwinds from the Middle East as we get into Q2 of next year, with the acceleration we're seeing around Genius, the front-book kind of bookings numbers that we've been able to generate this year, all gives us confidence kind of going into next year that we should see an acceleration off of our current expected 4% to 5% constant-currency, ex-disposition guide for 2026, without a doubt.

It's a big ship, obviously moving revenue a point on a business of this size is a pretty meaningful increment kind of year-over-year, but we feel good certainly about the momentum that we'll have kind of exiting the year given everything that we're executing on heading into 2027.

Thank you. Just quick follow-up, SMB 4%, was that pretty equal between Worldpay and Global Payments?

It's really hard now that we've segmented the business and combined the portfolios to really disaggregate between the two portfolios. I would say, we haven't really talked about it, one of the less bright spots in SMB is the UK.

The UK market, I think overall, just as a GDP matter, is kind of struggling from a macro standpoint, and certainly, we're seeing a little bit of softness in the UK market that's more coming from Worldpay just given their presence, particularly in the SMB space there. Look, if I had to sort of try to pinpoint it, it's probably slightly more weighted to Global than Worldpay on the SMB side, but, at this stage, given the work we've done to integrate the business, in particular how we've aligned the segments, which has really been on an account-by-account, relationship-by-relationship basis, it's kind of hard now to disaggregate it back to what was kind of pre-merger heritage Worldpay versus pre-merger heritage Global Payments.

Yeah. Thank you.

Thanks, David.

Hi there. I wanted to ask in the context of the higher customer yields you're seeing on Genius, is there a back-book of existing customers on the SMB side that you can convert to Genius?

Could that become a important kind of accelerant or growth driver for I guess Genius and the SMB segment growth rate?

Hi, Ramsey. Thanks for the question.

It's Bob. The answer is yes.

As we've mentioned a couple of times when this topic has come up, our focus has largely been on converting front-book opportunities into Genius, attaching more product, adding more value around each of those engagements with prospects and clients. There is a back-book.

The back-book of point-of-sale is largely serviced by our dealer network today, and as they're having conversations with their clients, there's opportunistic upgrades that are happening. I think the attractiveness of the new Genius technology that spans both the sleek hardware profile that we've built around the countertop experience, kiosks, digital menu boards, and the new handhelds, that's really attractive.

The incremental functionality that Genius brings to bear, given where they were coming from, is very attractive. We do see a degree of kind of opt-in upgrades as customers are looking for increased functionality and a better experience overall.

There's not a mass campaign around back-book conversion, and we haven't put a gun to anybody's head to force them with platform retirements or deprecation sort of expectations. We continue to upgrade the back-book at a measured pace, really on a voluntary basis as customers want to opt in to those new solutions.

But 100%, truly, of our focus around Genius adoption is around horizontal, vertical expansion, geographies, making it available in more of our distribution channels, and increasing our sales footprint and sales effectiveness both in terms of the digital client journey as well as kind of our traditional sales.

Okay. A quick follow-up for me, in Enterprise, in the slide presentation, I think you called out 30% growth in cross-sell bookings.

I'm just wondering if you could comment a little further on where you're seeing success there, what that means.

I'll touch on that, Ramsey. Thanks for the question.

It's really a commentary around our VAS portfolio. Bob touched on VAS and the importance of VAS as a driver of growth across all three segments.

It's particularly important in our Enterprise channel, and we've seen really good progress this year, largely through a concerted effort to drive more cross-selling of our value-added services into existing client relationships that we have. We have teams very much focused on net-new payment opportunities, but we also have teams now very dedicated to cross-selling value-added services, whether it's RevenueBoost, our Authentication Optimization solutions, etc., across our FX capabilities, across our portfolio of clients.

We're seeing very good traction there, which is partially driving, obviously, the strong bookings growth that we've been able to articulate for the Enterprise business on a year-to-date basis.

Fantastic. Thank you.

Thanks, Ramsey.