Shift4 Payments (NYSE:FOUR) management highlighted a “pivotal year” in 2025 and laid out plans for further international expansion in 2026, while acknowledging a dynamic macro backdrop that has weighed on same-store sales trends in parts of its Americas SMB base.
2025: Record results and expanded global footprint
Chief Executive Officer Taylor Lauber said Shift4 produced record results in 2025 alongside “transformative M&A” and continued diversification across verticals the company describes collectively as the “experience economy.” Lauber said Shift4’s strategy is to focus on demanding, in-person commerce environments where it typically faces “one or fewer good competitors” in each vertical.
Lauber also pointed to continued merchant wins and renewals, including a five-year renewal with Choice Hotels, and said the company powered payments at the “big game” at Levi’s Stadium in early February.
International momentum and product roadmap
Management emphasized progress outside the Americas. Lauber said Shift4 ended 2025 with over 80,000 merchants outside of the Americas, before cross-selling Global Blue merchants, and noted momentum for SkyTab POS merchants across the U.K., Ireland, and Germany. He also said Canada is a focus area now that the company has full-stack capabilities there, and that Shift4 entered Australia and New Zealand through the SmartPay acquisition, building a “substantive sales force” in the region.
Looking to 2026, Lauber highlighted several priorities:
- Rolling out all-in-one terminals in Europe that combine payments, dynamic currency conversion (DCC), and tax-free shopping; Shift4 is targeting 15 countries for launch in 2026.
- Expanding DCC across the U.S. merchant base, which management said could be particularly valuable ahead of the World Cup and the 2028 Summer Olympics.
- Continuing SkyTab momentum and rebranding SkyTab to Shift4Dine later in 2026 to better leverage the broader Shift4 brand.
- Increasing focus on strategic markets in Asia and the Middle East, including Japan and Saudi Arabia, where Lauber said the company currently offers only one of its products.
- Advancing an AI roadmap, including a partnership with xAI to adopt Grok “in virtually every area” of the business, AI assistants within key products, churn-prevention models, and productivity improvements within engineering teams.
Governance and capital structure changes
Lauber also discussed a “simplification transaction” announced earlier in 2026. He said Shift4 collapsed all B and C shares previously held by its founder into Class A common stock, meaning Shift4 is no longer a controlled company under NYSE rules. Going forward, he said the founder will own approximately 27% of outstanding Class A shares with voting rights “par” with other shareholders. Lauber added that the founder agreed to transfer all future benefits of the Tax Receivable Agreement to the company, eliminating an estimated $440 million of future TRA payments.
Financial results: Q4 and full-year 2025
Chief Financial Officer Christopher Cruz said 2025 was a record year across key financial metrics. Full-year gross revenue was $4.18 billion, volume was $209 billion, and blended spreads were 61 basis points, above the company’s guidance of greater than 60 basis points. Gross Revenue Less Network Fees (GRLNF) was $1.98 billion, up 46% year-over-year. Adjusted EBITDA was $970 million, up 43% year-over-year, representing a 49% margin. Adjusted free cash flow totaled $500 million, which Cruz said exceeded the company’s guided free cash flow conversion range by 150 basis points.
For the fourth quarter, Cruz reported gross revenue of $1.189 billion (up 34% year-over-year) and volume of $59 billion (up 23%). Blended spreads were 57 basis points, which Cruz attributed to mix effects from “a few enterprise go-lives with strong seasonal volumes,” including Alterra’s Ikon Pass, noting that enterprise volume outperformance can pressure blended spreads. GRLNF rose 51% to $610 million, though Cruz said it landed toward the lower end of guidance due to continued same-store sales trends, particularly among SMBs in the Americas, which were further impacted by late Q4 weather events.
Adjusted EBITDA in Q4 was $304 million (up 48%), with a 50% margin. Non-GAAP EPS was $1.60. Adjusted free cash flow was a quarterly record of $171 million, representing 56% conversion from adjusted EBITDA.
Cruz also said year-end net leverage, pro forma for the full-year effect of Global Blue, was 3.4x. He noted actions in November including repayment of 2025 convertible notes, issuing incremental euro-denominated senior notes under the existing 2033 indenture, and repricing the term loan, which he said generated 50 basis points of run-rate savings. Management reiterated that it does not expect net leverage to exceed 3.75x on a sustained basis.
2026 outlook: growth algorithm, macro watchpoints, and buybacks
Shift4 introduced full-year 2026 guidance calling for volume of $240 billion to $260 billion, with blended spreads expected to remain above 60 basis points. GRLNF is guided to $2.5 billion to $2.6 billion, and adjusted EBITDA to $1.165 billion to $1.215 billion, implying margins of approximately 47%. Non-GAAP EPS is guided to $5.50 to $5.70, assuming a 26% effective tax rate. Adjusted free cash flow is expected to be $490 million to $510 million, with conversion moderating to about 42% due to the annualization of interest expense, lower interest income tied to cash balances, and Global Blue-related integration investments and seasonality.
Cruz said the company will begin disaggregating revenue into three categories: payments-based revenue (reported gross, with network fees backed out for GRLNF contribution), tax-free shopping revenue, and subscription and other revenue. He said this change is intended to increase transparency and keep focus on “North Star” payments-based revenue growth while investors acclimate to the tax-free shopping line.
On macro assumptions, Cruz pointed to three key variables management is monitoring: same-store sales volatility in the Americas SMB base (restaurants, lodging, and retail), FX moves impacting demand for tax-free shopping (particularly USD versus euro), and geopolitical/tourism tension in Asia that affects travel corridors, citing passenger seats down nearly 30% between China and Japan.
Shift4 also provided Q1 2026 guidance of GRLNF of $548 million, adjusted EBITDA of $233 million, adjusted free cash flow of $70 million, and gross revenue of $1.05 billion. Cruz said the outlook assumes the Bambora transaction is expected to close in the “next couple of days.”
On capital allocation, Cruz said the company viewed share repurchases as the most attractive risk-adjusted return in Q4. Shift4 repurchased 7.7 million shares between Q4 and year-to-date Q1, with $500 million remaining under the $1 billion authorization. He added that, given repurchases, the previously stated goal of a $1 billion Q4 2027 adjusted free cash flow exit rate should be viewed on a per-share basis.
Management also discussed how it evaluates investment returns through ROIC versus WACC, with Cruz saying ROIC averaged approximately 13% across 2023 and 2024, exceeding the midpoint of the company’s WACC range by 300 to 400 basis points.
About Shift4 Payments (NYSE:FOUR)
Shift4 Payments is a U.S.-based provider of integrated payment processing and technology solutions, serving merchants across the hospitality, retail, e-commerce, gaming and lodging industries. The company’s platform enables businesses to accept in-store, online and mobile payments through a combination of point-of-sale hardware, payment gateway services and back-office software. By centralizing transaction processing and reporting, Shift4 aims to simplify payments, enhance security and streamline operations for its merchant customers.
The company’s core offerings include encrypted point-of-sale terminals, cloud-based payment gateways, and developer-friendly APIs for online and mobile checkouts.
