Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

Fiserv, Inc.

Consolidated Statements of Income

(In millions, except per share data)

(Unaudited)


	Three Months Ended March 31,
		2025		2024
Revenue:
Processing and services (1)		$	4,045	$	4,000
Product		1,085		883
Total revenue		5,130		4,883
Expenses:
Cost of processing and services		1,389		1,354
Cost of product		684		651
Selling, general and administrative		1,682		1,697
Net gain on sale of other assets		(20)		—
Total expenses		3,735		3,702
Operating income		1,395		1,181
Interest expense, net		(331)		(261)

Other expense, net		(18)		(7)
Income before income taxes and loss from investments in unconsolidated affiliates		1,046		913
Income tax provision		(190)		(153)
Loss from investments in unconsolidated affiliates		(8)		(8)
Net income		848		752
Less: net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interest		(3)		17
Net income attributable to Fiserv, Inc.		$	851	$	735

Net income attributable to Fiserv, Inc. per share:
Basic		$	1.52	$	1.24
Diluted		$	1.51	$	1.24

Shares used in computing net income attributable to Fiserv, Inc. per share:
Basic		561.3		590.9
Diluted		564.7		594.8

(1)Includes processing and other fees charged to related party investments accounted for under the equity method of $36 million and $40 million for the three months ended March 31, 2025 and 2024, respectively (see Note 19).

See accompanying notes to consolidated financial statements.

Fiserv, Inc.

Consolidated Statements of Comprehensive Income

(In millions)

(Unaudited)


	Three Months Ended March 31,
		2025		2024
Net income		$	848	$	752
Other comprehensive income (loss):
Fair market value adjustment on derivatives		3		1
Reclassification adjustment for net realized losses (gains) on cash flow hedges included in cost of processing and services		2		(1)
Reclassification adjustment for net realized losses on cash flow hedges included in net interest expense		3		4
Tax impacts of derivatives		(2)		(1)
Unrealized loss on defined benefit pension plans (see Note 1)		—		(84)
Tax impacts of defined benefit pension plans		—		21
Foreign currency translation		197		(133)

Tax impacts of foreign currency translation		40		(31)
Total other comprehensive income (loss)		243		(224)
Comprehensive income		$	1,091	$	528
Less: net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interest		(3)		17
Less: other comprehensive income (loss) attributable to noncontrolling interests		17		(13)
Comprehensive income attributable to Fiserv, Inc.		$	1,077	$	524

See accompanying notes to consolidated financial statements.

Fiserv, Inc.

Consolidated Balance Sheets

(In millions)

(Unaudited)


	March 31, 2025		December 31, 2024
Assets
Cash and cash equivalents	$	1,177	$	1,236
Trade accounts receivable, less allowance for doubtful accounts	3,935		3,725
Prepaid expenses and other current assets	3,646		3,087
Settlement assets	16,833		15,429

Total current assets	25,591		23,477
Property and equipment, net	2,427		2,374
Customer relationships, net	5,737		5,868
Other intangible assets, net	4,765		4,072
Goodwill	36,983		36,584
Contract costs, net	999		996
Investments in unconsolidated affiliates	1,538		1,506
Other long-term assets	2,362		2,299
Total assets	$	80,402	$	77,176
Liabilities and Equity
Accounts payable and other current liabilities	$	4,339	$	4,799
Short-term and current maturities of long-term debt	1,281		1,110
Contract liabilities	840		819
Settlement obligations	16,833		15,429

Total current liabilities	23,293		22,157
Long-term debt	27,016		23,730
Deferred income taxes	2,427		2,477
Long-term contract liabilities	263		263
Other long-term liabilities	882		863
Total liabilities	53,881		49,490
Commitments and Contingencies (see Note 18)

Fiserv, Inc. Shareholders’ Equity:
Preferred stock, no par value: 25 million shares authorized; none issued	—		—
Common stock, $0.01 par value: 1,800 million shares authorized; 784 million shares issued	8		8
Additional paid-in capital	22,821		23,080
Accumulated other comprehensive loss	(1,187)		(1,413)
Retained earnings	24,426		23,575
Treasury stock, at cost, 228 million and 220 million shares, respectively	(20,184)		(18,182)
Total Fiserv, Inc. shareholders’ equity	25,884		27,068
Noncontrolling interests	637		618
Total equity	26,521		27,686
Total liabilities and equity	$	80,402	$	77,176

See accompanying notes to consolidated financial statements.

Fiserv, Inc.

Consolidated Statements of Cash Flows

(In millions)

(Unaudited)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net income	$	848	$	752
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and other amortization	437		401
Amortization of acquisition-related intangible assets	331		373
Amortization of financing costs and debt discounts	11		11

Share-based compensation	124		86

Deferred income taxes	(37)		(24)
Net gain on sale of other assets	(20)		—
Loss from investments in unconsolidated affiliates	8		8
Distributions from unconsolidated affiliates	10		8

Non-cash foreign currency exchange loss	38		35

Other operating activities	9		(11)
Changes in assets and liabilities, net of effects from acquisitions and dispositions:
Trade accounts receivable	(146)		3
Prepaid expenses and other assets	(465)		(315)
Contract costs	(72)		(57)
Accounts payable and other liabilities	(445)		(457)
Contract liabilities	17		18
Net cash provided by operating activities	648		831
Cash flows from investing activities:
Capital expenditures, including capitalized software and other intangibles	(335)		(420)

Payments for acquisition of businesses, net of cash acquired	(316)		—
Merchant cash advances, net	(243)		—
Distributions from unconsolidated affiliates	—		22
Purchases of investments	(32)		(3)
Proceeds from sale of investments	—		3
Other investing activities	1		1
Net cash used in investing activities	(925)		(397)
Cash flows from financing activities:
Debt proceeds	776		2,743
Debt repayments	(955)		(987)
Net borrowings from (repayments of) commercial paper and short-term borrowings	2,696		(484)
Payments of debt financing costs	—		(11)
Proceeds from issuance of treasury stock	24		39
Purchases of treasury stock, including employee shares withheld for tax obligations	(2,352)		(1,674)

Settlement activity, net	434		219
Distributions paid to noncontrolling interests and redeemable noncontrolling interest	—		(34)


Other financing activities	4		—
Net cash provided by (used in) financing activities	627		(189)
Effect of exchange rate changes on cash and cash equivalents	26		(17)
Net change in cash and cash equivalents	376		228

Cash and cash equivalents, beginning balance	2,993		2,963
Cash and cash equivalents, ending balance	$	3,369	$	3,191

See accompanying notes to consolidated financial statements.

Fiserv, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

1. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements for the three months ended March 31, 2025 and 2024 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of Fiserv, Inc. (the “Company”). These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Principles of Consolidation

The consolidated financial statements include the accounts of Fiserv, Inc. and its subsidiaries in which the Company holds a majority controlling financial interest. All intercompany transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. Control is typically established when ownership and voting interests in an entity are greater than 50%. Investments in which the Company has significant influence but not control are accounted for using the equity method of accounting, for which the Company’s share of net income or loss is reported within income (loss) from investments in unconsolidated affiliates, and the related tax expense or benefit is reported within the income tax provision in the consolidated statements of income. Significant influence over an affiliate’s operations generally coincides with an ownership interest of between 20% and 50%; for partnerships and limited liability companies, an ownership interest of between 3% and 50%; or board of director representation may also constitute significant influence.

The Company maintains a majority controlling financial interest in certain entities, mostly related to consolidated merchant alliances (see Note 19). Noncontrolling interests represent the minority shareholders’ share of the net income or loss and equity in consolidated subsidiaries. The Company’s noncontrolling interests presented in the consolidated statements of income include net income (loss) attributable to noncontrolling interests and, in 2024, redeemable noncontrolling interest. Noncontrolling interests are presented as a component of equity in the consolidated balance sheets. Additional information regarding the Company’s redeemable noncontrolling interest is included in Note 11 to the consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S.”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less and are stated at cost in the consolidated balance sheets, which approximates market value. Cash and cash equivalents that are restricted from use due to contractual or legal restrictions are included in other long-term assets in the consolidated balance sheets. Cash and cash equivalents held on behalf of merchants and other payees are included in settlement assets in the consolidated balance sheets. The changes in settlement cash and cash equivalents are included in settlement activity, net within cash flows from financing activities in the consolidated statements of cash flows.

The following table provides a reconciliation between cash and cash equivalents on the consolidated balance sheets and the consolidated statements of cash flows:


(In millions)	March 31, 2025		December 31, 2024		March 31, 2024
Cash and cash equivalents on the consolidated balance sheets	$	1,177	$	1,236	$	1,214
Cash and cash equivalents included in settlement assets	2,190		1,756		1,975
Other restricted cash	2		1		2
Total cash and cash equivalents on the consolidated statements of cash flows	$	3,369	$	2,993	$	3,191

Allowance for Doubtful Accounts

The Company analyzes the collectability of trade accounts receivable by considering historical bad debts and issued client credits, client creditworthiness, current economic trends, changes in client payment terms and collection trends when evaluating the adequacy of the allowance for doubtful accounts. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. The allowance for doubtful accounts was $70 million and $71 million at March 31, 2025 and December 31, 2024, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


(In millions)	March 31, 2025		December 31, 2024
Prepaid maintenance, postage and insurance	$	321	$	216


Other prepaid expenses	245		188
Total prepaid expenses (1)	566		404

Income tax receivables (2)	393		501
Clover Capital cash advances, net	396		381
Settlement advance cash payments	1,302		1,101
Other current assets	989		700
Total other current assets	3,080		2,683
Total prepaid expenses and other current assets	$	3,646	$	3,087

(1)Prepaid expenses represent advance payments for goods and services to be consumed in the future.

(2)Includes receivables associated with transferable federal tax credits (see Note 15).

The Company offers merchants advance access to capital, primarily through its Clover Capital program. Under this program, merchants sell fixed amounts of their future credit card receivables to the Company in exchange for an up-front purchase price payment. Future credit card receivables purchased by the Company under the Clover Capital program were $414 million and $397 million at March 31, 2025 and December 31, 2024, respectively. The Company maintained a reserve of $18 million and $16 million at March 31, 2025 and December 31, 2024, respectively, based on an estimate of uncollectible amounts.

The Company also offers merchants within its international operations advance access to capital by providing them the opportunity to receive settlement cash payments in advance in exchange for their receivables from card issuers, including when the cardholders have elected to pay over time in installments. These local currency denominated arrangements are primarily associated with the Company’s operations in Latin America, the most significant of which are denominated in Argentine Peso and Brazilian Real.

Settlement Assets and Obligations

Settlement assets and obligations represent intermediary balances arising from the settlement process, which involves the transfer of funds among card issuers, payment networks, processors, merchants and consumers, and collateral amounts held to manage merchant credit risk, primarily associated with the Company’s merchant acquiring services. As a processor, the Company facilitates the clearing and settlement activity for the merchant and records settlement assets and obligations upon processing a payment transaction. Settlement assets represent cash received or amounts receivable from agents, payment

networks, bank partners, merchants or direct consumers. Settlement obligations represent amounts payable to merchants and payees.

Certain merchant settlement assets (included within settlement receivables) that relate to settlement obligations are held by partner banks to which the Company does not have legal ownership, but which the Company has the right to use, to satisfy the related settlement obligations. The Company records settlement obligations for amounts payable to merchants and for outstanding payment instruments issued to payees that have not yet been presented for settlement.

Allowance for Merchant Credit Losses

With respect to the Company’s merchant acquiring business, the Company’s merchant customers have the legal obligation to refund any charges properly reversed by the cardholder. However, in the event the Company is not able to collect the refunded amounts from the merchants, the Company may be liable for the reversed charges. The Company’s risk in this area primarily relates to situations where a cardholder has purchased goods or services to be delivered in the future. The Company requires cash deposits, guarantees, letters of credit or other types of collateral from certain merchants to mitigate this risk. Collateral held by the Company, or held by partner banks for the Company’s benefit, is classified within settlement assets, and the obligation to repay the collateral is classified within settlement obligations in the consolidated balance sheets. The amount of merchant collateral available to the Company was $576 million and $598 million at March 31, 2025 and December 31, 2024, respectively. The Company also utilizes a number of systems and procedures to manage merchant credit risk. Despite these efforts, the Company experiences losses due to merchant defaults. The aggregate merchant credit loss expense, recognized by the Company within cost of processing and services in the consolidated statements of income, was $28 million and $25 million for the three months ended March 31, 2025 and 2024, respectively.

The Company maintains an allowance for merchant credit losses that are expected to exceed the amount of merchant collateral. The allowance includes estimated losses from anticipated chargebacks and fraud events that have been incurred on merchants’ payment transactions that have been processed but not yet reported to the Company, which is recorded within accounts payable and other current liabilities in the consolidated balance sheets, as well as estimated losses on refunded amounts to cardholders that have not yet been collected from the merchants, which is recorded within prepaid expenses and other current assets in the consolidated balance sheets. The allowance is based primarily on the Company’s historical experience of credit losses and other factors such as changes in economic conditions or increases in merchant fraud. The aggregate merchant credit loss allowance was $40 million at both March 31, 2025 and December 31, 2024.

Goodwill

Goodwill represents the excess of purchase price over the fair value of identifiable assets acquired and liabilities assumed in a business combination. The Company evaluates goodwill for impairment on an annual basis, or more frequently if circumstances indicate possible impairment. Goodwill is tested for impairment at a reporting unit level, which is one level below the Company’s operating segments. The Company’s most recent annual impairment assessment of its reporting units in the fourth quarter of 2024 determined that its goodwill was not impaired as the estimated fair values exceeded the carrying values for each of the Company’s reporting units. However, it is reasonably possible that future developments related to the interest or currency exchange rate environments; a shift in strategic initiatives; a deterioration in financial performance within a particular reporting unit; or significant changes in the composition of, or assumptions used in, the quantitative test for certain of the Company’s reporting units (such as an increase in risk-adjusted discount rates) could have a future material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment. There is no accumulated goodwill impairment for the Company through March 31, 2025.

Foreign Currency

The U.S. dollar is the functional currency of the Company’s U.S.-based and certain foreign-based businesses. Where the functional currency differs from the U.S. dollar, assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rates during the reporting period. Gains and losses from foreign currency translation are recorded as a separate component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are included in determining net income for the reporting period.

Financial statements of subsidiaries located in highly inflationary economies outside of the U.S. are remeasured into U.S. dollars, and the foreign currency gains and losses from the remeasurement of monetary assets and liabilities are reflected in the consolidated statements of income, rather than as foreign currency translation within accumulated other comprehensive loss in the consolidated balance sheets. The remeasurement of monetary assets and liabilities in highly inflationary economies, including Argentina, resulted in foreign currency exchange losses of $18 million and $35 million for the three months ended March 31, 2025 and 2024, respectively, which is included within other expense, net in the consolidated statements of income.

To reduce exposure to changes in the value of the Company’s net investments in certain of its foreign currency-denominated subsidiaries due to changes in foreign currency exchange rates, the Company uses fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries. Foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation, net of tax, within other comprehensive income (loss) in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss within the consolidated balance sheets until the sale or complete liquidation of the underlying foreign currency-denominated subsidiaries.

Derivatives

Derivatives are entered into for periods consistent with related underlying exposures and are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. If the derivative is designated as a net investment hedge, changes in the fair value of the derivative, net of tax, are recorded in the foreign currency translation component of other comprehensive income (loss) until the sale or complete liquidation of the underlying net investment. If the derivative is designated as a fair value hedge, changes in the fair value of the derivative are recorded in the same line item as the changes in the fair value of the hedged item and recognized in the consolidated statements of income. To the extent a derivative is not designated as a hedge, changes in fair value are recognized in the consolidated statements of income. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes. Additional information regarding the Company’s derivatives and hedging instruments is included in Note 7 to the consolidated financial statements.

Defined Benefit Pension Plans

The Company maintained frozen noncontributory defined benefit pension plans covering certain of its employees in the U.S. and United Kingdom (“U.K.”), which were terminated in September 2023. In March 2024, the Company entered into a group annuity insurance contract to provide for the administration of future payments to eligible plan participants of the terminated U.K. plan. In connection with the buy-in of this insurance policy, the plan’s projected benefit obligation was remeasured to the value of the group annuity insurance contract, resulting in an unrecognized loss, net of tax, of approximately $63 million recorded in accumulated other comprehensive loss within the consolidated balance sheet at March 31, 2024.

Upon the settlement of the terminated plans, which was completed in the fourth quarter of 2024, the Company funded a plan termination liability shortfall for the U.S. defined benefit pension plan of $20 million and recognized a non-cash pre-tax pension settlement charge for the U.S. and U.K. plans of $147 million. The Company expects to receive a refund, net of excise tax, of approximately $40 million of residual surplus related to the U.K. plan in 2025.

Interest Expense, Net

Interest expense, net consists of interest expense primarily associated with the Company’s outstanding borrowings and finance lease obligations, as well as interest income primarily associated with the Company’s investment securities. Interest expense, net consisted of the following:


	Three Months Ended March 31,
(In millions)		2025		2024
Interest expense		$	(339)	$	(271)
Interest income		8		10
Interest expense, net		$	(331)	$	(261)

2. Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncement

In 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which enhances and expands the current annual and interim requirements on segment information disclosures. Under the new disclosure requirements, entities are required to disclose, on an annual and interim basis: significant segment expense categories and amounts for each reportable segment that are included in the reported measure of segment profit or loss and regularly provided to the chief operating decision maker (“CODM”); an aggregate amount and qualitative description of other segment items

included in each reported measure of segment profit or loss for each reportable segment; measures of a segment’s profit or loss that are used by the CODM to assess segment performance and decide how to allocate resources; and disclosure of the title and position of the individual or the name of the group identified as the CODM. For public entities, the provisions within ASU 2023-07 are to be applied retrospectively for all comparative periods and were effective for fiscal years beginning after December 15, 2023, and for interim periods of fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-07 effective for the year ended December 31, 2024, with retrospective application of the additional segment information for the years ended December 31, 2023 and 2022. Additional information regarding the Company’s reportable segments, including the application of the provisions of ASU 2023-07 for the three months ended March 31, 2025 and 2024, is included in Note 20 to the consolidated financial statements.

Recently Issued Accounting Pronouncements

In 2023, the FASB issued ASU No. 2023-09*, Income Taxes (Topic 740) - Improvement to Income Tax Disclosures* (“ASU 2023-09”), which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. ASU 2023-09 requires entities to consistently categorize and provide greater disaggregation of information within the income tax reconciliation to enable users of financial statements to understand the nature and magnitude of factors contributing to the difference between the effective and statutory tax rates. For public entities, the provisions within ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, and for interim periods of fiscal years beginning after December 15, 2025. The Company is currently assessing the impact the adoption of ASU 2023-09 will have on its consolidated financial statement disclosures.

In 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. Under ASU 2024-03, entities will be required to disaggregate information, in tabular format, about specific natural expense categories underlying certain income statement expense line items that are considered ‘relevant’, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. Additionally, ASU 2024-03 requires the disclosure of selling expenses, along with how an entity defines such expenses. For public entities, the provisions within ASU 2024-03 (as further clarified through ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)) are effective for the first annual reporting period beginning after December 15, 2026, and for interim reporting periods within annual reporting periods beginning after December 15, 2027. The provisions within ASU 2024-03 are required to be applied prospectively; however, they may be applied retrospectively for all comparative periods following the effective date. The Company is currently assessing the impact the adoption of ASU 2024-03 will have on its consolidated financial statement disclosures.

3. Revenue Recognition

The Company generates revenue from the delivery of processing, service and product solutions. Revenue is measured based on consideration specified in a contract with a customer, and excludes any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time.

Disaggregation of Revenue

The Company’s operations are comprised of the Merchant and the Financial reportable segments (see Note 20). The table below presents the Company’s revenue disaggregated by business line, including a reconciliation with its reportable segments. The Company serves its global client base by working among its geographic teams across various regions, including the U.S. and Canada; Europe, Middle East and Africa (“EMEA”); Latin America (“LATAM”); and Asia Pacific (“APAC”). The majority of the Company’s revenue is earned in the U.S., with revenue generated within its EMEA, LATAM and APAC regions comprising approximately 14% and 15% of total revenue for the three months ended March 31, 2025 and 2024, respectively.


(In millions)	Three Months Ended March 31,
Revenue by Business Line		2025		2024
Small Business		$	1,594	$	1,488
Enterprise		502		463
Processing		276		302
Total Merchant Solutions segment revenue		$	2,372	$	2,253
Digital Payments		$	995	$	920
Issuing		814		761
Banking		608		604
Total Financial Solutions segment revenue		$	2,417	$	2,285
Corporate and Other		$	341	$	345
Total Revenue		$	5,130	$	4,883

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers:


(In millions)	March 31, 2025		December 31, 2024
Contract assets	$	843	$	832
Contract liabilities	1,103		1,082

Contract assets, reported within other long-term assets in the consolidated balance sheets, primarily relate to customer discounts (contract incentives) where revenue is recognized and payment of consideration under the contract is contingent upon the transfer of services to a customer over the contractual period. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue) for which transfer of control occurs, and therefore revenue is recognized, as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company recognized $309 million of revenue during the three months ended March 31, 2025 that was included in the contract liabilities balance at the beginning of the period.

Transaction Price Allocated to Remaining Performance Obligations

The following table includes estimated processing and services revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at March 31, 2025:



(In millions)
Year Ending December 31,
Remainder of 2025	$	1,878
2026	2,038
2027	1,492
2028	969
Thereafter	986

The Company applies the optional exemption under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition under the as-invoiced practical expedient. These multi-year contracts contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon the customer’s request. The Company also applies the optional exemptions under ASC 606 and does not disclose information for variable consideration that is a sales-based or usage-based royalty promised in exchange for a license of intellectual property or that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service in a series. The amounts disclosed above as remaining performance obligations consist primarily of fixed or monthly minimum processing fees and maintenance fees under contracts with an original expected duration of greater than one year.

4. Acquisitions

Acquisitions were accounted for as business combinations using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. Purchase price was allocated to the respective identifiable assets acquired and liabilities assumed based on the estimated fair values at the date of acquisitions. The results of operations for the following acquired businesses are included in the consolidated results of the Company from the respective dates of acquisition. Pro forma information for these acquired businesses is not provided because they did not have a material effect, individually or in the aggregate, on the Company’s consolidated results of operations.

Acquisition of Payfare

On March 2, 2025, the Company acquired Payfare, Inc. (“Payfare”), a Canada-based provider of program management solutions powering instant access to earnings and banking solutions for workforces, for a purchase price, including deferred payments, of $95 million, net of $46 million of acquired cash. Payfare is included within the Financial Solutions (“Financial”) segment and expands the Company’s embedded finance capabilities.

The preliminary allocation of purchase price resulted in the recognition of identifiable intangible assets, including acquired software and technology, of approximately $37 million with an estimated useful life of 7 years, $55 million of goodwill and $49 million of other net assets, including acquired cash. The allocation of the purchase price is preliminary and is subject to further adjustment, pending additional refinement and final completion of valuations. Goodwill, which is not deductible for tax purposes, is primarily attributed to the anticipated value created by further enhancing the Company’s finance solutions in embedded banking, payments and lending for large enterprises and financial institutions.

Acquisition of CCV

On March 18, 2025, the Company acquired CCV Group B.V. (“CCV”), a Netherlands-based supplier of point-of sale (“POS”) payment solutions, for $229 million, net of $26 million of acquired cash. CCV is included within the Merchant Solutions (“Merchant”) segment and expands the Company’s network of payment solutions.

The preliminary allocation of purchase price resulted in the recognition of identifiable intangible assets, including customer relationships, of approximately $96 million with an estimated useful life of 5 years, $121 million of goodwill and $38 million of other net assets, including acquired cash. The allocation of the purchase price is preliminary and is subject to further adjustment, pending additional refinement and final completion of valuations. Goodwill, which is not deductible for tax purposes, is primarily attributed to the anticipated value created by enabling the Company’s ability to accelerate the deployment of its Clover POS and business management platform, providing enhanced capabilities and innovation to an expansive combined merchant and partner base across Europe.

5. Intangible Assets

Identifiable intangible assets consisted of the following:


(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
March 31, 2025
Customer relationships	$	14,670	$	8,933	$	5,737
Acquired software and technology	1,955		1,188		767
Trade names	629		417		212
Purchased software	1,379		401		978
Capitalized software and other intangibles	4,370		1,562		2,808
Total	$	23,003	$	12,501	$	10,502

December 31, 2024
Customer relationships	$	14,488	$	8,620	$	5,868
Acquired software and technology	1,935		1,159		776
Trade names	635		410		225
Purchased software	1,019		517		502
Capitalized software and other intangibles	3,974		1,405		2,569
Total	$	22,051	$	12,111	$	9,940

Amortization expense associated with the above identifiable intangible assets was $559 million and $534 million for the three months ended March 31, 2025 and 2024, respectively.

6. Investments in Unconsolidated Affiliates

The Company maintains investments in various affiliates that are accounted for as equity method investments, the most significant of which are related to the Company’s merchant alliances. The Company’s share of net income or loss from these investments is reported within income (loss) from investments in unconsolidated affiliates and the related tax expense or benefit is reported within the income tax provision in the consolidated statements of income. The Company reviews its equity method investments each reporting period for indications of an other-than-temporary decline in value, including any significant changes in business relationships with merchant alliances. A decline in value of an equity method investment determined to be other-than-temporary is recorded as a current-period impairment charge within income (loss) from investments in unconsolidated affiliates in the consolidated statements of income.

Merchant Alliances

The Company maintains ownership interests in various merchant alliances. A merchant alliance is an agreement between the Company and a financial institution that combines the processing capabilities and management expertise of the Company with the visibility and distribution channel of the financial institution. A merchant alliance acquires credit and debit card transactions from merchants. The Company provides processing and other services to the merchant alliance and charges fees to the alliance based on contractual pricing (see Note 19). The Company’s investment in its merchant alliances was $1.2 billion at both March 31, 2025 and December 31, 2024, and is reported within investments in unconsolidated affiliates in the consolidated balance sheets.

The Company maintained a 40% ownership interest in the Wells Fargo Merchant Services merchant alliance (“WFMS”), which was accounted for as an equity method investment. The Company acquired its ownership, at fair value, in WFMS through its 2019 acquisition of First Data Corporation. In the third quarter of 2024, Wells Fargo Bank, National Association (“Wells Fargo”) provided the Company with a notice of non-renewal for WFMS. Upon the expiration of the joint venture on April 1, 2025, the Company received a cash payment of $453 million, which is subject to adjustment in the second quarter of 2025 upon completion of the contractual valuation and separation process.

During the year ended December 31, 2024, the Company recorded a $595 million non-cash impairment as a result of an other-than-temporary decline in the fair value of its equity method investment in WFMS within loss from investments in unconsolidated affiliates, with the related tax benefit of $129 million recorded through the income tax provision, in the consolidated statement of income. The Company recorded an initial pre-tax impairment charge of $570 million in the third quarter of 2024 based upon the Company’s estimate of the fair value of its portion of WFMS. An additional $25 million pre-tax impairment charge was recorded in the fourth quarter of 2024 based upon the expected cash payment, as determined in accordance with the contractual valuation and separation process.

Other Equity Investments

The Company also maintains investments, over which it does not have significant influence, in various equity securities without a readily determinable fair value. Such investments totaled $259 million and $250 million at March 31, 2025 and December 31, 2024, respectively, and are primarily included within other long-term assets in the consolidated balance sheets. The Company reviews these investments each reporting period to determine whether an impairment or observable price change for the investment has occurred. To the extent such events or changes occur, the Company evaluates the fair value compared to its cost basis in the investment. Gains or losses from a sale of these investments or a change in fair value are included within other expense, net in the consolidated statements of income for the period. Adjustments made to the values recorded for certain equity securities and net gains from sales of equity securities were not significant during the three months ended March 31, 2025, and were $21 million during the three months ended March 31, 2024.

7. Derivatives and Hedging Instruments

In order to limit exposure to risk, the Company maintains derivative instruments with creditworthy institutions to hedge against changing interest rates and foreign currency rate fluctuations. The Company utilizes forward exchange contracts, fixed-to-fixed cross-currency rate swap contracts and other non-derivative hedging instruments to manage such risk. The Company has designated these instruments as cash flow hedges, net investment hedges, or fair value hedges, as further described below. Derivative instruments maintained by the Company are measured on a recurring basis and are recorded at fair value either as an asset or liability in the consolidated balance sheets (see Note 8).

Cash Flow Hedges

The Company maintains forward exchange contracts, designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee. The notional amount of these derivatives was $449 million and $481 million at March 31, 2025 and December 31, 2024, respectively. Based on the amounts recorded in accumulated other comprehensive loss at March 31, 2025, the Company estimates that it will recognize losses of approximately $3 million in cost of processing and services during the next twelve months as foreign exchange forward contracts settle.

The Company previously entered into treasury lock agreements (“Treasury Locks”), designated as cash flow hedges, to manage exposure to fluctuations in benchmark interest rates in anticipation of the issuance of fixed rate debt in connection with the acquisition and refinancing of certain indebtedness of First Data Corporation and its subsidiaries. In 2019, concurrent with the issuance of U.S dollar-denominated senior notes, the Treasury Locks were settled resulting in a loss, net of income taxes, and recorded in accumulated other comprehensive loss that is being amortized to earnings over the terms of the originally forecast interest payments. The unamortized balance recorded in accumulated other comprehensive loss related to the Treasury Locks was $98 million and $101 million at March 31, 2025 and December 31, 2024, respectively. Based on the amounts recorded in accumulated other comprehensive loss at March 31, 2025, the Company estimates that it will recognize approximately $13 million in net interest expense during the next twelve months related to settled interest rate hedge contracts.

Net Investment Hedges

The aggregate notional amount of the fixed-to-fixed cross-currency rate swap contracts were as follows:


(In millions)	March 31, 2025	December 31, 2024
Currency
Euros	600	600
Singapore Dollars	841	841
Canadian Dollars	267	259

These fixed-to-fixed cross-currency rate swaps have been designated as net investment hedges to hedge a portion of the Company’s net investment in certain subsidiaries whose functional currencies are the Euro, Singapore Dollar, and Canadian Dollar. The Company has also designated certain of its Euro- and British Pound-denominated senior notes and Euro commercial paper notes as net investment hedges to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro and the British Pound.

Foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation within other comprehensive income (loss) in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss in the consolidated balance sheets until the sale or complete liquidation of the underlying foreign currency-denominated subsidiaries.

Foreign currency transaction gains (losses), net of income tax, related to net investment hedges that were recorded as foreign currency translation within other comprehensive income (loss) in the consolidated statements of comprehensive income were as follows:


	Three Months Ended March 31,
(In millions)		2025		2024
Cross-currency rate swap contracts		$	(21)	$	16
Foreign currency-denominated debt		(97)		77

The Company recorded income tax impacts of $40 million and $(31) million during the three months ended March 31, 2025 and 2024, respectively, in other comprehensive income (loss) from the translation of foreign currency-denominated senior notes, Euro commercial paper notes and cross-currency rate swap contracts.

Fair Value Hedges

The Company maintains a fixed-to-fixed cross-currency rate swap contract in the notional amount of 525 million British Pounds, designated as a fair value hedge, to mitigate the spot foreign exchange rate risk on the principal amount of its British Pound-denominated 2.250% senior notes due in July 2025, and previously maintained fixed-to-fixed cross-currency rate swap contracts on the principal amount of a Euro-denominated intercompany note, which was repaid in 2024. Net changes in the fair value of the cross-currency rate swaps ($20 million gain and $2 million loss for the three months ended March 31, 2025 and 2024, respectively), along with the offsetting change in the fair value of the hedged notes, attributable to fluctuations in the respective foreign currency spot rates are recognized in other expense, net within the consolidated statements of income.

8. Fair Value Measurements

The fair values of cash equivalents, trade accounts receivable, other current assets, settlement assets and obligations, accounts payable, and client deposits approximate their respective carrying values due to the short period of time to maturity. Derivative instruments maintained by the Company (see Note 7) are measured on a recurring basis based on foreign currency spot rates and forwards quoted by banks and foreign currency dealers and are marked to market each period. The Company’s obligation to purchase a redeemable noncontrolling interest in one of its merchant alliance joint ventures (see Note 11) is measured at the estimated fair value of the minority interest. Such obligation will be settled in 2025 through the distribution of certain merchant contracts to the minority partner. The fair value of the Company’s contingent liability for current expected credit losses associated with its debt guarantees, as further described below, is estimated based on assumptions of future risk of default and the corresponding level of credit losses at the time of default.

Assets and liabilities measured at fair value on a recurring basis consisted of the following:


			Fair Value
(In millions)	Classification	Fair Value Hierarchy	March 31, 2025		December 31, 2024
Assets

Cross-currency rate swap contract designated as net investment hedge	Prepaid expenses and other current assets	Level 2	$	1	$	2
Cross-currency rate swap contract designated as fair value hedge	Prepaid expenses and other current assets	Level 2	7		—



Cross-currency rate swap contracts designated as net investment hedges	Other long-term assets	Level 2	1		6

Liabilities
Cross-currency rate swap contract designated as fair value hedge	Accounts payable and other current liabilities	Level 2	$	—	$	12
Cross-currency rate swap contracts designated as net investment hedges	Accounts payable and other current liabilities	Level 2	14		9
Forward exchange contracts designated as cash flow hedges	Accounts payable and other current liabilities	Level 2	3		6

Forward exchange contracts designated as cash flow hedges	Other long-term liabilities	Level 2	—		2

Cross-currency rate swap contracts designated as net investment hedges	Other long-term liabilities	Level 2	35		17


Obligation to purchase redeemable noncontrolling interest	Accounts payable and other current liabilities	Level 3	95		95

Contingent debt guarantee	Other long-term liabilities	Level 3	12		15

Debt

The Company’s senior notes are recorded at amortized cost but measured at fair value for disclosure purposes. The estimated fair value of senior notes was based on matrix pricing which considers readily observable inputs of comparable securities (Level 2 of the fair value hierarchy). The carrying value of the Company’s foreign lines of credit, commercial paper notes and revolving credit facility borrowings approximates fair value as these instruments have variable interest rates and the Company has not experienced any change to its credit ratings (Level 2 of the fair value hierarchy). The estimated fair value of total debt, excluding finance leases and other financing obligations, was $26.1 billion and $23.2 billion at March 31, 2025 and December 31, 2024, respectively, and the carrying value was $26.7 billion and $23.9 billion at March 31, 2025 and December 31, 2024, respectively.

Debt Guarantee Arrangements

The Company maintains noncontrolling ownership interests in Sagent M&C, LLC and defi SOLUTIONS Group, LLC (collectively the “Lending Joint Ventures”), which are accounted for under the equity method. The Company’s net investment in the Lending Joint Ventures was $72 million and $49 million at March 31, 2025 and December 31, 2024, respectively. The Lending Joint Ventures maintain variable-rate term loan facilities with aggregate outstanding borrowings of $415 million in senior unsecured debt at March 31, 2025 and variable-rate revolving credit facilities with an aggregate borrowing capacity of $83 million with a syndicate of banks, which mature in April 2027. There were $28 million of aggregate outstanding borrowings on the revolving credit facilities at March 31, 2025. The Company has guaranteed the debt of the Lending Joint Ventures.

The Company maintains liabilities for its obligations to perform over the term of its debt guarantee arrangements with the Lending Joint Ventures, which are reported within other long-term liabilities in the consolidated balance sheets. The Company has provided aggregate guarantees of $498 million associated with the debt of the Lending Joint Ventures and is entitled to receive a defined fee in exchange for its guarantee of this indebtedness. The Company has not made any payments under the

guarantees, nor has it been called upon to do so, and does not anticipate that the Lending Joint Ventures will fail to fulfill their debt obligations.

The non-contingent component of the Company’s debt guarantee arrangements is recorded at amortized cost, but measured at fair value for disclosure purposes. The carrying value of the Company’s non-contingent liability of $19 million and $21 million approximates the fair value at March 31, 2025 and December 31, 2024, respectively (Level 3 of the fair value hierarchy). Such guarantees will be amortized in future periods over the contractual term of the debt. The contingent component of the Company’s debt guarantee arrangements represents the current expected credit losses to which the Company is exposed. The amount of the liability, as reflected within the table above, is estimated based on certain financial metrics of the Lending Joint Ventures and historical industry data, which is used to develop assumptions of the likelihood the guaranteed parties will default and the level of credit losses in the event a default occurs. The Company recognized $5 million and $4 million during the three months ended March 31, 2025 and 2024, respectively, within other expense, net in its consolidated statements of income related to its release from risk under the non-contingent guarantees as well as a change in the provision of estimated credit losses associated with the indebtedness of the Lending Joint Ventures.

Other Non-Financial Assets

Certain of the Company’s non-financial assets are measured at fair value on a non-recurring basis, including property and equipment, lease right-of-use assets, equity securities without a readily determinable fair value, goodwill and other intangible assets, and are subject to fair value adjustment in certain circumstances. Additional information about fair value adjustments recorded on a non-recurring basis during the three months ended March 31, 2025 and 2024 is included in Note 6 to the consolidated financial statements.

9. Accounts Payable and Other Current Liabilities

Accounts payable and other current liabilities consisted of the following:


(In millions)	March 31, 2025		December 31, 2024
Trade accounts payable	$	663	$	511
Client deposits	992		985
Transferable federal tax credits (see Note 15)	256		866
Accrued compensation and benefits	277		296
Accrued taxes	295		261
Accrued interest	224		335

Accrued payment network fees	307		253
Operating lease liabilities	118		116
Accrued professional fees	92		102

Obligation to purchase redeemable noncontrolling interest (see Note 11)	95		95
Other accrued expenses	1,020		979
Total	$	4,339	$	4,799

10. Debt

The Company’s debt consisted of the following:


(In millions)	March 31, 2025		December 31, 2024
Short-term and current maturities of long-term debt:
Foreign lines of credit	$	856	$	784
Finance lease and other financing obligations	425		326
Total short-term and current maturities of long-term debt	$	1,281	$	1,110

Long-term debt:
3.850% senior notes due June 2025	$	900	$	900
2.250% senior notes due July 2025 (British Pound-denominated)	680		661
3.200% senior notes due July 2026	2,000		2,000
5.150% senior notes due March 2027	750		750
2.250% senior notes due June 2027	1,000		1,000
1.125% senior notes due July 2027 (Euro-denominated)	540		521
5.450% senior notes due March 2028	900		900
5.375% senior notes due August 2028	700		700
4.200% senior notes due October 2028	1,000		1,000
3.500% senior notes due July 2029	3,000		3,000
4.750% senior notes due March 2030	850		850
2.650% senior notes due June 2030	1,000		1,000
1.625% senior notes due July 2030 (Euro-denominated)	540		521
5.350% senior notes due March 2031	500		500
4.500% senior notes due May 2031 (Euro-denominated)	864		835
3.000% senior notes due July 2031 (British Pound-denominated)	680		661
5.600% senior notes due March 2033	900		900
5.625% senior notes due August 2033	1,300		1,300
5.450% senior notes due March 2034	750		750
5.150% senior notes due August 2034	900		900
4.400% senior notes due July 2049	2,000		2,000
U.S. dollar commercial paper notes	2,841		221
Euro commercial paper notes	1,283		1,239
Revolving credit facility	72		115


Unamortized discount and deferred financing costs	(150)		(150)
Finance lease and other financing obligations	1,216		656
Total long-term debt	$	27,016	$	23,730

The Company was in compliance with all financial debt covenants during the three months ended March 31, 2025.

Senior Notes

In August 2024, the Company completed the public offering and issuance of $1.75 billion of senior notes, comprised of $850 million aggregate principal amount of 4.750% senior notes due in March 2030 and $900 million aggregate principal amount of 5.150% senior notes due in August 2034. Interest on these senior notes is paid semi-annually. The Company used the net proceeds from this senior notes offering for general corporate purposes, including the repayment of a portion of the Company’s commercial paper notes and for share repurchases.

In March 2024, the Company completed the public offering and issuance of $2.0 billion of senior notes, comprised of $750 million aggregate principal amount of 5.150% senior notes due in March 2027, $500 million aggregate principal amount of 5.350% senior notes due in March 2031 and $750 million aggregate principal amount of 5.450% senior notes due in March 2034. Interest on these senior notes is paid semi-annually. The Company used the net proceeds from this senior notes offering

for general corporate purposes, including the repayment of a portion of the Company’s commercial paper notes and for share repurchases, and in July 2024, the repayment of a portion of its 2.750% senior notes.

At March 31, 2025, the 3.850% senior notes due in June 2025 and 2.250% senior notes due in July 2025 were classified in the consolidated balance sheet as long-term, as the Company has the intent to refinance this debt on a long-term basis, and the ability to do so under its revolving credit facility.

The indentures governing the Company’s senior notes contain covenants that, among other matters, limit (i) the Company’s ability to consolidate or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, another person, (ii) the Company’s and certain of its subsidiaries’ ability to create or assume liens, and (iii) the Company’s and certain of its subsidiaries’ ability to engage in sale and leaseback transactions. The Company may, at its option, redeem the senior notes, in whole or in part, at any time and from time to time at the applicable redemption price.

Commercial Paper

The Company maintains unsecured U.S. dollar and Euro commercial paper programs. From time to time, the Company may issue under these programs U.S. dollar commercial paper with maturities of up to 397 days from the date of issuance and Euro commercial paper with maturities of up to 183 days from the date of issuance. Outstanding borrowings under the U.S. dollar program were $2.8 billion and $221 million at March 31, 2025 and December 31, 2024, respectively, with weighted average interest rates of 4.652% and 4.534%, respectively. Outstanding borrowings under the Euro program were $1.3 billion and $1.2 billion at March 31, 2025 and December 31, 2024, respectively, with weighted average interest rates of 2.584% and 3.115%, respectively. The Company intends to maintain available capacity under its revolving credit facility, as described below, in an amount at least equal to the aggregate outstanding borrowings under its commercial paper programs. Outstanding borrowings under the commercial paper programs are classified in the consolidated balance sheets as long-term as the Company has the intent to refinance this commercial paper on a long-term basis through the continued issuance of new commercial paper upon maturity, and the Company also has the ability to refinance such commercial paper under its revolving credit facility.

Revolving Credit Facility

The Company maintains a senior unsecured multicurrency revolving credit facility, which matures in June 2027 and provides for a maximum aggregate principal amount of availability of $6.0 billion. Borrowings under the credit facility bear interest at a variable base rate, determined by the term and currency of the borrowing, plus a specified margin based on the Company’s long-term debt rating. Outstanding borrowings under the revolving credit facility were $72 million and $115 million at March 31, 2025 and December 31, 2024, respectively, with a corresponding interest rate of 5.440% at both March 31, 2025 and December 31, 2024. The credit facility also requires the Company to pay a facility fee based on the aggregate commitments in effect under the agreement from time to time. The credit facility contains various restrictions and covenants that require the Company to, among other things, limit its consolidated indebtedness as of the end of each fiscal quarter to no more than 3.75 times the Company’s consolidated net income before interest, taxes, depreciation, amortization, non-cash charges and expenses and certain other adjustments during the period of four fiscal quarters then ended, subject to certain exceptions.

Foreign Lines of Credit

The Company maintains various short-term lines of credit and other borrowing arrangements with foreign banks and alliance partners primarily to fund merchant settlement advances associated with operations in Latin America. The following table provides a summary of the outstanding borrowings and weighted average interest rates of the Company’s foreign lines of credit and other borrowing arrangements by country:


	Outstanding Borrowings (in millions)				Weighted-Average Interest Rate
	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Argentina	$	554	$	597	33.407	%	38.470	%
Brazil	227		94		14.947	%	12.976	%
Uruguay	49		49		8.971	%	9.766	%
Other	26		44		2.662	%	3.984	%
Total	$	856	$	784	26.195	%	31.695	%

11. Redeemable Noncontrolling Interest

The minority partner in one of the Company’s merchant alliance joint ventures maintained a redeemable noncontrolling 1% interest which was presented outside of equity and carried at its estimated redemption value. The minority partner was entitled

to a contractually determined share of the entity’s income, and the joint venture agreement contained redemption features whereby the interest held by the minority partner was redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that was not solely within the Company’s control.

Effective June 2024, the Company and the merchant alliance joint venture minority partner mutually agreed to terminate the joint venture agreement on September 1, 2024. Under the provisions of the separation agreement, the Company redeemed the minority partner’s membership interest in exchange for a future distribution in 2025 of certain merchant contracts. The redeemable noncontrolling interest was adjusted to reflect the estimated redemption value, with a corresponding adjustment recorded to additional paid-in capital. Additionally, as the redeemable noncontrolling interest is now mandatorily redeemable, the Company’s obligation to satisfy the purchase of the interest has been reclassified as a current liability in the consolidated balance sheet (see Notes 8 and 9). The Company maintains an ongoing relationship with the former minority partner to provide processing and other support services following the termination of the joint venture agreement.

The following table presents a summary of the redeemable noncontrolling interest activity, prior to the September 2024 termination of the merchant alliance joint venture, during the three months ended March 31, 2024:


(In millions)
Balance at beginning of period	$	161
Distributions paid to redeemable noncontrolling interest	(7)
Share of income	6



Balance at end of period	$	160

12. Equity

The following tables provide changes in equity during the three months ended March 31, 2025 and 2024:


	Fiserv, Inc. Shareholders’ Equity

Three Months Ended March 31, 2025	Number of Shares		Amount
(In millions)	Common Shares	Treasury Shares	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Treasury Stock		Noncontrolling Interests		Total Equity

Balance at December 31, 2024	784	220	$	8	$	23,080	$	(1,413)	$	23,575	$	(18,182)	$	618	$	27,686
Net income									851				(3)		848


Other comprehensive income							226						17		243
Share-based compensation					124										124
Shares issued under stock plans		(2)			(383)						162				(221)
Purchases of treasury stock		10									(2,164)				(2,164)
Capital contribution from noncontrolling interest													5		5
Balance at March 31, 2025	784	228	$	8	$	22,821	$	(1,187)	$	24,426	$	(20,184)	$	637	$	26,521


	Fiserv, Inc. Shareholders’ Equity

Three Months Ended March 31, 2024	Number of Shares		Amount
(In millions)	Common Shares	Treasury Shares	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Treasury Stock				Total Equity
Noncontrolling Interests
Balance at December 31, 2023	784	190	$	8	$	23,103	$	(783)	$	20,444	$	(12,915)	$	651	$	30,508
Net income (1)									735				11		746
Distributions paid to noncontrolling interests (2)													(27)		(27)
Other comprehensive loss							(211)						(13)		(224)

Share-based compensation					86										86
Shares issued under stock plans		(2)			(328)						174				(154)
Purchases of treasury stock		10									(1,512)				(1,512)
Balance at March 31, 2024	784	198	$	8	$	22,861	$	(994)	$	21,179	$	(14,253)	$	622	$	29,423

(1)The total net income presented in equity for the three months ended March 31, 2024 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interest of $6 million not included in equity.

(2)The total distributions presented in equity for the three months ended March 31, 2024 excludes $7 million in distributions paid to redeemable noncontrolling interest not included in equity.

13. Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following:


(In millions)	Derivatives		Foreign Currency Translation		Pension Plans		Total

















Three Months Ended March 31, 2025
Balance at December 31, 2024	$	(79)	$	(1,327)	$	(7)	$	(1,413)
Other comprehensive income before reclassifications	2		220		—		222
Amounts reclassified from accumulated other comprehensive loss	4		—		—		4
Net current-period other comprehensive income	6		220		—		226
Balance at March 31, 2025	$	(73)	$	(1,107)	$	(7)	$	(1,187)

Three Months Ended March 31, 2024
Balance at December 31, 2023	$	(78)	$	(688)	$	(17)	$	(783)


Other comprehensive income (loss) before reclassifications (see Note 1)	1		(151)		(63)		(213)
Amounts reclassified from accumulated other comprehensive loss	2		—		—		2
Net current-period other comprehensive income (loss)	3		(151)		(63)		(211)

Balance at March 31, 2024	$	(75)	$	(839)	$	(80)	$	(994)

14. Share-Based Compensation

The Company recognized $124 million and $86 million of share-based compensation expense during the three months ended March 31, 2025 and 2024, respectively. The Company’s share-based compensation awards are typically granted in the first quarter of the year; however, grants may also occur throughout the year. At March 31, 2025, the total remaining unrecognized compensation cost for restricted stock units and awards and performance share units, net of estimated forfeitures, of $584 million is expected to be recognized over a weighted-average period of 2.1 years.

A summary of restricted stock unit, restricted stock award and performance share unit activity during the three months ended March 31, 2025 is as follows:


	Restricted Stock Units and Awards			Performance Share Units
	Shares (In thousands)	Weighted-Average Grant Date Fair Value		Shares (In thousands)	Weighted-Average Grant Date Fair Value
Units and awards - December 31, 2024	4,716	$	124.78	1,966	$	116.62

Granted	1,479	230.06		417	268.84
Forfeited	(56)	142.19		(100)	103.54
Vested	(2,093)	118.02		(409)	97.21
Units and awards - March 31, 2025	4,046	$	166.53	1,874	$	143.73

A summary of stock option activity during the three months ended March 31, 2025 is as follows:


	Shares (In thousands)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (In millions)
Stock options outstanding - December 31, 2024	1,586	$	89.65



Exercised	(597)	92.74
Stock options outstanding - March 31, 2025	989	$	87.79	3.80	$	132
Stock options exercisable - March 31, 2025	989	$	87.79	3.80	$	132

15. Income Taxes

The Company’s income tax provision and effective income tax rate were as follows:


	Three Months Ended March 31,
(In millions)		2025			2024
Income tax provision		$	190		$	153
Effective income tax rate		18.2		%	16.7		%

The income tax provision as a percentage of income before income taxes and loss from investments in unconsolidated affiliates was 18.2% and 16.7% for the three months ended March 31, 2025 and 2024, respectively. The effective income tax rate for both the three months ended March 31, 2025 and 2024 included discrete tax benefits from equity compensation.

Pursuant to provisions under the Inflation Reduction Act, the Company purchased transferable federal tax credits from various counterparties. Such federal tax credits were purchased at negotiated discounts, resulting in an income tax benefit during both the three months ended March 31, 2025 and 2024. Receivables associated with transferable federal tax credits are recorded within prepaid expenses and other current assets, and amounts owed to counterparties for the purchased credits are recorded within accounts payable and other current liabilities within the consolidated balance sheets at March 31, 2025 and December 31, 2024.

The Company’s potential liability for unrecognized tax benefits before interest and penalties was approximately $82 million at March 31, 2025. The Company believes it is reasonably possible that the liability for unrecognized tax benefits may decrease by up to $5 million over the next twelve months as a result of possible closure of tax audits, audit settlements, and the lapse of the statutes of limitations in various jurisdictions.

As of March 31, 2025, the Company’s U.S. federal income tax returns for 2023 and 2024, and tax returns in certain states and foreign jurisdictions for 2017 through 2024, remain subject to examination by taxing authorities.

16. Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc.

The computation of shares used in calculating basic and diluted net income per share is as follows:


	Three Months Ended March 31,
(In millions)		2025	2024
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - basic		561.3	590.9
Common stock equivalents		3.4	3.9
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - diluted		564.7	594.8

For the three months ended March 31, 2025 and 2024, restricted stock units for 688 thousand and 38 thousand shares, respectively, were excluded from the calculation of weighted-average outstanding shares - diluted because their impact was anti-dilutive.

17. Cash Flow Information

Supplemental cash flow information consisted of the following:


	Three Months Ended March 31,
(In millions)	2025		2024
Interest paid	$	454	$	335
Net income taxes paid	727		700
Treasury stock purchases settled after the balance sheet date	39		47

Software obtained under financing arrangements	513		96
Hardware obtained under financing arrangements	70		—
Right-of-use assets obtained in exchange for lease liabilities - operating leases	23		33
Right-of-use assets obtained in exchange for lease liabilities - finance leases	214		58

18. Commitments and Contingencies

Litigation Matters

In the normal course of business, the Company or its subsidiaries are named as defendants in lawsuits in which claims are asserted against the Company. The Company maintained an accrual of $32 million and $43 million at March 31, 2025 and December 31, 2024, respectively, related to its various legal proceedings. The Company’s estimate of the possible range of exposure for various legal proceedings in excess of amounts accrued is $0 million to approximately $120 million. In the opinion of management, the liabilities, if any, which may ultimately result from such legal proceedings are not expected to have a material adverse effect on the Company’s consolidated financial statements.

Electronic Payments Transactions

In connection with the Company’s processing of electronic payments transactions, which are separate and distinct from the settlement payment transactions described in Note 1, funds received from subscribers are invested from the time the Company collects the funds until payments are made to the applicable recipients. These subscriber funds are invested in short-term, highly liquid investments. Subscriber funds, which are not included in the Company’s consolidated balance sheets, can fluctuate significantly based on consumer bill payment and debit card activity and totaled $755 million and $1.3 billion at March 31, 2025 and December 31, 2024, respectively.

Indemnifications and Warranties

The Company may indemnify its clients from certain costs resulting from claims of patent, copyright or trademark infringement associated with its clients’ use of the Company’s products or services. The Company may also warrant to clients that its products and services will operate in accordance with identified specifications. From time to time, in connection with sales of businesses, the Company agrees to indemnify the buyers of such businesses for liabilities associated with the businesses that are sold. Payments, net of recoveries, under such indemnification or warranty provisions were not material to the Company’s consolidated financial statements.

19. Related Party Transactions

Merchant Alliances

A portion of the Company’s business is conducted through merchant alliances between the Company and certain financial institutions (see Note 6). A merchant alliance is an agreement between the Company and a financial institution that combines the processing capabilities and management expertise of the Company with the visibility and distribution channel of the financial institution. A merchant alliance acquires credit and debit card transactions from merchants. The Company provides processing and other services to the alliance and charges fees to the alliance based on contractual pricing.

To the extent the Company maintains a controlling financial interest in an alliance, the alliance’s financial statements are consolidated with those of the Company and the related processing fees are treated as an intercompany transaction and eliminated in consolidation. To the extent the Company has significant influence in, but not control of, an alliance, the Company uses the equity method to account for its investment in the alliance. As a result, the processing and other service fees charged to merchant alliances accounted for under the equity method are recognized in the Company’s consolidated statements of income primarily as processing and services revenue. Such fees totaled $32 million and $40 million for the three months

ended March 31, 2025 and 2024, respectively. No directors or officers of the Company have ownership interests in any of the alliances. The formation of each of these alliances generally involves the Company and the financial institution contributing contracts with merchants to the alliance and a cash payment from one owner to the other to achieve the desired ownership percentage for each. The Company and the financial institution enter into a long-term processing service agreement, which governs the Company’s provision of transaction processing services to the alliance. The Company had approximately $28 million and $21 million of amounts due from unconsolidated merchant alliances included within trade accounts receivable, net in the Company’s consolidated balance sheets at March 31, 2025 and December 31, 2024, respectively.

20. Business Segment Information

The Company’s operations are comprised of two reportable segments, the Merchant segment and the Financial segment. The businesses in the Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; and pay-by-bank solutions. The business lines (operating segments) aggregated within the Merchant segment consist of the following:

*•*Small Business – provides products and services to small businesses and independent software vendors, including Clover®, the Company’s POS and business management platform for small business clients

*•*Enterprise – provides products and services to large businesses, including the Company’s integrated omnichannel operating system for enterprise clients

*•*Processing – provides products and services to financial institutions, joint ventures, and other third party resellers which have direct relationships with merchants

The Company distributes the products and services in the Merchant segment businesses through a variety of channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions and other strategic partners in the form of joint venture alliances, revenue sharing alliances and referral agreements.

The businesses in the Financial segment provide products and services to financial institution, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The business lines (operating segments) aggregated within the Financial segment consist of the following:

*•*Digital Payments – provides debit card processing services; debit network services; security and fraud protection products; bill payment; person-to-person payments; and account-to-account transfers

*•*Issuing – provides credit card processing services; prepaid card processing services; card production services; print services; government payment processing; and student loan processing

*•*Banking – provides customer loan and deposit account processing; digital banking; financial and risk management; professional services and consulting; and check processing

Corporate and Other supports the reportable segments described above, and consists of amortization of acquisition-related intangible assets, unallocated corporate expenses and other activities that are not considered when management evaluates segment performance, such as gains or losses on sales of businesses, certain assets or investments; costs associated with acquisition and divestiture activity; certain services revenue associated with various dispositions; and postage reimbursements.

The Company’s Chief Executive Officer, who is also the Company’s CODM, assesses segment performance and makes strategic decisions on the allocation of resources. Additionally, the Company’s Chief Executive Officer provides oversight on business leadership and corporate strategy to the executive leadership team, who manages the day to day operations of the various business lines.

The CODM uses reportable segment operating income to evaluate segment performance and allocate resources, primarily during the annual budget and forecasting processes. The CODM regularly reviews variances between forecasted and actual results in assessing earnings, operational efficiency and growth performance, and allocating resources including personnel and capital allocations, to each reportable segment. There are no intersegment revenues contained within the respective reportable segment revenues.

Operating results for each reportable segment were as follows:


	Reportable Segments
(In millions)	Merchant		Financial		Total
Three Months Ended March 31, 2025
Revenues:
Processing and services revenue	$	2,053	$	1,992
Product revenue	319		425
Reportable segment revenue	$	2,372	$	2,417	$	4,789
Corporate and Other revenue (1)					341
Total Company revenue					$	5,130
Expenses:
Personnel expenses (2)	330		498
Direct costs (3)	823		189
Depreciation and amortization expense	96		122
Other operating expense (4)	147		88
Allocations from Corporate and Other (5)	166		372

Reportable segment operating income	$	810	$	1,148	$	1,958
Corporate and Other operating loss (6)					(563)

Interest expense, net					(331)
Other expense, net (7)					(18)
Income before income taxes and loss from investments in unconsolidated affiliates					$	1,046


	Reportable Segments
(In millions)	Merchant		Financial		Total





















Three Months Ended March 31, 2024
Revenues:
Processing and services revenue	$	2,010	$	1,985
Product revenue	243		300
Reportable segment revenue	$	2,253	$	2,285	$	4,538
Corporate and Other revenue (1)					345
Total Company revenue					$	4,883
Expenses:
Personnel expenses (2)	356		488
Direct costs (3)	731		176
Depreciation and amortization expense	89		112
Other operating expense (4)	151		107
Allocations from Corporate and Other (5)	157		394

Reportable segment operating income	$	769	$	1,008	$	1,777
Corporate and Other operating loss (6)					(596)

Interest expense, net					(261)
Other expense, net (7)					(7)
Income before income taxes and loss from investments in unconsolidated affiliates					$	913

(1)Primarily includes postage reimbursements.

(2)Includes compensation and benefit costs of Company employees, as well as expenses paid to third parties for consulting and

temporary help, net of capitalized software costs.

(3)Includes cost of goods sold, payments to distribution partners and other reselling costs.

(4)Includes data processing, facility, and marketing costs that are directly charged to the reportable segments.

(5)Represents centrally-managed costs, including sales, technology and administrative expenses, that are allocated to the reportable segments from Corporate and Other and are considered in the CODM’s evaluation of segment performance.

(6)Includes amortization of acquisition-related intangible assets; costs associated with acquisition and divestiture activity; unallocated corporate expenses; and gains or losses on sales of businesses.

(7)Includes foreign currency transaction gains and losses, gains or losses from a sale or change in fair value of investments in certain equity securities, and amounts related to debt guarantee arrangements of certain equity method investments.

Other significant items include:


	Three Months Ended March 31,
(In millions)	2025		2024
Depreciation and amortization:
Merchant (1)	$	112	$	102
Financial (1)	163		152
Corporate and Other (2)	504		531
Total Company	$	779	$	785

Capital expenditures, including capitalized software and other intangibles:
Merchant	$	95	$	145
Financial	145		137
Corporate and Other	95		138
Total Company	$	335	$	420

(1)Includes amortization associated with commissions, residual buyouts and deferred conversion costs included within personnel expenses, direct costs and other operating expenses, respectively, in the segment operating results tables above.

(2)Primarily includes amortization of acquisition-related intangible assets, such as customer relationships, software/technology and trade names.

The Company does not evaluate the performance of or allocate resources to its reportable segments using asset data.

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