FOUR — Shift4 Payments, Inc.

Shift4 Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Gross revenue reached $1.12 billion, a 32% year-over-year increase.
• Gross revenue less network fees (GRLNF) was $549 million, growing 49% year-over-year.
• Adjusted EBITDA rose to $234 million, a 39% increase, with a margin of 43%.
• Adjusted free cash flow was $88 million, up 26% year-over-year.
• Organic GRLNF growth, excluding acquisitions, was 11%.
• Total payment-based revenue less network fees grew 25%, with Americas revenue up 15% and worldwide revenue up 51%.

2. Strategic Updates and Business Highlights:

• Shift4 is focused on international expansion, with the new Shift4 One product being launched in 7 countries, aiming for 15 by year-end.
• The company signed several luxury retailers, enhancing its tax-free shopping offering.
• The integration of Global Blue is progressing well, providing local infrastructure and talent in key markets.
• Shift4 is rebranding its SkyTab POS to Shift4 Dine, reflecting its stronger brand identity.
• The company is leveraging AI to improve operational efficiency and speed up product delivery.

3. Forward Guidance and Outlook:

• Full-year guidance for GRLNF growth remains unchanged at 26% to 31%.
• For Q2 2026, guidance includes GRLNF of $615 million, adjusted EBITDA of $278 million, and $10 million in adjusted free cash flow.
• The company anticipates ongoing travel disruptions from the Middle East conflict, estimating a $20 million impact on Q2 results.

4. Bad News, Challenges, or Points of Concern:

• The ongoing conflict in the Middle East is affecting inbound travel, which has a direct impact on the tax-free shopping segment, with an estimated $4 million to $6 million headwind in Q1.
• Same-store sales trends in the restaurant sector remain soft, with a neutral outlook for the full year.
• The company does not expect a dramatic recovery in the second half of the year, reflecting cautious optimism amid a challenging macro environment.

5. Notable Q&A Insights:

• Shift4's competitive strategy involves a robust direct sales force of approximately 300 in the U.S. and expanding international presence.
• The company views partnerships with delivery platforms like DoorDash as opportunities rather than threats, emphasizing a collaborative approach.
• The tax-free shopping business has shown resilience despite geopolitical disruptions, with a notable performance from U.S. consumers traveling to Europe.
• AI is being integrated across various departments to enhance efficiency and speed in operations, with a focus on improving workflows in HR and legal functions.

Overall, Shift4 demonstrated strong financial performance in Q1 2026, with significant growth in revenue and EBITDA, while navigating challenges related to geopolitical events and market conditions. The company remains focused on strategic expansion and operational improvements, although it faces headwinds in certain segments.