Shift4 Payments(FOUR) - 2025 Q1 - Quarterly Report

Financial Performance - Gross revenue for Q1 2025 was $848.3 million, a 19.8$707.4 million in Q1 2024[18] - Net income attributable to Shift4 Payments, Inc. for Q1 2025 was $16.7 million, down from$20.6 million in Q1 2024, representing a 19% decrease[18] - Comprehensive income attributable to Shift4 Payments, Inc. for Q1 2025 was $42.3 million, significantly up from$10.0 million in Q1 2024[20] - Net income for Q1 2025 was $19.5 million, a decrease of 31.6$28.5 million in Q1 2024[23] - Operating cash flow decreased to $96.6 million in Q1 2025 from$115.0 million in Q1 2024, reflecting a decline of 16.5%[23] - Payments-based revenue increased to $755.7 million in Q1 2025 from$655.1 million in Q1 2024, reflecting a growth of about 15.3%[66] - Subscription and other revenues rose significantly to $92.6 million in Q1 2025, compared to$52.3 million in Q1 2024, marking an increase of approximately 76.8%[66] Expenses and Liabilities - The company reported a cost of sales of $591.3 million in Q1 2025, compared to$519.6 million in Q1 2024, reflecting a 13.8% increase[18] - Depreciation and amortization increased to $85.2 million in Q1 2025, up from$66.1 million in Q1 2024, representing a rise of 28.5%[23] - Equity-based compensation expense increased to $26.0 million in Q1 2025 from$22.8 million in Q1 2024, an increase of 14.0%[23] - The TRA liability was $362.6 million as of March 31, 2025, slightly down from$365.5 million at the end of 2024[29] - Total liabilities as of March 31, 2025, included a Tax Receivable Agreement (TRA) liability of $362.6 million, slightly down from$365.5 million at the end of 2024[29] Cash and Investments - Cash and cash equivalents at the end of Q1 2025 were $1,384.3 million, down from$1,438.6 million at the end of Q4 2024, a decrease of 3.8%[36] - Net cash used in investing activities rose to $85.0 million in Q1 2025 compared to$39.7 million in Q1 2024, indicating a significant increase of 114.1%[23] - The company reported a gain on investments in securities of $(0.3) million in Q1 2025, compared to a loss of$(11.0) million in Q1 2024[23] Acquisitions - The company completed the acquisition of Eigen Payments for a total purchase consideration of $115.0 million, net of cash acquired[41] - The company completed the acquisition of Givex Corp. for a total purchase consideration of$127.8 million, net of cash acquired[47] - The acquisition of Vectron Systems AG involved a total purchase consideration of $62.7 million, net of cash acquired, with the company owning approximately 75$245.3 million, net of cash acquired, enhancing the company's presence in the restaurant and retail markets[60] Stockholder Equity - The total stockholders' equity as of March 31, 2025, was $1,016.0 million, slightly down from$1,017.7 million at the end of 2024[21] - The company repurchased and retired 686,177 shares of Class A common stock, resulting in a reduction of $63.4 million in equity[21] - The company recognized equity-based compensation expense of$26.0 million for the three months ended March 31, 2025, compared to $22.8 million for the same period in 2024, reflecting an increase of approximately 14.0$2,843.5 million, with a current portion of $687.8 million and long-term debt of$2,155.7 million[78] - The company has a $450.0 million senior secured revolving credit facility, with no borrowings as of March 31, 2025[84] - Future principal payments on the company's debt total$2,872.5 million, with $690.0 million due in 2025[81] - The company entered into a commitment letter for a 364-day bridge loan facilities totaling$1.795 billion, consisting of a $1.0 billion senior secured bridge loan and a$795.0 million senior unsecured bridge loan[86] Tax and Compliance - The Company's effective tax rate for the three months ended March 31, 2025, was (71)%, significantly different from the federal statutory rate of 21% due to noncontrolling interest allocations[99] - The Company was in compliance with all financial covenants under its debt agreements as of March 31, 2025[89] Other Financial Metrics - The company experienced a change in TRA liability resulting in a gain of $3.0 million in Q1 2025, compared to a loss of$1.2 million in Q1 2024[18] - The effect of exchange rate changes on cash and cash equivalents resulted in a gain of $14.8 million in Q1 2025, compared to a loss of$(6.5) million in Q1 2024[23] - The company did not have any single customer accounting for more than 10% of its revenue during the reported periods, indicating a diversified customer base[130]