0001794669-26-000020
SEC filingRevenue surged 32% YoY to $1.12B, driven by Global Blue acquisition and volume growth, while adjusted EBITDA grew 39% to $234M.
For the three months ended March 31, 2026, Shift4 Payments reported gross revenue of $1,121 million, a 32% increase from $848 million in the prior-year period. The growth was primarily driven by the acquisition of Global Blue (contributing $102 million in TFS revenue) and a 24% increase in payment volume to $56 billion. Payments-based revenue rose 21% to $917 million, while subscription and other revenue grew 11% to $102 million.
Gross profit (as defined) reached $370 million, up 54% from $241 million, reflecting a 33.0% gross margin versus 28.4% a year ago. The improvement was driven by favorable mix from higher-margin TFS revenue and operating leverage. Network fees increased 19% to $572 million, in line with payments revenue growth. Other costs of sales rose 40% to $157 million, primarily from acquisitions and residual commissions.
Operating expenses increased significantly: G&A grew 41% to $216 million due to acquisitions and growth investments, depreciation and amortization rose 68% to $94 million from intangibles and leased equipment, and professional fees increased 11% to $21 million. Despite this, income from operations doubled to $50 million.
Below the line, interest expense more than doubled to $65 million due to debt incurred for the Global Blue acquisition. A $24 million income tax benefit, largely from a discrete item related to Simplification Transactions, resulted in net income of $12 million. Net income attributable to Shift4 Payments was $15 million, down from $17 million in Q1 2025.
Payments-based revenue remains the core, growing 21% YoY on volume growth and acquisitions. However, the TFS segment, entirely new from Global Blue, contributed $102 million, accounting for 9% of total revenue. Subscription and other revenue grew 11%, also acquisition-driven. The mix shift toward TFS and higher-margin subscription revenue helped expand gross margins.
Management did not provide specific quantitative guidance but expressed confidence in liquidity and compliance with debt covenants for at least 12 months. Key strategic priorities include integrating recent acquisitions (Global Blue and Bambora), managing the debt load, and continuing share repurchases ($400 million remaining under the program). The Simplification Transactions eliminated future TRA payments and simplified the corporate structure, which may benefit future cash flows. However, geopolitical tensions and travel disruptions are cited as potential headwinds.
As of March 31, 2026, Shift4 Payments held $473 million in cash and cash equivalents, a decline from $964 million at year-end 2025, primarily due to buybacks and distributions. Total debt stood at $4.522 billion (carrying value), including $633 million in 0.90% convertible notes due 2027, $1.65 billion in 6.75% senior notes due 2032, $1.283 billion in 5.50% euro notes due 2033, and $997 million in term loan B due 2032. The company’s net leverage is high but manageable given its cash flow from operations of $134 million in Q1 2026. Shareholders’ equity was $1.770 billion, boosted by the Up-C Collapse simplification transactions that reclassified $385 million of noncontrolling interest to additional paid-in capital.
No material purchase commitments or long-term supply agreements were disclosed in the Notes. The company’s primary contractual obligations are its debt, with future principal payments of $7 million in 2026, $643 million in 2027, and $10 million annually from 2028-2030, with $3.883 billion thereafter. Additionally, the company has a $125 million settlement line credit agreement, with $100 million drawn as of March 31, 2026, netted against deposits.
During Q1 2026, Shift4 repurchased 5.485 million shares of Class A common stock for $295 million at an average price of $53.82 per share. The November 2025 program authorizes up to $1 billion in repurchases through December 2026, with $400 million remaining. The company paid $15 million in cash dividends on its Series A Mandatory Convertible Preferred Stock (6.00% annual rate). Capital expenditures totaled $68 million, consisting of $32 million for leased equipment, $30 million for capitalized software development, and $6 million for property, plant, and equipment. Debt principal decreased by $26 million net, and the company amended its credit facility to reduce interest margins.
The company operates as a single reportable segment, with the CODM evaluating performance based on consolidated net income. Revenue is disaggregated as payments-based ($917 million), TFS ($102 million, from Global Blue acquisition), and subscription & other ($102 million). International exposure is primarily through Global Blue’s TFS operations and the euro-denominated debt hedge. Noncontrolling interests in Global Blue subsidiaries, mainly in Japan (49% owned), represent $117 million in carrying value.