Financial Analysis

"ACQUISITIONS EVO Payments, Inc. In March 2023, we acquired all of the outstanding common stock of EVO Payments, Inc. (EVO). EVO is a payment technology and services provider, offering payment solutions to merchants ranging from small and middle market enterprises to multinational companies and organizations across the Americas and Europe. The acquisition aligns with our technology-enabled payments strategy, expands our geographic presence in attractive markets and augments our business-to-business software and payment solutions business. Total purchase consideration of $4.3 billion consisted of the following (in thousands): Cash paid to EVO shareholders (1) $ 3,273,951 Cash paid for equity awards attributable to purchase consideration (2) 58,510 Value of replacement awards attributable to purchase consideration (3) 2,484 Total purchase consideration transferred to EVO shareholders 3,334,945 Repayment of EVO's unsecured revolving credit facility (including accrued interest and fees) 665,557 Payment of certain acquiree transaction costs and other liabilities on behalf of EVO (4) 269,118 Total purchase consideration $ 4,269,620 (1) Holders of EVO common stock, convertible preferred stock and common units received $34 for each share of EVO common stock held at the effective time of the transaction. (2) Pursuant to the merger agreement, we cash settled vested options and certain unvested equity awards of EVO equity award holders. (3) Pursuant to the merger agreement, we granted e …

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"COMMITMENTS AND CONTINGENCIES Purchase Obligations We have contractual obligations related to service arrangements with suppliers for fixed or minimum amounts. Future minimum payments at December 31, 2025 for purchase obligations were as follows (in thousands): Year ending December 31: 2026 $ 268,798 2027 169,623 2028 139,099 2029 127,075 2030 138,879 2031 and thereafter 1,000 Total future minimum payments $ 844,474 In addition, for certain business combinations and other acquisitions completed in 2025, consideration of $131.6 million is payable in 2026 and $32.2 million is payable in 2027. Legal Matters We are party to a number of claims and lawsuits incidental to our business. In our opinion, the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, are not expected to have a material adverse effect on our financial position, liquidity, results of operations or cash flows. Operating Taxes We are subject to certain taxes that are not derived based on earnings (e.g., sales, gross receipts, property, value-added and other business taxes). During the course of operations, we must interpret the meaning of various operating tax regulations in the United States and in the foreign jurisdictions in which we do business. We are subject to ongoing audits in certain jurisdictions, and taxing authorities in those various jurisdictions may arrive at different interpretations of applicable tax laws and regulations which could …

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"LONG-TERM DEBT AND LINES OF CREDIT As of December 31, 2025 and 2024, long-term debt consisted of the following: December 31, 2025 December 31, 2024 (in thousands) Long-term Debt 2.650% senior notes due February 15, 2025 $ $ 999,791 1.200% senior notes due March 1, 2026 1,099,681 1,097,764 4.800% senior notes due April 1, 2026 752,825 764,125 2.150% senior notes due January 15, 2027 748,697 747,447 4.950% senior notes due August 15, 2027 498,406 497,425 4.450% senior notes due June 1, 2028 460,619 465,012 4.500% senior notes due November 15, 2028 1,738,918 3.200% senior notes due August 15, 2029 1,244,291 1,242,715 5.300% senior notes due August 15, 2029 497,462 496,762 2.900% senior notes due May 15, 2030 994,879 993,708 4.875% senior notes due November 15, 2030 1,685,351 2.900% senior notes due November 15, 2031 745,072 744,233 5.400% senior notes due August 15, 2032 744,552 743,730 5.200% senior notes due November 15, 2032 990,181 5.550% senior notes due November 15, 2035 1,730,061 4.150% senior notes due August 15, 2049 741,572 741,215 5.950% senior notes due August 15, 2052 739,374 738,975 4.875% senior notes due March 17, 2031 932,686 820,952 1.000% convertible senior notes due August 15, 2029 1,470,029 1,461,761 1.500% convertible senior notes due March 1, 2031 1,975,407 1,970,577 Revolving credit facility 1,515,000 1,500,000 Finance lease liabilities 21,267 10,921 Other borrowings 135,974 60,667 Total long-term debt 21,462,304 16,097,780 Less current portion 1,920,792 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents a disaggregation of our revenues from contracts with customers by geography for our Merchant Solutions segment for the years ended December 31, 2025, 2024 and 2023. Revenues from our Consumer Solutions segment were solely affiliated with the Americas. Years Ended December 31, 2025 2024 2023 (in thousands) Americas $ 6,143,825 $ 6,279,160 $ 5,893,573 Europe 1,280,865 1,197,098 1,042,532 Asia Pacific 281,188 259,712 260,939 $ 7,705,878 $ 7,735,970 $ 7,197,044 The following table presents a disaggregation of our Merchant Solutions segment revenues by service line for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (in thousands) Point-of-Sale and Software Solutions $ 1,321,636 $ 1,512,488 $ 1,395,553 Integrated and Embedded Solutions 3,407,539 3,195,898 2,968,818 Core Payments Solutions 2,976,703 3,027,584 2,832,673 $ 7,705,878 $ 7,735,970 $ 7,197,044

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"SHARE-BASED AWARDS AND OPTIONS We have granted nonqualified stock options, restricted stock and performance unit awards to key employees, officers and directors under a long-term incentive plan, which permits grants of equity to employees, officers, directors and consultants. A total of 14.0 million shares of our common stock has been reserved and made available for issuance pursuant to awards granted under the 2011 Amended and Restated Incentive Plan. In addition, a total of 12.6 million shares (subject to adjustment of one share less for every one award granted share under the 2011 Amended and Restated Plan after December 31, 2024 and prior to April 24, 2025), of our common stock has been reserved and made available for issuance pursuant to awards granted under the 2025 Incentive Plan. The following table summarizes share-based compensation expense and the related income tax benefit recognized for our share-based awards and stock options: Years Ended December 31, 2025 2024 2023 (in thousands) Share-based compensation expense from continuing operations $ 121,131 $ 137,769 $ 178,138 Share-based compensation expense from discontinued operations 32,516 26,475 30,856 Total share-based compensation expense $ 153,647 $ 164,244 $ 208,994 Total income tax benefit $ 35,950 $ 35,528 $ 48,446 The following discussion of our share-based compensation awards includes awards related to continuing and discontinued operations. Restricted Stock Restricted stock awards vest in approximately e …

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GOODWILL AND OTHER INTANGIBLE ASSETS As of December 31, 2025 and 2024, goodwill and other intangible assets consisted of the following: 2025 2024 (in thousands) Goodwill $ 17,076,624 $ 17,027,574 Other intangible assets: Customer-related intangible assets $ 5,536,591 $ 5,175,699 Acquired technologies 1,918,713 1,980,161 Contract-based intangible assets 2,313,160 2,192,335 Trademarks and trade names 479,405 478,155 10,247,869 9,826,350 Less accumulated amortization: Customer-related intangible assets 3,361,512 2,893,043 Acquired technologies 1,630,830 1,496,735 Contract-based intangible assets 584,392 407,496 Trademarks and trade names 439,908 414,904 6,016,642 5,212,178 $ 4,231,227 $ 4,614,172 The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the years ended December 31, 2025, 2024 and 2023: Merchant Solutions (in thousands) Balance at December 31, 2022 $ 14,066,987 Goodwill acquired (1) 3,283,285 Effect of foreign currency translation 126,835 Measurement-period adjustments (237) Balance at December 31, 2023 17,476,870 Goodwill acquired 193,252 Effect of foreign currency translation (223,564) Goodwill derecognized in connection with the sale of a business (2) (438,911) Measurement-period adjustments 19,927 Balance at December 31, 2024 17,027,574 Goodwill acquired 186,025 Effect of foreign currency translation 372,350 Goodwill derecognized in connection with the sale of a business (3) (479,577) Impairment of goodwill (33,21 …

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INCOME TAX The income tax expense for the years ended December 31, 2025, 2024 and 2023 consisted of the following: Years Ended December 31, 2025 2024 2023 (in thousands) Current income tax expense (benefit): Federal $ 282,092 $ 289,893 $ 290,887 State 73,817 60,358 78,459 Foreign 179,523 191,762 196,384 535,432 542,013 565,730 Deferred income tax expense (benefit): Federal (174,619) (192,569) (253,489) State (10,388) (36,605) (38,131) Foreign (98,868) (71,326) (87,593) (283,875) (300,500) (379,213) $ 251,557 $ 241,513 $ 186,517 Income tax expense allocated to noncontrolling interests was $14.9 million, $15.4 million and $11.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. The following table presents income (loss) before income taxes for the years ended December 31, 2025, 2024 and 2023: Years Ended December 31, 2025 2024 2023 (in thousands) United States $ 884,390 $ 1,004,292 $ 251,396 Foreign 375,729 526,024 530,266 $ 1,260,119 $ 1,530,316 $ 781,662 Approximately $66.7 million of our undistributed foreign earnings are considered to be indefinitely reinvested outside the United States as of December 31, 2025. Because those earnings are considered to be indefinitely reinvested, no deferred income taxes have been provided thereon. If we were to make a distribution of any portion of those earnings in the form of dividends or otherwise, any such amounts would be subject to withholding taxes payable to various foreign jurisdictions; however, the amount …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES Our leases consist primarily of operating real estate leases for office space and data centers in the markets in which we conduct business. We also have operating and finance leases for computer and other equipment. Many of our leases include escalating rental payments and incentives, as well as termination and renewal options. Certain of our lease agreements provide that we pay the cost of property taxes, insurance and maintenance. As of December 31, 2025 and 2024, right-of-use assets and lease liabilities consisted of the following: Balance Sheet Location December 31, 2025 December 31, 2024 (in thousands) Assets: Operating lease right-of-use assets: Real estate Other noncurrent assets $ 250,323 $ 247,386 Other Other noncurrent assets 32 116 Total operating lease right-of-use-assets $ 250,355 $ 247,502 Finance lease right-of-use assets: Computer equipment Property and equipment, net $ 259 $ 244 Other equipment Property and equipment, net 90,174 52,365 90,433 52,609 Less accumulated depreciation: Computer equipment Property and equipment, net (212) (87) Other equipment Property and equipment, net (53,847) (39,021) Total accumulated depreciation (54,059) (39,108) Total finance lease right-of-use assets 36,374 13,501 Total right-of-use assets (1) $ 286,729 $ 261,003 Liabilities: Operating lease liabilities (current) Accounts payable and accrued liabilities $ 58,065 $ 59,820 Operating lease liabilities (noncurrent) Other noncurrent liabilities 305,797 330,206 Finance leas …

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"Recently adopted accounting pronouncements Accounting Standards Update (""ASU"") 2023-09 - In December 2023, the Financial Accounting Standards Board (""FASB"") issued ASU 2023-09, ""Income Taxes (Topic 740): Improvement to Income Tax Disclosures,"" which is intended to enhance the transparency and decision usefulness of income tax information through improvements to income tax disclosures, primarily related to the rate reconciliation and information regarding income taxes paid. We adopted ASU 2023-09 effective December 31, 2025 and applied it retrospectively to all periods presented in the financial statements. The adoption resulted in expanded disclosures of the components of the reconciliation between income tax expense and statutory expectations as well as expanded disclosures of income taxes paid. See ""Note 12Income Tax"" for further information. Recently issued accounting pronouncement not yet adopted ASU 2025-09 - In November 2025, the FASB issued ASU 2025-09, ""Derivatives and Hedging (Topic 815) Hedge Accounting Improvements,"" which provides improvements to the guidance for five specific matters: (i) similar risk assessment for cash flow hedges, (ii) hedging interest payments on choose-your-rate debt, (iii) cash flow hedges of nonfinancial forecasted transactions, (iv) net written options as hedging instruments, and (v) foreign currency denominated debt instrument designated hedges. The amendments in this update are effective for annual periods beginning after Dec …

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REVENUES The following table presents a disaggregation of our revenues from contracts with customers by geography for our Merchant Solutions segment for the years ended December 31, 2025, 2024 and 2023. Revenues from our Consumer Solutions segment were solely affiliated with the Americas. Years Ended December 31, 2025 2024 2023 (in thousands) Americas $ 6,143,825 $ 6,279,160 $ 5,893,573 Europe 1,280,865 1,197,098 1,042,532 Asia Pacific 281,188 259,712 260,939 $ 7,705,878 $ 7,735,970 $ 7,197,044 In our Merchant Solutions segment, we actively market and provide our payment services, software and other commerce enablement solutions directly to our customers and through a variety of distribution channels across three service lines: Point-of-Sale and Software Solutions, Integrated and Embedded Solutions and Core Payments Solutions. Our Point-of-Sale and Software Solutions business provides advanced payments technology that is integrated into point-of-sale systems and business management software solutions that we own. Our Integrated and Embedded Solutions business provides e-commerce solutions, advanced payments technology and commerce enablement solutions that is embedded into business management software solutions owned by our technology partners who operate in numerous vertical markets and countries. Our Core Payments Solutions business provides payments technology services and other commerce enablement solutions directly to customers across numerous verticals in the markets we …

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"SEGMENT INFORMATION Information About Profit and Assets We report the results of our Issuer Solutions business as a discontinued operation and therefore, no longer present Issuer Solutions as a reportable segment. Segment information presented below is based on our Merchant Solutions reportable segment. See ""Note 3Business Dispositions and Discontinued Operations"" for further discussion regarding the divestiture of our Issuer Solutions business. As described in ""Note 3Business Dispositions and Discontinued Operations,"" during the second quarter of 2023, we completed the sale of the consumer portion of our Netspend business, which comprised our former Consumer Solutions segment. Our former Consumer Solutions segment is presented below for periods prior to disposition. Our Merchant Solutions payment technology is similar around the world in that we enable our customers to accept card and other digital-based payments. Through this segment, our offerings include, but are not limited to, authorization, settlement and funding services, customer support, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and on-line reporting. In addition, we offer a wide array of enterprise software solutions that streamline business operations to customers in numerous vertical markets. We also provide a variety of value-added solutions and services, including specialty point-of-sale software, analytics and customer engagement, human c …

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"BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business, consolidation and presentation - We are a leading payments technology company delivering innovative software and services to our customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world. Global Payments Inc. and its consolidated subsidiaries are referred to herein collectively as ""Global Payments,"" the ""Company,"" ""we,"" ""our"" or ""us,"" unless the context requires otherwise. On January 9, 2026, we acquired 100% of Worldpay Holdco, LLC (Worldpay) from Fidelity National Information Services, Inc. (FIS) and affiliates of GTCR LLC (GTCR) and divested our Issuer Solutions business to FIS. Worldpay is an industry-leading payments technology and solutions company. The transaction simplifies our business model and positions Global Payments as a leading pure play commerce solutions provider for merchants of all sizes with extensive global scale. Consideration paid to GTCR for its ownership interest in Worldpay consisted of (1) approximately $6.2 billion in cash and (2) 43.3 million shares of Global Payments common stock. Consideration received for the divestiture of our Issuer Solutions business consisted of (1) approximately $7.7 billion in cash and (2) FIS ownership interest in Worldpay. The acquisition of Worldpay and d …

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"SHAREHOLDERS EQUITY We repurchase our common stock mainly through open market repurchase plans and, at times, through accelerated share repurchase (""ASR"") programs. Information about shares repurchased and retired was as follows for the years ended December 31, 2025, 2024 and 2023: Years Ended December 31, 2025 2024 2023 (in thousands, except per share amounts) Number of shares repurchased and retired 13,171 12,730 4,065 Cost of shares repurchased, including commissions and applicable excise taxes $ 1,185,280 $ 1,565,688 $ 413,667 Average cost per share $ 89.99 $ 123.00 $ 101.77 The share repurchase activity for the year ended December 31, 2025 included the repurchase of 5,909,656 shares at an average price of $84.61 per share under an ASR agreement we entered into on August 6, 2025 with a financial institution to repurchase an aggregate of $500.0 million of our common stock during the ASR program purchase period. This ASR program was completed on September 26, 2025. The share repurchase activity for the year ended December 31, 2025 also included the repurchase of 2,449,366 shares at an average price of $102.07 per share under an ASR agreement we entered into on February 13, 2025 with a financial institution to repurchase an aggregate of $250.0 million of our common stock during the ASR program purchase period. This ASR program was completed on March 11, 2025. The share repurchase activity for the year ended December 31, 2024 included the repurchase of 1,414,759 shares usi …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing