UPPER SAUCON TWP., Pa.- Shift4 is feeling good about its balance sheet, but it’s also feeling underappreciated in its valuation, so the payment processing company based in Lehigh County intends to do something about it.<\/p>\n
On Thursday, CEO Taylor Lauber announced a $1 billion stock repurchase program, the largest in Shift4’s history. He discussed the plan during a webcast for the company’s fiscal 2025 third quarter results. “I wouldn’t be able to discuss capital allocation without the notable dislocation in our own valuation, despite the continued performance of numerous opportunities we see ahead,” said Lauber.<\/p>\n
The stock repurchase program will be in effect through the end of 2026. It comes at a time, said Shift4 CFO Christopher Cruz, “when we have ample liquidity and access to capital to execute upon it.”<\/p>\n
Shift4 went public in June of 2020, raising $345 million through its initial public offering (IPO).<\/p>\n
Third quarter results<\/p>\n
For its third quarter (Q3), Shift4 reported gross revenue less network fees of $589 million, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $292 million.<\/p>\n
“Each of these was up 61% and 56% respectively,” Lauber said.<\/p>\n
GAAP (generally accepted accounting principles) net income for Q3 was $33.4 million. GAAP earnings per share came in at $0.17, while non-GAAP net income per share was $1.47.<\/p>\n
Shift4 updated its full year 2025 guidance to a range of $1.98 billion to $2.02 billion in gross revenue less network fees, and $970 million to $985 million in adjusted EBITDA.<\/p>\n
Looking ahead to the fourth quarter, Lauber said Shift4 has noticed a dip in\u00a0sales from restaurant and hotel customers, but he’s not worried about it: “While not immune from the broader economy, our deliberate balance transformation over the past several years does mean we’re more diversified and scaled, both geographically and by industry, than at any point in our history.”<\/p>\n
Q3 marked the first full quarter since Shift4 acquired Global Blue, a Swiss company best known for its tax-free shopping service. “Global Blue contributed $156 million to gross revenue less network fees, and $68 million EBITDA, which were in line with our overall expectations, despite headwinds faced by the business in the Asia Pacific market,” said Cruz.<\/p>\n
Additions and subtractions<\/p>\n
Also on the subject of acquisitions, Lauber said Shift4 just closed on its purchase of\u00a0Smartpay, a payment processing and point-of-sale solutions company that does business in Australia and New Zealand.\u00a0<\/p>\n
Late last month, Shift4 also announced plans to acquire\u00a0the North American assets of the French payment processing company Worldline. \u201cWhile I’m sure many of you would like to see us slow down, the opportunity presented by a $90 billion payment gateway was something we would not ignore,” said Lauber.<\/p>\n
It’s not all additions, though; Shift4 has made some “small” divestitures as of late, including the $34 million sale of a couponing business. “These sales remove non-core business lines and help keep our laser focus on revenue synergy opportunities,” said Lauber.<\/p>\n
Company founder in line (again) for NASA job<\/p>\n
This week, Shift4 founder and former CEO Jared Isaacman was re-nominated for the role of NASA Administrator by President Trump, who first put Isaacman up for the job in December, before rescinding the offer in May.\u00a0<\/p>\n
Isaacman has been to space twice as part of commercial SpaceX missions. “The support from the space-loving community has been overwhelming. I am not sure how I earned the trust of so many, but I will do everything I can to live up to those expectations,”\u00a0Isaacman wrote on X on Tuesday. His nomination must be confirmed by the U.S. Senate.<\/p>\n
Lauber acknowledged the nomination during his remarks.\u00a0\u201cThe ambition that we’ve seen inside our walls for 26 years really has always deserved a bigger stage,\u201d he said of Isaacman.<\/p>\n
Lauber said the plan Shift4 had in place the first time Isaacman was tapped for the NASA role remain the same: if he’s confirmed, Isaacman will remain the company’s largest shareholder, but he’ll have to relinquish his “super voting” rights.\u00a0<\/p>\n
Isaacman currently serves as Shift4’s board chairman.<\/p>\n
In the markets<\/p>\n
Shares of Shift4 (NYSE: FOUR) were hovering around $75 Thursday morning; they dropped to $69.62 just before lunch. That’s near the bottom of their 52-week range.<\/p>\n
The company has a market capitalization of $5.94 billion.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"UPPER SAUCON TWP., Pa.- Shift4 is feeling good about its balance sheet, but it’s also feeling underappreciated in…\n","protected":false},"author":2,"featured_media":12687,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[119,121,120,17810,9805,17809,4717],"class_list":["post-27175","post","type-post","status-publish","format-standard","has-post-thumbnail","category-allentown","tag-allentown","tag-allentown-headlines","tag-allentown-news","tag-jared-isaacman","tag-shift4","tag-taylor-lauber","tag-united-states-senate"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/27175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/comments?post=27175"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/27175\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media\/12687"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media?parent=27175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/categories?post=27175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/tags?post=27175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}