FISV

FISERV INC

NASDAQ · INDUSTRIALS · SERVICES-BUSINESS SERVICES, NEC

48.21

−0.04 −0.08%

USD · close Oct 21

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MKT CAP $25.6BP/E 9.3DIV YIELD —FCF YIELD 15.31%REV TTM $20.9B −1.2%NET INCOME $2.8B −17.1%NET DEBT $2.6B52W 44.36 – 126.54SEC XBRL · TTM TO Invalid Date

How FISV rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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New in FY2025

When reviewing goodwill for impairment, we consider the prior test’s amount of excess fair value over the carrying value of each reporting unit, the period of time since a reporting unit’s last quantitative test, the extent a reorganization or disposition changes the composition of one or more of our reporting units, and other prevailing factors to determine whether or not to first perform a qualitative test.
If we conclude that it is more likely than not that the fair value of a reporting unit may be less than its carrying value, we perform a quantitative impairment test.
We determine the fair value of a reporting unit using both a discounted cash flow analysis and a market approach, as appropriate, and engage an independent valuation specialist, when necessary, to assist in the fair value determinations.
As of October 1, 2025, we performed our annual goodwill impairment assessment and determined that the estimated fair values exceeded the respective carrying values for each of our reporting units.
Subsequently, we determined that a triggering event occurred in the fourth quarter of 2025 due to a sustained decline in our stock price and, therefore, performed an additional goodwill impairment test as of December 31, 2025.
The impairment assessment performed at December 31, 2025 determined that our goodwill of $37.7 billion was not impaired as the estimated fair values exceeded the respective carrying values for each of our reporting units.
At December 31, 2025, fair values exceeded carrying values by less than 15% for eight of our reporting units with an aggregate goodwill balance of $18.5 billion as follows: Fair Value to Carrying Value Cushion (In millions) Goodwill Balance $ % Reporting Unit 1 $ 1,394 $ 62 3.7 % Reporting Unit 2 1,988 161 5.4 % Reporting Unit 3 1,817 406 10.4 % Reporting Unit 4 281 46 11.8 % Reporting Unit 5 2,557 415 13.9 % Reporting Unit 6 4,120 742 14.4 % Reporting Unit 7 1,635 307 14.7 % Reporting Unit 8 4,692 995 14.8 % If future operating performance is below our expectations or there are changes to forecasted revenue growth rates or operating margins, risk-adjusted discount rates, foreign currency exchange rates, effective income tax rates, or some combination thereof, a decline in the fair value of the reporting units could result in, and we may be required to record, a goodwill impairment charge.
It is also reasonably possible that future developments related to the interest rate environment, sustained decreases in our stock price, a shift in strategic initiatives, or significant changes in the composition of certain of our reporting units could have a future material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment.
We have no accumulated goodwill impairment through December 31, 2025.
In connection with the goodwill impairment assessment triggering event in the fourth quarter of 2025, as described above, we performed an additional evaluation of the recoverability of our intangible assets and determined no impairment as of December 31, 2025.
Recoverability of intangible assets is assessed by comparing the carrying amount of the asset group to either the undiscounted future cash flows expected to be generated by the asset group or the net realizable value of the asset group, depending on the type of asset group.
Given the significance of our goodwill and intangible asset balances, an adverse change in the fair value and recoverability of the assets could result in an impairment charge, which may be material to our consolidated financial statements.
Processing and Services Processing and services revenue is generated from account- and transaction-based fees for data processing, merchant transaction processing and acquiring, electronic billing and payment services, electronic funds transfer and debit/credit processing services; consulting and professional services; merchant cash advances; and software maintenance for ongoing client support.
We recognize processing and services revenue in the period in which the specific service is performed unless it is not considered distinct from other goods or services, which revenue would then be recognized as control is transferred of the combined goods and services.
Product Product revenue is generated from print and card production, software license, data and analytics, and hardware (primarily POS devices) sales.
We also maintain substantial volumes of payment and transaction data, providing insights into business and consumer activity.
We account for the sales of distinct data and analytics as a separate performance obligation and recognize the revenue at its standalone selling price when the customer obtains control of the analytical data.
Additionally, we sell or lease hardware (POS devices) and other peripherals as part of our contracts with customers.
We do not manufacture hardware, rather we purchase hardware from third-party vendors and hold such hardware in inventory until purchased or leased by a customer.
The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer.
We allocate the purchase price of acquired businesses to the respective identifiable assets acquired and liabilities assumed in the transaction at their estimated fair values at the date of acquisition.
As a result, during the measurement period, which can be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill.
We are also required to estimate the useful lives of acquired intangible assets to determine the amount of acquisition-related intangible asset amortization expense to record in future periods.
As additional information becomes available, we evaluate our tax positions and adjust our liability accordingly for known tax exposures.
We establish a valuation allowance against our deferred tax assets when, based upon the weight of all available evidence, we believe it is more likely than not that all or some portion of the deferred tax assets will not be realized.
In making this determination, we consider the relative impact of all of the available positive and negative evidence regarding future sources of taxable income and available tax planning strategies.
Additional information regarding our income taxes is included in Note 16 to the consolidated financial statements.
Processing and Services Processing and services revenue, which comprised 80% of our total revenue in 2025, is generated from account- and transaction-based fees under multi-year contracts.
Cost of processing and services consists of costs directly associated with providing services to clients and includes the following: personnel; equipment and data processing; facility costs, including costs to maintain software applications; client support; certain depreciation and amortization; and other operating expenses directly associated with processing and services revenue.
Product Product revenue, which comprised 20% of our total revenue in 2025, is derived from print and card production, software license, data and analytics, and hardware (primarily POS devices) sales.
Selling, General and Administrative Expenses Selling, general and administrative expenses primarily consist of: salaries, wages, commissions and related expenses paid to sales personnel, administrative employees and management; third-party commissions and payments to distribution partners; marketing costs; certain depreciation and amortization; and other general selling and administrative expenses.
The financial results presented below have been affected by acquisitions, non-cash impairment charges, net gain on sales and distribution of other assets, and foreign currency fluctuations.
Year Ended December 31, 2025 2024 Percentage of Revenue (1) Increase (Decrease) (In millions) 2025 2024 $ % Revenue: Processing and services $ 16,879 $ 16,637 79.6 % 81.3 % $ 242 1 % Product 4,314 3,819 20.4 % 18.7 % 495 13 % Total revenue 21,193 20,456 100.0 % 100.0 % 737 4 % Expenses: Cost of processing and services 5,802 5,363 34.4 % 32.2 % 439 8 % Cost of product 2,810 2,650 65.1 % 69.4 % 160 6 % Sub-total 8,612 8,013 40.6 % 39.2 % 599 7 % Selling, general and administrative 6,883 6,564 32.5 % 32.1 % 319 5 % Net gain on sales and distribution of other assets (120) — (0.6) % — % 120 n/m Total expenses 15,375 14,577 72.5 % 71.3 % 798 5 % Operating income 5,818 5,879 27.5 % 28.7 % (61) (1) % Interest expense, net (1,493) (1,195) (7.0) % (5.8) % 298 25 % Other expense, net (61) (178) (0.3) % (0.9) % (117) (66) % Income before income taxes and income (loss) from investments in unconsolidated affiliates 4,264 4,506 20.1 % 22.0 % (242) (5) % Income tax provision (811) (641) (3.8) % (3.1) % 170 27 % Income (loss) from investments in unconsolidated affiliates 37 (685) 0.2 % (3.3) % 722 n/m Net income 3,490 3,180 16.5 % 15.5 % 310 10 % Less: net income attributable to noncontrolling interests and redeemable noncontrolling interest 10 49 — % 0.2 % (39) (80) % Net income attributable to Fiserv, Inc. $ 3,480 $ 3,131 16.4 % 15.3 % $ 349 11 % (1) Percentage of revenue is calculated as the relevant revenue, expense, or income amount divided by total revenue, except for cost of processing and services and cost of product amounts, which are divided by the related component of revenue.
Year Ended December 31, (In millions) Merchant Financial Corporate and Other Total Total revenue: 2025 $ 10,140 $ 9,664 $ 1,389 $ 21,193 2024 9,631 9,477 1,348 20,456 Revenue growth $ 509 $ 187 $ 41 $ 737 Revenue growth percentage 5 % 2 % 3 % 4 % Operating income (loss): 2025 $ 3,502 $ 4,380 $ (2,064) $ 5,818 2024 3,561 4,485 (2,167) 5,879 Operating income growth (decline) $ (59) $ (105) $ 103 $ (61) Operating income decline percentage (2) % (2) % (1) % Operating margin: 2025 34.5 % 45.3 % 27.5 % 2024 37.0 % 47.3 % 28.7 % Operating margin decline (1) (250) bps (200) bps (120) bps (1) Represents the basis point decline in operating margin.
Total Revenue Total revenue increased $737 million, or 4%, in 2025 compared to 2024, with 5% growth in our Merchant segment and 2% growth in our Financial segment.
Revenue in our Merchant segment increased $509 million, or 5%, in 2025 compared to 2024.
Small Business contributed 5% to Merchant segment revenue growth in 2025, primarily driven by volume growth, including from our Clover POS and business management platform, as well as the expansion of our merchant relationships through value-added services.
Additionally, Enterprise contributed 1% to Merchant segment revenue growth in 2025, primarily driven by transaction growth, as well as an increase in data and analytics sales.
A decrease in Processing’s revenue partially offset Merchant segment revenue growth in 2025.
Revenue in our Financial segment increased $187 million, or 2%, in 2025 compared to 2024.

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Gone since FY2024

We allocate the purchase price of acquired businesses to the assets acquired and liabilities assumed in the transaction at their estimated fair values.
As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill.
We are also required to estimate the useful lives of intangible assets to determine the amount of acquisition-related intangible asset amortization expense to record in future periods.
When reviewing goodwill for impairment, we consider the prior test’s amount of excess fair value over the carrying value of each reporting unit, the period of time since a reporting unit’s last quantitative test, the extent a reorganization or disposition changes the composition of one or more of our reporting units, and other factors to determine whether or not to first perform a qualitative test.
If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we perform a quantitative impairment test.
We determine the fair value of a reporting unit using both a discounted cash flow analysis and a market approach.
In connection with the Segment Realignment, certain of our reporting units changed in composition as a result of which goodwill was allocated to such reporting units using a relative fair value approach.
Our most recent annual impairment assessment of our reporting units in the fourth quarter of 2024 determined that our goodwill of $36.6 billion was not impaired as the estimated fair values of each of the respective reporting units exceeded their carrying values.
The excess of the estimated fair value over carrying value for our lowest reporting unit, which maintains a goodwill balance of $1.3 billion, was 29%.
The fair value for each of our other reporting units exceeds their respective carrying value by at least 40%.
However, if future operating performance is below our expectations or there are material changes to forecasted revenue growth rates or operating margins, risk-adjusted discount rates, foreign currency exchange rates, effective income tax rates, or some combination thereof, a decline in the fair value of the reporting units could result in, and we may be required to record, a goodwill impairment charge.
It is also reasonably possible that future developments related to the interest rate environment, a shift in strategic initiatives, or significant changes in the composition of certain of our reporting units could have a future material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment.
We have no accumulated goodwill impairment through December 31, 2024.
Recoverability of intangible assets is assessed by comparing the carrying amount of the asset to either the undiscounted future cash flows expected to be generated by the asset or the net realizable value of the asset, depending on the type of asset.
Given the significance of our goodwill and intangible asset balances, an adverse change in fair value could result in an impairment charge, which could be material to our consolidated financial statements.
As a practical expedient, we do not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.
Processing and Services Processing and services revenue is generated from account- and transaction-based fees for data processing, merchant transaction processing and acquiring, electronic billing and payment services, electronic funds transfer and debit/credit processing services; consulting and professional services; and software maintenance for ongoing client support.
We recognize processing and services revenue in the period in which the specific service is performed unless they are not deemed distinct from other goods or services, which revenue would then be recognized as control is transferred of the combined goods and services.
Product Product revenue is generated from print and card production sales, as well as software license and hardware (primarily POS devices) sales.
We sell or lease hardware (POS devices) and other peripherals as part of our contracts with customers.
We do not manufacture hardware, rather we purchase hardware from third-party vendors and hold such hardware in inventory until purchased by a customer.
The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring products or services to the customer.
As additional information becomes available, we evaluate our tax positions and appropriately adjust our liability for known tax exposures.
We establish a valuation allowance against our deferred tax assets when, based upon the weight of all available evidence, we believe it is more likely than not that some portion or all of the deferred tax assets will not be realized.
In making this determination, we have considered the relative impact of all of the available positive and negative evidence regarding future sources of taxable income and available tax planning strategies.
Additional information regarding our income taxes is included in Note 17 to the consolidated financial statements.
Processing and Services Processing and services revenue, which comprised 81% of our total revenue in 2024, is primarily generated from account- and transaction-based fees under multi-year contracts.
Cost of processing and services consists of costs directly associated with providing services to clients and includes the following: personnel; equipment and data processing; facility costs, including costs to maintain software applications; client support; certain depreciation and amortization; and other operating expenses.
Product Product revenue, which comprised 19% of our total revenue in 2024, is derived from print and card production sales, as well as software license and hardware (primarily POS devices) sales.
The financial results presented below have been affected by acquisitions, dispositions, non-cash impairment charges, and foreign currency fluctuations.
Segment results for the years ended December 31, 2023 and 2022 have been recast to reflect the Segment Realignment.
Year Ended December 31, 2024 2023 Percentage of Revenue (1) Increase (Decrease) (In millions) 2024 2023 $ % Revenue: Processing and services $ 16,637 $ 15,630 81.3 % 81.9 % $ 1,007 6 % Product 3,819 3,463 18.7 % 18.1 % 356 10 % Total revenue 20,456 19,093 100.0 % 100.0 % 1,363 7 % Expenses: Cost of processing and services 5,363 5,332 32.2 % 34.1 % 31 1 % Cost of product 2,650 2,338 69.4 % 67.5 % 312 13 % Sub-total 8,013 7,670 39.2 % 40.2 % 343 4 % Selling, general and administrative 6,564 6,576 32.1 % 34.4 % (12) n/m Net gain on sale of businesses and other assets — (167) — % (0.9) % (167) n/m Total expenses 14,577 14,079 71.3 % 73.7 % 498 4 % Operating income 5,879 5,014 28.7 % 26.3 % 865 17 % Interest expense, net (1,195) (976) (5.8) % (5.1) % 219 22 % Other expense, net (178) (140) (0.9) % (0.7) % 38 27 % Income before income taxes and loss from investments in unconsolidated affiliates 4,506 3,898 22.0 % 20.4 % 608 16 % Income tax provision (641) (754) (3.1) % (3.9) % (113) (15) % Loss from investments in unconsolidated affiliates (685) (15) (3.3) % (0.1) % (670) n/m Net income 3,180 3,129 15.5 % 16.4 % 51 2 % Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests 49 61 0.2 % 0.3 % (12) (20) % Net income attributable to Fiserv, Inc. $ 3,131 $ 3,068 15.3 % 16.1 % $ 63 2 % (1) Percentage of revenue is calculated as the relevant revenue, expense, or income amount divided by total revenue, except for cost of processing and services and cost of product amounts, which are divided by the related component of revenue.
Year Ended December 31, 2023 2022 Percentage of Revenue (1) Increase (Decrease) (In millions) 2023 2022 $ % Revenue: Processing and services $ 15,630 $ 14,460 81.9 % 81.5 % $ 1,170 8 % Product 3,463 3,277 18.1 % 18.5 % 186 6 % Total revenue 19,093 17,737 100.0 % 100.0 % 1,356 8 % Expenses: Cost of processing and services 5,332 5,771 34.1 % 39.9 % (439) (8) % Cost of product 2,338 2,221 67.5 % 67.8 % 117 5 % Sub-total 7,670 7,992 40.2 % 45.1 % (322) (4) % Selling, general and administrative 6,576 6,059 34.4 % 34.2 % 517 9 % Net gain on sale of businesses and other assets (167) (54) (0.9) % (0.3) % 113 n/m Total expenses 14,079 13,997 73.7 % 78.9 % 82 1 % Operating income 5,014 3,740 26.3 % 21.1 % 1,274 34 % Interest expense, net (976) (733) (5.1) % (4.1) % 243 33 % Other expense, net (140) (94) (0.7) % (0.5) % 46 49 % Income before income taxes and (loss) income from investments in unconsolidated affiliates 3,898 2,913 20.4 % 16.4 % 985 34 % Income tax provision (754) (551) (3.9) % (3.1) % 203 37 % (Loss) income from investments in unconsolidated affiliates (15) 220 (0.1) % 1.2 % (235) n/m Net income 3,129 2,582 16.4 % 14.6 % 547 21 % Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests 61 52 0.3 % 0.3 % 9 17 % Net income attributable to Fiserv, Inc. $ 3,068 $ 2,530 16.1 % 14.3 % $ 538 21 % (1) Percentage of revenue is calculated as the relevant revenue, expense, or income amount divided by total revenue, except for cost of processing and services and cost of product amounts, which are divided by the related component of revenue.
Year Ended December 31, (In millions) Merchant Financial Corporate and Other Total Total revenue: 2024 $ 9,631 $ 9,477 $ 1,348 $ 20,456 2023 8,722 9,101 1,270 19,093 Revenue growth $ 909 $ 376 $ 78 $ 1,363 Revenue growth percentage 10 % 4 % 6 % 7 % Operating income (loss): 2024 $ 3,561 $ 4,485 $ (2,167) $ 5,879 2023 2,974 4,178 (2,138) 5,014 Operating income growth $ 587 $ 307 $ (29) $ 865 Operating income growth percentage 20 % 7 % 17 % Operating margin: 2024 37.0 % 47.3 % 28.7 % 2023 34.1 % 45.9 % 26.3 % Operating margin growth (1) 290 bps 140 bps 240 bps (1) Represents the basis point growth in operating margin.
Year Ended December 31, (In millions) Merchant Financial Corporate and Other Total Total revenue: 2023 $ 8,722 $ 9,101 $ 1,270 $ 19,093 2022 7,883 8,681 1,173 17,737 Revenue growth $ 839 $ 420 $ 97 $ 1,356 Revenue growth percentage 11 % 5 % 8 % 8 % Operating income (loss): 2023 $ 2,974 $ 4,178 $ (2,138) $ 5,014 2022 2,441 3,806 (2,507) 3,740 Operating income growth $ 533 $ 372 $ 369 $ 1,274 Operating income growth percentage 22 % 10 % 34 % Operating margin: 2023 34.1 % 45.9 % 26.3 % 2022 31.0 % 43.8 % 21.1 % Operating margin growth (1) 310 bps 210 bps 520 bps (1) Represents the basis point growth in operating margin.
Total Revenue Total revenue increased $1,363 million, or 7%, in 2024 compared to 2023.
The revenue increase in 2024 was primarily driven by higher global processing revenue across our businesses, partially offset by a 8% decrease due to foreign currency exchange rate fluctuations.
Revenue in our Merchant segment increased $909 million, or 10%, in 2024 compared to 2023 and increased $839 million, or 11%, in 2023 compared to 2022.
Small Business contributed 8% and 9% to Merchant segment revenue growth in 2024 and 2023, respectively, driven by an increase in payment volumes in both 2024 and 2023, partially offset by foreign currency exchange rate fluctuations.
Small Business revenue growth also included payment volume growth and increased hardware offerings from our Clover POS and business management platform, and the expansion of our merchant relationships through value-added services.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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