Shift4 Payments stock gaps up on above-consensus Q3 payment volume, $1B buyback

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Shift4 Payments (FOUR [https://seekingalpha.com/symbol/FOUR]) shares climbed 7.5% in Thursday premarket trading after delivering Q3 payment volume that swelled more than expected, but that wasn't enough to eke out a profit beat. Notably, its board has authorized a new $1B stock buyback program, its largest in company history.

The provider of software and payment processing solutions now expects FY25 adjusted EBITDA [https://seekingalpha.com/pr/20296261-shift4-announces-third-quarter-2025-results] of $970M-$985M (midpoint $977.5M), compared with the $970.8M Visible Alpha consensus and $965-$990M (midpoint $977.5M) in the prior goal. Payment volume for FY25 is expected to be $207B-$210B (midpoint $208.5B), vs. $208.4B Visible Alpha estimate and $200B-$220B (midpoint $210B) in the previous outlook.

And its annual target for gross revenue less network was revised to $1.980B-$2.020B (midpoint $2.000B), vs. $1.991.6B Visible Alpha estimate and $1.965B-$2.035B (midpoint $2.000B) in the previous views.

Q3 adjusted EPS of $1.47, slightly missing the $1.48 average analyst estimate, rose from $1.10 in Q2 and $1.39 a year before.

Q3 gross revenue of $1.18B, matching the consensus, advanced from $966.2B in the earlier quarter and $909.2M in Q3 2024.

Payment volume was $54.7B in Q3, up from $50.1B in Q2 and $43.5B a year ago.

Adjusted EBITDA jumped to $292.1M from $205.1M in Q2 and $187.4M in 2024's Q3.

Amid a "complex economic backdrop," said CEO Taylor Lauber, both Q3 and early Q4 saw "modestly worsening same-store-sales from our restaurant and hotel customers, but increased contribution from new verticals and geographies."

MORE ON SHIFT4 PAYMENTS

* Shift4 Payments: Growing Merchant Payments But Priced For Weakness [https://seekingalpha.com/article/4826948-shift4-payments-growing-merchant-payments-but-priced-for-weakness]
* Shift4 Payments, Inc. (FOUR) Presents At Goldman Sachs Communacopia + Technology Conference 2025 Transcript [https://seekingalpha.com/article/4821862-shift4-payments-inc-four-presents-at-goldman-sachs-communacopia-technology-conference-2025]
* Shift4 Payments: M&A Growth Train Looks Over, Initiating At Buy [https://seekingalpha.com/article/4821248-shift4-payments-ma-growth-train-looks-over-initiating-buy]
* Trump taps Shift4's Isaacman again to head NASA [https://seekingalpha.com/news/4515864-trump-taps-shift4s-isaacman-again-to-head-nasa]
* Shift4 Payments Q3 2025 Earnings Preview [https://seekingalpha.com/news/4515868-shift4-payments-q3-2025-earnings-preview]