John Davis

Greg denied any change in guidance philosophy. The 120bp range (vs 100bp) reflects that 1% equals $23M in revenue, not much flexibility. Will continue evaluating range width in future years.

Greg said Tap2Local and Rapid Transfers can be sold outside the base today, including to competitors' digital clients. Banno outside-the-base selling starts by end of calendar 2025 with beta implementations targeted for May-June 2026. Two different technical approaches being pursued.

Greg attributed the gap to M&A activity timing, renewal pricing dynamics, and macro hedging, not structural changes. Larger core wins from FY24 will start converting in H2 of FY26 (15-24 month implementation cycles).

Mimi confirmed nonkey/nonstrategic revenue is generally lower-margin mix including hardware and consulting, implying its decline is a margin tailwind.

Greg acknowledged the correlation question but said each deal is unique in product attach, retail vs commercial mix, and pricing structure. Difficult to provide a simple asset-to-ACV correlation.

Mimi said trailing 12-month FCF of $303M at 71% conversion is on track for the 65-75% full-year guide. Noted prior year had over-tax-payment benefits and current TTM has slightly more CapEx. Comfortable with annual trajectory.

Mimi declined quarterly color but confirmed Q4 should be higher than Q3. Directed to full-year guidance.

Greg acknowledged potential price compression on renewals but said it's offset by additional products. All factored into H2 guidance. Emphasized strength of retention story.

Greg clarified the 20% user growth is primarily retail-driven. Banno Business pricing is add-on to retail fee. Digital revenue growth has been consistent over last two years.

Mimi noted Q2 headcount comp (~250 heads difference from departures last year) and software usage headwinds concentrated in H1, then easing. Comfortable with 25-40bp full year guide.

Peter broke down Q4 Corporate Payments: core business ~17% growth (16% print with 100bps float drag). Prior year Q4 had 400bps one-timer and was off weak Q4 2023. Alpha adds 13% organic (31% ex-float). Consolidated mid-teens with 3% float headwind.

Ron cited Vehicle high-single-digits to 10%, Corporate Payments mid-teens inclusive of float headwinds, Other category 10%+. Lodging a wildcard expected to edge into positive territory. Confidence based on current run rates, not calling for anything different than current trends.

Ron outlined leverage declining to 2.1-2.2x by year-end with $1.7B+ undrawn revolver. M&A is first priority but buying stock at current levels too. Balanced approach as always.

Ron bluntly stated: it either gets fixed or it goes. Historical growth of 15-20% proves the market position exists. Half the miss is weather/emergency macro, half is sales execution. Not in it long-term if performance doesn't improve.

Stephanie explained Q1 benefited from outsized renewal timing in nonrecurring revenue. Q2 recurring is very consistent; the normalization is purely a license timing effect.

James provided high-level sizing: TSYS adds $2.5B to ~$7B banking, a ~35% boost to $9.4B total. Margins additive by 80bps. Stephanie didn't have account-on-file vs transaction details readily available.

James explained the $400M increase from $800M to $1.2B effectively returns the 2024 M&A underspend, noting actual M&A spend was ~$550-600M vs $1B target.

Stephanie acknowledged slip risk exists but emphasized these are implementations in progress, not future signings. Pipeline is full for 2025 and 2026 with record core wins converting.