Ramsey El-Assal

Peter explained three factors: strong PEO sales drove variable selling costs higher, SUI revenues came in stronger at lower margin, and workers' comp reserve releases were less positive than prior year.

Peter confirmed ongoing M&A activity acquiring partners in Mexico, Nordics. Workforce Software added global time. Open to more acquisitions when the right fit emerges.

Peter said margin expansion range was reiterated confidently. Q1 had WorkForce Software acquisition drag; Q2 came in strong. Back half has float portfolio headwind in Q3 but underlying expansion continues with cost management as an ongoing lever.

Peter confirmed pricing at ~100bps for FY2026, slightly lower than FY25 but above pre-pandemic 50bps. Halfway through the year with pricing feathered in and generally well received.

Peter confirmed pricing in the ~100bps range for FY26, closer to recent trends than pre-pandemic 50bps. On retention, no specific callouts, broad-based strength with small business out-of-business not materializing.

Maria confirmed embedded payroll is a broader strategy beyond Fiserv; sees potential to extend across mid-market and international platforms, with the Fiserv integration as the technology proof point.

Maria attributed international softness to macro uncertainty; noted large deals are inherently lumpy and pipelines remain strong both in-country and for multi-country deals. Q4 execution is key.

Don confirmed M&A philosophy unchanged; industry still highly fragmented, will continue tuck-in strategy. No anticipated regulatory impact from potential new environment.

Don explained SUI timing pull-forward from Q3 to Q2 due to holiday calendar, plus renewals period with PEO pays per control expected slower than ES. Noted ES pays per control rounded down to 1%, not up.

Don attributed PEO margin beat to stronger revenue from WSE growth and wage rates; small $4M workers comp reserve release in quarter but no releases assumed in balance of year forecast.

Maria noted SBS retention held well despite expectations for normalization; NPS-to-retention correlation suggests structural improvement, though further small business out-of-business rate normalization expected.

Ron said to expect more small EPIX-like divestitures over the next 6 to 12 months, with bigger moves only if performance improves.

Management said it took a slight provision as fuel prices rose but would not weaken underwriting standards to gain business.

Ron explained pivot away from micro market due to credit losses, client losses, and short account lives. Middle market offers bigger, more stable, longer-lasting accounts. Key insight: middle market companies need both fleet and commercial card spend management, making fleet just a spend category in the bigger platform rather than a specialized product.

Ron expects lodging mid- to high single-digit growth in H2 2026. Same-store sales reached plus 6% vs negative 18% eight quarters ago. Base has way stabilized after IT issue that took away a big part of the client base. Pipeline has enough implementations to support second-half positive growth.

Ron personally surveyed three business heads that morning: U.S. merchants, cross-border beneficiaries, Alpha bank account holders. Basic answer was crickets -- no demand for stablecoin wallets. Despite this, building three things: serving crypto clients (4-5 signed), piloting rails in own treasury, and building companion stablecoin wallets for all bank account holders. Compared to EV hype -- more written and said than actually used.

Ron provided the company-wide model: approximately one-third of bookings convert to revenue in the current year. Using $300M bookings example, $100M prints in year, $200M rolls into next year. Payables slower, cross-border faster, fleet almost systematic. Statistics-driven modeling makes it easy to forecast.

Ron described this as best gift performance since acquisition ~11 years ago. Mid-teens full-year growth driven by tamper-proof packaging plus strong new client signings.

Ron confirmed structural retention improvement from Corporate Payments mix and larger U.S. vehicle clients. But moderated expectations, half of losses are credit cuts. Sales growth is more important lever.

Ron explained same-store sales recovery from -10% to flat, attributed original decline to transient client usage decline. Expects acceleration through 2025 as salespeople refocus on new client acquisition.

Ron confirmed cloud payables tech already working with UK clients. Key product work is connecting to Cross-Border for cross-border disbursements. Go-to-market: specialist team using existing UK assets. Summer 2025 target for initial feedback.

Ferris dismissed the Pismo/Wells Fargo concern, noting FIS does commercial not consumer card processing there and Pismo is not a full end-to-end core.

Ferris pinpointed loan syndication and lower debt issuances as the source, framing it as transitory macro volatility, not a product problem.

Stephanie outlined the recurring share evolution from 69% in 2020 to 71% in 2025 with further increase expected. Expects mid-to-high single-digit recurring growth in Capital Markets for 2026, partly offset by slower nonrecurring growth as market moves away from licenses.

James cited three levers: CapEx declining from 9% to 8% of revenue, extending supplier payment terms, and improving collections. Expects 90%+ by 2026.

Stephanie expressed high confidence: deals are already in implementation, not just signed. One is already in motion. An acquisition regulatory timeline is the main variable.

Bob confirmed there is a back book, largely serviced by the dealer network, with opportunistic upgrades happening as customers seek increased functionality from the new Genius hardware and software. There is no mass back-book conversion campaign or forced platform retirement; upgrades proceed at a measured, voluntary pace. 100% of the Genius adoption focus is on front-book horizontal/vertical and geographic expansion and sales effectiveness.

Cameron attributed the 30% cross-sell bookings growth to the BaaS portfolio, especially within Enterprise, driven by a concerted effort with dedicated teams cross-selling value-added services (revenue boost, fraud, authentication optimization, FX) into existing client relationships, which is partially driving strong enterprise bookings growth year-to-date.

Bob explained sales expansion focused on North America Genius + payments + VAS, particularly targeting upper SMB into mid-market where relationship/consultative selling is needed. Self-service digital channels available for simpler merchants, but complex sales require direct engagement.

Cameron confirmed stable macro assumption with no meaningful conservatism or deterioration baked in, noting early January trends consistent with Q4.

Cameron confirmed wholesale and cross-border exits have begun in Q4 with more in 2025, all absorbed in guidance. Identified specific areas: wholesale EVO relationships, multinational cross-border, and indirect FI relationships.

Follow-up on Paycor bookings conversion timeline and cross-sell velocity.

Management addressed Paycor bookings conversion timeline and cross-sell velocity.

Gibson described AI evolution over nearly a decade with 100+ models. Proactive retention intercepts just starting (9 months in). HR Copilot piloting for generalist productivity. Beginning to look at AI as revenue driver via client insights. Paycor also has impressive AI product roadmap.

Schrader confirmed strong pricing power with 2-4% range achievable even in downturns. Q3 saw strong price realization with better-than-expected year-end processing discounting. Revenue per client driven by both pricing and product attachment.

Schrader noted one more cut assumed in back half that may not happen, but timing impact would not be material. Slight upside possible.

Miller confirmed guidance now assumes no further rate changes this year and said third quarter branded checkout growth should hold at about 2%.

Jamie described a shift from broad-based merchant approach to focused, mission-based teams for high-impact merchants. Deploying experience, biometrics, and upstream presentment together. Merchants with full stack (latest integration + upstream presentment + co-marketing) delivered double-digit branded TPV growth during Cyber 5.

Alex quantified the tariff impact as roughly 1 point on branded checkout. In July, seeing a bit less pressure in that space. Full year branded checkout planned at mid-single digits, on track.

Jamie sized the exposure at less than 2% of branded checkout TPV, including both direct cross-border and Chinese merchants with U.S. entities shipping from China.

Alex explained the shift from pure processing conversations to holistic partnerships leveraging two-sided network. Jamie noted the 5-point revenue headwind but 1-point TM dollar benefit in 2025.