What changed in this filing

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Item 1. Financial Statements

2025-11-06 compared with 2025-08-07 · 112 added, 95 removed, 654 unchanged (24% of the section changed)

4 unchanged sentences

(unaudited and in thousands, except share and per share amounts)

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Current assets

53 unchanged sentences

5,000,000 shares authorized;

no shares issued at June 30, 2025, and December 31, 2024

no shares issued at September 30, 2025, and December 31, 2024

Common stock;

1 unchanged sentence

280,000,000 shares authorized;

140,525,055 shares issued at June 30, 2025, and December 31, 2024

140,525,055 shares issued at September 30, 2025, and December 31, 2024

Additional paid-in capital 745,347 731,927

Retained earnings 1,760,407 1,598,085

Treasury stock, at cost, 37,112,283 and 35,270,142 shares at June 30, 2025, and December 31, 2024, respectively

Treasury stock, at cost, 37,268,658 and 35,270,142 shares at September 30, 2025, and December 31, 2024, respectively

( 924,013 ) ( 784,914 )

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

46 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

10 unchanged sentences

(unaudited and in thousands, except share amounts)

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Common Stock Additional

1 unchanged sentence

Comprehensive Loss Total

Balance as of March 31, 2025 $ 702 $ 735,751 $ 1,656,955 $ ( 797,214 ) $ ( 113,594 ) $ 1,482,600

Balance as of June 30, 2025 $ 702 $ 733,542 $ 1,669,157 $ ( 910,960 ) $ ( 98,943 ) $ 1,393,498

— — 91,250 — — 91,250

Other comprehensive income

Other comprehensive loss

— — — — ( 4,318 ) ( 4,318 )

7 unchanged sentences

— — — ( 3,628 ) — ( 3,628 )

Balance as of June 30, 2025 $ 702 $ 733,542 $ 1,669,157 $ ( 910,960 ) $ ( 98,943 ) $ 1,393,498

Three Months Ended June 30, 2024

Balance as of September 30, 2025 $ 702 $ 745,347 $ 1,760,407 $ ( 924,013 ) $ ( 103,261 ) $ 1,479,182

Three Months Ended September 30, 2024

Common Stock Additional

1 unchanged sentence

Comprehensive Loss Total

Balance as of March 31, 2024 $ 702 $ 714,936 $ 1,387,216 $ ( 733,927 ) $ ( 111,874 ) $ 1,257,053

Balance as of June 30, 2024 $ 702 $ 718,559 $ 1,418,103 $ ( 786,526 ) $ ( 114,082 ) $ 1,236,756

— — 81,427 — — 81,427

Other comprehensive loss

Other comprehensive income

— — — — 9,109 9,109

7 unchanged sentences

— — — ( 2,960 ) — ( 2,960 )

Balance as of June 30, 2024 $ 702 $ 718,559 $ 1,418,103 $ ( 786,526 ) $ ( 114,082 ) $ 1,236,756

Balance as of September 30, 2024 $ 702 $ 725,724 $ 1,499,530 $ ( 791,353 ) $ ( 104,973 ) $ 1,329,630

The accompanying notes are an integral part of the condensed consolidated financial statements.

3 unchanged sentences

(unaudited and in thousands, except share amounts)

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Common Stock Additional

14 unchanged sentences

— — — ( 23,854 ) — ( 23,854 )

Balance as of June 30, 2025 $ 702 $ 733,542 $ 1,669,157 $ ( 910,960 ) $ ( 98,943 ) $ 1,393,498

Six Months Ended June 30, 2024

Balance as of September 30, 2025 $ 702 $ 745,347 $ 1,760,407 $ ( 924,013 ) $ ( 103,261 ) $ 1,479,182

Nine Months Ended September 30, 2024

Paid-in Capital

5 unchanged sentences

— — 104,563 — — 104,563

Other comprehensive loss

Other comprehensive income

— — — — 4,497 4,497

7 unchanged sentences

— — — ( 9,299 ) — ( 9,299 )

Balance as of June 30, 2024 $ 702 $ 718,559 $ 1,418,103 $ ( 786,526 ) $ ( 114,082 ) $ 1,236,756

Balance as of September 30, 2024 $ 702 $ 725,724 $ 1,499,530 $ ( 791,353 ) $ ( 104,973 ) $ 1,329,630

The accompanying notes are an integral part of the condensed consolidated financial statements.

3 unchanged sentences

(unaudited and in thousands)

Six Months Ended June 30,

Nine months ended September 30,

Cash flows from operating activities:

9 unchanged sentences

Gain on sale of equity investment ( 25,927 ) —

873 ( 2,067 )

Changes in operating assets and liabilities:

35 unchanged sentences

Payments for debt issuance costs ( 134 ) ( 5,141 )

Net increase (decrease) in settlement assets and liabilities

61,573 ( 6,151 )

Net increase in settlement assets and liabilities

Net cash flows from financing activities

26 unchanged sentences

All intercompany balances and transactions have been eliminated.

The condensed consolidated financial statements as of June 30, 2025, and for the three and six months ended June 30, 2025 and 2024, are unaudited and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation, in all material respects, of the financial position and operating results for the interim periods.

The condensed consolidated financial statements as of September 30, 2025, and for the three and nine months ended September 30, 2025 and 2024, are unaudited and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation, in all material respects, of the financial position and operating results for the interim periods.

The condensed consolidated balance sheet as of December 31, 2024, is derived from the audited financial statements.

The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2024, filed on February 27, 2025.

Results for the three and six months ended June 30, 2025, are not necessarily indicative of results that may be attained in the future.

Results for the three and nine months ended September 30, 2025, are not necessarily indicative of results that may be attained in the future.

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S.

4 unchanged sentences

The components of other current liabilities are included in the following table (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Income taxes payable $ 16,737 $ 3,284

Vendor financed licenses 15,522 14,462

Operating lease liabilities 8,563 9,265

Income taxes payable 3,347 3,284

Accrued interest 632 8,810

16 unchanged sentences

The collection of interest on these settlement accounts is considered in the Company’s determination of its fee structure for clients and represents a portion of the payment for services performed by the Company.

The amount of settlement funds as of June 30, 2025, and December 31, 2024, was $ 233.1 million and $ 267.0 million, respectively.

The amount of settlement funds as of September 30, 2025, and December 31, 2024, was $ 201.7 million and $ 267.0 million, respectively.

The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy).

7 unchanged sentences

This change also resulted in a change in reporting units - combining Banks and Merchants into Payment Software, while maintaining Biller.

As of June 30, 2025, the Company's goodwill balance of $ 1.2 billion was allocated $ 809.0 million to Payment Software and $ 417.0 million to Biller.

As of September 30, 2025, the Company's goodwill balance of $ 1.2 billion was allocated $ 809.0 million to Payment Software and $ 417.0 million to Biller.

Recoverability of goodwill is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved.

13 unchanged sentences

The Company is currently assessing the impact that the adoption of ASU 2024-03 will have on its financial statement footnote disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326) , to simplify the estimation of expected credit losses for certain short-term receivables and contract assets arising from revenue transactions.

The ASU introduces a practical expedient that allows entities to assume current economic conditions will persist through the reasonable and supportable forecast period for eligible assets.

ASU 2025-05 is effective for annual periods beginning after December 15, 2025, with early adoption permitted.

The Company does not expect the adoption of ASU 2025-05 to have a material impact on its condensed consolidated financial statements or related disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software .

The amendments in this update modernize the accounting guidance for internal-use software by replacing the previous stage-based model with a principles-based framework.

Under the new guidance, cost capitalization begins when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used for its intended purpose.

The update also supersedes the existing rules for website development costs, incorporating them into the internal-use software framework.

ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and early adoption is permitted.

The Company is currently evaluating the impact that the adoption of ASU 2025-06 will have on its condensed consolidated financial statements and related disclosures.

Recently Adopted Accounting Pronouncements

10 unchanged sentences

Total receivables, net is comprised of the following (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Billed receivables $ 226,632 $ 198,486

6 unchanged sentences

Total receivables, net $ 823,590 $ 774,478

No customer accounted for more than 10% of the Company’s consolidated receivables balance as of June 30, 2025 and December 31, 2024.

No customer accounted for more than 10% of the Company’s consolidated receivables balance as of September 30, 2025 and December 31, 2024.

Deferred revenue includes amounts due or received from customers for software licenses, maintenance, services, and/or SaaS and PaaS services in advance of recording the related revenue.

4 unchanged sentences

Foreign currency translation 2,362

Balance, June 30, 2025

Balance, September 30, 2025

Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods.

2 unchanged sentences

• SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the ‘right to invoice’ practical expedient or meets the allocation objective.

Revenue allocated to remaining performance obligations was $ 724.0 million as of June 30, 2025, of which the Company expects to recognize approximately 52 % over the next 12 months and the remainder thereafter.

During the three and six months ended June 30, 2025, revenue recognized by the Company from performance obligations satisfied in previous periods was $ 15.8 million and $ 35.4 million, respectively.

As of June 30, 2025, the Company had $ 260.0 million and $ 643.8 million outstanding under its Revolving Credit Facility and Term Loans, respectively, with up to $ 338.1 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended, and up to $ 1.9 million of unused borrowings under Letter of Credit agreements.

Revenue allocated to remaining performance obligations was $ 753.7 million as of September 30, 2025, of which the Company expects to recognize approximately 55 % over the next 12 months and the remainder thereafter.

During the three and nine months ended September 30, 2025, revenue recognized by the Company from performance obligations satisfied in previous periods was $ 15.2 million and $ 50.5 million, respectively.

As of September 30, 2025, the Company had $ 240.0 million and $ 633.1 million outstanding under its Revolving Credit Facility and Term Loans, respectively, with up to $ 358.1 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended, and up to $ 1.9 million of unused borrowings under Letter of Credit agreements.

The amount of unused borrowings actually available varies in accordance with the terms of the agreement.

7 unchanged sentences

This Incremental Term Loan is subject to all the terms and provisions of the Credit Facility.

Borrowings under the Credit Facilities bear interest at a rate equal to, at borrower's option, either (A) a base rate determined by reference to the highest of (1) the rate of interest per annum publicly announced by Bank of America as its prime rate, (2) the federal funds effective rate plus 0.5 %, (3) term Secured Overnight Financing Rate ("SOFR") plus 1 %, and (4) 1 % or (B) term

SOFR for applicable interest period relevant to such borrowing, in each case plus an applicable margin.

The applicable margin for borrowings under the Credit Facilities is, based on the calculation of the applicable consolidated total leverage ratio, between 0.5 % to 1.5 % with respect to base rate borrowings and between 1.5 % and 2.5 % with respect to term SOFR rate borrowings.

Interest is due and payable monthly.

The interest rate in effect for the Credit Facility as of June 30, 2025, was 6.17 %.

The interest rate in effect for the Credit Facility as of September 30, 2025, was 6.01 %.

The Company is also required to pay customary fees under the Credit Facilities, including (a) a commitment fee related to the unutilized commitments under the Revolving Credit Facility, (b) letter of credit fees including fronting fees and commissions on the maximum amount available to be drawn under all outstanding letters of credit, and (c) agency fees.

12 unchanged sentences

On June 18, 2025, the Company redeemed the 2026 Notes in full as provided for under the terms.

Maturities on debt outstanding as of June 30, 2025, are as follows (in thousands):

Maturities on debt outstanding as of September 30, 2025, are as follows (in thousands):

Fiscal Year Ending December 31,

1 unchanged sentence

Total $ 873,125

As of June 30, 2025, and at all times during the period, the Company was in compliance with its financial debt covenants.

As of September 30, 2025, and at all times during the period, the Company was in compliance with its financial debt covenants.

Total debt is comprised of the following (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Term loans $ 633,125 $ 462,500

12 unchanged sentences

Amounts outstanding on the overdraft facility are included in other current liabilities in the condensed consolidated balance sheet.

As of June 30, 2025 and December 31, 2024, there was $ 75.0 million available and no amount outstanding on the overdraft facility.

As of September 30, 2025 and December 31, 2024, there was $ 75.0 million available and no amount outstanding on the overdraft facility.

The Company finances certain multi-year license agreements for internal-use software.

Upon execution, these arrangements are treated as a non-cash investing and financing activity for purposes of the condensed consolidated statements of cash flows.

During the six months ended June 30, 2025, the Company financed certain multi-year license agreements for internal-use software for $ 14.3 million, with annual payments through May 2027.

As of June 30, 2025, $ 9.5 million was outstanding on these agreements, of which $ 4.8 million and $ 4.7 million is included in other current liabilities and other noncurrent liabilities, respectively, in the condensed consolidated balance sheet.

During the nine months ended September 30, 2025, the Company financed certain multi-year license agreements for internal-use software for $ 14.3 million, with annual payments through May 2027.

As of September 30, 2025, $ 9.5 million was outstanding on these agreements, of which $ 4.8 million and $ 4.7 million is included in other current liabilities and other noncurrent liabilities, respectively, in the condensed consolidated balance sheet.

Software and Other Intangible Assets

The carrying amount and accumulated amortization of the Company's software assets subject to amortization at each balance sheet date are as follows (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance

1 unchanged sentence

Amortization of software for internal use is computed using the straight-line method over an estimated useful life of generally three to eight years .

Software for internal use amortization expense recorded during the three months ended June 30, 2025 and 2024, totaled $ 15.6 million and $ 15.8 million, respectively.

Software for internal use amortization expense recorded during the six months ended June 30, 2025 and 2024, totaled $ 31.2 million and $ 31.3 million, respectively.

Software for internal use amortization expense recorded during the three months ended September 30, 2025 and 2024, totaled $ 15.7 million and $ 16.6 million, respectively.

Software for internal use amortization expense recorded during the nine months ended September 30, 2025 and 2024, totaled $ 46.9 million and $ 47.9 million, respectively.

These software amortization expense amounts are reflected in depreciation and amortization in the condensed consolidated statements of operations.

The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance

Customer relationships $ 451,653 $ ( 300,461 ) $ 151,192 $ 444,385 $ ( 279,008 ) $ 165,377

Other intangible assets amortization expense recorded during the three months ended June 30, 2025 and 2024, totaled $ 5.3 million and $ 8.2 million, respectively.

Other intangible assets amortization expense recorded during the six months ended June 30, 2025 and 2024, totaled $ 10.5 million and $ 16.7 million, respectively.

Based on capitalized intangible assets as of June 30, 2025, estimated amortization expense amounts in future fiscal years are as follows (in thousands):

Other intangible assets amortization expense recorded during the three months ended September 30, 2025 and 2024, totaled $ 5.3 million and $ 7.1 million, respectively.

Other intangible assets amortization expense recorded during the nine months ended September 30, 2025 and 2024, totaled $ 15.8 million and $ 23.8 million, respectively.

Based on capitalized intangible assets as of September 30, 2025, estimated amortization expense amounts in future fiscal years are as follows (in thousands):

Fiscal Year Ending December 31, Software Amortization Other Intangible Assets Amortization

8 unchanged sentences

Employee Stock Purchase Plan

Shares issued under the 2017 Employee Stock Purchase Plan during the six months ended June 30, 2025 and 2024, totaled 35,586 and 51,397 , respectively.

Shares issued under the 2017 Employee Stock Purchase Plan during the nine months ended September 30, 2025 and 2024, totaled 59,163 and 71,181 , respectively.

Stock Options

7 unchanged sentences

Exercised ( 70,491 ) 17.89

Outstanding as of June 30, 2025 494,754 $ 18.71 1.01 $ 13,455,559

Exercisable as of June 30, 2025 494,754 $ 18.71 1.01 $ 13,455,559

The total intrinsic value of stock options exercised during the six months ended June 30, 2025 and 2024, was $ 1.5 million and $ 0.6 million, respectively.

There were no stock options granted during the six months ended June 30, 2025 or 2024.

Outstanding as of September 30, 2025 468,779 $ 18.76 0.77 $ 15,943,564

Exercisable as of September 30, 2025 468,779 $ 18.76 0.77 $ 15,943,564

The total intrinsic value of stock options exercised during the nine months ended September 30, 2025 and 2024, was $ 2.3 million and $ 2.4 million, respectively.

There were no stock options granted during the nine months ended September 30, 2025 or 2024.

Performance Share Awards

During the six months ended June 30, 2025, pursuant to the Company's 2020 Equity and Incentive Compensation Plan, the Company granted performance share awards with a total shareholder return component ("TSRs").

During the nine months ended September 30, 2025, pursuant to the Company's 2020 Equity and Incentive Compensation Plan, the Company granted performance share awards with a total shareholder return component ("TSRs").

These performance share awards are earned, if at all, based upon achievement, over a specified period that must not be less than one year and is typically a three-year performance period.

10 unchanged sentences

Change in payout rate 253,877 42.99

Nonvested as of June 30, 2025 1,131,137 $ 43.34

During the six months ended June 30, 2025, a total of 507,754 TSRs granted in fiscal 2022 vested and achieved a payout rate of 200 % based on the Company's total shareholder return as compared to a group of peer companies over a three-year performance period.

Nonvested as of September 30, 2025 1,097,647 $ 43.37

During the nine months ended September 30, 2025, a total of 507,754 TSRs granted in fiscal 2022 vested and achieved a payout rate of 200 % based on the Company's total shareholder return as compared to a group of peer companies over a three-year performance period.

The Company withheld 173,120 of those shares to pay the employee's portion of the minimum payroll withholding taxes.

The fair value of TSRs granted during the six months ended June 30, 2025 and 2024, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, Compensation - Stock Compensation , using the following weighted average assumptions:

Six months ended June 30,

The fair value of TSRs granted during the nine months ended September 30, 2025 and 2024, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, Compensation - Stock Compensation , using the following weighted average assumptions:

Nine months ended September 30,

Expected life (years) 2.3 2.7

10 unchanged sentences

Forfeited ( 193,077 ) 37.65

Nonvested as of June 30, 2025 2,015,654 $ 40.75

During the six months ended June 30, 2025, a total of 674,034 RSUs vested.

Nonvested as of September 30, 2025 1,942,680 $ 42.88

During the nine months ended September 30, 2025, a total of 903,561 RSUs vested.

The Company withheld 293,044 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

As of June 30, 2025, there was unrecognized compensation expense of $ 77.6 million related to RSUs and $ 30.2 million related to TSRs, which the Company expects to recognize over a weighted average period of 2.2 years and 1.7 years, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended June 30, 2025 and 2024, of $ 16.4 million and $ 10.7 million, respectively, with corresponding tax benefits of $ 2.6 million and $ 1.7 million, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the six months ended June 30, 2025 and 2024, of $ 28.0 million and $ 18.8 million, respectively, with corresponding tax benefits of $ 4.4 million and $ 3.1 million , respectively.

As of September 30, 2025, there was unrecognized compensation expense of $ 76.4 million related to RSUs and $ 21.9 million related to TSRs, which the Company expects to recognize over a weighted average period of 2.2 years and 1.6 years, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2025 and 2024, of $ 17.4 million and $ 11.3 million, respectively, with corresponding tax benefits of $ 2.5 million and $ 1.9 million, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the nine months ended September 30, 2025 and 2024, of $ 45.4 million and $ 30.2 million, respectively, with corresponding tax benefits of $ 6.9 million and $ 5.0 million , respectively.

Common Stock and Treasury Stock

1 unchanged sentence

In June 2024, the board approved the repurchase of the Company's common stock of up to $ 400.0 million, in place of the remaining purchase amounts previously authorized.

The Company repurchased 2,713,799 shares for $ 134.7 million during the six months ended June 30, 2025.

The Company repurchased 3,073,321 shares for $ 151.0 million during the nine months ended September 30, 2025.

Under the program to date, the Company has repurchased 65,941,158 shares for approximately $ 1.2 billion.

As of June 30, 2025, the maximum remaining amount authorized for purchase under the stock repurchase program was $ 223.5 million.

Subsequent to June 30, 2025, the Company has repurchased additional shares under the repurchase program.

As of September 30, 2025, the maximum remaining amount authorized for purchase under the stock repurchase program was $ 207.1 million.

Subsequent to September 30, 2025, the Company has repurchased additional shares under the repurchase program.

On October 31, 2025, the Board of Directors approved $ 500.0 million for the stock repurchase program in place of the remaining purchase amounts previously authorized.

Earnings Per Share

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

4 unchanged sentences

Diluted weighted average shares outstanding 103,895 106,018 105,264 106,552

The diluted earnings per share computation excludes 2.0 million and 1.0 million options to purchase shares, RSUs, and contingently issuable shares during the three months ended June 30, 2025 and 2024, respectively, as their effect would be anti-dilutive.

The diluted earnings per share computation excludes 1.7 million options to purchase shares, RSUs, and contingently issuable shares during both the six months ended June 30, 2025 and 2024, as their effect would be anti-dilutive.

Common stock outstanding as of June 30, 2025, and December 31, 2024, was 103,412,772 and 105,254,913 , respectively.

The diluted earnings per share computation excludes 1.7 million and 1.0 million options to purchase shares, RSUs, and contingently issuable shares during the three months ended September 30, 2025 and 2024, respectively, as their effect would be anti-dilutive.

The diluted earnings per share computation excludes 1.7 million and 1.2 million options to purchase shares, RSUs, and contingently issuable shares during the nine months ended September 30, 2025 and 2024, respectively, as their effect would be anti-dilutive.

Common stock outstanding as of September 30, 2025, and December 31, 2024, was 103,256,397 and 105,254,913 , respectively.

Other, net is comprised of the following items (in thousands):

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

34 unchanged sentences

Corporate and unallocated expenses includes global facilities and information technology costs and long-term product roadmap expenses in addition to corporate overhead costs that are not allocated to reportable segments.

The overhead costs relate to

human resources, finance, legal, accounting, and merger and acquisition activity.

The overhead costs relate to human resources, finance, legal, accounting, and merger and acquisition activity.

These costs along with depreciation and amortization and stock-based compensation are not considered when management evaluates segment performance.

The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Payment Software Biller Total

14 unchanged sentences

Income before income taxes

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Payment Software Biller Total

14 unchanged sentences

Income before income taxes

Six months ended June 30, 2025

Nine months ended September 30, 2025

Payment Software Biller Total

14 unchanged sentences

Income before income taxes

Six months ended June 30, 2024

Nine months ended September 30, 2024

Payment Software Biller Total

28 unchanged sentences

The following is revenue by primary solution category for the Company’s reportable segments for the periods indicated (in thousands):

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Payment Software Biller Total

6 unchanged sentences

Total $ 284,022 $ 198,337 $ 482,359

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Payment Software Biller Total

6 unchanged sentences

Total $ 272,151 $ 179,601 $ 451,752

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Payment Software Biller Total

6 unchanged sentences

Total $ 664,090 $ 614,092 $ 1,278,182

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Payment Software Biller Total

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

9 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

3 unchanged sentences

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Long-lived Assets

2 unchanged sentences

Total $ 1,913,048 $ 1,961,758

No single customer accounted for more than 10% of the Company's consolidated revenue during the three and six months ended June 30, 2025 and 2024.

No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three and six months ended June 30, 2025 and 2024.

For the three and six months ended June 30, 2025, the Company's effective tax rate was 32 % and 21 %, respectively.

The Company reported a tax charge on pretax income for both the three and six months ended June 30, 2025, with foreign entities recognizing earnings of $ 19.0 million and $ 99.2 million, respectively.

For the three and six months ended June 30, 2024, the Company's effective tax rate was 23 % and 30 %, respectively.

The Company reported a tax charge on pretax income for both the three and six months ended June 30, 2024, with foreign entities recognizing earnings of $ 51.7 million and $ 40.5 million, respectively.

No single customer accounted for more than 10% of the Company's consolidated revenue during the three and nine months ended September 30, 2025 and 2024.

The United Kingdom accounted for 12.0 % of the Company's consolidated revenue during the three months ended September 30, 2024.

No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three and nine months ended September 30, 2025, and nine months ended September 30, 2024.

For the three and nine months ended September 30, 2025, the Company's effective tax rate was 23 % and 22 %, respectively.

The Company reported a tax charge on pretax income for both the three and nine months ended September 30, 2025, with foreign entities recognizing earnings of $ 131.9 million and $ 231.1 million, respectively.

For the three and nine months ended September 30, 2024, the Company's effective tax rate was 24 % and 25 %, respectively.

The Company reported a tax charge on pretax income for both the three and nine months ended September 30, 2024, with foreign entities recognizing earnings of $ 107.6 million and $ 148.1 million, respectively.

The Company’s effective tax rate could fluctuate on a quarterly basis due to the occurrence of significant and unusual or infrequent items, such as vesting of stock-based compensation or foreign currency gains and losses.

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The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes.

As of both June 30, 2025, and December 31, 2024, the amount of unrecognized tax benefits for uncertain tax positions was $ 21.0 million, excluding related liabilities for interest and penalties of $ 0.1 million and $ 0.4 million, respectively.

As of both September 30, 2025, and December 31, 2024, the amount of unrecognized tax benefits for uncertain tax positions was $ 21.0 million, excluding no related liabilities for interest and penalties as of September 30, 2025 and $ 0.4 million as of December 31, 2024.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $ 0.8 million, due to the settlement of various audits and the expiration of statutes of limitation.

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OBBBA includes a broad range of tax reform provisions, such as the permanent extension of certain expiring provisions of the 2017 Tax Cuts and Jobs Act and modifications to the international tax framework.

The Company is currently assessing the impact OBBBA will have on its consolidated financial statements.

OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

The provisions that are effective in 2025 have not had a significant impact on the Company’s effective tax rate through September 30, 2025.

OBBBA also allows certain elections that the Company can make for the current year, which the Company continues to evaluate.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements