FIS Q2 2025: Revenue Grows, but Worldpay Investment Drives Net Loss

Fidelity National Information Services (FIS), a global leader in financial technology, recently released its financial results for the second quarter of 2025. For anyone following the FinTech space, FIS is a key player, providing the underlying technology that powers many of the world's banks and capital markets firms.

Let's dive into the numbers from their latest quarterly report filed with the SEC to see how the company is navigating a period of significant strategic change.

A Look at the Top Line

FIS posted total revenue of $2.62 billion for the second quarter, a solid 5% increase from the $2.49 billion reported in the same period last year. This growth was driven by its two primary business segments:

• Banking Solutions: This segment, which provides core processing and digital banking services, saw revenue climb 6% to $1.81 billion.
• Capital Market Solutions: Serving asset managers and trading firms, this division also grew revenue by 6% to $765 million.

The consistent growth in these core areas suggests healthy demand for the company's services. However, the revenue figure only tells part of the story. The journey from revenue to profit is where things get interesting.

The following flow diagram provides a visual breakdown of the company's income statement, illustrating how revenue is transformed into the final net earnings after accounting for all costs and expenses.

The Bottom Line: A Profitable Quarter Turns into a Loss

Despite the revenue growth, FIS reported a significant net loss of $470 million for the quarter. This is a dramatic reversal from the $238 million in net income it earned in Q2 2024.

So, what caused this nearly $700 million swing? The primary driver was a single line item: "Equity method investment earnings (loss), net of tax." This quarter, it registered a $598 million loss.

To understand this, we need a bit of context. In 2024, FIS sold a 55% majority stake in its Worldpay merchant solutions business. It now retains a 45% minority stake, which is treated as an equity method investment. This means FIS must record its share of Worldpay's profits or losses on its own income statement. The substantial loss recorded this quarter indicates that the now-separate Worldpay entity faced significant financial headwinds, and FIS's bottom line felt the impact directly.

Operational Health and Strategic Shifts

While the GAAP net loss is eye-catching, management often points to other metrics to gauge underlying business performance. One such metric is Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which excludes items like the Worldpay investment loss, acquisition costs, and purchase accounting amortization.

On this basis, the company's performance looks much stronger. Total Adjusted EBITDA for the quarter was $1.04 billion, up from $992 million a year ago. Both the Banking and Capital Markets segments saw their Adjusted EBITDA grow, suggesting the core operations remain profitable and are improving.

This quarter's results underscore that FIS is a company in transition. The ongoing financial noise from the Worldpay divestiture is overshadowing the steady operational performance of its core business. As noted in the filing, the company has an agreement to acquire Issuer Solutions while selling its remaining stake in Worldpay, signaling a clear strategic pivot. The challenge for FIS is to successfully navigate this transformation and convince the market that its sharpened focus on banking and capital markets technology will create long-term value, even as short-term results are clouded by these strategic moves.