Shift4 Posts $1.32B Q3 Revenue, Cuts 2026 EBITDA Outlook

Shift4 Payments, Inc. reported third-quarter gross revenue of $1.319 billion on Thursday, up 12% from a year earlier, and said it was cutting full-year 2026 adjusted EBITDA guidance while affirming adjusted free cash flow targets.

Net income rose to $40 million from $33 million a year earlier, according to the company’s shareholder letter filed with the Securities and Exchange Commission. Diluted earnings were $0.37 a share. Non-GAAP earnings were $1.49 a share. Adjusted EBITDA climbed 6% to $310 million, for a 48% margin on gross revenue less network fees. Adjusted free cash flow hit a quarterly record of $200 million, up 42%.

Volume and segment mix

Payment volume reached $61 billion, up 11%. Gross revenue less network fees was $648 million, up 10%, or 9% on an organic constant-currency basis. Payments-based gross revenue less network fees rose 18% to $402 million. Tax-free shopping revenue was $139 million, up 7%. Subscription and other revenue fell 10% to $107 million as the company said it was shifting some non-core lines toward payments-based revenue. Gross profit rose 6% to $434 million.

Guidance and buybacks

Shift4 revised 2026 volume guidance to $240 billion to $250 billion, tightened gross revenue less network fees to $2.45 billion to $2.46 billion, and cut adjusted EBITDA to $1.11 billion to $1.13 billion. It said those outlooks are roughly 4% and 6% below its original full-year guidance, citing travel disruption in tax-free shopping and other near-term pressures. Adjusted free cash flow guidance was left at $465 million to $475 million. Non-GAAP earnings guidance is $5.05 to $5.15 a share.

In the quarter, Shift4 repurchased about 4.2 million Class A shares for $190 million. Chief executive Taylor Lauber said results largely met guidance despite a tougher backdrop than in recent years.

Sources: Shift4, SEC Form 8-K Exhibit 99.1, The Motley Fool