Fidelity National Information Services Financial Model
Software Company Financials Example (Free Excel Download)
Fidelity National Information Services (FIS) is a global financial technology company that provides core banking, payment processing, and capital markets software to financial institutions and corporations.
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About this model
This model projects the standalone financial performance and free cash flow generation of Fidelity National Information Services (FIS) to determine its equity valuation and debt capacity following the divestiture of its Worldpay merchant business and the integration of the newly acquired Issuer Solutions business.
Fidelity National Information Services (FIS) is a global financial technology company that provides core banking, payment processing, and capital markets software to financial institutions and corporations. Following the 2024 sale of a 55% majority stake in its Worldpay Merchant Solutions business to GTCR, FIS operates as a more focused software and processing provider.
- Banking Solutions (approx. 70% of revenue): Provides core processing, digital banking, and payment solutions to retail and commercial banks.
- Capital Market Solutions (approx. 30% of revenue): Provides trading, asset services, treasury, and risk management software to buy-side and sell-side financial institutions.
- Key Geographies: Primarily the United States (approx. 75% of revenue), with significant international presence in the UK, Germany, and Australia.
- Business Model: Asset-light, software-as-a-service (SaaS), and transaction-based processing model with high recurring revenue (approx. 80% of total revenue).
- Competitive Position: A top-three global provider of core banking systems and capital markets software, competing directly with Fiserv, Jack Henry, and Broadridge.
- Recent Major Events: Completed the sale of a 55% stake in Worldpay in January 2024 (retaining a 45% equity method investment). In 2025, FIS acquired the Issuer Solutions business from Global Payments, integrating it into the Banking Solutions segment.
The downloadable Fidelity National Information Services financial model includes SEC-sourced historical financials, forecast assumptions, core operating schedules, and valuation outputs in an Excel workbook built for review and scenario analysis.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
Historicals & AssumptionsFidelity National Information Services financial modelCompany, Historicals & Assumptions used
Source: SEC EDGAR · values in USD
| Line item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | $9.34B | $9.72B | $9.83B | $10.13B | $10.68B |
| Gross profit | $3.35B | $3.46B | $3.66B | $3.80B | $3.94B |
| Operating income | $1.04B | $1.18B | $1.45B | $1.71B | $1.74B |
| Net income | $417.0M | -$16.75B | -$6.66B | $1.45B | $382.0M |
Forecast assumptions
Defaults used in the downloadable model. Forecast horizon: FY2026–FY2030.
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How to build a detailed financial model for Fidelity National Information Services
A complete walkthrough of every driver, margin, working-capital input, and capital-allocation assumption used in the downloadable model.
Revenue Deep Dive
Banking Solutions
- Segment Name: Banking Solutions
- Revenue Driver Formula: (Number of Financial Institution Clients x Average Contract Value) + (Transaction Volume x Processing Fee per Transaction)
- Historical Growth Rate: 2% to 6% over the last 3 years.
- Key Growth Levers and Headwinds: Growth is driven by banks modernising legacy core systems, digital banking adoption, and the integration of the Issuer Solutions acquisition. Headwinds include bank consolidation reducing the total number of distinct core processing contracts.
- Pricing Dynamics: Multi-year contractual agreements with embedded inflation-linked price escalators and volume-based tiering.
- Revenue Recognition Notes: Implementation and customisation fees are often deferred and recognised over the life of the contract, while SaaS and processing fees are recognised as services are delivered.
- Seasonality: Relatively stable throughout the year, with a slight uptick in Q4 due to software license renewals and year-end processing volumes.
Capital Market Solutions
- Segment Name: Capital Market Solutions
- Revenue Driver Formula: (Number of Institutional Clients x Software Subscription Fees) + (Professional Services Hours x Blended Hourly Rate)
- Historical Growth Rate: 6% to 9% over the last 3 years.
- Key Growth Levers and Headwinds: Driven by regulatory compliance requirements, transition to cloud-based SaaS deployments, and demand for real-time treasury management. Headwinds include capital markets volatility which can delay large IT transformation decisions.
- Pricing Dynamics: Transitioning from upfront perpetual licenses to recurring SaaS subscriptions, which temporarily depresses near-term revenue but increases lifetime value.
- Revenue Recognition Notes: Term software licenses are recognised upfront upon delivery, while SaaS and maintenance revenues are recognised rateably over the contract term.
- Seasonality: Strongest in Q4 (historically 28-30% of annual segment revenue) due to the timing of term license renewals and year-end IT budget flushes.
Cost Structure
Variable Costs / COGS
- Line-by-line breakdown: Cost of revenue includes data centre hosting, cloud infrastructure fees (AWS/Azure), third-party software royalties, and customer support personnel costs.
- Gross Margin Range: 37% to 40% (expanded recently due to cost savings and higher-margin license mix).
- Key Input Costs: Cloud computing compute/storage costs and technical labour.
- How COGS scales: Exhibits strong operating leverage. Once a software platform is built, adding incremental clients incurs minimal marginal cost.
Operating Expenses
- R&D: Typically 6% to 8% of revenue. Covers software engineering and platform modernisation. A significant portion of development costs for new software is capitalised.
- SG&A: Typically 14% to 16% of revenue. Includes sales commissions, marketing, executive compensation, and corporate overhead.
- Depreciation & Amortisation: High (approx. 12% to 15% of revenue) due to heavy amortisation of acquired intangible assets from historical M&A and capitalised software.
- Stock-Based Compensation: Typically 1.5% to 2.5% of revenue.
- Restructuring / One-time charges: Frequent, related to M&A integration (e.g., Issuer Solutions) and corporate cost-cutting programmes (Future Forward initiative).
Margin Profile
- Gross Margin: 37% to 40%.
- Adjusted EBITDA Margin: 40% to 42% consolidated. Banking Solutions operates at approx. 44% EBITDA margin, while Capital Market Solutions operates at approx. 53% to 55% EBITDA margin. Corporate overhead drags the consolidated figure down.
- Operating Margin (GAAP): 15% to 18% (heavily burdened by acquisition-related amortisation).
- Margin Trend: Expanding. The divestiture of the lower-margin Worldpay business and the execution of cost-saving initiatives have structurally improved the margin profile.
Balance Sheet Structure
- Total Assets: Approximately $50 billion to $55 billion.
- Key Asset Categories: Goodwill and Intangible Assets dominate the balance sheet due to a history of large acquisitions. The 45% retained equity interest in Worldpay is held as an Equity Method Investment.
- Goodwill & Intangibles: Typically 65% to 75% of total assets.
- Working Capital Profile:
- Days Sales Outstanding (DSO): 60 to 70 days.
- Days Inventory Outstanding (DIO): N/A (software/services business).
- Days Payable Outstanding (DPO): 35 to 45 days.
- Net Working Capital: Generally negative or slightly positive as a % of revenue. Deferred revenue (unearned revenue) provides a working capital benefit as clients pay for software maintenance upfront.
- PP&E: Minimal (approx. 2% to 3% of assets), primarily consisting of data centre equipment and leasehold improvements.
- Right-of-use assets: Material but manageable, representing leased office space and data centres.
Capital Expenditure & Investment
- Capex as % of revenue: 8.0% to 9.5% (guided to approx. 8.5% to 9.0% for 2026).
- Maintenance vs. Growth: Heavily skewed towards growth and modernisation.
- Capitalised Software: A major component of capex. FIS capitalises internal software development costs, which are then amortised over 3 to 5 years.
- M&A Pattern: Serial acquirer transitioning to bolt-on acquisitions. The recent Issuer Solutions acquisition represents a return to strategic M&A after the Worldpay divestiture.
- Typical Acquisition Multiple: Historically 12x to 15x EV/EBITDA for software assets.
Debt & Capital Structure
- Total Debt: Approximately $9.0 billion to $12.0 billion depending on recent M&A funding.
- Debt/EBITDA Ratio: Target gross leverage is 2.8x. Currently operating around 2.9x to 3.0x.
- Credit Rating: Investment grade (BBB/Baa2).
- Key Debt Instruments: Senior unsecured notes (bonds) across USD, EUR, and GBP, supported by a revolving credit facility.
- Maturity Profile: Well-laddered, with average maturity exceeding 5 years.
- Interest Rate Profile: Predominantly fixed-rate bonds, with a weighted average cost of debt around 3.5% to 4.5%.
- Share Repurchase Programme: Highly active. Repurchased $4.0 billion in 2024 and targets $1.2 billion to $1.3 billion annually.
- Dividend Policy: Targets a payout ratio of approximately 35% of adjusted net earnings (excluding equity method investment income). Current quarterly dividend is $0.44 per share.
Cash Flow Characteristics
- Operating Cash Flow Conversion: High. OCF is typically 1.2x to 1.4x GAAP Net Income due to heavy non-cash amortisation charges.
- Free Cash Flow Margin: Adjusted FCF margin typically runs at 18% to 22% of revenue.
- Major Non-Cash Items: Depreciation, amortisation of acquired intangibles, stock-based compensation, and deferred tax adjustments.
- Working Capital Cash Flow Impact: Deferred revenue growth provides a structural source of cash during periods of high software sales.
- Cash Tax Rate: Typically lower than the statutory rate due to R&D tax credits and the tax deductibility of certain goodwill amortisation.
Sheet Structure
- Assumptions: Hardcoded inputs for macroeconomic drivers, segment growth rates, margin targets, tax rates, and capital allocation policies.
- Scenarios: Scenario toggles (Base, Bull, Bear) driving the Assumptions sheet.
- Revenue Build: Segment-level revenue projections for Banking Solutions and Capital Market Solutions, splitting out recurring vs. non-recurring revenue.
- Income Statement: Consolidated P&L from Revenue down to Net Income, including the Equity Method Investment income line for the 45% Worldpay stake.
- Balance Sheet: Assets, Liabilities, and Shareholders' Equity, explicitly breaking out Goodwill, Intangibles, Deferred Revenue, and the Worldpay Equity Investment.
- Cash Flow Statement: Indirect method starting from Net Income, adjusting for D&A, SBC, and working capital changes to arrive at Operating Cash Flow.
- Debt Schedule: Tranche-by-tranche debt build, tracking maturities, interest expense, and mandatory vs. optional repayments.
- Working Capital: Schedules for Accounts Receivable, Prepaid Expenses, Accounts Payable, and Deferred Revenue based on days outstanding metrics.
- Depreciation & Amortisation: Waterfall schedules for PP&E depreciation and intangible asset amortisation, including capitalised software.
- Shareholders Equity: Tracking share count, share repurchases, dividends paid, and retained earnings.
- DCF Valuation: Unlevered free cash flow calculation, WACC build, terminal value, and implied share price.
Key Financial Relationships
- Banking Solutions Revenue = Prior Year Banking Solutions Revenue x (1 + Banking Solutions Growth Rate)
- Capital Market Solutions Revenue = Prior Year Capital Market Solutions Revenue x (1 + Capital Market Solutions Growth Rate)
- Total Revenue = Banking Solutions Revenue + Capital Market Solutions Revenue + Corporate and Other Revenue
- Segment Adjusted EBITDA = Segment Revenue x Segment Adjusted EBITDA Margin
- Consolidated Adjusted EBITDA = Banking Solutions EBITDA + Capital Market Solutions EBITDA + Corporate and Other EBITDA (which is typically a negative overhead allocation)
- Amortisation of Intangibles = Prior Year Intangibles Balance x Blended Amortisation Rate
- Capitalised Software Additions = Total Revenue x Capitalised Software % of Revenue
- Deferred Revenue Balance = Total Revenue x (Deferred Revenue Days / 365)
- Interest Expense = Average Total Debt Balance x Weighted Average Interest Rate
- Equity Method Investment Income (Worldpay) = Projected Worldpay Net Income x 45%
- Dividends Paid = (Adjusted Net Earnings - Equity Method Investment Income) x Target Payout Ratio (35%)
- Share Repurchases = Target Annual Repurchase Amount / Average Share Price for the Period
Cross-Sheet Dependencies
- The Revenue Build feeds the top line of the Income Statement and drives the Accounts Receivable and Deferred Revenue calculations on the Working Capital sheet.
- The Income Statement generates Net Income, which is the starting point for the Cash Flow Statement.
- The Cash Flow Statement calculates Free Cash Flow, which dictates the cash available for optional debt paydown or share repurchases on the Debt Schedule and Shareholders Equity sheets.
- The Debt Schedule calculates Interest Expense, which flows back into the Income Statement, creating a circular reference that must be managed with a toggle switch.
- The Depreciation & Amortisation sheet feeds operating expenses on the Income Statement and non-cash add-backs on the Cash Flow Statement.
Sign Convention
- Revenues and Assets: Entered and displayed as positive numbers.
- Expenses and Liabilities: Entered as positive numbers in assumption schedules but subtracted in formulas (e.g., Gross Profit = Revenue - COGS).
- Cash Flow Statement: Cash inflows are positive; cash outflows (including Capex, Dividends, and Share Repurchases) are negative.
- Debt Schedule: Debt issuances are positive; debt repayments are negative.
Things Most Likely to Go Wrong
- Worldpay Spin-off Accounting: The model must exclude Worldpay from consolidated revenue and operating income, treating the retained 45% stake strictly as an Equity Method Investment below the operating line.
- Issuer Solutions Pro-Forma: The 2025 acquisition of Issuer Solutions distorts year-over-year growth rates for Banking Solutions. The model must separate organic growth from M&A contribution.
- Capitalised Software: FIS capitalises a large amount of software development. Failing to model this accurately will distort both Operating Cash Flow (which looks artificially high) and Free Cash Flow.
- Corporate Allocations: Segment EBITDA margins (44% and 55%) do not blend to the consolidated margin (41%) because "Corporate and Other" contains significant unallocated overhead. This must be modelled as a separate negative EBITDA line.
- Deferred Tax Liabilities: The Worldpay transaction created complex deferred tax liabilities. The model must separate cash taxes from GAAP tax expense to calculate FCF correctly.
- Adjusted vs. GAAP Metrics: FIS heavily promotes Adjusted EBITDA and Adjusted EPS. The model must clearly bridge GAAP Net Income to Adjusted Earnings by adding back acquisition amortisation and restructuring charges.
- Share Count Reduction: With $1.2 billion in annual buybacks, the share count declines rapidly. EPS calculations must use a dynamically calculated weighted average share count, not a static figure.
- Interest Income vs. Expense: Cash balances earn interest, while debt incurs interest. Netting them out masks the true cost of debt; they must be modelled on separate lines.
Validation Checks
- "Consolidated Adjusted EBITDA margin should remain in the 40% to 43% range; flag if it drifts outside this band."
- "Banking Solutions revenue growth should not exceed 6% organically; flag if higher."
- "Capital Market Solutions EBITDA margin should remain between 52% and 56%."
- "Capex as a % of revenue must remain between 8.0% and 9.5% based on management guidance."
- "Gross Leverage (Total Debt / Adjusted EBITDA) should trend towards the 2.8x management target."
- "Dividend payout ratio must equal approximately 35% of Adjusted Net Earnings excluding Equity Method Income."
- "Balance sheet must balance: Total Assets = Total Liabilities + Equity in every projected period."
- "Free Cash Flow conversion (Adjusted FCF / Adjusted Net Income) should remain above 1.0x."
Key Assumptions (Default Values)
| Assumption | Default Value | Unit | Rationale |
|---|---|---|---|
| Banking Solutions Organic Growth | 4.5 | % | Based on 2025 pro-forma organic growth guidance. |
| Capital Market Solutions Growth | 6.0 | % | Midpoint of 2026 management guidance (5.5% to 6.5%). |
| Corporate & Other Revenue | 450 | $ Millions | Run-rate based on 2025 actuals. |
| Banking Solutions EBITDA Margin | 44.0 | % | Historical average and management target. |
| Capital Market Solutions EBITDA Margin | 54.0 | % | Historical average and management target. |
| Corporate Overhead (EBITDA drag) | -475 | $ Millions | Run-rate based on 2025 actuals. |
| Capex as % of Revenue | 8.8 | % | Midpoint of management guidance (approx. 8.5% to 9.0%). |
| Effective Tax Rate (Adjusted) | 16.0 | % | Based on recent historical adjusted tax rates. |
| Target Gross Leverage | 2.8 | x | Management stated target for Total Debt / Adjusted EBITDA. |
| Weighted Average Cost of Debt | 4.2 | % | Estimated based on current bond yields and facility rates. |
| Annual Share Repurchases | 1,250 | $ Millions | Management guidance of $1.2B to $1.3B for 2025/2026. |
| Dividend Payout Ratio | 35.0 | % | Stated management policy (excluding EMI). |
| DSO (Days Sales Outstanding) | 65 | Days | Historical average from balance sheet. |
| DPO (Days Payable Outstanding) | 40 | Days | Historical average from balance sheet. |
| WACC | 8.5 | % | Standard assumption for mature, investment-grade software/payments company. |
| Terminal Growth Rate | 2.5 | % | Long-term inflation and GDP growth proxy. |
Data Sources & Benchmarks
- SEC Filings: FIS Investor Relations website (investor.fisglobal.com) and SEC EDGAR database for 10-K and 10-Q filings.
- Presentations: Q4 2025 Earnings Presentation and 2026 Outlook (released February 2026).
- Key Peers for Benchmarking: Fiserv (FI), Jack Henry & Associates (JKHY), Broadridge Financial Solutions (BR), and Global Payments (GPN).
- Industry Data: Gartner and Forrester reports on core banking system market share and IT spend in capital markets.
- Consensus Estimates: FactSet or Bloomberg for forward-looking street estimates on revenue and EBITDA margins.
Sources
- Fidelity National Information Services, Inc. Form 10-K for the fiscal year ended December 31, 2024.
- FIS Q4 2024 Earnings Release and Supplemental Financial Information (February 11, 2025).
- FIS Q2 2025 Earnings Release (August 5, 2025).
- FIS Q3 2025 Earnings Presentation (November 5, 2025).
- FIS Q4 2025 Earnings Release and 2026 Outlook (February 24, 2026).
- Macrotrends historical financial data for FIS (EBITDA and Long Term Debt).
Do more with the Fidelity National Information Services model
Frequently asked
What does Fidelity National Information Services (FIS) do after its recent divestiture?+
Fidelity National Information Services (FIS) is a global financial technology company providing core banking, payment processing, and capital markets software. Following the divestiture of its Worldpay merchant business, FIS now operates as a more focused software and processing provider for financial institutions and corporations.
How does Fidelity National Information Services (FIS) generate its revenue?+
FIS generates revenue primarily through its Banking Solutions, which account for approximately 70% of total revenue, and Capital Market Solutions, making up about 30%. Its business model is asset-light, software-as-a-service (SaaS), and transaction-based processing, with high recurring revenue.
What are the key capital expenditure assumptions in the FIS financial model?+
The financial model assumes Capex as a percentage of revenue is approximately 2.19%. FIS's capital expenditure strategy is heavily skewed towards growth and modernization, with capitalized internal software development costs being a major component.
What is the primary purpose of the financial model for Fidelity National Information Services (FIS)?+
The financial model aims to project the standalone financial performance and free cash flow generation of FIS. This projection is used to determine its equity valuation and debt capacity following significant business changes, including the Worldpay divestiture and Issuer Solutions integration.
What is the assumed revenue growth rate for Fidelity National Information Services (FIS) in the financial model?+
The financial model assumes a Revenue_Growth of approximately -1.24%. This forecast covers the period from FY2026 to FY2030, reflecting the company's performance post-divestiture and integration of new acquisitions.
Is there a downloadable financial model available for Fidelity National Information Services (FIS)?+
Yes, an Excel financial model for Fidelity National Information Services (FIS) is available for download. This model projects the company's financial performance and free cash flow generation from FY2026 to FY2030, enabling users to analyze its valuation and debt capacity.
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