Global Payments Financial Model
Payments Company Financials Example (Free Excel Download)
Global Payments Inc. is a leading multinational financial technology company that provides payment technology and software solutions to merchants globally.
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About this model
This model provides a comprehensive equity valuation and pro-forma scenario analysis for Global Payments Inc., specifically designed to help an equity analyst evaluate the company's 2026 transformation into a pure-play merchant acquirer following the $22.7 billion acquisition of Worldpay and the $13.5 billion divestiture of its Issuer Solutions business.
Global Payments Inc. is a leading multinational financial technology company that provides payment technology and software solutions to merchants globally. The company enables businesses to accept payments across in-store, online, and mobile channels, leveraging a software-led, embedded commerce strategy.
Historically, the business operated in two primary segments: Merchant Solutions (approximately 75% of 2025 adjusted net revenue) and Issuer Solutions (approximately 25% of 2025 adjusted net revenue). Geographically, North America accounts for roughly 80% of revenue, followed by Europe at 15% and Asia at 5%. The business model is highly scalable and transaction-based, generating revenue primarily through fees charged as a percentage of total payment volume and fixed fees per transaction. Global Payments holds a top-tier competitive position in the global acquiring market, competing directly with Fiserv, Adyen, Stripe, and Block. The company has undergone a massive structural transformation recently; in January 2026, it completed the acquisition of Worldpay for $22.7 billion and simultaneously divested its Issuer Solutions business (TSYS) to FIS for $13.5 billion, repositioning itself entirely as a pure-play merchant solutions provider.
The downloadable Global Payments 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 & AssumptionsGlobal Payments financial modelCompany, Historicals & Assumptions used
Source: SEC EDGAR · values in USD
| Line item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | $8.52B | $6.83B | $7.38B | $7.74B | $7.71B |
| Gross profit | $4.75B | $4.61B | $5.31B | $5.70B | $5.59B |
| Operating income | $1.36B | $309.5M | $1.32B | $1.97B | $1.75B |
| Net income | $965.5M | $111.5M | $986.2M | $1.57B | $1.40B |
Forecast assumptions
Defaults used in the downloadable model. Forecast horizon: FY2026–FY2030.
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How to build a detailed financial model for Global Payments
A complete walkthrough of every driver, margin, working-capital input, and capital-allocation assumption used in the downloadable model.
Revenue Deep Dive
Merchant Solutions
- Segment name: Merchant Solutions
- Revenue driver formula: Total Payment Volume (TPV) x Net Revenue Yield (Take Rate) + Software/Subscription Fees
- Historical growth rate: 6% to 8% organic constant currency CAGR
- Key growth levers and headwinds: Growth is driven by the shift from cash to electronic payments, expansion in vertical-specific software (ISV partnerships), and international penetration (particularly in LATAM and Europe). Headwinds include macroeconomic consumer spending slowdowns and intense pricing competition from digital-first disruptors like Adyen and Stripe.
- Pricing dynamics: Highly competitive but sticky. Pricing is typically a mix of basis points on transaction value plus a fixed fee per swipe/click. Software-led merchants exhibit lower price sensitivity and higher retention.
- Revenue recognition notes: Revenues are recognised as transactions are processed. The company reports "Adjusted Net Revenue" which excludes gross-up related payments (interchange and assessment fees passed through to networks).
- Seasonality: Q4 is typically the strongest quarter due to holiday retail spending, while Q1 is historically the weakest.
Issuer Solutions (Discontinued Operations post-Jan 2026)
- Segment name: Issuer Solutions
- Revenue driver formula: Active Accounts on File (AOF) x Revenue per Account + Managed Services Fees
- Historical growth rate: 4% to 5% CAGR
- Key growth levers and headwinds: Driven by traditional bank outsourcing of credit card processing infrastructure. Headwinds included bank consolidation and the loss of legacy contracts.
- Pricing dynamics: Long-term, multi-year contractual agreements with financial institutions, featuring minimum volume commitments and tiered pricing.
- Revenue recognition notes: Recognised over time as processing services are rendered.
- Seasonality: Relatively stable throughout the year, with slight upticks in Q4 corresponding to higher card usage.
Cost Structure
Variable Costs / COGS
- Line-by-line breakdown: Cost of Service includes processing costs, network fees, equipment costs (point-of-sale terminals), and customer support operations.
- Gross margin range: Not explicitly reported on a GAAP basis due to the blending of operating expenses, but implied gross margins on net revenue typically range from 55% to 60%.
- Key input costs and commodity exposures: Cloud hosting fees, network assessment fees, and hardware costs for POS terminals.
- How COGS scales with revenue: Highly scalable. Once the processing infrastructure is built, incremental transactions carry near-zero marginal cost, resulting in significant operating leverage.
Operating Expenses
- R&D: Not broken out separately; technology and development costs are embedded within Cost of Service and SG&A. The company capitalises significant software development costs.
- SG&A: Includes sales force commissions, marketing, and administrative overhead. Sales commissions are a major component, scaling with new merchant acquisition.
- Depreciation & Amortisation: Extremely high (historically 10% to 15% of GAAP revenue) due to the amortisation of acquired intangibles from serial acquisitions (TSYS, EVO Payments, Worldpay).
- Stock-Based Compensation: Typically runs at 2% to 3% of adjusted net revenue.
- Restructuring / one-time charges: Frequent and material, given the company's history of transformational M&A and subsequent integration programmes.
Margin Profile
- Gross margin, EBITDA margin, operating margin, net margin: Adjusted operating margin expanded to 44.2% in 2025. GAAP operating margins are significantly lower (typically 20% to 25%) due to acquisition-related amortisation.
- Margin trend: Expanding. Management targets 50 to 150 basis points of adjusted operating margin expansion annually, driven by synergy realisation from acquisitions and operating leverage.
- Segment-level margins: Merchant Solutions historically operated at roughly 48% to 50% adjusted operating margin, while Issuer Solutions operated at roughly 44% to 46%.
Balance Sheet Structure
- Total assets: $53.3 billion at the end of 2025 (inflated by cash held for the January 2026 Worldpay close).
- Key asset categories: Goodwill, acquired intangible assets, settlement assets, and capitalised software.
- Goodwill & intangibles as % of total assets: Typically exceeds 60% of total assets due to the roll-up strategy (TSYS, EVO, Worldpay).
- Working capital profile:
- Days Sales Outstanding (DSO): 25 to 35 days.
- Days Inventory Outstanding (DIO): Minimal (only POS hardware).
- Days Payable Outstanding (DPO): 30 to 40 days.
- Net working capital as % of revenue: Heavily distorted by settlement assets and obligations. Core operating working capital is slightly negative, providing a modest source of cash as the business grows.
- PP&E: Asset-light. PP&E consists mostly of corporate offices, data centre equipment, and POS terminals leased to merchants.
- Right-of-use assets / operating leases: Material but manageable, primarily related to office space and data centres.
Capital Expenditure & Investment
- Capex as % of revenue: 5.0% to 6.0% of adjusted net revenue.
- Maintenance capex vs. growth capex: Approximately 30% maintenance (hardware, basic IT) and 70% growth (capitalised software development for new payment gateways and ISV integrations).
- Major capex programmes underway or planned: Integration of Worldpay technology stacks and migration to cloud-based processing environments.
- Capitalised software / development costs: Highly material. A significant portion of the technology team's compensation is capitalised rather than expensed.
- M&A pattern: Transformational acquirer. The company executes multi-billion dollar deals every few years (TSYS in 2019, EVO in 2023, Worldpay in 2026) alongside continuous bolt-on acquisitions in vertical software.
- Typical acquisition multiple paid: 12x to 16x forward EBITDA for payment processors; higher for vertical software assets.
Debt & Capital Structure
- Total debt: $21.4 billion at the end of 2025 ($19.5 billion long-term, $1.9 billion current).
- Debt/EBITDA ratio: Spikes above 4.0x immediately following major acquisitions, with management targeting rapid deleveraging to approximately 3.0x within 18 to 24 months.
- Credit rating: Investment grade (typically BBB- / Baa3), which management is highly committed to maintaining.
- Key debt instruments: Senior unsecured notes, term loans, and a large revolving credit facility.
- Maturity profile: Staggered, but with significant near-term maturities related to the bridge financing for the Worldpay acquisition.
- Interest rate profile: Approximately 94% fixed (via swaps and fixed-rate notes) with a weighted average cost of debt historically around 3.5% to 4.5%.
- Covenants: Standard leverage and interest coverage ratios tied to the credit facility.
- Share repurchase programme: Highly active. The board authorised a $2.5 billion programme in early 2026, including a $550 million accelerated share repurchase plan.
- Dividend policy: Modest payout. The dividend is $0.25 per share quarterly ($1.00 annually), representing a yield of roughly 1.0% to 1.5%.
Cash Flow Characteristics
- Operating cash flow conversion: Strong. OCF was $2.7 billion in 2025.
- Free cash flow margin: Adjusted free cash flow typically represents 20% to 25% of adjusted net revenue.
- Major non-cash items that bridge net income to OCF: Massive D&A (from acquired intangibles) and stock-based compensation.
- Working capital cash flow impact: Settlement timing can cause massive quarter-to-quarter swings in OCF, but these net out over the full year.
- Capex intensity: Low to moderate (5% to 6% of revenue), but capitalised software is a significant cash drain not reflected in operating expenses.
- Cash tax rate vs. GAAP effective tax rate: Cash taxes are typically lower than the GAAP statutory rate due to the tax deductibility of goodwill amortisation from certain asset purchases.
Sheet Structure
- Assumptions: Hardcoded drivers for macroeconomic inputs, segment growth rates, margin targets, and capital allocation policies.
- Pro-Forma M&A Adjustments: A dedicated sheet to model the January 2026 structural changes. It must subtract the Issuer Solutions business (revenue, costs, assets) and add the Worldpay business to create a clean 2026 base.
- Income Statement: GAAP consolidated income statement, followed by a reconciliation to Adjusted Net Revenue, Adjusted Operating Income, and Adjusted EPS.
- Revenue Build: Detailed build for Merchant Solutions (TPV, Take Rate, ISV software fees) and a stub/discontinued line for Issuer Solutions.
- Operating Expenses: Build for Cost of Service, SG&A, D&A (split between organic and acquisition-related), and SBC.
- Balance Sheet: Standard assets and liabilities, with specific breakouts for Settlement Assets, Settlement Obligations, Goodwill, and Acquired Intangibles.
- Cash Flow Statement: OCF, Capex, Capitalised Software, M&A cash flows, Debt issuance/repayment, and Share repurchases.
- Debt Schedule: Tranche-by-tranche build of term loans and senior notes, calculating interest expense and tracking maturities.
- Working Capital Schedule: DSO, DPO, and the specific mechanics of settlement asset/liability timing.
- DCF Valuation: Unlevered free cash flow build, WACC calculation, terminal value, and implied share price.
Key Financial Relationships
- "Merchant Adjusted Net Revenue = Total Payment Volume x Net Take Rate"
- "Adjusted Net Revenue = GAAP Revenue - Gross-up Related Payments (Interchange/Network Fees)"
- "Adjusted Operating Income = Adjusted Net Revenue - Adjusted Cost of Service - Adjusted SG&A"
- "Adjusted Operating Margin = Adjusted Operating Income / Adjusted Net Revenue"
- "GAAP D&A = Organic D&A + Acquisition-Related Intangible Amortisation"
- "Adjusted Net Income = GAAP Net Income + Acquisition Amortisation + SBC + Restructuring Costs - Tax Impact of Adjustments"
- "Adjusted EPS = Adjusted Net Income / Diluted Shares Outstanding"
- "Free Cash Flow = Operating Cash Flow - PP&E Capex - Capitalised Software Development Costs"
- "Ending Settlement Assets = Beginning Settlement Assets + Change in Settlement Timing" (Must exactly mirror Settlement Obligations in the long run).
- "Interest Expense = Average Debt Balance x Weighted Average Interest Rate"
- "Share Count Reduction = Share Repurchase Spend / Average Share Price"
- "Pro-Forma 2026 Revenue = 2025 Merchant Revenue + Worldpay Revenue - Issuer Solutions Revenue"
Cross-Sheet Dependencies
- The Pro-Forma M&A Adjustments sheet is the critical foundation; it feeds the Revenue Build, Operating Expenses, and Balance Sheet to establish the 2026 starting point.
- The Revenue Build feeds the top line of the Income Statement.
- The Income Statement generates Net Income, which anchors the top of the Cash Flow Statement.
- The Cash Flow Statement determines the cash available for debt paydown or share repurchases, feeding the Debt Schedule and Assumptions (share count).
- The Debt Schedule calculates interest expense, which flows back to the Income Statement (creating a circular reference that must be managed with a toggle).
- The Working Capital Schedule calculates changes in operating assets/liabilities, feeding the Cash Flow Statement.
Sign Convention
- Revenues, Assets, and Equity: Positive.
- Expenses and Liabilities: Positive in their specific build schedules, but subtracted in aggregation formulas (e.g., Gross Profit = Revenue - COGS).
- Cash Flow Statement: Inflows (net income, D&A, increase in liabilities) are positive. Outflows (capex, dividends, debt repayment, increase in assets) are negative.
- Contra-accounts: Accumulated depreciation and treasury stock are entered as negative numbers on the balance sheet.
Things Most Likely to Go Wrong
- "Failing to model the 2026 structural shift correctly: The model must remove $2.16 billion of 2025 Issuer Solutions revenue and add Worldpay financials to avoid massive year-over-year distortion."
- "Confusing GAAP Revenue with Adjusted Net Revenue: The company passes through billions in interchange fees. Valuations and margins must be based on Adjusted Net Revenue."
- "Mishandling settlement assets and obligations: These line items can swing by billions of dollars at quarter-end due to the timing of weekends and bank holidays. They must be modelled to offset each other."
- "Ignoring capitalised software: The company capitalises a large portion of its R&D. If this is not subtracted from OCF, Free Cash Flow will be dangerously overstated."
- "Underestimating acquisition-related amortisation: GAAP earnings are heavily depressed by the amortisation of intangibles from TSYS, EVO, and Worldpay. Adjusted EPS is the correct metric for P/E valuation."
- "Double-counting share repurchases: The company announced a $550 million accelerated share repurchase in early 2026. This must be modelled as an immediate reduction in share count, not spread evenly across the year."
- "Miscalculating interest expense post-M&A: The $22.7 billion Worldpay acquisition significantly alters the debt stack. The model must reflect the new debt tranches and current interest rates."
- "Stock-based compensation runs at roughly 2% to 3% of revenue; excluding it from 'adjusted' figures flatters margins, so the DCF must treat SBC as a real economic cost."
Validation Checks
- "Adjusted Operating Margin should expand by 50 to 150 basis points annually, landing in the 45.0% to 46.5% range post-2026."
- "Adjusted Free Cash Flow conversion must remain between 90% and 100% of Adjusted Net Income."
- "Capex (including capitalised software) should consistently track at 5.0% to 6.0% of Adjusted Net Revenue."
- "Debt/EBITDA should spike in 2026 due to the Worldpay deal but must trend downward toward the company's 3.0x target by 2028."
- "Balance sheet must balance: Total Assets = Total Liabilities + Equity in every period, including the pro-forma M&A adjustment period."
- "Constant currency organic revenue growth for the Merchant segment should not exceed 8% without triggering a flag, as this is the top end of management's historical guidance."
- "The effective tax rate on adjusted earnings should remain between 18% and 20%."
- "Dividend payout ratio should remain extremely low (under 10% of adjusted net income), as capital return is heavily skewed toward share repurchases."
Key Assumptions (Default Values)
| Assumption | Default Value | Unit | Rationale |
|---|---|---|---|
| Merchant Solutions Organic TPV Growth | 6.5 | % | Mid-point of management's historical 6-8% growth guidance |
| Adjusted Operating Margin (2026) | 45.7 | % | 2025 base of 44.2% plus management guidance of ~150 bps expansion |
| Capex & Cap Software / Adj. Net Revenue | 5.5 | % | Historical average required to maintain tech stack and POS terminals |
| Effective Tax Rate (Adjusted) | 19.0 | % | Blended global tax rate based on recent historical filings |
| Weighted Average Cost of Debt | 4.5 | % | Reflects the 94% fixed rate profile and recent rate environment |
| 2026 Share Repurchase Spend | 2,500 | $ Millions | Matches the board authorisation announced in February 2026 |
| Annual Dividend per Share | 1.00 | $ | Maintained at $0.25 quarterly per management policy |
| Target Net Leverage (Debt/EBITDA) | 3.0 | x | Stated management target for capital structure |
| WACC | 8.5 | % | Standard cost of capital for a large-cap, investment-grade payments processor |
| Terminal Growth Rate | 2.5 | % | Aligns with long-term global GDP and inflation expectations |
| DSO (Days Sales Outstanding) | 30 | Days | Historical average for merchant acquiring receivables |
| DPO (Days Payable Outstanding) | 35 | Days | Historical average for vendor and network payables |
Data Sources & Benchmarks
- Filings: SEC EDGAR (Global Payments Inc. CIK: 0001123360), specifically the 2025 Form 10-K and Q4 2025 Earnings Release.
- Investor Relations: investors.globalpayments.com (for trended financial highlight spreadsheets and M&A presentation decks).
- Key Peers: Fiserv (FI), Block (SQ), Adyen (ADYEN), PayPal (PYPL).
- Industry Data: Nilson Report (for global payment volume and market share data), Edgar, Dunn & Company (for merchant acquiring benchmarks).
- Consensus Estimates: FactSet or Bloomberg for forward-looking EPS and revenue consensus to validate the 2026 pro-forma baseline.
Sources
Do more with the Global Payments model
Frequently asked
What does Global Payments Inc. do?+
Global Payments Inc. is a leading multinational financial technology company that provides payment technology and software solutions to merchants globally. The company enables businesses to accept payments across in-store, online, and mobile channels, leveraging a software-led, embedded commerce strategy.
How does Global Payments generate revenue?+
Global Payments operates a highly scalable and transaction-based business model. Revenue is primarily generated through fees charged as a percentage of total payment volume and fixed fees per transaction.
What are the key revenue growth and margin assumptions in the Global Payments financial model?+
The financial model for Global Payments assumes a revenue growth rate of approximately 10.7%. Key margin assumptions include COGS as a percentage of revenue at about 41.2% and Selling, General, and Administrative expenses at roughly 42.4% of revenue.
What is Global Payments' capital expenditure strategy?+
Global Payments' capital expenditure typically ranges from 5.0% to 6.0% of adjusted net revenue, with approximately 70% allocated to growth initiatives like capitalised software development. The company also engages in transformational M&A, executing multi-billion dollar deals every few years.
What is the purpose of the Global Payments equity valuation model?+
The Global Payments equity valuation model provides a comprehensive equity valuation and pro-forma scenario analysis. It is specifically designed to help equity analysts evaluate the company's 2026 transformation into a pure-play merchant acquirer following significant acquisitions and divestitures.
Can I download an Excel financial model for Global Payments (GPN)?+
Yes, an Excel financial model for Global Payments (GPN) is available for download. This model offers a forecast horizon from FY2026 through FY2030, allowing for detailed financial analysis.
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