Global Payments Inc reported a modest year-over-year revenue decrease in QQ1 2025, with sustained profitability and strong cash generation. Revenue totaled $2.412 billion, down 0.3% year over year and 4.1% quarter over quarter, while gross profit reached $1.490 billion for a gross margin of approximately 61.8%. Operating income was $471 million (operating margin ~19.5%), and net income stood at $306 million (net margin ~12.7%), translating to diluted EPS of $1.24. EBITDA was $962 million (EBITDA margin ~39.9%). The firm generated $555 million of operating cash flow and free cash flow of about $427.5 million, ending the period with a cash balance of $3.149 billion.
On the balance sheet, total assets were $47.62 billion with goodwill of $26.42 billion and intangible assets of $8.67 billion, while total liabilities were $24.59 billion and total stockholders’ equity was $22.25 billion. The current ratio and quick ratio both stood at 0.94, signaling near-term liquidity tightness despite substantial cash and high operating cash flow. Net debt remained elevated at roughly $14.03 billion, and interest coverage was around 3.0x, indicating a manageable but still debt-heavy balance sheet given ongoing investment in intangible assets and technology capabilities.
Valuation remains elevated relative to many traditional software peers, with price-to-sales around 10x and EV/EBITDA near 39.7x, suggesting the market pricing reflects growth opportunities in payment technology and scale advantages. In the near term, the company faces revenue headwinds, but profitability and cash flow strength provide a durable base for ongoing capital allocation, including potential debt management, buybacks, and selective investment in growth initiatives.