Fiserv FISV · USD

Business Segment InformationThe Company’s operations are comprised of two reportable segments, the Merchant segment and the Financial segment. The businesses in the Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; and pay-by-bank solutions. The business lines (operating segments) aggregated within the Merchant segment consist of the following:•Small Business – provides products and services to small businesses and independent software vendors, including Clover®, the Company's POS and business management platform for small business clients•Enterprise – provides products and services to large businesses, including the Company’s integrated omnichannel operating system for enterprise clients•Processing – provides products and services to financial institutions, joint ventures, and other third party resellers which have direct relationships with merchantsThe Company distributes the products and services in the Merchant segment businesses through a variety of channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions and other strategic partners in the form of joint venture alliances, revenue sharing alliances and referral agreements.The businesses in the Financial segment provide products and services to financial institution, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions.

Revenue RecognitionSignificant Accounting PolicyASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. The core principle, involving a five-step process, of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.Revenue is measured based on consideration specified in a contract with a customer and excludes any amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling activities associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment activity and recognized as revenue at the point in time at which control of the goods transfers to the customer. As a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.Nature of Goods and ServicesThe Company’s operations are comprised of the Merchant and the Financial reportable segments (see Note 19). The following is a description of principal activities from which the Company generates its revenue. Contracts with customers are evaluated on a contract-by-contract basis as contracts may include multiple types of goods and services as described below.Processing and ServicesProcessing and services revenue is generated from account- and transaction-based fees for merchant transaction processing and acquiring, electronic billing and payment services, electronic funds transfer and debit/credit processing services; consulting and professional services; merchant cash advances; and software maintenance for ongoing client support.The Company recognizes processing and services revenue in the period in which the specific service is performed unless such service is not deemed distinct from other goods or services in which revenue would then be recognized as control is transferred of the combined goods and services.

Commitments and Contingencies Litigation and Investigation MattersIn the normal course of business, the Company or its subsidiaries are named as defendants in lawsuits in which claims are asserted against the Company. The Company maintained an accrual of $25 million and $43 million at December 31, 2025 and 2024, respectively, related to its various legal proceedings. The Company’s estimate of the possible range of exposure for various legal proceedings in excess of amounts accrued is $0 million to approximately $160 million. In the opinion of management, the liabilities, if any, which may ultimately result from such legal proceedings are not expected to have a material adverse effect on the Company’s consolidated financial statements.On July 24, 2025, a federal securities law complaint was filed against the Company and Frank J. Bisignano (the Company’s former Chairman and Chief Executive Officer), Michael P. Lyons, Robert W. Hau (the Company’s former Chief Financial Officer and current Special Advisor), and Kenneth F. Best in the United States District Court for the Southern District of New York. The complaint is brought on behalf of a putative class of purchasers of Company securities from July 22, 2024 to July 24, 2025 and alleges violations of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act. The complaint alleges, among other things, that certain statements made by the Company about the growth of its Clover business management platform were false and/or misleading and led to a decline in the Company’s stock price over the purported class period. On November 17, 2025, lead plaintiffs were appointed in the action and it was assigned the caption In re Fiserv, Inc. Securities Litigation, No. 1:25-cv-06094.On November 4, 2025 and November 14, 2025, federal securities law complaints were filed against the Company and Messrs. Lyons and Hau in the United States District Court for the Eastern District of Wisconsin. The complaints are brought on behalf of a putative class of purchasers of Company securities from July 23, 2025 to at latest October 29, 2025, and allege violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act.

DebtThe Company’s debt consisted of the following:December 31,(In millions)20252024Short-term and current maturities of long-term debt:Foreign lines of credit$762 $784 Finance lease and other financing obligations477 326 Total short-term and current maturities of long-term debt$1,239 $1,110 Long-term debt:3.850% senior notes due June 2025$— $900 2.250% senior notes due July 2025 (British Pound-denominated)— 661 3.200% senior notes due July 20262,000 2,000 5.150% senior notes due March 2027750 750 2.250% senior notes due June 20271,000 1,000 1.125% senior notes due July 2027 (Euro-denominated)589 521 5.450% senior notes due March 2028900 900 2.875% senior notes due June 2028 (Euro-denominated)883 — 5.375% senior notes due August 2028700 700 4.200% senior notes due October 20281,000 1,000 3.500% senior notes due July 20293,000 3,000 4.750% senior notes due March 2030850 850 2.650% senior notes due June 20301,000 1,000 1.625% senior notes due July 2030 (Euro-denominated)589 521 4.550% senior notes due February 20311,000 — 5.350% senior notes due March 2031500 500 4.500% senior notes due May 2031 (Euro-denominated)942 835 3.000% senior notes due July 2031 (British Pound-denominated)709 661 3.500% senior notes due June 2032 (Euro-denominated)912 — 5.600% senior notes due March 2033900 900 5.625% senior notes due August 20331,300 1,300 5.450% senior notes due March 2034750 750 5.150% senior notes due August 2034900 900 5.250% senior notes due August 20351,000 — 4.000% senior notes due June 2036 (Euro-denominated)765 — 4.400% senior notes due July 20492,000 2,000 U.S. dollar commercial paper notes326 221 Euro commercial paper notes839 1,239 Revolving credit facility188 115 Unamortized discount and deferred financing costs(169)(150)Finance lease and other financing obligations1,635 656 Total long-term debt$27,758 $23,730 Annual maturities of the Company’s total debt were as follows at December 31, 2025:(In millions)Year Ending December 31,2026$1,239 20272,804 20283,885 20293,364 20306,037 Thereafter11,837 Total principal payments29,166 Unamortized discount and deferred financing costs(169)Total debt$28,997 The Company was in compliance with all financial debt covenants during the year ended December 31, 2025.Senior NotesThe Company has outstanding $24.9 billion of various fixed-rate senior notes, as described above.

Income TaxesThe provision for income taxes is based on income before income taxes and income (loss) from investments in unconsolidated affiliates, as follows:Year Ended December 31,(In millions)202520242023United States$3,572 $3,683 $3,342 Foreign692 823 556 Total$4,264 $4,506 $3,898 The income tax provision was as follows:Year Ended December 31,(In millions)202520242023Components of income tax provision (benefit):Current:Federal$1,288 $831 $913 State221 242 148 Foreign244 230 204 1,753 1,303 1,265 Deferred:Federal(759)(407)(380)State(70)(112)(12)Foreign(113)(143)(119)(942)(662)(511)Income tax provision $811 $641 $754 An income tax rate reconciliation pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 is as follows:(In millions)AmountPercentU.S. federal statutory income tax rate$896 21.0 %United States:State and local income taxes (1)107 2.5 %Effect of cross-border tax laws22 0.5 %Tax creditsTransferable federal tax credits(96)(2.3)%Foreign tax credits(66)(1.5)%Other(14)(0.3)%Nontaxable or nondeductible itemsExcess tax benefit from share-based awards(55)(1.3)%Other18 0.4 %Other adjustments10 0.2 %Foreign tax effects:Other foreign jurisdictions(14)(0.3)%Changes in unrecognized tax benefits3 0.1 %Income tax provision$811 19.0 %(1)State and local income taxes in California, Illinois, New Jersey, New York and Pennsylvania comprise the majority (greater than 50%) of the tax effect in this category.A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:Year Ended December 31,20242023U.S. federal statutory income tax rate21.0 %21.0 %State income taxes, net of federal effect2.6 %2.8 %Foreign derived intangibles income deduction— %(0.4)%Excess tax benefit from share-based awards(1.3)%(0.8)%Sale of businesses and subsidiary restructuring(0.2)%(1.3)%Unrecognized tax benefits— %(0.2)%Nondeductible executive compensation0.3 %0.2 %Transferable federal tax credits(2.3)%(1.4)%Non-cash impairment charge (see Note 8)(2.9)%— %Valuation allowance(1.0)%(0.6)%Other, net(2.0)%— %Effective income tax rate14.2 %19.3 %Pursuant to provisions under the Inflation Reduction Act, the Company purchased transferable federal tax credits during 2025, 2024 and 2023 from various counterparties. Such federal tax credits were purchased at negotiated discounts, resulting in an income tax benefit recorded during each of the years ended December 31, 2025, 2024 and 2023.

Share-Based CompensationThe Company recognizes the fair value of share-based compensation awards granted to employees in cost of processing and services, cost of product, and selling, general and administrative expense in its consolidated statements of income.The Company’s share-based compensation awards are typically granted in the first quarter of the year; however, grants may also occur throughout the year, and primarily consist of the following:•Restricted Stock Units and Awards – The Company grants restricted stock units and awards to employees and non-employee directors. Time-based restricted stock units and award grants generally vest over a three-year period. In December 2025, the Company granted discretionary restricted stock units to certain employees, which fully vest after an 18 month period. The Company recognizes compensation expense for restricted stock units and awards based on the market price of its common stock on the grant date over the period during which the units and awards vest. •Performance Share Units – The Company grants performance share units to employees. The number of shares issued at the end of the performance period is determined by the level of achievement of predefined performance goals, including earnings, revenue growth, integration attainment, and shareholder return. The Company recognizes compensation expense on performance share units ratably over the requisite performance period of the award, generally two to five years, to the extent management views the performance goals as probable of attainment. The Company recognizes compensation expense for the fair value of the shareholder return component over the requisite service period of the award.•Stock Options – The Company may grant stock options to employees and non-employee directors at exercise prices equal to the fair market value of the Company’s stock on the dates of grant. Stock option grants generally vest over a three- or four-year period. All stock options expire ten years from the date of the award. The Company recognizes compensation expense for the fair value of the stock options over the requisite service period of the stock option award.

LeasesCompany as LesseeThe Company primarily leases office space, data centers and equipment from third parties. The Company determines if a contract is a lease at inception. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The lease term begins on the commencement date, which is the date the Company takes possession or obtains control of the asset, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Many of the Company’s leases contain renewal options for varying periods, which can be exercised at the Company’s sole discretion. Leases are classified as operating or finance leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The Company’s leases have remaining lease terms ranging from one month to 18 years. The Company uses the right-of-use model to account for its leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. ROU assets are based on the lease liability and are increased by prepaid lease payments and decreased by lease incentives received. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the ROU assets and lease liabilities to the extent they are variable in nature. These variable lease costs are recognized as variable lease expenses when incurred. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes.

Acquisitions, Dispositions and Other TransactionsAcquisitions were accounted for as business combinations using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. Purchase price was allocated to the respective identifiable assets acquired and liabilities assumed based on the estimated fair values at the date of acquisitions. The results of operations for the following acquired and divested businesses are included in the consolidated results of the Company from the respective dates of acquisition and through the respective dates of disposition. Pro forma information for these acquired businesses is not provided because they did not have a material effect, individually or in the aggregate, on the Company’s consolidated results of operations.Acquisitions of BusinessesAcquisition of StoneCastleOn December 17, 2025, the Company acquired StoneCastle Cash Management, LLC, INDX Processing, LLC and StoneCastle Trust Co. (collectively, “StoneCastle”), a provider of deposit funding solutions, for $415 million, net of $4 million of acquired cash. StoneCastle is included within the Financial segment and provides its network of depository institutions easy access to stable, cost efficient deposit funding.The preliminary allocation of purchase price resulted in the recognition of identifiable intangible assets of approximately $165 million, primarily acquired software and technology with an estimated useful life of 7 years, approximately $247 million of goodwill and $7 million of other net assets, including acquired cash. The allocation of the purchase price is preliminary and is subject to further adjustment, pending additional refinement and final completion of valuations. Goodwill, which is expected to be deductible for tax purposes, is primarily attributed to the anticipated value created by enabling the Company to offer technology-enabled deposit funding solutions to both its financial institution customers and merchant acquiring enterprise clients.Acquisition of CCVOn March 18, 2025, the Company acquired CCV Group B.V. (“CCV”), a Netherlands-based supplier of POS payment solutions, for $219 million, net of $34 million of acquired cash. CCV is included within the Merchant segment and expands the Company’s network of payment solutions.