The acquisitions of Payfare and CCV for $324 million (net of acquired cash) are intended to expand Fiserv's capabilities in embedded finance and payment solutions. Payfare is included in the Financial Solutions segment, while CCV is included in the Merchant segment.

Upon the expiration of the WFMS joint venture on April 1, 2025, Fiserv received a cash payment of $453 million, subject to adjustment in the second quarter of 2025. A multi-year agreement to provide processing for current and future merchant clients as well as other services to Wells Fargo's merchant business was entered into.

Fiserv is focused on deepening client relationships with an emphasis on digital solutions and value-added services. The company aims to deliver innovation and integration enabling differentiated value for its clients and generate integration value, including cost and revenue synergies from acquisitions.

Selling, general and administrative expenses as a percentage of total revenue decreased due to a reduction in amortization of acquisition-related intangible assets and expense management initiatives. This contributed to the overall improvement in operating margin.

Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025. There were no changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

Total operating income increased $214 million, or 18%, and total operating margin increased 300 basis points to 27.2% in the first quarter of 2025 compared to 2024. Total operating income and total operating margin benefited from scalable revenue growth and revenue mix.

The company's operating results in certain foreign countries may be adversely impacted by fluctuations in exchange rates for currencies other than the U.S. dollar. The company also has exposure to risks related to currency devaluation in certain countries, which may negatively impact international operating results.

Global macroeconomic conditions, including changing interest rates, inflation, disruptions in the global supply chain, changes in consumer spending, the effects of international hostilities, political conditions, regulations restricting trade or impacting our ability to offer products or services, and trade policies and tariffs, could have a material adverse effect on our business, results of operations and financial condition.

The Company or its subsidiaries are named as defendants in lawsuits in which claims are asserted against the Company. The Company's estimate of the possible range of exposure for various legal proceedings in excess of amounts accrued is $0 million to approximately $120 million.

The global payments landscape continues to evolve, with rapidly advancing technologies and a steady expansion of digital payments, e-commerce and real-time payments infrastructure. Because of this growth, competition also continues to intensify.

Business and consumer expectations continue to rise, with a focus on speed, convenience, choice and security. To meet these expectations, payments companies are focused on modernizing their technology, expanding the use of data and enhancing the customer experience.

The company believes that its merchant acquiring products and solutions create compelling value propositions for merchant clients of all sizes, from small and mid-sized businesses to medium-sized regional businesses to global enterprise merchants.

Expense management initiatives contributed to the reduction in selling, general and administrative expenses as a percentage of total revenue. This contributed to the overall improvement in operating margin.

Cost of product as a percentage of product revenue decreased to 63.0% in the first quarter of 2025 compared to 73.7% in the first quarter of 2024. Cost of product as a percentage of product revenue in the first quarter of 2025 decreased primarily due to increased data sales in the first quarter of 2025, as data sales have a higher margin than other product revenue.

We expect to acquire businesses when we identify: a compelling strategic need, such as a product, service or technology that helps meet client demand; a way to achieve business scale that enables competition and operational efficiency; or similar considerations.

To meet rising customer expectations, payments companies are focused on modernizing their technology, expanding the use of data and enhancing the customer experience.

The acquisitions of Payfare and CCV are intended to enable the company's ability to accelerate the deployment of our Clover POS and business management platform across Europe.

We have invested in integrating our platforms and value-added solutions to make it easy for a client to buy across our full product suite.

The company repurchased $2.2 billion of its common stock during the first three months of 2025. As of March 31, 2025, approximately 68.3 million shares remained under existing share repurchase authorizations.

The acquisitions of Payfare and CCV were funded by utilizing a combination of available cash and proceeds from the issuance of commercial paper.

Our current policy is to use our operating cash flow primarily to fund capital expenditures, merchant cash advances, share repurchases, acquisitions and to repay debt rather than to pay dividends. Our capital expenditures were approximately 7% and 9% of our total revenue for the first three months of 2025 and 2024, respectively.

The provided 10Q filing does not contain any specific information or disclosures related to Environmental, Social, or Governance (ESG) initiatives.

The global payments landscape continues to evolve, with rapidly advancing technologies and a steady expansion of digital payments, e-commerce and real-time payments infrastructure.

Global macroeconomic conditions, including changing interest rates, inflation, disruptions in the global supply chain, changes in consumer spending, the effects of international hostilities, political conditions, regulations restricting trade or impacting our ability to offer products or services, and trade policies and tariffs, could have a material adverse effect on our business, results of operations and financial condition.

The evolving global regulatory and cybersecurity landscape has continued to create a challenging operating environment for financial institutions.