The sale of a 55% equity interest in Worldpay is a major strategic shift, providing FIS with a significant cash infusion. This allows FIS to focus on its Banking and Capital Markets segments and allocate capital more strategically, including debt reduction and share repurchases.

FIS is focused on assisting financial institutions and other businesses in migrating to outsourced integrated technology solutions. The company continues to invest in modernization, innovation and integrated solutions to meet the demands of the markets it serves and to compete with global banks, financial and other technology providers, and emerging technology innovators.

FIS continues to pursue strategic acquisitions to add solutions that complement existing offerings. In 2024, FIS used approximately $514 million of cash (net of cash acquired) related to new acquisitions.

Cost management initiatives, including those related to the Future Forward program, have contributed to improved profitability, as evidenced by the increased operating margin. The company is focused on driving efficiency and scalability in its operations.

Management successfully executed the Worldpay sale, a complex transaction, and is providing transition services to Worldpay under a TSA. This demonstrates management's ability to manage complex transactions and ensure business continuity.

Management is focused on assisting financial institutions with digital transformation and is investing in integrated solutions. The company is well-positioned to address the outsourcing trend across the markets it serves.

The 10-K highlights security breaches, privacy breaches, and cyberattacks as significant risks to the business. The company acknowledges being a regular target of attempts to identify and exploit system vulnerabilities.

FIS is subject to a broad range of complex federal, state, and international regulations. The company acknowledges that compliance depends on a variety of factors and that failure to comply may result in significant penalties.

The company depends on third parties for elements of its systems, computers, research and market data, connectivity, and communication network infrastructure. The 10-K acknowledges that disruptions or failures of these third parties could adversely affect the business.

The market for FIS's solutions is intensely competitive across both established companies and new industry entrants. The company faces direct competition from third parties, and also often competes against potential clients' in-house capacities.

The emergence of new technologies and increased competition may have the effect of unbundling bank solutions and may result in displacing solutions that FIS is currently providing from its legacy systems.

Global economic, political and other conditions, including business cycles and consumer confidence, as well as geopolitical conflicts, may adversely affect FIS's clients or trends in consumer spending, which may adversely impact the demand for FIS's services and FIS's revenue and profitability.

Cost of revenue for the year ended December 31, 2024, increased primarily due to increased infrastructure and labor expenses, which include costs to support the Worldpay transition services agreement.

Gross profit margin for the year ended December 31, 2024, increased primarily due to operating leverage, continued cost management and increased higher-margin license revenue, partially offset by dis-synergies associated with the Worldpay Sale.

Selling, general and administrative expenses for the year ended December 31, 2024, increased primarily due to higher expenses relating to the separation of the Worldpay Merchant Solutions business, offset in part by lower labor costs.

FIS leverages the modern architectures of its software applications and its ability to integrate many of its solutions with the solutions of others to provide customized solutions that respond to individualized client needs.

Technology development activities primarily relate to the modernization of FIS's proprietary core processing software applications and the design and development of next generation digital solutions, processing systems, software applications and risk management platforms.

The markets for FIS's solutions are characterized by constant technological changes, frequent introductions of new solutions and evolving industry standards. Failure to innovate or adapt solutions could result in loss of clients.

As FIS makes decisions with respect to building, buying or partnering to drive innovation in support of its clients, it prioritizes the allocation of capital and other resources to the opportunities providing the highest client benefit and growth potential.

To the extent FIS's businesses generate excess cash, it strategically uses it to repurchase shares, repay debt, pay dividends or for other corporate purposes.

In January 2021, FIS's Board of Directors approved a share repurchase program under which it authorized the Company to repurchase up to 100 million shares of its common stock. In August 2024, FIS's Board of Directors approved a separate, incremental share repurchase program authorizing the repurchase of up to $3.0 billion in aggregate value of shares of its common stock.

The Chief Executive Officer and the Chief People Officer regularly update FIS's Board of Directors on human capital management and culture.

The health and safety of FIS's employees is a key priority. FIS has implemented a comprehensive wellness program focused on all aspects of employee wellness – physical, mental, social, and financial.

There is increased scrutiny, including by governments, regulators, investors, employees, clients and other stakeholders, on sustainability matters, which has resulted in new or additional legal and regulatory requirements and may require increased compliance and operational costs.

FIS's business, financial condition or results of operations could be adversely affected due to a variety of factors, including changes in a specific country or region's political and cultural climate or economic condition, including a change in governmental regime; unexpected or unfavorable changes in foreign laws, regulatory requirements and related interpretations; and difficulty of effective enforcement of contractual provisions in local jurisdictions.

Constantly evolving global privacy, data protection, cybersecurity, cyber resilience, and AI laws and regulations require the Company to adopt new business practices, update contractual provisions in existing and new contracts, and constantly update its global Privacy and Data Protection Program and its global Information Security Program, which may require transitional and incremental expenses and may impact its future operating results.

Using and/or incorporating AI technologies into FIS's business poses additional risks and uncertainties that have the potential to harm FIS's reputation and could have a material adverse effect on FIS's business, financial condition or results of operations.