Shift4 Payments early Tuesday reported second-quarter adjusted earnings that missed estimates while revenue edged by Wall Street targets. Shift4 stock plunged as payment volume, a key financial metric, also missed expectations.
Reported before the market open, Shift4 earnings on an adjusted basis fell 21% to $1.10 per share. Revenue minus network fees rose 29% to $413 million.
Further, Shift4 stock analysts had projected adjusted earnings of $1.19 cents a share on sales of $410 million. In addition, Shift4 reported earnings before interest, taxes, depreciation and amortization of $205 million, in-line with estimates.
Key Financial Metric Light
End-to-end payment volume from merchant customers climbed 25% to $50.1 billion, missing estimates of $52 billion.
For full-year 2025, Shift4 predicted net revenue in a range of $1.965 billion to $2.035 billion. In addition, guidance includes recently acquired Global Blue, a specialty payments and technology platform focused on retail luxury brands.
On the stock market today, Shift4 stock plunged about 18% to 83.81 in midday trading.
"Weaker-than-expected volume, no increase to the full year (volume) outlook, the CFO change, and slower implied growth for Global Blue are all weighing on shares," said Evercore ISI analyst Adam Frisch in a report.
Stiff Competition
Heading into the earnings report, Shift4 stock had retreated 5% in 2025.
"Overall, we view this as a mixed print, and would note that Shift4 felt like a popular long into results and management will need to address the volume miss," said Truist analyst Matthew Coad in a report.
Allentown, Pa.-based Shift4 gets most of its revenue from customers in the hotel and restaurant industries as well as casinos. Aside from the hotel and restaurant industries, Shift4 has expanded into sports stadiums, airlines and charitable giving as well as food and beverage companies.
At William Blair, analyst Andrew Jeffrey said in a report: "We think Shift4 has ample opportunity to monetize its greater-than-$1-trillion potential processing base, which is only about 20% penetrated. However, line of sight remains somewhat obscured. We think management needs to lay out a cogent cross-sell plan that is more than just dynamic currency conversion to gain investor confidence."
Shift4 competes with Clover, owned by Fiserv, as well as Square, owned by Block and Toast, among others. toast reports earnings after the market close on Tuesday.
Shift4 Stock Technical Ratings
Further, Shift4 stock holds an IBD Composite Rating of 95 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Also, Shift4 stock has an Accumulation/Distribution Rating of B. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling.
The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying, E means heavy selling. Think of the C grade as neutral.
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