Revenue growth remains strong at 32.1% year-over-year, yet operating margins remain constrained at 4.5% as SG&A expenses scale alongside gross profits.
| Sales/Revenue | 4.45B | 4.18B | 3.33B | 2.56B | 1.99B | 1.37B | 766.9M | 731.4M | 560.6M |
| Revenue Growth % | 28.28% | 25.5% | 29.86% | 28.65% | 45.78% | 78.32% | 4.85% | 30.47% | - |
| Cost of Goods Sold | 2.89B | 2.75B | 2.36B | 1.88B | 1.52B | 1.09B | 589.1M | 558M | 419.9M |
| COGS % of Revenue | - | 65.84% | 70.78% | 73.18% | 76.41% | 79.64% | 76.82% | 76.29% | 74.9% |
| Gross Profit | 1.56B | 1.43B | 973.1M | 687.8M | 470.2M | 278.4M | 177.8M | 173.4M | 140.7M |
| Gross Margin % | 35.11% | 34.16% | 29.22% | 26.82% | 23.59% | 20.36% | 23.18% | 23.71% | 25.1% |
| Gross Profit Growth % | - | 46.75% | 41.48% | 46.28% | 68.89% | 56.58% | 2.54% | 23.24% | - |
| Operating Expenses | 1.19B | 1.08B | 726.1M | 573M | 375.5M | 327.4M | 235.4M | 177.8M | 153.8M |
| OpEx % of Revenue | - | 25.77% | 21.8% | 22.34% | 18.84% | 23.94% | 30.7% | 24.31% | 27.43% |
| Selling, General & Admin | 870.1M | 801M | 522.6M | 377.5M | 315.6M | 265.2M | 194.7M | 141.1M | 93.3M |
| SG&A % of Revenue | - | 19.16% | 15.69% | 14.72% | 15.83% | 19.39% | 25.39% | 19.29% | 16.64% |
| Research & Development | 0 | 0 | 0 | 0 | 500K | 1.8M | 1.2M | 1.6M | 1.6M |
| R&D % of Revenue | - | - | - | - | 0.03% | 0.13% | 0.16% | 0.22% | 0.29% |
| Other Operating Expenses | 4M | 276M | 203.5M | 194.3M | 59.4M | 60.4M | 39.5M | 35.1M | 58.9M |
| Operating Income | 375.7M | 351M | 247M | 114.8M | 94.7M | -49.2M | -57.6M | -4.4M | -13.1M |
| Operating Margin % | 8.44% | 8.4% | 7.42% | 4.48% | 4.75% | -3.6% | -7.51% | -0.6% | -2.34% |
| Operating Income Growth % | - | 42.11% | 115.16% | 21.22% | 292.48% | 14.58% | -1209.09% | 66.41% | - |
| EBITDA | 858.2M | 783M | 543.6M | 329.4M | 243.8M | 55.2M | 26.6M | 58.2M | 43.4M |
| EBITDA Margin % | 19.27% | 18.73% | 16.32% | 12.84% | 12.23% | 4.04% | 3.47% | 7.96% | 7.74% |
| EBITDA Growth % | 51.44% | 44.04% | 65.03% | 35.11% | 341.67% | 107.52% | -54.3% | 34.1% | - |
| D&A (Non-Cash Add-back) | 482.5M | 432M | 296.6M | 214.6M | 149.1M | 104.4M | 84.2M | 62.6M | 56.5M |
| EBIT | 379.9M | 385M | 60.2M | 151.6M | 119.4M | -49.1M | -73.6M | -3.4M | 6.7M |
| Net Interest Income | -174.5M | -131M | -28.1M | -200K | -21.7M | -28M | -40.2M | -51.5M | -47M |
| Interest Income | 51.7M | 59M | 33.7M | 31.9M | 10.8M | 0 | 0 | 0 | 0 |
| Interest Expense | 226.2M | 190M | 61.8M | 32.1M | 32.5M | 28M | 40.2M | 51.5M | 47M |
| Other Income/Expense | -204.5M | -156M | -248.6M | 4.7M | -7.8M | -27.9M | -56.2M | -50.5M | -46.4M |
| Pretax Income | 171.2M | 195M | -1.6M | 119.5M | 86.9M | -77.1M | -113.8M | -54.9M | -59.5M |
| Pretax Margin % | 3.84% | 4.67% | -0.05% | 4.66% | 4.36% | -5.64% | -14.84% | -7.51% | -10.61% |
| Income Tax | 31.7M | 48M | -296.1M | -3.4M | 200K | -3.1M | -2.4M | 1.7M | -4.1M |
| Effective Tax Rate % | 18.52% | 24.62% | 18506.25% | -2.85% | 0.23% | 4.02% | 2.11% | -3.1% | 6.89% |
| Net Income | 102.1M | 119M | 229.6M | 86.2M | 75.1M | -48.9M | -18.4M | -56.6M | -55.4M |
| Net Margin % | 2.29% | 2.85% | 6.89% | 3.36% | 3.77% | -3.58% | -2.4% | -7.74% | -9.88% |
| Net Income Growth % | -54.76% | -48.17% | 166.36% | 14.78% | 253.58% | -165.76% | 67.49% | -2.17% | - |
| Net Income (Continuing) | 139.5M | 147M | 294.5M | 122.9M | 86.7M | -74M | -111.4M | -56.6M | -55.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 127M | 515M | 211.1M | 215.1M | 133.3M | 126.9M | 210.4M | 0 | 0 |
| EPS (Diluted) | 1.39 | 1.08 | 3.03 | 1.43 | 1.05 | -0.89 | -0.43 | -1.23 | -1.42 |
| EPS Growth % | -70.96% | -64.36% | 111.89% | 36.19% | 217.98% | -106.98% | 65.04% | 13.38% | - |
| EPS (Basic) | - | 1.15 | 3.36 | 1.45 | 1.34 | -0.89 | -0.43 | -1.23 | -1.42 |
| Diluted Shares Outstanding | 73.64M | 88.95M | 91.52M | 60.99M | 82.77M | 54.92M | 45.03M | 45.94M | 39.03M |
| Basic Shares Outstanding | 73.64M | 68.06M | 67.68M | 59.68M | 56.17M | 54.92M | 45.03M | 45.94M | 39.03M |
| Dividend Payout Ratio | - | 25.21% | - | - | - | - | - | - | - |
Margin compression from competition
According to recent financial disclosures, Shift4 Payments maintained a robust 32.1% year-over-year revenue growth in 2026Q1, demonstrating the company's ability to scale transaction volumes despite broader macroeconomic headwinds impacting the hospitality and leisure sectors that constitute a significant portion of their core enterprise client base.
The consistent double-digit top-line expansion suggests that the company's strategy of integrating legacy gateway systems into its proprietary processing stack remains effective. Investors should monitor whether this growth is increasingly driven by organic adoption of the full-stack solution or if it relies heavily on inorganic contributions from recent acquisitions.
As reported in quarterly filings, Shift4's gross margin reached 35.0% in 2026Q1, reflecting a gradual improvement from the 26.5% levels observed in early 2024, yet the company continues to grapple with high interchange and network fee pass-throughs that inherently limit overall profitability potential.
The upward trend in gross margins suggests that the company is successfully migrating more volume to its higher-margin end-to-end processing model. However, the persistence of significant variable costs warrants caution, as any shift in the mix toward lower-margin gateway-only services could quickly reverse these gains.
Based on the provided income statement data, Shift4's operating margin fluctuated significantly, reaching a low of 3.0% in 2025Q1 before recovering to 4.5% in 2026Q1, indicating that SG&A expenses are scaling nearly in lockstep with gross profit rather than providing meaningful operating leverage.
The lack of significant margin expansion at the operating level suggests that the company is incurring substantial costs related to merchant acquisition and technical support for its complex enterprise integrations. This pattern implies that the business model may require significantly higher scale before it can demonstrate true operating efficiency.
Analysis of the company's reported figures reveals significant volatility in net income, with EPS swinging from a $1.43 profit in 2024Q4 to a $0.01 loss in 2026Q1, largely driven by inconsistent stock-based compensation charges and non-operating items that complicate the assessment of core operational performance.
The frequent fluctuations in net income suggest that investors should focus on adjusted metrics to gauge the true earnings power of the business. The recurring nature of stock-based compensation warrants further investigation, as it appears to be a persistent drag on GAAP profitability that may not be fully captured by headline figures.
While Shift4 has demonstrated strong growth, the company's reliance on legacy integrations may be vulnerable to disruption, as evidenced by the 2026Q1 net margin of only 1.3%, which highlights the fragility of their take-rate model in an increasingly competitive and commoditized payment processing landscape.
Short-sellers might focus on the potential for software-native competitors to bypass Shift4's gateway-centric approach, which could lead to long-term margin compression. The current valuation appears to assume a level of stickiness that may be challenged if enterprise clients prioritize lower-cost, integrated solutions over Shift4's specialized infrastructure.
Quick answers to the most common questions about buying FOUR stock.
For fiscal year 2025, Shift4 Payments, Inc. (FOUR) reported total revenue of $4.18B. This represents a 645.6% increase compared to $560.6M in 2018.
Shift4 Payments, Inc. (FOUR) is profitable, generating $119.0M in net income for the fiscal year ending 2025 with a net profit margin of 2.8%.
Shift4 Payments, Inc. (FOUR) reported an operating income of $351.0M, resulting in an operating profit margin of 8.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Shift4 Payments, Inc. (FOUR) generated $1.43B in gross profit for the year, representing a gross profit margin of 34.2%. This demonstrates the company's core pricing power and production efficiency.