The earnings release and supplemental materials for the quarter are available on the Investor Relations section of fiserv.com. You should refer to our earnings release for a discussion of these risk factors. During the second quarter, we grew sales, clients, and our new business pipeline. For the second quarter, we delivered 8% adjusted and organic revenue growth and strong 16% Adjusted EPS growth.
We expanded our adjusted operating margin and generated good free cash flow. As Bob will cover later, we have increased our 2025 share repurchase guidance to approximately 130% of free cash flow. Before Bob walks you through our financial performance in more detail, I'd like to provide some color around the refinements we made to our guidance and share some important business highlights from the quarter. The 2025 guidance, which called for 10%-12% organic revenue growth on top of the 16% growth we achieved in 2024, had always assumed a significant growth ramp on the back half of the year.
This trajectory was based on the successful launch of a long and granular list of new products and strategic initiatives, as well as a relatively strong macroeconomic outlook. Our updated guidance reflects the fact that some of those launches and initiatives are taking longer than we had planned. As a result, we have refined our full-year organic revenue growth guidance to approximately 10%, which is at the low end of our guidance range. To be clear, we are maintaining our guidance for $3.5 billion of Clover revenue this year.
| Metric | Period | Current guidance |
|---|---|---|
| Organic revenue growth | FY2025 | approximately 10% (lowered to low end of range) |
| Adjusted EPS growth | FY2025 | bottom end raised by $0.05 (raised bottom of range) |
| Adjusted operating margin expansion | FY2025 | approximately 100 bps (lowered) |
| Share repurchase | FY2025 | approximately 130% of free cash flow (increased) |
| Clover revenue | FY2025 | $3.5 billion (maintained) |
| Free cash flow | FY2025 | approximately $5.5 billion (maintained) |
| Clover reported volume growth | FY2025 | at least 9% reported, at least 11% excluding gateway |
| Financial Solutions organic revenue growth | FY2025 | 6%-8% |
| Metric | YoY | Note |
|---|---|---|
| Total adjusted revenue | up 8% to $5.2 billion | Solid performance in both Merchant Solutions and Financial Solutions segments |
| Adjusted EPS | up 16% to $2.47 | Revenue growth, margin expansion, and increased share repurchases |
| Clover revenue | up 30% | VAS penetration, working capital products, hardware sales, and pricing |
| Merchant Solutions organic revenue | up 9% | Clover strength; comparison against 28% Q2 2024 growth that included Argentina inflation/Dollar Turista benefit |
| Merchant Solutions adjusted operating margin | down 200 bps to 34.6% | Investments in marketing/sales/distribution, CCB acquisition dilution, and new software/hardware investments |
| Issuing organic/adjusted revenue | up 13%/14% | Data and analytics sales, an early-stage offering |
| Zelle transactions | up 19% | Rising demand for real-time payments |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Back-half growth ramp | Original plan assumed a significant growth ramp in the back half from new product launches | Initiatives taking longer than planned; full-year refined to ~10% at low end of range; back-half growth now ~12% | Softening |
| Clover as a business operating system | Point-of-sale framing | Positioned as a full business operating system with horizontal (Homebase), vertical (Rectangle Health, Clover Hospitality), and geographic expansion | Expanding |
| International Clover expansion | Five new countries added (Brazil, Mexico, Australia, Singapore, Europe) | Ramping merchants in all new geographies; Brazil tracking to plan; added Belgium and TD Bank Canada partnership | Expanding |
| Clover Capital penetration | Meaningfully under-penetrated versus peers (Toast, Square) | Beginning a holistic effort on pricing, risk, and operations; still taking less risk than competitors | Early-stage opportunity |
| Argentina inflation benefit | Contributed 12 points of Merchant organic growth in Q2 2024 | Now gone in 2025 as inflation/interest fell below five-year average, easing comparisons through the year | Normalizing |