[Operator Instructions] Our first question will come from Dan Dolev with Mizuho.

Really nice results, really great to see all the progress on Genius. It looks like you're off to a great start there. Just had a question, Cameron. I think a lot of people are asking, can you maybe help us unpack some of the assumptions underpinning the new guide? I think a lot of investors want to get some more detail into that. But overall, great job here, and congrats again.

Yes. Thanks, Dan. Maybe I'll start with a high-level sort of overview, and I'll turn it over to Josh to get into a little bit of the detail. So look, I think the right way to think about the guide is we're trying to derisk the back half for whatever the Middle East conflict may entail in terms of ongoing impact to our travel portfolio. As we said in our Q2 results, we certainly saw a pretty meaningful impact from the conflict. We called out 100 basis points. It was probably a little bit higher than that. We were able to offset some of that impact in Q2. But look, the situation obviously remains volatile and uncertain. And right now, our assumption is that it will persist through the balance of the year and will continue to negatively impact the travel portfolio. Look, the environment is slightly better than it was clearly in the sort of the middle of Q2, but certainly, capacity and forward bookings within our travel portfolio -- sorry, remain significantly below kind of pre-conflict levels. And the capacity that kind of has come back tends to be more short-haul, lower-yielding domestic sort of routes versus the higher-yielding long-haul routes that drive greater levels of revenue for us. So look, I think our guide for the back -- for the year now is 4% to 5% on a constant currency ex disposition basis. I think that allows for a range of outcomes in the Middle East. I think previously, we said the back half would be slightly above 5%. Now it's probably going to be closer to that 4.5% range, not to put too fine a point on it, again, trying to allow for a variety of outcomes as it relates to the conflict. But look, I think this is the prudent approach to take given the uncertainty that exists and the impacts that we continue to see on the travel portfolio versus taking a kind of a quarter-by-quarter view. But certainly, end of day, we still feel good about kind of how the business is positioned for the balance of the year. And I think most importantly, it doesn't impact our capital return plans for the year because the impact overall, given the size and scale of the business is relatively modest. Josh, I don't know if you'd add any more details around that.

Yes. Just a couple of other things that I would add to put a finer point on some of the other pieces of it. We do continue to expect margins to expand 150 basis points for the full year, and that's primarily driven from the realized Worldpay integration synergies and operating leverage from the model. And as Cameron mentioned, we now expect to report EPS growth in that 11% to 13% range, which also takes into consideration updated FX assumptions just given the strength -- the recent strengthening of the dollar. And then as it relates, Dan, more specifically, to the second half, we would expect revenue growth to be in that approximately 4.5% range, and we expect 200 basis points of margin expansion with margins right around that 43% range. And then as it relates to the general macro, we factored in just a continuation of the spending trends that we saw in Q2 and a generally stable macro environment.

Our next question comes from Bryan Keane with Citigroup.

Solid results here. I wanted to ask about yields. I noticed that the normalized revenue is running above volume for enterprise and a little bit below for platforms. Just wanted to understand that and maybe what the kind of go-forward outlook looks like for those segments. And then in SMB, we're kind of running volume and revenue are at the same levels. I'm just wondering with Genius coming into the mix, does that maybe drive yield higher for that segment?

Yes. Really great question, Dan. Why don't I start, and I'll ask Bob maybe to chime in if you have some additional color he'd like to add. But look, as it relates to the enterprise business, as a reminder, it's a mix of card-present, card-not-present volumes. So I think we called out in our script card-not-present volumes are kind of growing in that double-digit range. Card-present, given the type of merchants we serve in that space, is generally going to be more GDP-type levels. So you blend that together and you get a growth rate that is on a volume basis, fairly consistent with the overall revenue growth of the business. We do obviously get a little bit of a tailwind from value-added services within the enterprise channel as well. So again, blend it all together, probably revenue growth a little bit higher than overall volume growth when you mix the card-present, card-not-present portions of the portfolio together with BaaS kind of being a tailwind that drives revenue growth a little bit higher. I think in the Platforms business, it's really a mix question. So where we're seeing volume growth, and this is a secular trend, not just a unique trend to Global Payments, is really around the PayFac and managed PayFac segments of the market, what we characterize as our embedded solutions. So volume growth there is strong around 15%. Volume growth in the more traditional integrated referral channels is going to be less than that. So you get a blended volume growth in the business that's in the roughly 10% level, revenue growth being a little bit lower than that, largely because the yield -- the revenue yield that we see in the managed PayFac and PayFac channels is a little bit less than what we see in the more traditional integrated referrals. So that's a little bit of a mix story in platforms. And certainly, we're pleased with the strength in volume we're seeing. And obviously, the revenue growth will continue to drift up as we move more and more volume to our managed PayFac solutions over time. And then lastly, within the SMB channel, you're exactly right. I think the challenge with Genius is just size relative to the size of the channel. So Genius is a relatively modest contributor today. Over time, we would expect Genius to be able to drive better yields, and we actually see that in the data and some of that we called out on the call this morning. It's just a modest contributor given the scale and size of the total SMB business today. So I would continue to expect to see revenue growth in SMB fairly consistent with volume growth in the short term. But over time, obviously, revenue growth will drift up as Genius becomes a more meaningful contributor to revenue over a longer period of time. Bob, anything you would add?

Yes, real quick. One additional item, Bryan. I think Cameron already highlighted that our expectation is for revenue growth and volume to decouple in a favorable way over a period of time. That's not just anchored to Genius, although certainly we have aspirations for Genius that we think are going to drive material improvements in the growth of the business. But it's really about the value-added service portfolio across all 3 of the segments. So over a period of time, accounting for mix shift and some of the trends that Cameron already highlighted, we would expect to be driving higher front book yields and over time, higher back book yields by attaching more products and services to our relationships with clients across the size spectrum, whether they're SMB platforms or enterprise.

Our next question comes from Andrew Schmidt with KeyBanc.

I appreciate all the work on the segment detail here. Really helpful. Two related questions, I'll ask them upfront. Just when we think about segment growth rates, if we can just maybe talk about expectations for intermediate term. I know we just walked through some of the yield dynamics and some of the drivers there. But just intermediate-term sort of view on those segments would be helpful. And then specifically within SMB, obviously, Genius, a big driver of value-add services, distribution. Maybe we could just drill into that a little bit in terms of -- the key components in terms of driving revenue growth improvement there.

Yes. Andrew, it's Josh. So good question. As we think about just the segments more generally, if we start with enterprise, we called out 7% normalized growth in Q2, and that obviously reflects some impact from the Middle East, which was about 400 basis points of growth headwind. So that business on a normalized basis, you can call it like low double digits. I think as you think about the back half of the year, we would see some modest improvement there as we continue to see some of the strong underlying trends around card-not-present. We called out the bookings growth of 10% in the first half of the year, and we start to see those conversions of those bookings go live in the back half. So we're continuing to see really strong trends there. Platforms, we called out that normalized growth rate in that 7% range. And we expect to see some slight acceleration there. Embedded payments, which includes our PayFac and managed PayFac business, that's about little over 20% of the overall composition there, and that's growing kind of in that 20% range. And so we expect to see some acceleration there in the back half. And then SMB, we called out is about 4% normalized growth. And again, we've seen really strong trends through Genius, we talked about the bookings and the new locations that we added in our prepared remarks, and we continue to see really, really strong underlying trends with Genius. It's a modest piece of the overall SMB composition. But generally speaking, we're seeing really strong trends with Genius as that we continue to see improved adoption. And we also really only launched this a little over a year ago. So we're still kind of in the early innings here. But again, as I mentioned, seeing really strong contribution from that.

Yes. Maybe I'll just add a couple of points on that. If I take a bigger step back and kind of look at the 3 segments sort of specifically, I would say enterprise, we would target to be kind of a high single-digit, low double-digit grower depending on the quarter and some of the underlying trends, particularly around e-com volumes, et cetera. Seeing really good front both productivity, 10% sales growth kind of in the quarter as we called out. So that's generally the target that we would have for that business ex the kind of Middle East headwinds that we're experiencing currently. Platforms, again, to Josh's point, a high single-digit grower, really led by the embedded solutions, managed PayFac and PayFac capabilities. Obviously, with BaaS become an increasingly important component of revenue growth over time. And then SMB, we still target in that mid-single-digit range. And that's a little bit of a more secular story than anything else. I think as probably everyone on the audience is aware, more and more SMBs are procuring their payment solutions from their software provider. So over time, that's why Genius is such a critical component of our growth story for SMB is getting good penetration with our own software solutions in restaurant and retail and adjacencies where we think Genius can be relevant, whereas over time, other verticals will continue to shift towards our platforms business again, as more and more SMBs look to procure their solutions integrated with their software provider. So that's more of a secular trend broadly in the market and why we expect to see kind of SMB at those types of growth rates, again, with Genius becoming a more meaningful contributor over time and ultimately able to drive the growth rate higher, but that's going to take some time just given the relative size of Genius today.

Our next question comes from Jason Kupferberg with Wells Fargo.

So I know you said 4.5% growth for the second half of the year. Just curious on cadence there between Q3 and Q4. And then just to get a little nerdy on the numbers maybe for a second, I want to talk about the Middle East. Just going back to last quarter, I thought we were talking about like a 70 basis point headwind in Q2 and then another 30 basis points from the IRS contract. It sounds like the airlines alone were a little over 100 bps of headwind in Q2. So I just wanted to make sure we have the facts right there. And then should we assume that the 4.5% outlook for the second half assumes that, that current run rate of airline headwind stays unchanged?

Yes. Jason, it's Cameron. Maybe I'll start and I'll ask Josh to chime in with some more color as well. So to your first question, I wouldn't parse to specifically Q3 and Q4 at this point in time. Obviously, given the drivers of better growth in the back half of the year, I think it's fair to assume that on the margin, Q4 would be a little better than Q3, but I don't think we're talking huge material differences here relative to the back half outlook in totality. And as a reminder, those drivers are really a few things. One is just the continued ramping of our sales force from a productivity perspective as well as our new sellers. Two, it's the continued progress that we're seeing with Genius. And obviously, the trends that we've seen in the first half of the year start to contribute more as a revenue matter into the back half of the year on the margin, which is helpful. And then third, it's really the boarding and go-live and ramping of the enterprise book of business that is what we call signed but not live. We called out on the call that about 1/3 of those went live in the second quarter. So they'll now start to ramp in the back half of the year. Examples are Aldi, Morrisons, Careem, which is a ride-hailing service in the UAE. All those are going to help to drive slightly better kind of outcomes in the back half of the year as those revenues ramp for the business. So hopefully, that gives you a little bit of color around the drivers for the back half. I think to your second question, first of all, your memory is very good. We did call out 70 basis points and roughly 30. I think the 70 basis points, as we said in our Q1 call, really sort of presupposed that the Middle East conflict kind of ended more quickly than certainly it hasn't ended yet. So it ended up persisting for the entirety of the second quarter, and the impact ended up being slightly more than we anticipated, so closer to that 100 basis points versus the 70 that we called out in the first quarter. We were largely able to absorb the other things largely because of better volumes. Some of that was driven by the World Cup that we don't necessarily expect to persist in the back half of the year. But we were able to offset some of the impact around that for the second quarter. For the balance of the year, look, as I said earlier, things are getting slightly better, but we still expect a headwind from the Middle East conflict on the travel portfolio. If things get worse, it could drift up to that kind of 100 basis point impact we saw in the second quarter. If not, it will probably slightly less than that, and I think that's what our guide largely reflects -- but I think we've given room in the guide for a variety of outcomes around the Middle East conflict. And given the uncertainty and again, the current instability in the environment, we think that's the prudent approach to take.

Yes. I totally agree, and that's helpful color. I just wanted to pivot to free cash flow for a second. I mean it's good to see some of those adjustments coming down. And I know we've been talking about an adjusted free cash flow number for next year of $4 billion. Just as we think about trying to translate that to more of a GAAP free cash flow number based on your sense of how much more of the adjustments may come down next year, what might be a reasonable range to think about for a clean GAAP free cash flow number in 2027?

Yes. Look, Jason, we talked about when we announced the transaction that we expected $600 million of onetime costs to match our overall synergies. And this year, we're trending -- I think in the first half integration, we're right around that $300 million mark. We expect about another $100 million. That does include some separation costs in it. So you back that out, we would expect to go ahead and see the integration costs come down slowly over time with them primarily front-loaded in the first half of the integration then tailing off into 2028. So again, we feel comfortable kind of with our free cash flow that we've called out in 2028, our capital returns and deleveraging back down to that 3x leverage point. And then as we -- obviously, we get closer to 2027, we'll be able to give a better steer with regards to what the outlook looks like for '27. But I'd say right now, we feel very good about getting back to that 3x leverage point and returning the capital that we committed to return when we announced at our Investor Day in September of 2024.

And Jason, it's Cameron. Let me just add a couple of comments to that. First of all, we are trying to pull forward some of our integration work, but more importantly, our separation work. We spent a lot of time talking about integration. We haven't spent so much time talking about separation, but we are trying to pull forward as much as we can our separation from FIS for Worldpay, in particular, their technology environments. The sooner that we can do that, the sooner we can execute on our own plans without reliance upon coordination through FIS, et cetera. And that's not a knock on FIS, by the way, it's just that's what's in the best interest for the business for the long term is trying to move off as quickly as we can. So we are accelerating some of that work into 2026 to Josh's earlier point around separation. So those costs will likely be a little bit higher this year. The benefit of that also is it helps to offset the tax gain on the issuer sale. So there is some benefit of pulling forward planned onetime expenses associated with integration and separation into this year. As Josh said, over time, naturally, those costs will drift down as we continue to execute on both of those initiatives as we get into '27 and more so in '28. But I think the most important point is, we remain confident in our ability to generate the free cash flow next year that supports the capital return plans that we've articulated and view ourselves very much on track to hit those objectives.

Our next question comes from Darrin Peller with Wolfe Research.

Cameron, I want to ask first a question on Genius. And then, Josh, I will have a quick follow-up on the free cash, so just more in this year versus going forward. But Cameron, first, just on the Genius rollout, obviously, the checks continue to be very strong that the demand is there. So what expectations do you actually have for it to permeate specifically the SMB segment and to see success with cross-sell into the Worldpay side over the next 12 months? Just -- I guess we're looking for a little bit more color on milestones you're looking to achieve that we can watch and see success.

Yes. I think it's a good question, Darrin. Thanks, and thanks for the commentary as well. We see the same thing in the marketplace, which is why we continue to invest behind the product, the capability, the marketing, the brand, the distribution, et cetera, because we have big ambitions for Genius. And certainly, all of the early results a year in from launch remain very, very positive, particularly as it relates to the sequential growth in new sales and just the receptivity in the market for the product we're able to deliver. Look, I think as we get through kind of the back half of the year heading into 2027, we owe you more sort of key sort of KPIs around Genius itself. Just where have we gotten to in terms of size, what do we expect sort of the Genius specific growth rates to be as we continue to move forward and invest against the product and solution. It's such a modest contributor today. We haven't really broken out a lot of specificity around Genius in particular, but other than kind of what we're seeing from a front book perspective. But as we continue to scale it for the back half of the year and head into 2027, we'll be able to provide you a little bit more color around size contribution and where we see it going from a growth rate perspective over time. that I think will help inform the overall expectations around kind of growth for the SMB channel. I would just reflect back on the comment I made earlier. I think it's important to recognize, as this business evolves over the course of the next few years, and this is largely a U.S. commentary, but that's the vast majority of our SMB business. Ultimately, the SMB channel is going to be selling Genius largely in restaurant and retail verticals and some adjacencies where, again, Genius can be relevant. Most everything else we're doing from a vertical perspective will be through our platforms business, again, as more and more SMBs are procuring their payment solutions through their software provider. So that's a natural kind of secular trend in the industry, but certainly something we expect to continue to play out in our SMB portfolio and our platforms portfolio over a period of time as payment and software continue to merge and buying behaviors of SMBs continue to drift towards procuring it through software vendors. Ultimately, that's the expectation that you should see in the SMB channel and the platforms business, continued strong growth. SMB is transitioning from having historically sold stand-alone payment solutions to selling Genius. And ultimately, whether it's next year or the following, I think effectively 100% of front book sales in our SMB channel will be Genius in the U.S. and the rest of the world will evolve towards that same model over a period of time.

Okay. That's really helpful. Josh, just my follow-up was on free cash again. I mean I know you did about $1.2 billion in adjusted free cash and you need to do about $2 billion in the second half. But in terms of also real free cash, I mean, we calculate you would need a step function of around $1.7 billion in the second half just to achieve what we think is the conversion. Just -- I know you said there's seasonality that drives second half higher. But if you could just walk us through some of the key specifics to drive that materially higher free cash, both on an adjusted and GAAP basis, I think it would be really helpful, just given the strong capital return program we're looking for.

Yes. So Darrin, good question. And what I would do is I would point you actually back to kind of the historical trends that we've seen around free cash flow conversion. And historically, it's lower in the first half relative to the second half. I think if you go back and if you look at our free cash flow conversion last year, it was over 100% in the second half of the year. And we would expect those trends to go ahead and continue for the second half where we see that acceleration. And look, we've already returned more than half of the capital that we targeted to return in 2026. So we're well on our way there. And we feel very confident with regard to between dividends and buybacks that will be over that $2 billion mark for the full year.

Our next question comes from Adam Frisch with Evercore ISI.

I just wanted to do a little bit of housekeeping on revenue. Since FX was neutral, was the delta between nominal and adjusted the $60 million of divestitures? And then along those lines on other revenues was down year-over-year on a normalized basis, which in our math takes the growth rate down, obviously, across the 3 segments. So can you just help us understand what sits in the other revenue bucket and when it stops being a drag?

Yes, sure. So Adam, yes, as it relates to the other revenue, we called this out in our prepared remarks, this represents noncore portfolios and certain relationships that don't align to our segments or go-to-market strategies. And what that really is comprised of its portfolio of partners that are no longer referring us front book relationships and that are no longer actively providing us with new merchant referrals. So that's one piece of it. Another piece of it is there are a couple of noncore processing businesses that we acquired through the Worldpay acquisition. That's included in there. And then there's a portfolio where we provided managed services where the partner has built on acquiring platform, and they're slowly migrating off of us. If you think about just the other revenue, and that's in our disclosure, about 8% in 2025 of that revenue of our total revenue was other, and we expect that to be in the 6% range in 2026. But the reason -- Adam, we broke that out is we want to go ahead and give a better line of sight of what the core business looks like going forward. So those are some of the components that make up the other revenue.

Adam, just to your first question, you're right. The difference year-over-year for Q2 is just going to be dispositions. There's really no FX, meaningful FX sort of to call out. So the ex-dispositions number, I think it's a little north of $60 million, $63 million -- $65 million in the second quarter is the difference. And then to just put a finer point on Josh's comment, as we think about the aggregate growth rate is the aggregate growth rate. What we're trying to demonstrate, I think, in the disclosures and the way that we've segmented the business is the future of the business really now sits in enterprise platforms and SMB. There are elements of the business that we are winding down and exiting over a period of time, that will be a drag until they're gone. But we did want to at least highlight across the 3 segments, what the ongoing sort of growth rate for the business is, in particular, how we're sort of competing and winning in the market and what the 3 segments look like, excluding kind of the drag from this other portfolio of activities that were, in some cases, purposely sort of looking to exit and wind down over a period of time because they don't align with the go-forward strategy for the business. So we think the disclosures we provided help to provide a lot more transparency around that. And obviously, the other revenue will continue to decline as that revenue attrites and we exit certain relationships over the coming years.

Our next question comes from Dave Koning with Baird.

I guess I'm kind of wondering how we see the acceleration picture going forward. You're talking about second half 4.5%. As we look forward, it seems the Middle East 1% dissipates, you get Worldpay revenue synergies probably incremental kind of going into next year and then Genius ramps. I mean do you feel pretty good today that 2027 will be an accelerating growth year?

Yes, absolutely, Dave. I think for the reasons you described, obviously, once we lap the headwinds from the Middle East as we get into Q2 of next year with the acceleration we're seeing around Genius, the front book kind of bookings numbers that we've been able to generate this year, all gives us confidence kind of going into next year that we should see an acceleration off of our current expected 4% to 5% constant currency ex disposition guide for 2026 without a doubt. It's a big shift. So obviously, moving revenue a point on a business of this size is a pretty meaningful increment kind of year-over-year, but we feel good certainly about the momentum that we'll have kind of exiting the year given everything that we're executing on heading into 2027.

And just a quick follow-up. SMB 4%, was that pretty equal between Worldpay and Global Payments?

Yes. It's really hard now that we segmented the business and combined the portfolios to really disaggregate between the 2 portfolios. I would say we haven't really talked about it. One of the -- the bright spots in SMBs, one of the less bright spots in SMB is the U.K. The U.K. market, I think, overall, just as a GDP matter is kind of struggling from a macro standpoint. And certainly, we're seeing a little bit of softness in the U.K. market. That's more coming from Worldpay, just given their presence, particularly in the SMB space there. So look, if you -- if I had to sort of try to pinpoint it, it's probably slightly more weighted to Global than Worldpay on the SMB side. But at this stage, given the work we've done to integrate the business, in particular, how we've aligned the segments, which has really been on an account-by-account, relationship-by- relationship basis. It's kind of hard now to disaggregate it back to what was kind of premerger Heritage Worldpay versus premerger Heritage Global Payments.

Our final question comes from Ramsey El-Assal with Cantor Fitzgerald.

I wanted to ask in the context of the higher customer yields you're seeing on Genius. Is there a back book of existing customers on the SMB side that you can convert to Genius? Could that become an important kind of accelerant or growth driver for, I guess, Genius and the SMB segment growth rate?

Ramsey, thanks for the question. It's Bob. The answer is yes. As we've mentioned a couple of times when this topic has come up, our focus has largely been on converting front book opportunities into Genius, attaching more product, adding more value around each of those engagements with prospects and clients. There is a back book. The back book of point of sale is largely serviced by our dealer network today. And as they're having conversations with their clients, there's opportunistic upgrades that are happening. I think the attractiveness of the new Genius technology that spans both the sleek hardware profile that we've built around the countertop experience, kiosks, digital menu boards and the new handhelds that's really attractive. The incremental functionality that Genius brings to bear, given where they were coming from, is very attractive. And so we do see a degree of kind of opt-in upgrades as customers are looking for increased functionality and a better experience overall. But there's not a mass campaign around back book conversion, and we haven't put a gun to anybody's head to force them with platform retirements or deprecation sort of expectations. So we continue to upgrade the back book at a measured pace, really on a voluntary basis as customers want to opt in to those new solutions. But 100% truly of our focus around Genius adoption is around horizontal vertical expansion, geographies, making it available in more of our distribution channels and increasing our sales footprint and sales effectiveness, both in terms of the digital client journey as well as kind of our traditional sales.

Okay. And a quick follow-up for me. In enterprise, in the slide presentation, I think you called out 30% growth in cross-sell bookings. I'm just wondering if you could comment a little further on where you're seeing success there, what that means?

Yes. I'll touch on that, Ramsey. Thanks for the question. It's really a commentary around our BaaS portfolio. Bob touched on BaaS and the importance of BaaS as a driver of growth across all 3 segments, it's particularly important in our enterprise channel. And we've seen really good progress this year, largely through a concerted effort to drive more cross-selling of our value-added services into existing client relationships that we have. So we have teams very much focused on net new payment opportunities, but we also have teams now very dedicated to cross-selling value-added services, whether it's revenue boost, fraud site, our authentication optimization solutions, et cetera, across our FX capabilities, across our portfolio of clients. We're seeing very good traction there, which is partially driving, obviously, the strong bookings growth that we've been able to articulate for the enterprise business on a year-to-date basis.

We have no further questions at this time. This concludes our call.