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Worldline (WRDLY)
OTHER OTC:WRDLY
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Worldline
(OTC:WRDLY)
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Rating:49Neutral
Price Target:
$0.70
▼(-15.00% Downside)
Action:ReiteratedDate:02/04/26
The score is held back primarily by ongoing profitability issues (net losses/negative ROE) and weak technical signals (below key moving averages, negative MACD). Earnings-call takeaways are mixed—cautious growth outlook and impairment-driven losses are partially offset by refinancing strength and strategic actions—while valuation support is limited by a negative P/E and no dividend data.
Positive Factors
High gross margin (~56.5%)
A ~56.5% gross margin indicates durable unit economics in payments and transaction services. High take-rates and service margins support reinvestment in fraud tools, gateways and operations, improving the company's ability to regain operating leverage as volumes stabilize over the medium term.
Moderate leverage and balanced capital structure
A ~42% equity ratio and sub-0.5 debt/equity provide structural financial flexibility. Moderate leverage reduces refinancing risk and gives room to fund strategic actions or absorb shocks while management executes transformation and potential disposals without immediate solvency pressure.
Refinancing completed and disposal planned (liquidity cushion)
Securing refinancing and maintaining ~EUR1.2bn cash plus a planned ~EUR410m MeTS disposal materially strengthens liquidity. This durable cash buffer supports operational continuity, debt servicing and targeted investments during the restructuring and recovery period.
Negative Factors
Consecutive net losses and negative ROE
Sustained net losses and negative return on equity constrain reinvestment and shareholder returns. Even with positive operating cash flow, poor net income conversion weakens internal funding for growth initiatives and prolongs the path to normalized profitability absent structural revenue improvement.
Large non‑cash goodwill impairment (EUR 4.1bn)
A EUR4.1bn impairment signals past overpayment or asset valuation issues and reduces balance sheet headroom. It increases future earnings volatility risk, may constrain M&A appetite, and elevates scrutiny on portfolio strategy and cash-return priorities over the medium term.
Structural revenue pressure and elevated SME churn
Organic revenue declines and SME churn reflect persistent demand headwinds in core merchant services. Reduced transaction volumes and negative mix pressure net-net margins and complicate margin recovery, making sustained growth dependent on retention, product differentiation, or successful portfolio reshaping.
Worldline (WRDLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$521.04M
Dividend YieldN/A
Average Volume (3M)7.33K
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth-1.81%
EPS Growth-392.27%
CountryUS
Employees18,112
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.16
Shares Outstanding567,928,340
10 Day Avg. Volume10,128
30 Day Avg. Volume7,327
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.28
Price to Sales (P/S)0.50
P/FCF Ratio7.22
Enterprise Value/Market Cap4.93
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit1.02
Enterprise Value/Ebitda5.79
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.38
Revenue Forecast (FY)$5.00B
Worldline Business Overview & Revenue Model
Company DescriptionWorldline SA provides payments and transactional services to financial institutions, merchants, corporations, and government agencies in France, rest of Europe, and internationally. The company operates through Merchant Services; Financial Services; and Mobility & e-Transactional Services segments. The Merchant Services segment offers commercial acquiring, terminal, omnichannel payment acceptance, private label card and loyalty, and digital retail services. The Financial Services segment provides issuing processing, acquiring processing, digital and mobile banking, and account payments, as well as payments processing back-office, clearing and settlement, and trade order management and financial data services; and fraud risk management, ATM management, trusted authentication, and payment software licensing solutions. The Mobility & e-Transactional Services segment offers trusted digitization, e-ticketing, e-consumer and mobility, customer engagement, and mobility and traceability solutions and services, as well as digital identity, digital signature, and cloud services. The company was formerly known as Atos Worldline S.A.S. and changed its name to Worldline SA in April 2014. Worldline SA was founded in 1973 and is headquartered in Puteaux, France.
How the Company Makes MoneyWorldline generates revenue primarily through transaction fees charged to merchants for processing payments, which constitutes a significant portion of its earnings. Additionally, the company earns money from service fees related to its value-added services, such as fraud detection and prevention, loyalty programs, and reporting tools. Worldline also benefits from partnerships with banks and financial institutions, allowing it to expand its reach and integrate its services into various platforms. The growth of e-commerce and digital payments has been a driving force behind its revenue model, as more businesses seek to enhance their payment capabilities and customer experience.
Worldline Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced picture: management met its committed 2025 financial guidance, made tangible progress on transformation (North Star), recorded operational wins (record transaction volumes, stable NPS, improved SMB churn) and advanced a significant pruning program and planned EUR 500m capital increase to strengthen the balance sheet. Offsetting these positives are meaningful near-term challenges — FY2025 organic revenue decline (~-2.4%), negative free cash flow, substantial non-cash goodwill and related impairments (several billion euros), continued pressure in Financial Services and certain geographies, and expected negative free cash flow in 2026 before benefits from transformation materialize. Overall, the company appears stabilized and executing a clear recovery plan, but material legacy impairments, cash/leveraging considerations and remediation costs mean the near-term picture remains mixed.Q4-2025 Updates
Positive Updates
Met Full-Year Financial Guidance
Reported pre-IFRS5 revenue of EUR 4.5 billion for FY2025 with an organic decline of -2.4%, and adjusted EBITDA of EUR 841 million (18.7% margin) — within the guidance range of EUR 830–855 million.
Stabilization and Q4 Momentum
Management reported revenue stabilization with Q4 organic revenue improvement (CEO cited Q4 organic -1.5%) and month-to-month improvement in SMB churn across geographies; CFO noted sequential stabilization in revenues after Q3.
Published Scope (IFRS 5) Results
On the restated/published scope (ex-METS), revenue was EUR 4.03 billion, adjusted EBITDA EUR 737 million and free cash flow of -EUR 26 million, with net debt at ~EUR 2.2 billion for the published perimeter.
Record Transaction Volumes & Customer Satisfaction
Axis acceptance processed more than 10 billion transactions and GoPay processed 3.4 billion transactions in 2025; average Net Promoter Score (NPS) held steady at 40 despite challenges.
Commercial Turnaround Progress
Churn improved across SMB geographies; Nordics, Germany and Switzerland returned to growth; Financial Services pipeline doubled since H1 2025; Enterprise showing momentum in kiosk/self-service (EV charging) vertical.
North Star Transformation Execution
Progress on the four North Star levers (simplify, converge, integrate, grow): closure/liquidation of 7 legal entities in 2025, decommissioning of 4 platforms, pilot of AML automation, ramp-up of offshore competence centers, and early GenAI adoption. Management targets EUR 210 million recurring EBITDA uplift by 2030 from these levers.
Value-Based Pricing & New Products
Value-based pricing contributed a positive EUR 15 million in Q4 2025; launched merchant loan product and other value-added offerings (We Rool, agentic commerce capabilities) to increase ARPU.
Pruning / Divestment Progress and Liquidity Actions
Five disposals signed or announced (including India merchant services, PaymentIQ, North America, Cetrel) with expected net proceeds in the range of EUR 540–590 million (management also referenced EUR 550–600m). Cash pooling and intercompany loans reduced external overdraft from EUR 1.6 billion to ~EUR 500 million; undrawn RCF of EUR 1.125 billion available.
Planned Capital Increase to Strengthen Balance Sheet
EUR 500 million capital increase planned (dual construct: reserved capital increase early March; rights issue mid‑March, subject to market conditions) with anchor commitments from BNP Paribas, Crédit Agricole and Bpifrance to reinforce strategic positioning and reduce leverage.
Workforce and Inventory Reductions
Headcount reduced ~30% from ~19,000 to ~13,000 FTEs as part of scope simplification; terminals inventory halved from EUR 70 million to EUR 33 million, improving working capital dynamics.
Negative Updates
Revenue Decline and Segment Weakness
Organic revenue declined -2.4% in FY2025 (pre-IFRS5). On the published scope, Merchant Services declined -1.4% and Financial Services declined -7.7%, reflecting adverse mix and contract terminations in Financial Services.
Adjusted EBITDA and Cash Compression vs Prior Year
Management disclosed an adjusted EBITDA reduction year-on-year of ~EUR 230 million which contributed to a year-on-year free cash flow reduction of ~EUR 150 million; FY2025 free cash flow was negative at -EUR 9 million (including -EUR 49 million in H2).
Large Goodwill and Other Impairments
Significant non-cash impairments materially impacted reported net income: earlier H1 goodwill impairment of EUR 4.1 billion plus an additional EUR 600 million in H2 tied to pruning scope; overall goodwill reduced from ~EUR 9.0 billion to EUR 3.8 billion (a EUR 5.2 billion reduction), and a EUR 290 million impairment on Ingenico-related preferred shares was recognized.
Net Debt / Leverage and Short-Term Liquidity Items
Net debt movement ~EUR 200 million year-on-year for continuing operations; post-pruned reported leverage around 2.5x (management target: <2x after planned disposals and capital increase). Convertible of EUR 414 million maturing in 2026 is a near-term liability to manage.
Cost Pressures and One-Offs
Total cost increase of ~EUR 100 million year-on-year: ~EUR 80 million linked to inflation (offset by structural cost savings) and ~EUR 50 million attributed to higher scheme fees and another ~EUR 50 million of one‑off transition/compliance/product remediation costs. Management expects remediation spending of ~EUR 30–40 million in 2026.
Continued Churn and Migration-Driven Attrition
Enterprise and certain regional books (e.g., Benelux) remain weak with ongoing churn partly driven by earlier contract terminations and platform migrations (notably e-commerce acceptance/platform sunsets), which management has factored into 2026 guidance.
Negative Free Cash Flow Outlook for 2026 (Pruned Scope)
Guidance for fully-pruned 2026 includes low single-digit organic growth but free cash flow expected negative in range -EUR 80 million to -EUR 70 million, indicating continued cash burn in the near term before expected improvements in 2027+.
Regulatory & Remediation Workload
Regulatory audits and a backlog of ongoing due-diligence remediation were acknowledged; these require continued investment and operational focus and contributed to one-off costs in 2025 and planned remediation spend in 2026.
Company Guidance
The company guided that 2026 will be a year of stabilization with a fully pruned perimeter expecting low single‑digit organic revenue growth, free cash flow of roughly -€80m to -€70m and a target reported leverage of less than 2x; management presented a post‑pruned 2025 baseline of €3.57bn sales, €631m adjusted EBITDA and €72m free cash (reported leverage ~2.5x) and reiterated the 2025 reported results of €4.5bn revenue (‑2.4% organic), €841m adjusted EBITDA (18.7% margin) and €‑9m free cash flow, cash on hand ~€1.1bn (continuing ops ~€900m), net debt ~€2.1–2.2bn, and normalized net income €175m (EPS €0.063); strategic actions include a planned €500m capital increase (reserve + rights issue), announced/pruned disposals expected to generate roughly €540–600m of proceeds, an undrawn RCF of €1.125bn, upcoming 2026 maturities (notably a €414m convertible), and longer‑term targets of ~4% CAGR to 2030 with adjusted EBITDA ~€1bn (or >€900m on the fully pruned scope) and €300–350m cash conversion (30–35%).Worldline Financial Statement Overview
Summary
Stable revenue base and solid gross margin, with moderate leverage and healthy operating cash flow. However, consecutive net losses, negative ROE, and weakening cash-flow growth meaningfully weigh on the score.Income Statement
Worldline's revenue growth has been steady, with a notable increase over the years, though it faced a slight decline in 2024. The gross profit margin remains strong at around 56.5% in 2024. However, the company has struggled with profitability, recording a net loss for the past two years, with a significant net loss margin of -6.41% in 2024. EBIT and EBITDA margins have shown improvement, yet the negative net income is a concern.45
Neutral
Balance Sheet
The company maintains a relatively stable equity ratio of 42.45% in 2024, indicating a balanced use of debt and equity. The debt-to-equity ratio is reasonable at 0.49, which suggests moderate leverage. However, the return on equity is negative due to the net losses, highlighting a lack of profitability despite a solid asset base.60
Neutral
Cash Flow
Worldline's operating cash flow remains healthy, although it has decreased from previous years. The free cash flow has been positive, but the growth rate is declining. The free cash flow to net income ratio is not favorable due to consistent net losses, suggesting cash flow is not translating into profit effectively.58
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.55B | 4.63B | 4.61B | 4.36B | 3.69B | 2.46B |
| Gross Profit | 2.53B | 2.61B | 2.52B | 1.92B | 1.33B | 878.00M |
| EBITDA | 443.40M | 372.00M | -276.00M | 831.50M | 743.50M | 458.40M |
| Net Income | -4.49B | -297.00M | -817.30M | 299.20M | -751.40M | 163.70M |
Balance Sheet | ||||||
| Total Assets | 15.93B | 19.42B | 21.73B | 21.86B | 20.04B | 19.67B |
| Cash, Cash Equivalents and Short-Term Investments | 1.85B | 1.80B | 1.95B | 1.92B | 1.13B | 1.34B |
| Total Debt | 3.97B | 4.03B | 4.05B | 4.13B | 4.56B | 4.85B |
| Total Liabilities | 11.00B | 10.20B | 12.17B | 11.32B | 10.13B | 9.28B |
| Stockholders Equity | 3.98B | 8.25B | 8.58B | 9.38B | 9.04B | 9.48B |
Cash Flow | ||||||
| Free Cash Flow | 294.80M | 321.60M | 458.90M | 724.10M | 727.50M | 367.50M |
| Operating Cash Flow | 551.20M | 603.10M | 791.80M | 1.05B | 953.10M | 507.60M |
| Investing Cash Flow | -337.30M | -245.80M | -212.40M | 29.50M | -537.70M | -1.15B |
| Financing Cash Flow | -567.30M | -585.20M | -415.80M | -606.60M | -416.40M | 1.47B |
Worldline Technical Analysis
Neutral
0.82
Price Trends
0.82
Negative
0.98
Negative
1.53
Negative
Market Momentum
>-0.01
Negative
52.49
Neutral
67.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRDLY, the sentiment is Neutral. The current price of 0.82 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.82, and below the 200-day MA of 1.53, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.49 is Neutral, neither overbought nor oversold. The STOCH value of 67.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WRDLY.
Worldline Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.61B | 20.49 | 35.56% | ― | 22.02% | 12.42% | |
71 Outperform | $4.04B | 18.31 | 15.40% | ― | 7.01% | 17.48% | |
71 Outperform | $1.49B | 22.18 | 10.24% | ― | 10.58% | -45.52% | |
70 Outperform | $2.11B | 23.00 | 10.21% | ― | 19.28% | 6.16% | |
68 Neutral | $2.74B | 10.00 | 24.41% | ― | 7.25% | -1.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | $521.04M | -0.09 | -70.77% | ― | -1.81% | -392.27% |
* Technology Sector Average
WRDLY
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.