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Worldline (WRDLY)
OTHER OTC:WRDLY
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Worldline
(OTC:WRDLY)
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Rating:49Neutral
Price Target:
$0.82
▼(-0.49% Downside)
Action:ReiteratedDate:03/18/26
The score is held down primarily by weak financial performance (revenue decline, severe losses, and weakening equity/cash generation). Technicals are only modestly supportive, showing a short-term lift but a weaker long-term trend. The earnings call adds some support due to a defined balance-sheet and turnaround plan, but near-term guidance still points to negative free cash flow, keeping the overall outlook mixed.
Positive Factors
Scale of transaction processing
Large, recurring transaction volumes across merchant acquiring and issuer processing create durable revenue baselines and high operating leverage. Scale supports network effects, negotiating power with schemes/partners, and predictable fee income that sustains cash generation across cycles.
Resilient operating margins / adjusted EBITDA
Sustained mid-teens EBITDA margins and healthy gross margin indicate structural profitability in core payments operations. These margins provide cushion to fund transformation, absorb scheme/processing cost pressure, and enable reinvestment in product development over the medium term.
Active restructuring and liquidity actions
A clear pruning and disposal program plus sizeable committed liquidity (RCF) and a planned capital increase strengthen solvency and give management runway. Structural actions reduce complexity, improve working capital, and materially de-risk leverage over the next 2–3 quarters.
Negative Factors
Revenue decline & earnings volatility
Material revenue contraction and extreme bottom‑line volatility undermine long-term cash generation and operational planning. Persistent declines reduce scale benefits, make margin recovery harder, and constrain ability to invest in growth initiatives without further capital raises.
Large non‑cash impairments
Multi‑billion impairments materially erode equity and reflect weaker recoverable cash flows from legacy assets. This reduces balance sheet headroom, increases sensitivity to future shocks, and signals past overpayment risks that limit management's flexibility on M&A and capital returns.
Weakened balance sheet & near‑term cash burn
Expected negative free cash flow in 2026 and near‑term maturities increase refinancing and liquidity risk despite planned measures. Elevated reported leverage and reduced equity cushion limit maneuverability and raise probability of further capital actions if disposals or the capital increase underperform.
Worldline (WRDLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$937.27M
Dividend YieldN/A
Average Volume (3M)7.33K
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth-1.81%
EPS Growth-392.27%
CountryUS
Employees18,112
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.32
Shares Outstanding646,502,870
10 Day Avg. Volume10,128
30 Day Avg. Volume7,327
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.13
Price to Sales (P/S)0.11
P/FCF Ratio2.69
Enterprise Value/Market Cap2.48
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit1.08
Enterprise Value/Ebitda3.35
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.1
Revenue Forecast (FY)$4.91B
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 primarily makes money by charging fees for processing and enabling digital payment transactions and by providing recurring technology and operations services to merchants, financial institutions, and enterprises/public entities. Key revenue streams generally include: (1) Merchant Services (acquiring): Worldline earns transaction-based fees from merchants for accepting card and other digital payments. This can include merchant discount fees (a percentage of payment volume) and/or per-transaction processing charges, plus recurring fees for payment terminals/POS solutions, e-commerce payment gateway access, value-added services (fraud prevention, tokenization, analytics), and sometimes equipment rental/maintenance. (2) Financial Services (issuer processing and related services): Worldline provides processing platforms and operational services to banks and card issuers, earning revenues through per-card/per-transaction processing fees and recurring platform/service fees for activities such as authorization, clearing/settlement support, card lifecycle management, dispute handling, and compliance-related services. (3) Mobility & e-Transactional Services / digital services for enterprises and the public sector: Worldline generates revenue from contracts to run digital transaction platforms (e.g., ticketing, e-services, digital identity/secure transactions, and other payment-adjacent transaction processing), which may be priced as recurring service/platform fees, usage-based fees, and project/integration fees. Across segments, earnings are influenced by payment volumes and transaction counts, customer contract terms, mix of value-added services, and regulated interchange and scheme fees that affect net take rates. Specific material partnerships or customer concentration details are not available in this response (null).
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
Fundamentals are pressured by declining revenue and highly unstable profitability, including a severe net loss that eroded equity and worsened leverage metrics. Positives include still-healthy gross margin and positive operating/free cash flow, but free cash flow weakened sharply and does not offset elevated earnings volatility and reduced financial flexibility.Income Statement
Profitability has deteriorated meaningfully. Revenue fell sharply in 2025 (down ~14.9% year over year), and while gross margin remains reasonable (~41% in 2025), operating profitability is thin (EBIT margin ~2.9%). Most notably, net results swung to a very large loss in 2025 (net margin about -128%), following losses in 2023–2024 and only one recent profitable year in 2022. The key weakness is unstable bottom-line performance and declining revenue, which outweighs the still-positive EBITDA margin (~18% in 2025).28
Negative
Balance Sheet
Leverage is moderate but trending worse. Debt-to-equity increased to ~0.96 in 2025 from ~0.49 in 2024, driven by a large drop in equity, reducing balance-sheet cushion. Total debt also declined versus 2024, which helps, but returns to shareholders are deeply negative due to the 2025 loss (return on equity about -152%). Overall, the balance sheet is not overly levered in absolute terms, but weakening equity and very poor returns raise risk.52
Neutral
Cash Flow
Cash generation remains positive but is weakening. Operating cash flow was positive in 2025 (~$398M) and free cash flow stayed positive (~$160M), but free cash flow fell ~45.8% year over year. Cash flow also looks low relative to the scale of net losses, and coverage metrics are modest (operating cash flow coverage around 0.07–0.15 over the period shown). The main strength is continued positive free cash flow; the main weakness is the downtrend and limited cash support versus recent earnings volatility.43
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.87B | 4.63B | 4.61B | 4.36B | 3.69B |
| Gross Profit | 1.59B | 2.61B | 2.52B | 1.92B | 1.33B |
| EBITDA | 702.34M | 372.00M | -276.00M | 831.50M | 743.50M |
| Net Income | -4.95B | -297.00M | -817.30M | 299.20M | -751.40M |
Balance Sheet | |||||
| Total Assets | 13.14B | 19.42B | 21.73B | 21.86B | 20.04B |
| Cash, Cash Equivalents and Short-Term Investments | 941.20M | 1.80B | 1.95B | 1.92B | 1.13B |
| Total Debt | 3.12B | 4.03B | 4.05B | 4.13B | 4.56B |
| Total Liabilities | 9.10B | 10.20B | 12.17B | 11.32B | 10.13B |
| Stockholders Equity | 3.25B | 8.25B | 8.58B | 9.38B | 9.04B |
Cash Flow | |||||
| Free Cash Flow | 159.93M | 321.60M | 458.90M | 724.10M | 727.50M |
| Operating Cash Flow | 398.43M | 603.10M | 791.80M | 1.05B | 953.10M |
| Investing Cash Flow | -365.00M | -245.80M | -212.40M | 29.50M | -537.70M |
| Financing Cash Flow | -439.16M | -585.20M | -415.80M | -606.60M | -416.40M |
Worldline Technical Analysis
Positive
0.82
Price Trends
0.79
Positive
0.88
Negative
1.40
Negative
Market Momentum
>-0.01
Positive
55.54
Neutral
31.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRDLY, the sentiment is Positive. The current price of 0.82 is above the 20-day moving average (MA) of 0.77, above the 50-day MA of 0.79, and below the 200-day MA of 1.40, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 55.54 is Neutral, neither overbought nor oversold. The STOCH value of 31.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $3.46B | 21.00 | 34.42% | ― | 22.02% | 12.42% | |
71 Outperform | $4.05B | 21.93 | 15.43% | ― | 7.01% | 17.48% | |
71 Outperform | $1.63B | 26.33 | 9.84% | ― | 10.58% | -45.52% | |
70 Outperform | $2.26B | 36.17 | 9.82% | ― | 19.28% | 6.16% | |
68 Neutral | $2.81B | 11.26 | 23.78% | ― | 7.25% | -1.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | $937.27M | -0.09 | -142.62% | ― | -1.81% | -392.27% |
* Technology Sector Average
WRDLY
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0.82
-3.12
-79.16%
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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.