AI Takeaway
GPN reported a dramatic Q1 FY2026 swing to a net loss of $1.80B (EPS -$6.59) despite revenue surging 63.1% to $2.97B, driven largely by acquisition-related costs, a massive jump in SG&A, and sharply negative operating and free cash flows.
Revenue
$2.97B
++63.14% YoY
EPS (Basic)
$-6.59
-631.45% YoY
Operating Income
$-15.65M
-104.21% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue jumped 63.1% YoY to $2.97B from $1.82B, likely reflecting the consolidation of acquired businesses. However, Cost of Revenue rose even faster at 157.2% YoY to $1.27B, suggesting the revenue mix shift from acquisitions is margin-dilutive.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
SG&A expenses rose 78.8% YoY to $1.71B, contributing to an operating loss of -$15.6M versus operating income of $372.0M in the prior year period — a swing of over $387M. This reflects elevated integration, restructuring, or transaction costs associated with recent corporate activity.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Net loss of -$1.80B (vs. net income of $305.7M prior year) implies approximately $1.78B in non-operating losses beyond the operating loss, potentially including goodwill impairment, debt-related charges, or transaction costs tied to the significant balance sheet expansion.
Source: Source: 10-Q Income Statement & Balance Sheet (XBRL Financial Data)
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Upgrade to unlockLong-term debt stands at $22.70B, up 41.0% YoY, with a Debt-to-Equity ratio of 1.66. The company's negative operating cash flow of -$288.8M raises questions about near-term ability to service this debt load without asset sales or additional financing.
Source: Source: 10-Q Balance Sheet & Cash Flow Statement (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.96 versus the $2.86 analyst consensus — a +3.7% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.97B | $1.82B | +63.14% |
Cost of Revenue | $1.27B | $495.18M | +157.20% |
Operating Income | $-15.65M | $371.96M | -104.21% |
Net Income | $-1.8B | $305.73M | -688.71% |
EPS (Basic) | $-6.59 | $1.24 | -631.45% |
EPS (Diluted) | $-6.59 | $1.24 | -631.45% |
SG&A Expense | $1.71B | $957.18M | +78.83% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $64.25B | $47.62B | +34.94% |
Current Assets | $11.67B | $6.73B | +73.39% |
Total Liabilities | $39.58B | $24.59B | +60.95% |
Current Liabilities | $14.75B | $7.14B | +106.52% |
Stockholders' Equity | $23.79B | $22.25B | +6.94% |
Cash & Equivalents | $5.86B | $2.71B | +115.96% |
Long-Term Debt | $22.7B | $16.09B | +41.05% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-288.82M | $555.12M | -152.03% |
Investing Cash Flow | $5.72B | $-173.09M | +3402.45% |
Financing Cash Flow | $-8.41B | $-31.53M | -26578.02% |
Share Buybacks | $549.93M | $446.29M | +23.22% |
D&A | $864.76M | $292.59M | +195.56% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | -0.5% | 20.4% | -20.96% |
Net Margin | -60.6% | — | — |
ROE | -7.6% | — | — |
ROA | -2.8% | — | — |
Current Ratio | $0.792 | — | — |
Debt to Equity | $1.664 | — | — |
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GPN reported a net loss of -$1.80B in Q1 FY2026, compared to net income of $305.7M in the same period last year — a decline of 688.7%. EPS fell to -$6.59 from +$1.24, driven by surging costs related to acquisition activity and large non-operating charges.
GPN's revenue grew 63.1% YoY to $2.97B in Q1 FY2026, likely reflecting the consolidation of recently acquired businesses into its financial results. However, costs grew even faster, with Cost of Revenue up 157.2% and SG&A up 78.8%, resulting in an operating loss despite the top-line surge.
GPN faces notable near-term financial pressures: its current ratio of 0.79 means current liabilities exceed current assets, operating cash flow was -$288.8M, and long-term debt stands at $22.70B. While the company holds $5.86B in cash, the combination of negative cash generation and high leverage warrants close monitoring.
The net loss of -$1.80B significantly exceeds the operating loss of -$15.6M, implying approximately $1.78B in non-operating charges such as goodwill impairment, debt costs, or transaction-related write-downs. SG&A also surged 78.8% YoY to $1.71B, reflecting elevated integration and restructuring expenses.
GPN's long-term debt rose 41.0% YoY to $22.70B, and total liabilities surged 61.0% to $39.58B, reflecting significant acquisition financing. The Debt-to-Equity ratio stands at 1.66, and financing cash outflows of -$8.41B suggest the company may be actively restructuring or repaying portions of its acquisition-related debt.