California-based Darlington Partners Capital Management increased its stake in Shift4 Payments (FOUR 3.19%) by 105,320 shares in the third quarter, according to an SEC filing released on Friday.
What Happened
According to a filing with the Securities and Exchange Commission (SEC) released on Friday, Darlington Partners Capital Management bought 105,320 additional shares of Shift4 Payments (FOUR 3.19%) in the third quarter. The post-transaction position reached nearly 5.1 million shares with a reported value of $392.6 million at quarter-end. The position accounted for 13.3% of the fund's $3 billion in reportable U.S. equity assets.
What Else to Know
Top holdings after the filing:
- NASDAQ: WMG: $408.6 million (13.8% of AUM)
- NYSE: FOUR: $392.6 million (13.2% of AUM)
- NYSE: CRM: $296.7 million (10% of AUM)
- NASDAQ: TPG: $283.2 million (9.6% of AUM)
- NYSE: TKO: $272.7 million (9.2% of AUM)
As of Monday's market close, shares of Shift4 were priced at $67.65, down 30% over the past year and far underperforming the S&P 500, which is up nearly 14% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Monday) | $67.65 |
| Market Capitalization | $6 billion |
| Revenue (TTM) | $3.9 billion |
| Net Income (TTM) | $194.8 million |
Company Snapshot
Shift4 Payments, Inc. is a leading provider of integrated payment and commerce technology, supporting over 4,000 employees and a broad merchant base. The company leverages proprietary software and hardware to deliver secure, scalable solutions that streamline payment acceptance and business operations. Its strategic focus on omni-channel capabilities and value-added services positions it competitively in the evolving payments landscape. It serves businesses in hospitality, retail, stadiums, entertainment venues, and e-commerce sectors, targeting merchants seeking comprehensive payment and technology integration.
Foolish Take
Darlington’s latest move underscores a core element of its playbook: doubling down when conviction outweighs volatility. Shift4 remains one of the fund’s most concentrated bets, and increasing the position during a year when the stock fell 30% signals confidence not just in the company’s market positioning, but in management’s ability to compound earnings through scale and disciplined execution.
The firm's third-quarter earnings report supports that thesis. Shift4 posted $589.2 million in gross revenue less network fees, up 61% from one year prior, alongside 62% gross-profit growth and $292.1 million in adjusted EBITDA at a 50% margin. The company also continued expanding internationally and across verticals, and authorized a $1 billion share repurchase program—the largest in its history.
Against the rest of Darlington’s book, Shift4—now 13.2% of AUM—sits just behind Warner Music Group, which is down 7.5% over the past year and also reflects the fund’s willingness to hold concentrated, multi-year compounders even amid near-term drawdowns. For investors, the key takeaway is that Darlington isn’t treating Shift4 as a quick trade; it’s treating it as a core business it wants to own through the next leg of growth.
Glossary
Stake: The ownership interest or investment a fund or individual holds in a company.
13F assets under management (AUM): The total value of U.S. equity securities reported by an institutional investment manager in SEC Form 13F filings.
Reportable 13F assets: U.S. publicly traded securities that institutional managers must disclose quarterly to the SEC on Form 13F.
Post-trade position: The total number of shares or value held in a security after a transaction is completed.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Omni-channel: An approach that integrates multiple sales and service channels to provide a seamless customer experience.
Value-added services: Additional features or offerings that enhance a core product, often generating extra revenue.
Integrated payment processing: Combining payment acceptance with other business systems for streamlined transactions and operations.
Point-of-sale (POS) solutions: Hardware and software systems used by businesses to process customer payments at the time of sale.
Compound annual growth rate (CAGR): The average annual growth rate of a value over a specified period, assuming compounding.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Proprietary software: Software owned and controlled by a company, not licensed for public use.
