Why One Fund Is Doubling Down on Shift4’s 61% Revenue Surge With a $392 Million Bet

1 month ago 24

Jonathan Ponciano, The Motley Fool

Tue, November 18, 2025 astatine 6:08 AM CST 5 min read

California-based Darlington Partners Capital Management purchased 105,320 further shares of Shift4 Payments successful the 3rd quarter.
At quarter-end, the money reported holding astir 5.1 cardinal full shares of Shift4, valued astatine $392.6 million.
The presumption is astir 13.3% of wide AUM, making it the fund's second-largest holding.
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California-based Darlington Partners Capital Management accrued its involvement successful Shift4 Payments (NYSE:FOUR) by 105,320 shares successful the 3rd quarter, according to an SEC filing released connected Friday.

According to a filing with the Securities and Exchange Commission (SEC) released connected Friday, Darlington Partners Capital Management bought 105,320 further shares of Shift4 Payments (NYSE:FOUR) successful the 3rd quarter. The post-transaction presumption reached astir 5.1 cardinal shares with a reported worth of $392.6 cardinal astatine quarter-end. The presumption accounted for 13.3% of the fund's $3 cardinal successful reportable U.S. equity assets.

Top holdings aft the filing:

NASDAQ: WMG: $408.6 cardinal (13.8% of AUM)
NYSE: FOUR: $392.6 cardinal (13.2% of AUM)
NYSE: CRM: $296.7 cardinal (10% of AUM)
NASDAQ: TPG: $283.2 cardinal (9.6% of AUM)
NYSE: TKO: $272.7 cardinal (9.2% of AUM)

As of Monday's marketplace close, shares of Shift4 were priced astatine $67.65, down 30% implicit the past twelvemonth and acold underperforming the S&P 500, which is up astir 14% successful the aforesaid period.

Metric

Value

Price (as of marketplace adjacent Monday)	$67.65
Market Capitalization	$6 billion
Revenue (TTM)	$3.9 billion
Net Income (TTM)	$194.8 million

Shift4 Payments, Inc. is simply a starring supplier of integrated outgo and commerce technology, supporting implicit 4,000 employees and a wide merchant base. The institution leverages proprietary bundle and hardware to present secure, scalable solutions that streamline outgo acceptance and concern operations. Its strategical absorption connected omni-channel capabilities and value-added services positions it competitively successful the evolving payments landscape. It serves businesses successful hospitality, retail, stadiums, amusement venues, and e-commerce sectors, targeting merchants seeking broad outgo and exertion integration.

Darlington’s latest determination underscores a halfway constituent of its playbook: doubling down erstwhile condemnation outweighs volatility. Shift4 remains 1 of the fund’s astir concentrated bets, and expanding the presumption during a twelvemonth erstwhile the banal fell 30% signals assurance not conscionable successful the company’s marketplace positioning, but successful management’s quality to compound net done standard and disciplined execution.

The firm's third-quarter net study supports that thesis. Shift4 posted $589.2 cardinal successful gross gross little web fees, up 61% from 1 twelvemonth prior, alongside 62% gross-profit maturation and $292.1 cardinal successful adjusted EBITDA astatine a 50% margin. The institution besides continued expanding internationally and crossed verticals, and authorized a $1 cardinal stock repurchase program—the largest successful its history.

Against the remainder of Darlington’s book, Shift4—now 13.2% of AUM—sits conscionable down Warner Music Group, which is down 7.5% implicit the past twelvemonth and besides reflects the fund’s willingness to clasp concentrated, multi-year compounders adjacent amid near-term drawdowns. For investors, the cardinal takeaway is that Darlington isn’t treating Shift4 arsenic a speedy trade; it’s treating it arsenic a halfway concern it wants to ain done the adjacent limb of growth.