Visa's (V) Q1 2025 earnings report highlights a strong financial performance, with net revenue increasing by 10% year-over-year to $9.51 billion, up from $8.63 billion in Q1 2024. This growth was primarily driven by increases in processed transactions, nominal cross-border volume, and nominal payments volume, partially offset by higher client incentives. Notably, exchange rate movements did not materially impact net revenue growth during this period.

Operating expenses rose by 22% year-over-year, reaching $3.28 billion compared to $2.68 billion in Q1 2024. This increase was attributed to higher personnel costs, severance expenses, and general and administrative expenses, including lease consolidation costs and unfavorable foreign currency fluctuations. Depreciation and amortization also contributed to the rise due to ongoing investments and acquisitions.

Net income for Q1 2025 was $5.12 billion, reflecting a 5% increase from $4.89 billion in Q1 2024. Diluted earnings per share (EPS) grew by 8% to $2.58, compared to $2.39 in the prior year. This improvement underscores Visa's ability to maintain profitability despite rising expenses.

Visa's cash flow from operating activities increased significantly, reaching $5.40 billion in Q1 2025, up from $3.61 billion in Q1 2024. This growth was driven by the underlying business expansion and favorable timing of income tax payments. Additionally, cash flow from investing activities turned positive at $790 million, compared to a negative $1.89 billion in the prior year, due to higher proceeds from investment security sales and the absence of significant purchases. However, cash used in financing activities increased to $5.48 billion, primarily due to higher share repurchases and dividends paid.

Visa's international revenue grew by 16% year-over-year, reaching $5.77 billion, while U.S. revenue increased by 3% to $3.74 billion. This highlights the company's strong performance in international markets, which contributed significantly to overall revenue growth.

The company reported value-added services revenue of $2.4 billion, a 17% increase from $2.1 billion in Q1 2024. This growth was driven by consulting and marketing services, issuing solutions, and risk and identity solutions, reflecting Visa's focus on diversifying its revenue streams.

Visa completed the acquisition of Featurespace Limited in December 2024 for $946 million. Featurespace specializes in real-time AI payments protection technology, which aligns with Visa's strategy to enhance its fraud prevention and financial crime risk mitigation capabilities.

The company repurchased 13 million shares of Class A common stock for $3.9 billion during Q1 2025, leaving $9.1 billion in remaining authorized funds for share repurchases. Additionally, Visa declared and paid $1.2 billion in dividends during the quarter, reflecting its commitment to returning value to shareholders.

Visa's operating income increased to $6.23 billion, up from $5.95 billion in Q1 2024, despite higher operating expenses. This demonstrates the company's ability to sustain strong operational performance while managing cost pressures.

The company's total assets decreased slightly to $91.89 billion as of December 31, 2024, compared to $94.51 billion as of September 30, 2024. This decline was primarily due to reductions in investment securities and settlement receivables, partially offset by increases in goodwill and cash equivalents.