Here's Why Shift4 Payments Inc. (FOUR) Declined -21.9% in Q3

Brown Brothers Harriman, an investment management company, released its Q3 2025 investor letter for the BBH Select Series - Mid Cap Fund. A copy of the same can be downloaded here. In the quarter, the fund decreased by -0.9% on a total return basis compared to the Russell Midcap Index’s 5.3% return. The Fund has decreased by a total return of -1.8%, YTD, compared to 10.4% for the Index. The third quarter experienced a boost in the low-quality rally that started late last year and gained momentum throughout 2025. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, BBH Select Series - Mid Cap Fund highlighted stocks such as Shift4 Payments, Inc. (NYSE:FOUR). Shift4 Payments, Inc. (NYSE:FOUR) offers software and payment processing solutions. The one-month return of Shift4 Payments, Inc. (NYSE:FOUR) was -8.58%, and its shares lost 34.27% of their value over the last 52 weeks. On December 09, 2025, Shift4 Payments, Inc. (NYSE:FOUR) stock closed at $66.90 per share, with a market capitalization of $5.929 billion.

BBH Select Series - Mid Cap Fund stated the following regarding Shift4 Payments, Inc. (NYSE:FOUR) in its third quarter 2025 investor letter:

"The Fund’s largest detractors to performance in the quarter were Shift4 Payments, Inc. (NYSE:FOUR), Globant S.A. (Globant), and Bruker Corp. (Bruker). Shift4 declined -21.9% during the quarter, ending with a weight of 4.4%. Shift4 is an integrated payments proces sor, specializing in the hospitality vertical, including restaurants, lodging, and leisure. In the quarter, the company slightly missed consensus estimates on volumes, EBITDA3, and EPS while slightly beating consensus on net revenue and free cash flow. Excluding the recent acquisition of tax-free shopping solutions provider Global Blue, annual guidance for net revenue was raised while the rest of the standalone guidance was reaffirmed. Guidance, including the acquisition of Global Blue, was below consensus estimates for volumes. Global Blue was accounted for under IFRS, and we believe this made it difficult for some sell-side analysts to update their models and led to confusion about the underlying performance of Shift4. However, we note that Shift4 continues to expect over 20% organic net revenue growth this year, and management believes the company is tracking toward the high-end of its intermediate term guidance issued in January."

Shift4 Payments, Inc. (NYSE:FOUR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Shift4 Payments, Inc. (NYSE:FOUR) at the end of the third quarter, which was 55 in the previous quarter. While we acknowledge the potential of Shift4 Payments, Inc. (NYSE:FOUR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Shift4 Payments, Inc. (NYSE:FOUR) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.