Executive Summary

Q2 2023 revenue was $118.4M GAAP and $123.3M constant currency; exchanges drove 83% of revenue as Ebix emphasized net-basis comparability versus prior-year gross prepaid card accounting .
GAAP operating income fell 3.3% YoY to $29.1M (non-GAAP operating income up 1.8% to $34.6M); GAAP diluted EPS collapsed to $0.01, driven by $16.2M higher debt facility-related costs and $4.1M FX differential loss YoY, partially offset by $2.3M lower taxes .
Management reiterated an aspirational goal of a debt-free company in 2023 and cited ongoing non-operating cost headwinds; liquidity stood at $88.3M (cash, equivalents, ST investments, restricted cash) at quarter end .
Shares negatively reacted to the change in prepaid card revenue presentation (gross to net), which reduced GAAP revenue optics despite comparable net-basis growth; investors focused on optics and debt costs .

What Went Well and What Went Wrong

What Went Well

Exchanges remained the largest channel, accounting for 83% of Q2 revenue; exchanges and RCS both grew YoY on a non-GAAP net basis (+3.1% total) .
Non-GAAP operating income rose to $34.6M (+1.8% YoY) while CFO highlighted EBITDA plus stock comp of $34.03M (~28.7% of worldwide revenues), underscoring business fundamentals .
CEO emphasized operating results were “in line with our expectations” and reiterated the goal of becoming debt-free in 2023, signaling strategic focus on balance sheet repair .

What Went Wrong

GAAP diluted EPS dropped to $0.01 vs. $0.63 in Q2 2022, driven by increased non-operating costs tied to lending facilities (+$16.2M YoY) and FX differential loss (+$4.1M YoY) .
GAAP operating income declined 3.3% YoY; net income fell to $0.3M (vs. $19.3M), highlighting the outsized impact of financing and FX on bottom line .
Accounting presentation change (prepaid cards net vs. prior gross) reduced GAAP revenue optics vs. the prior year, contributing to investor concern and stock pressure post-report .

Financial Results

GAAP Results vs Prior Periods and Prior Year (exact figures)

Metric	Q2 2022	Q1 2023	Q2 2023
Revenue ($USD Millions)	$250.781	$242.761	$118.430
Operating Income ($USD Millions)	$30.107	$30.485	$29.141
Net Income ($USD Millions)	$19.343	$7.073	$0.308
Diluted EPS ($USD)	$0.63	$0.23	$0.01

Note: Beginning April 1, 2023, prepaid card revenues are presented on a net basis; prior periods reflect gross basis. See the company’s comparability note .

Comparable (Non-GAAP, Net-Basis) Revenue Comparison

Metric	Q2 2022 (Net-Basis)	Q2 2023
Total Revenue ($USD Millions)	$114.924	$118.430
Constant Currency Revenue ($USD Millions)	$114.924	$123.255
YoY Growth (Reported, Net-Basis)	—	+3.1%
YoY Growth (Constant Currency)	—	+7.2%

Segment/Channel Breakdown (Net-Basis)

Channel Revenues ($USD Thousands)	Q2 2022	Q2 2023	YoY Change
Exchanges	$95,087	$98,078	+3.1%
RCS	$19,837	$20,352	+2.6%
Total	$114,924	$118,430	+3.1%
Total Constant Currency	$114,924	$123,255	+7.2%

KPIs and Selected Cash Metrics

KPI	Q4 2022	Q1 2023	Q2 2023
EBITDA + Stock Comp ($USD Millions)	$34.3 (Non-GAAP operating income; EBITDA+SBC for FY context in filings)	$36.1; ≈30.8% of revenues ex prepaid cards	$34.03; ≈28.7% of worldwide revenues
Liquidity (Cash, Equivalents, ST Investments, Restricted) ($USD Millions)	$124.959 YE restricted cash combined; cash $110.637 at YE	$108.9	$88.3
Interest Paid (period stated) ($USD Millions)	$33.244 FY 2022	$17.5 in Q1 2023	$36.3 in 1H 2023
Taxes Paid (period stated) ($USD Millions)	$24.201 FY 2022	$3.4 in Q1 2023	$19.2 in 1H 2023
Capex (period stated) ($USD Millions)	$14.476 FY 2022	$2.6 in Q1 2023	$7.9 in 1H 2023
Principal Payments (period stated) ($USD Millions)	$23.464 FY 2022	$17.5 in Q1 2023	$15.0 in 1H 2023

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Diluted Share Count (approx.)	Q3 2023	—	~30.9M	Provided
Debt Leverage Target	FY 2023	Debt-free aspiration stated in Q1 2023	Debt-free aspiration reiterated	Maintained

Note: No formal revenue, margin, OpEx, tax rate, or segment guidance ranges were provided in the Q2 2023 press release; Q&A transcript was not available in our document set to validate any additional guidance.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2022 and Q1 2023)	Current Period (Q2 2023)	Trend
Debt costs / refinancing	Higher interest and advisory fees depressed net income; refinancing efforts ongoing . In Q1, non-operating costs continued to hamper results .	Non-operating costs remained a major headwind; $16.2M YoY increase in debt facility costs .	Persistent headwind; emphasis on deleveraging .
EbixCash IPO	Seen as a lever to reduce interest costs; working with advisors .	Management “looking forward” to IPO; also exploring carve-outs .	DRHP filed; IPO subject to market/regulatory approvals .
Prepaid card accounting	2022 reported on gross basis .	Q1 disclosed revenue mix impacts (prepaid cards down) .	From April 1, 2023, prepaid cards presented on net basis; comparability note added .
FX impacts	Strong negative FX impact in Q4 2022 .	Q1 2023 FX loss of $2.1M .	Q2 FX differential loss of $4.1M YoY; Q2 FX loss of $0.84M .
Liquidity & cash generation	Q4 2022 operating cash flow $32.5M .	Liquidity $108.9M at 3/31/23 .	Liquidity $88.3M at 6/30/23; significant 1H interest/tax/principal payments .

Note: A Q2 2023 earnings call transcript was not available in our document catalog; we relied on press release disclosures for themes.

Management Commentary

CEO (Robin Raina): “Our operating results in Q2 2023 are in line with our expectations… we are accordingly still committed to the aspirational goal of a debt-free Ebix in the year 2023 itself.”
CFO (Amit Kumar Garg): “In Q2 2023, EBITDA plus noncash stock compensation added to $34.03 million, which translates to approximately 28.7% of our worldwide revenues… Despite these substantial payments adding to $79 million just for these items, the Company had strong liquidity on hand… of $88.3 million.”
Context (Q1 2023): CEO emphasized YOY growth ex prepaid cards and reiterated debt-free aspiration; CFO highlighted EBITDA+SBC margin of ~30.8% ex prepaid cards .

Q&A Highlights

A complete Q2 2023 earnings call transcript was not available in our document set; therefore, specific Q&A themes, guidance clarifications, or tone shifts cannot be validated from primary sources for this period.

Estimates Context

S&P Global Wall Street consensus estimates for EBIX in Q2 2023 were unavailable through our S&P Global integration; comparisons vs. consensus are therefore not shown. Values retrieved from S&P Global: unavailable.

Key Takeaways for Investors

The quarter’s core operations were resilient, but headline GAAP EPS was overwhelmed by financing costs and FX; narrative remains centered on deleveraging and the EbixCash IPO pathway .
The change to net presentation for prepaid card revenues materially alters YoY optics; focus on net-basis and constant-currency growth (+3.1% reported; +7.2% CC) to assess underlying momentum .
Exchanges continue to anchor the model (83% of Q2 revenue) with modest growth; RCS also expanded YoY on a net basis .
Liquidity remained adequate ($88.3M), but servicing debt (interest $36.3M in 1H) and taxes ($19.2M in 1H) consumed cash; monitoring credit facility developments is critical for equity risk-reward .
Near term, stock moves are likely sensitive to any updates on refinancing, IPO timing, and non-operating cost trajectory; headline EPS will remain levered to debt costs and FX .
Absent formal guidance, watch diluted share count (~30.9M expected for Q3) and operating income progression as proxies for run-rate health .
Medium-term thesis hinges on execution in exchanges, normalization of non-GAAP margins, and resolving balance sheet constraints to re-rate equity on core cash generation .

EBIX INC (EBIX)·Q2 2023 Earnings Summary