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EURONET WORLDWIDE, INC. (EEFT)·Q1 2025 Earnings Summary

Executive Summary

  • Record Q1 2025: revenue $915.5M (+7% YoY), operating income $75.2M (+18% YoY), adjusted EBITDA $118.7M (+9% YoY); adjusted EPS $1.13, or $1.33 excluding a $0.20 one-time operating tax charge, vs $1.28 (which included a $0.15 tax benefit) in Q1 2024 .
  • Broad-based strength: Money Transfer outperformed (revenue +9%, operating income +21%, adjusted EBITDA +15%), EFT grew on market expansion and access fees; epay growth muted by a $4.5M non-recurring operating tax payment .
  • Guidance reaffirmed: Management maintained FY 2025 adjusted EPS growth of 12%–16%, citing diversified global mix and no direct tariff impact; FX assumed flat in planning .
  • Emerging catalysts: Visa Direct integration (push-to-card to 4B Visa debit cards) and LATM JV ATM launches in Peru and Dominican Republic expand digital payout and cross-border footprint, supporting volume and margin durability .

What Went Well and What Went Wrong

What Went Well

  • Money Transfer delivered double-digit growth across all metrics; direct-to-consumer digital transactions +31% YoY, with gross margin expansion and scale leverage driving operating income up 21% .
  • EFT expanded margins and grew via new markets and access/interchange fees; operations launched in Dominican Republic and Peru, supported by Prosegur JV .
  • Management reaffirmed 12%–16% adjusted EPS growth for FY 2025 and highlighted resilience against tariff headlines: “we are reaffirming our expectation to produce 12% to 16% earnings growth for the year” .

What Went Wrong

  • epay’s operating income was restrained by a non-recurring $4.5M operating tax payment; excluding it, adjusted operating income would have grown 22% YoY and adjusted EBITDA 20% .
  • Consolidated other expense increased (FX loss $18.1M, interest expense $19.4M), pressuring below-the-line results; CFO flagged seasonal interest headwinds ahead as ATM cash rises into summer .
  • Intra-U.S. money transfer volumes declined, partially offsetting cross-border gains; management continues to compete in a hyper-competitive independent channel ecosystem .

Financial Results

Consolidated Trend (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$1,099.3 $1,047.3 $915.5
Operating Income ($USD Millions)$182.2 $122.7 $75.2
Adjusted EBITDA ($USD Millions)$225.7 $165.8 $118.7
GAAP Diluted EPS ($USD)$3.21 $0.98 $0.85
Adjusted EPS ($USD)$3.03 $2.08 $1.13

Year-over-Year (Q1 2025 vs Q1 2024)

MetricQ1 2024Q1 2025
Revenue ($USD Millions)$857.0 $915.5
Operating Income ($USD Millions)$64.0 $75.2
Adjusted EBITDA ($USD Millions)$108.8 $118.7
GAAP Diluted EPS ($USD)$0.55 $0.85
Adjusted EPS ($USD)$1.28 $1.13 (or $1.33 ex $0.20 one-time)

Segment Breakdown (Q1 2024 → Q1 2025)

SegmentRevenue ($M) Q1 2024Revenue ($M) Q1 2025Operating Income ($M) Q1 2024Operating Income ($M) Q1 2025Adjusted EBITDA ($M) Q1 2024Adjusted EBITDA ($M) Q1 2025
EFT Processing$217.2 $232.5 $21.5 $23.3 $44.7 $47.6
epay$257.1 $267.4 $26.6 $26.8 $28.3 $28.4
Money Transfer$384.6 $417.7 $37.2 $45.1 $44.5 $51.3

KPIs (Q1 2024 → Q1 2025)

KPIQ1 2024Q1 2025
EFT Transactions (Millions)2,502 3,463
Installed ATMs53,029 55,512
Active ATMs49,290 51,875
epay Transactions (Millions)953 1,134
epay POS Terminals~735,000 (flat) ~735,000
epay Retailer Locations~345,000 ~358,000
Money Transfer Transactions (Millions)40.6 44.6
Money Transfer Network Locations~583,000 ~624,000

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPS Growth (YoY)FY 202512%–16% (provided with FY24 results) 12%–16% reaffirmed Maintained
FX Planning AssumptionFY 2025Not specifiedAssume FX flat (no increases built in) Qualitative clarification
Interest Expense SeasonalityQ2–Q3 2025Not specifiedExpect higher interest expense as ATM cash rises seasonally Qualitative clarification
Tariff Impact AssessmentFY 2025Not specifiedNo direct business impact identified; diversified non-US revenue base Qualitative clarification

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Cross-border/FXMoney Transfer near double-digit cross-border growth; FX gains in other income Cross-border growth; 33% digital transactions Double-digit cross-border; operating margin expansion; FX loss below the line Improving volumes; FX volatility persisting
Digital Money Transfer+30% digital transactions +33% digital transactions +31% digital transactions; 55% digital payout volume Structural shift to digital accelerating
EFT Access Fees & InterchangeIntroductions in certain markets; margin uplift Fee increases aided growth Continued additions; surcharge acceptance in Europe discussed Expanding fee monetization footprint
Merchant Services ExpansionGrowth in acquiring; new outsourcing ATMs Continued growth; platform momentum Expansion into Portugal/Spain/Italy; Munich Airport processing win Building scale beyond Greece
Tariffs/MacroNot highlighted2025 EPS growth expected 12–16% despite macro No direct impact from U.S. tariffs; diversified mix Neutral impact so far
Visa Direct IntegrationN/AN/APartnership enables push-to-card to 4B Visa debit cards; just turned on, not yet in numbers New distribution tailwind
LATM JV ATM LaunchesN/AN/ALaunched independent ATM networks in Peru & DR Geographic expansion commencing

Management Commentary

  • CEO: “We achieved double-digit constant currency growth in operating income and adjusted EBITDA… We didn’t just tiptoe into double-digit growth territory. We kicked in the door.” .
  • CEO: “We do not see any direct impacts on our business as a result of the recent United States’ tariff actions… we are reaffirming our expectation to produce 12% to 16% earnings growth for the year.” .
  • CFO: “Adjusted EPS of $1.13… included a one-time charge of $0.20 per share… prior year’s $1.28 included a benefit of ~$0.15… on a pro forma basis, adjusted EPS grew 18% year-over-year.” .
  • CEO on Money Transfer: “Digital payout grew by 29% year-over-year, accounting now for 55% of our total volume… we’re hitting on all cylinders and money transfer.” .
  • CFO on FX: “We generally just expect that the FX rates will hold flat… we don’t try to outguess it.” .

Q&A Highlights

  • Visa Direct integration: switch activated only recently; no contribution in Q1 yet; expected to simplify and accelerate digital sends (name + card number), lowering payout costs vs cash .
  • LATM JV rollout: aggressive expansion planned with Prosegur, leveraging multi-currency cross-border transaction economics; early deployments in DR and Peru .
  • European ATM access fees: customers are accustomed to off-bank fees; bank “disloyalty” charges common; participation agreements extend bank reach and Euronet ATM utilization .
  • Merchant services ramp: Greece “crushing it”; expansion into Portugal/Spain/Italy underway; Munich Airport contract underscores multi-rail acceptance (QR, APMs) and REN capabilities .
  • FX/tariff backdrop: limited Q1 FX benefit; more activity starting in April; guidance incorporates no FX uplift; tariff headlines not impacting demand .

Estimates Context

Euronet modestly beat revenue and EPS consensus and missed EBITDA consensus in Q1.

MetricQ3 2024 Estimate*Q3 2024 ActualQ4 2024 Estimate*Q4 2024 ActualQ1 2025 Estimate*Q1 2025 Actual
Primary EPS (USD)3.1057*3.03 2.0568*2.08 1.0917*1.13
Revenue ($USD Millions)1,072.8*1,099.3 1,047.8*1,047.3 909.6*915.5
EBITDA ($USD Millions)230.8*225.7 163.5*165.8 119.1*118.7

Values retrieved from S&P Global.*

  • Significant items: Q1 adjusted EPS included a $0.20 one-time operating tax charge (repurchase of convertible bonds/operating tax matter effects), while the prior-year quarter had a $0.15 tax benefit; on apples-to-apples, adjusted EPS grew 18% YoY to $1.33 vs $1.13 .
  • Implication: Street likely raises Money Transfer estimates on sustained 30%+ digital growth and margin leverage; epay estimates should normalize higher after the one-time tax payment; consolidated below-the-line items (FX loss, interest) may keep EPS sensitivity to FX/seasonality in focus .

Key Takeaways for Investors

  • Mix-driven durability: Money Transfer’s digital pivot and cross-border momentum, paired with EFT fee capture and market expansion, underpins consolidated margin expansion (+80 bps YoY) and multi-year growth visibility .
  • Near-term catalysts: Visa Direct push-to-card enablement and LATM ATM launches extend distribution, lower payout cost, and add high-value FX transactions; expect contribution from Q2 onward .
  • Estimates bias upward on an “apples-to-apples” basis: Excluding one-time tax effects, adjusted EPS grew 18% YoY in Q1; Money Transfer strength and epay normalization point to upward revisions despite seasonal interest headwinds .
  • FX/interest sensitivity: Plan for higher interest expense into summer with elevated ATM cash and continued FX volatility; company models FX flat, limiting upside from currency unless sustained tailwinds emerge .
  • Competitive moat: REN technology, omni-channel payouts, bank participation agreements, and regulatory/compliance credentials position Euronet to win across payment rails and geographies .
  • Capital allocation: Ongoing buybacks (0.6M shares; ~1% future EPS uplift) and $492M convertible note repurchases signal balance sheet agility alongside net debt near ~1x EBITDA, per CFO commentary .
  • Watch intra-U.S. money transfer softness vs robust cross-border/digital growth; sustained digital gains and Visa Direct should offset domestic pressure over time .