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EURONET WORLDWIDE, INC. (EEFT)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered solid growth: revenue $1.074B (+9% y/y), operating income $158.6M (+18% y/y), adjusted EBITDA $206.2M (+16% y/y), and adjusted EPS $2.56 (+14% y/y), with consolidated operating margin expansion of 112 bps y/y .
  • Results were led by Money Transfer: revenue +9%, operating income +39%, adjusted EBITDA +33%, and operating margin expansion of 296 bps, powered by cross‑border volume and digital transactions (+29%) .
  • Management reaffirmed FY 2025 adjusted EPS growth of 12%–16% and expects continued margin expansion in H2; CFO flagged ~$0.05 EPS headwind from higher interest and ~$0.05 from higher taxes in Q2, with the tax rate likely up 1–2 pts for the year .
  • Strategic catalysts: definitive agreement to acquire CoreCard (all‑stock, ~$248M) and a REN deployment with a top‑3 U.S. bank; both advance Euronet’s shift to high‑margin digital processing and expand issuing capabilities .

What Went Well and What Went Wrong

What Went Well

  • Money Transfer outperformed: operating income +39% y/y, adjusted EBITDA +33% y/y, operating margin +296 bps; digital transactions +29% and network reach expanded to ~631K locations .
  • Margin and scale: consolidated operating margin expanded 112 bps y/y; CFO expects continued margin expansion in H2 2025 .
  • Strategic wins in digital: CoreCard acquisition to bolster issuing (high margin, ~50%), and signed a REN deal with a top‑3 U.S. bank; CEO: “a real testament to the value proposition of REN” .

What Went Wrong

  • Slight consensus misses: Q2 revenue ($1.074B) modestly below consensus and adjusted EPS ($2.56) slightly below consensus; EPS impacted by higher interest ($0.05/share) and taxes ($0.05/share) in Q2, with tax rate to tick up 1–2 pts in 2025 .
  • EFT growth decelerated vs an exceptionally strong Q2 2024 comp; management expects strength to restore in Q3 with elongated travel season smoothing peak months .
  • Intra‑U.S. money transfer remained a headwind, partially offset by cross‑border growth and FX‑related margin opportunities .

Financial Results

Consolidated Performance vs prior year and prior quarter

MetricQ2 2024Q1 2025Q2 2025
Revenues ($USD Millions)$986.2 $915.5 $1,074.3
Operating Income ($USD Millions)$134.3 $75.2 $158.6
Adjusted EBITDA ($USD Millions)$178.2 $118.7 $206.2
Diluted EPS (GAAP) ($USD)$1.73 $0.85 $2.27
Adjusted EPS ($USD)$2.25 $1.13 $2.56
Operating Margin Expansion (bps y/y)—+80 +112

Segment Breakdown (Q2 2025 vs Q2 2024)

SegmentQ2 2024 Revenue ($M)Q2 2025 Revenue ($M)y/y Revenue GrowthQ2 2024 Op Inc ($M)Q2 2025 Op Inc ($M)y/y Op Inc GrowthQ2 2024 Adj EBITDA ($M)Q2 2025 Adj EBITDA ($M)y/y Adj EBITDA Growth
EFT Processing$305.4 $338.5 +11% $79.9 $84.6 +6% $105.0 $110.6 +5%
epay$260.9 $280.1 +7% $26.2 $31.1 +19% $28.0 $32.8 +17%
Money Transfer$421.8 $457.9 +9% $47.3 $65.6 +39% $54.0 $71.6 +33%

KPIs

KPIQ2 2024Q2 2025
Installed ATMs54,736 57,326
Active ATMs54,005 56,760
epay Transactions (Millions)1,107 (flat) 1,107
epay POS Terminals~703,000 ~721,000
epay Retailer Locations~340,000 ~354,000
Money Transfer Total Transactions (Millions)44.3 46.1
Money Transfer Digital Transactions (Millions)4.5 5.8
Money Transfer Network Locations~586,000 ~631,000

Consensus vs Actual (Q2 2025)

MetricConsensusActual
Revenue ($USD Billions)$1.078*$1.074
Adjusted EBITDA ($USD Millions)$200.5*$206.2
Adjusted EPS ($USD)$2.66*$2.56

Values with an asterisk were retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPS Growth (y/y)FY 2025+12% to +16% (reaffirmed in Q1) +12% to +16% (reaffirmed) Maintained
Consolidated Operating MarginH2 2025Not specifiedExpect continued expansion in H2 Raised qualitative outlook
Effective Tax RateFY 2025Not specified“Tick up a percent or two” vs prior expectations Raised
Interest Expense ContextFY 2025Not specifiedConvertible financing optionality; higher Q2 interest (~$0.05 EPS) due to revolver rates New detail
Segment Strategic Outlook (Money Transfer)FY 2025Growth in digital and cross-border Continued strength; limited impact expected from new 1% remittance tax (affects ~12% of consolidated revenue) Maintained with risk quantified

Earnings Call Themes & Trends

TopicQ4 2024 (Previous Mentions)Q1 2025 (Previous Mentions)Q2 2025 (Current Period)Trend
Digital payments/REN and issuingEFT growth driven by travel, fees, new markets; merchant acquiring momentum EFT launched in Dominican Republic and Peru; strong payments/digital media growth CoreCard acquisition and top‑3 U.S. bank REN deal; issuing margin near 50% per CEO Accelerating digital/issuing focus
Money Transfer momentumDigital tx +33% in Q4; cross‑border strength Digital tx +31%; cross‑border up; intra‑U.S. down Digital tx +29%; operating margin +296 bps; cross‑border up; intra‑U.S. down Strengthening, margin leverage
Tariffs/macroNo direct tariff impact noted “Do not see direct impacts” from U.S. tariffs; EPS growth reaffirmed New 1% remittance tax impact quantified; limited overall exposure Managed macro headwinds
Travel seasonality (EFT)Travel aided EFT growth n/aElongated season; tough Q2 comp; expect restoration in Q3 Normalizing after tough comp
FX and margin dynamicsn/an/aFX volatility aided margins in Money Transfer; higher principal per transaction Opportunistic benefit
AI and stablecoinn/an/aAI as strategic enabler; REN architected for stablecoin use cases under exploration Early adoption narrative

Management Commentary

  • CEO on strategy and quarter: “Constant currency operating profit growth of 13% and margin expansion of 112 basis points… further our digital strategy through the acquisition of… CoreCard… and signing of a Ren agreement with one of the top three banks in the United States” .
  • CFO on margin trajectory: “Our consolidated operating margins expanded by more than 112 basis points… expect a continuation… through the second half” .
  • CEO on Money Transfer resilience: “Operating income grew 33% year over year… digital transactions grew 29%… margin expansion driven by FX opportunities, scale, and expense management” .
  • CEO on CoreCard risk management: Assumed Apple portfolio could transition; still expects accretive EPS in first full year post‑close and sees global cross‑sell opportunities .
  • CFO on capital/interest/taxes: ~$0.05 EPS headwind from higher interest on revolver and ~$0.05 from taxes; tax rate to tick up 1–2 pts for the year .

Q&A Highlights

  • CoreCard concentration risk: Management assumed Apple portfolio could transition; pipeline and global cross‑sell underpin accretion without dependency on Apple; potential to sell CoreCard into acquirer if portfolio moves .
  • EFT deceleration and margins: Tough Q2 prior‑year comp and elongated travel season; expect stronger Q3; new DAFT transactions to support margins .
  • REN deal economics: High‑margin software; revenue to ramp starting Q4; strategic significance as reference customer outweighs near‑term P&L impact .
  • Money Transfer intra‑quarter: July stronger than June; digital and retail both trending up; U.S. only ~33–40% of Ria, with strength globally .
  • FX and margins: FX volatility provided some margin tailwind; higher average principal per transaction observed .

Estimates Context

  • Q2 2025 actuals vs consensus: revenue $1.074B slightly below consensus ($1.078B*), adjusted EPS $2.56 slightly below ($2.66*), while adjusted EBITDA $206.2M exceeded ($200.5M*). Modest EPS miss driven by higher interest and taxes (~$0.10/share combined) .
  • Forward estimates: Company reaffirmed FY 2025 adjusted EPS growth (+12%–16%), implying limited need for estimate resets; modest upward tax rate assumptions and lower interest expense (if capital structure evolves) could fine‑tune EPS models .
    Values with an asterisk were retrieved from S&P Global.

Key Takeaways for Investors

  • Earnings quality improving: consolidated operating margin expanded 112 bps y/y, with H2 margin expansion expected—supports medium‑term EPS growth durability .
  • Money Transfer is the growth engine: digital adoption and cross‑border flows are driving outsized profit growth and margin leverage; FX volatility can be a modest positive .
  • Digital processing pivot is accelerating: CoreCard (issuing) + REN (switching/ATM) broaden high‑margin software revenues; top‑3 U.S. bank win is a strong reference for additional U.S. and global deals .
  • Near‑term EPS headwinds manageable: higher interest and tax (~$0.10/share in Q2) are transitory; management still reaffirmed +12%–16% FY EPS growth .
  • EFT to re‑accelerate into Q3: elongated travel season and fee initiatives/interchange increases should aid recovery from a tough comp .
  • Transaction tax risk contained: new 1% remittance tax affects ~12% of consolidated revenue; management expects limited impact at the consolidated level .
  • Trading implications: Near‑term sentiment should hinge on CoreCard/REN execution and H2 margin follow‑through; watch for investor day updates, tax rate trajectory, and incremental REN/issuing wins .