While I've recently written in some detail about Western Union ( WU ) and Euronet ( EEFT ), some of the more mature players in the remittance industry, I have not yet had theI am an international analyst with a Buffett and Munger inspired approach to investing. My emphasis is on identifying high quality, shareholder-oriented companies which have been unfairly discounted by the market due to short term factors or irrational investor psychology. At the moment, I am particularly interested in legacy businesses ...

Key Takeaways Euronet's Q4 EPS missed estimates as expenses rose despite 6% revenue growth.EEFT saw Money Transfer income drop due to U.S. reforms and weaker U.S.-originated transfers.Euronet expects 10-15% adjusted EPS growth in 2026 after a 12% rise in 2025.Euronet Worldwide, Inc. (EEFT) reported fourth-quarter 2025 adjusted earnings per share of $2.39, which missed the Zacks Consensus Estimate by 3.6%. However, the bottom line rose 15% year over year.Total revenues improved 6% year over year and 1% on a ...

Group 1 - Northland lowered the price target on Euronet (EEFT) to $90 from $100 [1] - The firm maintains an Outperform rating on Euronet shares [1] - Adjustments to estimates were made following a "softer" Q4 report [1]

CFO Rick Weller said that on a constant-currency basis, fourth-quarter consolidated revenue increased 1% year over year, while adjusted operating income declined 6% and adjusted EBITDA was consistent with the prior year. He attributed the mixed performance to macroeconomic and immigration-related pressures in Money Transfer and epay, partially offset by “strong performance in EFT,” which delivered double-digit growth in adjusted operating income and EBITDA.Despite the headwinds, CEO Mike Brown said Euronet ...

Core Insights - Euronet Worldwide reported revenue of $1.11 billion for the quarter ended December 2025, reflecting a year-over-year increase of 5.9% and a slight revenue surprise of +0.21% over the Zacks Consensus Estimate [1] - The company's EPS for the quarter was $2.39, an increase from $2.08 in the same quarter last year, although it fell short of the consensus estimate of $2.48 by -3.63% [1] Revenue Breakdown - EFT Processing Segment generated revenue of $303.3 million, exceeding the average analyst estimate of $298.43 million, marking a year-over-year increase of +14.2% [4] - The epay Segment reported revenue of $353.6 million, slightly above the average estimate of $350.67 million, with a year-over-year change of +3.3% [4] - Money Transfer Segment revenue was $454.4 million, which was below the estimated $459.17 million, but still represented a +2.8% increase compared to the previous year [4] Stock Performance - Euronet Worldwide's shares have declined by -6.1% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Euronet Worldwide reported quarterly earnings of $2.39 per share, missing the Zacks Consensus Estimate of $2.48 per share, but showing an increase from $2.08 per share a year ago, resulting in an earnings surprise of -3.63% [1] - The company posted revenues of $1.11 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.21%, compared to year-ago revenues of $1.05 billion [2] - Euronet Worldwide shares have declined approximately 7.8% since the beginning of the year, while the S&P 500 has gained 1.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.42 on revenues of $985.03 million, and for the current fiscal year, it is $10.89 on revenues of $4.54 billion [7] - The Zacks Industry Rank for Financial Transaction Services is in the bottom 42% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Financial Data and Key Metrics Changes - In Q4 2025, adjusted EPS was $2.39, reflecting double-digit year-over-year earnings growth despite external pressures [23][24] - For the full year, revenue was $4.2 billion, adjusted operating income was $550 million, and adjusted EBITDA was $743 million, with adjusted EPS at $9.61, indicating another year of double-digit growth [31][32] Business Line Data and Key Metrics Changes - The EFT segment showed strong performance with revenue growing 8%, adjusted operating income increasing 12%, and adjusted EBITDA growing 13% [24] - The epay segment experienced a revenue decline of approximately 2%, with adjusted operating income down 7% and adjusted EBITDA down 8% due to macroeconomic pressures [25] - Money transfer revenue declined 1% year-over-year, with adjusted operating income down 6% and adjusted EBITDA down 5%, primarily due to macroeconomic conditions and immigration-related dynamics [26][27] Market Data and Key Metrics Changes - The global digital channel for money transfer saw 31% transaction growth and 33% revenue growth in Q4, with a significant increase in new customer acquisitions [20] - The gaming-related branded payments business within epay accounted for 37% of total branded payments margin, benefiting from the growing global video game market, projected to grow at a 13% CAGR through 2031 [15] Company Strategy and Development Direction - The company remains focused on digital growth across all segments, with significant investments in digital strategies and acquisitions to drive future growth [8][19] - The acquisition of CoreCard is expected to enhance the company's capabilities in credit card issuance and processing, aligning with its strategy to expand into high-growth fintech areas [12][13] - The company aims to maintain a disciplined approach to capital allocation, balancing growth investments with shareholder returns through share repurchases [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about potential improvements in the operating environment, particularly regarding immigration policies and macroeconomic conditions [39][40] - The company anticipates adjusted EPS growth of 10%-15% in 2026, supported by ongoing growth initiatives and an optimized operating model [30][31] Other Important Information - The company returned approximately $388 million in capital to shareholders through share repurchases in 2025, reflecting a commitment to shareholder value [7][33] - The EFT segment's growth is attributed to its diverse product offerings and expansion into new markets, including Morocco, Egypt, and the Philippines [24][25] Q&A Session Summary Question: Are there signs of improvement in macro issues affecting the business? - Management noted some positive trends in January but cautioned against drawing conclusions too early, emphasizing the ongoing challenges posed by immigration policies [39][40] Question: What triggered the review of the money transfer business? - The review was initiated to ensure the organization aligns with the growth of the money transfer segment, which has seen significant success since the acquisition of Ria [44][46] Question: What is the expected contribution of CoreCard in 2026? - While specific numbers were not provided, management indicated that they expect CoreCard to perform well, leveraging its strong platform and customer base [72][75] Question: How does the company view the impact of competitors' partnerships? - Management stated that the impact from competitors, such as Kroger's exclusive relationship, would be marginal, and they remain focused on their diversified business model [81][82]

Financial Data and Key Metrics Changes - In Q4 2025, adjusted EPS was $2.39, reflecting double-digit year-over-year earnings growth despite external pressures [22][23] - Full-year revenue reached $4.2 billion, with adjusted operating income of $550 million and adjusted EBITDA of $743 million, indicating continued double-digit earnings growth [31][32] - Consolidated operating margins expanded by approximately 30 basis points compared to the previous year, with expectations for continued margin improvement into 2026 [31][32] Business Line Data and Key Metrics Changes - The EFT segment showed strong performance with revenue growing 8%, adjusted operating income increasing 12%, and adjusted EBITDA growing 13% in Q4 [23][24] - The Money Transfer segment experienced a 1% decline in revenue year-over-year, with adjusted operating income down 6% and adjusted EBITDA down 5%, primarily due to macroeconomic and immigration-related pressures [24][27] - Epay revenue declined approximately 2%, with adjusted operating income decreasing 7% and adjusted EBITDA declining 8%, reflecting product mix shifts and macroeconomic challenges [24] Market Data and Key Metrics Changes - The global digital channel for Money Transfer saw 31% transaction growth and 33% revenue growth in Q4, with a significant increase in new customer acquisitions [19] - The gaming-related branded payments business within Epay accounted for 37% of total branded payments margin, benefiting from the growing global video game market, projected to grow at a 13% CAGR through 2031 [14][15] - Remittances into Mexico declined approximately 2% in Q4 2025, reflecting broader industry trends influenced by macroeconomic conditions [27] Company Strategy and Development Direction - The company remains focused on executing growth initiatives across all segments, particularly in digital strategies and expanding its global network [4][8] - Recent acquisitions, including Kyodai and CrediaBank's merchant acquiring business, are expected to drive multiyear growth and enhance the company's competitive position [7][11] - The company aims to optimize its operations and enhance digital customer engagement, particularly in the Money Transfer segment, to support future growth [17][29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the operating environment, acknowledging ongoing macroeconomic challenges but highlighting positive trends in January [38][39] - The company anticipates adjusted EPS growth of 10%-15% in 2026, supported by a strong pipeline of growth initiatives and an optimized operating model [30][36] - Management emphasized the importance of maintaining a diversified business model to mitigate risks associated with specific markets, such as Mexico [82] Other Important Information - The company returned approximately $388 million in capital to shareholders through share repurchases in 2025, reflecting a disciplined capital allocation strategy [31][33] - The EFT business is evolving from a model centered on ATM ownership to one focused on payments infrastructure, enhancing its capabilities in digital transactions [13] Q&A Session Summary Question: Are there signs of improvement in macro issues affecting the business? - Management noted some positive trends in January but cautioned against over-optimism due to ongoing challenges in the operating environment [38][39] Question: What triggered the review of the Money Transfer business? - The review was initiated to ensure the organization aligns with the growth opportunities and customer base, not out of desperation but to optimize operations [42][44] Question: What is the expected contribution of CoreCard in 2026? - Management indicated that CoreCard is expected to perform well, leveraging its strong platform and customer relationships, but specific numbers were not disclosed [71][74] Question: How is the merchant processing business performing? - The merchant acquiring business is experiencing significant growth, with combined EBITDA from both epay and EFT segments reaching approximately $90 million [51] Question: What are the expectations for free cash flow in 2026? - Free cash flow is expected to improve in line with earnings growth, with a strong focus on supporting digital initiatives across all segments [55][56]

Financial Data and Key Metrics Changes - In Q4 2025, adjusted EPS was $2.39, reflecting double-digit year-over-year earnings growth despite external pressures [24][25] - For the full year, revenue was $4.2 billion, adjusted operating income was $550 million, and adjusted EBITDA was $743 million, with adjusted EPS of $9.61, indicating another year of double-digit growth [33][34] - Consolidated operating margins expanded by approximately 30 basis points compared to the previous year, with expectations for continued margin improvement into 2026 [33] Business Line Data and Key Metrics Changes - The EFT segment showed strong performance with revenue growing 8%, adjusted operating income increasing 12%, and adjusted EBITDA growing 13% [25] - The epay segment experienced a revenue decline of approximately 2%, with adjusted operating income down 7% and adjusted EBITDA down 8%, attributed to macroeconomic pressures [26] - The money transfer segment saw a revenue decline of 1% year-over-year, with adjusted operating income down 6% and adjusted EBITDA down 5%, primarily due to macroeconomic conditions and immigration-related dynamics [27][28] Market Data and Key Metrics Changes - The global digital channel for money transfer delivered 31% transaction growth and 33% revenue growth in Q4, with a significant increase in new customer acquisitions [21] - The gaming-related branded payments business within epay accounted for 37% of total branded payments margin, benefiting from the growth in the global video game market, which was approximately $290 billion in 2025 [17] - Remittances into Mexico declined approximately 2% in Q4 2025, reflecting broader market trends, but the company managed to achieve a modest increase in remittance volumes for the year [28] Company Strategy and Development Direction - The company remains focused on executing growth initiatives across all segments, particularly in digital strategies and expanding its global network [5][10] - Recent acquisitions, including Kyodi and Credia Bank's merchant acquiring business, are expected to drive multiyear growth [9][12] - The company emphasizes a shift from traditional ATM ownership to a focus on payments infrastructure and merchant acquiring, enhancing its capabilities in modern payment processing [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment due to immigration policy uncertainty and economic stress among lower-income consumers, but expressed confidence in the company's competitive position and growth initiatives [5][6] - The company anticipates adjusted EPS growth of 10%-15% in 2026, supported by a strong pipeline of growth initiatives and an optimized operating model [32] - Management highlighted the importance of maintaining a diversified business model to withstand macroeconomic pressures, ensuring resilience and continued growth [7][36] Other Important Information - The company returned approximately $388 million in capital to shareholders through share repurchases in 2025, reflecting a disciplined capital allocation strategy [8][34] - The company is actively pursuing digital growth opportunities across all segments, with a focus on enhancing customer experience and operational efficiency [31] Q&A Session Summary Question: Are there signs of improvement in macro issues affecting the business? - Management noted some positive trends in January but cautioned against over-optimism due to ongoing challenges in the operating environment [40][41] Question: What triggered the review of the money transfer business? - The review was initiated to ensure organizational alignment with the growth of the money transfer segment, which has seen significant success since the acquisition of Ria [45][47] Question: Can you provide details on the growth of the merchant processing business? - The merchant acquiring business has shown strong growth, with epay growing over 20% and EFT's merchant acquiring business growing over 30% [54] Question: What are the expectations for CoreCard in 2026? - Management expressed optimism about CoreCard's contribution, indicating that it is expected to perform well and potentially exceed previous revenue figures [75][78] Question: How does the company view the impact of competitors' partnerships? - Management indicated that the impact from competitors, such as Kroger's exclusive relationship, would be marginal and not significantly affect their business [82]

Fourth Quarter and Full Year 2025 Financial Results Michael J. Brown | Chairman, CEO and President Rick Weller | EVP & CFO Adam Godderz | General Counsel Euronet | www.euronet.com 1 020626-1 Forward Looking Statements Statements contained in this news release that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking statements as a resul ...