Core Viewpoint - American Century Investments Small Cap Value Fund reported a strong performance in the third quarter of 2025, with equities rising and the US Federal Reserve reducing interest rates for the first time this year [1] Group 1: Fund Performance - The investor class of the fund returned 4.69% in the third quarter, while the Russell 2000 Value Index returned 12.60% [1] - The fund focuses on investing in undervalued small-cap companies that do not accurately reflect their quality and potential earnings capability [1] Group 2: Euronet Worldwide, Inc. (NASDAQ:EEFT) - Euronet Worldwide, Inc. is highlighted as a stock in the fund's portfolio, with a one-month return of 0.99% and a 52-week loss of 26.23% [2] - As of January 2, 2026, Euronet's stock closed at $74.10 per share, with a market capitalization of $3.116 billion [2] - The fund noted that Euronet's strong financial characteristics were overshadowed by challenges such as immigration policies and the rise of stablecoins affecting its money transfer business [3] Group 3: Hedge Fund Interest - Euronet Worldwide, Inc. was held by 30 hedge fund portfolios at the end of the third quarter, a decrease from 32 in the previous quarter [4] - The fund believes that certain AI stocks present greater upside potential and less downside risk compared to Euronet [4]

Company Overview - CrediaBank, based in Greece, is selling its merchant acquiring business to Euronet Worldwide as part of a broader partnership, with the deal expected to close in Q3 2026 [1][7] - CrediaBank, formerly known as Attica Bank, is the fifth-largest bank in Greece, holding €6.7 billion in deposits and operating 24,000 point-of-sale terminals across 20,000 merchants [3] Deal Details - Under the agreement, Euronet Merchant Services Payment Institution will take over CrediaBank's merchant acquiring business and manage the bank's ATM network, providing customers with free access to Euronet's 2,500 ATMs in Greece [2] - Euronet will also offer card management and transaction processing services for debit, credit, and prepaid cards [2] Industry Context - Greek banks have been divesting their merchant acquiring businesses in recent years, with notable transactions including Euronet's acquisition of Piraeus Bank's merchant acquiring business for €300 million in 2022 and Worldline's acquisition of an 80% stake in Eurobank's for €256 million [4] - The trend of divestment in the merchant acquiring sector is evident, as banks seek to streamline operations and focus on core banking services [4][7]

Core Insights - Euronet has been awarded Mastercard's Excellence in Agility award for credit issuance, highlighting the impact of its acquisition of CoreCard which has enhanced its issuing capabilities and accelerated the deployment of Mastercard credit programs [1][2] Company Achievements - The Mastercard Engage Excellence Awards recognize organizations that demonstrate exceptional speed, creativity, and impact in the payments industry, underscoring Euronet's competitive edge [2] - Euronet's issuing platform allows financial institutions to modernize credit portfolios without lengthy transformation projects, supporting a variety of credit products on a single architecture [3][4] Operational Efficiency - The unified approach of Euronet's platform enables faster transition from project initiation to production while ensuring compliance and operational rigor expected by banks and FinTechs [4] - Euronet's agility extends beyond initial implementation, allowing for rapid integration of new features and adaptations to market needs post-launch [5][6] Product Launches - Euronet successfully brought a commercial credit program with specialized loyalty and rewards capabilities to market in approximately two months, a significantly shorter timeline compared to traditional environments [7] - Additional Mastercard-powered programs launched during the same period include secured revolving credit, BNPL-enabled credit, consumer and commercial credit, and advanced loyalty models such as crypto rewards [7] Global Presence - Euronet operates a vast global payments network with 57,534 ATMs, approximately 592,000 EFT point-of-sale terminals, and a money transfer network serving 199 countries and territories [8]

Core Thesis - Euronet Worldwide, Inc. (EEFT) is facing challenges but maintains a bullish outlook due to diversified remittance corridors, fintech transition, margin expansion, and compelling valuation despite recent market pressures [2][6][7] Financial Performance - As of November 28th, EEFT's share price was $74.09, with trailing and forward P/E ratios at 10.83 and 6.67 respectively [1] - The company experienced a revenue miss in Q3 2025, leading to a decline in share price into the $70s, attributed to short-seller pressure [2][3] - EPS guidance has been reaffirmed, indicating continued bottom-line strength despite slower top-line growth [2] Challenges - Q3 2025 revealed significant headwinds, particularly in Money Transfer due to stricter U.S. immigration enforcement and reduced low-income consumer activity [3] - ePay faced a decline after exiting a low-value top-up product, and overall margins softened due to inflation impacting travel budgets [3] Positive Developments - October Money Transfer trends showed improvement, suggesting that headwinds may be transitory [4] - New partnerships, including Heritage Grocers and a major Dandelion–Citibank integration, indicate strengthening competitive positioning [4] - Digital remittances grew by 32% year-over-year, with REN posting approximately 40% growth and software-like margins [4] Future Outlook - The updated model predicts moderated FY25 revenue but accelerating growth into FY26–FY27, supported by REN, CCRD, digital mix gains, and ongoing ATM outsourcing [5] - EPS growth is expected to remain strong due to margin expansion and buybacks, with EEFT appearing undervalued at 10.6x GAAP EPS relative to its durable earnings power [5]

Group 1 - Voss Capital's funds returned +5.0% and +4.9% in Q3 2025, underperforming against the Russell 2000 Index (+12.4%), Russell 2000 Value Index (+12.6%), and S&P 500 Index (+8.3%) [1] - The Voss Value Master Fund had a total gross exposure of 205.4% and a net long exposure of 95.8% as of September 30, 2025 [1] - The top 10 long positions accounted for 77.8% of the fund, while the top 10 short positions represented -43.5% [1] Group 2 - Euronet Worldwide, Inc. (NASDAQ:EEFT) had a one-month return of 1.68% but lost 29.34% of its value over the last 52 weeks, closing at $74.52 per share with a market capitalization of $3.133 billion on December 01, 2025 [2] - Euronet Worldwide, Inc. has been a significant performance detractor for Voss Capital YTD, leading to a reduction in position to realize tax losses [3] - Recent results from Euronet Worldwide, Inc. showed weakness across all segments, with a lack of visibility into near-term growth drivers, necessitating catalysts such as a resumption of buybacks and an analyst day in early 2026 [3]

Core Insights - A multi-year partnership has been established between Ria Money Transfer and the Federación Mexicana de Fútbol (FMF), making Ria the official remittance services partner for both the Mexican Men's and Women's National Teams [1][3]. Company Overview - Ria Money Transfer is a global leader in the cross-border money transfer industry and a business segment of Euronet Worldwide [1][10]. - The company offers innovative financial services, including fast, secure, and affordable global money transfers, and has the world's largest cross-border real-time money movement network [10][11]. Partnership Details - Ria will launch its partnership with a prominent presence at the Mexican Men's National Team's match against Paraguay in San Antonio, showcasing its commitment to connecting with the Mexican soccer culture [2][3]. - The partnership will include Ria being the first official send-off partner for the Mexican men's national team as they prepare for the 2026 FIFA World Cup [3][5]. - Ria aims to create meaningful connections with fans during the MexTour and MexTour W tournaments, which feature the Mexican national teams competing across the U.S. [3][4]. Market Context - MexTour is recognized as one of the most successful sports properties in North America, boasting an estimated fan base of 65 million people [4]. - The average attendance for MexTour matches has been nearly 50,000 per match over the last decade, indicating strong fan engagement [6]. - The partnership comes at a time of significant opportunity for soccer in North America, following the Mexican Men's National Team's victory in the 2025 Gold Cup and the upcoming FIFA World Cup hosted by the U.S., Canada, and Mexico in 2026 [5].

Core Viewpoint - Investors in Euronet Worldwide, Inc. (EEFT) should closely monitor the stock due to significant implied volatility in the options market, particularly for the Jan 16, 2025 $2.50 Call option [1] Company Analysis - Euronet Worldwide currently holds a Zacks Rank of 4 (Sell) within the Financial - Miscellaneous Services Industry, which is positioned in the top 30% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised the earnings estimate for the current quarter, while two analysts have lowered their estimates, resulting in a consensus estimate decrease from $2.53 to $2.51 per share [3] Options Market Insights - The high implied volatility suggests that options traders anticipate a significant price movement for Euronet Worldwide shares, potentially indicating an upcoming event that could lead to a major rally or sell-off [2][4] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Core Viewpoint - Investors should closely monitor Euronet Worldwide, Inc. (EEFT) stock due to significant movements in the options market, particularly the high implied volatility of the Nov 21, 2025 $150.00 Call option [1] Company Analysis - Euronet is currently rated as a Zacks Rank 4 (Sell) within the Financial - Miscellaneous Services industry, which ranks in the top 30% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised earnings estimates for the current quarter, while two have lowered theirs, resulting in a decrease in the Zacks Consensus Estimate from $2.53 to $2.51 per share [3] Options Market Insights - The high implied volatility suggests that options traders are anticipating a significant price movement for Euronet shares, potentially indicating an upcoming event that could lead to a major rally or sell-off [2][4] - Options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Revenue Segments - Euronet's EFT Processing Segment generated approximately 36% and 31% of total consolidated revenues for the three and nine months ended September 30, 2025[131]. - The epay Segment accounted for about 25% and 27% of total consolidated revenues for the three and nine months ended September 30, 2025, with digital media content now producing approximately 29.1% of its revenues[132][133]. - The Money Transfer Segment represented approximately 39% and 42% of total consolidated revenues for the three and nine months ended September 30, 2025, primarily from transaction fees and foreign currency exchange margins[134]. Operational Metrics - Euronet operates a network of 56,431 ATMs and approximately 592,000 POS terminals across 64 countries[126][128]. - The number of transactions processed increased by 1,059 million or 36% to 4,041 million for the three months ended September 30, 2025, compared to the same period in 2024[145]. - Active ATMs as of September 30, 2025, totaled 56,431, representing a 4% increase from 54,020 in the same period of 2024[145]. Financial Performance - Total revenues for the EFT Processing Segment were $409.4 million for the three months ended September 30, 2025, an increase of $36.4 million or 10% compared to the same period in 2024[146]. - Total revenues for the nine months ended September 30, 2025, were $980.4 million, reflecting an increase of $84.8 million or 9% year-over-year[146]. - Gross profit for the three months ended September 30, 2025, was $215.0 million, an increase of $16.3 million or 8% compared to $198.7 million for the same period in 2024[148]. - Gross profit for the nine months ended September 30, 2025, was $475.6 million, an increase of $37.9 million or 9% compared to $437.7 million for the same period in 2024[148]. Cost and Expenses - Direct operating costs for the EFT Processing Segment were $194.4 million for the three months ended September 30, 2025, an increase of $20.1 million or 12% compared to the same period in 2024[147]. - Direct operating costs for the nine months ended September 30, 2025, were $504.8 million, an increase of $46.9 million or 10% year-over-year[147]. - Salaries and benefits expenses for the three months ended September 30, 2025, were $46.6 million, an increase of $5.3 million or 13% compared to the same period in 2024[149]. - Salaries and benefits expenses for the nine months ended September 30, 2025, were $121.8 million, an increase of $14.3 million or 13% compared to the same period in 2024[149]. - Selling, general and administrative expenses for the three months ended September 30, 2025, were $13.7 million, a decrease of $1.6 million or 10% compared to the same period in 2024[150]. Currency and Foreign Exchange - Approximately 76.7% of Euronet's revenues are denominated in currencies other than the U.S. dollar, making it sensitive to foreign currency exchange rate fluctuations[129]. - Fluctuations in foreign currency exchange rates positively impacted revenues by approximately $18.7 million for the three months ended September 30, 2025[146]. - Net foreign currency exchange loss for the three months ended September 30, 2025, was $23.7 million, compared to a gain of $27.4 million in the same period of 2024, reflecting a year-over-year change of $51.1 million[181]. - A 10% fluctuation in foreign currency exchange rates is estimated to have an annualized effect on reported net income and working capital of approximately $30 million to $40 million[210]. Cash Flow and Capital Expenditures - Cash flows provided by operating activities for the nine months ended September 30, 2025, were $381.9 million, a decrease of $270.6 million compared to $652.5 million in the same period of 2024[192]. - Cash flows used in investing activities for the nine months ended September 30, 2025, were $137.0 million, a decrease from $185.2 million in the same period of 2024, primarily due to the absence of the Infinitum acquisition[193]. - Total capital expenditures for the nine months ended September 30, 2025, were $93.9 million, primarily for ATMs and POS terminals[203]. - The company anticipates total capital expenditures for 2025 to range from approximately $120 million to $130 million[203]. Debt and Financing - As of September 30, 2025, the total outstanding debt was $2,331.5 million, with $1 billion (43%) related to the 2030 Convertible Notes and $704 million (30%) related to Senior Notes[208]. - The company amended its revolving credit agreement to increase the facility from $1.25 billion to $1.9 billion, with an expiration extended to December 17, 2029[196]. - The company completed the sale of $1,000 million in Convertible Senior Notes maturing in October 2030, with a fixed interest rate of 0.625% per annum[199]. Strategic Focus - The company is focused on expanding its market presence through both physical and digital assets, which may drive an increase in transaction volumes[136]. - Euronet's growth strategy may involve additional acquisitions, which could require integration of new assets and management resources[141]. - The profitability of the epay Segment is dependent on adapting to new technologies and leveraging cross-selling opportunities with other segments[138]. - Inflationary pressures may impact Euronet's business as consumer spending patterns change[137]. - The company expects increasing expenses due to inflation impacting discretionary spending in various segments[205].

Core Insights - Euronet Worldwide, Inc. (EEFT) reported adjusted earnings per share of $3.62 for Q3 2025, exceeding the Zacks Consensus Estimate by 1.4% and reflecting a 19% year-over-year increase [1][8] - Total revenues reached $1.1 billion, marking a 4.2% year-over-year improvement, although it fell short of consensus expectations by 4.2% [1][8] Financial Performance - Net income for Q3 was $122 million, down 19.5% year over year, while operating income increased by 7% to $195 million [3] - Total operating expenses rose 3.7% year over year to $950.7 million, driven by higher direct operating costs, salaries, and administrative expenses [3] - Adjusted EBITDA improved by 8% year over year to $244.6 million [3] Segment Performance - The EFT Processing segment generated revenues of $409.4 million, a 10% increase year over year, but missed the consensus estimate [4] - The epay segment's revenues declined by 1% year over year to $286.5 million, also missing consensus expectations [5] - The Money Transfer segment reported revenues of $452.4 million, a 3% year-over-year increase, but fell short of the consensus estimate [7] Strategic Developments - Quarterly earnings were bolstered by strategic buyouts, investments in digital products, and global expansions, although increased expenses partially offset these gains [2] - Management reaffirmed guidance for 2025 adjusted EPS growth in the range of 12-16% amid ongoing digital initiatives [12] Financial Position - As of September 30, 2025, Euronet had cash and cash equivalents of $1.2 billion, a decrease of 8.3% from the end of 2024 [10] - Total assets increased to $6.3 billion from $5.8 billion at the end of 2024, while net debt obligations decreased by 5.6% to $1.1 billion [10]