Financial Data and Key Metrics Changes - The company reported a record second quarter with revenue of $1.1 billion, operating income of $159 million, adjusted EBITDA of $206 million, and adjusted EPS of $2.56, reflecting a 14% year-over-year growth in adjusted EPS [10][11] - Constant currency operating income growth year-over-year was 13%, indicating strong business performance despite macro uncertainties [9][11] - Consolidated operating margins expanded by more than 112 basis points compared to the prior year, with expectations for continued margin expansion in the second half of the year [11][12] Business Line Data and Key Metrics Changes - The Money Transfer segment led with constant currency operating income growth of 33%, driven by increased transaction volumes and higher principal amounts per transaction [10][15] - The EFT segment saw revenue growth of 6%, with operating income and adjusted EBITDA remaining in line with prior year results, attributed to tough comparisons from the previous year's strong performance [14] - Epay revenue grew by 5%, with operating income increasing by 17% and EBITDA by 15%, primarily due to growth in digital channel sales [14] Market Data and Key Metrics Changes - The company noted that the major currencies strengthened against the dollar, impacting reported results, but adjustments were made to normalize the impact of currency fluctuations [13] - Digital transactions in the Money Transfer segment grew by 29%, reflecting ongoing consumer demand for digital products [15][25] Company Strategy and Development Direction - The acquisition of CoreCard is a strategic move to expand into the digital payments processing space, targeting a total addressable market exceeding $10 billion with attractive operating margins [4][29] - The company aims to leverage its REN platform and the CoreCard acquisition to enhance its digital offerings and expand its addressable market [29][32] - The strategic focus includes targeting large addressable markets in global payments and foreign exchange, with a shift from legacy cash-based business lines to digital offerings [33][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a growth trajectory, reaffirming an earnings growth expectation of 12% to 16% for 2025 [16][54] - The company is optimistic about the impact of recent acquisitions and partnerships, which are expected to contribute to growth in future quarters [8][29] - Management acknowledged potential challenges from macroeconomic factors but emphasized the resilience and adaptability of the business model [11][25] Other Important Information - The company repurchased $247 million of its shares during the quarter, which had a marginal benefit on adjusted EPS due to the timing of the repurchases [11][12] - The Money Transfer segment's revenue is subject to a new 1% remittance tax, affecting only 27% of its revenue, which is expected to have a limited overall impact [24] Q&A Session Summary Question: Insights on CoreCard acquisition and potential revenue concentration risks - Management acknowledged the risk associated with the Apple partnership but expressed confidence in the ability to cross-sell CoreCard's platform to other banks and fintechs globally [56][57] Question: Growth deceleration in EFT segment - Management clarified that the deceleration was due to tough comparisons from the previous year's strong performance and expressed optimism for recovery in Q3 [60][62] Question: Revenue expectations from the new U.S. bank partnership - Management indicated that revenue from the partnership is already being realized and is expected to accelerate, with significant potential for cross-selling [67][68] Question: Unit economics and margins related to the U.S. deal - Management characterized the deal as high margin due to its software nature, emphasizing its importance as a reference customer for future sales [79][80] Question: Performance in Money Transfer segment for July - Management reported a significant uptick in transaction volumes in July compared to June, indicating strong growth across digital and retail channels [81][82] Question: Impact of FX fluctuations on Money Transfer margins - Management confirmed that FX fluctuations contributed positively to margins, supporting the 33% year-over-year growth in operating income [89][90]

Financial Data and Key Metrics Changes - Euronet reported a record second quarter with revenue of $1.1 billion, operating income of $159 million, adjusted EBITDA of $206 million, and adjusted EPS of $2.56, reflecting a 14% year-over-year growth in adjusted EPS [10][11] - The company achieved constant currency operating income growth of 13% year-over-year, with consolidated operating margins expanding by more than 112 basis points compared to the prior year [8][11] - The company repurchased $247 million of its shares during the quarter, which had a marginal benefit to the second quarter adjusted EPS [11][12] Business Line Data and Key Metrics Changes - The Money Transfer segment led with constant currency operating income growth of 33%, driven by increased transaction volumes and higher principal amounts per transaction [10][25] - The EFT segment saw revenue growth of 6%, with operating income and adjusted EBITDA remaining in line with prior year results, facing tough comparisons due to exceptionally strong performance in the previous year [14] - Epay revenue grew by 5%, with operating income increasing by 17% and EBITDA by 15%, primarily driven by growth in digital channel sales [14] Market Data and Key Metrics Changes - Direct-to-consumer digital transactions in the Money Transfer segment grew by 29%, indicating strong consumer demand for digital products [15] - The company noted that the new 1% remittance tax would only affect 27% of the Money Transfer segment's revenue, limiting overall exposure [25] - The Asia Pacific region saw significant expansion through the acquisition of Kyodai Remittance, enhancing the company's capabilities in the Japanese remittance market [28] Company Strategy and Development Direction - The acquisition of CoreCard is a strategic milestone, extending Euronet's reach into the digital payments processing space and targeting a $10 billion revenue market with attractive operating margins [4][32] - Euronet aims to shift from legacy cash-based business lines towards digital offerings, with a target of reducing revenue from owned ATMs from 19% in 2024 to 7% by 2034 [36] - The company plans to leverage its existing relationships and expand CoreCard's reach into emerging markets, capitalizing on rising GDP and consumption expenditures [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a growth trajectory, reaffirming an earnings growth expectation of 12% to 16% for 2025 [56] - The company acknowledged macro uncertainties but highlighted strong operational performance and growth opportunities in digital payments [11][25] - Management emphasized the importance of AI and stablecoin as strategic enablers for future growth, with ongoing discussions regarding stablecoin facilitation [53][54] Other Important Information - The company signed significant REN deals with major banks, enhancing its technology's reputation and potential for cross-selling [7][70] - Euronet's digital transformation is supported by its REN technology and Dandelion network, positioning it as a leader in the global payments market [55][56] Q&A Session Summary Question: Insights on CoreCard acquisition and potential revenue concentration risks - Management acknowledged the risk of revenue concentration with the Apple partnership but expressed confidence in cross-selling opportunities and the strength of CoreCard's platform [59][60] Question: Growth deceleration in EFT segment - Management clarified that the deceleration was due to tough comparisons from the previous year and anticipated stronger performance in Q3 [63][64] Question: Revenue expectations from the new U.S. bank deal - Management indicated that revenue from the new deal is already being realized and expected to accelerate, with significant potential for cross-selling [70][72] Question: CoreCard's sustainable growth potential - Management expressed optimism about CoreCard's growth potential, particularly with Euronet's global distribution capabilities [100][102] Question: Travel trends and interchange impacts on EFT business - Management reported strong travel trends and positive impacts from interchange increases, with expectations for continued growth [112][114]

Financial Performance - Euronet reported revenue of $1,074.3 million, a 9% increase compared to $986.2 million in Q2 2024[17] - Operating income increased by 18% to $158.6 million, up from $134.3 million in Q2 2024[17] - Adjusted EBITDA grew by 16% to $206.2 million, compared to $178.2 million in Q2 2024[17] - Adjusted EPS increased by 14% to $2.56, up from $2.25 in Q2 2024[17] - On a constant currency basis, revenue increased by 6%, operating income by 13%, and adjusted EBITDA by 11%[17] Strategic Initiatives - Euronet signed a merger agreement to acquire CoreCard (NYSE: CCRD)[13] - The company signed an agreement with a top three bank in the United States for its Ren technology[13] - Euronet acquired a majority stake in Kyodai Remittance, a leading Japanese firm[71] Business Segment Highlights - Money Transfer digital transactions grew by 29%, with 55% of payouts going through digital channels[44] - epay now has 70% of its transactions fully digital[39] - EFT Processing revenue increased 11% to $338.5 million[20]

Financial Performance - Revenues for Q2 2025 were $1,074.3 million, a 9% increase from $986.2 million, with a 6% increase on a constant currency basis[7] - Operating income grew to $158.6 million, an 18% increase from $134.3 million, reflecting a 13% increase on a constant currency basis[7] - Adjusted EBITDA reached $206.2 million, a 16% increase from $178.2 million, with an 11% increase on a constant currency basis[7] - Net income attributable to Euronet was $97.6 million, or $2.27 diluted earnings per share, compared to $83.1 million, or $1.73 diluted earnings per share[7] - Euronet's total revenues for Q2 2025 reached $1,074.3 million, a 8.9% increase from $986.2 million in Q2 2024[36] - Operating income for Q2 2025 was $158.6 million, compared to $134.3 million in Q2 2024, reflecting a growth of 18.0%[36] - Net income attributable to Euronet Worldwide, Inc. for Q2 2025 was $97.6 million, up from $83.1 million in Q2 2024, representing a 17.1% increase[37] - The company reported an Adjusted EBITDA of $206.2 million for Q2 2025, compared to $178.2 million in Q2 2024, reflecting a growth of 15.7%[39] - Euronet's diluted earnings per share for Q2 2025 was $2.27, up from $1.73 in Q2 2024, representing a 31.2% increase[37] - Adjusted earnings for Q2 2025 were $110.7 million, compared to $104.5 million in Q2 2024, reflecting a growth of about 5.9%[41] - Adjusted earnings per share (EPS) diluted for Q2 2025 was $2.56, an increase from $2.25 in Q2 2024, marking a rise of approximately 13.8%[41] Assets and Liabilities - The total assets of Euronet as of June 30, 2025, were $6,554.9 million, an increase from $5,834.5 million as of December 31, 2024[34] - Total current liabilities increased to $3,935.2 million as of June 30, 2025, compared to $3,226.0 million at the end of 2024, marking a 21.9% rise[34] - Euronet's cash and cash equivalents rose to $1,329.3 million as of June 30, 2025, from $1,278.8 million at the end of 2024, indicating a 3.9% increase[34] - Euronet's total equity increased to $1,363.4 million as of June 30, 2025, compared to $1,229.2 million at the end of 2024, showing an increase of 10.9%[34] Operational Developments - The company signed an agreement with a top three bank in the U.S. for the deployment of its Ren ATM operating and switching product[5] - Euronet acquired CoreCard, a leading credit card issuing platform, targeting the $10 billion issuing market with strong growth rates outside the U.S.[4] - The Money Transfer segment saw a 29% growth in direct-to-consumer digital transactions, driven by increased consumer demand for digital products[11] - Total installed ATMs increased by 5% to 57,326 as of June 30, 2025, with 56,760 active ATMs[8] Shareholder Information - The company anticipates adjusted EPS growth of 12% to 16% year-over-year for 2025, consistent with its long-term growth rates[15] - Share-based compensation increased to $13.8 million in Q2 2025 from $10.2 million in Q2 2024, which is a rise of about 35.3%[42] - The diluted weighted average shares outstanding decreased from 48,700,270 in Q2 2024 to 42,954,631 in Q2 2025, indicating a reduction of approximately 11.8%[41] Other Financial Metrics - Intangible asset amortization was $4.7 million in Q2 2025, down from $6.5 million in Q2 2024, a decrease of about 27.7%[41] - The foreign currency exchange loss for Q2 2025 was $5.7 million, compared to a gain of $1.5 million in Q2 2024, indicating a negative swing of $7.2 million[41] - The effect of adjusted EPS dilution from convertible notes was $(176,123) in Q2 2025, compared to $(2,781,818) in Q2 2024, showing a significant reduction in dilution impact[41] - Non-cash investment gain was $0.4 million in Q2 2025, included in other income, with no equivalent reported in Q2 2024[43] - Adjusted earnings and adjusted earnings per share are non-GAAP measures that should be considered in addition to net income and earnings per share computed in accordance with U.S. GAAP[44]

Core Insights - Euronet reported a strong financial performance for Q2 2025, with revenues of $1,074.3 million, an increase of 9% from $986.2 million in Q2 2024 [7] - The company achieved an operating income of $158.6 million, reflecting an 18% increase from $134.3 million in the same period last year [7] - Euronet's adjusted earnings per share rose to $2.56, a 14% increase from $2.25 in Q2 2024 [7] Financial Performance - Revenues increased by 9% year-over-year, with a constant currency growth of 6% [7] - Operating income grew by 18%, with a constant currency increase of 13% [7] - Adjusted EBITDA reached $206.2 million, a 16% increase from $178.2 million, with an 11% increase on a constant currency basis [7] Segment Performance - The EFT Processing Segment reported revenues of $338.5 million, an 11% increase from $305.4 million [8] - The Money Transfer Segment saw a significant growth in direct-to-consumer digital transactions, which increased by 29% [11] - The epay Segment experienced constant currency revenue growth driven by payments and digital media [10] Strategic Initiatives - Euronet announced the acquisition of CoreCard, a leading credit card issuing platform, which aligns with its digital strategy [4] - The company signed a Ren agreement with a top-tier U.S. bank, marking a significant milestone in its U.S. operations [5] - Euronet's digital growth strategy is further supported by a partnership with Google for digital remittance services [6] Market Position - Euronet operates a global network with 57,326 installed ATMs, a 5% increase from the previous year [9] - The company has expanded its market footprint by entering the Japanese market through the acquisition of Kyodai Remittance [6] - Euronet's global payments network now reaches 4.1 billion bank accounts and 3.2 billion wallet accounts [11] Financial Outlook - The company anticipates adjusted EPS growth of 12% to 16% year-over-year for 2025, consistent with its long-term growth rates [17] - Euronet's unrestricted cash and cash equivalents were $1,329.3 million as of June 30, 2025, down from $1,393.6 million at the end of Q1 2025 [13]

Core Acquisition Overview - Euronet has entered into a definitive agreement to acquire CoreCard Corporation in a stock-for-stock merger valued at approximately $248 million, or $30 per share of CoreCard common stock [1][6] - The acquisition aims to accelerate Euronet's digital transformation strategy, expand its U.S. footprint, and enhance CoreCard's access to global markets [1][2] Strategic Goals - This transaction is a pivotal step in Euronet's strategy to diversify its revenue mix, focusing on scalable, modern platforms for the next generation of digital financial services [2] - The acquisition is expected to be accretive in the first full year post-close, positioning Euronet as a leading modern card issuer and innovation partner [5] CoreCard's Value Proposition - CoreCard's platform is recognized for its reliability and has been instrumental in launching successful co-branded credit card offerings, notably with Goldman Sachs [3] - The modern architecture of CoreCard enables faster deployment and easier integrations, which are essential for banks and fintechs looking to enhance customer experiences [4] Transaction Details - The merger agreement stipulates an exchange ratio for CoreCard shares based on Euronet's stock price, with a floor of $95.48 and a ceiling of $107.80 per share [7][8] - The transaction has been approved by the boards of directors of both companies and is expected to close in late 2025, pending shareholder approval and customary closing conditions [6] Company Backgrounds - Euronet is a global leader in payments processing and cross-border transactions, offering services in over 200 countries [11] - CoreCard provides a modern card issuing platform designed for the future of global transactions, focusing on technological innovation in the payments industry [10]

Company Overview - Euronet has announced a definitive agreement to acquire CoreCard in a stock-for-stock merger valued at approximately $248 million, equating to $30 per share of CoreCard common stock [1][6] - CoreCard is recognized for its innovative credit technology solutions and processing services, serving a significant role in the financial technology and services market [1][10] Strategic Implications - The acquisition is a strategic move for Euronet to diversify its revenue mix and enhance its capabilities in digital financial services, aiming for a more scalable and modern platform [2][5] - CoreCard's established credit card platform and its partnerships with major financial institutions, including a successful co-branded credit card with Goldman Sachs, will bolster Euronet's competitive position in a market dominated by legacy providers [3][4] Technological Advantages - CoreCard's modern architecture allows for faster deployment and easier integrations, which are essential for banks and fintechs looking to innovate and embed financial services into customer experiences [4][5] - The integration of CoreCard's platform with Euronet's existing infrastructure is expected to enhance Euronet's position as a leading card issuer and innovation partner in the digital finance space [5] Transaction Details - The merger agreement stipulates an exchange ratio for CoreCard shares based on Euronet's stock price, with a range between 0.2783 and 0.3142 shares of Euronet for each CoreCard share, subject to specific price floors and ceilings [7][8] - The transaction has received approval from both companies' boards and is anticipated to close in late 2025, pending shareholder approval and regulatory conditions [6][7]

Core Insights - Ria Money Transfer has acquired a 60% stake in Unidos Co., Ltd. (Kyodai Remittance), enhancing its presence in Japan's remittance market [1] - The acquisition allows Ria to integrate Kyodai's operations and digital products, providing access to a global network of over 624,000 locations and 4 billion bank accounts [2] - Japan's demographic changes, including a significant increase in labor migrants, are reshaping the remittance sector, with personal remittances from Japan reaching over USD $6.07 billion in 2024 [3] Company Overview - Ria Money Transfer is a business segment of Euronet (NASDAQ: EEFT) and is recognized for its innovative financial services, including fast and secure global money transfers [5] - The company operates the world's largest cross-border real-time money movement network, facilitating financial access for customers and partners [6] Strategic Partnership - Ria and Kyodai have collaborated since 2010, focusing on delivering a seamless customer experience through an omnichannel strategy [2] - The partnership is built on shared values and a commitment to providing secure and convenient money transfer solutions [4]

Company Overview - Euronet Worldwide, Inc. is a leading global financial technology solutions and payments provider, established in Central Europe in 1994, now operating a real-time digital and cash payments network with millions of touchpoints globally [4][5] - The company offers a wide range of services including money transfers, credit/debit card processing, ATMs, POS services, branded payments, and foreign currency exchange, available in over 200 countries and territories [4][5] Financial Performance Announcement - Euronet will release its second quarter 2025 earnings results prior to the market opening on July 31, 2025, and will hold a conference call at 9:00 a.m. Eastern Time on the same day to discuss these results [1] - The conference call will be accessible via webcast, and participants are encouraged to join five minutes early [2] Global Network and Infrastructure - Euronet has developed an extensive global payments network that includes 55,512 installed ATMs and approximately 1,214,000 EFT POS terminals across 69 countries [5] - The company manages a prepaid processing network with around 735,000 POS terminals at approximately 358,000 retail locations in 64 countries, and a global money transfer network with approximately 624,000 locations serving 199 countries and territories [5]

Core Viewpoint - The market anticipates Euronet Worldwide (EEFT) to report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Euronet Worldwide is expected to post quarterly earnings of $2.63 per share, reflecting a year-over-year increase of +16.9% [3]. - Revenues are projected to reach $1.08 billion, representing a 9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.49% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Euronet Worldwide is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.53% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - Euronet Worldwide currently holds a Zacks Rank of 2, suggesting a high likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Euronet Worldwide met the expected earnings of $1.13 per share, resulting in no surprise [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Conclusion - Euronet Worldwide is viewed as a compelling candidate for an earnings beat, but investors should consider other influencing factors before making investment decisions [17].