Core Viewpoint - Euronet Worldwide, Inc. plans to offer $850 million in Convertible Senior Notes due 2030, with an option for an additional $150 million, to qualified institutional buyers, aiming to use the proceeds primarily for debt repayment and share repurchases [1][3]. Group 1: Offering Details - The offering consists of $850 million in aggregate principal amount of Convertible Senior Notes, with an option for initial purchasers to buy an additional $150 million [1][3]. - The notes will be unsecured obligations of Euronet, accruing interest payable semiannually, with conversion options including cash, common stock, or a combination [2][3]. - The interest rate and initial conversion rate will be determined at the time of pricing [2]. Group 2: Use of Proceeds - Euronet intends to use the net proceeds from the offering to repay existing borrowings under its unsecured revolving credit facility [3]. - If the additional notes are purchased, proceeds will also be used for further debt repayment or general corporate purposes [3]. - Up to $175 million of cash on hand will be used for share repurchases concurrently with the pricing of the offering [3][7]. Group 3: Capped Call Transactions - Euronet plans to enter into capped call transactions to reduce potential dilution of its common stock upon conversion of the notes [4]. - These transactions will cover the number of shares initially underlying the notes and are expected to offset cash payments exceeding the principal amount of converted notes [4][5]. - The option counterparties may engage in stock purchases or derivative transactions that could influence the market price of Euronet's common stock [5][6]. Group 4: Market Impact - The share repurchases and capped call transactions could affect the market price of Euronet's common stock, potentially leading to a higher initial conversion price for the notes [7]. - The activities related to hedging and share repurchases may increase or decrease the market price of the common stock and notes, impacting conversion terms for noteholders [5][6].

[PART I—FINANCIAL INFORMATION](index=2&type=section&id=PART%20I—FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited H1 2025 consolidated financial statements show increased assets, liabilities, revenues, and net income attributable to the company [Consolidated Balance Sheets](index=2&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Summary (in millions) | Balance Sheet Item | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $4,536.3 | $4,036.5 | | Goodwill | $954.9 | $859.2 | | **Total assets** | **$6,554.9** | **$5,834.5** | | **Liabilities & Equity** | | | | Total current liabilities | $3,935.2 | $3,226.0 | | Debt obligations, net of current portion | $1,002.3 | $1,134.4 | | **Total liabilities** | **$5,191.5** | **$4,605.3** | | **Total equity** | **$1,363.4** | **$1,229.2** | [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Summary (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $1,074.3 | $986.2 | $1,989.8 | $1,843.2 | | Operating income | $158.6 | $134.3 | $233.8 | $198.3 | | Net income attributable to Euronet | $97.6 | $83.1 | $136.0 | $109.3 | | Diluted EPS | $2.27 | $1.73 | $3.08 | $2.28 | [Consolidated Statements of Comprehensive Income (loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(loss)) - Comprehensive income attributable to Euronet was significantly impacted by foreign currency translation adjustments, resulting in a comprehensive income of **$283.8 million** for Q2 2025, compared to **$73.3 million** in Q2 2024. For the six-month period, comprehensive income was **$405.2 million** in 2025 versus **$54.5 million** in 2024[15](index=15&type=chunk) [Consolidated Statements of Changes in Equity](index=4&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) - The company repurchased **2,287,052 shares** in Q2 2025 and a total of **2,878,310 shares** in the first six months of 2025. This compares to **1,000,000 shares** repurchased in Q2 2024[17](index=17&type=chunk) - Total equity increased from **$1,229.2 million** at the end of 2024 to **$1,363.4 million** as of June 30, 2025, driven by net income of **$136.1 million** and positive other comprehensive income of **$270.0 million**, partially offset by share repurchases[20](index=20&type=chunk) [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Summary (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $184.6 | $212.2 | | Net cash used in investing activities | ($88.9) | ($155.2) | | Net cash provided by financing activities | $79.2 | $304.4 | | Effect of exchange rate changes | $257.8 | ($53.2) | | **Increase in cash and cash equivalents** | **$432.7** | **$308.2** | - Cash used in financing activities for the six months ended June 30, 2025 included **$310.6 million** for share repurchases and a **$491.8 million** repayment of convertible notes, funded by net borrowings from credit agreements[22](index=22&type=chunk)[23](index=23&type=chunk) [Notes to the Unaudited Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) - On May 31, 2025, Euronet acquired a **60% equity stake** in UNIDOS CO. LTD for **$18 million**, with the results included in the Money Transfer segment. This follows the February 2024 acquisition of Infinitium Group for **$70 million** in cash and **$5 million** in stock[31](index=31&type=chunk)[32](index=32&type=chunk) - In March 2025, the company repurchased **$491.8 million** of its **0.75% Convertible Senior Notes** due 2049 after holders exercised their repurchase right, leaving **$33.2 million** outstanding. This significantly reduced the potential share dilution from these notes[41](index=41&type=chunk)[60](index=60&type=chunk) - The company has multiple active share repurchase programs. As of June 30, 2025, approximately **$224.8 million** remained available under a 2024 program and **$400 million** was available under a new program established in June 2025[43](index=43&type=chunk)[44](index=44&type=chunk) - Subsequent to the quarter's end, on July 30, 2025, Euronet entered into a definitive agreement to acquire CoreCard in a stock-for-stock merger transaction valued at approximately **$248 million**[104](index=104&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2025 results show revenue and operating income growth across all segments, supported by strong liquidity and available credit [Overview](index=23&type=section&id=Overview) - Euronet operates in three segments: EFT Processing (ATM/POS services), epay (prepaid product distribution), and Money Transfer (global money transfers via Ria, Xe, and Dandelion)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - For the first six months of 2025, approximately **75.6% of revenues** were denominated in currencies other than the U.S. dollar, making foreign currency exchange rates a significant factor in reported results[124](index=124&type=chunk) Revenue Contribution by Segment (Six Months Ended June 30, 2025) | Segment | Revenue Contribution | | :--- | :--- | | Money Transfer | ~44% | | EFT Processing | ~29% | | epay | ~27% | [Segment Summary Results of Operations](index=25&type=section&id=Segment%20Summary%20Results%20of%20Operations) Revenue by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | EFT Processing | $338.5 | $305.4 | +11% | $571.0 | $522.6 | +9% | | epay | $280.1 | $260.9 | +7% | $547.5 | $518.0 | +6% | | Money Transfer | $457.9 | $421.8 | +9% | $875.6 | $806.4 | +9% | | **Total** | **$1,074.3** | **$986.2** | **+9%** | **$1,989.8** | **$1,843.2** | **+8%** | Operating Income by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | EFT Processing | $84.6 | $79.9 | +6% | $107.9 | $101.4 | +6% | | epay | $31.1 | $26.2 | +19% | $57.9 | $52.8 | +10% | | Money Transfer | $65.6 | $47.3 | +39% | $110.7 | $84.5 | +31% | | **Total** | **$158.6** | **$134.3** | **+18%** | **$233.8** | **$198.3** | **+18%** | [Comparison of Operating Results](index=26&type=section&id=Comparison%20of%20Operating%20Results) [EFT Processing Segment](index=26&type=section&id=EFT%20Processing%20Segment) - Q2 2025 revenue increased **11% YoY** to **$338.5 million**, driven by market expansion, growth in existing markets, increased tourism, and new fees. Foreign currency fluctuations contributed **$14.0 million** to this growth[140](index=140&type=chunk) - The number of active ATMs grew by **5% YoY** to **56,760**, and transactions processed surged by **36%** to **3.7 billion** in Q2 2025[139](index=139&type=chunk) - Operating income for Q2 2025 grew **6%** to **$84.6 million**, but the operating margin slightly decreased to **25.0%** from **26.2%** in the prior year, as direct operating costs rose **14%** due to higher business volumes and inflation[141](index=141&type=chunk)[146](index=146&type=chunk) [epay Segment](index=27&type=section&id=epay%20Segment) - Q2 2025 revenue increased **7% YoY** to **$280.1 million**, driven by continued growth in payments, digital media, and mobile products[149](index=149&type=chunk) - Gross margin improved to **24.7%** in Q2 2025 from **23.9%** in Q2 2024, primarily due to a favorable shift in the mix of transactions processed[151](index=151&type=chunk) - Operating income grew **19% YoY** to **$31.1 million** in Q2 2025, with the operating margin expanding to **11.1%** from **10.0%** in the prior year[156](index=156&type=chunk) [Money Transfer Segment](index=29&type=section&id=Money%20Transfer%20Segment) - Q2 2025 revenue increased **9% YoY** to **$457.9 million**, driven by double-digit growth in cross-border transactions and a **29% growth** in direct-to-consumer digital transactions[158](index=158&type=chunk) - Gross margin expanded significantly to **48.0%** in Q2 2025 from **45.1%** in Q2 2024, reflecting growth in higher-margin international and digital transactions[160](index=160&type=chunk) - Operating income surged **39% YoY** to **$65.6 million** in Q2 2025, and operating margin increased to **14.3%** from **11.2%**, as income growth outpaced revenue growth due to margin expansion and expense management[164](index=164&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had working capital of **$601.1 million**, unrestricted cash of **$1,329.3 million**, and an additional **$937.4 million** of cash in its ATM network[177](index=177&type=chunk)[178](index=178&type=chunk) - For the first six months of 2025, cash from operations was **$184.6 million**, a decrease from **$212.2 million** in the prior year, mainly due to changes in deferred taxes and working capital fluctuations[179](index=179&type=chunk)[180](index=180&type=chunk) - The company amended its revolving credit facility in December 2024, increasing it to **$1.9 billion**. As of June 30, 2025, **$884.2 million** was available for borrowing[185](index=185&type=chunk)[186](index=186&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces significant interest rate and foreign currency risks, actively managed through debt structure and derivative contracts - As of June 30, 2025, **40% of total debt** (**$965.1 million**) was variable-rate borrowings under the Credit Facility. A **1% (100 basis points) increase** in interest rates would result in approximately **$9.7 million** of additional annual interest expense on these borrowings[197](index=197&type=chunk)[198](index=198&type=chunk) - For the first six months of 2025, **75.6% of revenues** were generated in non-U.S. dollar currencies. The company estimates a **10% fluctuation** in key foreign currency exchange rates would have an annualized effect on net income and working capital of approximately **$180 million to $190 million**[199](index=199&type=chunk)[200](index=200&type=chunk) - The company uses foreign currency derivative contracts to minimize exposure. As of June 30, 2025, it had contracts with a notional value of **$677.2 million** for Ria operations, **$1.1 billion** for xe operations, and **$198.0 million** for other balance sheet hedging[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal controls during the quarter - Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025, and concluded they were effective[207](index=207&type=chunk) - No changes occurred in the company's internal control over financial reporting during the three months ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[208](index=208&type=chunk) [PART II—OTHER INFORMATION](index=36&type=section&id=PART%20II—OTHER%20INFORMATION) [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company faces an Italian tax dispute with a potential $16.5 million liability and expects to recover $10 million from a fire loss - The company is appealing an adverse judicial decision in Italy related to withholding taxes in its Money Transfer Segment. While a liability is considered reasonably possible, it is not deemed probable. The potential amount for all open periods is approximately **$16.5 million**[212](index=212&type=chunk) - In March 2025, Malaysian Ringgit notes worth approximately **$10 million** were lost in a fire while in a third-party's custody. The company has determined it is probable the funds will be recovered from the service provider[213](index=213&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) The primary new risk factor involves uncertainties surrounding the CoreCard acquisition's completion and subsequent integration challenges - A significant new risk factor is the pending acquisition of CoreCard Corporation. Completion is uncertain as it depends on conditions beyond the company's control, such as CoreCard stockholder approval and regulatory approvals[215](index=215&type=chunk) - If the acquisition is completed, the company faces risks related to the successful integration of CoreCard, which could lead to operational challenges, diversion of management attention, and failure to realize anticipated synergies[216](index=216&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased over 2.2 million shares, with substantial funds remaining for future repurchases under active programs Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 130,000 | $98.87 | | May 2025 | 1,411,752 | $107.62 | | June 2025 | 745,300 | $110.46 | | **Total** | **2,287,052** | **$108.05** | - As of June 30, 2025, the company had approximately **$224.8 million** available for repurchase under its September 2024 program and the full **$400 million** available under its new June 2025 program[218](index=218&type=chunk) [Other Information](index=38&type=section&id=Item%205%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[220](index=220&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) Key exhibits include the CoreCard merger agreement, CEO/CFO certifications, and financial data in XBRL format - Key exhibits filed with the report include the Agreement and Plan of Merger for the CoreCard acquisition, CEO/CFO certifications, and financial statements in XBRL format[221](index=221&type=chunk)

Core Insights - Euronet Worldwide, Inc. (EEFT) shares have declined by 4.7% since the release of its second-quarter 2025 results, which were weaker than expected due to a drop in intra-U.S. transactions and increased expenses. However, growth in transaction volumes, a robust global payment network, and expansion in digital and cross-border payments provided some offset to these negatives [1][8]. Financial Performance - Adjusted earnings per share for Q2 2025 were reported at $2.56, missing the Zacks Consensus Estimate by 2.7%, although this represents a 14% increase year over year [2][8]. - Total revenues reached $1.1 billion, reflecting a 9% year-over-year improvement and a 6% increase on a constant-currency basis, but fell short of the consensus estimate by 0.1% [2][8]. - Net income for the quarter was $97.6 million, up 17.4% year over year, while operating income increased by 18% year over year to $158.6 million [3][8]. - Total operating expenses rose by 7.5% year over year to $915.7 million, driven by higher direct operating costs, salaries, and administrative expenses [3][8]. - Adjusted EBITDA improved by 16% year over year to $206.2 million [3]. Segment Performance - The EFT Processing segment reported revenues of $338.5 million, an 11% increase year over year, but below the consensus estimate of $340.5 million. Adjusted EBITDA for this segment was $110.6 million, a 5% year-over-year increase [4][5]. - The epay segment generated revenues of $280.1 million, growing 7% year over year and surpassing the consensus estimate of $279.3 million. Adjusted EBITDA rose 17% year over year to $32.8 million [5][6]. - The Money Transfer segment's revenues were $457.9 million, a 9% increase year over year, exceeding the Zacks Consensus Estimate of $456.8 million. Adjusted EBITDA for this segment advanced 33% year over year to $71.6 million [7][8]. Financial Position - As of June 30, 2025, Euronet had cash and cash equivalents of $1.3 billion, a 3.9% increase from the end of 2024. Total assets rose to $6.6 billion from $5.8 billion at the end of 2024 [10]. - Debt obligations, net of the current portion, decreased to $1 billion from $1.1 billion at the end of 2024, while short-term debt stood at $1.4 billion [10]. - Equity increased to $1.4 billion from $1.2 billion at the end of 2024 [10]. Future Outlook - Management has reaffirmed its guidance for 2025, projecting adjusted EPS growth in the range of 12-16% [12].

Core Insights - Euronet Worldwide reported $1.07 billion in revenue for Q2 2025, an 8.9% year-over-year increase, with EPS of $2.56 compared to $2.25 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by 0.09%, while the EPS was 2.66% below the consensus estimate [1] Revenue Breakdown - EFT Processing Segment generated $338.5 million, slightly below the average estimate of $340.47 million, reflecting a 10.8% year-over-year increase [4] - epay Segment revenue was $280.1 million, exceeding the estimated $279.33 million, marking a 7.4% year-over-year increase [4] - Money Transfer Segment reported $457.9 million, slightly above the average estimate of $456.77 million, with an 8.6% year-over-year increase [4] Stock Performance - Euronet Worldwide shares have returned -6% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

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]