Euronet Worldwide(US:EEFT)2025-11-04 22:03Revenue 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].