Core Viewpoint - Euronet Worldwide, Inc. has announced the pricing of $850 million in 0.625% Convertible Senior Notes due 2030, aimed at qualified institutional buyers, with an option for initial purchasers to buy an additional $150 million [1][2]. Group 1: Offering Details - The offering is expected to close on August 15, 2025, subject to customary closing conditions [2]. - The notes will bear interest at a rate of 0.625% per year, payable semiannually starting April 1, 2026, and will mature on October 1, 2030 [3]. - Euronet intends to use the net proceeds to repay existing borrowings under its unsecured revolving credit facility and for general corporate purposes [4]. Group 2: Conversion and Redemption - The notes are convertible at the option of the holders under certain circumstances, with an initial conversion rate of 7.8718 shares per $1,000 principal amount, equating to a conversion price of approximately $127.04 per share, representing a 30% premium over the last reported sale price of $97.72 [5]. - Euronet may redeem the notes starting October 7, 2028, if certain stock price conditions are met [6]. Group 3: Fundamental Change and Capped Call Transactions - In the event of a "fundamental change," holders may require Euronet to repurchase their notes at 100% of the principal amount plus accrued interest [7]. - Euronet has entered into capped call transactions to reduce potential dilution upon conversion of the notes, with an initial cap price of approximately $180.78 per share, an 85% premium over the last reported sale price [9]. Group 4: Share Repurchases - Euronet plans to use approximately $131.3 million of cash on hand to repurchase shares of its common stock concurrently with the pricing of the offering [12].

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].

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]

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]

Group 1 - Block, owner of Square and Cash App, is set to join the S&P 500, replacing Hess starting July 23, marking a significant milestone for the company and the mainstream acceptance of digital payments and cryptocurrency [2][3] - The company has evolved from a payments processing entity to a comprehensive FinTech, offering services such as peer-to-peer transfers, merchant services, and consumer lending, with recent approval from the FDIC to provide consumer loans through Cash App Borrow [3][4] - Block is integrating bitcoin payment capabilities into its Square terminals, reflecting CEO Jack Dorsey's advocacy for cryptocurrency, which aims to empower small businesses by allowing them to accept bitcoin and receive payments faster [4][5] Group 2 - The news of Block's inclusion in the S&P 500 coincided with the cryptocurrency market reaching an all-time high, surpassing $4 trillion, following the passage of three crypto-related bills by Congress [5] - The company is leveraging machine learning for fraud detection, developing internal models to identify potentially scam payments in real-time, enhancing security without disrupting the payment process [6][7]

Core Viewpoint - Visa has demonstrated significant investment returns since its IPO, with a total return of 2,880% since 2008, translating a $10,000 investment into $298,000 today [1] Group 1: Growth Potential - Visa's market capitalization currently stands at $721 billion, indicating strong market presence [2] - The company is expected to experience durable growth driven by the ongoing shift from cash to digital transactions, particularly in emerging markets [5] - Economic growth contributes to Visa's performance, with U.S. personal consumption expenditures increasing by 101% over the past decade [6] - Revenue and earnings per share are projected to grow at compound annual rates of 10.2% and 12.6%, respectively, from fiscal 2024 to fiscal 2027 [7] Group 2: Competitive Advantage - Visa possesses a strong economic moat, characterized by a significant network effect that enhances its competitive position [8] - There are 4.8 billion active Visa cards globally, accepted by 150 million merchants, creating value for both cardholders and merchants [9] - Despite the rise of fintech companies, Visa continues to grow its revenue and earnings, underscoring its essential role in the economy [11] Group 3: Investment Considerations - While Visa has produced substantial returns historically, future returns may not match past performance, with the S&P 500 index showing better returns over the last five years [12] - The stock trades at a price-to-earnings ratio of 37.5, indicating a high valuation that reflects market appreciation [13]

Summary of NCR Voyix (VYX) FY Conference Call - June 11, 2025 Company Overview - **Company**: NCR Voyix (VYX) - **Industry**: Payment Processing and Technology Solutions Key Points and Arguments Leadership and Background - Jim Kelly, the CEO, has extensive experience in the payments industry, having previously led EVO Payments and Global Payments, which saw significant growth during his tenure [2][4][12] - NCR Voyix underwent significant changes over the past four years, including a separation from NCR Corporation and restructuring efforts initiated by activist investors [5][6][8] Strategic Changes - The company sold its Digital Banking division to Veritas for $2.5 billion, which helped reduce debt significantly [8] - A focus on customer satisfaction has been emphasized, with efforts to improve relationships with over 50 CEOs and CIOs [7][12] - The company is transitioning from a hardware-centric model to a platform-based approach, emphasizing software and services [66][67] Payment Processing Strategy - NCR Voyix processes approximately $1.3 trillion in volume through its point-of-sale systems, significantly higher than the $150 billion processed by EVO Payments [15][16] - The company aims to increase its share of this volume, currently accessing only $400 million [16] - A partnership with Worldpay is being pursued to enhance payment processing capabilities [20][22] Product Development and Market Position - The company is launching a new cloud solution to support existing customers and penetrate new market segments [12][60] - A shift from one-time software licenses to a subscription model is being implemented to provide ongoing value to customers [24][35] - The attach rate for new customers in the restaurant sector is reported to be as high as 99% [27] Market Expansion and Customer Acquisition - The company is actively pursuing new customer acquisition, countering a previous strategy that focused solely on existing customers [39][41] - There is a significant opportunity in the mid-market and SME sectors, with 7 million merchants in the U.S. [43][45] Organizational Changes - The leadership team has been restructured to improve product focus and decentralize operations, enhancing responsiveness to customer needs [76][80] - New leadership roles have been filled to drive product development and market strategy [78][82] Financial Health and Future Outlook - The balance sheet is reported to be in the best shape in 20 years, with plans for share buybacks and investments in product development [85][87] - While M&A is not a primary focus, the company remains open to strategic opportunities if they align with its growth plans [90][92] Challenges and Risks - The transition to an outsourced design manufacturing model (ODM) is ongoing, with potential risks related to supply chain management and customer expectations [62][66] - The company acknowledges the need to address legacy technology issues and improve operational efficiencies [88][89] Additional Important Content - The company is not aiming to become a standalone payments company but rather to enhance its service offerings to existing customers [37] - The emphasis on customer-centric solutions and ease of implementation is a key differentiator in the competitive landscape [32][33] This summary encapsulates the critical insights from the NCR Voyix FY Conference Call, highlighting the company's strategic direction, market opportunities, and operational changes.

Group 1: Mastercard - Mastercard has delivered significant returns, more than doubling investors' money in five years and generating 6x returns in ten years [4] - The company processed transactions worth $9.8 trillion in 2024 and has 1.1 billion cards in circulation worldwide [5] - In Q1, Mastercard's revenue grew by 14% year over year, driven by cross-border volume growth of 15%, with an operating margin of 57.2% [7] - The company is innovating with technologies like artificial intelligence, positioning itself well in the shift from cash to digital payments [8] Group 2: Waste Management - Waste Management has generated nearly 50% in total returns over three years, 160% over five years, and 470% over ten years [9] - The company expanded its business by acquiring Stericycle, expecting $250 million in synergies through 2027, which is double its original expectations [11] - Waste Management is focusing on scaling its core operations through acquisitions and has a robust pipeline of opportunities [12] - The company has increased its dividend for 22 consecutive years, demonstrating a commitment to shareholder returns [13] Group 3: BYD - BYD has surpassed Tesla in sales volumes and revenue, becoming the world's largest EV maker with over $100 billion in revenue in 2024 [15] - The company's net income jumped 100% year over year in Q1, indicating strong financial performance [15] - BYD is one of the largest battery manufacturers globally, providing a competitive advantage in costs and supply [17] - The company is expanding rapidly, entering new markets and opening showrooms, which positions it for continued growth [17][18]