Euronet Worldwide, Inc.

Euronet reported second-quarter revenue of $1.1 billion, operating income of $137 million, adjusted EBITDA of $193 million, and adjusted EPS of $2.82, which was up 10% year over year. Management said operating income included $4.7 million of non-cash purchase price amortization from CoreCard and $1.9 million of non-cash share-based compensation; excluding those items, operating income would have declined 9%. On a segment basis, payments infrastructure operating income rose 2% and adjusted EBITDA 6% (7% operating income growth excluding CoreCard amortization), epay revenue grew 4% with operating income and adjusted EBITDA up about 5%, and cross-border revenue declined 5% with operating income down 35% and adjusted EBITDA down 32%. For the full year, management said the outlook is unchanged and continues to call for adjusted EPS growth of 10%-15%; they also said revenue growth expectations remain pretty much unchanged from Investor Day and that digital accelerators are running ahead of the 23% growth framework outlined there.

Mike Brown emphasized that Euronet’s diversified model and digital strategy are increasingly driving the company, saying digital accelerators were the primary growth driver and are becoming a larger, more durable part of the mix. He highlighted strong momentum in Ria Digital, CoreCard, merchant services, and epay’s gaming/content initiatives, while acknowledging softness in remittances and some travel-related ATM activity. His tone was confident but measured: he repeatedly said the core strategy is intact, near-term headwinds are real, and the company remains focused on long-term value creation.

Rick Weller said Q2 revenue was $1.1 billion, operating income $137 million, adjusted EBITDA $193 million, and adjusted EPS $2.82, with free cash flow of approximately $80 million. He noted the CoreCard-related non-cash amortization hit of $4.7 million and $1.9 million of non-cash share-based comp, and explained that cross-border weakness plus added digital investment pressured operating income; excluding the non-cash items, operating income would have increased in payments infrastructure and declined less sharply at the consolidated level. On capital allocation, he said Euronet repurchased about 705,000 shares for $50 million, ended the quarter with $1.2 billion in unrestricted cash and nearly $1 billion deployed in the ATM network, and carried $2.7 billion of total debt; he also said settling EUR 700 million bonds will increase interest expense by about $6 million for the rest of the year versus the prior year.

Analysts focused on why digital accelerator revenue is running at 35% year to date versus the company’s 23% framework, and management said the biggest reason is lapping the CoreCard acquisition, with Mike Brown adding that the Investor Day target was intentionally conservative. Questions also centered on CoreCard, where management said the Peru win validated the product and broader Ren platform, and that they are already seeing multiple deals and more in the pipeline. On money transfer, management said they are increasing digital marketing by about $3 million, see some near-term improvement in travel-linked volumes, and are cautiously optimistic that cross-border conditions will stabilize as digital channels and Dandelion/XE grow.