Euronet Worldwide, Inc. Reports Financial Results for the Quarter Ended March 31, 2025

Euronet Worldwide: A Leading Global Financial Technology Solutions Provider

Euronet Worldwide is a leading global financial technology solutions and payments provider. The company operates in three main segments: EFT Processing, epay, and Money Transfer.

EFT Processing Segment The EFT Processing Segment meets the needs of financial institutions and consumers through Euronet-owned and outsourced ATMs and point-of-sale (POS) terminals, combined with value-added and transaction processing services. This segment processes transactions across a network of 55,512 installed ATMs and approximately 1,214,000 POS terminals.

epay Segment The epay Segment provides retail payment solutions and delivers connections between digital content and consumers. epay has one of the largest retail networks across Europe and Asia for distributing physical and digital third-party content, including branded payments, mobile, and alternative payments. epay operates in 64 countries and has a network of approximately 735,000 POS terminals.

Money Transfer Segment The Money Transfer Segment provides global money transfers and currency exchange information through Ria Money Transfer, Xe, and the Dandelion cross-border real-time payments network. Euronet’s Money Transfer segment offers real-time, cross-border payments to consumers and businesses across 199 countries and territories.

Financial Performance Overview For the three months ended March 31, 2025, Euronet reported total revenues of $915.5 million, an increase of 7% compared to the same period in 2024. This revenue growth was driven by strong performance across all three of Euronet’s operating segments.

The EFT Processing Segment saw revenues increase by 7% to $232.5 million, primarily due to market expansion, growth across existing markets, and the addition of access fees and interchange fees in certain markets. The epay Segment revenues increased by 4% to $267.4 million, driven by continued growth in payments, digital media, and mobile transactions. The Money Transfer Segment had the strongest revenue growth, increasing by 9% to $417.7 million, fueled by double-digit growth in cross-border transactions.

Euronet’s operating income for the three months ended March 31, 2025 was $75.2 million, an increase of 17% compared to the same period in 2024. This growth in operating income was led by the Money Transfer Segment, which saw a 21% increase in operating income to $45.1 million. The EFT Processing Segment operating income increased by 8% to $23.3 million, while the epay Segment operating income grew by 1% to $26.8 million.

Strengths and Opportunities Euronet’s global footprint and diversified product portfolio present significant opportunities for the company. The fragmented nature of the markets in which Euronet operates allows the company to increase its market presence through both physical (ATMs, POS terminals, company stores, and agent correspondents) and digital assets. Additionally, Euronet’s focus on developing new and improved products and services for customers across all of its channels may drive an increase in the number of transactions on its networks.

In the EFT Processing Segment, key opportunities include physical expansion into target markets, developing value-added products or services, increasing high-value dynamic currency conversion (DCC) and surcharge transactions, and efficiently leveraging the company’s portfolio of software solutions. The epay Segment’s opportunities include renewing existing and negotiating new agreements with digital content providers, mobile operators, financial institutions, and retailers. The Money Transfer Segment’s opportunities include expanding its portfolio of products and services to new and existing customers around the globe, which may lead to an increase in transaction volumes.

Challenges and Risks While Euronet’s global reach and diverse product offerings present significant opportunities, the company also faces several challenges and risks.

In the EFT Processing Segment, operational challenges include obtaining and maintaining the required licenses and sponsorship agreements in the markets in which Euronet operates, as well as navigating the frequently changing rules imposed by international card organizations that govern ATM interchange fees, direct access fees, and other restrictions. The profitability of this segment is also dependent on the laws and regulations that govern DCC transactions, specifically in the European Union, as well as the laws and regulations of each country in which Euronet operates.

The epay Segment faces competition in the digital media content and prepaid mobile phone markets, which may impact the company’s ability to grow organically and increase the margin it earns and the margin it pays to retailers. The profitability of this segment is also dependent on Euronet’s ability to adapt to new technologies that may compete with POS distribution of digital content and prepaid mobile airtime, as well as the company’s ability to leverage cross-selling opportunities with its EFT and Money Transfer Segments.

In the Money Transfer Segment, key challenges include maintaining compliance with all regulatory requirements, maintaining all required licenses, ensuring the recoverability of funds advanced to agents, and the continued reliance on the technologies required to operate the business. The volume of transactions processed on Euronet’s network is also impacted by shifts in the company’s customer base, which can change rapidly with worker migration patterns and changes in unbanked populations across the globe.

For all segments, Euronet’s continued expansion may involve additional acquisitions that could divert the company’s resources and management time and require integration of new assets with its existing networks and services. Inadequate technology and resources would also impair Euronet’s ability to maintain current processing technology and efficiencies, as well as deliver new and innovative services to compete in the marketplace.

Outlook and Future Considerations Euronet’s diverse product portfolio, global footprint, and focus on innovation position the company for continued growth. However, the company must navigate the challenges and risks inherent in its operating environment, including regulatory changes, competition, and the need for ongoing technological investment.

Inflationary pressures may also impact Euronet’s business, as travelers have less cash available to spend on vacations, which could affect the EFT Processing Segment, and consumers may have less discretionary income to spend on digital media and mobile transactions, which could impact the epay Segment. The Money Transfer Segment may also see some pressure on send amounts due to the inflationary environment.

To address these challenges, Euronet will need to continue to adapt its products and services, maintain strong relationships with its partners and customers, and invest in the technology and infrastructure necessary to deliver innovative solutions. By leveraging its strengths and addressing its weaknesses, Euronet can continue to solidify its position as a leading global financial technology solutions provider.