Euronet Worldwide Achieves Record Q1 2025 Results, Strong Growth Across Segments

# Euronet Reports Strong Q1 Financial Results with Significant Growth

## Overview of Financial Highlights

Euronet Worldwide, Inc. (Euronet) reported a solid performance for the first quarter of 2025. Revenue reached $123.3 million, marking a 13% increase on a constant currency basis. This growth was fueled by robust transactions across its segments.

### Key Financial Metrics

– **Net Income**: Euronet’s net income attributable to the company was $38.4 million, or $0.85 diluted earnings per share, compared to $26.2 million, or $0.55 diluted earnings per share in the prior year.
– **Adjusted Earnings Per Share (EPS)**: The adjusted EPS stood at $1.13 ($1.33 excluding a one-time operating tax charge of $0.20 per share), slightly lower than the previous year’s $1.28 ($1.13 when excluding a one-time operating tax benefit of $0.15 per share).

As highlighted by CEO Michael J. Brown, the company accomplished double-digit constant currency growth in adjusted operating income and adjusted EBITDA, notably achieving an 18% increase in adjusted operating income year-over-year. Brown emphasized the effectiveness of their strategic focus on a global payment network that prioritizes digital payments and cross-border transactions.

## Segment Analysis

### EFT Processing Segment

For the EFT Processing Segment, Euronet reported the following results:

– **Revenues**: $232.5 million, up 7% from $217.2 million (10% increase on a constant currency basis).
– **Operating Income**: Increased by 8% to $23.3 million from $21.5 million (13% increase on a constant currency basis).
– **Adjusted EBITDA**: Reached $47.6 million, an increase of 6% over $44.7 million (10% increase on a constant currency basis).
– **Transactions**: Totaled 3,463 million, marking a 38% increase from 2,502 million.
– **Installed ATMs**: 55,512 ATMs, which is a 5% increase from 53,029.

The growth in the EFT Processing segment was attributed to market expansion and the addition of access and interchange fees in certain markets. Notably, operations were launched in the Dominican Republic and Peru during this quarter.

### epay Segment

The epay Segment’s results were as follows:

– **Revenues**: Reached $267.4 million, a 4% increase from $257.1 million (8% increase on a constant currency basis).
– **Operating Income**: Rose to $26.8 million, a 1% increase from $26.6 million.
– **Adjusted EBITDA**: Remained consistent at $28.4 million (5% increase on a constant currency basis).
– **Transactions**: Increased by 19% to 1,134 million from 953 million.

Despite the revenue growth, operating income and adjusted EBITDA did not match the same pace due to a $4.5 million payment to settle a non-recurring tax matter. Excluding this item, adjusted operating income would have grown by 22%.

### Money Transfer Segment

The Money Transfer Segment reported:

– **Revenues**: $417.7 million, a 9% increase from $384.6 million (10% increase on a constant currency basis).
– **Operating Income**: Increased by 21% to $45.1 million from $37.2 million.
– **Adjusted EBITDA**: Grew by 15% to $51.3 million from $44.5 million.
– **Transactions**: Increased by 10% to 44.6 million from 40.6 million.

The growth was primarily driven by an increase in cross-border transactions, despite a decrease in intra-US transactions. The company also noted a 31% growth in direct-to-consumer digital transactions.

## Corporate Expenses and Balance Sheet

Euronet’s corporate expenses decreased to $20.0 million for the first quarter compared to $21.3 million in the same period last year, mainly due to reduced long-term share-based compensation.

Unrestricted cash and cash equivalents amounted to $1,393.6 million, up from $1,278.8 million at the end of 2024. Total indebtedness rose to $2,202.5 million from $1,949.8 million, with approximately $623.1 million available under revolving credit facilities.

During this quarter, Euronet repurchased 0.6 million shares for $59.6 million, which is anticipated to boost earnings per share by 1% in future periods.

In summary, Euronet marked a strong first quarter, demonstrating growth across its segments despite some challenges, and maintained a positive outlook for the remainder of the year.# Euronet Worldwide Reports $492 Million in Convertible Notes with Non-GAAP Financial Insights

## Understanding Non-GAAP Measures

Euronet Worldwide offers a comprehensive overview of its financial performance, including non-GAAP measures alongside U.S. GAAP results. These include constant currency financial measures, operating income, adjusted EBITDA, and adjusted earnings per share (EPS). While helpful for assessing performance, these measures are not substitutes for traditional financial metrics like revenues and net income.

Investors and analysts often find non-GAAP figures valuable for understanding the company’s true operational performance. However, Euronet cautions that its non-GAAP measures may differ from those used by other companies, thus limiting direct comparability. For a complete view, one can review attached schedules that reconcile these measures with their closest GAAP equivalents.

## Challenges in Forecasting Non-GAAP Measures

Due to the complexity of accurately predicting future financial conditions, Euronet does not provide reconciliations of forward-looking non-GAAP measures to GAAP. This is primarily because essential adjustments for foreign currency fluctuations and other variables may significantly alter expected results, making precise forecasting difficult.

### Definitions of Non-GAAP Measures

1. **Constant Currency Financial Measures**: These metrics assess performance as if there had been no changes in foreign currency exchange rates from the prior period. This helps illustrate the effects of exchange rate fluctuations on overall results.

2. **Adjusted Operating Income**: This measure indicates operating income adjusted for non-cash purchase accounting impacts. It serves as an important performance metric but does not imply liquidity.

3. **Adjusted EBITDA**: Represented as net income with the exclusion of specific expenses like interest, taxes, and share-based compensation. This figure aims to present a clearer picture of operational efficiency and is also not a liquidity measure.

4. **Adjusted Earnings Per Share**: Defined as diluted GAAP EPS minus the tax-affected impacts of various items, including foreign exchange gains, non-cash expenses, and the dilutive effect of convertible bonds. This is another performance metric, not a liquidity indicator.

## Upcoming Conference Call and Presentation

Euronet Worldwide will conduct an analyst conference call on April 24, 2025, at 9:00 a.m. Eastern Time to discuss its financial results and recent developments. Participants interested in joining should register at least five minutes early and can access the call by telephone or via webcast. A replay will be available approximately one hour after the call, remaining accessible for one year.

## Company Overview

Euronet Worldwide, established in 1994 in Central Europe, has grown into a global network for real-time digital and cash payments. The company operates millions of transaction points worldwide, catering to consumer and business needs through services like money transfers, ATM operations, and foreign currency exchange.

With products across more than 200 countries, Euronet has developed a robust payments network that includes over 55,000 ATMs and over 1 million EFT POS terminals. Headquartered in Leawood, Kansas, Euronet continues to offer cutting-edge financial technology solutions and payment services.

## Cautionary Statement

The statements in this release involve forward-looking assertions regarding Euronet’s performance, which the company cautions may vary due to various factors. Potential influences include global financial market conditions, inflation, international conflicts, integration of acquisitions, regulatory environment changes, and technological developments.

Euronet Worldwide, Inc. Reports Financial Overview and Risk Factors

This document outlines significant financial details and risk elements impacting Euronet Worldwide, Inc. The company’s filings with the Securities and Exchange Commission (SEC) provide deeper insights into these factors. Investors can access these reports online for comprehensive information.

Financial Risks Affecting Euronet

The risks Euronet faces include shifting immigration laws and regulations on payments, including dynamic currency conversion transactions. Changes in relationships with business partners can affect fees, while competition remains a constant challenge. Claims and other loss contingencies also pose risks, along with fluctuations in borrowing costs and interest rates.

As the company navigates the borrowing environment, it’s essential to note the availability of credit and compliance with debt covenants. Euronet must also consider renewing funding sources as they expire and identifying replacement funding availability.

Accessing SEC Filings

The company’s specific risks and forward-looking statements are detailed in its SEC filings, including the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. These filings can be obtained on the SEC’s Edgar website or by contacting Euronet directly.

Euronet states that any forward-looking statements in this release are valid only as of the issue date. The company does not commit to updating these statements unless required by law. For real-time updates, stakeholders are encouraged to check the investor relations section of the company’s website regularly.

Condensed Consolidated Balance Sheets

EURONET WORLDWIDE, INC.
Condensed Consolidated Balance Sheets
(in millions)
	As of
	March 31, 2025			December 31, 2024
	(unaudited)			2024
ASSETS
Current assets:
Cash and cash equivalents	$	1,393.6		$	1,278.8
ATM cash	700.3			643.8
Restricted cash	10.8			9.2
Settlement assets	1,418.6			1,522.7
Trade accounts receivable, net	330.5			284.9
Prepaid expenses and other current assets	319.9			297.1
Total current assets	4,173.7			4,036.5

Recent Financial Data: Key Insights into Liabilities and Assets

Property and equipment, net	337.4			329.7
Right of use lease asset, net	146.1			132.1
Goodwill and acquired intangible assets, net	1,070.9			1,048.1
Other assets, net	325.4			288.1
Total assets	$	6,053.5		$	5,834.5
LIABILITIES AND EQUITY
Current liabilities:
Settlement obligations	$	1,418.6		$	1,522.7
Accounts payable and other current liabilities	843.6			841.0
Current portion of operating lease liabilities	50.8			48.3
Short-term debt obligations	295.4			814.0
Total current liabilities	2,608.4			3,226.0
Debt obligations, net of current portion	1,906.0			1,134.4
Operating lease liabilities, net of current portion	97.8			87.4
Capital lease obligations, net of current portion	1.1			1.4
Deferred income taxes

# Euronet Worldwide, Inc. Releases Consolidated Statements of Operations

Euronet Worldwide, Inc.
Consolidated Statements of Operations
(unaudited – in millions, except share and per share data)
	Three Months Ended
	March 31,
	2025				2024
Revenues	$	915.5			$	857.0
Operating expenses:
Direct operating costs	561.0				533.7
Salaries and benefits	164.1				154.7
Selling, general and administrative	83.0				71.9
Depreciation and amortization	[Data Not Provided]				[Data Not Provided]

The above financial details reflect Euronet Worldwide, Inc.’s consolidated revenue, operating expenses, and additional financial metrics for the three months ended March 31, 2025, compared to the corresponding period in 2024. For further analysis and insight, additional operational and financial data are available in the full report.# Financial Results Highlight Modest Growth Amid Challenges

### Key Financial Metrics

The following highlights key financial metrics for the reporting period, showcasing trends in operating expenses, income, and other relevant data.

**Total Operating Expenses:**
– Current Period: **$840.3 million**
– Previous Period: **$793.0 million**

**Operating Income:**
– Current Period: **$75.2 million**
– Previous Period: **$64.0 million**

### Other Income (Expense)

This section provides an overview of other income and expenses that impact the overall financial performance.

**Interest Income:**
– Current Period: **$5.3 million**
– Previous Period: **$5.7 million**

**Interest Expense:**
– Current Period: **($19.4 million)**
– Previous Period: **($14.9 million)**

**Foreign Currency Exchange (Loss):**
– Current Period: **($18.1 million)**
– Previous Period: **($12.5 million)**

**Other Income (Expense):**
– Current Period: **$2.5 million**
– Previous Period: **($0.1 million)**

### Total Other Income (Expense), Net

– Current Period: **($29.7 million)**
– Previous Period: **($21.8 million)**

### Income Before Income Taxes

– Current Period: **$45.5 million**
– Previous Period: **$42.2 million**

### Income Tax Expense

– Current Period: **($7.1 million)**
– Previous Period: **($16.0 million)**

### Net Income

– Current Period: **$38.4 million**
– Previous Period: **$26.2 million**

**Net Loss Attributable to Non-Controlling Interests:**
– Current Period: **—**

In summary, these financial results indicate a modest increase in net income and operating income, despite rising operating expenses and ongoing challenges from interest and currency exchange losses. The data reflects gradual growth while highlighting key pressures in the company’s financial landscape.“`html

Euronet Worldwide Reports Increased Net Income for Recent Quarter

	—
Net income attributable to Euronet Worldwide, Inc.	$	38.4			$	26.2
Add: Interest expense from assumed conversion of convertible notes, net of tax		1.0				0.9
Net income for diluted earnings per share calculation	$	39.4			$	27.1
earnings per share attributable to Euronet
Worldwide, Inc. stockholders – diluted	$	0.85			$	0.55
Diluted weighted average shares outstanding	46,239,523				48,962,583

EURONET WORLDWIDE, INC.

Reconciliation of Net Income to Operating Income (Expense) to Adjusted Operating Income (Expense) and Adjusted EBITDA

(unaudited – in millions)

Three months ended March 31, 2025

“`# Financial Overview: Net Income and Operational Performance Highlights

**Company Financial Summary**

The following report provides an in-depth look at the financial performance of the company, including net income, tax expenses, and operating income across various segments.

**Net Income Analysis**

The net income reported stands at **$38.4** million. This figure is critical as it reflects the bottom line health of the company in its current fiscal period.

– **Add: Income Tax Expense**
The income tax expense for this period is **$7.1** million, indicating the tax obligations accrued by the company.

– **Add: Total Other Expense, Net**
A total of **$29.7** million is recorded for total other expenses, impacting the overall financial performance.

**Operating Income Overview**

Delving deeper, operating income presents a mixed picture across different categories:

– **Operating Income (Expense)**
The operating income reported is summarized as follows:
– **Overall**: $23.3 million
– **Epay Segment**: $26.8 million
– **Money Transfer Segment**: $45.1 million
– **Corporate Services Segment**: ($20.0 million)

This distribution indicates varying levels of operational efficiency among departments, with the Money Transfer segment performing the strongest.

**Adjustments for Depreciation and Amortization**

Finally, adjustments for depreciation and amortization add significant figures to the raw operating income:

– Depreciation and amortization for the three segments are recorded as follows:
– **Epay**: $24.3 million
– **Money Transfer**: $1.6 million
– **Corporate Services**: $6.1 million

These figures provide critical insights into the asset usage and future financial obligations of the company.

In summary, the financial report underscores a strong operational performance in the Money Transfer segment while highlighting areas within Corporate Services that require close attention for improving efficiency.# Q1 2024 Financial Report: Key Figures and Highlights Released

## Overview of Financial Performance

The financial results for the three months ended March 31, 2024, have been recently released by the company. The report includes vital data on various segments and overall performance.

## Key Financial Metrics

### Adjusted EBITDA Analysis

– **Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization, and Share-based Compensation)** showed a strong performance:
– **EFT Processing**: $47.6 million
– **epay**: $28.4 million
– **Money Transfer**: $51.3 million
– **Corporate Services**: $(8.6) million
– **Consolidated Total**: $118.7 million

### Income Contributions

The major income contributors for the period include:

– **EFT Processing** and **Money Transfer** services, which demonstrated robust growth.

– The **epay** segment also performed well, while **Corporate Services** recorded a loss, impacting the overall consolidated figure.

### Share-Based Compensation Impact

Net income for the period reflected adjustments for share-based compensation, highlighting the company’s equity compensation strategy.

## Concluding Remarks

The financial report indicates a favorable outlook for the company’s operations across its various segments. Strong performances in EFT Processing and Money Transfer suggest potential growth trajectories for stakeholders to monitor in the coming quarters.

As this market continues to evolve, analyzing these financial outputs will provide crucial insights into performance trends and company strategies moving forward.# Analysis of Adjusted Operating Income: Financial Insights

## Overview of Financial Data

In reviewing the most recent financial data, several key figures stand out, highlighting the company’s performance metrics and expenses. The operating income (expense) figures reveal significant insights across various categories.

### Operating Income Breakdown

Operating income estimations are crucial for understanding the company’s core profitability. Notably, the data presents the following key figures:

– **Operating Income (Expense)**
– Current Period: $21.5
– Previous Period: $26.6
– Comparison Period: $37.2
– Adjusted Value: $(21.3)

Having these figures allows investors to gauge the company’s operational efficiency over different timeframes.

### Income Tax and Other Expenses

The financial data also reflects additional critical elements impacting the overall income, including:

– **Add: Income Tax Expense**
– Amount: $16.0

– **Add: Total Other Expense, Net**
– Amount: $21.8

These values add layers to the financial performance, emphasizing the impact of non-operational expenses on overall profitability.

### Adjusted Operating Income Insights

Adjustments to operating income are integral to understanding the underlying financial health of the company. The adjusted operating income figures provide a clearer perspective:

– **Adjusted Operating Income**
– Current Period: $21.1
– Comparison Period: $26.6
– Analysis of Adjustments:
– Non-cash purchase accounting adjustment reflects an impact of $(0.4).

The adjusted operating income offers a vantage point on how external factors and accounting decisions might alter the perceived profitability.

### Depreciation and Amortization Contributions

Lastly, depreciation and amortization play a crucial role in the financial landscape of the company:

– **Add: Depreciation and Amortization**
– Current Period: $23.6
– Previous Period: $1.7

These figures underscore the importance of asset management and depreciation strategies in long-term financial reporting.

Overall, reviewing these financial elements thoroughly provides insights into the company’s operating efficiency, expense management, and overall financial trajectory. Investors and stakeholders can utilize this detailed analysis for informed decision-making moving forward.

Euronet Worldwide Reports Financial Results for Q1 2025

7.3				0.1				32.7
Add: Share-based compensation	—				—				—				12.5
Earnings before interest, taxes, depreciation, amortization, and share-based compensation, non-cash purchase accounting adjustment (Adjusted EBITDA)	$	44.7			$	28.3			$	44.5			$	(8.7)		$	108.8

⁽¹⁾ Adjusted operating income and Adjusted EBITDA are non-GAAP measures that should be considered in addition to, and not a substitute for, net income computed in accordance with U.S. GAAP.

EURONET WORLDWIDE, INC.
Reconciliation of Adjusted Earnings per Share
(unaudited – in millions, except share and per share data)
	Three Months Ended
	March 31,
	2025				2024
Net income attributable to Euronet Worldwide, Inc.	$	38.4			$	26.2

Financial Performance Analysis: Currency Losses and Adjusted Earnings

Foreign currency exchange loss	18.1				12.5
Intangible asset amortization(1)	4.5				5.5
Non-cash purchase accounting adjustment(2)	—				(0.4)
Share-based compensation(3)	11.3				12.5
Income tax effect of above adjustments(4)	—				0.6
Non-cash investment gain(5)	(3.0)				—
Non-cash GAAP tax expense (benefit)(6)	(19.3)				2.5
Adjusted earnings(7)	$	50.0			$	59.4
Adjusted earnings per share – diluted(7)	$	1.13			$	1.28
Diluted weighted average shares outstanding (GAAP)		46,239,523			48,962,583
Effect of adjusted EPS dilution of convertible notes		(2,347,536)				(2,781,818)
Effect of unrecognized share-based compensation on diluted shares outstanding		371,757

Financial Overview for March 2025 Quarter: Key Highlights

Adjusted diluted weighted average shares outstanding		44,263,744			46,535,984
		355,219

(1) Intangible asset amortization of $4.5 million and $5.5 million are included in the total depreciation and amortization expense of $32.2 million and $32.7 million for the three-month periods ending March 31, 2025 and 2024, respectively, as reported in the consolidated statements of operations.

(2) A non-cash purchase accounting expense adjustment of $0.4 million appears in the operating income for the three months ending March 31, 2024, in the consolidated statement of operations.

(3) Share-based compensation of $11.3 million and $12.5 million is reflected in the salaries and benefits expense of $164.1 million and $154.7 million for Q1 2025 and Q1 2024, respectively, within the consolidated statements of operations.

(4) Adjustments include the aggregate U.S. GAAP income tax effects on the previously mentioned adjustments, calculated using the applicable statutory U.S. federal, state, and/or foreign income tax rates.

(5) A non-cash investment gain totaling $3.0 million is included in other income within the consolidated statement of operations.

(6) This adjustment accounts for the non-cash GAAP tax impact recognized on certain items, which includes the use of specific material net deferred tax assets and the amortization of indefinite-lived intangible assets.

(7) Adjusted earnings and adjusted earnings per share are non-GAAP measures. These should be assessed in conjunction with, and not as replacements for, net income and earnings per share computed following U.S. GAAP.

This article provides a detailed overview of financial performance metrics, emphasizing significant adjustments in revenue and expenses. Stakeholders are encouraged to consider these adjusted figures for a more nuanced understanding of the company’s financial standing.

The views expressed herein represent the author’s perspective and do not necessarily reflect those of Nasdaq, Inc.