EURONET WORLDWIDE, INC. Q3 FY2025 earnings call

• Revenue of $1.1 billion, operating income of $195 million, adjusted EBITDA of $245 million, and adjusted earnings per share of $3.62 reported. - Revenue growth below expectations due to macroeconomic and immigration policy factors, but business model diversity, share repurchases, and expense management offset impacts. - Consolidated operating margins expanded by ~40 basis points. - EFT segment expansion in developing markets; Greece merchant services strong. - epay segment stable despite revenue decline due to business shift. - Money Transfer segment digital transactions growing, but impacted by immigration policies. - Strategic partnerships with Citibank, Fireblocks; CoreCard acquisition in progress; stablecoin initiatives planned for Q1 2026.

EFT Segment: Delivered revenues growing 5%, operating income and adjusted EBITDA each growing 4%. Driven by expansion in developing markets like Morocco, Egypt, Philippines; Greece merchant services had strongest quarter since 2002 with 33% year-over-year operating income growth. epay Segment: Revenue declined ~5% compared to prior year, but operating income increased 4% and adjusted EBITDA 2% due to shift in wholesale mobile top-up business; core digital content and payment processing remain stable. Money Transfer Segment: Revenue grew 1% year-over-year, but operating income and adjusted EBITDA decreased 2% and 1% respectively. Driven by 32% increase in direct-to-consumer digital transactions, but impacted by immigration policy and economic uncertainty.

• Reaffirmed earnings growth expectation of 12% to 16% for 2025. - Expect Q4 to finish the year with year-over-year earnings growth generally similar to the third quarter.

• Macro-economic uncertainty impacting revenue across segments. - Immigration policy changes negatively affecting Money Transfer segment. - Currency fluctuations impacting financial results. - Challenges in expanding into certain markets due to need for sponsor banks and regulatory approvals.

Q: Vasu Govil asked about slight softness in EFT segment, unpacking if weakness was in ATM business, merchant acquiring, transaction slowdown or value slowdown.

A: Michael Brown said softness seen more in ATMs due to people being careful with vacation spend; merchant acquiring growing but ATM business affected by people spending less.

Q: Vasundhara Govil asked about Money Transfer segment exit run rate, changes in October.

A: Michael Brown said it's choppy, October smelling better but cautious; bucking industry trend as usual.

Q: Gustavo Gala asked about pricing in Money Transfer, return to rational environment.

A: Rick Weller said pricing generally consistent, with some pockets in certain markets, but net-net no meaningful adverse impact in Q3.

Q: Gustavo Gala asked about digital penetration in Money Transfer.

A: Michael Brown said goal to get growth rate higher than 32%, with digital transactions at 16% of total, and omnichannel approach.

Q: Mike Grondahl asked about constant currency revenue Q4 2026, epay promotions.

A: Michael Brown said early indications in October show turnaround, but uncertain; epay business affected by discretionary spend.

Q: Mike Grondahl asked about CoreCard share issuance.

A: Rick Weller said ~2.3 million shares.

Q: Charles Nabhan asked about epay headwind, normalized growth rate.

A: Rick Weller said math roughly correct on headwind, epay growth affected by economic pressure in discretionary spend areas.

Q: Charles Nabhan asked about Money Transfer customer balance, confidence in moving past issues.

A: Rick Weller said based on macroeconomic perspectives, immigration needs in economies, expecting resumption of activity.

Q: Daniel Krebs asked about EFT Segment ATM growth by geography.

A: Rick Weller said heavier weighted towards non-European side; Michael Brown added non-European ATMs more profitable but harder to enter.

Q: Anthony Cyganovich asked about other corridors with softer Money Transfer growth, persistence of challenges.

A: Rick Weller mentioned Bangladesh, Pakistan, Turkey corridors; Michael Brown said Euronet can still generate double-digit EPS growth with multiple opportunities.