EURONET WORLDWIDE, INC. Q4 FY2025 earnings call

Chairman and CEO Michael J. Brown noted that the fourth quarter faced a challenging operating environment with immigration policy uncertainty and economic stress weighing on growth across segments. The EFT segment showed resilience, and the company delivered double-digit EPS growth in 2025, with an expectation of 10%-15% adjusted EPS growth in 2026. The company has over three decades of experience navigating various economic cycles. CFO Rick L. Weller mentioned that in the fourth quarter, consolidated revenue grew 1% on a constant-currency basis, adjusted operating income declined 6%, and adjusted EBITDA was flat. The EFT performed strongly, while epay was impacted by macro pressures and Money Transfer by immigration and macroeconomic factors. Money Transfer initiated an optimization process expected to boost operating margins in 2026. For the full year, revenue was $4.2 billion, adjusted operating income was $550 million, adjusted EBITDA was $743 million, and adjusted EPS was $9.61. The company is advancing digital strategies in all segments, with EFT moving from ATM focus to payments infrastructure, CoreCard acquisition expanding fintech areas, epay expanding distribution, and Money Transfer optimizing operations and investing in future growth.

EFT: In the fourth quarter of 2025, revenue grew 8%, adjusted operating income increased 12%, and adjusted EBITDA grew 13%. Money Merchant Services in the Greek business performed exceptionally well, with adjusted EBITDA up 32% year over year on robust transaction volumes and continued merchant expansion. The EFT business is evolving from a model historically centered on ATM ownership to one increasingly focused on payments infrastructure. epay: Revenue declined approximately 2% in the fourth quarter, while adjusted operating income decreased 7% and adjusted EBITDA declined 8% reflecting product mix shifts, continued investment in proprietary offerings, and macroeconomic pressures. However, the core digital content and payment processing businesses remain stable. The gaming-related branded payments business performed strongly in the fourth quarter, making up 37% of total branded payments margin. Full-year merchant payment processing revenue for epay grew 21%. Money Transfer: Revenue declined 1% year over year in the fourth quarter with adjusted operating income down 6% and adjusted EBITDA down 5%. Affected by macroeconomic and immigration-related dynamics, but overall remittance volumes saw modest growth in 2025. The global digital channel delivered 31% transaction growth and 33% revenue growth in the fourth quarter, including 33% new customer acquisitions in December.

Management anticipates adjusted earnings per share growth of 10% to 15% in 2026 based on the current operating trajectory and pipeline of growth initiatives, confident in delivering another year of double-digit earnings growth.

Immigration policy uncertainty and economic stress, especially among lower-income consumers, have weighed on growth across all segments. Macro-economic pressures impact the performance of different segments, such as the negative impact on Money Transfer from macroeconomic and immigration-related dynamics, and the effect of product mix shifts and macro pressures on epay.

Q: About macro issues and immigration, the 1% constant currency growth in Q4 2025 and real-time situation in January, A: Transfers to Mexico had fluctuations, with drops in summer but an increase in December, showing potential improvement trend but still in a difficult environment.

Q: Trigger factors for Money Transfer review and similar reviews in EFT or epay, A: Money Transfer review started about a year ago to optimize digital sales focus, etc., and EFT is continuously self-reviewing as it is moving from bricks and mortar to more digital.

Q: Merchant processing business growth and free cash flow prospects in 2026, A: Merchant processing business grows fast, with EFT and epay respective growths, and free cash flow in 2026 is expected to improve in line with EPS growth, used for supporting digital investments and acquisition opportunities.