Euronet Worldwide, Inc. Q1 FY2026 earnings call

• Mike Brown noted first quarter 2026 was a solid start, broad-based strength drove 19% growth in adjusted EPS, with highlights like 35% growth in RIA digital transactions, 42% growth in new digital customers, 2,300 new merchants in merchant acquiring, Dandelion's strongest quarter, and three EFT payment infrastructure deals. • EFT team expanded banking and payments infrastructure, with key agreements in Austria, Poland, Latin America, and cross-sell in Ecuador, and acquisition of PenoPain in Spain. • ePay continued expanding digital content distribution, with extensions in Brazil, Mexico, B2B agreement with Apple, content distribution with Roblox in Japan, and alternative payment initiatives. • Money transfer segment made progress despite external factors, with digital transaction growth, new customer growth, and expansion of Dandelion network, highlighting global cross-border payments network reach.

EFT segment: Delivered strong revenue growth in Q1 2026 with constant currency revenues increasing 19%, driven by double-digit growth in REN and merchant acquiring, certain interchange rate increases, and full quarter inclusion of core card acquisition. Adjusted EBITDA increased 12%. Operating income relatively flat due to non-cash purchase price amortization. ePay segment: Revenue increased 2% on constant currency basis, operating income rose 13%, adjusted EBITDA increased 12%. Money transfer segment: Revenue declined 4% on constant currency basis, operating income $38.9 million, adjusted EBITDA $45 million, both down year over year. Digital transactions grew 35%, new digital customers 42%, network locations expanded 4%.

• Expect to deliver adjusted EPS growth in the 10 to 15% range for the full year 2026. • As digital initiatives deliver results, see accelerating adoption across the business, driving mix shift and operating leverage. • Balance sheet and cash generation strong, providing flexibility to execute and confidence in full-year outlook.

• Headwinds from immigration policy, ongoing economic pressures, and conflict in the Middle East introduced volatility, most pronounced in money transfer segment. • Uncertainty in macro environment and geopolitical events affecting business performance, such as pressure on U.S. retail business to countries south of the border due to immigration policy and impact from Middle East conflict on parts of the business.

Q: Vasu Gobal asked about contribution from core card vs organic growth in EFT segment.

A: Core Card contributed about $30 million revenue, 40% of which was card stock purchases at almost no margin.

Q: Vasu Gobal asked about U.S.-Mexico corridor headwinds and Middle East trends in April.

A: April is first month of new quarter, environment is choppy with many unknowns, but digital business growing well.

Q: Raina Kumar asked about increasing physical locations in money transfer and CoreCard pipeline.

A: Expect to continue adding physical locations as some prefer to transact that way, and CoreCard has strong pipeline with many deals in process.

Q: Raina Kumar asked about interest expense for rest of year.

A: About $700 million Euro bond matures in May, expect to finance with higher interest costs.

Q: Pete Heckman asked about ATMC frameworks and Poland interchange rates.

A: All deals move needle upwards, 15 countries have implemented formal ATM cash access frameworks, changes support accessible ATM networks.

Q: Gustavo Gala asked about investor day and structural actions.

A: Board considers anything, but digital initiatives and growth drivers are strong, not planning aggressive structural actions yet.

Q: Mike Grundahl asked about REN and merchant acquiring growth drivers and effect of $100 oil.

A: REN grows due to modern technology and adding product functionality, no direct effect of $100 oil seen yet.

Q: Josh Levin asked about reconciling Middle East comments with competitor and stablecoin unit economics.

A: Middle East impact country-specific, stablecoin gives treasury float advantage.

Q: Chris Kennedy asked about Dandelion's strong quarter and gross margin sustainability in money transfer.

A: Dandelion has strong growth with momentum building, gross margin sustainability due to network strength and volume.

Q: Darren Peller asked about margin structure and Iran conflict impact on EFT.

A: Expect margin to be back-end loaded, Iran conflict so far has no visible impact on EFT, but potential travel impacts possible.