EEFT

• Digital Accelerator Strategy

  • Digital accelerators are the company's primary growth driver, outperforming the 23% full-year growth target laid out at Investor Day 2026, with 31% Q2 YoY growth and 35% year-to-date YoY growth.
  • The segment is expected to remain the fastest-growing revenue category and core driver of long-term earnings and shareholder value creation.

• Payments Infrastructure Updates

  • Launched a merchant acquiring referral program in Greece following the Credia Bank Merchant Services acquisition, adding 4,200 new merchants in Q2.
  • Secured major CoreCard wins: a credit card processing agreement with US digital banking platform UpGrade, and a multi-year modernization contract with Peru's leading financial processor Unibanca (displacing the incumbent processor). CoreCard's scalable consumer and commercial credit capabilities, combined with Euronet's broader REN payment platform, were key to winning this deal, which services 9 Peruvian banks.
  • Signed an online merchant acquiring agreement with Asia-Pacific leading acquirer NTT Data, and a new IAD network sponsorship agreement with a Costa Rican bank to expand in the cash-rich market.

• ePay Updates

  • Completed integration of Visa and MasterCard acquiring across all 4,000+ DM health and beauty stores across 14 European countries, becoming the exclusive retail POS processor for these networks, building on an existing relationship for alternative payment methods.
  • Advanced the direct-to-publisher strategy for digital game distribution: signed a direct distribution agreement with tier-one Japanese publisher Capcom for European markets, added distribution agreements for Roblox and Riot products with Yahoo and Rakuten in Japan, and launched major gaming content on India's Stanverse platform.
  • Early demand for Grand Theft Auto 6 pre-orders has already driven higher sales of gaming credits, reinforcing confidence in gaming as a high-growth category.
  • Real money gaming platforms Markertrax and CoinDirect reached key milestones: Markertrax is certified with most US casino management systems (full certification expected by year-end), and CoinDirect was selected as a white-label solution by a major global gaming technology firm.

• Cross-border Payments Updates

  • REIA Digital grew digital transactions 33% YoY (4th consecutive quarter of >30% growth), with over 90% of volume from repeat customers. Increased digital marketing spend by $3 million in Q2 to support customer acquisition.
  • Expanded the Dandelion network: added MasterCard Move as a new partner (service going live Q4 2026) plus 5 additional new partners.
  • Launched new digital partnerships: integrated money transfer into Uber's UK driver app, launched instant payments product BRIBI in Colombia, and added 4 new banking partners to expand wallet payout capabilities in Nigeria.

• Capital Allocation

  • Repurchased 705,000 shares for $50 million in Q2 2026. Share repurchases remain a core capital allocation priority, funded by operating free cash flow.

• Full-year 2026 adjusted EPS growth guidance is maintained at 10-15%, unchanged from prior outlooks.
• Overall full-year revenue growth guidance remains approximately 6%, unchanged from the Investor Day target; stronger-than-expected digital accelerator growth offsets weaker performance in non-accelerator segments.
• Management expects quarterly earnings to become more evenly distributed throughout the year as the digital growth strategy rebalances the historical quarter mix, with Q2 and Q3 expected to represent a smaller share of annual earnings than in prior years.

Consolidated: Total Q2 2026 revenue was $1.1 billion, operating income was $137 million, adjusted EBITDA was $193 million, and adjusted EPS was $2.82 (10% YoY growth). Free cash flow for the quarter was approximately $80 million. Digital accelerators (across all segments) represented 26% of total year-to-date company revenue, grew 31% YoY in Q2 and 35% YoY year-to-date.

1. Payments Infrastructure (formerly EFT): Driven by merchant acquiring expansion, interchange increases in some markets, and the 2025 Q4 CoreCard acquisition. Revenue grew YoY. Operating income increased 2% YoY, adjusted EBITDA increased 6% YoY. Excluding non-cash purchase accounting amortization ($4.7 million), operating income would have risen 7% YoY. Cost inflation partially offset growth gains.

2. ePay: Revenue grew 4% YoY, operating income and adjusted EBITDA each grew ~5% YoY. Growth was driven by higher-value digital content and merchant acquiring expansion. Transaction volume fell 11% YoY due to a shift away from low-value transactions in Asia-Pacific, but this had minimal impact on revenue and profits.

3. Cross-border Payments (formerly money transfer): Revenue declined 5% YoY, driven by lower U.S. to Mexico remittance volumes (due to U.S. immigration policy pressures) and tough comparables to Q2 2025, which benefited from non-recurring high-margin items (a fee rebate in Pakistan and favorable one-off FX opportunities) that did not repeat in 2026. Operating income declined 35% YoY, adjusted EBITDA declined 32% YoY. Approximately 60% of the declines came from lower revenue/gross profit, and 25% came from incremental investment in digital accelerator growth initiatives. Strong growth in REIA Digital partially offset the declines.

• U.S. immigration policies have reduced outbound remittance volumes from the U.S. to Mexico, resulting in the first annual decline in the broader U.S. outbound remittance market in over a decade, driving softer-than-expected results for the cross-border payments segment.
• Softness in global travel: U.S. to Europe airline bookings are 5-8% below 2025 peak levels, and European consumers are more selective with discretionary travel spending, leading to softer-than-expected ATM transaction volumes early in the 2026 travel season.
• Ongoing cost inflation across global markets puts pressure on operating margins across business segments.
• Higher current Euro borrowing rates are expected to increase full-year 2026 interest expense by approximately $6 million compared to 2025.
• Smaller cross-border payment operators are facing market stress amid the current slowdown, creating some pricing pressure in the industry.

Q: Digital accelerator revenue is up 35% year-to-date, well above the 23% 2026 guidance. Is this due to lapping the CoreCard acquisition, conservative guidance, or another factor? / A: Lapping the CoreCard acquisition is the biggest factor. Management also intentionally set conservative guidance at Investor Day, and digital accelerators have outperformed even internal expectations, so the team is pleased with current growth momentum.

Q: What initiatives is Euronet pursuing to return cross-border payments to growth amid the current U.S. to Mexico volume slowdown? / A: The company is increasing digital marketing investment (an extra $3 million in Q2) focused on the high-growth digital channel, which is already delivering strong results. Management notes that marketing investments typically take 1-2 quarters to generate revenue, so benefits will likely appear in Q3 and Q4. The team will remain disciplined to avoid overspending in the currently weak overall market, while continuing to accelerate digital expansion.

Q: The CoreCard win in Peru was very encouraging. Are you seeing similar CoreCard-driven wins in other markets, and how is the acquisition performing overall? / A: Management has been pleasantly surprised by how quickly CoreCard is driving new wins: multiple deals have already closed just 6-8 months after acquisition, with many more in the pipeline. CoreCard's strong product, combined with Euronet's broader REN platform capabilities (ATM outsourcing, real-time payments, Dandelion cross-border services), creates a full-suite offering that wins deals against incumbents. The Unibanca deal also provides a key regional reference in Latin America, a market largely underserved by modern processing technology, opening up more regional opportunity.

Q: Euronet has already hit the full-year 2026 $125-$150 million share buyback target in the first half. How does management view additional buybacks in the second half? / A: The current 10-15% adjusted EPS guidance does not include incremental buybacks beyond the original target. However, management still views share repurchases as an attractive use of free cash flow and maintains a positive outlook for additional buybacks going forward.