EEFT · Euronet Worldwide, Inc.

Euronet Worldwide's first quarter 2026 results demonstrate strong operational execution, particularly within its digital and processing segments, navigating a challenging geopolitical environment. The standout performance came from the Money Transfer segment's digital arm (Ria Digital), which posted 42% revenue growth and 35% transaction growth, validating the Company's strategic pivot toward digital channels. This digital momentum, combined with the consolidation of the CoreCard acquisition completed in late 2025, helped drive consolidated revenue up 11% to $1.01 billion. However, GAAP profitability metrics faced headwinds; operating income declined 4% due to a $5 million non-cash purchase price amortization related to CoreCard and a $3.5 million increase in share-based compensation. Consequently, GAAP diluted EPS fell slightly to $0.83 from $0.85 in the prior year. Excluding these and other non-cash items, Adjusted EPS surged 40% to $1.58, signaling robust underlying profitability. The EFT Processing segment also contributed meaningfully, with revenue up 27% (19% in constant currency), driven by acquiring growth and REN infrastructure sales. Conversely, the epay segment saw modest constant currency revenue growth of 2%, though operating income improved due to the absence of a prior-year tax charge. The Money Transfer segment faced macro pressures, specifically immigration reform impacting US-to-Mexico corridors and reduced Middle East volume, leading to a 4% constant currency revenue decline. Despite these mixed segment dynamics, management expressed confidence in the full-year outlook, reiterating 10-15% adjusted EPS growth targets. The balance sheet remains leveraged with total debt increasing to $2.56 billion, partially offset by robust cash generation and the $100 million share repurchase executed during the quarter.