10-Q · May 7, 2026
Euronet Worldwide reported a strong Q1 2026, with significant revenue growth of approximately 10.1% year-over-year, reaching $1.014 billion, and an EPS of $1.58, surpassing analyst expectations. The company exhibited a…
Earnings analysis · 10-Q
EEFT earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Euronet delivered 3% year-over-year revenue growth to $1.1084 billion, with Payments Infrastructure and epay growth offsetting a 4% Cross-Border Payments decline. However, consolidated operating income fell 14% to…
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Euronet delivered 3% year-over-year revenue growth to $1.1084 billion, with Payments Infrastructure and epay growth offsetting a 4% Cross-Border Payments decline. However, consolidated operating income fell 14% to $137.1 million, net income declined 21% to $77.4 million, and reported EPS of $2.82 was below the $2.91 consensus estimate. The key investment issue is whether 33% digital C2C growth and network expansion can overcome retail-remittance pressure from U.S. immigration policy and the 1% remittance tax, while cash conversion recovers from unfavorable working-capital timing.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.82
What stood out
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Revenue returned to sequential growth
Q2 revenue was $1.1084 billion, up $34.1 million (3%) from $1.0743 billion a year earlier and above Q1 2026 revenue of $1.01 billion. Growth in Payments Infrastructure and epay more than offset a $18.3 million decline in Cross-Border Payments.
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Payments Infrastructure delivered 11% growth
Payments Infrastructure revenue increased $38.6 million (11%) to $377.1 million, supported by merchant acquiring, REN infrastructure sales and the CoreCard acquisition. Transactions processed rose to 4.279 billion from 3.723 billion, while segment gross margin improved to 49.4% from 48.6%.
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epay mix lifted margins
epay revenue rose $13.9 million (5%) to $294.0 million and operating income increased $1.7 million (5%) to $32.8 million. Gross margin expanded 100 basis points to 25.7% as higher-value digital-content and branded-payment mix offset an 11% transaction-volume decline.
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Liquidity capacity remains substantial
The company reported $1.1998 billion of unrestricted cash and $993.2 million of unused committed Credit Facility capacity at June 30, 2026. Working capital increased to $1.1748 billion from $415.5 million at December 31, 2025.
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Lower interest expense and buybacks
Interest expense declined $7.6 million (27%) year over year to $20.6 million, following the shift of borrowing from the Credit Facility to 0.625% 2030 Convertible Notes. The company also repurchased 706,299 shares for $70.79 per share in Q2.
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Digital remittances offset retail weakness
Digital C2C transactions in Cross-Border Payments increased 33%, and the segment expanded its global network by 3%, partially mitigating weaker retail remittance activity.
What to watch
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Remittance headwinds drove CBP profit decline
Cross-Border Payments revenue fell $18.3 million (4%) to $439.6 million and operating income dropped $22.3 million (34%) to $43.3 million. Management cited the 1% U.S. remittance tax, immigration-policy changes, Middle East pressures, inflation, weaker higher-margin corridors and competitive pricing.
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Profitability and tax rate deteriorated
Consolidated operating income declined $21.5 million (14%) to $137.1 million and net income attributable to Euronet fell $20.2 million (21%) to $77.4 million. Operating margin was 12.4%, down from approximately 14.8% a year earlier, while the effective tax rate rose to 37.6% from 25.6%.
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Working capital reduced cash conversion
Six-month operating cash flow fell to $25.9 million from $184.6 million, while capital expenditures were $64.6 million, implying negative free cash flow of $38.7 million. The company attributed the operating-cash-flow decline primarily to unfavorable working-capital timing.
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Short-term funding and rate exposure
Total debt was $2.6708 billion at June 30, including $800.0 million of uncommitted facilities, approximately 30% of total debt, which lenders can demand, reduce or terminate. A 100-basis-point increase on the $811.4 million Credit Facility balance would add about $8.1 million of annual interest expense.
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No formal risk-factor update; Italy tax matter
No material changes to previously disclosed Item 1A risk factors were reported. Separately, Italian agency-relationship withholding-tax exposure has a possible principal amount of approximately €19.4 million for open periods, although management concluded a liability was reasonably possible rather than probable.
Management's outlook
No revenue or EPS guidance was provided in the 10-Q. Management estimated 2026 capital expenditures of approximately $145 million to $155 million and stated that cash from operations, cash on hand and available financing are anticipated to be sufficient for debt, lease and capital-expenditure obligations.
Earlier filings 4
10-K · February 26, 2026
Euronet’s 2025 10-K emphasizes rapid volume growth in its payments networks (EFT transactions rose to 15,534 million in 2025) and a strategic tilt toward real‑time and issuer-processing capabilities via the Oct 30, 2025…
10-Q · November 4, 2025
Euronet reported Q3 2025 revenue of $1,145.7 million, up $46.4 million versus Q3 2024, with operating income of $195.0 million (operating margin ~17.0%). Diluted EPS declined to $2.75 in Q3 2025 from $3.21 in Q3 2024.…
10-Q · November 4, 2024
Euronet reported Q3 revenue of $1,099.3 million (up from $1,004.0 million a year ago) with operating income of $182.2 million and diluted EPS of $3.21 (vs. $2.05 year-ago). Operating margin was effectively stable at…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.