Euronet Q2 Earnings Fall Short of Estimates on Elevated Expenses

Shares of Euronet Worldwide, Inc. EEFT have lost 4.7% since it reported second-quarter 2025 results on July 31. The weaker-than-expected quarterly results were affected by a decline in intra-U.S. transactions and an increased expense level. However, rising transaction volumes, a strong global payment network, and growth in digital payments and cross-border transactions partially offset the negatives.

Euronet reported second-quarter 2025 adjusted earnings per share of $2.56, which missed the Zacks Consensus Estimate by 2.7%. The bottom line rose 14% year over year.

Total revenues improved 9% year over year and 6% on a constant-currency basis to $1.1 billion. However, the top line missed the consensus mark by 0.1%.

Euronet Worldwide, Inc. Price, Consensus and EPS Surprise

Euronet Worldwide, Inc. price-consensus-eps-surprise-chart | Euronet Worldwide, Inc. Quote

EEFT’s Q2 Update

EEFT’s net income was $97.6 million, which rose 17.4% year over year. Operating income climbed 18% year over year and 13% on a constant-currency basis to $158.6 million.

Total operating expenses of $915.7 million increased 7.5% year over year due to higher direct operating costs, salaries and benefits, and selling, general and administrative expenses.

Adjusted EBITDA improved 16% year over year and 11% on a constant-currency basis to $206.2 million.

EEFT’s Segmental Performances

The EFT Processing segment’s revenues rose 11% year over year and 6% on a constant-currency basis to $338.5 million in the second quarter. However, the metric was lower than the Zacks Consensus Estimate of $340.5 million.

Adjusted EBITDA was $110.6 million, which advanced 5% year over year and remained constant on a constant-currency basis.

Operating income grew 6% year over year and 1% on a constant-currency basis to $84.6 million.

Rising transaction volumes across most markets, added access fees and interchange fees and expansion into new markets benefited the unit’s performance.

The epay segment recorded revenues of $280.1 million, which grew 7% year over year and 5% on a constant-currency basis. The metric beat the consensus mark of $279.3 million.

Adjusted EBITDA rose 17% from the year-ago figure and improved 15% on a constant-currency basis to $32.8 million.

Operating income was $31.1 million, which advanced 19% year over year and 17% on a constant-currency basis. Transactions in the unit totaled 1,107 million, which remains consistent year over year.

The segment’s quarterly results benefited from improved digital branded payment and a shift in product mix.

The Money Transfer segment posted revenues of $457.9 million, which rose 9% year over year and 6% on a constant-currency basis. The metric surpassed the Zacks Consensus Estimate of $456.8 million.
Adjusted EBITDA advanced 33% year over year and 28% on a constant-currency basis to $71.6 million.

Operating income of $65.6 million improved 39% year over year and 33% on a constant-currency basis. Total transactions grew 4% year over year to 46.1 million as a result of higher cross-border transactions, expansion of the global payment network and direct-to-consumer digital transactions. However, the upside was partly offset by lower intra-U.S. transactions.

Corporate and Other expenses rose to $22.7 million year over year from $19.1 million.

EEFT’s Financial Update (As of June 30, 2025)

Euronet exited the second quarter with cash and cash equivalents of $1.3 billion, which increased 3.9% as of Dec. 31, 2024.

Total assets of $6.6 billion increased from $5.8 billion at 2024-end.

Debt obligations, net of the current portion, amounted to $1 billion, down from $1.1 billion as of Dec. 31, 2024. Short-term debt was $1.4 billion.

Equity increased to $1.4 billion from the 2024-end figure of $1.2 billion.

There was roughly $884.2 million left under EEFT’s revolving credit facilities at the second-quarter end.

EEFT Reaffirms 2025 Bottom-Line View

Management has reaffirmed its estimates, achieving adjusted EPS growth in the 12-16% range in 2025.

EEFT’s Zacks Rank & Other Key Picks

EEFT currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader finance space are Virtu Financial Inc VIRT, Marex Group PLC MRX and Acadian Asset Management Inc. AAMI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Virtu Financial’s current-year earnings of $4.53 per share has witnessed four upward revisions in the past 30 days against none in the opposite direction. Virtu Financial beat earnings estimates in each of the trailing four quarters, with the average surprise being 14.9%. The consensus estimate for current-year revenues is pegged at $1.9 billion, implying 18.9% year-over-year growth.

The Zacks Consensus Estimate for Marex Group’s current-year earnings of $3.52 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Marex Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.3%. The consensus estimate for current-year revenues is pegged at $1.8 billion, calling for 12.4% year-over-year growth.

The Zacks Consensus Estimate for Acadian Asset Management’s current-year earnings is pegged at $3.18 per share, implying 15.2% year-over-year growth. In the past 60 days, Acadian Asset Management has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $560.8 million, calling for 10.9% year-over-year growth.

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