Euronet's Q1 Earnings Meet Estimates on Money Transfer Unit Strength

Shares of Euronet Worldwide, Inc. EEFT have risen 4.4% since it reported first-quarter 2025 results on April 23. The quarterly results were aided by rising transaction volumes and global payment network strength. Growth in digital payments and cross-border transactions also contributed to the performance. However, the upside was partly offset by an elevated expense level and a decline in intra-U.S. transactions.

Euronet Worldwide reported first-quarter 2025 adjusted earnings per share of $1.13, which was in line with the Zacks Consensus Estimate. The bottom line declined 11.7% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Total revenues improved 7% year over year and 9% on a constant-currency basis to $915.5 billion. 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 Q1 Update

EEFT’s net income was $38.4 million, which rose 46.6% year over year. Operating income climbed 18% year over year and 22% on a constant-currency basis to $75.2 million.

Total operating expenses of $840.3 million increased 5.9% year over year due to higher direct operating costs, salaries and benefits, and selling, general and administrative expenses.

Adjusted EBITDA improved 9% year over year and 12% on a constant-currency basis to $118.7 million.

EEFT’s Segmental Performances

The EFT Processing segment’s revenues rose 7% year over year and 10% on a constant-currency basis to $232.5 million in the first quarter. However, the metric was lower than the Zacks Consensus Estimate of $238.4 million.

Adjusted EBITDA was $47.6 million, which advanced 6% year over year and 10% on a constant-currency basis. 

Operating income grew 8% year over year and 13% on a constant-currency basis to $23.3 million. Total transactions of 3,463 million improved 38% year over year. 

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 $267.4 million, which grew 4% year over year and 8% on a constant-currency basis. However, the metric fell short of the consensus mark of $268.6 million.

Adjusted EBITDA was consistent with the year-ago figure and improved 5% on a constant-currency basis to $28.4 million.

Operating income was $26.8 million, which advanced 1% year over year and 5% on a constant-currency basis. Transactions in the unit totaled 1,134 million, which surged 19% year over year.

The segment’s quarterly results benefited due to improved digital branded payment and mobile sales. 

The Money Transfer segment posted revenues of $417.7 million, which rose 9% year over year and 10% on a constant-currency basis. The metric surpassed the Zacks Consensus Estimate of $410.7 million.

Adjusted EBITDA advanced 15% year over year and 17% on a constant-currency basis to $51.3 million. 

Operating income of $45.1 million improved 21% year over year and 23% on a constant-currency basis. Total transactions grew 10% year over year to 44.6 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 fell to $20 million year over year from $21 million.

EEFT’s Financial Update (as of March 31, 2025)

Euronet exited the first quarter with cash and cash equivalents of $1.4 billion, which increased from $1.3 billion as of Dec. 31, 2024. 

Total assets of $6.1 billion increased from $5.8 billion at 2024-end. 

Debt obligations, net of the current portion, amounted to $1.9 billion, up from $1.1 billion as of Dec. 31, 2024. Short-term debt was $295.4 million.

Equity increased to $1.3 billion from the 2024-end figure of $1.2 billion.

There was roughly $623.1 million left under EEFT’s revolving credit facilities at the first-quarter end.

EEFT’s 2025 Bottom-Line View Reaffirmed

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

EEFT’s Zacks Rank & Key Picks

EEFT currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Finance space are Root Inc. ROOT, Atlanticus Holdings Corp ATLC and Heritage Insurance Holdings Inc. HRTG, 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 Root’s current-year earnings of 18 cents per share has witnessed one upward revision in the past month against none in the opposite direction. Root beat earnings estimates in each of the trailing four quarters, with the average surprise being 195.3%. The consensus estimate for current-year revenues is pegged at $1.3 billion, implying 9.2% year-over-year growth.

The Zacks Consensus Estimate for Atlanticus Holdings’ current-year earnings is pegged at $6.17 per share. It has remained stable over the past week. The consensus estimate for Atlanticus Holdings’ current-year revenues is pegged at $1.5 billion, suggesting 10.8% year-over-year growth.

The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $2.43 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 328.6%. The consensus estimate for current-year revenues is pegged at $870.2 million, calling for 6.5% year-over-year growth.

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