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Introduction & Market Context
Euronet Worldwide (NASDAQ:EEFT) reported record second-quarter 2025 results, achieving $1.07 billion in revenue despite falling short of analyst expectations. According to the company’s latest earnings presentation, Euronet posted a 9% year-over-year revenue increase (6% in constant currency), while its stock showed resilience with a modest pre-market increase of 1.01% following the announcement.
The financial services provider emphasized its ongoing strategic shift toward digital payment solutions, highlighted by the announcement of a $248 million all-stock acquisition of CoreCard (NYSE:CCRD), a leading provider of card management systems. This move aligns with Euronet’s long-term strategy of diversifying away from physical ATM operations toward higher-margin digital payment processing.
Quarterly Performance Highlights
Euronet’s second quarter showed strong growth across key financial metrics, with operating income reaching $158.6 million, representing an 18% increase year-over-year (13% in constant currency). Adjusted EBITDA grew 16% to $206.2 million, while adjusted earnings per share increased 14% to $2.56 compared to Q2 2024.
As shown in the following detailed financial breakdown from the presentation:
Despite these impressive figures, Euronet’s Q2 EPS of $2.56 fell short of analyst expectations of $2.66, representing a negative surprise of 3.76%. Similarly, the reported revenue of $1.07 billion missed the forecasted $1.08 billion.
The company’s performance varied across its three business segments, with Money Transfer showing particularly strong results. The segment-by-segment comparison reveals the company’s operational strengths:
The Money Transfer segment delivered the strongest performance with a 39% increase in operating income and 33% growth in adjusted EBITDA. The epay segment also performed well with a 19% increase in operating income, while EFT Processing showed more modest growth of 6% in operating income.
Strategic Initiatives
The centerpiece of Euronet’s strategic initiatives is the announced acquisition of CoreCard, which positions the company to expand its digital payments offerings and enter the credit card issuing market. The presentation highlighted the strategic rationale behind this acquisition:
This acquisition represents a significant step in Euronet’s digital transformation journey, providing access to marquee clients like Goldman Sachs and American Express while opening up cross-selling opportunities across Euronet’s existing markets. The company expects the deal to be accretive to adjusted EPS within the first 12 months after closing.
CoreCard’s modern credit card processing platform offers several competitive advantages that Euronet plans to leverage:
During the earnings call, CEO Mike Brown emphasized the company’s digital direction, stating, "We are moving in a strong strategic digital direction." He also highlighted the transformation of the epay business, noting, "Epay is not a cash business; it’s now nearly all digital payment transactions."
Detailed Financial Analysis
Euronet’s long-term revenue growth trajectory shows consistent expansion over the past decade, with a temporary dip during the pandemic in 2020, followed by a strong recovery and continued growth through 2025:
While revenue growth remains strong, the company’s balance sheet shows some changes worth noting. Total debt increased from $2,202.5 million as of March 31, 2025, to $2,438.1 million by June 30, 2025. Similarly, the net debt to trailing twelve-month adjusted EBITDA multiple increased from 1.2x to 1.5x during the same period.
Forward-Looking Statements
Euronet’s presentation revealed a clear strategic vision for transforming its revenue mix over time, with a continued shift away from ATM-based revenue toward digital services:
This transformation is projected to accelerate, with ATM-based revenue expected to decrease from 19% in 2024 to just 7% by 2034, while digital services grow to 93% of total revenue.
Looking forward, Euronet anticipates earnings growth of 12-16% for 2025, with the CoreCard acquisition expected to contribute positively to earnings. The company also highlighted several growth opportunities, including:
Despite these positive outlooks, investors should be aware of potential challenges identified in the earnings call, including market saturation in mature markets, macroeconomic pressures, technological integration challenges, varying regulations across its 200 operating countries, and competitive pressure in the digital payments sector.
Conclusion
Euronet’s Q2 2025 results demonstrate the company’s continued growth and strategic evolution toward digital payment solutions. While the company missed analyst expectations slightly, the record revenue and strong year-over-year growth across segments indicate operational strength. The CoreCard acquisition represents a significant strategic move that could accelerate Euronet’s digital transformation and open new revenue streams in the credit card processing market.
With a current stock price of $83.03 (as of October 14, 2025) and trading at a P/E ratio of 13.9x, Euronet appears positioned for continued growth as it executes its digital transformation strategy. Investors will be watching closely to see how successfully the company integrates CoreCard and capitalizes on cross-selling opportunities across its global footprint.
Full presentation:
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