Euronet Worldwide (NASDAQ:EEFT) reported second-quarter 2026 adjusted earnings per share of $2.82, up 10% from a year earlier, as growth in its digital payment initiatives helped offset softer cross-border remittance activity and weaker-than-expected ATM transactions during the travel season.
Chairman and CEO Mike Brown said the company recorded its fifth consecutive quarter of double-digit adjusted earnings growth. Revenue from Euronet’s “digital accelerators” rose 31% year over year in the second quarter and 35% year to date, exceeding the 23% long-term growth framework management outlined at its May investor day.
Quarterly Results and Capital Returns
CFO Rick Weller said Euronet generated $1.1 billion in revenue, $137 million in operating income and $193 million in adjusted EBITDA during the quarter. The company produced about $80 million in free cash flow and repurchased approximately 705,000 shares for $50 million.
Weller said operating income included $4.7 million in additional non-cash purchase-price amortization associated with the CoreCard acquisition and $1.9 million in additional non-cash share-based compensation. Excluding those items, operating income would have declined 9%, largely because of lower cross-border payments volume.
The company ended the quarter with $1.2 billion in unrestricted cash and nearly $1 billion of cash deployed in its ATM network. Total debt was $2.7 billion. Euronet settled its €700 million bonds near the end of May, increasing second-quarter interest expense by about $1.3 million from the prior year. Weller said the refinancing is expected to add approximately $6 million in interest expense for the remainder of 2026 versus the prior year, based on current euro borrowing rates.
Management reiterated its expectation for full-year adjusted EPS growth of 10% to 15%. Weller said quarterly earnings are expected to be more evenly distributed through the year as digital businesses become a larger component of the company’s mix.
Payments Infrastructure and CoreCard Momentum
Euronet’s payments infrastructure segment benefited from merchant-acquiring expansion, higher interchange in certain markets and the contribution from CoreCard, which the company acquired in the fourth quarter of 2025. Segment operating income rose 2%, while adjusted EBITDA increased 6%. Excluding CoreCard-related purchase accounting amortization, operating income would have increased 7%, Weller said.
Brown highlighted several commercial developments, including 4,200 new merchant additions during the quarter and a merchant-acquiring referral program in Greece following the previously announced acquisition of CrediaBank’s merchant-services business.
The company also signed credit-card processing agreements with Upgrade, a U.S. digital banking platform, and Unibanca, a Peruvian financial processor serving nine banks. Brown said CoreCard was central to winning the Unibanca mandate, which will replace an incumbent processor and use CoreCard’s credit-issuing architecture alongside Euronet’s broader Ren payments platform.
During the question-and-answer session, Brown said Euronet had expected CoreCard deals to take roughly 18 months to close after the acquisition, but the company has already signed five or six agreements and has additional opportunities in its pipeline. He described Latin America as a market using aging technology and said the Unibanca agreement could provide an important regional reference customer.
epay Expands Digital Distribution
In epay, revenue grew 4%, while operating income and adjusted EBITDA each increased about 5%. The results reflected growth in higher-value digital content and merchant acquiring. Transactions fell about 11% because of changes in low-value activity in Asia-Pacific, which Weller said had minimal impact on revenue and profit.
Euronet completed the integration of Visa and Mastercard acquiring across more than 4,000 dm health and beauty stores in 14 European countries. The company is now the exclusive retail point-of-sale processor for Visa and Mastercard at dm stores across Europe, building on existing processing relationships for Alipay, PayPal, Apple Pay, Google Pay and girocard.
The company also signed a direct distribution agreement with Capcom to distribute its content across Europe. In Japan, epay reached agreements with Yahoo and Rakuten to distribute Roblox and Riot products, while it launched Google Play, Xbox, Riot and PlayStation products on the Stanverse gaming platform in India.
Brown said pre-orders for Grand Theft Auto VI opened in late June, driving an immediate increase in sales of PlayStation and Xbox gaming credits. He said Euronet was not forecasting results tied to a single game but views large releases as supporting extended digital spending through content, online play, subscriptions and in-game purchases.
Cross-Border Payments Face Remittance Pressure
Cross-border payments revenue declined 5%, while operating income and adjusted EBITDA fell 35% and 32%, respectively. Management attributed the results primarily to lower U.S.-to-Mexico remittance volumes amid U.S. immigration enforcement, along with difficult comparisons to the prior year’s non-recurring Pakistan fee rebate and favorable foreign-exchange opportunities.
Weller said about 60% of the segment’s operating-income and EBITDA declines were related to lower revenue and associated gross profit. About 25% reflected higher sales and marketing investments intended to support digital growth.
Ria Digital remained a bright spot, with transactions rising 33% and revenue rising 35%. More than 90% of its transaction volume came from repeat customers, Brown said. Euronet increased digital marketing spending by roughly $3 million during the quarter to support customer acquisition, with Brown saying the revenue benefits from that spending may be more visible in subsequent quarters.
The company added Mastercard Move and five other Dandelion partners during the quarter. The Mastercard Move service is expected to launch in the fourth quarter with volumes ramping through a phased rollout. Euronet also launched an agreement integrating Ria Money Transfer into Uber’s U.K. driver app, introduced instant payments in Colombia through BriQ, and added four Nigerian banking partners for wallet payouts.
Management said it saw signs that remittance conditions and European travel demand improved somewhat entering the third quarter, though it characterized the outlook as cautious. Brown and Weller also said Euronet plans to increase focus on XE’s cross-border payment offering for individuals and small businesses during the second half of the year.
About Euronet Worldwide (NASDAQ:EEFT)
Euronet Worldwide, Inc is a global financial technology company specializing in electronic payment services and transaction processing. Through its three primary business segments—Electronic Funds Transfer (EFT) Network Services, epay® Prepaid and Payment Services, and Money Transfer—Euronet provides end-to-end solutions that enable secure, efficient and convenient payments for consumers, financial institutions and retailers worldwide.
In its EFT Network Services arm, Euronet operates one of the world’s largest ATM and point-of-sale (POS) terminal networks, offering deployment, management and connectivity services.
