Euronet Worldwide (EEFT) Q1 2025 earnings summary

Executive summary

• Achieved record first quarter results with revenue of $915.5 million, operating income of $75.2 million, and adjusted EBITDA of $118.7 million, with operating margin expanding by 80 basis points year-over-year.

• All business segments contributed to double-digit constant currency earnings growth, driven by global expansion, digital/cross-border transactions, and new market entries.

• Net income attributable to Euronet increased 47% to $38.4 million, with diluted EPS up to $0.85 from $0.55.

• Foreign currency fluctuations negatively impacted revenue by $21.9 million across segments.

• Reaffirmed full-year adjusted EPS growth guidance of 12%-16% for 2025, supported by a diversified global business model.

Financial highlights

• Q1 2025 revenue was $915.5 million, up 7% year-over-year (9% in constant currency), with adjusted operating income of $75.2 million and adjusted EBITDA of $118.7 million.

• Adjusted EPS was $1.13, impacted by a $0.20 one-time charge for convertible bond repurchase; prior year EPS of $1.28 included a $0.15 tax benefit.

• Net income rose to $38.4 million from $26.2 million year-over-year.

• Gross profit increased $31.2 million year-over-year, offset by higher salaries and SG&A.

• Net debt leverage remains conservative at about 1x EBITDA, with unrestricted cash at $1.39 billion and total debt at $2.2 billion.

Outlook and guidance

• Reaffirmed 2025 adjusted EPS growth guidance of 12%-16%, with continued double-digit growth expected from global expansion, product innovation, and technology investments.

• Management expects ongoing growth in digital and cross-border transactions, with inflationary pressures anticipated to increase expenses.

• Capital expenditures for 2025 are estimated at $85–$95 million, focused on ATM and POS expansion.

• Cash flow and available credit are expected to be sufficient to meet obligations and fund growth.

• FX rates assumed flat for guidance; any positive movement could provide a tailwind.