Euronet Worldwide 2025 Q2 Earnings Misses Estimates as Net Income Grows 17.4%

Euronet Worldwide (EEFT) reported its fiscal 2025 Q2 earnings on Aug 7th, 2025. The company delivered mixed results, with total revenue up 8.9% year-over-year to $1.07 billion and net income growing 17.4% to $97.70 million, but adjusted earnings per share missed estimates. Management reaffirmed its full-year EPS guidance of 12% to 16% growth, maintaining confidence in core business performance and strategic momentum.

Revenue for Euronet Worldwide in the second quarter of fiscal 2025 rose 8.9% year-over-year to $1.07 billion, driven by robust performance across key segments. The EFT Processing unit delivered $338.50 million in revenue, benefiting from higher transaction volumes, expanded market access, and increased interchange fees. The epay segment posted $280.10 million, supported by improved digital branded payment solutions and a favorable product mix. The Money Transfer segment contributed $457.90 million, reflecting strong cross-border transaction growth and network expansion, despite lower intra-U.S. transaction volumes. Corporate Services, Eliminations and Other generated a negative $2.20 million, reflecting ongoing overhead and consolidation adjustments.

Euronet’s net income surged 17.4% to $97.70 million in Q2 2025, while earnings per share climbed 26.2% to $2.31, setting a new record high for fiscal Q2 net income. Despite these strong earnings, the company’s adjusted EPS of $2.56 fell short of the Zacks Consensus Estimate by 2.7%, signaling mixed market reception to the results.

The stock price of Euronet Worldwide has shown a downward trend following the earnings report, with a 0.58% decline on the latest trading day, a 6.67% drop over the past week, and a 12.82% decline month-to-date. These figures reflect investor caution in the wake of the earnings miss and mixed guidance.

A strategy of buying EEFT when revenues beat expectations and holding for 30 days underperformed significantly, with a return of -35.84% compared to a benchmark return of 75.56%. The strategy produced an excess return of -111.40% and a negative compound annual growth rate of -8.66%, highlighting the risks of short-term positioning. The maximum drawdown of 0% suggests the short holding period limited exposure to downside risks.

Euronet Chairman and Chief Executive Officer Michael J. Brown highlighted 13% constant currency operating profit growth and 112 basis point margin expansion as key accomplishments. He emphasized strategic progress through the acquisition of CoreCard, a leading credit card issuing platform, and a Ren agreement with one of the top three U.S. banks. These moves align with Euronet’s long-term goal of tapping into the $10 billion global issuing market, where the company sees significant margin potential.

Euronet reaffirmed its 2025 adjusted EPS guidance of 12% to 16% growth, excluding the impact of foreign exchange rates, interest rates, or unforeseen factors. This outlook reflects confidence in continued strong performance in digital payments, cross-border transactions, and strategic acquisitions.

On August 6th, 2025, Euronet reported Q2 2025 results that fell short of estimates, with shares down 4.7% since the July 31 earnings release. The weaker-than-expected results were attributed to a decline in intra-U.S. transactions and elevated operating expenses. However, rising transaction volumes, a strong global payment network, and growth in digital and cross-border transactions partially offset these challenges. The company’s adjusted EPS came in at $2.56, missing the Zacks Consensus Estimate by 2.7%, though total revenues rose 9% to $1.1 billion.

EEFT’s financial update revealed a cash and cash equivalents balance of $1.3 billion at quarter-end, with total assets increasing to $6.6 billion. Short-term debt stood at $1.4 billion, while equity reached $1.4 billion, up from $1.2 billion at the end of 2024. The company also retained $884.2 million in revolving credit facilities at quarter-end.

The top three non-earnings related news items within three weeks of Euronet’s earnings report include:
1. Strategic progress through the acquisition of CoreCard, enhancing Euronet’s issuing capabilities and aligning with its Ren platform to access the $10 billion global issuing market.
2. A Ren agreement with one of the top three U.S. banks, further strengthening Euronet’s digital payment infrastructure and future growth potential.
3. Continued focus on digital payment initiatives, with Euronet maintaining its 20-year trajectory of double-digit growth and margin expansion in its core segments.