Euronet Worldwide (EEFT) Q2 FY26 earnings call: guidance and Q&A

Why is the 35% YTD growth for digital accelerators higher than the 23% full-year guidance, and is the guidance conservative?

Management stated that the 23% guidance was thoughtfully conservative and that the accelerators have grown even faster than anticipated, with lapping prior-year performance being the biggest factor.

“I would say the lapping is the biggest thing. But -- plus -- I mean, at the Investor Day, we are trying to be thoughtfully conservative. It's been -- I'll tell you right now, it's grown even faster than we thought it would.”

asked by Peter Heckmann · answered by Michael Brown

Was CoreCard's Q2 revenue in line with the expected $16M-$18M quarterly run rate, given a one-time revenue boost in Q1?

Management confirmed that the analyst's assessment was correct, and Q1 included a one-time pass-through revenue of about $10 million for plastic card purchases with minimal profit impact.

“Yes, Sir Pete. Yes, as we pointed out in the first quarter, we had some onetime revenue that didn't do much in terms of profit because it was basically just pass-through cost that we have to account for under GAAP. So your analysis is right on.”

asked by Peter Heckmann · answered by Rick Weller

What are the plans for increased marketing or promotion in the Money Transfer area to return to growth?

Management confirmed increased digital marketing spend of $3 million in Q2, expecting revenue impact in Q3/Q4. They will continue to accelerate digital investments while being cautious with overall market weakness.

“Well, I mean, first of all, we've got a bad kind of macro, but we found that our investments in digital are paying off very handsomely. And we mentioned that we spent about an extra $3 million this last quarter in various marketing, mostly digital.”

asked by Mike Grondahl · answered by Michael Brown

Does management expect the softness in European ATM transactions to continue through the year?

Management noted some softness in Q2 but saw slight improvement entering Q3. They are cautiously optimistic for a more resilient second half of the tourism season, potentially due to World Cup travel normalization.

“Well, yes, Mike, we saw a little bit of softness in the second quarter. I don't want to be too bullish on stuff, but we saw a little bit of improvement as we go into the third quarter.”

asked by Mike Grondahl · answered by Rick Weller

What initiatives are in place to capture the massive opportunity in XE and small business payments?

Management plans a whole investment plan for XE starting in H2, aiming to leverage its superior payout network for cross-border payments for individuals and small businesses, acknowledging it's an underutilized asset.

“You're right. It is exactly that. It's a huge opportunity because the value proposition that XE gives to both individuals and small businesses, especially the ability to make cross-border payments much more quickly and less expensively than their bank would, and we're -- we've got a whole plan of investment into XE beginning in the second half of the year.”

asked by Cris Kennedy · answered by Michael Brown

Is the CoreCard win in Peru indicative of similar setups in other markets where CoreCard helps secure deals?

Management is very pleased with CoreCard's deal momentum, signing 5-6 deals since acquisition, exceeding expectations. The Peru win (Unibanca) is significant as it's a processor for multiple banks and provides a strong LatAm reference, showcasing the combined power of CoreCard and the broader REN platform.

“Let me tell you this, as I've said in prior calls, we really didn't expect to get a deal closed with CoreCard for like 18 months after sale. And it was in November or December last year when we sold -- when we bought it. And -- but we have been exceedingly -- well, both surprised and happy with the deals that we're signing.”

asked by Cris Kennedy · answered by Michael Brown

Given better digital accelerator trends but worse non-digital performance, how should investors think about full-year revenue growth compared to the Investor Day's 6% target?

Management stated that the full-year revenue outlook remains largely unchanged from the Investor Day projections.

“I'll let Rick correct me, but I think we're pretty much unchanged from where we were at the Investor Day. Yes. Yes.”

asked by Vasundhara Govil · answered by Michael Brown

Given that the annual share buyback target of $125M-$150M has already been met in H1, how are buybacks viewed for H2, and are additional buybacks incorporated into the earnings outlook?

No additional buybacks are incorporated into the current earnings outlook. Management views buybacks as an attractive use of capital and will continue to maintain a positive view towards share repurchases.

“Yes. We don't have any additional numbers incorporated in the outlook there. Really -- so -- but as we said, look, we continue to believe that it's a good use of capital, and we'll continue to maintain a positive view toward how we use our capital to repurchase shares.”

asked by Vasundhara Govil · answered by Rick Weller

What are the trends in Money Transfer, including acceleration/deceleration of digital shift, stress on smaller operators, and promotional pricing?

Management sees stress on smaller operators and benefits from its diversified digital offerings (direct-to-consumer, Dandelion, XE). They expect comps to ease as the biggest impacts started in Q2 last year, leading to potential stabilization and growth.

“Yes. We certainly see some stress on some of the smaller scale operators. I think when you see things like this, it's not necessarily discriminatory among operators.”

asked by Gustavo Gala · answered by Rick Weller

How to reconcile Euronet's reported weakness in U.S. to Mexico remittances with Mexican Central Bank data showing growth?

Management noted some improvement in Mexico volumes recently but clarified that the Central Bank data might reflect growth on top of a significant decline (16-17%) from the prior year, indicating a change in direction rather than absolute growth.

“Yes. Well, as Mike said, we started seeing a little bit of improvement in the Mexico stuff here. But -- and I just have to look at your data, but I don't know that it's growth on a year-over-year basis because last year to Mexico, I think it was down something like 16%, 17%.”

asked by Josh Levin · answered by Rick Weller