Euronet Worldwide, Inc. Aktie

All right. Good morning, and thank you for joining us for Euronet's 2026 Investor Day. I'd like to thank everybody for joining us here and those of you that are online. I'm Stephanie Taylor. I'm the Corporate Treasurer at Euronet Worldwide, and I oversee the Investor Relations function. We really appreciate you spending the morning with us as we try to -- as we're excited to walk you through where we are as a company, how our business looks today, what our growth opportunities are ahead of us.

Many of you have been with us for a long time and some of you are new to the story, but I'm confident that this session is going to be beneficial for everybody in the room. You'll hear directly from several members of our management team as we provide a deeper look into the company's evolution, our strategy, our technology capabilities, we'll take a deep dive into each of our segments and how we're positioning ourselves for the future of money movement. We'll begin with Mike, our Co-Founder, Chairman and CEO of more than 30 years, who has led the company the whole time. Then we'll hear from Dr. Martin Bruckner, our Chief Technology Officer, who will discuss the shared infrastructure and the technology and network behind how our businesses operate. Then each of our business unit leaders will come up and they'll walk you through each segment and provide you a deeper understanding of what we do and where our competitive advantages lie and the initiatives that will accelerate our growth into the future.

Following the presentations of the business units, Rick Weller, our CFO of more than 2 decades, will come up and provide a financial profile, insight into our capital allocation priorities and a multiyear financial outlook. Mike will close the day with brief remarks.

As we go through the presentation, I know you guys will have questions. I'll just ask you to hold those because we'll have a dedicated Q&A session after Mike's final remarks. And finally, we invite you to stay for lunch, and I'd like you to mingle and get to know the leaders and understand their devotion to Euronet and our future.

And finally, it's my job to remind you that this presentation will include forward-looking statements within the meanings of the federal securities laws. These statements are subject to risks and uncertainties, and the actual results may be materially different than those presented in today's discussion. Please refer to our safe harbor statement in today's presentation as well as our SEC filings for additional information.

In addition, we will present some non-GAAP financial measures. You'll be able to find the reconciliation to the nearest GAAP measure in the back of the presentation, and they're also available on our Investor Relations site. So with that, let's get started.

[Presentation]

Good morning, everyone. Thank you very much for joining us today. We're really excited to be here and excited that you're here as well. I think that video kind of sets the stage. It's all about disruption. It's about technological innovation. It's about market opportunity. And that's what I saw a little over 30 years ago.

When I think about what an entrepreneur is, it's an individual who notices a gap, notices something missing and kind of has the attitude that, my gosh, I can fill that gap. And that's really what we've done here at Euronet. Before I founded Euronet, I founded a software company, one of the very first software companies for the PC industry. It was innovative software and then Informix.

And during that time, I got to meet all the celebrities of the time, even though we were all quite a bit younger back then. You can see Steve up there. You could see me with a little bit more hair and no must now. And I got to meet all those guys because we came up with a piece of technology that was well in advance of everything else out there.

We had a spreadsheet called Wings. It was a graphical spreadsheet that really became the blueprint for what we see with Excel today. We were about 3 years in advance of them. So after about a dozen years at Informix, I left there and then began to look for my next venture.

And the thing that I noticed was that Central Europe was now open. The Berlin wall fell in November of 1989, and I kind of followed it. I found myself in Budapest, Hungary. And the thing that I noticed, I'm looking around because I needed cash and I couldn't find an ATM. And I thought, well, there's a gap. So I thought let's harness some technology and bring those kinds of electronic transactions to the market.

And this entrepreneurial culture is really in our hearts, everybody here at this table, all my executive management team, and it's that same energy that we have today. We use technology to close gaps, and I'm excited here to talk to you about them and also to introduce you to my executive management team who are mostly all at this table right here.

They are intentional. They are driven. And as many of you have asked, you want to know why I'm excited. Well, why don't I let you let these gentlemen tell you why they're excited.

So today, we'll start with the 3 questions. Here's the questions that we hear a lot from our shareholders and analysts. So before we dive in, here's what we're going to do.

So first, what is Euronet? We'll tell you about that. What businesses are in each segment and how are they related? And if you think about it, 8 years ago, 7, 8 years ago, we had 3 divisions, and we did 3 things. Now each of those divisions has 2 to 4 things within them. And I don't think the market's quite caught up with what we've been doing, these investments that we've made over the last, say, 7 or 8 years.

The second thing we're going to do is we're going to talk about growth. We've delivered growth year after year after year. In fact, the last 3 years, we had a 13.5% adjusted EPS growth. Where does it come from? I'm going to tell you about, and why it is durable. And third, where is the future, where will the future growth come from and what you might expect.

Companies have mission statements. Ours is really exactly the way we think every day. We want to power the global movement of money through an integrated set of infrastructure that Martin will talk to you about here in a minute to deliver financial access, speed and inclusion. And that's what we live by every day, everybody at this table over here. And that's the center of every decision that we make.

Well, Euronet at the end of the day is simple. We move value from point A to point B. That's it. That might be a consumer withdrawing money, maybe zloty at an ATM in Warsaw. That might be an Indian migrant worker who lives in Australia, and he's sending money back to his family in India. This might be a fintech in Singapore who wants to have debit and credit cards. In each and every case, value needs to move.

This highlights, some of these examples also highlight our global diversity. Our customers, and this is one thing I want to stress, our customers are not the people in this room. They're different. That makes it difficult for a lot of our analysts and our shareholders to quite understand what's going on.

Most of our customers are not from America, and they interact with the global economy differently than you may. These consumer preferences are built into every business we run, every product we build, every market we enter. And they're all variations on that same theme of moving value from A to B.

So let's start at the beginning. This was our first use case. A lot of you have heard me talk about it. It was one ATM, 24/7 access for cash and a 100% cash-based market. It required a switch and a technology to move that money from A to B. But that was our foundation, but it has morphed into something much bigger.

Of course, we have an ATM network, but we have payments technology. We have banking relationships. We have technological innovation. We have physical presence in many, many markets and a compliance framework that envelopes the whole thing. That took decades to build, and it is not easily copied.

When you think about it, ATMs are a cost center to banks. And what these banks came to us early on said, we need to figure out a way to offset some of those costs. So the second use case we came up with other than just cash at the ATMs was providing prepaid mobile top-up codes at the ATMs. That taught us a bit about payments other than just cash withdrawals, and that led to the purchase of epay.

We purchased $75 million in revenue, and now epay is $1.2 billion. We integrated epay into the business, building both retail and banking relationships. And the next natural extension of that was to move money between those markets. And that led to the acquisition of Ria. The purchased revenue there was $200 million. Today, a little less than $2 billion. That's a 13.6% CAGR over those years.

These 3 businesses came together thoughtfully evaluating our assets, allowing customers to participate in the world economy. Each time a new need or use case became apparent, we built it into this foundation technology. We expanded it geographically, and we made it more valuable.

Expansion is not easy. It requires licensing, technology, certifications, IT security and infrastructure and a compliance framework. All of this is our moat. Our moat is not a patent. It's not a logo. It's 32 years of regulatory trust and physical presence in 200 countries.

Here's the takeaway. Each opportunity that we've run into and that we've tried to deliver on runs by the same playbook. We use modern technology to be entrepreneur like and deliver new products all the time, and it's working. We've had 32 years of trusted partnerships and the next chapter is going to be no different.

So what did 32 years of running the playbook give us? Three business segments that started each with a single use case, evolving into a more sophisticated set of uses, which all move money from A to B. Now for some fun and for some further clarity, we've got new names for more use cases, more reflective of our current businesses.

The EFT segment becomes payments infrastructure. It's a better name because the use cases have evolved from ATMs to a modern processing architecture with long-term bank relationships and contracts and licensing across many geographies.

epay started moving money from a consumer to a telco. It grew into the world's largest branded payments distribution network with 352,000 retail locations and more than 400 digital distributors spanning 60-plus countries. No name change here.

Money transfer becomes cross-border payments. The original use case of this segment was family remittance, but we have now expanded that with use cases to provide cross-border payments to all segments of the payments infrastructure from C2C, from C2B and from B2B. Each of these new use cases utilize the same regulatory footprint, technology infrastructure and the connection assets that we have.

I've told you what we built. Now let's put it into numbers. When it comes to cross-border, that's 42% of our consolidated revenue. Payments infrastructure, 30%; epay, 28%.

Geographically, a bit different. 59% of our revenues come from Europe, 25% from the U.S., 12% from Asia, 4% from the rest of the world. We send money to 200 countries, delivering funds to 12 billion digital accounts. We partner with 400-plus digital platforms. We have 2.2 billion digitally accessible customers at any given time. And we have digital scale and a physical footprint as well to allow customers to participate in the global economy and pay for things as they see fit.

Here's the Euronet Advantage, 1 network, 3 segments. Before I hand you off to our segment leaders, I would like to talk to you about the interconnectivity of our segments. Martin will come up, and he will expand even further on that. We have been intentional with the idea to leverage our existing assets to serve additional use cases. They reinforce each other, widening our moat.

Ren is our platform, our foundation. It was built for us and used by us before we even sold it once. Remember, it had 30,000 ATMs on it, processing billions of transactions before we were able to sell it to Bank of America. It generated cash flow by efficiently running our business.

The cross-border payments network worked for us before we productized it into Dandelion. This took 20 years to build, hundreds of regulators to satisfy, even before people like Citibank, Remitly, et cetera, started to use this feature. Twenty years of last mile payouts, one corridor at a time, one license at a time.

epay's network is unmatched and overlaps with the payments infrastructure segment. We sold Grab, which is Southeast Asia's super app offering ridesharing, food delivery and digital payments. Now Grab wants to issue cards, bank cards, debit cards, credit cards and more.

And one thing I want to say because people have asked me this, they have said, are you a conglomerate? Well, let me tell you, we're not an ATM company, and we're not a conglomerate. A conglomerate are several businesses that share a balance sheet. We share infrastructure and customers, making us unique and strong. That is the fundamental of why no pure fintech or legacy processor can replicate us.

Well, these gentlemen here, and the young lady, I've been lucky enough to work with them for 20-plus years. We've grown revenue back then at $500 million to $4.2 billion. These people are smart. They're driven.

So who's coming up? Dr. Martin Bruckner, who will explain our technical platform. Nikos Fountas and Himanshu Pujara, they're going to talk about payments infrastructure segment. Kevin Caponecchi will talk about epay segment. Juan Bianchi will talk about cross-border payments. And finally, Rick Weller, who many of you may know, will talk about financials and capital allocation.

In each presentation, I want you to watch for this, a segment that identified an original use case and then that use case brought us to an accelerator on top that is in a high-growth TAM, good margins, digital economics without building it from scratch. What you're about to see are 3 businesses: 1 network, 1 playbook. For 20 years, that model has delivered a 12% revenue CAGR. Today, you'll see why we are confident for the future.

I will now hand it over to Martin to walk you through the technology that underpins this platform.

Thank you, Mike. Good morning. Mike just told you that this technology platform is the engine behind all of our 3 segments. I'm going to spend the next 20 minutes showing you this in detail.

I want to start with one number, and I think that's perhaps also surprising. This is now a pure transactional view. About 70% of the transactions on our platform, our global platform, last year were digital products moving through digital channels.

And there's something perhaps even more surprising, that if you think about ATM transactions, this is not the other 30%. That's a part of the 30%. That's a slice of the slice.

If you look at the transaction volume, that is quite impressive. That ratio is the reframe I want to leave you with. Euronet is not an ATM company branching into digital. Euronet is a payments platform that also happens to be the world's largest independent ATM network.

We built the ATM network first, and the platform was definitely shaped by it, but that order matters. If you think about it and take a step back, that is a great foundation because what is an ATM transaction? It's a financial transaction. A financial transaction has to go through multiple orchestration layers, routing, compliance, fraud, FX, authorization, and settle in under a second in 200 countries, 200 regulators at 4 9s or 5 9s, in our case, lines uptime.

So you need to be very secure, goes without saying, very stable. That is what the customers expect and have a significant speed. And Mike told you about this one, what are we? We are providing payments. This is what drives all of our payments. It doesn't matter if you are doing an ATM transaction, a POS transaction, money transfer transactions. It's trust, speed and stability.

So every line of code in our platform was written under those constraints. So when a digital bank, Mike referred to it in Singapore, asked us to issue a card in the cloud, we have already solved every hard problem. They don't need to worry about that one. The ATM business didn't just generate cash flow for us. It stress tested everything we sell today and gave us 32 years of proof no start-up can buy.

Now let me show you what runs on it. Here's what the engine actually does at scale, and more importantly, the rate it's growing. Look at that impressive slide.

Let's start on the left side, 2021, 7.6 billion transactions. Let's skip to the right, 2025, 20.3 billion transactions on our global platform. That's 2.7x more in 4 years, roughly 28% compound annual growth in volume on a platform that's already the largest of its kind, $209 billion in volume annually.

And the growth is broad-based. You can see it on the right. Every channel this platform serves is contributing. You will hear more about those details later on.

The distribution service on the right shows how the engine reaches the consumer through 12 billion bank account and wallet accounts, essentially every banked or digitally banked consumer on earth. It reaches the merchant through 1.4 million POS and e-commerce endpoints. The retail counter through 350,000 stores connecting to over 1,000 brand partners, that is more the epay side of the business. Apple, Google, Amazon, Microsoft, Netflix, everything that comes to your mind is connected to our platform.

The world's largest telcos and gaming platforms as well, the cash economy through roughly 0.5 million pickup agents and 56,000 ATMs of our own, all inside 200-plus regulatory licenses we hold ourselves across more than 200 countries.

One last thing on this slide, I talked about the foundation. This is, now we get a little bit more technical, the performance numbers at the bottom because scale only matters if it really works, works in a reliable way. Switching peaks around 3,500 transactions per second on a horizontally scaling architecture. When traffic grows, the system scales out.

The 99th percentile latency under 100 milliseconds and an uptime across 2025 was about 99.999% measured, not promised. That's the technical floor under everything you see on this slide.

Now let me show you what's actually inside of the engine. And that will be interesting because this is how we really leverage our size, our different businesses.

This is how the platform looks like. You can see 3 layers. The first layer is basically our connectivity layer for our customers. You can see we have a lot of different ways of communication like APIs, restful APIs, SOAP APIs, ISO 20022, ISO 8583, you name it, we have it. We are connecting our customers. We offer SDKs. We have partner portals and also have webhooks for instant notification.

On integration, they can call any product on the platform. In the middle, our Ren ecosystem, API-first, event-driven, cloud-native. The 7 capabilities you see on the slide all run inside of it: switching, card issuing, acquiring, merchant management, Dandelion for cross-border, epay for branded payments and FX and fraud as cross-cutting services.

Products talk to each other in real time through the shared infrastructure. Fraud signals from one side can travel to the other side. Just to give you a quick example of how it really helps: merchant data flows into settlement, compliance events propagate across the network. Every new capability in this layer launches faster than the last.

At the bottom, and that is something that is not visible in most of our presentations, that's our external connectivity layer. Every mobile wallet, every real-time payment rail, every content provider, every card scheme, every banking partner, all of them, we integrate once in our outside connectivity layer, all through Ren, and any product on the platform in the middle can use that integration.

So that's quite powerful. When Dandelion from our cross-border segment routes a payment to a Kenyan wallet, it doesn't maintain its own M-PESA integration. It calls through Ren. When epay sells an Apple App Store credit in, let's say, in Mumbai, it uses Ren's integration.

And nowadays, as the world is way more connected, this is giving us leverage. For example, we started on the epay side, we have so many merchants, they wanted to introduce alternative payments like Alipay+ payments with wallets, let's say, in Europe or in Australia, New Zealand. This is where all of that started. And we created this Alipay+ transaction.

Guess what, super successful. A couple of months later, the cross-border segment said, "Hey, we want to send money to Alipay+ as a destination network." We had it, it was available almost immediately. That's the power of the platform. And that is what Mike called the moat.

That's the moat. It's not one technology. It's not one license, not one customer. It's the 3-layer architecture. Customers connect once and consume any product. We integrate to the outside world once and every product benefits inside of the platform.

The cost of expansion keeps going down on our side. The cost of catching up keeps going up on every competitor's side.

Let me show you where the platform, we do not only run it on our own. That was the purpose, but we found out that is a very exciting thing also for customers. Let me show you where the platform is sold today, region by region.

So we started this complete activity in Asia. This is why it's currently our strongest market. Asia is where we've built the strongest momentum. Trust Bank Singapore, just as an example, fully digital, fourth largest bank in Singapore, on Amazon Web Services, runs the world's fastest onboarding journey, 3 minutes from app download to a card provisioned in Apple Pay, 200,000 customers just in the very first month. Their head of cards calls us a strategic partner, not a vendor.

And it's not only Trust Bank. Another example is Jalin, Indonesia's national payment switch. They run on Ren 2, connecting over 100 banks and fintechs. The Asian Banker magazine named it Best Retail Payment Technology in Asia.

Asia is also where most of our real-time rails live because it all starts. This trend, account-to-account payment, started in Asia, but it's now conquering the world. In the Philippines, as an example, 3 of the 4 largest banks run on real-time rails through our platform, national infrastructure scale. In India, we power UPI connectivity for issuers. And UPI is, by an enormous margin, the largest real-time payment system in the world.

These are positions a competitor cannot replicate by writing a check. They require years of regulatory licensing, scheme certification and operational track record.

North America, and Mike just mentioned it, is the open frontier. Bank of America, the largest retail bank in the United States, is going on Ren for self-service banking modernization. They sat on stage with us at ATMIA earlier this year.

Latin America is the next chapter. Banco Guayaquil, Banco Pichincha and Omnipagos, 3 Ecuadorian wins anchoring our Ren footprint in that region. And Dandelion is live on PIX, Brazil's real-time rails, meaning institutional customers using Dandelion can now route cross-border payments into Brazil instantly. PIX is one of the most successful real-time systems on earth, and we are plugged into it.

Europe is where the scale lives. Piraeus Bank in Greece, OTP Bank across Central and Eastern Europe, Swedbank across Sweden and the Baltics, 3 Tier 1 banks on Ren across the 3 distinct European subregions, plus a deep retail acquiring footprint across the same geography. Four regions, 4 different stories, platform underneath all of them. The hardest sale in any market is the first.

I want to spend a minute on something that explains why we call this a platform and not a portfolio. Look at these metrics in front of you. Every customer in there on these metrics consumes from multiple of our segments. And the slide groups them by industry: global banking, European retail, fuel and convenience and Asian super apps, and it could be significantly longer.

I just took a couple of names that I thought might be coming to your mind and might ring a bell. One example worth calling out specifically is, just as an example, OMV, the Central European fuel and retail major with 3,500 filling stations across 8 countries. They use our issuing platform for fleet and fuel cards, our acquiring stack for payments at every station, and they distribute epay's branded payments through those same stations, 3 products, 3 different segments, 1 customer.

And the relationships go deep. We are integrated into our customers' e-commerce checkouts, their ECR and POS systems, their ERP reconciliation, their settlement reports, multiyear operational integrations. Switching us out isn't a procurement decision. It's a multiyear project most won't undertake unless forced.

One more thing most platform companies don't tell you, our own businesses consume, think back about the slide I showed earlier on, our own businesses consume from each other the same way external customers do. So take as an example, Ria. Ria, of course, consumes cross-border. They are also doing issuing with our Payment Infrastructure segment, and they are also selling epay products, so branded payments inside of their app and at their agents.

All of our units, they are using our products as well. So cross-segment consumption isn't a marketing slogan for us. It's the daily operating reality of how this platform works.

Here's how I think about engineering risk. We use what we sell at scale that's bigger than most of our prospective customers. Ren processes 56,000 of our own ATMs before it ever sees a transaction from Bank of America. Dandelion has been moving money across 200 corridors for our own Ria customers for years before HSBC plugged in.

Skylight, one of our compliance platforms, monitors our own retail compliance program before we put it on the Amazon AWS and Azure marketplaces. The table on the slide shows the same pattern across every product we sell.

And the newest example of the same pattern, stablecoins. We just went live also with stablecoins. We use it currently for settlement inside of the company, inside or outside of the company, correspondent payments from a treasury perspective where it makes sense. But that is just only the first phase.

We will, in a later phase, and Juan will talk about this one, move it also to make it available to Dandelion customers, to our consumers of the app. Once it's proven at our scale, we will move forward. Same playbook for everything you see on this slide. We are describing something we already rely on and that we will productize next.

The point isn't bragging rights. When a customer evaluates us, they are not evaluating a road map. They are evaluating something already in production and at scale under conditions harder than most of the time theirs. That collapses their procurement cycle from years to months.

And on deployment, we are one of the very few payment platforms that runs cloud-native, of course, on-premise, of course, and hybrid. Trust Bank, as an example, chose AWS. Some of our European bank customers run Ren in their own data center. We meet the customer where the regulator lets them be. Pure cloud competitors simply cannot match that. And in regulated markets requiring on-premise, they cannot play at all.

Last thing, we don't operate like a typical software vendor. We run the same code our customers run. So every improvement to Ren flows into our own P&L by operational efficiency and to our customers as well as a regular update. That's why we say we are not just a vendor, we are the operator, an incentive structure no pure vendor has.

And here's the structural reason I think we are early in a long growth cycle, not late. Most of the financial services industry still runs on core payments on infrastructure designed 30 or 40 years ago: mainframe architecture, programming languages like COBOL, like RPG, transaction protocols like ISO 8583.

And it's reliable, and let's agree, it works, but it cannot move at the speed real-time payments and embedded finance require. Two realities dominate every bank CIO's life. First, legacy platforms require scheduled downtimes. Banks plan their weekends around patching windows. And have in mind, if you are part of PCI, that is what you are required if you're doing payment transactions, you need to do that constantly.

Ren runs active-active across multiple data centers. We push all the changes, not only those patches, also new product innovation while everything is running.

Second, the COBOL and RPG talent market is collapsing. Nobody learns it anymore. Banks are paying enormous premiums to keep retired engineers under contract. Ren is written in modern languages with talent pool in the millions. Every major bank knows it has to migrate. The question isn't whether; it's how and with whom.

A start-up can't get a Tier 1 bank past procurement. It has never run anything at this scale. A legacy processor has the trust, but not the stack. We have both. Ren is cloud-native and microservice-based, but it also speaks everything that I would characterize as old, like ISO 8583, and you need that at this point in time because the world hasn't changed, right? We still need to connect to Visa and Mastercard.

So we support all the old protocols, all the new protocols, ISO 20022 for your real-time rails and REST to connect to all your banking services. And we connect what you have to what you need.

So the platform, I would call it, makes M&A cheap. And what does that mean? Of course, it's not cheap. But we acquire capabilities specifically because they plug into our core platform. And that is quite strategic. I will show you the 3 recent examples, one per year, and most of you have seen those releases, obviously.

Infinitium on the left side, 2024: payment authentication and 3D Secure. That is what makes e-commerce transactions secure and is demanded by many geographies in the world. We purchased that plus 50 engineers in Southeast Asia. Authentication now runs inside Ren, acquiring and issuing flows. And we have also been able to remove 2 of their data centers with consolidation.

CoreCard 2025, credit issuing and processing, plus roughly 1,000 engineers: revolving credit, buy now, pay later, commercial cards available to every existing Ren customer within a month. A bank issuing debit on Ren can now offer credit on the same integration. Two more data centers currently under consolidation with cost savings from a cloud opportunistic approach, cloud where it makes sense, on-prem where it makes sense.

And just last month, PaynoPain, Spanish fintech with roughly 30-plus engineers, bringing 50-plus alternative payment methods, SoftPOS technology and the Bank of Spain PSP license. Deal closes in Q3. And if we directly plug into Ren, every European acquiring customer gets an upgraded e-commerce offer. Three deals, 3 years, 3 layers: authentication, credit, omnichannel acquiring.

The platform makes M&A cheap because every acquisition makes every existing customer more valuable on close and takes real infrastructure out while adding capabilities.

AI, my favorite topic, but we do not have much time. So everybody will tell you, "Hey, we have introduced AI. We are doing all the coding and all of that," and that is true. We are doing the same. But AI is way more than that. AI means a big transformation for every company.

And we now really have a very nice example for you where we show you what that means in reality. You can see the new XE app we are launching next month. You see the old design, the new design. You can argue it's nicer, everything is more streamlined. It's easier to do the transaction. But what is really super exciting about this one is how it was built.

A year ago, those UI changes, how did they work? You had a project manager, you had a designer. The designer was using tools like Figma. They created a ticket, gave it to an engineer. The engineer did it. The designer didn't like it. It went back and forth. That is just everybody's company reality, at least 2025.

We have changed that. So we have changed the role of the engineering team. Now what do we have instead? We have product engineers. These are the designers. And how do they design? They don't use these graphical tools anymore. They use a coding, an AI-powered coding tool.

They are just directly writing that into a chat window and see what they want in real time. And we have completely redid this one. We'll go live next year. And the exciting thing is you directly see what you want, and it's directly in code. There is no way of difference. You do not need to wait for somebody. It increases the speed dramatically.

And this change won't be the last. The velocity gap between us and any competitor running the old chain will compound quarter-over-quarter.

I just showed you XE, our most visible AI story, but AI runs across every layer of the company, and I'm really stressing that a lot and pressing everybody. We are past obvious early AI deployments, now going deep across operations, engineering and product.

Engineering: every team uses AI-assisted coding; AI code review runs inside CI/CD pipelines already; AI-driven testing is in production, especially for UI-heavy applications. It's a game changer.

Operations: a mature layer running for years: fraud detection, especially for the money transfer segment and issuing; FX optimization; ATM cash management and forecasting for over 40 countries; and a newer layer, AI anomaly detection in our data centers.

And what we have just launched from an operational point of view is Aria. Feel free to test it, our voice AI agent for money transfer support, which is running side by side with our AI-powered chatbot for messengers that was already available for quite a while.

On the product side, the layer customers see: Skylight. We have created a unique compliance platform, which runs live agentic AI on AWS and Azure marketplaces. And we have embedded AI in the platforms customers use day-to-day: chatbots in our developer portals; natural language queries in our Ren system for BI users; and most strategically, very new customers, switching logic, bank customers, fintechs in natural language.

They describe what they want, AI drafts the rule, then they deploy. Beyond this, we are piloting very exciting agentic payments, AI agents initiating and validating transactions themselves, not adding AI to a feature or to a few features. Our goal is to transform our company, Euronet, to an AI-first company. And XE is the first product end-to-end. It won't be the last.

You have heard what runs the engine. You're about to hear what runs on it. Now the business owners take the stage to present their accelerators built on top of this agile platform. We are not 3 businesses bolted together. We are 3 businesses powered by one engine, running on the same code, the same compliance framework, the same global footprint. That's what's hard to copy, and that's what you are about to see proven in detail. Thank you.

[Presentation]

Good morning from me, too. I'm Nikos Fountas, and I've spent the last 21 years in Euronet leading the infrastructure business for Americas, Europe, Middle East and Africa. As Mike mentioned, we have renamed this segment to more match the business that we're managing every day.

Today, Himanshu and I will walk you through the core business and the accelerators that will drive our future growth. Let me start with an overview of the Payment Infrastructure segment.

Payments infrastructure provides a global foundation that enables payments across both physical and digital channels, supporting banks, fintechs, merchants and consumers around the globe. This segment operates across 3 core business units: the global ATM networks, the ATM, as we know to speak about; the payment processing services; and merchant services.

Today, we operate across 69 countries and on 6 continents, processing more than $114 billion in transaction volume and generating over $1.3 billion in revenues. This is a scaled global payments footprint that has been built over more than 3 decades and is extremely difficult to replicate.

Importantly, payments infrastructure is in the middle of a deliberate evolution. While global ATM networks remain a durable cash-generative business, payment processing services and merchant services are our growth accelerators.

What we saw following COVID was a shift towards digital payments. We recognized the shift and reduced our focus on the ATM and focused on the greater needs of our banks, our fintech partners, for modern payments infrastructure. Over the last 3, 4 years, we have significantly diversified our revenue streams.

Before COVID, our ATM network made up approximately 90% of our segment total revenue. ATMs today account for approximately 60% of the segment's revenue. While we still expect the ATM business to grow, we expect that it will continue to carry less weight as we shift towards more long-term recurring revenue streams.

This revenue mix demonstrates the effectiveness of our diversification strategy and supports the forward growth story of the segment. The strength of payment infrastructure is anchored in a modern unified payment stack designed to operate reliably at scale, as Martin mentioned. Our technology is API-driven, cloud-enabled and built to support the full spectrum of payment types and channels.

Combined with a broad regulatory footprint and long-standing client relationships, this creates durable recurring revenue and strong customer stickiness. Recent achievements highlight this breadth. In payment processing, we've secured marquee agreements with institutions such as Bank of America, Santander Bank, UniCredit, Swedbank, Standard Chartered Bank and leading fintechs around the globe.

In Merchant Services, we've grown organically to over 25% market share in Greece, tripling EBITDA in just over 3 years. Additionally, we recently announced a couple of small complementary acquisitions of PaynoPain, which operates in Spain and Latin America. We also acquired the merchant portfolio of Credio Bank in Greece.

The agreement with Credio Bank is notable not only for the merchant portfolio that we acquired, but because the agreement will cross all 3 units where Euronet will provide credit and debit card issuing, account-to-account payments, alternative payment processing, ATM as a Service and more.

And in global ATM networks, we continue to expand selectively in emerging markets while supporting banks that are rationalizing their own infrastructure. Collectively, these wins reinforce payments infrastructure's role as a trusted long-term partner in mission-critical payment capabilities.

Cash remains resilient globally, particularly in Europe and emerging markets where it continues to represent a significant share of point-of-sale transactions, comprising more than 50% of transactions in the European Union. At the same time, banks are reducing physical footprints, creating a growing opportunity for Euronet's outsourced ATM as a Service solutions.

As a result of the shifting bank needs, payment infrastructure is undergoing a structural shift. Financial institutions are constrained by legacy platforms that cannot support real-time data, automation or AI-enabled experiences. As a result, they are moving towards outsourcing critical processing capabilities and adopting capital-light, digital-first models.

Merchant Services follows a similar pattern. Governments are pushing towards faster cashless payments adoption. Our local execution capabilities, regulatory presence and established bank and merchant relationships position us well as banks spin off or partner on the acquiring businesses.

As you heard from Martin, the key differentiator across all 3 businesses is that they operate on a shared technology foundation, enabling bundled offerings, cross-selling and reinvestment of strong cash flows to fund the growth. Across payment infrastructure, the common thread is recurring volume-linked revenue.

Global ATM networks generate revenue from interchange, direct access fees, FX, deposits and multiple value-added services with improving economics driven by regulatory changes across several countries, mainly in our primary markets in Europe.

Payment processing services operates a largely subscription-like model, combining recurring card hosting, terminals, license and maintenance fees with transaction-based upside. Merchant Services earns acquiring fees tied to transaction value, complemented by fixed terminal revenues and an expanding suite of higher-margin value-added services like tax refund, bill payment, DCC and many more.

The average revenue per transaction can range from a few cents for real-time switching services in developing markets to a few hundred dollars per month per ATM for ATM as a Service. This model provides strong visibility, scalability and predictability, key attributes for long-term compounding returns.

Now let's go on to highlight the key accelerators for our payment infrastructure business in more detail. Merchant Services is a proven strategic and growth accelerator, addressing an estimated $50 billion total addressable market focusing on Continental Europe, which is underdeveloped when compared to the U.S. or U.K. markets.

We operate a full-stack omnichannel acquiring platform across more than 25 countries today, serving both large cross-border merchants and small, medium enterprises. Greece stands out as a strong proof point where we have achieved market leadership against global competitors. We have grown to over 25% market share with more than 230,000 merchants, and we've tripled EBITDA over 3.5 years since we acquired the business from Piraeus Bank.

Our right to win is driven by unified and scalable technology platform built on Ren, synergies across the broader Euronet ecosystem and global reach paired with strong local execution. This combination, scale and local adaptability is what the market demands and what most competitors cannot match.

With that, I will turn it over to Himanshu, who will highlight the second accelerator of this segment.

Thank you, Nikos. Good morning, everyone. My name is Himanshu Pujara. A bit of myself. I've been with the company running the EFT or the Payment Infrastructure division at Euronet for the last 18 years. And for the last 5 years, I've also been responsible for the payment processing services business, which is a subsegment within EFT.

Today, I'm going to be focusing on this particular business, which, as Nikos mentioned, is the second growth accelerator within the Payment Infrastructure division. It represents a little over 1/5 of the total segment's revenues and, importantly, is a key driver of how the segment evolves over a period of time.

At its core, this business powers mission-critical payment transactions at scale, spanning both card-based and real-time account-based payments. If you think about it, it's the execution layer that keeps payments moving seamlessly across channels and form factors that consumers and businesses rely on every single day.

Our estimate is that the total addressable market opportunity for our target solutions is approximately $34 billion. And if you think about it, this particular opportunity is driven by a simple structural reality, which is that banks and fintechs are forced to modernize. And this is not only just to take out cost but to unlock new capability.

Everyone talks about AI as AI is advancing rapidly from the edges of the enterprise into the core of financial services. Legacy payment platforms simply weren't designed for that world. When you talk to fintechs, you realize that they are worried about this from day 1. Banks start feeling this pressure when they actually have to compete with the fintechs or they actually have to partner alongside them.

At Euronet, we're ready. We have 2 modern and complementary payment platforms. Martin has talked about Ren already. So Ren is basically the platform that underpins our global network of assets, and it's the same platform that we use to provide processing services to our external clients.

CoreCard is the second platform, the platform that we've acquired recently. It's the largest modern revolving credit card platform, which has been purpose-built for complex credit and unsecured lending platforms. If you think about it, together, they form a single natively modern architecture that allows us to address both global banks and fast-growing fintechs, combining agility with enterprise-grade reliability.

When you talk about our right to win, Nikos talked about the right to win for Merchant Services. The right to win for payment processing really boils down to 4 structural advantages that we have.

The first one is that the architecture that we have at Ren and CoreCard is modern at the foundation. We're really not talking about modernization 1.0, which is around wrapping APIs around legacy cores. A lot of payment platforms claim that they're modern, but essentially, they are really just APIs around the back-end system. That's not us. This is payments built for an always-on, demand, data-driven world.

The second one is that our platform is battle-tested for scale through our internal proof points and through large external customers that we have. So we're not asking our customers to take on any platform risk.

The third one, we have marquee clients that actually validate us at the highest tier. We're talking about global financial institutions and fast-growing fintechs.

And finally, and this is an important point as well, we have structural depth across geographies that we operate. So it's depth across geographies. It's also depth across domains. So we're talking about issuing, we're talking about acquiring, we're talking about instant payments, we're talking about ATMs as a Service, and all on a shared technology foundation. What this means is that each capability that we build basically has multiple buyers from day 1.

Now let's talk about what the platform is really doing in the real world, live at scale, for a variety of use cases across different customer types.

So in Asia Pacific, we have a debit processing mandate with Standard Chartered Bank. Standard Chartered is a global multinational headquartered out of the U.K. They have operations in Asia Pac, Middle East and Africa. So we are the debit issuer processor for multiple countries covering their consumer banking and their digital banking businesses.

The example that Martin gave about Trust Bank, Trust is actually a digital bank owned by Standard Chartered Bank out of Singapore. So that was our first digital bank in Asia.

Another implementation is with Grab, which is one of the fastest-growing fintechs in Southeast Asia. We actually are their issuer processor for their debit cards that are launched for their digital banks in Singapore and Malaysia. The video that you just saw when Martin kind of handed over to Nikos, that was from the CEO of the Digital Bank of Grab in Malaysia.

In the U.S., we partner with leading fintechs to bring innovative and quick-to-market co-branded card programs to life. We've won these mandates against long-standing incumbents primarily because these clients that you see on the chart essentially wanted flexibility. They wanted faster time to market and the ability to continuously evolve the customer experience.

I also want to remind everybody, it's basically the CoreCard platform, the platform that we've acquired recently, which is the platform behind the Apple credit card for Goldman Sachs, and that's an industry-leading program that validates our platform at the global scale.

We've also spoken about, Martin has already spoken about, our relationship with Bank of America. So we provide a modern ATM driving and a payment switching solution to the bank. This particular piece of software is, over a period of time, going to replace the existing system or the software that the bank uses, which will then enable them to roll out new functionalities with a faster time to market and also provide additional advantages like providing real-time data for their operational processes and needs.

And these are not isolated examples. We have many similar such implementations with global banks and regional banks and financial institutions, spanning the world of real-time payments and also ATMs as a Service.

When you step back, the pattern and the trend is very clear. These institutions are trusting us to replace their systems, to scale faster and to unlock new capabilities without really compromising on resilience, compliance and control. And to remind you, these are not proof of concepts. These are fully scaled production deployments that we're really talking about.

Now let's talk about where the platform goes next. So today, we already operate across the core payment stack, issuing debit, credit, prepaid, all the fun stuff around issuing. We're talking about acquiring omnichannel ATMs and account-to-account and wallet payments.

What really changes next is the nature of payments itself. So there are 2 key trends that we're really investing for ahead of time. One is AI. Obviously, that's top of mind for everyone. And then the other one is stablecoins.

So let's talk about AI. As AI becomes embedded into commerce through autonomous agents, real-time decisioning and programmable workflows, money must become programmable, auditable and instant. And that's where we're making the investments.

When you're talking about stablecoins, at the end of the day, we need to make sure that our platform is supporting both fiat in all forms of tokenized value, which is why you see the investments on the right-hand side of this chart. These are the capability expansions that we're really geared towards and making in our business.

We really don't view these as adjacent bets. We really view these as extensions to a natively modern core. Also, at the end of the day, all of this is important because all of these capability layers expand our addressable market, deepen our client relationships and support long-term recurring revenue compounding.

With that, I'll invite Nikos over to wrap up the segment.

To summarize the payment infrastructure story. First, this is a modern, vertically integrated global payments platform, not a single product business.

Second, the segment addresses multiple large and independently growing markets through shared infrastructure and bundled offerings.

Third, it generates durable, predictable cash flows that fund continued growth and diversification.

Over the past several years, payments infrastructure has transformed meaningfully. Its portfolio, competitive positioning and pipeline position the segment to accelerate growth going forward. This is the payments infrastructure story. And with that, I'll ask Kevin to walk you through the epay division.

I guess I'm the hump point today, right in the middle. So thank you, everybody, for coming. My name is Kevin Caponecchi. I work out of our Kansas City office. I'm entering my 20th year at Euronet Worldwide, and I'm responsible for our epay segment.

To better understand epay, it's important to understand the uniqueness of the markets that we serve. First, 85% of the revenue that we generate is generated outside the United States, with Europe being the largest region that we serve.

Second, the gift cards that we sell, 70% of the gift cards that we sell, are for self-use. And you might ask why. It's called a gift card. What does self-use have to do with it? While some of it is cultural, many consumers either don't have a credit card or they don't want to use their debit card online out of concerns for fraud.

Therefore, in the markets that we serve, many consumers prefer to purchase online services by loading their accounts with a prepaid instrument. This is a global recurring, high-frequency behavior and epay makes it possible by connecting brands to consumers through an extensive distribution network. You might even think about it as a load network.

If you've loaded your Google Play account using a wallet in India, if you've bought a Netflix gift card from Penny's in Germany, if you've topped up your mobile phone using Nubank in Brazil, you've used epay. You likely didn't know it. And that's the point. epay is the infrastructure underneath those moments, invisible, essential and operating at scale.

I would like to start with a discussion about the shape of the business. epay sits at the intersection of digital content, payments and prepaid distribution. And as Martin said, it rides on a single compliant, enterprise-grade platform.

We operate across 66 countries, 749,000 point-of-sale terminals, 352,000 retail locations. But more importantly, 70% of the transactions are digital, moving across 400 digital channel partners serving more than 2 billion customers, as Mike had mentioned earlier.

We are not a physical-first business trying to be digital. We are already digital. And for a good reason, and this is one of the most important points. Since most of our end customers are self-use customers, digital channels are critical.

Convenience drives consumption, and there's nothing easier than buying your streaming credits from your couch in your living room using your preferred wallet. That beats the heck out of walking in the rain to 7-Eleven.

Within epay, we have 3 business units: branded payments, which are made up of our mobile top-ups and our gift card business; solutions, our SaaS-based offerings to our same brand and retail customers; and Merchant Services.

Highlighted in orange is our accelerator, epay's move into real money gaming as a technology service provider to 2 strategic partners, both focused on disrupting the payment landscape within gaming.

The current product mix is as follows: Branded payments makes up 90% of the business, obviously our largest segment; Merchant Services, 6%; solutions, 4%. Three business units producing strong cash flows built on deep retailer and brand relationships.

In summary, think of epay as the payment infrastructure used by our brand and retail partners to better serve their customers.

What makes epay defensible? First, one global platform. We own the rails between our brand and retail partners. Second, product breadth, a full suite of third-party products and epay-issued first-party products, all available, as Martin mentioned, through one API.

Third, true omnichannel distribution. Amazon codes launched on our central platform are available at MediaMarkt in Germany while simultaneously available on the Revolut app in the U.K.

Fourth, enterprise-grade compliance, risk and settlement, embedded, not outsourced. Our key achievements this past quarter tell the story: more content, more distribution, more solutions, driving more revenue.

Now let's talk about the epay network, which sits at the core of our branded payments business. On the left side, some names that I'm sure you find familiar: Netflix, Amazon, Google Play, others, some of the world's most important digital brands. On the right side, you see Carrefour, Aldi, Revolut, Paytm and others, more important retail and financial wallets.

In the middle, connecting both of them sits epay. Obviously, this is only a snapshot. There's another 1,000 brands behind the few logos on the left. There's 352,000 retail locations of many retail brands across the right.

The breadth of our network is extensive and pushing it across a single integrated platform ensures consistency and speed to market. Let's think about this from the standpoint of one retail partner, Revolut.

When Revolut wanted to offer digital content across 29 countries, they didn't want the hassle of 29 integrations. With epay, as I mentioned before, they connect once, they get all. TikTok, if TikTok wants to distribute credits across Europe, they don't want multiple connections to reach each country. They want one connection to serve the whole region.

For every new brand we add, every new retailer we sign, the network becomes more valuable to all. A strong portfolio must serve the needs of all from buying character skins for Fortnite to downloading and streaming the local cricket match on Tata Play, India's largest prepaid satellite TV provider. And that flywheel that you see up there has been running for over 20 years.

And I want to pause here for a moment. It's easy to think about epay as purely a distribution network for gift cards. But I want to go back to what I said at the start of the session. The network actually serves as a load network for consumers interested in participating in the digital economy that either don't have or don't want to use their bank cards online.

If we think about it in those terms, the epay network can be used as a load network for almost anything, including bank deposits. For example, in some countries, rideshare operators allow consumers to pay the driver in cash. Drivers don't necessarily want to be driving their cars with a lot of cash in their wallet.

Imagine that epay commits their epay network to those drivers as a load network. As we identify new use cases, we have an opportunity to unlock new business verticals.

It's also important to understand, obviously, how we make money. For branded payments, we earn a transaction margin for mobile top-ups and gift cards plus the distribution fee from our brand partners. Fees range from $0.01 to more than $20 per transaction. However, on average, we earn about $0.27 per transaction, predictable, high-volume recurring revenue.

Solutions generates revenue through a SaaS model. These are tailored programs for our brand and retail partners that range from operating a proprietary gift card program to providing fraud monitoring and AML services, sticky, contractual, high-retention revenues.

Merchant Services earns revenue through card acquisition fees, both fixed and interchange-plus models. Three distinct revenue streams running on one platform.

Now let me pivot our conversation to an exciting new growth vector that we've not talked to you about: real money gaming. Since we haven't spoken to you about this, I'm going to take a few more slides in this section than some of my peers because we want to make sure you understand the full scope of the opportunity.

Let me start with a moment. A casino guest sits down at a slot machine. They start playing. And as they play, the credit meter on the slot machine, in this case, unfortunately, goes to 0. Out of cash, they stand up. They have to walk through a busy casino floor in search of an ATM. Once they find one, they often have to wait. And sometimes, they don't go back to the machine.

That single moment plays out tens of thousands of times a day, costing casino operators hundreds of millions of dollars in lost revenue. But this scenario is symptomatic of a larger industry problem in which the payment infrastructure has not kept pace with how consumers want to transact.

But before I talk about the opportunity in more detail, let's break down the needs of each party that we're serving. Operators want more players through the door. They want more time on device. Players want more payment convenience.

Several years ago, Euronet was approached by the founders of a new company that came up with an innovative credit solution, along with an alternative to cash on the casino floor. They are long-time industry operators with deep domain knowledge.

Their idea showed tremendous promise, but they lacked the technology platform or the know-how to build an enterprise solution that could operate at scale. That led to a strategic partnership focused on modernizing the payment landscape across gaming.

As we all know, real money gaming is no longer a niche industry. Between the barrage of advertisements all of us have to suffer through on TV or the brand sponsorships that we see on professional jerseys, globally, gambling has become part of our cultural fabric.

In the United States, the physical casino floor alone represents over $400 billion in annual transaction volume moving across more than 900,000 slot machines, 26,000 table games and 1,000 casino operators. The physical market has grown at approximately 8% a year since 2019.

The U.S. online gaming market comprised of sports betting and iGaming hit $22 billion in this last year from $1.4 billion in 2019. Online is not just growing, it's a new velocity curve sitting on top of an already growing physical base.

And beyond the U.S., the global online gaming market is another $100 billion addressable market with 52 nations legalizing online casinos with over 10,000 operators. And with every new jurisdiction that legalizes gaming, it's a new payment opportunity for us.

And here's the best part. Seventy percent of all visitors to a brick-and-mortar casino have already expressed interest in digital payment options. The demand is not hypothetical. It's just waiting for the payment infrastructure in the industry to modernize.

Leveraging Euronet's infrastructure, epay built a complete payment ecosystem for our partners that covers both credit and funding, physical floors, online, every game type, every channel. Through 2 great partnerships, we built 4 great products.

On the funding side, Coin, a full digital wallet for pay now, pay now. At this point, I want to emphasize that Coin is not just a casino wallet. It's an open-loop wallet. So it works for lifestyle spend beyond the casino floor: food, beverage, retail, hotel, entertainment. No other gaming wallet does this.

Coin Direct is our walk-up solution, the fastest path to play. A player scans a QR code at the machine to fund in seconds. No app, no account, no session break.

Now let's discuss credit, play now, pay later. MULAPlay is the digital replacement for the traditional casino marker, the system used by casinos since at least the 1930s, paper-based, manual, slow. It often takes days to be approved, if you're approved at all.

MULAPlay replaces this archaic system with a digital credit decision in minutes. It's patented, regulatory compliant and built on Euronet's Ren platform. MULAPlay Digital takes this further, built on Euronet's Ren processing platform in combination with CoreCard's issuing platform. It's designed specifically for online gaming.

Both MULAPlay solutions feature no interest, no cash advance, no interchange fees. It's also important to note that Marker Trax drives the credit engine on behalf of the operator or the financial sponsor but takes no credit risk.

And brick-and-mortar credit is only available at the game, thereby preventing a player from what's called walking the money, a term used to describe a player cashing out his marker and walking out, leaving the property, something that every casino operator hates but has trouble stopping.

To help ensure payback, winnings are automatically applied to any outstanding balance at the end of the session. In other words, the player gets the net winnings. And any remaining outstanding balance is paid through the mobile app, allowing the player to quickly reset their credit line for continued play.

The early results are impressive. Across MULAPlay operator deployments, visits increased by 23%, demonstrating that credit drives loyalty, and net floor revenue grew 41% as a result of more time on device.

On the Coin side, deployments are converting walk-up guests who might have otherwise left the floor into a playing session. These early results are generating a lot of industry excitement. And as the technology service provider, epay earns money through a revenue share model with both companies.

Therefore, it's important to understand how they make money. Coin charges a fee as a percentage of the load into the wallet or onto the game. MULAPlay charges a repayment fee as a percentage of the outstanding balance.

And there's one more dimension to this story that I want to highlight. epay also built the data platform for both solutions that's fed from the payment ecosystem. Today, casino operators only know their guests through the player card. However, player cards are limited. They only see the activity on the casino floor.

With Coin and Marker Trax, operators have the opportunity to gain significantly more insight about their players. The data platform provides a holistic view, including funding behavior, credit behavior, resort spend and lifestyle spend. Using this data, a casino can retain and grow the player relationship in a way that was never possible with a player card.

Before I wrap up, I want to answer the question that I'm sure some of you are thinking: why epay for real money gaming? As you heard from Mike, Euronet moves money in all the ways the world needs. We are always in search of new use cases, especially those with synergies with our core infrastructure and our capabilities.

More specifically, we thrive when these use cases are complex or operate in heavily regulated environments that generalists simply can't manage, like real money gaming. Consumers are rapidly adopting lower friction payment methods like Apple Pay, Shop Pay, PayPal and others. To keep pace with these trends, the payment landscape within real money gaming needs modernization.

And I believe that Marker Trax and Coin, with the support of epay technology, are positioned to transform the payment landscape in gaming. Nine operators live across 3 states, 85 operators signed, we're off to a good start.

Let me leave you with 3 points. First, epay is deeply integrated with brands and retailers to form an omnichannel stored value distribution network that serves consumers in terms of how they want to participate in the digital economy. And again, think about it as a global load network.

The resulting infrastructure is hard to replicate, hard to replace, as you've heard from my peers throughout today. Second, through our partnership with Marker Trax and Coin, epay is entering a high-growth, underdigitized market as a solution provider.

Players are demanding alternative payment methods that align with their everyday experiences. Leveraging epay's technology, compliance frameworks and payment expertise, Marker Trax and Coin are poised to modernize the payment landscape of a $400 billion-plus marketplace.

Third, our competitive moat continues to widen over time. With each new brand, retailer, solution, the value of our network continues to increase. That compounding effect is sticky, which then presents us the opportunity to offer even more services and more use cases to our partners.

Thank you. With that, I'll turn it over to Juan Bianchi.

Good morning, everybody. These guys always make fun of me for being the long-winded guy on the team, but we're running a little late. So I've been told to offer you guys a comfort break.

If you guys want to grab 5, grab some water, go to the restroom and then we restart, please. So please, if you need 5, take them.

[Break]

Good morning again. Thank you very much for joining us and your interest. My name is Juan Bianchi. I am responsible for the cross-border payments segment of Euronet. I started in this business 30 years ago when I came from Chile. And my first job here in payments was behind the counter, helping people buy payments, cross-border payments, currency exchange and doing pretty much every back-office job that you can imagine.

So essentially, I have grown in this industry, and I've had a first row seat to the full evolution of the payments landscape and the trends that have been affecting our business. Hopefully, that serves as a calibrated instinct to identify the notable trends that will persist in the business moving forward.

As Mike mentioned, we started as a money transfer segment of Euronet. That's when we joined Euronet in 2007. We were a money transfer company focused on the migrant worker of the world in the physical channel. And since then, during the last 20 years, we have evolved where today, we service a lot more than just one single customer with a single use case. We service higher-value consumers, businesses, banks and financial institutions across the full spectrum of the cross-border landscape, hence, our name change.

At the cross-border payments segment, -- we're missing some content here. Apologies for that. Okay. So at the cross-border payments segment, we move money from one country to another at scale through the full cross-border payment spectrum. We do this. We service, as I mentioned, consumers, businesses and large financial institutions. And we do this through our network that services 200 countries through 12 billion digital account points and 63, 900,000 cash points.

We are organized into 3 business segments: Ria, XE and Dandelion. Ria has a physical channel and a digital channel. And then within the cross-border segment, we have our accelerators, which are made up of Ria Digital, XE and Dandelion. Those 3 make up 21% of our revenues and have been growing at 24% year-over-year. That's the business that we will introduce to you today.

Now let's dig into it. In this slide, we talk about -- in this slide, we talk about our barriers of entry and our right to win. Hopefully, you could see how we are structurally as a resilient business that it's not easy to replicate. It all starts with our network. It took us 40 years to build this network. It's not just about the points. It's also about the banking relationships, the licensing across that, the agent agreements, a system that connects it all with a real-time database and real-time compliance.

All that infrastructure is not something that you could build quickly in 5 years with some venture capital money. It takes time, detail and effort. And that is the network that allows us to compete across the 3 distinct TAMs that I'm going to describe. $900 billion or $0.9 trillion for the remittance market, $15 trillion for the small, medium-sized businesses and $40 trillion in the wholesale space. Most importantly, we're live across all those TAMs.

On compliance -- sorry, I'm going to go back one slide. On compliance, it's really important that you understand that we do not view it as a cost center or a constraint. We understand that compliance is a strategic core competency for us. We use it as a commercial differentiator, and it has served us well. Over the years, we have been deliberate about investing in our compliance efforts. And lately, we have adopted machine learning models, AI for us to be able to continue to scale our compliance efforts while optimizing the resources that go into it and also increasing the precision of our compliance programs.

This is really important and this track record is really important for our key stakeholders such as banks and regulators. our buying power. We move close to $80 billion across borders every year. That gives us the buying power to access better fees, better rates through exotic markets, exotic currencies. And when you marry those volumes with smart routing, you can direct those volumes to our direct connections and our direct partners in these last mile markets where the transactions are dispersed.

And that buying power essentially gives us the ability to access to better costing that then we can pass on to our partners and differentiate our value proposition. Most last point, we're live with stablecoin. As Martin explained, we're live, we're ready to start transacting. And our first use case is we're deploying it throughout our correspondent network for the settlement of our funds with them, which gives us working capital optimization. It reduces the float time of our funding. It reduces the need for us to have to prefund correspondents over long weekends and things like that. It's just-in-time funding at this point.

In the midterm, we will also start enabling on and off-ramp for stable coins with leveraging our network. And at the same time, we will allow our customers to hold and transfer stable coins through our platform. Now let me walk you through our customers from left to right. As I mentioned, we started with the guy on the left, the migrant worker sending money through the physical channel, about $385 on average per transaction. That's a business that Euronet acquired at that time. We had $200 million in revenues.

When we joined Euronet, we serviced 50 countries, and we had about 50,000 points. Since then, we have expanded to the right, as you could see, where we went live with digital, and we started servicing the migrant worker that wanted to transact with digital. Then through XE, we adopted the higher-value consumer and small, medium-sized businesses that have a need to make payments. And then finally, our wholesale model with Dandelion allows us to service banks and financial institutions.

Each of these segments combined put us in a TAM that is $40 trillion plus. But here, I want to -- okay, I see the screen where they're moving. Here, I want to make a point. As Mike mentioned, we're approaching close to $2 billion in our Money Transfer segment and a large portion of that, just over $1.5 billion still happens in a $900 billion TAM. And we only have just over 7% market share. So we still have a lot of growth opportunity within our core business. And at the same time, you could see how well positioned we are to grow into these other very rich and interesting TAMs.

One last point I want to make here is that the physical channel, contrary to some conventional wisdom, it's not dead. Half of the money transfer remittance business still lives in that channel. Now I want to talk about some of our key achievements and performance highlights. The overarching theme is that we have consistently outpaced the market by about 2x. This has not been a single quarter story. This has been a constant in our execution. Our compliance record, again, remains impeccable, and I will repeat it. This is very important when you make compliance mistakes when you are subject to regulatory enforcement that can have severe reputational and financial damage.

So that track record serves us as a strategic asset when we're introducing our company to other actors that care about that same element. Now I want to take a moment and talk about digital because the trajectory here is important. We are live in 29 markets. In Q1, our transactions grew 35% and revenues grew 42% -- and very importantly, on the bottom right-hand corner, I want to point you out that 58% of the monies that we disburse is done through digital delivery. That's a function of us having access to 12 billion accounts that can develop -- deliver that money. And that is one of the key growth drivers that we have in our business.

The demand for people to receive money, it's going faster and faster to digital channel. And we have probably what I would say, the best digital payout network in the world. And also, it's very important that 52% of the money that they pay us with, it's in digital form. So the notion that customers will pay only with cash in the physical channel, it's not correct. We see customers coming to us paying at Ria stores, at Ria agents with wallets, with debit cards.

So when you understand that, you start to recognize that our physical channel, it's a structural advantage that helps us serve our customers when they need us, where they need us and in the way that they want to pay us. So it's a differentiator and an advantage over somebody that is a pure digital player.

Here, we want to talk about how we grow the business. Our sport, it's about distribution, channels, more geos, more products and a network effect. And I'll tell you that it's a lot easier than when you are inside the Euronet circus tent, and you can leverage everything that my colleagues have explained up until this point. Reflected on that is our journey, how it accelerated since we joined Euronet. We would have not been able to do this on our own, and you could see other players that on their own, they have not been as successful.

Our business is very straightforward. We make money 2 ways, with customer fees and FX. And we make those 2 revenue streams in every transaction we sell across the full cross-border spectrum through every distribution point and every network point we have. So to understand how we have grown our business from what Euronet acquired in 2007 up until this point, I want to take you through a little exercise. bear with me here.

So imagine you have a business that is present in one state and has service to only 4 countries. So how would you grow that business? Well, you start signing up agents in the independent channel. And that's how you start growing your business. Each agent that comes, you make more money. You have an opportunity to make more revenues. How do you grow from there? You take that business nationwide. That means that you need to get licensed in every state and then you introduce your business into every other state, still sending to the same 4 markets to the same destination countries. So you're making money by geo expansion.

Then on top of that, you launch digital. So now you've introduced a new channel over a business that already has a licensed footprint that has already customers in the independent channel, now you launch digital. So now you are compounding your sales and your growth through adding a new channel. Then your network grows from 4 countries to 200 countries. What do you do at that point? You brought in more inventory to your footprint. So same-store sales happen. You compound and within your same footprint, you have more product, more inventory to sell.

And then that business goes internationally. You go to Europe, you go to Asia, you go to LatAm, more geo expansion, more compounding growth. And then you have this global network that has this platform, these corridors, these channels that is servicing money transfers. But then you have all this paid infrastructure that you can leverage towards adjacent markets. So that's when you start going into higher-value consumers, businesses, you launch a wholesale network that a wholesale service that leverages your payment capabilities and you can service banks. That is the power of the network effect. That is how you see compounding, and that is our story. As I said, that story is much easier toll when you are inside Euronet.

Now I want to talk a little bit about our accelerators. To remind everybody, our accelerators are via digital, Ria Digital, XE and Dandelion. These accelerators are 21% of the cross-border segment's revenues, and they're growing at 24% year-on-year. Starting with digital, the TAM is approximately $900 billion for the remittance market, half of that TAM is in digital, the other half in the physical channel. As I've told you, we have a strong foundation to build upon. In Q1, our transactions were up 35% and revenues 42%. We are live in 29 markets, and we have a clear road map how to expand.

Our growth levers are multidimensional. We will continue to improve on our paid channels, optimizing our customer acquisition. We have seen meaningful CPA improvement over the years, but we still have potential to continue to improve that as we scale. We are opening new distribution, and we're live with WhatsApp. As I told you, new channels is important for our growth. We are expanding into 5 new geographies in the short term, and we have a plan to go into 15 more new geographies over the next 3 to 5 years. Geo expansion is also important.

We are expanding digital partnerships where we embed our digital offering into third-party apps and websites, more distribution. And we are building our product suite that includes wallets, Ria-branded cards and paying interest on health balances. All of these product features, needless to say, extend the lifetime value of our customers. But I also want to mention another very important strategic opportunity we have with digital, and this brings in our physical channel. We've realized that our omnichannel customers, meaning a customer that transacts with Ria in the physical channel and in the digital channel is meaningfully more valuable to us than a customer that only transacts in one channel, call it, single digital or only brick-and-mortar.

When they transact in both, they're a lot more valuable for us. So that insight led us to launch Ria Connect. And essentially, with Ria Connect, what we do is we bring in our agent network as part of the digital ecosystem. We make them part of it instead of making them excluding them from that journey. Since we launched this program, agents have referred 40,000 new customers to our digital platform. We are scaling this program in the U.S., and now we're live in Europe and in Asia Pacific with it.

This is important. You've seen Amazon do it with Whole Foods. And also, you might have read that some of the largest fintechs out there are recognizing that having a physical channel presence enhances their digital offering. We have been in the physical channel all along, and we recognize this trend, and we know it's a structural advantage.

Next accelerator is XE. XE is a premium asset that competes in a $15 trillion TAM. We service higher-value consumers that have a need to send money cross-border like people in this room and also small, medium-sized businesses that have a need to make cross-border payments. We have launched our Galileo platform, which is a platform that services small, medium-sized businesses with multicurrency accounts and FX risk management capabilities. Our corporate -- digital corporate revenue in XE has been growing at 16% CAGR from 2023 to 2025. Our embedded ERP and API revenue has grown 92% in XE CAGR in the same period. Granted, it's a smaller base, but still those trends are real, and those are the trends that we are accelerating in our execution in XE.

So our growth path has 2 tracks, consumers and SMBs. For consumers, we will continue to deepen our value proposition for them. We will introduce multicurrency wallets, XE-branded cards, cards for travel money, P2B payments, and we will pay interest on health balances. But our primary focus in XE will be the SMB segment. Why? Because 76% of that market still lives with the banks. So the disruption, the fintech disruption that you have seen on the consumer side has yet to happen with the SMBs and the banks where SMBs are underserved. That is the opportunity. That's what we're getting after.

So to capture that, we have the platform ready. We have disbursements, collections, holding balances, scheduled payments, ERP integrations, direct API access, all powered by our Dandelion network. That is what businesses need to make payments. XE has been growing single digit for us, mid-single digit along with the market, like a 5% CAGR. Our goal is to accelerate XE to high double-digit growth and have it start contributing the same way that Ria Digital does for us today.

Now with Dandelion, we wrap up with Dandelion, we wrap up our accelerators. First, let me explain to you what Dandelion is. So basically, Dandelion, there's still some confusion out there. Dandelion is the moment that we realized that our network had excess capacity to pay transactions for the broader ecosystem where there was a real need for real-time cross-border payments. We have something that the banks don't have and need. So that led us to monetize that opportunity.

So Dandelion is a platform where we offer wholesale payment capabilities and infrastructure for real-time cross-border payments. The TAM where we play at, it's $40 trillion. Our clients are the largest banks in the world. You could see some of those names on the page. These are marquee customers, AAA customers that are very demanding and that it's a testament to our value proposition. The business model that we have in Dandelion is we connect with them through an API, which is powered by our own REN technology. It's one API and then they connect into our network that brings 200 countries, 12 billion digital points, 630,000, 900,000 cash locations. It's one integration and they get the world an immediate scale.

These are onboarding banks are long sales cycles. They run competitive RFP processes and then you need to start an extensive integration program. So it takes time to build. But the flip side, it is stickiness. Once a bank integrates Dandelion into their payment stack, that relationship is durable. Our goal is to continue to add network participants, continue to feed our pipeline and materialize it and then continue to deepen our wallet share from existing clients that we have. Our expectation for Dandelion is high double-digit growth for the next 5 years.

That covers our accelerators. Now I would like to summarize our growth opportunity and one more slide after that. Hopefully, you can appreciate that every single business unit we operate has substantial growth potential. In physical remittance, the TAM is $400 billion. Half the global market still lives there. That business unit has been navigating some slower period now. The main drivers for that are geopolitical influences, the U.S. immigration policy environment and to a lesser extent, the conflict in the Middle East and the war. We don't think neither of these are permanent. And through our growth efforts that we have dedicated for that channel, such as omnichannel, bringing them part of the digital ecosystem, exclusive deals, network growth, international expansion, we expect that business to return to low to mid-single-digit growth.

On digital remittance, Ria, that's the other half of the remittance market, 450 billion. I'll repeat it again. Q1, 35% year-on-year transaction growth, 42% revenue growth. We're growing fast, but we want to grow faster. How are we going to do it? More geo expansion, more product depth, optimizing customer acquisition, expanding our digital partnerships program, and we expect this to continue to be a high double-digit growth for the next 3 to 5 years.

On Dandelion, wholesale, it's a $40 trillion TAM, long sales cycle, high retention business. We will continue to chip away at it, add more customers, our pipeline is growing fast and then continue to materialize that pipeline, implement it and then as we add capabilities to our network, deepen our wallet share from existing customers. Our expectation for Dandelion is high double-digit growth for the next 5 years to come.

Most importantly, across each of these sub businesses, we have a clear strategy, a team in market and a repeatable playbook that takes us to market. That is our growth story. To wrap it up, let me leave you with some final thoughts. Hopefully, by now, you can appreciate that we have a business that it's not easy to replicate. It's a resilient business model with compelling growth initiatives. We have one platform that it's very hard to replicate, and we're deploying it across multiple growth engines simultaneously.

Our core physical business is healthy. It generates a lot of cash, and we use that to fund our accelerator initiatives. It's not a legacy business. It is a structural advantage over pure digital players. Our accelerators are not concepts on a PowerPoint or a road map. They are in market with dedicated teams, clear strategies and measurable traction. We are uniquely positioned across the full market spectrum. We have a compliance infrastructure that is best-in-class. You don't get to do this if you don't get that one right.

And we have a team with a proven track record that can execute on this. Over the next 3 to 5 years, we will demonstrate to you the compounding power of this platform in both revenue growth and margin expansion. I thank you for your time. And now I would like to introduce Rick Weller, our CFO.

Thank you, Juan, and good morning. It's good to see a lot of faces that I haven't seen for years. Since I know many of you and have been talked to you over the phone or in person, I'll spare you the details of what my background is. Let me jump in and get started.

My goal today is to pull together what you've heard into a consolidated financial picture to illustrate what drives our performance and how we deploy capital to create long-term customer value. As you have heard, our model is built on a diversified revenue stream, strong cash generation and disciplined execution across cycles. These fundamentals give us the flexibility to invest in growth, maintain a strong balance sheet and return capital to shareholders.

I'll start with the historical growth. As Mike said earlier, Euronet has a proven history of long-term revenue and earnings growth. In fact, over the last 20 years, revenue has grown at 12% compounded annually. Those 20 years covered various global economic cycles, including the financial crisis of '08 and '09, COVID, demonetization of cash, to name just a few. And I think it's fair to say you could say that we may be in one of those cycles now with the current U.S. immigration policy.

Over the last 5 years, we have grown revenue at 11% compounded annually and adjusted EBITDA at 20%. While we understand historical performance does not guarantee future results, we have a strong track record of producing revenue growth even in challenging conditions. I believe this is largely driven by 4 factors: diversity across products, channels and geography and disciplined balance sheet management that supports growth.

This slide illustrates the strength and the balance of our business model. Payments infrastructure remains our most profitable segment, delivering solid growth with attractive margins. The historical ATM-based business continues to deliver strong cash generation that we reinvest into higher growth opportunities across the platform. These investments include diversification of the business through additional banking, infrastructure agreements and more merchant acquiring agreements together with CoreCard customers, providing growth well into the future.

epay provides diversification with steady margins and broad geographical reach. As Kevin mentioned, we see attractive accelerators to grow into the future. Cross-border payments continues to be an important growth engine. Our business is perfectly positioned to intersect all segments in the cross-border payment space. We expect digital adoption, XE expansion and Dandelion wins to continue to outpace the market, delivering solid growth on a go-forward basis.

Importantly, the consolidated results reflect both growth and margin expansion, demonstrating how our diversified product portfolio allows faster-growing segments to scale while higher-margin businesses support overall profitability. A core strength of the business is our ability to consistently generate cash. Over the past several years, adjusted cash earnings generated from operations has grown steadily. It allows us to focus on capital allocation that supports organic and strategic investments and will drive future growth of the business, together with share repurchases that deliver value back to the shareholders.

This cash flow has funded meaningful expansion, including acquisitions like the 2001 purchase of the Piraeus Bank Merchant Services business, which, as Nikos has said, has grown 3x since we bought it. as well as build-out of platforms like Dandelion and REN, while adjusted earnings have compounded at a nice rate. The takeaway is that growth at Euronet is self-funded. Our cash generation gives us the capacity to invest even through difficult and challenging cycles without stressing the balance sheet and delivering strong returns of capital to shareholders.

That cash generation is the driver behind the accelerators you've heard about today. We've been disciplined about investing in new high-growth use cases in markets with significant TAMs, which will drive Euronet's performance over time. I will not repeat what my colleagues have had to say about these accelerators. But suffice it to say, these are large TAMs. Each of these accelerators have proven growth through '25 and are gaining momentum. Moreover, we expect digital assets like stablecoin and tokenized deposits to further fuel the momentum.

Here, you can see the evolution of our revenue mix as digital payments become a larger share of the business. Digital accelerators, including payments infrastructure, Dandelion and digital cross-border are growing faster than the more traditional channels and steadily increase their contribution to total revenue. This mix shift matters because these digital categories tend to be more scalable, improve the overall cost structure and support long-term margin durability. And these accelerators will continue to shift our mix.

Here, you can see we expect our revenue mix to continue to shift from 18% to 15% from ATMs through 2028. That revenue is not going down, but rather the digital accelerators will drive the growth. We expect this trend to continue with digital sources driving an increasing percentage of total growth over the next several years.

I also want to point -- touch a bit on accelerators and how we're thinking about disclosure around these initiatives going forward. As you've heard throughout the day, these initiatives span all 3 of our segments. They include areas like payment processing and merchant services within the Payments Infrastructure segment, Dandelion, XE and digital cross-border in the cross-border segment and real money gaming within epay.

The accelerators make up 21% of our 2025 revenues, growing at a 3-year CAGR of 20% to 25%. Collectively, we think these businesses represent an important part of Euronet's long-term growth profile and where a lot of the future opportunity for the company sits. Let me pause here for a moment. I cannot help but to think as we -- as the investment community thinks through the newly disclosed revenue mix, together with the understanding that 21% of our revenue is growing at a rate of 20% to 25% compounded annually that the market will begin to recognize the durability of our foundation and growth continuation.

We do not believe that EFT valuation reflects the long-term durability of our earnings power. Accordingly, with a more holistic view of our earnings power, the market will factor in that durability and re-rate our valuation more in line with businesses that consistently produce double-digit earnings growth. Hopefully, you'll see today that our earnings growth rate of 10% to 15% is durable. We are dedicated to proving the future does follow a pattern of the past. Our proof is not feelings, but rather facts, technology, management, markets producing real long-term cash flow growth.

Going forward, we're going to provide disclosure around what we're calling digital accelerator revenue, which is the combination of all of those accelerator products you've heard about today, along with expectations of growth over time. We will report on the total rather than the individual parts. And the reason for that is pretty straightforward. These products are all at different stages of development and adoption. Some are scaling faster today. Some are in earlier parts of the growth curve. And over time, that's going to move around.

The way we look at these internally is less as stand-alone products and more as a portfolio of next-generation growth platforms that we're building on top of Euronet's existing foundation, distribution network and cash-generative core businesses. In a lot of ways, these opportunities, they operate more like emerging platforms rather than larger ecosystems that are more mature that you would necessarily want to follow on a quarter-to-quarter basis on their own. So we think providing growth accelerator revenue on an aggregate basis gives investors a cleaner and more consistent way to track the overall progress of these initiatives and their increasing contribution to the future of Euronet.

I want to spend a couple of minutes on disclosure and KPIs because I know that's an important topic for most in the room. And look, I understand the desire for simple, clean metrics that you can build a model around. If I were in your seat, I'd want the same thing. But hopefully, after hearing from the business leaders over the last couple of hours, you've gotten the sense for just how many different products we have and transaction types that power the business.

Even within a single segment, the right way to think about the economics in one -- on one side of the business may not necessarily describe that on the other side of the business. In some cases, transaction counts matter. In others, customers, terminals or transaction value or maybe FX spreads or even revenue per unit per month. And sometimes volume and revenue growth don't necessarily move together in a straight line. So the reality is there probably is not a small handful of KPIs that neatly explain Euronet in a way that both is comprehensive and predictive.

We've tried to provide more disclosure today, and hopefully, some of the additional information helps you better track the direction of the business and the progress we're making. But I also want to be realistic. If we tried to break this company down into every relevant operating metric, we'd probably end up giving you dozens of data points across the different business products, and I'm not convinced that anybody's model would actually get any better or more predictive as a result. At the end of the day, we're trying to -- what we're trying to do is to give you useful information without creating a false sense of precision around products with very different economics and growth drivers.

Here, you can see Euronet has multiple durable levers to drive earnings growth. First is digital transformation, entering new geographies, extending services from retail to digital. Third is synergy realization, where we connect platforms, networks and acquisitions to unlock additional value. And finally, operational optimization, including cost discipline, site rationalization and the use of automation and AI to drive efficiencies. The combination of these levers allow us to grow revenue and earnings over time while adapting to changing market conditions.

Turning to the outlook. As you've heard from each of my colleagues, we see a clear path to continued growth. For 2026, we expect revenue of approximately $4.5 billion. We expect EBITDA of approximately $800 million. And as we've shared with you previously, we expect adjusted earnings per share to be between 10% and 15%. And as we've said in the first quarter earnings call, we expect second and third quarters to carry less of the full year mix because digital initiatives are helping replace the sharpness of the ATM tourism seasonality.

Looking longer term, the business supports mid-single to upper mid-single-digit revenue growth. upper single-digit EBITDA growth and adjusted earnings per share growth in the range we've previously communicated on a 3-year CAGR of 10% to 15%. At the midpoint of this growth rate, our EPS would be $13.68 in 2028. Looking for the revenue growth, we expect the payments, infrastructure and cross-border payments segments to lead the way at the upper ends with epay at the lower end Moreover, with EBITDA growth outpacing revenue, we would expect to see EBITDA margins expand 100 to 200 basis points over the 3-year period with segment contributions following the revenue growth in similar pattern.

In addition to the operations contributing to the 10% to 15% adjusted EPS growth, we anticipate we will utilize at least 1/3 of our free cash flows to repurchase shares or roughly $125 million to $150 million. This will contribute another 4% to 5% on top of operations. We expect tax rates over the 3 years to tick up a couple of percent points because as you've heard, we're growing more in the U.S. with CoreCard and the digital products. And in the past, that has been historically sheltered by foreign tax credits. So a stronger blend of U.S. will increase our tax rate a bit.

The outlook reflects the contribution of digital growth, operating leverage and disciplined execution across our platform as well as continued returns of capital to shareholders. Capital allocation at Euronet is not guided -- is guided by a similar framework. This is not a rigid framework, but rather a disciplined one. First, we maintain balance sheet strength, targeting investment-grade metrics. Investment-grade rating is important because not only does it impact the interest expense we pay on debt, it also helps provide our relationship partners with confidence we will be here for the long term, similar to the long-term contracts we sign with them, and we will protect the movement of their money.

Second, we invest in proprietary technology and new solutions that enhance scalability and returns like REN and Dandelion. Third, we pursue disciplined strategic acquisitions that expand capabilities and geographical reach. And finally, we return capital to shareholders through share repurchases. This approach provides us with a balanced long-term disciplined approach to capital allocation.

This slide, you can see capital allocation at work. From 2002 to 2025, we deployed approximately $1.5 billion of capital funded by free cash flow. Nearly half of that went for share repurchases, driving a meaningful reduction in share count and a strong return to shareholders. Less than 30% went to strategic acquisitions, and the remainder was deployed into CapEx to continue to grow and improve the network. Importantly, this was accomplished while maintaining an investment-grade profile, underscoring the discipline behind capital decisions.

As I wrap up, we believe Euronet has a proven ability to perform through product cycles, economic cycles and geopolitical volatility. Our global payments network is unmatched, and the payments world is rapidly changing. The network and the markets continue to generate new use cases and revenue opportunities. And most critical of all this continued growth, the business produces strong free cash flows, enabling reinvestment, balance sheet strength and significant returns to shareholders.

With that, I'll turn it back over to Mike.

Thank you, Rick. We're finally coming to an end here. So let's see there we go. Thank you. I hope today gave you a sense of what I see every day, a talented and experienced leadership team, each an expert in their own area. And they come together to bring a diverse set of perspectives to you and to me that make Euronet what it is today.

As we close, I'd like to leave you with a few takeaways. We operate a diversified global payments platform with multiple durable growth drivers. Our core businesses generate strong cash flow, as Rick said, supporting sustainable earnings growth. We are accelerating our shift towards digital and technology-driven revenue streams. We have a scaled integrated platform that enables customer expansion and cross-selling across our segments. And we remain disciplined in our approach to capital allocation, as Rick said, with a clear focus on long-term shareholder returns.

But the biggest takeaway is we're a simple company, as I mentioned. We are purpose-built on modern technology, and we just move value from A to B. I want to thank you all for spending a couple of hours with us today. I would now ask the management team when I'm through here to come with me on stage, and we will take your questions. The first questions we'll bring a microphone around. We'll go to the analysts, and then we'll open it up to everybody else. But thank you very much for taking your time with us today.

[Presentation]

Rayna Kumar from Oppenheimer. Thanks for all the details today, especially on the accelerators. I'm just wondering what's the underlying margin of the accelerators combined? I'm just curious if as the accelerators become a bigger part of your business, could we see EBITDA growth even stronger than the high single digits that you spoke about?

Well, Rayna, I'm sure you'd all would like to increase your model significantly. And -- but the short answer is, yes, our accelerators all produce better margins on average than what we have across the business. And so we would -- that -- as I said, we've got a -- we expect 100 to 200 basis point improvement in our margin. You saw that our operating income EBITDA is growing faster than the revenue. So I think that, that's reflective of what we see out of the accelerator. So both good growth and at better margins.

Vasu Govil from KBW. Thanks for the presentation today and especially for the revenue guide. That was very, very helpful. Maybe just a high-level question on how you came up with that revenue guide, just understanding the philosophy of is that sort of the floor of what you can -- you think you can do over the next few years? Is that a more balanced view? And just given how much of a factor macro is to your business, like how have you baked that into the outlook?

Well, certainly, macro is affecting one of our businesses significantly, and that's the money transfer business with the geopolitical stuff or actually the political stuff that's going on here in the U.S. with respect to immigration. But at the end of the day, we think we've got a balanced set of products, a balanced set of geographies, and we believe that we can get there. Now did we sandbag you? I I'm not going to say. We'll just have to see. We've got a very challenging year ahead of us because of the things that I just mentioned, but we believe that over the long term, we can achieve those numbers.

Chuck Nabhan from Stephens. Thank you for doing this and having us today. Just following up with a question on margin expansion. outside of the mix shift, could you talk a little about any internal initiatives you might have to drive efficiency either through AI or any other cost containment areas such as vendor consolidation?

Martin? Take a shot.

Okay. Rick will tell you about the finance side, but definitely, what I started on during my presentation, we are really the starting point of not the AI introduction because we have done that. but it's about reorganization of how things are built, how we deliver. You can see that we are taking a couple of things out, driving with the primary focus of efficiency. But yes, this will definitely have an impact on what you said.

I would add to it. I don't think we've tried to outthink how much benefit we get out of things like AI. There are certain parties out there, some famous guys that have said they'd take out 40% of their people and things like that because of AI. We're starting to make meaningful progress. We've introduced AI to do things like compliance, like customer service. So transactions now are handled by the computer without any interaction of people. The ability to look at compliance. And I mean, Juan should be really proud of the compliance functions that they've built in the money transfer. We were recently visited by one of the biggest banks in the United States, and they were incredibly complementary about what we've done to improve the process of compliance, and we're using AI in that application to identify sources of funds, potential problematic characters, folks like that. This is all now being done through AI.

So as I said, we haven't tried to outthink how much opportunity we might get there. There could be well better opportunity there. I think we've got a fairly reasonable view on what the outlook is without being just overboard.

Great. Thanks, everyone, for all the information. It's Chris Kennedy from William Blair. Slide 20 was a really good slide showing the land and expand model here. Can you just talk about kind of what the type of growth is embedded in your expectations from growing with existing customers?

Which division was that on?

The entire business. Land and expand.

Yes. Well, I mean, that's what we've done through all these years. The nice thing is we've got a really strong business and our Modus operating has been real simple. use that same platform because it gives us efficiencies and quick get to market, right? Number two is we want geo expansion, right? And number three is we want to add products to those same geos or within the divisions. And that's what we've really been doing for 20 years. And what -- and the nice thing is, as Martin said, you've got this platform here to get to that next one is not like a rework. It's more like just adding a little thing on, and that's really been our modus opernde in virtually all of our divisions.

It's Darrin Peller from Wolfe Research. I think it was great for you to call out the accelerating aspects of the business and how they're growing. I think what your stock is pricing in for what it's worth is also a concern that the non-accelerating businesses are going to be negative, not just that you're going to -- not just an underappreciation for what you do have. in the accelerating side. And so I guess there's 2 questions that come with that. Number one, is help us with why you have conviction that the ATM business stays stable, that the cash money transfer business stays relatively stable? And then secondly, are there any businesses that would make sense to divest to maybe move out of the run rate so that you can actually help use that cash for a little bit of an accelerated pace?

So first of all, for the people who think that the -- that our non-accelerators are going to kind of fall off the cliff either slowly or quickly, there's no data. There's absolutely no data that purports that. When you have -- when you talk about cash, and that's one of the things, it's -- it's 18% of our revenue now, and it's going to go down to 15% over the next 3 years because the other parts of the business are going to grow. We still see a lot of opportunity for ATMs, both in Europe and elsewhere.

Even in Europe right now, as Nikos mentioned, 50% of everything purchased in Europe today is purchased with cash by good, okay? That's not the U.S. You've got to get your head out of the U.S. to understand our markets. When you look at where Nikos has expanded into some of these very cash-based new tourist kind of areas, whether that's Philippines, Malaysia, Morocco, Egypt, now South America as well, go there and try to live on your American Express. It just isn't going to be able to do that.

I got -- I saw somebody sent me a picture, we're in Morocco. We love Morocco. It's really profitable. Somebody sent me a picture outside of the market at Marikash. There were 35 people in front of the only ATM there, okay? So cash is still here with us. It's going to be here at least until your models are done, okay? And so -- and that's why -- and I'm starting with that one because that's the one I catch the most grief from. Then you go over here to Juan, and he's telling you that of the entire family remittance market of $900 billion TAM, okay? Half of that is in the physical channel still. The digital channel has been around for almost 30 years. and they've only been able to accumulate half the market share.

So like everybody isn't going to go to digital next week because some people prefer not to go to digital and the new entrants to any country don't have a bank account. It takes -- it could take years to get a bank account or maybe they like to budget themselves with cash. So they're going to go a retail thing, and they're going to go walk in and they're going to say, "Oh, Juan, you want to send money to the guy behind the counter is little bodega. He knows Juan. He's going to say, Juan, do you want to send money back to your mom. That's going to be here with us for a long time.

With respect to epay, epay has got all kinds of opportunities of just more products and more geos. And now who are we hooking up with with people like PI and people like Nubank and people like Revolute, all these big fintechs that all you guys get hot and bothered with, they're our partners here with respect to epay. So they're not going to fall off, but they're just going to grow slower than our accelerators.

So just the second part of that was whether there's any assets that maybe make sense to prune so we can get a cleaner.

Well, one of the things -- Martin had a great slide. He showed how these -- each of these businesses cross-sell to each other and allow us to provide combinatorial solutions to customers that no one can match. So to spin one off and then get hit with a big tax burden on that, which everybody forgets to calculate, we would be left with a hole, and we wouldn't be able to do these combinatorial solutions. So that's not really first on our mind.

My other question was, when I look at some of the numbers you put up, they were huge in terms of both volume and reach and scale and transaction counts relative to any of those big names that we all cover in fintech, they're up there, right? But your revenue correlation to those numbers, you would think should be higher. Meaning is there a pricing dynamic going on? Is there an opportunity -- it's really my big question.

I think in some of those digital ones and somebody could correct me if I got this wrong. I mean we're still early in the curve. And until we get a little bit more maturity in some of these curves, we'll see that start to realize.

This is Owen Richard, Northland Capital. Super quick for me. Just of the 6% to 7% growth through '28, how much of that is organic versus inorganic?

We have all that -- only thing in our projections is organic. And if we get lucky and we find a great acquisition like we do with the Piraeus Bank merchant acquiring business or now it looks like we're having with CoreCard, that would help us.

Pete Heckmann with D.A. Davidson. In terms of your assumptions around the IAD growth rate over the next 3 years, how are you thinking about the metrics there in terms of transactions per unit versus net increase or decrease of transactions? And to the extent that you look to deploy fewer net new machines, does that mean that CapEx as a percent of revenue potentially goes down or free cash flow conversion from adjusted EBITDA goes up?

So I'm going to let Nikos finish this one. But a couple of things there. First of all, you'll probably see us invest less into Europe because Europe is -- I won't say it's saturated yet, but it's approaching that place. But the whole rest of the world is wide open for us. I mean it's all virgin turf, and we're going to go after that very aggressively. What we do have -- the nice thing is these machines, you can -- by the way, we do pick -- try to pick the very best sites out there, but we miss maybe 5% of the time. And when we miss, we have to yank them, put them somewhere else. So the nice thing is they are movable, and we can move them to new markets, new locations and so forth. As far as where we're going to go, why don't you?

So I would like to add to the previous discussion. Governments in Europe are regulating the sustainability of gas. So we have more than 16 countries that regulating sustainability of cash. During COVID, we have a steep decline. After COVID, we see a plateau of about 1, 1.5 in European Union. Outside of European Union, it's even better. So -- and we have over 50% within European Union, EU ECB data that supports that. That's one.

The second thing is that economics have changed after COVID. The cost of running ATMs because of cost of cash, cost of service, all of this, it's a very heavy operations that change the economics. Also, the revenue economics have changed. Schemes have introduced different type of pricing surcharge. We have 16, 17 markets in Europe that surcharge is allowed like in the U.S. Before it was only interchange interchange markets for domestic and international transactions. Now there are international transactions and domestic transactions, cash withdrawals are surcharge transactions. So that's the economics there from the cost perspective and from the revenue perspective can change. And that makes us do optimization, optimizations in mature decline markets, going more aggressive in other markets where there's still like space for growth.

In the last few years, like Mike said, we launched Philippines, we launched Malaysia, we launched Egypt, Morocco, Mexico, Dominican Republic, Peru, and we launched 4, 5 countries in Europe that were not present, like Belgium, Serbia, Monteneigro and a few more that I can like name, we're in more than 42 markets at this point of time. So we see -- we see markets outside of Europe that there's still growth. And it's like the early times that we launched ATMs in Europe for tourist targeted 15 years ago. So that's the situation.

Now again, on the sustainability, I should say something more. These regulators are like on sustain and sustainability of cash, we saw in Switzerland that they hit a referendum and they embedded this into their constitution. So it's -- cash is not going to go away, like Mike said, anytime soon.

Andrew Schmidt, KeyBanc Capital Markets.

Let me Himanshu, what's happened with outsourcing in Asia, which is a whole different market.

Yes. So outsourcing is a trend that we -- that we've seen over the last few years, and we expect that to kind of increase going forward. At the end of the day, banks are moving towards more kind of asset-light models. So they want companies that already have the expertise. They already have shared infrastructure that we've invested into, whether it's Philippines, Malaysia, a number of these markets, we already run our ATMs. So we already have the infrastructure that has been set up in place.

So why would a bank basically try and incur the cost in terms of people, in terms of infrastructure. We have the economies of scale. There are studies out there that providers like us can do it at 30%, 40%, 50% cheaper than what banks can do it. So economically, it makes absolute sense for the banks to really outsource running of their ATM networks to experts and providers like us.

But historically, they haven't done it in Asia. So even the bank regulators that we talk to in Asia, when we say that a nonbank entity wants to do -- drive their ATMs, they go -- they look at the regs, they go, "Oh, well, that's not even in our regs. So the first thing we had to do is overcome, hey, letting a nonbank operate the assets. Now Himanshu has gone to the banks and said, "Hey, we have this outsourcing model that's been very effective, as you've heard from Nikos, we want to do this in Europe. And we're having success in Asia. And we're having success with those banks.

And we're the proof point.

Andrew Schmidt, KeyBanc Capital Markets. I want to follow up just on the -- I know there's a question on product portfolio, but maybe I could follow up. Euronet has done over time, a great job of incubating products and then expanding them significantly. You see that show up in the digital accelerators today. But on the flip side, when you have that methodology, you also end up with some things that don't work and don't scale as expected. So maybe talk about the efficiency with pruning the things that don't work. And then the second question, which is sort of a related question on the other side, over the next 3 years, will there be more opportunities for M&A as the platform has come together pretty significantly to further shift the mix?

Well, I sure hope there is more opportunity on the M&A side. We'll have to see. But we're picky because at the end of the day, when you buy somebody, you're stuck with that person. and so -- with that company. And you've got to hope that you make a good decision. Over our past, we've had a couple of not perfect decisions, let's put it that way, because we've probably done 50 acquisitions in our -- since Rick's been here. And -- but luckily, the big ones, the thoughtful ones have worked out very well. This guy right here to my left, we acquired his company, and I got lucky enough to -- he came along with the show. And the -- and you saw, we go from $200 million in revenue to almost $2 billion over these years.

So we'll still look, and we're throwing off all this cash. We need to do something with it. If I can find something that can grow faster than the return on capital that I get from buying back stock, that's what we'll do.

On the product side, I'll speak first and let my peers discuss it. We're fortunate to have a boss that likes to see a lot of mud thrown on the wall. And he encourages all his leaders to take big swings at product plays. And to your point, Andrew, the tough part is to know when to stop. And that can sometimes be tricky in our space because there's such a heavy regulatory and compliance component to most of the stuff that we do.

But what I will say, the guy that's happiest in the room are on the stage is Martin Bruckner because we bury him with mud balls. And he, with the tools and the maturity of the platform, he's able to handle more and more and more and deliver faster and faster and faster. I spoke to you about the Marker Trax and Coin opportunity with real money gaming. That was really made possible by the fact that we used REN. And the amount of customization that we had to do on REN to serve and develop the solution for Marker Trax and Coin was minimal. I mean, Martin 10%, 20%. So we didn't have to start from scratch to build that. We use the foundation of REN to then go and customize for the application in real money gaming. And so we're getting faster. We're able to do more. And with AI, I think it's going to even make that better.

Just one quick product follow-up. Just on REN on the opportunity to modernize payment infrastructure for banks. Maybe just talk about how those conversations are trending. Obviously, these are long sales cycles. You've had some wins in some markets. But maybe talk about has the conversation changed recently? And how you sort of are differentiated versus the other names in the space that do similar things?

Sure. So in terms of the pipeline visibility that we have in the business right now, so I think it's not about the sales capacity or the investment in the GTM that is important. But what's really important is basically the reference quality. The only way you can win a bank is basically you need to get it in the shortlist. And for that, you need to have references. So I think that in all the markets where we already have an installed base, the conversion rates are much higher. The pipelines are a lot better in all of those markets. So that's with respect to the pipeline and basically the visibility on the business.

The second component is the deal segmentation. So when we talk about fintechs, typically, the sign-up process is a lot quicker. They are not encumbered by legacy technology. They appreciate what you bring to the table. They're not resistance to risk, so on and so forth. At the same point in time, the implementation times are also a lot quicker compared to legacy banks where the implementations could run into 24- to 36-month cycles as well. So those are the 2 key dynamics when we think about pipeline visibility. It's underpinned by the installed base. It's underpinned by the geo expansion that you're doing and every geo expansion is at a different stage of GTM maturity. And then there's also partnerships. I think that's quite important. We've recently announced a partnership with DXC, and we're starting to see kind of the pipeline kind of be a lot more visible and deepen as a result of that -- those types of partnerships.

In terms of the competitive advantages, I'd say against a lot of our competitors who really just focus on either one segment of the overall payment value chain. So it's either issuing, some of the guys just focus on issuing. We have a multi-rail and a multiproduct offering, if you think about it, right? And I alluded to this in my presentation, the fact that we operate across multiple domains, each capability that we build has really multiple buyers. So we could go into a bank, start off the conversation with ATM outsourcing, but then very quickly, the conversation can go towards debit issuing and now towards credit issue.

I think that's important. The other thing is our road map, I think, is in line with the future trends. You go to the banks and no longer they're talking about isolated issuing, card processing is extremely important. But in the times of AI, we're really talking about programmable account credential platforms, right? Every -- if you're talking about agents, the agent needs to be assigned a card credential to be able to kind of do transactions. So our product road map is in line with the kind of future trends that we're seeing.

And then finally, I think the key component compared to a lot of the fintechs out there is we have a combination of legacy trust and modern systems. I think that's quite critical as well when you talk to some of these larger players. They like your technology, but if they're not confident that you're going to survive in the next 5 years, they push you back as far as the procurement process is concerned. So I would say those would be kind of the 3 key or 4 key drivers in terms of our long-term sustainable advantage.

One more question.

Let me...

Point one more. Yes, you go ahead.

Yes, just because you talked about the competitive advantage, just some trend that we are definitely seeing over the last year is that the banks are technologically more savvy. I would say they are preparing to some degree for the future, and they are really picky. That is a competitive advantage for us because they're very specific in requirements. And our software is pretty much agnostic to operating systems, power runs, I talked about hybrid cloud, non-cloud, everything, but also something like database. Just recently, we had a very big RFP that we have won with a significant player. And they said, "Hey, it needs to run with this database engine. And that is something I do not see in the market besides us. We are very flexible. We were saying, hey, yes, no problem. You can run active, active. So they are preparing for the future. This is why I said, hey, I think we are not late in this game. I think we are exactly in the right moment.

John, you got a question.

Yes, John Hook -- Capital. Maybe a basic question, but you're talking about pay in mix, payout mix with digital. What are you actually defining as a digital transaction?

Okay. So when we say a digital transaction like the run rate that grew 35% in transactions and 42% revenue last quarter, that is a transaction that's acquired 100% digitally, so either on an app or on your computer, okay? The flip side, that's how you acquire the transaction. The interesting thing, as Juan said, and I don't know if this really sunk in, but it's like well over half of our transactions are paid out digitally, even though it might be 20%, 25% are acquired digitally. And that payout network that we have with 12 billion accounts is better digital payout than any company in the world. And that, I think, has given us an edge. That might be why we're growing twice as fast as the market over all these years. And -- but 10 years ago, nobody paid out digitally. Now to have 12 billion accounts, that's pretty good. And 1/3 of those are just wallets, not bank accounts.

Okay. So as long as you acquire that digitally, you're counting that as a digital, whether it goes to brick-and-mortar.

Yes, how it gets paid because let's face it. It depends on your family, and your loved one on the other side. Do they have a bank account? If they don't, you've still done this thing, you've done a digital payout, but you need to have -- I mean, a digital pay in, but you need to have cash payout because maybe they don't have a bank account.

I noticed some of the names on our slide there, we obviously support other money transfer entities. They hand us a transaction that they originated digitally. it may well get paid out in cash. That's the value of what we bring to them is we give them the ability to allow their customer to get the money any way they want it, whether it's cash to a wallet to their bank account. But all those digital players, they count that same cash payout, same thing. It would be digitally originated. It might get physically terminated. It just depends on the customer there.

Okay. And then maybe on the unit economics of the digital versus retail. I was a little surprised we didn't hear more about know your customer costs and breaking down kind of the cost of sales of a digital transaction versus a retail transaction, maybe LTV versus CAC. You have enough time, I think, to have kind of looked at that. So what's the -- how would you view the differences in the unit economics between the 2?

So the -- we see slightly better margins in the digital channel just because in the physical channel, you have the agent that generally gets 5% of the customer fee. Now in the digital channel, we do not have the agent, but we charge a lower fee than what we charge in physical. And then you have your EKYC cost and your fraud cost and all of that fraud management cost. It all shakes out where we see better margins in digital than in the physical channel.

When it comes to -- you have a question also about cost of acquisition. We have seen improvement in our cost of acquisition from 2024 to 2025 at about 10% improvement, and that's a function of scaling your paid tactics and all of that. And as they mature, you see some of those benefits. And this year, we're seeing further improvement in our cost of acquisition from what we realized in 2025.

And I'll add to -- Juan mentioned it during his discussion is that we actually see better long-term value in customers that do both physical and digital. And it just makes sense. I mean, how do we all operate as consumers. It might be that we go shopping and we want to buy something there, we buy it at the store. It might be that we're at home and we want something, we order it through Amazon. We're using 2 different channels that best fit our particular need. So if you've only got one way or the other, you're going to miss a transaction somewhere. So that's where, as Juan said, a value of that omnichannel approach.

Okay. Really quick on XE, I think it was over $100 million in revenue was disclosed. And did you say high double-digit growth for that business?

That's our plan for the next 3 to 5 years, correct.

Okay. So high double digit, I would assume that's over 50%.

No, I would say it's...

You meant high teens.

Starts with the 2.

Okay. So...

Maybe 200...

Low double digits.

Sometime high double digits is a hard term to define.

Well, 11% or 99% will both be double digits, right? Okay. And just really quick one for Rick. I think you said 1/3 of the cash flow would go to buybacks minimum. That will be a major step down versus what you guys have been doing in the last 2 years. Is that just meant to give you guys optionality on acquisitions? Or the stock is pretty close to an all-time low why would you lower the percentage of free cash flow towards buybacks?

Yes. I think it's just being rational looking out across the years to say what makes sense. There's opportunities for acquisitions, as Mike said. We see things out there. We're glad to see in the current environment that valuations are being more rational. And if it's an opportunity that we can pick up additional business that would complement the technology, complement the geography and things like that, and we can get good returns on it makes sense. So I think it's just a balanced approach to look forward.

All right. This is Zhang from Guiney Value Investments, long-term shareholder here and have known Mike for a while. And this is a question for everyone on the stage, except Mike because we have discussed this question before. But as I'm listening to this very exciting presentation in the morning, as I'm listening to it, I'm placing trades for my clients and for myself. And I wonder, I haven't -- given that you are trading at a crazy like double-digit free cash flow yield and in terms of EV to EBITDA, you are cheaper than Western Union and you have this digital accelerator, which is growing way faster than a lot of your peers. Why I haven't seen any of you buying shares really cheap in the open market. I mean it feels like one of the best investments out there. Don't you agree?

Well, let me start. First of all, I've got quite a few shares. If you take a look at my position, most financials advisers would suggest that I'd be selling shares because I'm highly concentrated in Euronet. The other thing is when my shares vest, I've been writing checks for taxes, which is essentially the same thing as buying shares. I keep writing checks. My wife keeps going, Rick, when are we going to get checks instead of write checks, okay? -- right? So fair question, but reality is I've been buying shares every time those shares vest and I pay for the taxes as opposed to net settle the transactions.

And everybody up here has got the same problem, right? We have shares vesting at least once a year, and you've got a tax issue when that happens. Okay. Are we going to move to lunch now? Not that I'm hungry, but I want to kind of mingle with the people out here.

Yes, yes. So my stole my thunder. I hope you guys have enjoyed getting to know our leaders and that you're leaving with a deeper understanding of our technology, our business, our customers and our payment capabilities across all of our markets. As we discussed throughout the day, we believe Euronet's global network, integrated business and technology expertise position us well for continued long-term value creation.

I want to thank everybody in the room for spending a couple of hours with us, and I would be remiss if I didn't thank all of our colleagues who helped us put the day together. So for those of you here, we invite you to stay for lunch. And everyone else, thank you for joining us. We really appreciate your attendance.

Greetings, and welcome to the Euronet Worldwide First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. It is now my pleasure to introduce your host, Ms. Stephanie Taylor, Head of Investor Relations for Euronet Worldwide. Thank you, Ms. Taylor, you may begin.

Thank you. Good morning, and welcome to Euronet's First Quarter 2026 Earnings Conference Call. On the call, we have Mike Brown, our Chairman and CEO; and Rick Weller, our CFO.

Before we begin, I need to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we will be making today. Statements made on this call that concern Euronet or its management's intentions, expectations or predictions of future performance are forward-looking statements. Euronet's actual results may vary materially from those anticipated in these forward-looking statements as a result of a number of factors that are listed on the second slide of our presentation.

In addition, the PowerPoint presentation includes a reconciliation of the non-GAAP financial measures we'll be using during the call to their most comparable GAAP measures. Now I'll turn the call over to our Chairman and CEO, Mike Brown.

Thank you, Stephanie. Good morning, and thank you, everyone, for joining. I'll begin my comments on Slide #4.

The first quarter here in 2026 represented a solid start to the year as we navigated what continues to be a fluid operating environment. Importantly, we continue to make meaningful progress on our growth initiatives that we believe will position Euronet as a long-term winner in the payments and cross-border space. We are pleased by the broad-based strength across our business, which drove 19% growth in adjusted EPS alongside accelerating momentum in several of our key digital efforts.

Highlights include 35% growth in Ria Digital transactions and a 42% growth in new digital customers, the addition of approximately 2,300 new merchants in our Merchant Acquiring business, Dandelion delivering its strongest quarter to date and 3 EFT payment infrastructure deals signed and continued the expansion of our CoreCard client base.

During the quarter, we continued to face headwinds from immigration policy and ongoing economic pressures and the conflict in the Middle East introduced additional volatility across parts of our business. These impacts were most pronounced within the Money Transfer segment. We believe the softness associated with these factors is transitory, and we remain focused on what we can control, continuing to operate the business efficiently, executing our long-term growth initiatives across all 3 segments and maintaining financial discipline.

We remain confident with our full year outlook, supported by our strong balance sheet and our historically disciplined balanced approach to capital allocation. We believe that we are well positioned to execute against our strategic priorities and deliver adjusted EPS growth in the 10% to 15% range for the full year.

Next slide, please, Slide #5. During the first quarter, the EFT team continued to expand our banking and payments infrastructure business with a particular focus on growing the REN platform, our ATM-as-a-Service offering and our merchant acquiring network. As a reminder, these are key offerings within EFT that we believe will play a significant role in accelerating growth at Euronet for years to come.

Starting in Europe, in Austria, we implemented an ATM-as-a-Service banking infrastructure agreement with bank99. Under this long-term agreement, Euronet will provide full outsourcing services for bank99's ATM fleet across the country, reinforcing our role as a long-term infrastructure partner to leading banks. In Poland, we signed an agreement with UniCredit Bank to deploy cash recyclers across its branch network. This deployment also allows UniCredit's customers to access Euronet's market-leading depository network.

In Latin America, the REN team signed its first banking infrastructure agreement in the region with Banco Itau in Paraguay. This agreement enables the bank to take full ownership and management of its ATM network, allowing it to exit the country's centralized ATM monopoly and then transition to a modern independent processing model with direct scheme connectivity. I want to highlight the strategic importance of these banking infrastructure agreements.

Across several European markets and even at an EU level, regulators are developing standards and in some cases, formal regulation that require banks to maintain ATM networks to ensure customer access to cash. By leveraging Euronet's REN technology and scale, banks can meet these requirements while delivering a better customer service at a significantly lower cost. For Euronet, these agreements generate long-term recurring revenue and deepen our position as a critical infrastructure provider.

In addition to these core platform wins, we continue to expand our product footprint with existing relationships. In Ecuador, we extended our partnership with Banco Guayaquil through a 3D Secure agreement. This is notable for 2 reasons. First, it demonstrates our ability to cross-sell incremental REN products to existing clients; and second, it represents the first deployment of this product in Latin America, highlighting the cross-geography synergies resulting from our 2024 Infinium acquisition in Malaysia.

We also saw continued momentum in merchant acquiring, adding approximately 2,300 new merchants to our existing portfolio. During the quarter, we further strengthened our position in Spain through the announced acquisition of PaynoPain. This transaction enhances our ability to offer digital merchants a comprehensive and flexible suite of omnichannel payment solutions tailored to a wide range of customer needs and industries.

Overall, I am pleased with the EFT Group's solid start to the year. Their continued focus on expanding banking and payments infrastructure continues to provide long-term recurring revenue while also providing state-of-the-art technology for banks, merchants and fintechs, around the world.

With that, let's turn to Slide #6, and we'll discuss epay. During the quarter, epay continued to make steady progress expanding its digital content distribution capabilities across both established and developed markets or developing markets. We extended our digital content distribution relationship with Revolut into Brazil and Mexico for a total of 22 countries. Revolut is a banking super app and one of the most successful fintech companies in the world with over 65 million global users. This expansion reflects continued demand from global partners to leverage our distribution infrastructure across global markets.

We signed and launched a B2B agreement with Apple for distribution through corporate benefits, a leading European employee benefits and rewards platform, across 6 countries. In Japan, we signed a content distribution agreement with Roblox, adding another global brand to our network. This agreement represents continued progress in expanding epay's presence in key digital entertainment markets. We also advanced our alternative payment initiatives during the quarter.

We launched Amazon Paycode in partnership with Italy-based LIS PAY, increasing consumer access to alternative digital payment solutions through additional payment channels. In India, we launched Google Play and Apple Gift Card codes on Zepto, a leading quick commerce platform. This launch expands our distribution of key digital content and supports our strategy of partnering with digital platforms to capture the evolving consumer purchasing trends.

Overall, epay continued to execute on its growth strategy during the quarter with incremental expansion across geographies, partners and product offerings. We expect this trajectory to continue as we seek to leverage existing infrastructure into high-growth adjacencies, which we will discuss in greater detail at our upcoming Investor Day. The team remains focused on building its global distribution network to support long-term value creation.

Now let's go on to Slide 7, and we'll talk about Money Transfer. In the first quarter, we continue to make progress in our Money Transfer segment, but a few external factors masked these positive developments. Pressure on transactions initiated in the U.S. retail business to countries south of the border remained persistent, largely due to the continued effects of U.S. immigration policy, where the industry has continued to experience a 1-2 punch of lost customers from deportation and a virtual freeze in replacement immigration.

To a lesser extent, we also saw some impact from the geopolitical developments in the Middle East. While these factors affected our reported results for the quarter, we do not view them as indicative of underlying weakness across our global business or long term in nature. While we faced challenges in the physical retail channel, we received benefits in the digital channel. The U.S. immigration policy, combined with a 1% remittance excise tax and our targeted investments in new customer acquisition, resulted in accelerated digital transaction growth of 35%, new customer growth of 42% and digital revenue growth of 42% year-over-year.

The average spend per transaction increased approximately 6% and gross profit per transaction improved year-over-year. Dandelion also posted its best quarter on record. So while external pressures remain, we stayed focused on execution. expanding our digital cross-border payments capabilities, including the launch of real-time payment services in 9 new markets and continuing to scale the Dandelion network.

I want to emphasize an important differentiator in our Money Transfer business, the strength and the scale of our global cross-border payments network. Today, that network reaches more than 4 billion bank accounts, 3.7 billion wallet accounts and more than 4 billion debit card accounts as well as over 600 payout cash locations. The unparalleled reach, speed and product differentiation powers Ria, Dandelion and xe with real-time consumer and corporate payments at lower cost than competitor networks.

While cash pickup remains a critical service for a large portion of our remittance consumer base, we continue to see Ria, Dandelion and xe customers gravitate towards the convenience of digital payout. Our account deposit transactions grew 12% this quarter and now represent 44% of the money transfers transactions and 58% of the principal transfer. We see account deposits as the solution to driving long-term sustainable growth in cross-border remittances and payments.

During the quarter, we remained focused on expanding digital payout capabilities in key corridors. We made a minority investment in the MIO Wallet, a fintech venture, which enables digital cross-border payout capabilities in the Dominican Republic. We also continued to invest in future-ready payment infrastructure. In partnership with Fire Block, we established stablecoin rails during the quarter. The initial deployment enhances our treasury management capabilities. And over time, we expect to expand functionality, including enabling our global assets across all 3 segments to serve as on and off-ramps for stablecoin users.

This is important to understand as our ability to operate in a licensed and compliant manner across many countries, particularly in emerging markets, positions us to facilitate stablecoin movement in a way that few fintechs can.

Turning to Dandelion. We continue to expand the client portfolio with the launch of 2 new partners. Master Remit, a leading money transfer operator in Australia and New Zealand; and U-Transfer, a South Korean-based fintech specializing in cross-border remittances and foreign exchange. In addition, we signed agreements with 5 new clients, further broadening the platform's reach. These additions underscore both the growing demand for Data Lion's capabilities and its role as an increasingly important driver of long-term growth.

Overall, the Money Transfer segment made measurable progress during the quarter with a continued focus on disciplined expansion, digital enablement and investment in scalable payment infrastructure. We remain focused on executing against our long-term strategy.

With that, I'll turn it over to Rick to walk you through the financial results in more detail.

Thanks, Mike. Good morning, everyone, and thank you for joining us today. I'll start my remarks on Slide 9.

We delivered revenue of $1 billion, operating income of $72 million, adjusted EBITDA of $126 million and adjusted EPS of $1.58. Adjusted earnings per share increased 40% from $1.13 in the prior year. Excluding a onetime tax charge of $0.20 per share in the prior year, adjusted earnings per share increased 19% from $1.33. You can see we are on track to meet the guidance range we shared with you earlier in February.

Further, this quarter, we continued our track record of producing strong free cash flows. And because we didn't have any large pending acquisitions or other capital requirements, we repurchased $100 million of our shares. Given the timing of the repurchases, there was only a marginal benefit of about $0.02 per share in the first quarter adjusted EPS. But we know this repurchase will continue to support per share earnings in the future.

I'll point out that our operating income of $72 million includes $5 million of additional noncash purchase price amortization reflected in the GAAP purchase accounting for the CoreCard acquisition and an additional $3.5 million for noncash share-based comp. Excluding these 2 noncash items, our operating income would have grown 7%.

Slide 10 shows our first quarter year-over-year results on an as-reported basis. Most of the major currencies we operate in strengthened compared to the dollar. To normalize the impact of the currency fluctuations, we have presented our results adjusted for currency on the next slide.

I'm on Slide 11 now. The EFT segment delivered strong revenue growth in the first quarter of '26 with constant currency revenues increasing 19%, driven by a combination of double-digit growth in REN and merchant acquiring, certain interchange rate increases and the full quarter inclusion of the CoreCard acquisition completed in the fourth quarter of 2025. Morocco, Egypt and Philippines led the way for the geographical expansion of our ATM footprint, together with deepening our banking outsourcing partnerships.

ATM expansion was modest with installed ATMs and active ATMs up 1% after deinstalling approximately 1,400 nonperforming ATMs. In Poland, interchange increased during the first quarter with certain schemes implementing new interchange rates that include both fixed and variable components. These rate increases reflect a similar theme where we have seen rate improvements across Europe.

Looking ahead, we expect to continue to see improvements in interchange rates and direct access fees or DAF, as regulatory requirements evolve across Europe, where approximately 15 countries have implemented formal ATM cash access frameworks. These changes are designed to preserve customer access to cash while supporting the long-term sustainability of ATM networks. As additional bank branches decline, independently owned ATM networks are increasingly filling the gap, enabling banks to lower cost while still meeting regulatory requirements for access to cash.

As these trends evolve, we expect pricing structures to adjust to support accessible ATM networks. Adjusted EBITDA increased 12%. Operating income remained relatively flat, largely due to the approximately $5 million increase in noncash purchase price amortization related to the CoreCard acquisition. Absent this $5 million increase, operating income for the segment would have grown 21%. These double-digit operating results reflect the earnings leverage of revenue growth while exercising disciplined expense management. Operating margins were consistent year-over-year after adjusting for the inclusion of the $5 million noncash purchase price amortization.

In epay, the segment delivered solid results for the first quarter of 2026 with revenue increasing 2% on a constant currency basis. Operating income rose 13% and adjusted EBITDA increased 12% on a constant currency basis. Results benefited from the absence of a $4.5 million onetime operating tax impact in the prior year first quarter. epay revenue and gross profit per transactions were consistent to improving.

In the Money Transfer segment, revenue declined 4% on a constant currency basis. Operating income was $38.9 million and adjusted EBITDA $45 million, both down year-over-year. Total transactions decreased 2% to $43.9 million, while digital transactions grew 35%. New digital customers increased 42% and the network locations expanded 4%. The decline in constant currency revenue was primarily driven by immigration-related pressures impacting transfers between the United States and Mexico, the implementation of a 1% remittance excise tax paid on cash transactions in the first quarter and reduced volumes in the Middle East.

These headwinds were partially offset by growth in markets outside the U.S., continued strength in consumer-to-consumer digital transactions and the expansion of our Dandelion cross-border payment network. While constant currency revenue per transaction came in a bit, gross profit per transaction improved, driven by a favorable mix toward account-based payouts, improved payout rates and more efficient network routing, highlighting the strength of our cross-border payments network.

Operating profit benefited from expanded gross margins, which were reinvested in digital marketing to support long-term growth, resulting in lower operating profit year-over-year. At the consolidated level, despite a more challenging macro environment, we delivered solid earnings growth, supported by strong performance in EFT and continued momentum in our digital channels. While Money Transfer faced near-term pressure, the underlying fundamentals of the businesses remain intact.

Turning to the full year guidance. I'd note that as we continue to see the benefits of our key digital growth initiatives, we are seeing a corresponding evolution in our seasonal earnings profile. In prior year, earnings were more heavily weighted toward ATM tourist activity. As we continue to diversify the business and expand our digital products, we expect the second and third quarters to represent a lighter portion of full year earnings than in the past.

As Mike mentioned earlier, our current operating momentum and pipeline of growth initiatives give us confidence in our ability to deliver adjusted earnings per share growth of 10% to 15% in 2026.

Let's now turn to Slide 12 for a few brief comments on the balance sheet. As you can see, we ended the first quarter with $2.1 billion in unrestricted cash and ATM cash. Total debt was $2.6 billion at the end of the quarter. The increase in cash and debt was due to an increase in cash in ATMs in preparation for our tourist season in Europe as well as cash generated from operations, partially offset by share repurchases and working capital fluctuations.

During the first quarter, we repurchased $100 million of our shares. Share repurchases remain a core component of our capital allocation strategy, funded primarily through our strong recurring operating cash flows. We believe share repurchases have been an effective use of capital and underscore our confidence in the long-term value of the business.

Over the past 4 years, we have returned, on average, approximately 85% of our annual earnings to shareholders through share repurchases, reflecting a strong return of capital to shareholders. Our broader capital allocation framework continues to prioritize maintaining an investment-grade balance sheet, investing in organic growth, pursuing disciplined and strategic M&A opportunities and returning excess capital to shareholders.

With this, I will turn it over to Mike to wrap up the quarter.

Thanks, Rick, and thank you, everybody, again. To close, we are pleased with the solid start to this year. We continue to benefit from product and geographic diversity, which allow us to deliver good results despite a complex and uneven macro environment. Our digital initiatives are clearly delivering results. We're seeing accelerating adoption across the business, driving meaningful mix shift and operating leverage. That progress reinforces our confidence in our strategic direction and the investments that we have made to develop an industry-leading global payments network and expand digital access for our customers and partners.

At the same time, our core platforms continue to scale globally. Long-term infrastructure agreements, expanding networks and continued partner wins across the portfolio are strengthening the durability and reach of the business. We also remain disciplined on how we allocate capital. We are balancing organic growth and innovation with selective M&A opportunities while continuing to return capital to shareholders in a way that supports long-term value creation.

Our balance sheet and cash generation remains strong, providing us with the flexibility to execute and give us confidence in our full year outlook while continuing to build long-term value for our shareholders. Thank you for your time today, and we look forward to seeing you at our Investor Day on May 20.

With that, we will open the floor for questions. Operator, will you please assist?

[Operator Instructions] Our first question comes from the line of Vasu Govil of KBW.

I guess the first one on the strong acceleration in the ESC segment. Just could you maybe help us think through how much was the contribution from CoreCard versus just organic growth in that segment?

Yes. So CoreCard was a little bit squirly this time, Vasu. So we were able to pick up about $30 million in revenue. However, 40% of that $30 million was card stock purchases in anticipation of issuing lots of cards and that 40% was at almost no margin. So -- but it is exciting that they bought so much card stock because they are -- with that contract, they're expecting to launch and issue a lot of cards.

Got it. So like should we be then modeling $30 million less the 40% as we look through the rest of the year in the EFT segment from CoreCard?

Yes. I think that would be -- we'll see what we do, but for sure, you don't want to count that $13 million or whatever it is, the 40% of $30 million, you don't want to count that chicken every single quarter.

Got it. And then just on the Money Transfer segment, I know there are a bunch of different macro headwinds ongoing. But just on the U.S.-Mexico corridor, I wanted to get a sense for whether you've seen the headwinds stabilize there? Or is it still continuing to get worse? And in light of the geopolitical events in the Middle East, just curious what you're seeing in terms of trends in the month of April. That would be super helpful.

Okay. So let me tell you, in the month of April is the first month of the new quarter. I have -- for the last year, the last 3 quarters, the first month has always been pretty good. And then the following months gets crummy. And so I think it would be not in our best interests to expect what April does is going to look -- is going to end up being for the quarter. We'll just say that it's a very choppy environment, a lot of unknowns out there. We continue to do well in comparison to our competitors. Our digital business is growing like crazy. And so we're feeling pretty good about Money Transfer, but the reality is I think anybody who gives you a number for the quarter based upon April is really going out on a limb.

Our next question comes from the line of Rayna Kumar of Oppenheimer.

I just want to go back to Money Transfer for a second. I see that you're still growing agent locations. I think it was up 4% in the quarter. Like what are your expectations going forward on increasing physical locations just given the ongoing pressure from U.S. immigration and from the Iran war?

Well, this pressure -- this macro pressure that we see is certainly not in our favor, but it's also not in the favor of our competition. So what we believe is we will continue to add more physical locations because some people just prefer to transact that way, whether they pay with a card or not. And so we will -- we expect a continued growth there. And maybe there will be some opportunities for us to just be aggressive and get these agents quickly because we're doing so well really as a company and the agents and the competitive pressures are not what they used to be.

Got it. That's helpful. And then on CoreCard, just like your thoughts on how that pipeline for CoreCard is looking? It sounds like CoreCard had a strong quarter. How should we think about it for the year?

I think I said this on the last call, Rayna, when we bought CoreCard, in our business plan, we really didn't expect to sign a new deal for the first 18 months because that's kind of the closed cycle of signing new deals. We have been absolutely kind of floored and positively surprised with the fact that we're selling new deals as we speak. And we've got a very strong pipeline in process.

So we're going to -- by the time we get to that 18 months when I thought we wouldn't close a one, we're going to have a lot of deals under our belt, and that's going to -- and that's the goal. We want to make sure that by the time the Apple business goes away, which we don't -- we're not quite sure when that will happen, but it will be sometime after the end of '27. We want to make sure that we filled that bucket and then some.

Got it. If I can just sneak in a modeling question. Just, Rick, how should we think about interest expense for the rest of the year?

Rayna, we've got about $700 million in our Eurobond that matures in May. And we would expect that we'll finance that maturity with something that will be probably a couple of hundred bps more in interest cost. So if you would factor that into it, I think that would be pretty consistent.

Our next question comes from the line of Pete Heckmann of D.A. Davidson.

Interesting dynamic playing out, has taken some time. But in terms of countries looking at ATM fee frameworks, I guess, are any of those alone, do you think significant to the near-term outlook of your business, particularly Poland, I think you have a fairly large number of ATMs there? Is the change in interchange rates there enough to really move the needle?

Yes. I mean all these deals, whether it's that or the infrastructure plays are all really good deals. And yes, they all move the needle a little bit. But in total, they continue to move our needle upward. And that's the nice thing with where the world has kind of gone to. Now that we've had this kind of backlash with all the bank branches in Europe being closed, citizens are demanding access to cash. Already 15 countries are mandating cash access with more in the works. One, even Switzerland put it into their constitution.

So we know that somebody has to bear that load and us as an independent provider with scale, best scale in Europe puts us in kind of the catbird seat for long-term infrastructure plays in these respective countries. So -- and every one of them is a good deal. So we're -- that's one of the things that really has changed over the last 2 years. We've always done infrastructure deals, but they are accelerating now based upon the legislative and political environments within these countries.

And Pete, I'd just add that all of that just gives us greater confidence in the long-term durability of the business.

Okay. That's helpful. And...

Yes, we're just -- in the old days, we were 100% focused on tourist-related revenue for ATMs. That has really changed.

Yes, definitely, definitely. Okay. And then I missed it on Bilt. For some reason, I was confusing that was Bilt when you first mentioned it. But with Bilt, is that a U.S. card for...

Yes, it is. It's a very successful U.S. card. It is basically targeted to customers who rent their housing and then they get extra points and rewards and so forth if they use the Bilt credit card to pay their landlords for their rent. It's spelled B-I-L-T, by the way, if you want to look at it.

Our next question comes from the line of Gustavo Gala of MCH.

I'm going to keep it to one. It's a little bit long. So with the Investor Day coming around, you guys have consistently delivered double-digit CAGR on revenue, but the multiples continue coming in. What is -- was the Investor Day attendance correct? I think one of the things that has come up is a time to stop trade like it's implying terminal decline. And as part of the Investor Day, is the Board considering any structural actions, anything from a spin-off, strategic review, anything that could help crystallize value?

Well, the -- I mean, the Board will consider anything that kind of pops up. We have to do that. We're a publicly held company. But when you look at our digital initiatives and our growth aspirations for each of those, we're pretty excited about where we're going without that. And our whole industry, as you know, you track a lot of these people, the whole fintech segment is down probably 30%, 35% from a year ago. We kind of fell into that vortex with them.

But the nice thing is we -- structurally, we've got a growing, booming business. We've got some challenges with the immigration policy here in the U.S. and money transfer. Otherwise, Money Transfer continues to grow very well. And we've got this network that is without peer and allows us to sell infrastructure deals to lots of people.

So I mean, we're not planning on doing anything aggressively with respect to that. When you've got as many growth drivers as we have and accelerators as we have, we'll just keep putting more money on the bottom line, and we will do acquisitions. And if the acquisitions aren't there, we will consider stock buybacks as we have in the past.

Our next question comes from the line of Mike Grondahl of Northland.

Two questions. One, could you talk a little bit about the double-digit revenue growth you saw at REN and merchant acquiring? Just kind of what's driving that? And then secondly, have you seen any effect of this $100 oil in your end markets or customer activity?

I'll answer the last one first. Well, the Middle East is not just $100 oil, there's a little volatility going on there right now, and that has affected our Middle East transactions in Money Transfer. With respect to the $100 oil, we haven't seen any direct effect. We do consider the fact that there'll be a derivative, first or second derivative for that is with $100 oil, is that going to push up inflation? Is that going to reduce people's spend, et cetera, just across anybody's business?

So that is something that we consider, but we haven't really seen any direct effect of that so far. Now I'm trying to remember what the first question was, yes, double-digit growth in -- in REN. I'll tell you, REN just continues to do well. We're accelerating. We're doing more deals. Remember, when we started REN, it was all in Asia. Now we're signing deals. As you know, we've got one -- we've got Bank of America here in the U.S. We've got several deals in Latin America.

REN is one of those things where it is modern technology and the banks don't have modern technology. So what you just need is some reference customers in their geographies. And that's what we're doing, doing more and more deals on account of that.

I think and you add to that, Mike, that over the years, we've been just adding to the product functionality of the REN platform. As you may recall, it essentially started out as a switching product. But even here a couple of years ago, and we made reference earlier in the presentation on the deal with the 3D Secure. We acquired this little piece of business in Malaysia that directly lines up with it. The CoreCard thing directly lines up with it.

So as you go into a bank and you talk to them about their payment infrastructure needs, it ranges from switching to credit, to debit, to real-time switching, to security, to payment transactions. This is where we get the leverage across our segments where we're selling to customers that we have in multiple segments. And so it's not unusual that we will have a bank customer that we have in the -- let's say, a REN customer that we also talk to them about a Dandelion product.

So I think it's the addition of more and more product into the portfolio, and it's the momentum that takes a while to kind of build the momentum. These are long sales cycles, et cetera. So I think it's the combination of those that come together to really give us that momentum we're seeing.

And I think we've got a couple of things up our sleeve for the Investor Day, too. We're finding that REN typically is used by banks and fintechs. We will talk in the Investor Day how we've leveraged that platform into new verticals that we see a lot of potential growth in. So more news on that to come.

Our next question comes from the line of Josh Levin of Autonomous Research.

Two questions from me. First, your competitor, Western Union said the Middle East was actually a source of strength for money transfer, meaning the war spurred some higher transfer activity. It sounds like you had the opposite experience. How might we sort of reconcile those comments? Second question, you launched stablecoin payouts. Can you give us some sense of the specific unit economics for stablecoin transaction compared to a traditional FX-based remittance?

The advantage that stablecoin gives us -- I'll answer the second question first. The advantage that stablecoin has -- gives us at this point in time is basically just treasury float. So we're able to -- what we have -- the way money transfer works, an immigrant comes into either digitally or into one of our physical locations, they give them $300. They've got to send that to their mom in the Philippines. What happens is, we estimate what those numbers are every day. We prefund the Philippines correspondent bank in advance. And then over weekends, it's multiple days of prefunding. So with stablecoin, we can kind of do that ad hoc. So you don't have as much float. You can really do it -- as we get better and better at it, it's going to be kind of instantaneous. And so it just -- it helps us on the float side.

I think when you take a look at what happens really at the consumer level, there's a huge range of what's out there. If you're a very -- doing very large transactions, you can execute those at nearly -- at very, very small rates, very few basis points to do large transactions. You get down to the consumer level and you see numbers that range from 3% to 4% to get on the chain and 3% to 4% to get off the chain. So if it's costing you 6% to 8%, think of this in relationship to the money transfer industry, where you generally see something like sub-3% in terms of total consumer cost to send a transfer.

So I think that there's a lot of evolution that is to yet develop out there. But we would see on the low end, the transactions are not being more economical, at least today, what we see out there than what you see in your traditional technology that we move money. Important thing is that we've got the technology ready to go. And as the use cases develop, we've got one of the best networks, if not the best network, as Mike said, to deliver on and off ramps around the world.

And with respect to your first question on the Middle East, you said that our competitor has said that the Middle East has been an opportunity for them. For us, we don't have as big of a Middle Eastern contingent of agents and everything. So it might be kind of country-specific as opposed to more broad-based.

And I think that there might be a couple of aspects of the business in there where they have some increasing volume to a certain country that we don't operate or send to. And there might be some movement in certain agents that they have there that they benefit from. So I think it...

Yes, you might remember, they did quite well a couple -- a year ago or so to Iraq. We don't have Iraq as a payout. And so all that gets kind of mixed in there.

Yes. Hats off to them for doing that. I think that's nice work. But I think it's different underlying business circumstances that we see over there.

Our next question comes from the line of Cris Kennedy, William Blair.

Mike, you mentioned Dandelion had one of its strongest quarters on record. Can you just provide a little bit more color on those comments?

Okay. So we've got a couple of big customers and then lots of little customers in Dandelion. So we don't really -- we're not talking about its numbers specifically because it would give us a competitive disadvantage as we bring on new customers. But it was great to see good, strong double-digit growth, best quarter ever. Dandelion is one of those things where every quarter it's a bigger quarter than the last one because more and more people are using it more often. So I really can't give you any quantities, but really, as far as our digital endeavors, it's going to be a big one.

And I would just add to that, that continuing on a similar line as REN. I think we begin to see the momentum build. Clearly, we've been focused on the business. It's a long sales cycle, but we're continuing to see that momentum build. As you noticed, we made a mention of a number of other wins that we had in that category. So I think as we continue to see our sales success, we'll continue to see that business do nicely.

And just as an example, our very first big bank customer was HSBC. About every month is a new record for them. It takes a while for these banks to communicate to their customers, the ability to send money cheaper and quicker than they could through the old Swift channels. And so as more people find out about it, more and more people use it.

So there's this kind of innate ramp-up. And there's more places as that bank as an example, there are more customers that they haven't even begun to market it to, but they will as their confidence grows, and we just have to work with bank bureaucracy.

Understood. And then, Rick, you mentioned the three drivers of improving gross margin in the Money Transfer side. Can you just talk about the sustainability of gross margins on that segment?

Yes. I would expect that we continue to see that, Cris. It, I think, speaks to the strength of the network and our volume. So it gives us a good opportunity to negotiate rates with payout agents. It gives -- the bigger our network, the more choices that we have to route a transaction and more customers going to send money to accounts. And remember, this account could be a bank account. It could be a wallet account. So it's account-based and account-based are lower cost payout structures for us. So Cris, I think we'll continue to see the benefit of this really, really impressive network we've built.

Operator, do we have any more questions? If not, we can close -- we have one more, I think. Is that right, operator?

Yes. We have one more question. I'll go ahead and bring them up now. We welcome Darrin Peller with Wolfe Research.

Can you hear me okay?

Yes, perfectly.

All right. Just one question is more on the margin structure and the margin expectations on the Money Transfer segment. I know you expected it to be decent. I think you had expected 50 to 70 bps of margin improvement in the year. Just you were working through some of the restructuring that would help that despite some of the headwinds. I saw noticing margins were down year-over-year now. So just what is your conviction on that front first? And then overall, just thinking about that segment, I mean, it seems like this is hopefully in terms of the headwinds may not persist forever. But I'm curious how you think about approaching that segment given the context of the political environment and the migration that could last for a while?

Yes. On the margin, I'd say, Darrin, we would expect to see that to be a little bit more back-end loaded. As we entered the year, a number of those programs are being worked on. In fact, some of the expense it takes to implement some of those things that we did is, again, a little bit more front-loaded. So the benefit will deliver a little more on the back end of the year.

And as it relates to -- I guess I'm going to say broadly your question on the industry. Well, when we take a look at Money Transfer and think of it over the years. I mean, I can't remember a time in history that immigration has not been -- has not, not happened. if you add up the population of all the developed countries, you only get to about 20% of global population, which means that 80% of the population continues to live in lesser developed countries. And as with most humans, when they have an opportunity to improve their rotten life, they do that.

And when they do that, they're very loyal to their -- they do that for their families, and they send money back home to their families. So I think certainly, we are experiencing the impact of a different political environment. You can take a look over the years on how that kind of attitude has moved positive, negative, positive, it ebbs and flows with politics. We also have an economy that's dependent upon a certain amount of immigrant labor.

And so we believe that we will continue to see in the future what you have over the history. And it's a point of time that we get through. I don't think you throw in the towel because of a particular immigration policy this year in the U.S. As we said, we saw the growth in our markets outside of the United States. So we continue to believe it's a great -- it's a big and growing market for sending cross-border money, has great margins to it. So we see long-term potential to it despite the challenges that we have to work through. But we're also glad that we've got a very good durable diversified business, which gives us the ability to weather that.

And you've seen our results over the last year even where we have outgrown our competitors, so we are picking up more market share. So as some of this stuff settles down in the U.S., we're going to be in a better position, plus we continue to grow overseas.

Okay. That's helpful. Mike, I may have missed this earlier, but just a quick follow-up on the Iran conflict. What were the implications on travel that you're seeing? Or from your perspective, what kind of impact is that having on the EFT segment right now?

So far, we've...

More traffic.

Yes. So, so far, we haven't seen anything. There are kind of threats that there may be some flights that may be canceled if they're not able to get fuel for the summer, but we don't know for sure. So we'll just have to see what happens. The interesting thing is the one thing that the conflict has done is if you look at Europeans and where they travel, a lot of them liked to go to places like Dubai, to Turkey, et cetera, on their vacations. They're probably not going to do that this year. So a lot of these people are going to stay a little bit closer to home where they can either take a short airplane ride or a train ride to their vacation, and that probably would be a benefit to us.

And I think we've shared with you in the past that 75%, 80% of our cross-border transactions in Europe really come from Europeans going cross-border as opposed to people coming into Europe, so maybe we'll see. But at least what Mike said a little bit ago is something that may be an opportunity for us as opposed to a challenge.

Thank you, Darrin, and thank you, everyone, for joining us today. We'll sign off.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Greetings, and welcome to the Euronet Worldwide Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now it's my pleasure to introduce your host for today's program, Adam Godderz, General Counsel for Euronet Worldwide. Thank you, Mr. Godderz. You may begin.

Thank you, and good morning, everyone, and welcome to Euronet's Fourth Quarter and Full Year 2025 Earnings Conference Call. On the call today, we have Mike Brown, our Chairman and CEO; as well as Rick Weller, our CFO.

Before we begin, I need to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we will be making today. Statements made on this call that concern Euronet's or its management's intentions, expectations or predictions of further performance are forward-looking statements. Euronet's actual results may vary materially from those anticipated in these forward-looking statements as a result of a number of factors that are listed on the second slide of our presentation. In addition, the PowerPoint presentation includes a reconciliation of non-GAAP financial measures we'll be using during the call to their most comparable GAAP measures.

Now at this time, I'll turn it over to our Chairman and CEO, Mike Brown.

Thank you, and good morning, everyone, and thank you for joining us today. Our fourth quarter 2025 results reflect one of the more challenging operating environment that we have faced in some time. Immigration policy uncertainty and economic stress, especially amongst lower income consumers weighed on growth across all 3 segments with the most pronounced impact on money transfer and epay. That said, despite the external headwinds that pressured the quarter, we remain excited about growth initiatives underway across all our segments that will drive business momentum through 2026. We will discuss these items in detail throughout this call.

Further, we remain confident in our competitive position, particularly in money transfer, where underlying trends continue to outperform broader market dynamics. I would be remiss not to highlight the resiliency of our EFT segment, which delivered solid growth and once again demonstrated its role as a stabilizing earnings engine. This business continues to evolve beyond its historical reliance on ATM ownership with an increasing focus on payment infrastructure and merchant acquiring.

Stepping back and looking at full year results. Despite a difficult operating backdrop, I'm proud to say that we delivered another year of double-digit EPS growth, consistent with our history as a publicly held company.

Looking ahead to 2026, we expect to continue that performance with adjusted EPS growth in the 10% to 15% range based on our track record and the investments we have made, we are now confident in our ability to deliver another year of double-digit earnings growth.

Next slide, please. In periods of uncertainty, I believe that history does matter, and this chart on Slide 5 shows our ability to consistently deliver top line growth year-over-year. Euronet has more than 3 decades of experience in dealing with various economic cycles. We've navigated the economic downturn in 2008 and '09, demonetization in India, the economic instability in Greece, one of our largest EFT markets, and of course, we navigated COVID, just to name a few. In each of these periods, the diversity and durability of our earnings, our conservative balance sheet management, share repurchases and thoughtful investment in growth initiatives allowed us not only to withstand the pressure but to emerge stronger, more agile and with greater market share. You will see these themes emerge as Rick and I talk you through the details of the quarter.

In short, we don't view near-term uncertainty as a reason to adjust our long-term strategy. Instead, we rely on the same principles that have granted our success for decades. Disciplined execution, evolution of our business model, thoughtful capital allocation and a focus on building assets that compound value over time. Our 2025 execution shows how we put these principles into action. We generated $408 million in adjusted earnings, which allowed us to return approximately $388 million in capital to shareholders in the form of share repurchases, which excludes the shares repurchased to offset the shares issued for the CoreCard acquisition. During the year, we also acquired in our Money Transfer segment, and we announced the acquisition of bank's merchant acquiring business. We expect both of these acquisitions to drive multiyear growth.

Next slide, please. As I continue my comments on Slide 6, you can see a quick recap of some of our key accomplishments for 2025. We continue to invest in growth opportunities across all 3 segments, particularly in areas where we were accelerating our digital strategy. In addition to the acquisitions I previously mentioned, we signed a Ren deal with 1 of the top 3 U.S. banks. We added Commonwealth Bank of Australia along with Citi to our data line portfolio. We continue to expand distribution into digital wallets and epay. Not only will these deals contribute to our growth, names like these demonstrate that our products are being recognized as market leaders and drive value. The flywheel is definitely turning and gaining momentum. So while we've experienced some pressure from immigration in the economy, we've continued to keep our eye on execution of all our growth initiatives as we enter 2026.

Next slide, please. With that perspective in mind, I want to step back and remind everyone how we think about Euronet at a higher level as illustrated on Slide #7. As we've discussed in prior calls, our business is built around 2 core revenue pillars, payment and transaction processing and cross-border and foreign exchange. What is important is that these 2 pillars support a huge number of use cases across the globe that we can serve through our technologies and global network, and they also work together to combine payments, cross-border movement and FX, resulting in revenue generation, which is meaningfully higher per dollar move than the broad global payments industry.

Despite global challenges like the ones I mentioned earlier, the bottom line is that people and businesses will continue to make payments. They will send money, move funds across borders. Our focus is on ensuring that Euronet remains well positioned to serve those needs wherever, whenever and however they may arise.

Now let's go on to Slide #8, and we'll talk about how we furthered this strategy in each of the segments. And of course, I'll start with EFT. I am on Slide #8 now. Throughout 2025, EFT continued to deliver consistent growth, earnings stability and cash generation, which was largely the result of the diversity of our products, geographies and payment channels in the segment.

During the fourth quarter and on the heels of another year of exceptional growth in our Merchant Acquiring business, where adjusted EBITDA grew 32%, we acquired Credia Bank's merchant acquiring business. This partnership with Credia Bank, which is the fifth largest bank in Greece, adds to the diversity of products and services in the EFT segment, additional mix shift to our digital strategy and is a perfect example of the breadth of services EFT can offer a partner largely due to our Ren platform and its flexible modern digital payments processing capabilities. This agreement will add another 20,000 merchants to our acquiring portfolio or nearly a 10% increase as we provide the banking infrastructure for financial services to credit through, including credit, debit and prepaid card issuing. We will also manage the outsourcing for the branch and off-branch ATMs and provide customers with access to our leading ATM network.

Before I wrap up, I'd like to briefly touch on our recent acquisition of CoreCard, which we completed at the end of October. This acquisition aligns well with our objective to expand into high-growth fintech areas such as credit card issuance and processing. We view CoreCard as a strong addition to our payments processing pillar, and we are encouraged by the early momentum into new markets, along with its ability to serve a more diversified client base. Since the acquisition, we've seen an expansion in processing relationships across several new programs, including the recently launched and well-publicized 2.0 credit card focused on renters and homeowners that allow you to earn points on housing payments and the coin-based One card, which offers rewards paid in bitcoin. These are just a few of the potential new customers that we are targeting with this innovative platform.

As previously stated, our near-term focus is on integrating CoreCard into our product offering for international markets. Over time, this integration will enable more and more comprehensive end-to-end client offering, combining seamless credit card processing with our existing payments capabilities. Needless to say, at this point, we are pleased with the early customer response.

I'd like to pause here to specifically highlight 1 important point. Our EFT business is evolving from a model historically centered on ATM ownership to one increasingly focused on payments infrastructure, while ATMs remain an important and cash generative component of EFT, Partnerships like Credia and acquisitions like CoreCard accelerate our capabilities in modern issuing and processing allowing us to scale software-driven services that support digital transactions and real-time payment flows across our global network.

Now let's go on to Slide #9, and we'll talk about epay. As I mentioned, epay's results were impacted by global macroeconomic pressures. However, despite these challenges, the underlying core epay business continued to perform well in a difficult environment. Throughout the year, we expanded and diversified epay's distribution footprint across both physical and digital channels. This included growth in our merchant payments processing business, the expansion of our digital content and gaming partnership and the launch of our own open loop product in the new market.

In the fourth quarter, we delivered strong performance in our gaming-related branded payments business, which makes up 37% of our total branded payments margin. According to industry reports, the global video game market was approximately $290 billion in 2025, and is expected to grow at a 13% CAGR through 2031. We have strategically positioned our branded payment distribution to benefit from these strong growth trends in markets around the world. We also expanded our digital content distribution with Revolut to India and New Zealand as part of their loyalty program. We're now in 20 countries with Revolut and looking to expand further. Revolut is one of the fastest-growing fintechs out there, which further demonstrates our global reach, good execution of our digital channel growth strategy and customer demand for the epay products.

Additionally, we broadened our partnership with Lidl supermarket, adding digital branded payments in 2 markets, Italy and France. Finally, we continue to leverage our relationship with the merchants that distribute epay content to offer payment processing. This has allowed epay to grow its merchant payment processing revenue by 21% for the full year. As we move forward, we will continue to evaluate the business to ensure that epay operates at optimal levels while staying focused on our core strategic initiatives to drive growth across the segment.

Now let's move on to Slide #10, and we'll talk about Money Transfer. Slide 10. As I mentioned in my opening comments, the Money Transfer segment faced headwinds, particularly in the second half of the year, driven by macroeconomic uncertainty and the changes in U.S. immigration policy. While these external factors certainly impacted our business, they have impacted everyone in the industry. It's been tough for everyone, yet we continue to find ways to gain market share. Since we've acquired Ria, we have outpaced market growth. Despite the disruption in remittances, we have continued to expand our world-class network to add more digital touch points to operate in new send and receive markets and to add world-class partners to our Dandelion network.

To ensure the continuity and stability of our operations, our management team focused on what is within our control, and in 2025, anticipating a softer environment, we proactively initiated a comprehensive results-based review of the Money Transfer business with an external management consulting partner. The goal was to improve our digital sales focus, together with the efficiency, scalability and operating leverage of the segment. That work resulted in a set of structural actions designed to strengthen the business over time. Rick will walk you through the financial implications of those actions. But from my perspective, this was about fortifying and optimizing how the business focuses on digital customers and operates through AI and process automation. Because this work began well in advance, we are better positioned now and expect these proactive steps to support performance in the coming quarters and beyond.

In parallel with the optimization effort, we continue to invest in key areas that will position money transfer for future growth. During the fourth quarter, we signed an agreement with WorldFirst, a U.K.-based fintech that is owned and operated by Ant Financial. WorldFirst will join Citi, Standard Chartered, HSBC and others in leveraging our Dandelion network to offer best-in-class real-time cross-border payment flows to their customers.

We also closed the year with strong performance in our Ria digital channel. In the fourth quarter, we expanded our digital reach with the launch of the Ria app in Greece, Romania and the Czech Republic, which are exciting new markets that will support our ongoing digital growth. In the fourth quarter, our global digital channel delivered 31% transaction growth and 33% revenue growth, including 33% new customer acquisitions in December alone.

We also continue to expand our global distribution network by launching business operations in Colombia and Panama under our own licenses. These new markets are part of our geo expansion efforts that will allow us to continue to expand our global TAM. We look forward to building strong inbound and outbound businesses in both countries.

Finally, we continue to work closely with Fireblocks and our internal teams to launch stable coin strategies. This initiative, which we announced last quarter, will support use cases around the globe. So while we work through some market-driven challenges in 2025, we remain confident that our optimized operating model, combined with our leading global network, which now reaches 4.1 billion bank accounts, 3.7 billion wallets and 4 billion cards across 200 countries will continue to support our ability to outgrow the market in 2026 and beyond.

I'll stop there, and I'll turn it over to Rick, who will walk you through the financial results for the quarter in more detail.

Yes. Thanks, Mike, and good morning, everyone. I'll begin my comments on Slide 12, which shows our fourth quarter and year-over-year results on an as-reported basis. Most of the majority of major currencies we operate in strengthened compared to the dollar. To normalize the impact of the currency fluctuations, we have presented our results adjusted for currency on the next slide.

On Slide 13. As Mike mentioned, adjusted EPS for the fourth quarter was $2.39, reflecting another quarter of double-digit year-over-year earnings growth. even as parts of the business face pressure. With that context, I'll start with the fourth quarter results and then move to the full year performance. On a constant currency basis in the fourth quarter, consolidated revenue increased 1% year-over-year. Adjusted operating income declined 6% in adjusted EBITDA, was consistent with the prior year, reflecting macroeconomic and immigration-related pressures in money transfer and epay partially offset by strong performance in EFT, where we delivered double-digit growth in both operating -- in adjusted operating income and EBITDA.

EFT produced another strong quarter, with revenue growing 8%, adjusted operating income increasing 12% and adjusted EBITDA growing 13%. Money, merchant services in the Greek business performed exceptionally well, delivering another strong quarter with adjusted EBITDA up 32% over -- year-over-year on robust transaction volumes and continued merchant expansion. Results in the quarter also benefited from continued expansion in Morocco, Egypt and the Philippines as we deployed additional ATMs, broadened service offerings and deepened relationships with banks and fintech partners.

In epay, revenue declined approximately 2%, while adjusted operating income decreased 7% and adjusted EBITDA declined 8%, reflecting product mix shifts, continued investment in proprietary offerings and macroeconomic pressures. Promotional activity in our B2B channel was lighter year-over-year, while our core digital content and payment processing businesses remain stable.

Money Transfer revenue declined 1% year-over-year with adjusted operating income down 6% and adjusted EBITDA down 5%. I want to put these headwinds in proper context. The declines we experienced in certain remittance corridors were driven primarily by macroeconomic conditions and immigration-related dynamics affecting senders, with more pressure in the United States and more specifically, Mexico.

Financial pressure remains concentrated among low-income households which represents the majority of remittance customers. According to the Federal Reserve's most recent survey of household economics and decision-making, inflation and prices remain the top financial challenge facing U.S. customers and a significant share of lower income households report difficulty covering monthly expenses and absorbing unexpected costs. What that typically means in practice is not a sharp reduction in support for families abroad, but rather fewer transactions.

When budgets are strained by essentials such as rent, food, fuel and utilities, centers continue to remit, but with less flexibility between paychecks. That shows up first in frequency rather than ticket size. While we saw pressure in transactions, average amount sent increased by 7% to 8% year-over-year in the fourth quarter.

According to the Central Bank of Mexico, remittances into Mexico declined approximately 2% in the fourth quarter of 2025, following 8 months of decline ranging from about 2% to 16% compared to the prior year and were down roughly 5% and for the full year. Our Money Transfer results tracked the industry in the fourth quarter, reflecting the same macroeconomic and immigration-related pressures facing U.S. centers. However, while the broader market contracted on a full year basis, our business delivered a modest increase in remittance volumes for 2025. In our view, that outperformance reflects continued share gains driven by our expanding digital footprint, quarter diversification and strong partner network, demonstrating the durability of our platform even in a softer demand environment.

Consistent with our discussions over the past few quarters, we are very focused on extending our digital strategy in each segment. More specifically, in the Money Transfer segment, where we have consistently produced 30% growth rates in Ria Digital and signed Dandelion agreements with leading financial and fintech institutions.

To continue our focus on digital growth, about a year ago, we initiated a process to carefully look at what we could do to drive yet more focus on money transfer digital initiatives. This effort is expected to produce approximately $40 million in annual run rate benefit, a portion of which will drop to the bottom line. In that regard, as you saw in our earnings announcement, we recorded a charge of $20 million related to driving the extension of our wholesale, SME and consumer digital products enhancing the end-to-end customer experience and deploying targeted marketing investments to accelerate digital customer acquisition and engagement. The net benefit of this investment will meaningfully contribute to an expansion in the Money Transfer segment's operating margins by approximately 50 to 75 basis points in 2026.

Moreover, we will continue to critically evaluate the opportunities to accelerate our Money Transfer digital revenue growth, which will likely require additional investment. We expect that the net benefit of these investments will drive additional growth as well as contribute to an expansion of our operating margins. This focused approach to accelerate our digital project -- product opportunities to operate and scale the business to fully leverage the company's strong capabilities, extensive global infrastructure, deep banking relationships and regulatory expertise is all designed to translate our advantages into scaled, sustainable growth in digital money transfer. We will share additional details regarding these initiatives in our upcoming quarters.

Finally, despite the macro economic and immigrated-related pressures impacting the fourth quarter. As Mike mentioned, we remain very confident in the underlying earnings power of this business. The momentum we see across EFT, early wins from CoreCard and the structural cost actions we have taken across the business including the ongoing optimization project in Money Transfer, giving us increasing confidence going into 2026.

As Mike mentioned earlier, based on our current operating trajectory and pipeline of growth initiatives, we anticipate adjusted earnings per share growth to growth of 10% to 15% in 2026, with multiple levers to drive performance as volume normalize and investments scale.

I'm on Slide 14 now. Turning to the full year. We delivered revenue of $4.2 billion, adjusted operating income of $550 million and an adjusted EBITDA of $743 million and adjusted earnings per share of $9.61. Essentially, the difference between the fourth quarter and the full year was from the increasing pressure in the second half of the year due to macroeconomic conditions and immigration-related policy decisions across several markets.

Despite these headwinds, the diversification of our portfolio, disciplined expense management and share repurchases we executed during the year enabled us to deliver another year-over-year double-digit earnings growth. I would also highlight that consolidated operating margins expanded by approximately 30 basis points versus the prior year, and we expect that margin trajectory to continue into 2026. As Mike mentioned earlier, adjusted EPS of $9.61 represented another year of double-digit growth, consistent with our long-term track record.

Let's now turn to Slide 17 for a few brief comments on the balance sheet. Slide 17 presents a summary of our balance sheet compared to the prior quarter. As you can see, we ended the quarter with $1 billion in unrestricted cash and debt of $2 billion. The decrease in cash is largely due to stock repurchases and debt repayments partially offset by cash generated from operations.

From a capital allocation standpoint, our priorities remain consistent, maintaining a leverage profile aligned with an investment-grade rating, investing in growth opportunities tied to our digital initiatives and returning excess capital to shareholders through disciplined share repurchases. In 2025, we repurchased $388 million of our shares, which represents essentially all of our adjusted earnings returned to shareholders through share buybacks. This $388 million does not include the 2.6 million shares repurchased and then reissued for the CoreCard acquisition. We believe this balanced approach, managing our balance sheet while actively deploying capital for growth and shareholder returns as central to our long-term value creation strategy.

With this, I will turn it over to Mike to wrap up the quarter.

Thanks, Rick. Growing this business has never been easy. Over 30 years, we have regularly been met with certain macroeconomic, regulatory and geopolitical challenges. Even though in the second half of the year, we faced stronger macro issues, we are not discouraged. We have entered the year with a lot of motivation and confidence. We will continue to focus on the areas that we can control, including executing on the growth of digital across all 3 segments, continuing to grow merchant processing in both EFT and epay, enhancing our banking infrastructure products and services with Ren and CoreCard, adding more branded payment products across more markets with epay, signing more partners and increasing transactions through our Dandelion network, expanding our digital money transfer presence, optimizing the business in all 3 segments and generating free cash flow and deploying our capital where it makes most sense, whether to deliver growth through acquisitions or repurchasing shares. This strategy has served us well, highlighted by our ability to deliver our fifth consecutive year of double-digit adjusted EPS growth in a difficult environment. So I am confident we can continue to deliver 10% to 15% earnings growth in 2026.

With that, we'd be happy to take questions. Operator, will you please assist.

And our first question for today comes from the line of Mike Grondahl from Northland.

Wanted to ask a little bit -- you've called out some macro issues at the lower end and immigration. Are you seeing the light at the end of the tunnel on any of those 3Q and 4Q and 1% constant currency growth? And did things pick up by the end of the year? Are they picking up in January at all? Just kind of curious what you're seeing there kind of real time.

Well, I would say it's -- first of all, whatever happens in January doesn't necessarily reflect the rest of the year. We do see some positive trends in January. But I wouldn't hang my head on. We have to kind of see what happens. It's still a very difficult environment out there. We've got a very handy immigrant administration here, which slows down my money transfer business. And so I would say we're cautiously optimistic, but I'd be careful jumping to conclusions.

Yes. I'd add to that, Mike, just a little bit of data, and again, as Mike says, I don't think you want to jump to any kind of quick conclusion here. But if we take a look at the transfers to Mexico, as reported by the Bank of Mexico, we saw declines as sharp as 16%. Now this was back more in the summertime period, okay? And those have consistently decreased.

Those drops have kind of -- they've had a bit of a sawtooth pattern to them. But let's say they've consistently decreased where actually in December, there was an increase year-over-year. So you kind of see the momentum moving a bit more north there and that you kind of take a look at that. You know that families in Mexico are dependent on the money being sent back home for their daily needs. And so maybe there's something in that kind of underlying improving trend. But as Mike says, let's not overthink it at this point, it's positive, I think. And we think that we're well positioned to take advantage of that because we continue to grow and expand our network.

We continue to put more emphasis in our digital business, and so from that standpoint, our operational execution is doing good. And if we really do see that this kind of northerly movement out of what you're seeing in Mexico is reflective of a broader environment, maybe that is more positive than you think. But at least those indicators, and I'll look more specifically to this Mexico stuff, they look like they're moving in the right direction.

Got it. And then secondly, it sounds like the money transfer review started a while ago. One, maybe what triggered that? And then two, any thoughts on doing something similar in EFT or epay?

So yes, we started this about this time last year, maybe a little before. So yes, we've been thinking about it. And kind of what triggered it. You've got to remember, Ria is an exceptional case of success. When we bought Ria 18 years ago, it was doing $200 million in revenue and now doing $2 billion. So we've grown a whole lot over the last decade. It's been -- we moved up to be from a very tiny player to the second largest money transfer house in the world.

And with that, we realized we need to take a hard look at how we're organized, what we're doing to make sure that our organization matches the size of the opportunity and our customer base. So that's why we did it. It wasn't -- I mean, we weren't doing it out of desperation. It was more like, boy, we have really grown. Let's make sure we're not leaving any money on the table. And as we -- as Rick said and I said, we're really focusing on the digital aspect of money transfer. And you can see with a 30-plus percent growth rate that we've had for several years now, we want to continue to grow that digital business.

Got it. And then I guess, just any thoughts on a similar review at EFT...

We're always doing that. We may do something like that in the others or we may sell for view, but it's -- I would say that the growth in EFT has not been quite as quick over the last couple of decades as maybe money transfer. So that's why we wanted to make sure. And the focus there, of course, is moving our bricks and mortar to more digital. .

And our next question comes from the line of Christopher Kennedy from William Blair.

Can you give us a little bit more details on the merchant processing business? We understand it's split between epay and the ATH segment? Any more color on the growth of that and the opportunities going forward.

We are getting pretty much blown away by that growth is kind of the bottom line. We probably do about 20% of that volume coming out of epay and the other 80% out of EFT. As you can see by those numbers in both of them, in the epay merchant acquiring business grew over 20%. Our merchant acquiring business in Greece and elsewhere that is run out of EFT has grown over 30%. So this is a big one for us. And it's now gotten to the point where the combined EBITDA of both of those endeavors is in the kind of $90-ish million. So it's not only growing fast, but it has size. So we're really excited about that.

Great. And then just a quick modeling question. Can you talk about free cash flow in 2025 and the prospects for 2026?

I'll let Rick do that one.

Well, as Mike said, we essentially generated about $400 million of free cash earnings there. And so now that obviously was offset with things like share repurchases, did a couple of little acquisition pieces there. We would expect '26 to be statistically no different than our earnings improvement, right? We expect our earnings to be going up 10% to 15%. And that should be -- we should see a similar kind of rhythm in our free cash flow.

Now then, as Mike said, we will be thoughtful on how we then deploy that free cash flow. Our first objective would be to support and develop our internally developed products, and Mike mentioned a couple of those in his comments there. We're going to continue to have very strong focus on our digital initiatives across all 3 segments. We've talked a lot about money transfer, but we've got initiatives going in all 3 segments, whether it's acquiring or it's gaming or it's money transfer, I mean, they're in every part of the business.

And so to that end, we'll continue to look for opportunities on the acquisition side that would be helpful to promoting and extending those digital growth strategies. So yes, net-net, I would expect that, that number will improve consistent with our EPS outlook for '26.

And our next question comes from the line of Pete Heckmann from D.A. Davidson.

I had a few follow-ups. In terms of CoreCard, can you give us the approximate revenue contribution for the partial quarter in the fourth quarter?

Yes, it was in the ballpark of $10 million to $12 million.

Okay. And -- that's helpful. And then just in terms of the pending Credia merchant acquiring acquisition. Can you give us maybe some brackets around potential purchase price and total revenue?

We -- I wouldn't put anything out there on the -- I mean, we haven't disclosed those kind of numbers. The purchase price was relatively small, and it really will be and it will only happen once we migrate the parts of the business into our platforms. But...

Like towards the last half of the year.

Yes. It's in the few of millions of dollars rather than hundreds of millions of dollars. So yes, it's quite low on the few of millions of dollars scale.

Okay. That's helpful. And certainly, that acquisition would lead us to believe that you just mentioned that the merchant acquiring business is generating strong growth organically off the base of the PBMA deal. Now you're adding in this tuck-in. Are there opportunities for other tuck-ins to continue...

We're looking for them, Pete. And so -- and we've been looking for them since we purchased them 3 years ago since we purchased the merchant acquirer business from, so we're looking. When we find a good one, we'll slip it in, but there's no guarantee to what you can find and what it will be priced at. So -- but I mean our -- all our growth up to this point, which probably has a compounded return of 30% over the last 3-or-so years has all been organic. So it's nice to be able to have a little inorganic tuck-in that we can also use some of our additional products on that they didn't have themselves to help them grow faster.

And Pete, I would add to it. We do see some across each of our businesses as opportunities. It's good to see that it appears that sellers are coming to their senses on valuation. I mean the whole payments industry is being hit extremely hard in terms of valuation, and that's starting to kind of sink in with sellers out there. And I'd also tell you kind of in terms of some of the things that we've seen, and I would even say on this Credia thing is the economics we will get out of the deal will be as good or better than share repurchases. So that will give you some perspective in terms of the efficiency of the acquisition versus even using it for share repurchases. We'll have as good or better economics than share repurchases.

And our next question comes from the line of Rayna Kumar from Oppenheimer.

I just want to go back to a CoreCard for a second. Can you talk about what your expectations are for CoreCard in 2026? And now that JPMorgan is going to be the issuer for Apple Card, is there a prospect for you to retain that Apple card relationship?

I -- well, we'll just say that -- we don't know that answer for sure, Rayna. But based upon JPMorgan's history, I wanted to do things in their own shop, I would say, long term, that would be doubtful. I'm not saying it's impossible. They may decide that because the CoreCard platform has a plethora of services and features that they don't have in their current platform. They might find that it's better to use our platform for a while until they make those transitions or maybe they won't. But we -- when we did the business model, we said, this is a good buy. If we can keep them through the end of their contract, which is 2027, and it may go further.

That makes sense. And anything you can say on just like the contribution of CoreCard in '26, what you're estimating?

Well, you can see what they had in their publicly reported information. We'll do that...

Better.

And -- so we're not putting a specific number out there for CoreCard. But as Mike said, we're already seeing the wins show up on the ledger. And the one -- I mean, the value that CoreCard brings to the table is they've got a great platform. They've got a great group of people that know this industry inside and out. They got a great reference customer that's better than anybody else you could probably have out there in Apple.

Now you put that together with us that has global distribution. Just like we did with Money Transfer, when we bought Money Transfer, it was highly focused on the United States. We're now around the world with that business. Same thing with epay. When we got epay, it was focused on the U.K. We've got epay now around the world. That's the same kind of customer reaction that we're seeing on the CoreCard product. It is the leading quality product in the market. And now we're exposing it to the rest of the world. So we're excited on seeing what the customer reaction is. But I would say you can see what their publicly reported numbers are, we'll do that good or better. And you can bet that we're driving it to be a heck of a lot better. But let's not -- I don't want to overhype the expectation.

But I will say, even though -- Rick is telling me not to overhype. The number of interested parties that have come out of the woodwork since this announcement has been phenomenal. So what we got to do is move those interested parties to closure and then we'll be cooking.

Okay. That's exciting, and I appreciate that. And then just 1 more, if I can sneak it in. Just like any thoughts on like segment EBITDA contribution for '26, like how we should think of the different growth rates by segment? And like I know a competitor recently announced an exclusive relationship with Kroger's, is there any impact there to your business?

Well, first of all, the Kroger impact to us will be marginal at best. And yes, so it unfortunately wasn't a great success in that regard. So nothing there to speak of. As it relates to -- the growth rates in that by segment, I think we'll kind of hold off on that. We've given you guidance for the EPS. You can kind of look at the -- what we've had historically as growth rates across those businesses. What I would probably say, without putting numbers out there, we would expect the growth rates out of EFT and Money Transfer to lead the way with epay in a lesser growth kind of profile as we see it right now. .

Although I know that Kevin is looking at a number of exciting products that hold out some opportunity. But yes, we'll hold off on putting specific numbers out there by segment. If you remember, a couple of years ago, we went through an approach of using an earnings guidance for the bottom line because essentially, what we were seeing is a dozen different numbers out there that if you meet, if you exceed one and you miss any one or the others, you really get penalized for it. And so we're trying to get the investors to focus on the strength of our total business and really reward us for -- again, this is the fifth year in a row with double-digit earnings growth.

I looked at the Fortune 500 stuff the other day. And the expectations for the full year are something like about 12% growth. When you say, all right, well, if that's what's out of the S&P 500, I mean, if that's out of the S&P 500, we did 12%, why aren't we getting the same kind of trading multiple, okay? Then if you took the 4 or 5 leading valuation guys out of those numbers, their numbers were 9% in growth year-over-year. Yet we've produced -- again, Mike said, the fifth year in a row of double-digit earnings growth, and we expect the same thing next year. So we've got a business that has great consistency, great continuity.

We have great diversification because we're not dependent upon any one market. Just look at Mexico, for example, if all of our business was going to Mexico, our results wouldn't be anywhere to what they are now. They would be down significantly, but we're diversified in that we're not dependent upon Mexico. We'd love to see better numbers come out of that market, but we have a great diversified business. And so we really try to want to try to get people to focus on the consistency and the reliability of double-digit earnings growth.

And our earnings are durable. I mean, they've been here for a long time, and they continue to be so.

And our next question comes from the line of Darrin Peller from Wolfe Research.

This is Daniel Krebs on for Darrin. I would love if you could discuss the recent DXC Hogan partnership, how you may think that can improve distribution of the issuer processing products and maybe where those efforts are being targeted by client or region?

Did you say Hogan partnership?

DXC, the DXC partnership .

I'm sorry, I'm unfamiliar with what that is.

Okay. No worries. You can take that 1 offline. Maybe switching to -- back to Credia Bank then. I know we're not giving a lot of specifics on the revenue. It sounds kind of smaller than. But if you could just compare and contrast the business relative to Pireus when you got it? Are we talking about a similar margin profile and growth profile as we look at combining those 2?

Well, we hope so. So they've got about 10% of our base of our number of merchants. So that gives you an idea of kind of its size. The one thing that has helped us grow that business where we've gone from about 18% market share in Greece to about 24% market share over the last 3.5 years, and that's in a highly competitive market. We've got -- we've grown that market share because we have a really good product set. And we do more than just merchant acquiring. We do DCC at these things. We do tax refund. We have various credit kinds of deals going on with our merchants.

So we continue to grow that business really quick -- really quickly. And I would expect that if we could add 20,000 more merchants, they should fall right there and lock step with it. So we're pretty excited. Plus, we're not stopping. We mentioned, too, that we did, what, 7,000-plus merchants organically in the fourth quarter. So we're going to keep working organically, not just inorganically.

And our next question comes from the line of Vasu Govil from KBW.

I guess just first one on the EPS guide of 10% to 15%. Maybe you could give us some color on sort of what the underlying macro assumptions are at the low end versus the high end, just given we're seeing some pressure there.

I don't think we have high-end and low-end assumption. We have our forecast that falls in that range. There's a lot of things that can happen positive and negative in a year or so, and we've been able to deliver that for the last 5 years. So we feel pretty comfortable with that range. I'd like to beat it, like we did a year before last, like we did in '24, but we're just going to put that out there to give people a little bit of a yardstick of where we think we're going to land.

Great. And then, Mike, I know you talked about sort of diversifying the EFT revenue mix away from the ATM business. You've obviously made a bunch of acquisitions to make that happen. Can you remind us what that mix looks like today? And sort of if you look out 2 to 3 years, what do you envision that mix could be? And then similarly on the margin profile, I'm guessing it will be accretive to the margin profile, but any color on how we can see that evolve over time.

Yes. Can you repeat that for me? .

The question.

Yes. EFT revenue mix, you guys have been making acquisitions and you're talking about that mix of diversifying away from the ATM business. So just looking for some color on what that mix going to look like 2 to 3 years from now, just given that you're buying non-ATM businesses and some of them are growing at a faster pace. And then also like what that means for margins over time?

Well, Vasu, there's also another nuance there because you say diversifying away from the ATM business. What that assumes is that all we do is you're kind of -- we're probably referring to our owned ATM business. What we found is because of our scale and our -- and the size and our reach, we do a lot of banking infrastructure deals where we're actually being contracted by the bank to do their ATMs or provide them ATM services. So unlike our traditional Perth focused ATMs, where if a tourist does not walk up to the ATM, you don't make money if he uses less cash this year than last year, you make less money. These are infrastructure deals. These are long-term contracts with banks.

And so what we're finding now is you've kind of got to break out -- when you look at ATMs, you can't like throw them all in 1 bucket because some of them, it really doesn't matter how much people are going to spend with cash, we're going to get paid the same or more. And as far as what percentage I'll let Rick try to take a shot at that. But I just want to kind of educate people, everybody wants to say, this is all ATMs, it's not all ATM.

Yes. We've shown you some charts and graphs before that, that show that the ATM business is slightly less than 20% of our consolidation there. And so -- and we've even put out a slide that said -- when you look out several years, that number is anticipated maybe to be something like 13, 14 kind of in that ballpark, right? So we continue to see the mix shift to where we won't get rid of the ATM business, but we're not -- as Mike said, we're not focused on it being a growth engine.

We're seeing more of the growth come out of our digital strategy, being either infrastructure support for banks or acquiring or like CoreCard where, again, which falls into that infrastructure piece. So that will continue to become a bigger and bigger part of it. And then as it relates to the margins, I would expect that we would see an improving margin structure.

Today, in our EFT business. We have an operating margin that's just north of 20-ish kind of percent. Okay? And if you kind of take a look at the acquiring business, it generally is going to be in a 25-ish kind of ZIP code, the better, okay? You look at the infrastructure or like the issuing business, it's going to be more in the 40% to 50% kind of range. And so we would anticipate seeing that, that mix will shift down for the ATM portion of it, and that will have better margins out of the EFT segment over time.

And I think yes -- yes, yes, Vasu, that was nice to talk to you. And with everybody else, I noticed we're at the top of the hour. So we're going to close ourselves off. We appreciate your interest and look forward to talking to you in the future. Thank you very much. .

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

Thank you. Good morning, everyone, and welcome to Euronet's Third Quarter 2025 Earnings Conference Call. On the call today, we have Mike Brown, our Chairman and CEO; as well as Rick Weller, our CFO.

Before we begin, I need to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we will be making today. Statements made on this call that concern Euronet's or its management's intentions, expectations or predictions of further performance are forward-looking statements. Euronet's actual results may vary materially from those anticipated in these forward-looking statements as a result of a number of factors that are listed on the second slide of our presentation. In addition, the PowerPoint presentation includes a reconciliation of the non-GAAP financial measures we'll be using during the call to the most comparable GAAP measures.

Now I'll turn the call over to our CFO, Rick Weller.

Thank you, Adam, and good morning, everyone. Thank you for joining us today. I'll start my remarks on Slide 5. We delivered revenue of $1.1 billion, operating income of $195 million, adjusted EBITDA of $245 million and adjusted earnings per share of $3.62. Revenue growth was below our expectations due to softness in certain areas of the business, which we believe was largely attributable to macroeconomic and policy decisions surrounding immigration around the world. However, the diversity of our business model, share repurchases during the year and effective expense management allowed us to offset those impacts and deliver another quarter of solid results. Finally, I want to highlight that our consolidated operating margins expanded by approximately 40 basis points over the prior year quarter.

Next slide, please. Year-over-year, most of the major currencies we operate in strengthened compared to the dollar. To normalize the impact of currency fluctuations, we have presented our results adjusted for currency on the next slide.

I'm now on Slide 7. Our EFT segment delivered another good quarter, where revenues grew 5%, operating income and adjusted EBITDA, each growing 4%. While results were somewhat lighter than expected, the business continues to drive growth, led by continued expansion in developing markets such as Morocco, Egypt and the Philippines, where we are expanding services, adding ATMs and strengthening banking and fintech relationships. Our merchant services business in Greece also delivered its strongest quarter since the 2002 acquisition with operating income up 33% year-over-year, driven by robust transaction volume and continued merchant expansion. Across Europe, travel volumes remained steady through the summer, supported by sustained demand for leisure travel.

According to the European Travel Commission's report, overall tourism in Europe grew approximately 3.3% year-over-year. At the same time, Reuters noted that tourism related sales in Spain grew about 3%. Roughly half the pace of the prior year as visitors curtailed discretionary spending on leisure and dining. Taken together, these reports highlight somewhat of a mixed picture across Europe. While consumer demand -- travel demand remains solid, spending patterns were more selective. Even so, our EFT business outpaced the broader European trend, growing about 5%. Although this remains slightly below our expectations, our broader geographic diversity, steady travel activity and continued network expansion position us well for sustained growth and resilience heading into year-end.

In our epay segment, revenue declined by approximately 5% compared to the prior year, while operating income increased 4% and adjusted EBITDA 2%. The reduction in revenue reflects a shift within our wholesale mobile top-up business, where a high-volume, low-value product exited the portfolio. While this change reduced top line revenue it only marginally impacted our operating income. Moreover, its impact was largely contained to the third quarter. And accordingly, will have no meaningful impact on future quarters. Excluding this product discontinuance, our constant currency revenue would have grown at a rate similar to the operating income, constant currency growth rate. Our core digital content and payment processing activities remain stable and continue to provide a solid foundation for future growth.

Money Transfer revenue grew 1% year-over-year, while operating income and adjusted EBITDA decreased by 2% and 1%, respectively. Revenue growth was driven primarily by a 32% increase in direct-to-consumer digital transactions, reflecting strong -- continued strong demand for our digital money transfer products. However, this growth was partially offset by softer transaction volumes across certain corridors. Mixed information on global economic uncertainty and recent immigration policy changes in the United States, as well as in other areas of the world have slowed migration inflows and reduced remittance activity in key money transfer sending markets.

According to Reuters, remittances to money to Mexico declined more than 12% year-over-year in mid-2025, underscoring how this shift -- how shifts in immigration policy can impact transaction volumes in real time. Remittances between the U.S. and Mexico represent approximately 1/4 of our U.S. remittance flows and only about 1/10 of our global transfers. This quarter, our U.S. to Mexico corridor was flat year-over-year. It's somewhat of a bitter sweet feeling to have flat year-over-year growth to Mexico, better in that Reuters estimates a 12% year-over-year decline but suite in that our Money Transfer business outperformed the market by 12%. Interestingly enough, that's consistent with how Ria has performed over the last 18 years. It's this strength that gives us confidence for solid future growth.

Operating income and adjusted EBITDA also reflected incremental year-over-year marketing investments to support continued expansion of our digital business and the Dandelion product. Despite some pressures, we believe solid third quarter consolidated -- we delivered solid third quarter consolidated earnings. And as we look to the fourth quarter, we expect to finish the year with year-over-year earnings growth to be generally similar to the third quarter, thereby supporting our confidence of being within the range of 12% to 16% year-over-year earnings growth as we previously provided.

Next slide, please. Slide 8 presents a summary of our balance sheet compared to the prior quarter. As you can see, we ended the third quarter with $1.2 billion in unrestricted cash and debt of $2.3 billion. The decrease in cash is largely due to stock repurchases, offset by cash generated from operations. Cash returned from ATMs following the summer season peak and working capital fluctuations. In the third quarter, we completed a $1 billion convertible bond offering at an attractive interest rate of 0.625% maturing in 2030. The proceeds were used to pay down the majority of our revolving credit facility. This transaction strengthens our financial flexibility to invest in growth opportunities across our payments, money transfer and digital asset infrastructure initiatives.

As we think about capital allocation, we look to maintain a debt level commensurate with an investment-grade rating, acquiring growth driving businesses in line with our digital initiatives and share repurchases. As for share repurchases, including the shares we've repurchased we made through the first 9 months of this year, we have repurchased on average, approximately 85% of our annual earnings over the past 4 years. Said differently, 85% of the earnings have been returned to shareholders through share repurchases.

In this quarter, we repurchased approximately $130 million of our shares. These repurchases were beneficial in a number of ways, including the stabilization of our share price on the day of marketing the bonds and offset against any future dilution of convertible shares, which I sure would like to see happen. And finally, a locked-in pretax ROI of approximately 13%, given consensus 2025 adjusted EPS.

With that, I'll turn it over to Mike.

Thank you, Rick, and thank you, everybody, for joining today. In the third quarter, we delivered adjusted earnings per share growth of 19% year-over-year, another quarter of double-digit earnings growth. As Rick mentioned, that keeps us on track to deliver our 12% to 16% 2025 earnings growth. This quarter's performance reflects effective execution across many areas of our business, and you'll know I'll call out some of those wins in just a minute. But I also think it is important to note that our growth was tempered by lighter-than-expected revenue across all 3 segments.

As we expected our business, it became clear that the broad global economic uncertainty played a role. The UN's Department of Economic and Social Affairs stated in their midyear update, the world economy is at a precarious moment, heightened trade tensions and policy uncertainty have meaningfully weakened the global outlook for 2025. We felt that uncertainty across most of our business from travel and consumer spending to cross-border remittances and payment processing. That said, we view these challenges as transitory headwinds not long-term obstacles. The underlying fundamentals of our business remain strong, and we expect these pressures to ease.

On top of the global uncertainty impacting all 3 segments, immigration policies in the U.S. and other countries have pressured the Money Transfer segment. The tightening of immigration reform added enforcement and delays in work authorizations, which most of us in the U.S. often in the press, have slowed cross-border remittances. But there are reform actions in other countries, most of us don't see U.S. transfers to Mexico, a quarter that represents about 10% of our global remittance volume has seen the strongest pressure. In the third quarter, transactions in that quarter were flat compared to last year, which is unusual, given the consistent growth we've historically seen.

While these policy changes have clearly weighed on our results, we believe they too are transitory in nature, and we would expect volumes to rebound once these conditions stabilize. Now we can't control the timing of these external factors, but we can control how we execute and invest for the future. I recently spent some time with our global leadership team and the energy in that room was unmistakable. From new market expansion and a strong pipeline for Ren and Dandelion to exciting work integrating AI into our operations and expanding our stable coin on-ramp and off-ramp capabilities.

All right. Let's move on to Slide #11, we'll talk about the quarter. Slide 11. This slide provides a high-level view of how and where we will drive our growth strategy into the future. As a reminder from our discussions over the past year, our business model is really built on 2 key revenue pillars, payment and transaction processing and then cross-border and foreign exchange, which drive our growth opportunities that continue to expand as payments become increasingly global, digital and flexible. The first pillar is payment and transaction processing. With which we facilitate high-volume transactions for banks, merchants and brand partners, continually expanding our use cases to stay aligned with evolving demand. During the quarter, we signed additional new merchants in our merchant services business continue to move forward to complete the acquisition of CoreCard and signed a new Ren and strategic network participation agreement. We'll get into more detail on these exciting deals later in the presentation.

The second pillar is cross-border and foreign exchange, which powers our FX-related use cases and distributes FX services through both owned and third-party channels across both physical and digital touch points. This forms the foundation of our global money transfer business and the innovation behind our Dandelion platform, which delivers real-time cross-border payments to bank accounts, cards and digital wallets worldwide. In the third quarter, we signed a major new Dandelion partnership with Citigroup, enabling Citi's clients to make near instant full value payments into digital wallets across multiple markets. This agreement reinforces Dandelion's position as the world's largest real-time cross-border payment network and highlights the value global banks plays in our platform.

During the quarter, we entered into a new partnership with Fireblocks, the leading digital asset infrastructure provider. This collaboration establishes an important element for our digital asset strategy, enabling interoperability with blockchain systems for faster, more efficient money movement. It also supports stable coin-based remittances, consumer wallets and real-time settlement, advancing our long-term vision for integrating digital assets into our network.

Now let's move on to Slide 12 and discuss our stable coin use cases. A lot of people talk about stable coin, but they don't quite know what they're talking about. Here's what we're doing. The passage of the [ Genius Act ] marks an important milestone for digital assets. It legitimizes stable coins within regulated financial frameworks, bringing much-needed clarity to the industry. While Euronet was blockchain ready well before this legislation, this new framework opens the door for established players like us to responsibly integrate blockchain technology for stable coin or tokenized payments across our global payment ecosystem.

Through the utilization of our on- and off-ramp capabilities, including the ability to use our global ATM network to convert stable coins into local currency. We're enabling customers and partners to move seamlessly between digital assets and fiat currency. In practical terms, this means that consumers can instantly convert digital assets to fiat currency to pay for everyday essentials, things like groceries, medicine, rent, utilities, through our trusted payout network. By combining our Ren and Dandelion platforms with the global reach of our Ria and XE distribution networks, we are making digital money usable everywhere securely and at scale.

We plan to launch our first set of stable coin enabled use cases in the first quarter of 2026, beginning with treasury settlement, cross-border transfers and consumer cash-out functionality in select markets. These pilots will demonstrate how our network and bridge, digital and fiat ecosystem, in a safe, compliant and practical way, creating new efficiencies for our partners and new choices for consumers. Finally, we'll leverage stable coins or tokenized payments within our treasury operations to move funds between accounts and jurisdictions faster and more efficiently, reducing idle cash and enabling always on settlement.

In summary, while we move money fast today, stable coins will bring even more efficiencies and create new opportunities. I'm really excited to leverage our industry-leading global on- and off-ramp assets to deliver real-world stable coin use cases to the world.

Now let's go on to Slide #13. Slide 13, the EFT segment. It's comprised of 3 key components: banking services, the Ren Payments Platform and merchant services, each plays a key role in driving both transaction growth and digital expansion across our global payments ecosystem. Our banking services continued to have steady growth, reflecting the strength of our value proposition for consumers, financial institutions and merchants. In Poland, we expanded our footprint by adding 3 new merchant partners to support ATM deposit functionality. In the Philippines, we signed an ATM outsourcing agreement with Banco de Oro, the largest bank in the Philippines.

And as we move on to Ren, on the heels of our agreement with a top 3 U.S. bank, we continue to gain momentum. This quarter, we signed a software licensing agreement with IDFC First Bank, one of India's leading private sector banks. Under this agreement, Ren will power the bank's ATMs, debit cards and transaction switching through a unique AWS architecture, the first of its kind in India. With the pending acquisition of CoreCard we'll extend further into credit processing with provable, scalable, revolving credit technology. Together, Ren and CoreCard position us to deliver a full suite of real-time cloud-based solutions across issuing, acquiring and credit management.

While subject to completion of the pending merger, the response from our customers and sales prospects has been very, very encouraging. Now here are a few comments on our merchant services business. This quarter, we processed the highest number of card transaction volume since the acquisition and added 7,000 new merchants. These results reflect continued momentum in our acquiring business and highlight how our digital initiatives continue to shift our revenue mix. Overall, it's been an exciting quarter for the EFT business with the combination of continued market expansion and the pending CoreCard acquisition, we're well positioned to deliver sustained growth.

Now let's move on to epay. As you know, epay is a leading global provider of payment processing and prepaid solutions, specifically focused on connecting brands to consumers through innovation and our expansive distribution network. Our brand partners include the biggest names in tech, Apple, Google, Sony, Microsoft, Amazon, to name a few, along with thousands of others. Through a platform-as-a-service model, epay enables retailers, mobile operators and brands to manage transactions, payments and content in a manner that best aligns with their customer base. Increasingly, consumers are embracing the convenience of a fully digital experience.

Today, about 70% of all epay transactions are digital flowing across e-commerce merchants, digital banks or leading financial wallets around the world. As digital grows, epay continues to invest in security, scalability and compliance to offer the most trusted service in the industry to consumers, brands and merchants. During the quarter, we had several notable signings and launches that further expand epay's global footprint and strengthen our partnerships across digital content and payment ecosystem.

On the success of our proprietary Prezzy card in New Zealand, we launched [ Gipzy ], epay's own-branded nonreloadable open loop Visa card in Australia. We expanded our partnership with Epic Games, introducing fixed denomination cards that enhance how players purchase digital content. Previously, users could only purchase Fortnite in-game currency called [ B Buck ]. Now users can use this card to purchase all content available in the Epic Game Store. We signed a new distribution agreement with Riot Games in India, broadening our reach with one of the world's fastest-growing gaming market. We also signed a gift card distribution agreement in Mexico with [ Mercado Libre ], Latin America's largest e-commerce and marketplace platform.

In our payment processing business, we continue to see strong momentum. We're cross-selling payment services to our existing epay content distribution merchants, both retail and online, and that strategy is paying off. Revenue from payments grew 27% year-over-year, reflecting the strength of our omnichannel approach. The pipeline remains robust with several exciting deals we expect to close in the near future.

Now let's move on to Slide #15, and we'll talk about Money Transfer. As I mentioned earlier, changes to immigration policy and broader economic challenges weighed on our Money Transfer segment's revenue and transaction growth this quarter. However, as Rick mentioned, Ria continued to outperform the broader market decline to Mexico by 12%. Despite these near-term headwinds, we remain confident in Ria's ability to outpace the market. supported by its strong fundamentals and differentiated business model. Our omnichannel approach, expansive geographic presence, channel diversity and industry-leading real-time payments network set us apart from both digital only and legacy multichannel competitors. This foundation differentiates us from our competitors and positions us well to capture new opportunities in cross-border payments particularly through our Dandelion strategy, which continues to gain traction.

Building on this momentum, as previously mentioned, we announced a new collaboration between Dandelion and Citibank. This partnership enhances the city's cross-border payments and remittance offering and expands its reach into the business to consumer uses such as payroll, social benefit and gig economy payments. We also launched Dandelion's service with Union Bank, the tenth largest bank in the Philippines, and will soon launch Commonwealth Bank in Australia, another top 50 global bank. This and several other signings and launches during the quarter further validate Dandelion's role at the center of a faster, more modern global payments ecosystem.

Within the remittance space, our digital business continues to perform well. Direct-to-consumer digital transactions grew 32% year-over-year and now represents 16% of total money transfer transactions demonstrating continued adoption of our digital channel. Ria also achieved a key retail win this quarter through an exclusive partnership with Heritage Grocers Group which operates 115 Hispanic-focused grocery stores under brands, including [ Cardena's Markets and Tony's Fresh Market. This was a competitive win and followed a successful mid-September launch. We are excited about the growth prospects with this partnership.

On the network side, I want to briefly highlight again the partnership with Fireblocks and what that means for our Money Transfer segment. This collaboration will unlock interoperability between traditional and blockchain systems for faster, more efficient money movement. Within Money Transfer, this infrastructure will support stable coin-based remittances on an off-ramp capabilities, consumer wallets and real-time settlements advancing our long-term vision for integrating digital assets into our network. Bear in mind, these on and off ramps are not easy to build. They're built one by one, a real advantage that we are excited to leverage.

With that, we'll move on to the numbers -- to Slide 16, and we'll wrap up the quarter. As we wrap up, I'd like to highlight the growing traction across our Ren and Dandelion initiatives. While these opportunities often evolve long sales cycles and reference customers, our recent wins with Citi, the Commonwealth Bank of Australia and a leading U.S. bank demonstrates that our investments are paying off. We're entering a phase of accelerated adoption, and there's a lot to be excited about, including we delivered a record-setting third quarter results with adjusted EPS of $3.62 and a 19% increase over the prior year. We continue to make steady progress towards completing the CoreCard acquisition with CoreCard shareholders scheduled to vote on the merger next week, an important milestone in expanding our digital payment capabilities.

In August, we completed a $1 billion convertible debt offering at 0.625% interest rate maturing in 2030. The proceeds strengthened our balance sheet and increased our flexibility to pursue strategic growth opportunities. We signed a new partnership with Citibank, which will enable Citi's institutional clients to deliver near instant full value payments into digital wallets around the world through our Dandelion network, further validating Dandelion's leadership in real-time cross-border payments. And finally, we entered into a strategic agreement with Fireblocks, a leading digital asset infrastructure provider to bring blockchain stable point technology within Euronet's global payment network positioning us at the forefront of the next generation of financial connectivity and opening new and exciting opportunities to leverage our world-class on and off ramps.

Together, these achievements demonstrate the continued strength, adaptability and innovation of Euronet's global payments network. As we look ahead, we are confident in our strategy, our technology and our ability to deliver sustained growth well into the future. We are looking forward to the fourth quarter. And once again, we are pleased to reaffirm our earnings expectations of 12% to 16% growth for the year.

With that, I will be happy to take questions. Operator, would you please assist?

[Operator Instructions] Our first question comes from Vasu Govil with KBW.

Maybe to start off, Rick and Mike, if you guys could help unpack the slight softness in the EFT segment. It sounded like the travel trends you saw in Europe were pretty solid, but maybe there were some differences in spending patterns. So just trying to understand if the weakness was all in the ATM business or elsewhere like in the merchant acquiring and then whether it was transaction slowdown or just the transaction value slowdown, if you could help us unpack that, that would be helpful.

Okay. So first of all, all the data that we're getting from every place basically says that people are being very careful on their -- with their vacation spend with hotels costing 40% more than they did in '19, airplane flights 50% more at least than they did in 2019 when people land, they have a little less money to spend. And then on top of that, there's a lot of worry across the world in the economy. So people are just being a little bit careful. So we've seen -- the nice thing about the -- we've seen that more in the ATMs. We actually have seen some of that too in merchant acquiring, but it's just our merchant acquiring, it's kind of growing like a band sheet. So we don't feel it quite as much there. But certainly, in the ATM business, people are just basically spending less, and then we see that at the ATMs.

Got it. And then on the Money Transfer segment, I know immigration policies have been changing, and that's been a headwind in the industry, but you guys were actually bucking the trend up until last quarter. I recall you had a very strong 2Q. And I think you had called out July trends were actually improving versus June. So it would seem that most of the deterioration happened in August and September. So any color on the exit run rate, what you're seeing in October and sort of what changed?

Well, so we've seen that. We've seen that a little choppy. We said, yes, July looked good, and then sure enough, the next month or so, it went down. And like we landed where we landed and we're seeing October much stronger than we saw in September. So I think it's choppy is the answer. I don't think I can tell you for sure what's going on, but it smells better right now. But it did last quarter at the same time. So we're just being cautious. We're 3 weeks in, and we're beating our forecast as we sit. We are growing many times faster than the industry is growing. And so -- or many percent faster than the industry is growing. And in particularly, the largest quarter from the U.S. is obviously to Mexico with that down 12%, and that's flat, I'd call that a win. So as this stuff settles, we'll be still be well positioned. And I think bucking the trend makes sense. I mean, we bucked it last time by about 8%. I think the industry was down in the neighborhood of of 3% or 4%. We were up 5% or 6%. So we bucked the trend again last quarter. We are doing the same thing this quarter, but the trend is down.

Our next question comes from Gus Gala with Monness, Crespi, Hardt.

You talk a little bit about pricing intra-quarter in Money Transfer seems like there were pricing drops in certain quarters, Mexico being one of them, U.S. to Mexico. Is there maybe a return to a less rational pricing environment? And if that's the case in the past, I think we saw it coming more so from smaller marginal players, how has this evolved? Maybe you can comment on how it looks along the vertices of digital versus retail and then domestic versus abroad? And I have a follow-up.

Yes. I would say on pricing, pretty consistent with what we've seen over time. There's pockets where it's a little bit more. I would tell you, we probably saw a little bit more of that in some of our Middle East kind of areas there where a couple of -- and that's also kind of impacted a bit by the unusual nature of some of the black markets and how some of those currencies move in some of those markets. So that's where we've seen it a bit more. But on -- overall, on average, we had pretty consistent on a year-over-year basis in terms of revenues and gross profits per transaction. So I think our team did a nice job kind of balancing a little bit more the pricing pressure, like I say, in a couple of those markets with a little opportunity and some others. So net-net, it didn't show up in any kind of of a meaningfully adverse way in the third quarter.

Got it. I appreciate that color. And then a similar line of questioning on Money Transfer just as the growth picked up from 29% to 32%. Over time, what do you think penetration of the transaction base could be digital? I think right now, it's about 13%. If you take the 6 million or so transactions .

I think our goal is to get our growth rate higher than 32% and in they're closer to 40%. That's our goal. And the nice thing is we're doing this without spending an absolute fortune. What people don't realize us compared to a pure digital player is when you walk through the immigrant neighborhoods, there are Ria plastered signs on all these little bodega windows. And so we've got a great marketing conduit there that's very reasonably priced. And so we hope to do better than 32%, but you're right. We watched ourselves grow from 30% or 29% to 32%. We hope that continues. And we're going to keep investing in it because it seems like those customers, their lifetime value is wonderful for us.

Yes. And we've gone from essentially -- well, we've gone from 0 to as we pointed out earlier, about 16% of those transactions are digital now. There are varying views as to what the market is out there. But let's say, in the 30% to 35% of the total business. And so we certainly have our goal set at getting to that mark. And as Mike said, as we grow in the 30-plus percent range, you could see how within a reasonable period of time, we could be at that level. So lots of growth ambition here. We'll have to see if the market continues to move further up that, let's call it, roughly 1/3, that's more digitally oriented. .

In some cases, we're quick to think that customers will want to quickly use a digital product because it's easy, it's convenient. On the other hand, we know from talking with customers that not all customers want to use the digital product. They -- you have to remember the customer comes from a lesser developed country. They haven't used financial products like this before. They're not as comfortable with security and things like that. And so we have a lot of customers tell us we really like the over-the-counter product. We -- that's the way we prefer to do business. So we've got a business that's designed at delivering a product that the customer wants. We want to give them the product that's the most efficient for them. We'll continue to focus on that. But we just have to bear in mind that some customers out there absolutely want the product that we're doing a great job of delivering today.

And this is a great point. I mean what people don't get is that digital money transfers have been around for 20 years for 2 full decades and still the total penetration is about 35% of the market. Why is it after 2 decades that we can only get to roughly 1/3 of the potential transactions, I think it's consumer preference. So we want to make sure we're an omnichannel player. We're going to play it both ways. We're going to take people. We get a lot of our customers who are digital that actually go back and forth between, I think it was 13%, 14% of our digital customers go back and forth between physical and digital.

Our next question comes from Mike Grondahl with Northland.

Revenues been decelerating this year, 9% in 1Q, 6% constant currency in 2Q and then 1% in 3Q. How do you want people to think about constant currency revenue 4Q in '26. Anything to call out epay promotions or anything? Can you just talk through that a little bit?

Well, all I can tell you is that our bottom-up forecast for Q4 look like it's turning around the other way. Now we'll see if that all comes through, but we've got early indications in October that it seems to be. So maybe we're through the worst of it, we'll find out.

Got it. And if you had to say, it looks like money transfer was the most pressure, and you've called out the immigration stuff. What would you put in the second and third bucket is where pressure really existed?

It's economics. I mean let's not -- so let's just say immigrant policy was exactly the same as it was 3 years ago. The reality is with inflation going up, everything costing more, people are sending back less money or doing it less frequently because they just have less money. When the economy is strong, this is something you'll notice for all this money transfer company. When the economy is strong, all our numbers go up when the economy is weak, all our numbers go down. It really doesn't matter. So we've got a weakened economy now. And there -- and people are worried because some forecasters are predicting that it's going to get even weaker. So that's what's working against this.

Got it. And hey, post the convert transaction, and I know CoreCard is closing soon. How are you thinking about buyback versus acquisition?

I think it's the same as we always have, Mike. The reality is we look for good accretive acquisitions, ones that can add to our strategy and if we can't find those, then we will look to share buybacks if we believe that our stock is undervalued and it is now, so we just have to look. And the nice thing is we're seeing opportunities. We basically bought back the shares that are required for the CoreCard acquisition, we bought those back in the second quarter. So net-net for the year, it's really no impact.

So -- but we kind of look at it every quarter and we say, okay, we threw off a little over $100 million in positive cash in quarter? What do we have on the plate for potential acquisitions? And if we don't see anything, then we will -- and our stock is undervalued, we'll look at buying back stock. We've got opportunities all over the place. I mean we've got them in Ren. We've got them in Dandelion, we've got them with CoreCard. Its a big one here that we're doing. We've got some acquiring things we're looking at. So I'm hoping that we can continue to spend -- what we've done is spend like Rick said, we spent 85% of our positive cash flow over the last 4 years on stock buybacks. I'd like to -- to me, a better balance might be 50-50.

Got it. And then just lastly, quick on the CoreCard. You're going to be issuing, is it about 2.5 million shares for that?

2.3.

Our next question comes from Charles Nabhan with Stephens.

I wanted to drill into your comments around epay. Specifically, I think you had mentioned that aside from the headwind, that segment would have grown in line with operating income, which is roughly 4%. So I guess, first, if my math is correct, that equates to a roughly $15 million headwind from the discontinuation of that business? And then secondly, I wanted to confirm that. And then secondly, if you put that aside, it's still growing by mid-single digits, which is below trend. So I wanted to see if there was anything going on from a promotional standpoint that was lower this quarter? Or if we should think about that mid-single-digit trajectory is sort of the normalized growth rate for epay?

No, I think first of all, I think you've got the math roughly right there. And then as Mike said, we feel a little of the economic pressure here, too, because a lot of the folks that purchase the epay product, it essentially is discretionary spend purchasing stuff. Gaming, entertainment and things like that. So kind of at the edge, if that takes off 2%, 3% or 4%, that kind of keeps you from being at that kind of upper single-digit growth rate rather than kind of a mid-single-digit growth rate. So that's kind of what we see. And most -- almost all of what we have in our epay business is outside of the United States. So those are economies that we don't see as much around here in the press. But it's the Asian economies and things like that.

Some of these economies have the reciprocal effect of things like tariffs, if you think about it. Here you think tariffs are adding cost into the picture over there, it might be that tariffs are reducing the amount of sales that they're able to do, and that impacts jobs and things like that. And so we've seen that in that part of the business. So I don't see anything fundamentally in there. There wasn't anything different really on the promotion side of the business. And as we pointed out in here, we're making a lot of good headway signing up some alternative things with like the gaming community. There were some changes in that business whereby weren't certain parties weren't allowed to restrict people's ability to use credits and things like that. We anticipate another party that's going to break open like at 2. So we see some movement in that area. Also, if you just take a look at the -- I'll just call it the entertainment gaming world there. You may or may not know, but those numbers now exceed the video. The movie industry. So we see good opportunity in that business, but I think we've just kind of felt a little of that pressure on the economy there as well.

Got it. And as a follow-up on Money Transfer, are you seeing your customers send larger balances at a lesser frequency? And then secondly, you had characterize the conditions of transient, particularly around the U.S. Mexico corridor. And I know it's tough to pin down the timing of that, but what gives you the confidence that we're going to move past this. Are you seeing anything in the data that just kind of gives you that confidence? Or are you having conversations with your customers or even regulators that just kind of gives you the confidence that we could eventually move past this over the next couple of quarters?

Well, I think it gets down to some real macro perspectives on the economy. And you've even seen some of these kind of things play out as the border restrictions have tightened in this new administration is not only the United States, but all developing -- developed countries, are essentially seeing population declines, they're seeing the need to have labor come in and support their economy. In the United States, we have a very strong need for labor in several industries. You could see it play out in, for example, the farming industry, where there were special appeals made so that there would be, let's say, potentially less pressure on migrant labor to help with crop harvesting and things like that.

So we've seen kind of a little bit of that reaction where the administration has said, oh, okay, yes, we do need -- and they obviously acknowledge that we do need that type of labor to support this economy. You look at the estimates of immigration around the world. And again, like I say, in other developed economies that need it, we talked recently in the second quarter with the acquisition of this small business in Japan. Another economy that is dependent upon having migrant labor come in to help in that market. So those are the things that we look to, to say, we believe that it will be migratory. The -- and then the transitory or, I'm sorry, not migratory to figure out which tories I'm talking about here.

But that's what kind of gives us that view. And it's not different than if we look to the past 18 years that we've had the real money transfer business. We will see some ebb and flows in terms of what happens to different administrations and things like us. But at the end of the day, these economies are dependent upon these types of labor sources, and we feel that it will resume.

Our next question comes from Darrin Peller with Wolfe Research.

This is Daniel Krebs on for Darrin. If we could move back to the EFT segment. I'm looking at ATMs growing pretty consistently 4% to 5% overall this year. Could you unpack that by geography a little bit? What portion of that is driven by non-European ATMs?

It was a little heavier weighted towards the non-European side. And as you may recall, a number of our prior discussions as we continue to expand. Today, we called out places like Morocco, Egypt, some places like that. We see opportunity there. We were hoping to make a little more advancement in some of the South or Lat Am markets, one in particular. And then the sponsor bank we were using was the U.S. put a hold on doing business with that bank. So we had to scramble and change sponsor banks, which we've successfully done. And so it will now come back into the fold. But net-net, a little more biased towards the non-European side.

And let's not forget too that the non-European side throws off considerably more profit per ATM on average than the European one. So but they're a bugger to get into because you've got to get a sponsor bank. You've got to let the central bank has to give you authorization. You've got to find your source of cash. It's not like Europe where one license gives you access to all the markets. So it takes a while to do it, but they're very lucrative countries.

Got it. Understood. And then if we sort of extrapolate these trends, if you look out 5 years from today, Mike, do you envision having fewer ATMs in Europe than you do today or perhaps the trend is offset by more outsourced banking deal?

So that's an interesting thing. So on one hand, I would say if transactions continue to be stressed on how much people are spending and so forth. We may take a hard look at every one of our ATMs and just make sure that we call the ones that aren't profitable enough in Europe, and that could happen. On the other hand, we see another where we've seen that a number of countries and banks use us as an extension of banking infrastructure. It's not a tourist game anymore. You take a look at Spain, we had 2,000 ATMs in Spain, and then they were -- then they added a surcharge in Spain and then all the banks there wanted to have wholesale access to those ATMs because the central government was forcing the banks to give cash access yet a number of the biggest banks in the market had combined and they closed a bunch of branches.

If you want to look on Google it up, but you can look at the term cash desert all across Europe. Branches are closing. And so government are requiring banks to give easy cash access to people and work like the last man standing has a good national ATM network. So we're basically being paid by the banks to do that requirement for them. So now in Spain, we have 4,000 ATMs, where we probably would have stopped. So we've got some -- every market is a little bit different. So you could see some markets. We might close some ATMs in other markets, we might have an opportunity because we're playing the bank infrastructure game, which, by the way, is not tourist based, like I said, and not tourists. You don't have to worry about how many -- how much the tourist spend because they just want X amount of ATMs that they have access to. That's a pretty good game for us.

This question comes from Rayna Kumar with Oppenheimer.

This is Anthony Cyganovich calling in for Rayna. Rick, you had mentioned some immigration impact in other markets outside of the U.S. in regards to Money Transfers. Is there any color you can give on which other corridors you're seeing a little bit of softer growth?

Well, now you're talking about, okay, corridors because some of these markets go across several of the corridors. We've seen some stuff like into like the Bangladesh area, like so transfers into those areas, the Pakistan type of areas and a little lighter transactions going into places like Turkey. And if you kind of map some of those corridors with countries like Germany and U.K., you could see that they've got some immigration actions going on, some different positions that are being taken there. But those are kind of some examples of what we've seen out there.

Okay. Got it. That's helpful. I guess my follow-up question is, if you guys look at kind of these macro and policy related to challenges persisting over the next few quarters. I mean Euronet historically has been a double-digit EPS grower throughout its history. I mean do you feel like this is -- if this persists, Euronet can still generate double-digit EPS growth in 2026?

Absolutely. Absolutely. I mean we've got so many things going on. We've been doing this for 20 years. We've had 1 year that we didn't do that out of 20 years -- 30 years, actually. And we see a lot of opportunities. I mean, we've got CoreCard hopefully, that if their shareholders vote for that. There's a lot of opportunity there. We kind of see it across the board. There are several other things we announced in these quarters do not kick off revenues instantly, but over time, they do, and that's what we're feeling comfortable about.

Yes. And let's kind of put in perspective the quality of the assets that we have in our business, okay? We've got operations literally around the world. We serve customers in different types of segments. We're moving much more rapidly towards digitization on everything, as we've shown you in the past, ATM, the money that we -- revenue we make off of ATMs is less than 20% of our consolidated revenue, with additions into our business like CoreCard, which opens up a new channel, a new product for us to sell. And it really has been it's really been exciting to see the energy coming from the sales team that have talked with folks about the credit product that we're going to be offering. .

And that's not in the United States. It's outside the United States, where credit has not been as highly exploited as it has been here in the United States. And so these fintechs and banks, they see real opportunity in that. Mike talked about the stable coin. I think we're on the front edge of seeing something happen. And again, look at the quality of our asset infrastructure with our on and off ramps. You can throw some code together to do a blockchain transaction pretty quickly. But you can't throw together a network that's got 4 billion bank accounts connected to it, 3 billion wallet accounts over 600,000 places to be able to pick up money or send money, we've got an enviable on and off ramp network that can really be leveraged with the advances in tokenization or stable coins or things like that.

And that's really been what you've seen over the life of Euronet. When we had picked up the epay business, I'll just recount that it used to be that it was 100% mobile top-up. It's now more than 70% nonmobile top-up, it used to be 100% at the retail. It's now more than 70% transactions are going through digital. So we've got this wonderful asset base here. We see some things happening on the horizon that really give us the advantage to go after that in a great way. And it's not restricted to any particular geography. We've got great technology that underpins all of this. So yes, I mean, Mike's comment, do we -- are we able to keep this -- we don't see that there's any reason that we shouldn't be able to continue our history of double-digit earnings growth.

Thank you, everybody. I think that's it. Thank you, everybody, for joining today. Operator, you can close down the call, but thanks the bundle. See you next time.

This concludes today's conference call. Thank you for participating. You may now disconnect.

Greetings, and welcome to the Euronet Worldwide Second Quarter 2025 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce your host, Mr. Adam Godderz, General Counsel of Euronet Worldwide. Thank you. Mr. Godderz, you may begin.

Thank you, and good morning, everyone, and welcome to Euronet's Second Quarter 2025 Earnings Conference Call today. On the call, we have Mike Brown, our Chairman and CEO; as well as Rick Weller, our CFO.

Before we begin, I need to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we will be making today.

Statements made on this call that concern Euronet or its management's intentions, expectations or predictions of further performance are forward-looking statements. Euronet's actual results may vary materially from those anticipated in these forward-looking statements as a result of a number of factors that are listed on that second slide of our presentation. In addition, the PowerPoint presentation includes a reconciliation of the non-GAAP financial measures we'll be using during the call to their most comparable GAAP measures.

At this time, I'll turn the call over to our CEO, Mike Brown.

Thank you, Adam, and thank you, everybody, for joining us on our call today. I'll begin my comments on Slide #5. But before I jump into the quarterly results, I'm sure you read our release last night where we announced the acquisition of CoreCard, a leading-edge proven scaled credit card processing platform. This acquisition is exciting in so many ways.

First and foremost, it extends our strategy into the digital payments processing space. CoreCard perfectly complements our Ren platform with a modern revolving credit technology that is proven at scale. Moreover, I'll remind you that issuing and processing of cards is not new to us. We already processed tens of millions of cards across Europe and Asia.

The addition of this leading credit platform gives us yet more growth opportunities as it enables us to go after the $10 billion-plus revenue TAM market with very attractive operating margins approaching 50% and elevated market rates of growth in large markets where we have strong footholds, Europe and Asia. And finally, it is not just a consumer credit -- it's not just consumer credit, CoreCard also serves as a business lending sector.

Let me continue my excitement. As CoreCard was not enough, just this week, we signed a significant Ren deal with one of the 3 largest U.S. banks. We've been in pursuit of this deal for a couple of years, which makes this announcement that much more exciting. Our Ren technology will be used to drive thousands of ATMs across the country.

Clearly, this was a very competitive process across all industry leaders. And so to be selected for this deal, it really underscores the capability and confidence that banking leaders have in our Ren platform. These 2 deals further our digital strategy. And while we are excited that these deals will contribute to growth in future quarters, I don't want to overlook the great operating performance of the business this quarter.

The second quarter, we delivered constant currency operating income growth year-over-year of 13%. I think this number underscores the strength of our business, and these exciting digital announcements further position us to continue our 20-year track record of double-digit earnings growth. We're a growth business with even more exciting opportunities today than yesterday.

Now I will hand it off to Rick to discuss our results in more detail.

Thank you, Mike. Good morning, and thank you to everyone for joining us today. I will begin my comments on Slide 7. We delivered a record second quarter on all key reported consolidated metrics. We delivered revenue of $1.1 billion, operating income of $159 million and adjusted EBITDA of $206 million; and finally, adjusted EPS of $2.56.

The Money Transfer segment led the way by producing constant currency operating income growth of 33% despite significant macro uncertainties that range from immigration reform to global conflict, a great quarter.

Our second quarter adjusted EPS grew 14% year-over-year. During the quarter, we repurchased $247 million of our shares. Given the timing of the repurchases, there was only a marginal benefit to the second quarter adjusted EPS.

I'll also point out that our consolidated operating margins expanded by more than 112 basis points over the prior year, and we expect to see a continuation of posting expanded margins as we go through the second half of the year.

Slide 8 presents a summary of our balance sheet compared to the prior quarter. As you can see, we ended the second quarter with $1.3 billion in unrestricted cash and debt of $2.4 billion. The decrease in cash is largely due to stock repurchases offset by cash generated from operations and working capital fluctuations.

Regarding our share repurchases, we anticipated that there was a reasonable likelihood of completing the CoreCard acquisition, and it was important to CoreCard that the deal be a stock-for-stock transaction for tax purposes. Accordingly, we knew a couple of hundred million dollars for share repurchases made sense whether we completed the acquisition or not. In that, we have now signed the purchase agreement and look forward to closing. We essentially have done a cash deal after issuing shares that we just repurchased.

Slide 9 shows our results on a reported basis. Year-over-year, the major currencies we operate in strengthened compared to the dollar. To normalize the impact of currency fluctuations, we have presented our results adjusted for currency on the next slide.

On Slide 10 now. EFT segment revenue grew 6%. Operating income and adjusted EBITDA were in line with the prior year results. It's worth noting that the second quarter last year, EFT posted exceptionally strong operating income, making it a tough comparison. While the second quarter is a difficult comp to the prior year, we expect to see the strength of EFT earnings grow to restore itself in the third quarter.

epay grew revenue 5%, operating income 17% and EBITDA 15% when compared to the prior year. The main drivers of growth this quarter were attributable to the -- our payment business and continued growth of our digital channel sales in multiple markets, predominantly relating to gaming content.

Money Transfer revenue, operating income and adjusted EBITDA grew 6%, 33% and 28%, respectively. The revenue growth was primarily driven by volume via higher principal amount sent per transaction and growth in cross-border transactions, offset by a decrease in intra-U.S. transaction.

Direct-to-consumer digital transactions grew by 29%, reflecting continued consumer demand for digital products. Operating income and adjusted EBITDA growth outpaced revenue growth significantly, leveraging of margin to the bottom line due to gross margin expansion driven by opportunities developed from foreign currency fluctuations, leverage of scale and effective expense management.

Before I close on the quarter, I'd like to point out that we saw roughly $0.05 a share impact due to higher interest expense due to carrying the refinance convertible at revolver rates. As you know, we have utilized convertible transactions in our capital structure and would expect to continue with acceptable market conditions and terms. We did not issue any such securities in Q2, but remain interested in doing so, thereby improving interest expense.

Further, we had about $0.05 per share for higher income taxes, about half of which related to greater impacts from state taxes on the convertible retirement and the other half due to expense assignment to foreign operations. Looking forward for the balance of the year, we would expect the tax rate to tick up 1% or 2%. In summary, we are pleased to reaffirm the 12% to 16% earnings growth expectation we have for 2025.

With this, I'll turn it back over to Mike.

Okay. Thank you, Rick, and everybody move on to Slide 12. Graph on Slide 12 illustrates over the past 10 years, the strength of our business lies in the diversity of our 3 segments as well as the diversity within those segments. Now let's move to Slide #13, and we'll discuss the results for the segment, starting with EFT. Slide 13.

Our EFT segment, which was founded as a cash ATM business, expanded its digital capabilities through the acquisition of CoreCard, the previously acquired Infinitum, a 2-factor authentication provider and continued traction of Ren in the marketplace.

Ren, a digital modern end-to-end payments platform that provides banks, fintechs and governments an innovative solution to keep pace with the ever-changing payments landscape. Ren provides acquiring, issuing, processing and access to real-time payment networks. We are receiving accolades around the world for its digital innovation, including the recognition from one of the top 3 banks in the United States.

This leading U.S. bank isn't alone. During the quarter, we signed a deposit network participation agreement with Santander, the third largest bank in Poland and ATM outsourcing agreements with Security Bank in the Philippines, Axis Bank, the third largest bank in India and May Bank in the Philippines. And all of these services will be powered by Ren, further evidence that banks around the globe recognize that Euronet's technology allows them to serve their customers in a more modern and real-time way.

A few years ago, we added merchant acquiring, another digital business line, which continues to perform very well. In fact, this quarter, we saw the highest card transaction volume we have processed since we acquired the business. To further the growth, in the second quarter, we successfully completed the integration with Oracle OPI, which significantly strengthens our position within the premium hospitality sector, and we signed more than 9,000 new merchants, including one of Greece's top basketball teams.

It's been an exciting few days in the EFT business when combined with our existing strategic growth opportunities, including expanding international and domestic access fees, increasing interchange rates and a recent market expansion. The acquisition of CoreCard and the agreement with this large U.S. bank will continue to fuel EFT growth in the second half of the year and beyond.

So now let's go on to Slide #14, and I'll talk about epay. epay has evolved from a retail-based mobile top-up business to a global partner who provides a broad offering of digital payment solutions for some of the largest consumer brands in the world, including Apple, Google, Sony, Netflix and a number of local players.

I commonly get asked, what is epay? epay allows the consumer to participate in the digital economy in the ways they prefer, whether it is for budgeting, security or convenience. Today, 70% of our epay transactions are 100% digital consumer experience across e-commerce merchants, digital banks and prominent wallets around the world. Moreover, the majority of the remaining 30% of the transactions use a digital payment method to purchase those services.

Notable signings in this quarter. Content distribution signing in Turkey this quarter with Riot Games, publisher of League of Legends. Another signing this quarter was with Etsy gift cards, which had previously only been available for purchase from Etsy directly. And lastly, we signed an agreement to launch Amazon Prime subscription services in India.

Now let's move on to Slide 15 and talk about Money Transfer. Okay. Slide 15. This quarter, our Money Transfer segment delivered exceptional results, underscoring the strength and breadth of our globally diversified business model. Operating income grew 33% year-over-year, fueled by a disciplined cost management and strong performance across a wide range of channels and geographies.

This performance is particularly impressive given the evolving immigration dynamics in North America and the recent announcement of the new remittance tax. To help you understand the impact, the revenue subject to the new 1% remittance tax affects only 27% of Money Transfer segment or 12% of Euronet's consolidated revenues, limiting our overall exposure.

Let me start with research from the Center of Global Development. They found that a 1% increase in fees resulted in a 1.6% decline in remittance volume, which could either be fewer sends or lesser amounts of money sent. This research suggests that while the potential negative impact of 1.6% is only 0.2% of our consolidated revenue. While we would clearly rather not see this tax, the research indicates it will not have a significant impact on our business when it begins next January.

We also know that a significant number of our customers have bank accounts. And while they may be more comfortable operating with cash, they may prefer a debit card to avoid this tax further and -- which further reduces the impact on our revenues.

Even with the turbulence in the market, our key performance indicators paint a compelling picture of our ability to continue to deliver growth. Our transaction volume increased 4%, but the principal transferred increased 10%. Digital transactions grew 29%. And our digital payout product, a powerful engine of our ongoing growth is up 20% year-over-year, now composing 55% of total volume.

These results highlight the powerful momentum behind our digital transformation and underscore our position as a global leader in money transfer. We leverage the world's premier real-time cross-border payments network, robust omnichannel capabilities and our innovative wholesale strategy with Dandelion.

We achieved an important expansion in the Asia Pac region last month through our acquisition of a majority position in Kyodai Remittance, a leading Japanese multichannel operator. This strategic integration not only gives us access to a license in the country's evolving remittance landscape, but Kyodai produces a very rare type 1 funds transfer service provider license, which allows it to deliver high-value inbound bank deposits and important capability for our Dandelion network. Japan is a sizable $6 billion outbound remittance market with an influx of foreign workers. We anticipate outbound growth will considerably outpace overall market trends.

Notable enhancements to Money Transfer's digital product were made through Ria's and Xe's partnership with Google and Nickel, a European neobank. Other noteworthy accomplishments included the launch of 20 new partners across 19 countries, extending our global presence that now spans 200 countries and territories.

And in Austria, we renewed our partnership with the Austrian Post. Dandelion Wholesale continued to grow its client base, adding Union Bank in the Philippines, the 10th largest bank in the country, Peru's leading wallet, Yape used by 65% of the adult population, Chile's Vita Wallet and U.K.'s BMS and Banco Guayaquil, Ecuador's second largest bank and a Ren customer, a very interesting cross-sell that we got going there.

Dandelion's comprehensive solutions, bank-grade compliance, global reach, real-time deposits, account validation and seamless integration through API or SWIFT/BIC are increasingly recognized by leading institutions worldwide. With a 33% year-over-year growth in operating income, a healthy pipeline, market expansion, our Money Transfer segment is positioned to maintain its strong momentum and deliver continued value for our investors and customers.

Slide #16. As I mentioned earlier, Euronet has entered into a definitive agreement yesterday to acquire CoreCard Corporation, a leading U.S.-based provider of credit card processing platforms. This acquisition marks a strategic milestone in our long-term growth plan, reinforcing our commitment to scalable, high-margin digital businesses that align with global payment trends. As outlined in the press release, this is an all-stock transaction valued at approximately $248 million. We expect the transaction to be adjusted EPS accretive in the first full year post close.

CoreCard has a proven track record of serving the strong global brands like Apple, Goldman Sachs, American Express and fintech innovators like Cardless and Gemini. In certain analyst reports covering CoreCard, there are concerns expressed over the new reports that Goldman Sachs may sell the Apple portfolio. We are obviously aware of such a possibility, and we have factored that into our purchase decision, so there is no real surprise here.

The merits of CoreCard go well beyond any single program, and this transaction has been undertaken without any dependency on a positive outcome relating to the Goldman sales process. On the technology front, CoreCard's platform spans debit, prepaid and revolving credit solutions, not only for consumers but businesses as well.

We are really excited about CoreCard's potential beyond the U.S. We plan to extend CoreCard's reach into emerging markets where Euronet has a strong presence and where demand for credit is growing. This transaction will support the continued growth of our EFT segment while expanding our addressable market within our stated strategic pillars.

Next slide, please. You may recognize this slide, which is Slide #17 from our year-end and first quarter earnings announcement. As highlighted, issuing is a core strategic growth initiative, illustrating how CoreCard fits perfectly into our long-term digital evolution. This acquisition is not just a tactical win. It is a strategic alignment with our long-term growth thesis.

To grow Euronet, we are targeting large addressable markets like the $1.8 quadrillion in global payments and the $320 trillion in foreign exchange and cross-border flows. By providing credit card processing, CoreCard enhances our ability to serve the payment and transaction processing pillar. EFT will now cover prepaid, debit and credit card issuing, along with our other proven abilities in acquiring, real-time payments, switching and ATM management.

Please move on to Slide #18. A lot of people ask us where we're going. If we transform our strategic vision into a simple illustration, you can see how our business mix is evolving and why this acquisition is strategically important.

Over the past decade, we've executed a deliberate shift away from our legacy cash-based business lines like Euronet-owned ATMs and towards digital offerings. 2019, Euronet-owned ATMs represented 25% of our revenue mix. By 2024, that number was reduced to 19%, and we're targeting 7% by 2034. CoreCard helps drive this dramatic transformation by offering a high-growth, high-margin and highly differentiated digital offering.

Let's talk more about CoreCard and their offering so you can get a little bit familiar. CoreCard provides a modern revolving credit processing platform built for scale and designed for banks, brands and fintechs. It currently supports millions of card accounts and processes billions of transactions annually.

While the technology is certainly impressive, their list of clients are equally impressive. Goldman Sachs uses CoreCard to process the Apple Card. Cardless uses CoreCard to power its various card programs and has been in the news recently as the chosen partner for the soon-to-be-released Coinbase credit card. This, along with other marquee clients, validates CoreCard's ability to deliver at scale with precision and reliability. Revolving credit remains one of the most profitable and strategically important offerings for banks and fintechs.

In the U.S. and globally, this space is dominated by a handful of incumbents. Why? Because building and operating a revolving credit platform at scale is one of the most complex challenges facing solution providers. This isn't just about writing code. This is about mastering the intricacies of revolving credit logic where balances shift due to delayed payments, disputes, returns and interest recalculations.

It's a domain where business logic is king and where even the most seasoned engineers can't just simply code their way through without deep domain knowledge, which CoreCard has. And here's the strategic kicker. While many new competitors focus on debit and prepaid, segments with capped interchange and limited margin, CoreCard is built for where banks and fintechs see real value.

In summary, CoreCard is not just a product, it's a proven scalable platform trusted by some of the most innovative names in the financial services industry. It gives us a springboard into the U.S. credit issuing market and beyond, backed by a leadership team with deep roots in the space. The platform supports a range of use cases from stablecoins and global brands to lending, early wage access, health care and commercial credit.

Now let's move on to the next slide, and I'll show you our go-to-market strategy for the U.S. Our strategy to expand CoreCard in the U.S. is phased, deliberate and anchored in high opportunity segments. We will continue to participate in the embedded finance opportunity by partnering with fintechs, digital banks and program managers across diverse use cases.

CoreCard's flexible API-driven architecture and marquee client roster, including Apple, Cardless and Gemini, give us a strong foundation to scale. Our existing epay relationships also offer a unique cross-sell opportunity. Brand partners currently issuing prepaid credit may be interested in launching credit card programs, creating a natural adjacency for growth.

Our next target here is unlocking the commercial credit opportunities with Tier 2 and Tier 3 banks. Commercial credit presents a more immediate opportunity than consumer credit to the B2B digital initiatives. We are seeing more activity in this space as of late, especially with Tier 2 and Tier 3 banks. These are the banks that range from $10 billion to $250 billion in asset size. CoreCard has already signed one such bank, Banc of California. And while commercial credit is our immediate focus, we also see a strategic path to consumer credit.

By initially supporting banks with adjunct solutions, we can gradually modernize their consumer credit platforms, helping them differentiate in a market dominated by templatized offerings and slow turnaround time. So while the U.S. offers an attractive market, here is where we get really excited. We see even more opportunity in the rest of the world.

Let's go on to the next slide, and we'll talk. Looking beyond the U.S., our global expansion strategy is anchored in our strong presence and trusted relationships across Asia and Latin America. These regions represent the next frontier for growth for modern credit issuance on the back of rising GDP per capita and an increase in consumption expenditures.

In Phase 1, we will focus on cross-selling CoreCard's revolving credit capabilities to our existing base of payment processing clients, such as Grab, which is the Uber of Asia, Standard Chartered, ICICI Bank, Axis Bank, Banco Pichincha and the Bank of the Philippines Islands, just to name a few. These relationships provide a natural entry point to introduce our credit solution.

In India, for example, the number of credit cards -- credit card issuers has doubled in 5 years and more than half are already Euronet processing clients for other payment domains. The number of credit cards is expected to double again by 2029, driven by rising GDP and a fierce appetite for more consumer consumption.

We also plan to leverage our broader ecosystem of FI partners, particularly our epay and Dandelion divisions, which already serve banks and fintechs in high-growth markets. These partnerships offer additional cross-selling opportunities and reinforce our ability to deliver integrated end-to-end solutions across the payments value chain.

In Phase 2, we'll target new financial institutions and existing relationships in markets where we have strong brand equity. Many of these institutions are constrained by legacy platforms provided by regional and local players and are actively seeking modern, scalable alternatives.

Finally, we also anticipate a structural shift in the regulatory landscape across emerging markets. As credit markets deepen and regulations evolve, we expect a broader wave of fintechs to enter the credit card space, transitioning from prepaid to credit issuance.

Today, many are held back by regulatory constraints and limited access to credit infrastructure. As these barriers recede with our established relationships and proven capabilities, we're well positioned to lead with this transition.

Similar to how we grew Ria from a U.S.-centric position, we see an opportunity to use our global footprint to accelerate the growth of CoreCard. Emerging markets are our favorite hunting ground and as demonstrated by our success signing those Ren deals.

Slide #22. This acquisition represents an important step in Euronet's long-term strategy to scale our digital payments business and deepen our presence into more resilient technology-driven revenue streams. At its core, the rationale is anchored in the large and growing opportunity in credit issuing, particularly revolving credit, which remains one of the most lucrative revenue pools in payments.

CoreCard is 1 of 3 platforms in the U.S. proven at scale for revolving credit, and this is a rare opportunity to own such a platform, which is API-first and has already earned the trust of marquee innovative clients like Apple. It brings industrial-grade stability and the flexibility to serve both fintech innovators and traditional banks.

This acquisition provides a growth driver to support our digital diversification strategy. CoreCard's marquee clients and proven platform give us immediate momentum to scale across both fintech and the banking segments in the U.S. and globally.

The CoreCard world fits seamlessly into our ecosystem, complementing our strength in payments processing, brand partnerships and global distribution and enables us to deliver broader, more differentiated value propositions. We are super excited about the opportunity this brings. This acquisition as a catalyst, expanding our payments technology portfolio, accelerating our shift to digital and positioning Euronet as the preferred innovation partner for fintechs and a leading modern card issuing platform for fintechs and banks in the U.S. and globally.

Now I'll close out the quarter. Before I close, I'd like to address 2 emerging opportunities for Euronet. First, artificial intelligence continues to shape the narrative across industries and for good reasons. At our company, we view AI not just as a tool but as a strategic enabler across our enterprise. We've harnessed AI to elevate the customer experience, making interactions more seamless, personalized and responsive.

Behind the scenes, it's driving operational efficiencies in areas such as contract generation, regulatory compliance and multilingual communication. This is part of our broader commitment to building a smarter, faster and more agile organization.

The second area of growing interest is stablecoin and its potential implications for our business. Our proprietary Ren platform is already architected to support stablecoins and has, in fact, processed blockchain-native transactions, positioning us well to pursue further integration.

On the operational front, we've initiated discussions with several select partners regarding stablecoin's facilitation. And our treasury team is actively evaluating its utility as part of our capital management strategy. While we're still early in this exploration, we see promise in how digital assets may drive new use cases to deliver speed, transparency and efficiency.

While we do not yet know how to quantify the future impact of AI or stablecoin, we will continue to pursue these opportunities that are beneficial to our business. And hopefully, we have conveyed the strategic shift to the digital business that plays in the $1.8 quadrillion global payments market with endless potential for growth.

Supporting our model, we have core assets. We have this newly announced acquisition of CoreCard. We have our Ren technology. We have our Dandelion network. Our global footprint of licensed and regulated entities. We have distribution partners in the form of banks, retailers, company-owned stores, ATMs and POS terminals and our people. The best I could ask for with consistent track record of delivering growth year after year.

As I boil it all down, I hope you will take away 3 important messages. We are moving in a strong strategic digital direction as evidenced with the CoreCard acquisition and the recently announced Ren deals.

epay is not a cash business. It's now nearly all digital payment transactions. And we have consistent double-digit operating results, reflecting the strength of our global asset diversity. We're looking forward to the remainder of 2025. And with a strong second quarter, we are pleased to reaffirm our earnings expectation of 12% to 16% growth for the year.

We'll be happy to take questions. Operator, will you assist?

[Operator Instructions] Our first question comes from the line of Vasu Govil with KBW.

I guess maybe the first one, just on the CoreCard acquisition, Mike, you gave us quite a bit on sort of how you see the revenue synergies playing out over time. Just on the Apple partnership that you called out and the risk of it potentially going away, given just the revenue concentration there, just hoping you can give us some more color on how the math would work on making the deal accretive if that relationship went away. I mean do you have more visibility into other deals in the pipeline that's giving you confidence there? Just any color there would be helpful.

We do. And we also have these potentials. I mean we're out there doing debit card issuing for a whole bunch of banks and fintechs around the world, particularly in Asia and a bit in South America. And these customers have been asking about credit. And so to be able to give them the most sophisticated credit platform in the world because Apple demanded that to give to their customers with their card, we've got a heck of an asset to cross-sell.

So when we did our analysis, we assumed that Apple would go away at some point in the future, although it's going to take a few years to do that because it is such a sophisticated -- it has such a sophisticated super set of features that no other credit card in the U.S. has.

So even if somebody buys it, they've got using somebody else or their own internal system, it's going to take quite a bit of modification. And then they're going to have to bring over the $20 billion portfolio without problems. So we figure we've got them for a couple of 3 years anyway, and that's what it was sold today.

And then -- and during that time, we will have a great marquee customer to use as our -- as an example, as a reference customer to sell into new people. And in the meantime, whoever they sell it to, if they don't have CoreCard now, maybe that offers us an opportunity to sell CoreCard right back into them so they can upgrade.

That's very helpful. And then maybe just a second question on the EFT segment growth. On a constant currency basis, that actually decelerated this quarter, even though typically second quarter is a stronger quarter for you. So any color on what drove that decel? And also, how should we think about incremental margins for that business on a go-forward basis?

I know you've said structurally costs in the business are higher relative to pre-pandemic, there's just more inflation. But is high teens the run rate on incremental margins that we can -- we should be sort of modeling going forward? Or do you see room for improvement there?

Well, a last year good quarter kind of hunt you this year. So we had just a killer Q2 last year. And so when we compare, it looks like a deceleration. But reality is we're -- it was just a Q2 thing. That's why we're really looking at Q3 as we'll get back into the driver's seat with respect to acceleration. So we're not really worried about that deceleration. We've got a lot of opportunity in Q2 and Q3.

The whole tourist season has elongated -- so there's less than -- actually less in the second and third quarters or less in, we'll call it, May, June, July, August, and it gets spread into more months on both ends. So we think that our margins will increase there as our transactions increase.

And we've just got some new stuff kind of that things like our DAF transactions, which basically are doing the same number of transactions but at a higher revenue, that will help our margins as well.

Our next question comes from the line of Peter Heckmann with D.A. Davidson.

Congratulations on the top 3 bank. Mike, when do you think we can start to see revenue start there? And when would you expect it to hit the full run rate?

To tell you the truth, we've already -- we already have revenue coming from them, and it's only going to accelerate. We kind of had pre-full signature kind of revenue from them as we did some work with them to give them a super set of features they've never had before. And this should start kind of immediately.

So I'd say most of it is going to come fourth quarter and beyond. But it's a big deal with a top 3 bank. And let me tell you, every other bank in the country has the same problem this bank had. I can't go into that detail right now, but we solved it, and we're going to cross sell the same solution to other banks as well with a great reference customer.

And Pete, while clearly, we're going to make money on it and stuff like that. I think the importance here is the significance of a bank that's in the top 3 in the United States. We've sold Ren around the world. We've had great success with that and things like that. At some point, we'll put out a press release that actually names the bank and that. But this is a bank recognizing that we have the leading industry technology out there. And I think that, that will be a very strong statement as we continue the momentum of Ren sales.

So it certainly will bring in revenue, but I tell you what, having that as a reference customer will be very helpful for building on the Ren reputation. And now you put behind that, the CoreCard with arguably one of the most respected cards in the world, the Apple Card and having that technology available. We think that this is just a super combination and a super play.

That's great. That's great. And then so in terms of looking at software, with the acquisition of CoreCard and acknowledging that certainly the Goldman Sachs relationship is going to be around for 3, 4, 5, potentially more years, when do you think the company should be able to hit that maybe $250 million software revenue target? Do you think that can be hit in 2028?

$250 million is a little steep for 2028. I think that's a little steep. Our goal with Ren was to deliver $100 million in pretax and op income. And so we're a few years away from that, but these big deals are really accelerants. So we'll see. We don't really put -- we'll try to actually handicap that for you. We're thinking even maybe about having an Investor Day in the fall. And when we do, we'll kind of lay that out for you.

Okay. That would be great. I think the market would welcome that and welcome the opportunity to get deeper into the business.

Our next question comes from the line of Gus Gala with Monness, Crespi, Hardt.

Ren, I believe, had grown to be a sizable chunk, let's call it, 8 digits, right, millions, 80% margins. Is there an opportunity to bring up the core card margin number up? I appreciate all the comments on the cross-sell and go-to-market opportunity, but really digging down on the opportunity to maybe replatform, do a little cost removal. The other part of that...

It's a combination of -- we'll be able to -- as we combine, we'll be able to get some cost synergies between the 2 companies. That one was public and we were public. We've got other ideas as well. But volume is the easiest way. You just put more banks on the platform and you spread the overhead across more revenue. So it's for sure, those margins should increase.

Got it. And then on the U.S. deal, which congrats. What is -- how should we be thinking about the unit economics of that? I mean, clear like on the ramp timing, but is there anything we should be thinking of in terms of contribution margin, EBIT margin? I imagine being a top 3 bank, there might be some negotiating leverage on their end. Just thinking about that, how you balance that out?

Well, it's obviously a high-margin business because it's a software type of transaction. But in terms of how that flows into the rest of the P&L, I'd characterize it as, a, it's an important win. It doesn't directionally change the whole P&L. It's another brick in building the building. So it will benefit it, but it doesn't change the -- it's not going to change next year, next quarter's numbers dramatically just because of that.

What will change it is more and more of those Ren sales, which will be more and more possible because of the continued recognition of the quality and contribution of this product. So I think I would view it as more of an indicator of where we can go as opposed to moving the Excel schedule next quarter.

But it's very -- it's software. So it's very, very high margin. So we'll take it. You don't want -- yes, it's going to be wonderful.

Got it. Got it. And if I can squeeze one more in on Money Transfer. Anything on what you're seeing in July for digital and retail? I mean are you seeing perhaps a troughing in either of those in retail specifically around first [indiscernible].

No, it's funny you should ask that, Gus. But I haven't heard anybody say, holy smoke, you guys crushed it on the money transfer, which you should have said right out of the block. I mean, here, everybody is having all these problems, and we are just crushing our numbers because we intend to be #1 in the world, and we're getting closer and closer every day.

But with respect to what I saw -- what we've seen so far in July, a big uptick over June. So we do not see any troughing. In fact, we see just the opposite. We're excited about both the digital growth, which is probably 6% higher than we saw in June, and we're also seeing retail growth.

So -- and the nice thing, let's not forget the U.S. only accounts for, call it, 40% of Ria's numbers and maybe even a little bit less, right?

1/3.

1/3, yes, 33%. So we're seeing strong growth around the world as well where they don't quite have these immigration challenges like what we're seeing here in the United States. So Money Transfer is doing really well. July is doing better than what we saw last month.

Next question comes from the line of Mike Grondahl with Northland Securities.

Just two quick questions. One, any update on epay promotions and how you think they'll fall during the back half of the year? And then two, in regards to money transfer, I don't know, sometimes you've called out the strength from FX. Just any color on how helpful that was. We saw a lot of incremental margin in that business.

With respect to the promotions, we've got a few scheduled for end of Q3, beginning of Q4. So we'll see when and how those work out for us. With respect...

But Pete, nothing right now on the drawing board that -- I'm sorry, Mike, excuse me. I don't know if that's a compliment of not, but nothing on the drawing board that would dramatically change the comparisons on periods over periods. It's, let's call it, business as usual as opposed to anything that's an expected onetime huge change.

And then with respect to Money Transfer, yes, I think somewhere in my comment, I mentioned that we did see some benefit because of the FX fluctuation gyrations that were going on during the quarter. So we did get a little bit of benefit out of that.

As also pointed out, we saw a little higher average value per transaction come through, which again sometimes is what you see when you see a little bit of that volatility on the FX. So net-net, we did see a little bit of benefit on it. And we'll see if any of that happens again as we go forward. But certainly, it helped improve the margins a little, which obviously helps support like a 33% year-over-year operating income growth.

Yes, on that 6% revenue constant currency. So great. Okay.

Next question comes from the line of Chris Kennedy with William Blair.

CoreCard has talked about its business could grow like 30% to 40% if you exclude the concentration with Goldman. Is there any way to think about kind of what you're thinking about the sustainable growth is of CoreCard?

Well, I think they're probably -- their estimates are probably tighter than ours, but we hope to supercharge that by just opening -- because they're basically all in the U.S. And we're going to open up the rest of the world to them. So hopefully, if they do what they say and we give these connections to different parts of the world, we can even accelerate that.

Yes. And I'd also say, look, they've built a wonderful product, and they've got a team that's been very focused on the quality the scalability and delivering a product that's been tested by Apple. So they've put a lot of effort into the quality of that product, which we really respect.

On the other hand, they haven't put much effort into sales and marketing. And this is where we see kind of a hand-in-glove kind of fit. We've got operations around the world. We've got relationships with hundreds of banks with brands like Apple and Google and Paytm. I mean, we could just keep going down the list, Nu, which is an online bank in Brazil.

I mean we have this tremendous list of relationships that cut across the money transfer business, the epay business, the EFT business. And so here's where we see bringing a great technical product with our distribution around the world. And so yes, we expect to see that we will be able to essentially supercharge that sales process.

And now bear in mind that credit transactions, especially if it has anything to do with a conversion process, okay? The sales cycle is not 2 weeks, but we'll be actively going after it right out of the gate here.

Next question comes from the line of Charles Nabhan with Stephens.

Mike, you had referenced the complexities associated with revolving credit issuance. And I was hoping you could double-click on that. I know there's only a handful of players in that market due to some of those complexities. But what is it specifically about that product that has created a moat within that industry?

Well, Apple has been -- I mean Apple came from nothing to a $20 billion portfolio in, what, 4, 5 years because they've got a super set of features and they've got a great brand. And they do all kinds of things, whether it's cash back, whether it's recalculating your interest all the way back multiple months, depending on if there were returns or chargebacks or whatever.

Years.

Years even, yes. I mean they've just -- they've made their system. They had to do this for Apple, but they made a system that's extremely flexible, which means the next guy might want that same super set or some of those super set of features.

So it's a bigger moat than -- if it was easy, there'd be 20 people out there selling this stuff. And it's these fringe cases, these kind of weird things that don't happen, a combination of this, this and this, that throw all these interest calculations into the trash for a lot of people. So it's that kind of domain knowledge that, that R&D staff has that's created this excellent product.

Another thing to bear in mind on a product like this is you read a lot and hear a lot about things like stablecoin, okay? How are they going to deal with things like chargebacks, like fraud, like authentication? And those are complexities that aren't even involved in the mathematics of calculating an interest on a chargeback that might be 3 years old or a chargeback and then a restore. And I could give you thousands of different peculiarities, issues that happen within the processing business.

But as we think about a platform like this, also imagine what it might offer in terms of abilities to players that do have stablecoin products and want to have on-ramps and off-ramps, authentication, approvals, you could get to be -- you could see where there could be a lot of interesting future applications out there.

Got it. That's super helpful. And as a follow-up, I wanted to get your thoughts on travel trends within the EFT business as well as the impact of some of the interchange increases you've highlighted over the last year or so. I know you noted the elongation of the travel season, but just kind of curious what you're seeing on an absolute basis for travel trends within '25 relative to your expectations.

So just one little interesting note is the Americans traveling to Europe. We love them. They've all got the wrong currency on their card. That's up 10% over last year. So that's really exciting. As you probably read, not many Europeans are going to the U.S. They don't feel like they've been treated very well by this administration. So what that means is they're going to stay home or they're going to vacation more closer to home.

So all the numbers look good. We'll see what the final numbers are for the year, but they're certainly up from last year. And all that's great. So we've seen a strong -- like I said, this Q2 with EFT kind of compared to last year looks kind of flattish, but that's just because last year's number was extraordinary. And -- but we're looking at Q3 being back to strong numbers. So we don't have any concerns with respect to travel.

Got it. And that 10% is all the more interesting considering the weakening of the U.S. dollar? So...

But I think part of this is human nature. I mean all us baby boomers are all going, boy, I better get the year before I die and before another pandemic closes it down.

All right. I think we're right at the top of the hour, operator, so we'll end the questions now. I want to thank everybody for joining and spending the time with us. Look forward to talking to you in about 90 days.

Ladies and gentlemen, that concludes today's conference call. Thank you all for joining, and you may now disconnect.