Euronet Worldwide ((EEFT)) has held its Q1 earnings call. Read on for the main highlights of the call.
Euronet Worldwide’s recent Q1 2025 earnings call conveyed a positive sentiment, underscored by record-breaking revenue and substantial digital transaction growth. Despite a slight dip in adjusted EPS due to one-time charges, the company remains optimistic about the year ahead, buoyed by strong segment performances and ongoing market expansion.
Record-Breaking Revenue and Growth
Euronet Worldwide reported a remarkable first quarter, achieving revenue of $916 million, adjusted operating income of $75 million, and adjusted EBITDA of $119 million. These figures represent record highs for the company, with operating income increasing by 18% year-over-year, showcasing the company’s robust financial health and growth trajectory.
Strong Performance in Money Transfer Segment
The Money Transfer segment emerged as a standout performer, with digital transactions soaring by 31% and cross-border transactions experiencing double-digit growth. This segment’s adjusted operating income rose by 23% year-over-year, highlighting its pivotal role in Euronet’s overall success.
EFT Segment Expansion
The EFT segment also demonstrated significant growth, with a 10% increase in revenue and a 15% rise in adjusted operating income. This expansion was driven by a surge in international cash withdrawal transactions and strategic market expansion efforts, contributing to the company’s overall financial performance.
Positive Outlook for 2025
Euronet reaffirmed its positive outlook for 2025, projecting an adjusted EPS growth of 12% to 16% for the year. This forecast reflects the company’s confidence in sustaining its strong performance across various segments and markets.
Adjusted EPS Decline
The company’s adjusted EPS for Q1 2025 was $1.13, a decrease from $1.28 the previous year. This decline was attributed to a one-time charge of $0.20 per share for the repurchase of convertible bonds. However, on a pro forma basis, adjusted EPS grew by 18% year-over-year, indicating underlying strength.
Impact of Regulatory Environment
Euronet addressed potential challenges posed by regulatory changes, such as FinCEN’s geographic targeting orders in the U.S., which could affect the money transfer segment. Despite these concerns, the company maintains a strong compliance record, which should help mitigate potential impacts.
Forward-Looking Guidance
Euronet Worldwide’s guidance for the year remains optimistic, with expectations of 12% to 16% earnings growth. The company’s diverse business model and global presence are key drivers of this forecast, supported by strong performances in the Money Transfer and EFT segments. Euronet’s consolidated operating margins expanded by 80 basis points, reflecting effective cost management and volume growth.
In summary, Euronet Worldwide’s Q1 2025 earnings call painted a picture of a company on a strong growth path, with record revenue and significant digital transaction increases. Despite a temporary dip in adjusted EPS due to one-time charges, the company remains confident in its ability to achieve substantial earnings growth for the year, supported by robust segment performances and strategic market expansions.