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Euronet Worldwide (EEFT)
NASDAQ:EEFT
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Euronet Worldwide
(NASDAQ:EEFT)
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Rating:68Neutral
Price Target:
$77.00
▲(3.59% Upside)
Action:ReiteratedDate:02/27/26
The score is led by solid underlying financial performance (growth, profitability recovery, and positive free cash flow) and a supportive low P/E valuation. These are partially offset by weak technical trend signals and leverage/cash-flow variability, while earnings-call guidance is constructive but tempered by macro-driven weakness in Money Transfer and epay.
Positive Factors
Network scale & diversification
A massive global payments footprint creates a durable competitive moat: large cross-border and domestic distribution, multi-product distribution lanes, and partner leverage. Scale lowers unit costs, enables cross-sell across EFT/epay/Ria, and supports resilient revenue over a multi-quarter horizon.
Multi‑year revenue growth and profitability recovery
Sustained revenue expansion and a shift from loss to multi-year net income show structural business improvement. Consistent EBIT margins (~11%–13%) and repeated profitability recovery indicate underlying unit economics have stabilized, supporting durable cash generation and reinvestment capacity.
Healthy free cash flow & shareholder returns
Material positive free cash flow coupled with active buybacks demonstrates ability to convert profits to cash and allocate capital to shareholders. Persistent FCF coverage of earnings and a discipline on returns indicate long‑term financial flexibility to fund growth, M&A, and returns when core cash trends persist.
Negative Factors
Elevated leverage
Meaningful and rising debt levels reduce financial flexibility and increase interest exposure if cash flows soften. At ~1.7x equity, incremental shocks to remittance volumes or retail payments could strain covenant headroom or limit opportunistic investment, making capital structure a medium‑term risk.
Cash‑flow volatility
While FCF is positive, the uneven trajectory—periodic declines and rebounds—reduces predictability for debt paydown, buybacks, and investment pacing. Volatility increases refinancing and planning risk and makes it harder to rely on steady cash generation through economic or corridor shocks over the next several quarters.
Structural exposure to remittances & policy risk
A sizable remittance exposure ties growth to macro and immigration‑policy dynamics affecting transaction frequency among lower‑income remitters. These structural demand drivers can keep volumes uneven and may suppress revenue and margin recovery for Money Transfer and related epay flows across multiple quarters.
Euronet Worldwide (EEFT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.84B
Dividend YieldN/A
Average Volume (3M)719.76K
Price to Earnings (P/E)11.3
Beta (1Y)0.93
Revenue Growth7.25%
EPS Growth-1.12%
CountryUS
Employees10,600
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)2.39
Shares Outstanding39,330,670
10 Day Avg. Volume751,830
30 Day Avg. Volume719,762
Financial Highlights & Ratios
PEG Ratio-12.80
Price to Book (P/B)2.67
Price to Sales (P/S)0.82
P/FCF Ratio8.48
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit1.57
Enterprise Value/Ebitda5.39
Forecast
1Y Price Target
$92.29Price Target Upside24.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)10.86
Revenue Forecast (FY)$4.51B
Euronet Worldwide Business Overview & Revenue Model
Company DescriptionEuronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, agents, retailers, merchants, content providers, and individual consumers worldwide. The company's Electronic Fund Transfer Processing segment provides electronic payment solutions, including automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit card outsourcing, card issuing, and merchant acquiring services. It also offers ATM and POS currency conversion, ATM surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling, and tax-refund services; and integrated electronic financial transaction software solutions, as well as delivers non-cash products. This segment operates a network of 42,713 ATMs and approximately 438,000 POS terminals. Its epay segment distributes and processed prepaid mobile airtime and other electronic payment products; and provides payment processing services for various prepaid products, cards, and services, as well as vouchers and physical gift fulfillment, and gift card distribution and processing services. This segment operates a network of approximately 775,000 POS terminals. The company's Money Transfer segment offers consumer-to-consumer and account-to-account money transfer, customers bill payment, check cashing, foreign currency exchange, mobile top-up, and cash management and foreign currency risk management services, as well as payment alternatives, such as money orders and prepaid debit cards. This segment operates a network of approximately 510,000 money transfer locations. The company was formerly known as Euronet Services, Inc. and changed its name to Euronet Worldwide, Inc. in August 2001. Euronet Worldwide, Inc. was founded in 1994 and is headquartered in Leawood, Kansas.
How the Company Makes MoneyEuronet Worldwide generates revenue through multiple streams primarily derived from transaction fees, service fees, and foreign exchange spreads. The EFT Processing segment earns income from processing ATM and POS transactions, charging fees for each transaction processed. The International Money Transfer segment makes money by charging customers fees for sending and receiving money internationally, along with earning fees from currency conversion. Additionally, Euronet’s Mobile Money segment also contributes to revenue through transaction fees and partnerships with mobile operators. Significant partnerships with banks, financial institutions, and retail networks enhance its service offerings and expand its reach, thereby driving revenue growth.
Euronet Worldwide Key Performance Indicators (KPIs)
Euronet Worldwide Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call reflects a company with strong underlying earnings durability and strategic momentum—notably double-digit full-year adjusted EPS growth, EFT and merchant-acquiring strength, rapid digital growth in Ria, and accretive acquisitions—while acknowledging meaningful near-term headwinds concentrated in Money Transfer and epay driven by macroeconomic and immigration-related pressures. Management has initiated optimization actions (one-time $20M charge; ~$40M run-rate benefit expected) and reiterates 10%–15% adjusted EPS growth guidance for 2026. Overall, the positive operational and strategic developments and multi-year secular initiatives slightly outweigh the near-term softness and one-time costs, but the outlook retains some caution due to external factors affecting remittance frequency.Q4-2025 Updates
Positive Updates
Sustained Double-Digit EPS Growth
Delivered adjusted EPS of $9.61 for the full year (FY2025) and $2.39 in the fourth quarter, representing the fifth consecutive year of double-digit adjusted EPS growth; company targets adjusted EPS growth of 10% to 15% for 2026.
Solid Full-Year Financials
Full-year revenue of $4.2 billion, adjusted operating income of $550 million, and adjusted EBITDA of $743 million; consolidated operating margins expanded ~30 basis points year over year.
EFT Segment Strength and Margin Expansion
EFT Q4 revenue grew 8% year over year, adjusted operating income increased 12%, and adjusted EBITDA grew 13%; EFT operating margin sits just north of ~20% with infrastructure/issuing products targeted to lift margins further.
Merchant Acquiring Momentum
Merchant acquiring businesses delivered robust growth (Greek Money Merchant Services adjusted EBITDA up 32% YoY); combined merchant acquiring EBITDA across epay and EFT is roughly $90M and Credia tuck-in will add ~20,000 merchants (~10% increase to acquiring portfolio).
Digital Growth in Money Transfer (Ria) and Network Scale
Ria digital has historically delivered ~30% growth; in Q4 the global digital channel delivered 31% transaction growth and 33% revenue growth (including 33% new customer acquisitions in December); company network now reaches ~4.1 billion bank accounts, ~3.7 billion wallets, and ~4.0 billion cards across 200 countries.
epay Digital & Merchant Processing Gains
epay expanded digital distribution (Revolut now in 20 countries), broadened merchant relationships (Lidl in Italy & France), and grew merchant payments processing revenue +21% for the full year; gaming-branded payments remain a large profitable component (37% of branded payments margin).
Strategic Acquisitions & Early Wins (CoreCard, Kyodai, Credia)
Completed CoreCard acquisition (partial-quarter contribution of ~$10–$12M in Q4), acquired Kyodai in Money Transfer, and announced Credia merchant acquiring tuck-in—management cites early customer momentum and pipeline expansion for CoreCard and expects CoreCard to drive international issuance/processing growth.
Capital Allocation & Shareholder Returns
Returned ~$388 million to shareholders via share repurchases in 2025 (excluding 2.6M shares repurchased for CoreCard consideration); ended quarter with $1.0 billion unrestricted cash and a focus on maintaining investment-grade leverage.
Negative Updates
Challenging Macro & Policy Environment
Leadership described Q4 as one of the more challenging operating environments due to immigration policy uncertainty and economic stress among lower-income consumers, which pressured growth particularly in Money Transfer and epay.
Money Transfer Near-Term Weakness
Money Transfer Q4 revenue declined ~1% YoY, adjusted operating income fell ~6%, and adjusted EBITDA declined ~5%; remittances into Mexico were down ~2% in Q4 and ~5% for the full year, with corridor declines as sharp as ~16% in mid-2025.
epay Revenue and Margin Pressures in Q4
epay Q4 revenue declined ~2% YoY, adjusted operating income decreased ~7%, and adjusted EBITDA declined ~8%, attributed to product mix shifts, macro pressure, and investments in proprietary offerings.
Consolidated Operating Income Softness
On a constant-currency basis in Q4 consolidated revenue rose only ~1% YoY while adjusted operating income declined ~6% and adjusted EBITDA was flat, reflecting offsetting segment performance.
Restructuring Charge and Optimization Costs
Recorded a $20 million charge related to the Money Transfer optimization program; company expects the initiative to generate approximately $40 million in annual run-rate benefit, with an expected 50–75 basis point operating margin improvement for Money Transfer in 2026.
Cash Reduction from Buybacks and Acquisitions
Unrestricted cash declined to ~$1.0 billion during the period due in part to $388 million in share repurchases and acquisition-related outflows; total debt stands at ~$2.0 billion.
Pressure Concentrated Among Lower-Income Remitters
Management noted that inflation and household financial strain reduced transaction frequency among lower-income remitters (majority of remittance customers), translating to fewer transactions even as average ticket size rose ~7–8% YoY in Q4.
Near-Term Visibility & Uncertain Rebound
Management stated January trends showed some improvement but cautioned that short-term data are not definitive given ongoing policy and macro uncertainty, leaving near-term recovery timing unclear.
Company Guidance
Management guided adjusted EPS growth of 10%–15% for 2026, supported by a 2025 baseline of adjusted EPS $9.61 (Q4 adjusted EPS $2.39) on full-year revenue of $4.2 billion, adjusted operating income $550 million and adjusted EBITDA $743 million; consolidated operating margins expanded ~30 basis points year‑over‑year and are expected to continue improving. They expect free cash flow to rise in line with the EPS outlook, finished the quarter with $1.0 billion of unrestricted cash and $2.0 billion of debt, returned ~$388 million to shareholders via buybacks in 2025, and flagged a $20 million charge tied to a Money Transfer optimization that should drive roughly $40 million of annual run‑rate benefit and expand Money Transfer operating margins by ~50–75 basis points in 2026. Segment dynamics cited as tailwinds include EFT Q4 revenue +8% / adjusted operating income +12% / adjusted EBITDA +13% (merchant acquiring adjusted EBITDA +32%), Money Transfer Q4 revenue -1% / adj. operating income -6% / adj. EBITDA -5% but Ria digital with 31% transaction growth, 33% revenue growth and 33% new customers in December, and epay merchant payment processing revenue +21% for the year (epay Q4 revenue -2% / adj. operating income -7% / adj. EBITDA -8%; gaming branded payments = 37% of branded payments margin); management also cited network scale (4.1B bank accounts, 3.7B wallets, 4.0B cards across 200 countries) and early CoreCard contribution of ~$10–12 million in the partial quarter.Euronet Worldwide Financial Statement Overview
Summary
Strong multi-year revenue growth and a clear profitability recovery (sustained net income and solid EBIT margins) support the score, with consistently positive free cash flow. Offsetting factors are elevated and rising leverage (debt ~1.7x equity) and some cash-flow volatility that reduces financial flexibility.Income Statement
Revenue has expanded steadily from $2.48B (2020) to $4.24B (2025), with consistent year-over-year growth since 2021 and a sharp acceleration in 2025. Profitability has also improved materially: the company moved from a small loss in 2020 to ~$310M of net income in 2024–2025, while operating profitability has remained solid (EBIT margin ~11%–13% in 2022–2025). A key watch-out is margin consistency—gross margin shows an unusual jump in 2025 versus prior years, so investors will want to see whether this level is sustainable.78
Positive
Balance Sheet
The balance sheet supports growth but carries meaningful leverage. Total debt rose to ~$2.28B in 2025 from ~$1.77B in 2022, and leverage remains elevated with debt running at ~1.7x equity in 2024–2025. Offsetting this, equity has been relatively stable (~$1.22B–$1.32B recently) and returns on equity are strong (~22%–25% in 2022–2025), indicating effective profit generation on the capital base. The primary risk is that higher debt reduces flexibility if operating conditions soften.60
Neutral
Cash Flow
Cash generation is generally healthy, with operating cash flow consistently positive and free cash flow positive each year; 2025 free cash flow improved to ~$434M (up strongly versus 2024). However, cash flow has been volatile: operating cash flow declined in 2025 versus 2024, and free cash flow fell in 2023 before rebounding. Free cash flow has covered a substantial portion of earnings (roughly ~0.78–0.86x in 2021–2025), which is supportive, but the uneven cash-flow trajectory is a continued monitoring point.66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.24B | 3.99B | 3.69B | 3.36B | 3.00B |
| Gross Profit | 3.53B | 950.30M | 862.30M | 806.40M | 1.10B |
| EBITDA | 667.10M | 635.00M | 565.50M | 521.30M | 358.40M |
| Net Income | 309.50M | 306.00M | 279.70M | 231.00M | 70.70M |
Balance Sheet | |||||
| Total Assets | 6.49B | 5.83B | 5.89B | 5.40B | 4.74B |
| Cash, Cash Equivalents and Short-Term Investments | 1.71B | 1.92B | 1.78B | 1.65B | 1.80B |
| Total Debt | 2.18B | 2.08B | 2.01B | 1.77B | 1.59B |
| Total Liabilities | 5.17B | 4.61B | 4.64B | 4.16B | 3.49B |
| Stockholders Equity | 1.31B | 1.23B | 1.25B | 1.24B | 1.26B |
Cash Flow | |||||
| Free Cash Flow | 410.80M | 615.60M | 548.70M | 644.03M | 314.37M |
| Operating Cash Flow | 536.30M | 732.80M | 643.10M | 748.29M | 406.58M |
| Investing Cash Flow | -137.60M | -223.30M | -157.60M | -453.78M | -98.11M |
| Financing Cash Flow | -766.00M | -135.70M | -143.20M | -1.15M | -212.24M |
Euronet Worldwide Technical Analysis
Neutral
74.33
Price Trends
73.24
Negative
75.20
Negative
87.05
Negative
Market Momentum
-0.56
Negative
51.36
Neutral
64.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EEFT, the sentiment is Neutral. The current price of 74.33 is above the 20-day moving average (MA) of 70.94, above the 50-day MA of 73.24, and below the 200-day MA of 87.05, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 51.36 is Neutral, neither overbought nor oversold. The STOCH value of 64.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EEFT.
Euronet Worldwide Risk Analysis
Euronet Worldwide disclosed 28 risk factors in its most recent earnings report. Euronet Worldwide reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Euronet Worldwide Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.58B | 27.73 | 10.24% | ― | 10.58% | -45.52% | |
70 Outperform | $2.32B | 36.17 | 10.21% | ― | 19.28% | 6.16% | |
68 Neutral | $2.84B | 11.26 | 24.41% | ― | 7.25% | -1.12% | |
65 Neutral | $3.70B | 41.81 | 8.86% | ― | 31.27% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $43.38M | -6,799.40 | -5.30% | ― | 20.68% | 84.51% | |
48 Neutral | $27.61M | -3.19 | ― | ― | 16.56% | 28.25% |
* Technology Sector Average
EEFT
Euronet Worldwide
74.33
-22.66
-23.36%
SPSC
SPS Commerce
62.17
-71.66
-53.55%
JG
Aurora Mobile
7.09
-3.16
-30.81%
KPLT
Katapult Holdings
5.85
-5.15
-46.82%
PAYO
Payoneer
4.78
-3.56
-42.69%
RELY
Remitly Global
17.37
-4.85
-21.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.