Euronet Revenue Rises 1% to $1,161.1 Million as Profit Falls

Key Facts

Euronet reported results on October 27 for the third quarter ended September 30, 2026, with revenue of $1,161.1 million, up 1% from the year-earlier period, or 3% on a constant-currency basis. Revenue growth did not prevent profitability from declining: adjusted earnings per share fell 2% to $3.55 from $3.62 a year earlier. Net income attributable to the company was $113.6 million, compared with $122.0 million in the third quarter of 2025. Diluted earnings per share under generally accepted accounting principles also fell to $2.53 from $2.75. The chief executive said the results came in "below our expectations and historical performance," despite continued growth in the digital initiatives the company launched in May.

The decline extended to operating measures: operating income fell 12% to $171.6 million from $195.0 million a year earlier. Adjusted operating income fell 13% to $169.9 million from $195.0 million. Adjusted earnings before interest, taxes, depreciation and amortization fell 8% to $226.1 million from $244.6 million. Cross-border payments were the main source of pressure, with revenue down 5% to $431.0 million from $452.4 million. In the same segment, operating income dropped 37% to $37.3 million, and adjusted earnings before interest, taxes, depreciation and amortization fell 34% to $43.6 million, compared with $59.3 million and $65.9 million, respectively, a year earlier.

Cross-border payment transactions fell 2% to 45.3 million from 46.0 million in the year-earlier quarter. Digital transactions, by contrast, rose 34% to 8.1 million from 6.1 million, partially offsetting the effect of weaker overall activity. The company attributed revenue pressure to the continuing impact of U.S. immigration policy and global economic uncertainty, while strength in digital businesses partly supported results. The chief executive said the impact of immigration policy and global economic pressures on the segment "lasted longer than we expected." The company said lower revenue flowed through to earnings, alongside an additional investment of about $6 million in digital initiatives during the quarter.

Sequentially, the decline in cross-border payments revenue on a constant-currency basis eased to 4% in the third quarter from 5% in the second quarter compared with the year-earlier period. The company said pressures remained concentrated mainly in the U.S. market and that trends had been stable to slightly improving in recent months. But it described the market as still fragile, leaving the segment exposed to the factors that have weighed on it. In digital growth, revenue from the digital accelerators the company presented at its Investor Day rose 33% in the nine months ended September 30, 2026. Those activities accounted for 26% of the company's revenue year to date, according to its statement.

The electronic payments infrastructure segment performed better, with revenue up 7% to $437.9 million from $409.4 million. Its adjusted earnings before interest, taxes, depreciation and amortization rose 2% to $157.9 million from $154.7 million in the third quarter of last year. The company attributed constant-currency revenue growth to expanded commercial payment acceptance, Ria sales and the acquisition of CoreCard. In the ePay segment, revenue rose 3% to $294.7 million from $286.5 million. Segment operating income increased 3% to $31.8 million from $31.0 million, while adjusted earnings before interest, taxes, depreciation and amortization rose 3% to $33.4 million from $32.5 million, supported by demand for higher-value digital content, commercial payment acceptance and promotional campaigns.

Euronet cut its fiscal 2026 outlook, projecting revenue of about $4.375 billion and adjusted earnings before interest, taxes, depreciation and amortization of about $725 million. The company also expects adjusted earnings per share growth of about 10% year over year. It said the revised outlook reflects immigration and global economic pressures, as well as foreign-exchange rate movements. On liquidity, total cash, including ATM cash and unrestricted and restricted cash, was $1,887.9 million on September 30, compared with $2,220.7 million on June 30. Total debt fell to $2,177.3 million from $2,654.0 million, with about $1.1 billion available under revolving credit facilities.

The company said debt fell by $476.7 million during the quarter as seasonal ATM cash returned after the peak European travel season, alongside cash generated from operations. Share repurchases offset part of the decline: the company repurchased $50 million of common stock, representing about 690,000 shares. The number of installed ATMs was 59,688 on September 30, up 4% from 57,534 a year earlier. The number of active ATMs also rose 4% to 58,420 from 56,431. The company's shares closed at $63.95 on October 26, after closing at $66.15 on October 20, $65.92 on October 21, $67.06 on October 22 and $65.59 on October 23.

Euronet held a call to discuss its third-quarter results on October 27, 2026, at 9:00 a.m. Eastern time. The investor relations website made the third-quarter presentation materials available. The company's revised 2026 outlook incorporates the continuing effects of immigration and global economic pressures and foreign-exchange rate movements. The quarterly results also showed diverging performance across its segments, with cross-border payments declining while payments infrastructure and ePay grew.