Euronet Worldwide (NASDAQ:EEFT) said third-quarter results fell short of its expectations as U.S. immigration policy changes, broader economic uncertainty and foreign-currency weakness continued to pressure its cross-border payments business.
The company reported third-quarter revenue of $1.2 billion, operating income of $171.6 million and adjusted EBITDA of $226.1 million. Adjusted earnings per share were $3.55, down 2% from a year earlier.
Chairman and CEO Mike Brown said 2026 has been more difficult than the company expected, particularly because of sustained pressure on remittance activity tied to changes in U.S. immigration policy. He also cited macroeconomic uncertainty affecting Euronet’s three operating segments.
“While the current environment is challenging, it’s important to keep it in perspective,” Brown said, pointing to prior disruptions the company has navigated, including the global financial crisis, India’s demonetization and the COVID-19 pandemic.
Outlook Revised as Cross-Border Pressure Persists
CFO Rick Weller said Euronet revised the outlook it first provided at its May Investor Day. The company now expects about $4.375 billion in 2026 revenue, adjusted EBITDA of $725 million and adjusted EPS growth of approximately 10%.
Management said the revised assumptions reflect more persistent remittance pressure than initially anticipated, compounded by global economic uncertainty and the weakening of most currencies in which Euronet operates relative to the U.S. dollar.
Weller said the company expects modest improvement in the fourth quarter compared with recent trends, rather than another deterioration. Third-quarter constant-currency revenue declined 4% sequentially, an improvement from the 5% decline reported in the second quarter. Management said conditions in many international markets have stabilized, while U.S. outbound remittance activity remains under pressure.
“We think it’s kind of a delicate market,” Brown said during the question-and-answer session. “But we do expect to see some subtle improvement as we finish the year.”
Brown said the most significant cross-border challenge remains U.S. outbound remittances. Mexico had been particularly pressured earlier in the year but appeared to be improving, he said. The company also reported softness in other markets, especially Europe, tied to weaker economic conditions.
Segment Results Show Diverging Trends
- Payments infrastructure: On a constant-currency basis, revenue rose 9%, driven primarily by merchant acquiring growth and the contribution from CoreCard. Adjusted operating income was flat, while adjusted EBITDA increased 4%. The segment also faced pressure from softer discretionary travel spending, which affected international ATM cash withdrawals.
- epay: Revenue and operating income each rose 5%, while adjusted EBITDA increased 6%. Euronet attributed the growth to demand for higher-value digital content, merchant acquiring growth and business-to-business promotional campaigns.
- Cross-border payments: Revenue declined 4%, operating income fell 35% and adjusted EBITDA declined 32%. The company cited immigration-related pressures in key remittance corridors and global economic uncertainty, partly offset by a 34% increase in digital transactions and continued growth in Dandelion.
Weller said cross-border profitability declined more sharply than revenue because of the flow-through from lower revenue and approximately $6 million of additional advertising spending intended to accelerate digital transaction growth.
On pricing, Weller said the company saw year-over-year price pressure of roughly 2% to 3%, though the effect on gross profit was lower, at about 1% to 1.5%. He characterized those trends as generally consistent with prior periods and said Euronet had not seen an extraordinary change in the return on investment from its digital operations.
Digital Businesses Gain a Larger Role
Despite the cross-border headwinds, Euronet said its “digital accelerators” produced 30% revenue growth in the third quarter and approximately 33% growth through the first nine months of the year. These businesses include Ria Digital, Dandelion, merchant services, payment processing and CoreCard.
Digital accelerators accounted for about 26% of payment-channel revenue, up from about 21% in 2025, according to Brown. He said the company expects the growth rate to moderate over the next several quarters as it laps the fourth-quarter 2025 CoreCard acquisition.
Ria Digital revenue rose 30% and transactions increased 34% in the quarter. Euronet said about 60% of its total cross-border payment volume and 50% of transactions now land in a digital account, including bank and wallet accounts. Weller said approximately three-fourths of digital customers are new to the Euronet franchise, while the remainder reflects migration from existing retail channels.
The company also highlighted new cross-border relationships, including Dandelion partnerships with remittance provider Taptap Send and Safaricom’s M-PESA mobile wallet in Africa. In business payments, Euronet acquired Sage Integration intellectual property for its XE platform and launched a relationship with BSN Bank in Malaysia.
New Products and Partnerships
Euronet recently announced its intention to form a strategic collaboration with Diebold Nixdorf, subject to definitive agreements. Brown said the potential relationship could combine Euronet’s ATM operating and transaction-processing capabilities with Diebold Nixdorf’s cash-recycling technology, banking software and service organization.
Brown said the collaboration could provide Euronet with greater access to the U.S. bank ATM-outsourcing market, where he said the company has had limited participation. Management said the combined offering could help banks lower costs, improve operating efficiency and add revenue-generating capabilities to ATM networks.
The company also introduced OLON, a merchant platform that combines payments, business software and value-added services. The rollout has begun, with Greece among the first markets. Euronet said OLON supports in-store terminals, mobile and online payments, as well as cards, digital wallets and local payment methods.
At Money20/20, Euronet also introduced a white-label stablecoin-funded card program with Fireblocks. The product uses Euronet’s Ren and CoreCard platforms and is intended to allow banks, fintechs and other financial institutions to offer stablecoin-linked card programs accepted wherever Visa and Mastercard are accepted.
Management said stablecoin adoption remains at an early stage and that current transaction volume is limited, but banks are seeking products to address customer interest in the technology.
Capital Allocation and Additional Updates
Euronet generated $139 million in cash from operations during the quarter and ended the period with approximately $1 billion in unrestricted cash, as well as $913 million deployed in its ATM network. Total debt stood at $2.2 billion.
The company repurchased about 690,000 shares for $50 million in the quarter. Weller said the company plans to manage leverage to maintain its investment-grade rating while continuing share repurchases.
In epay, Brown said Steam will discontinue physical gift-card sales at the end of October, creating an expected fourth-quarter headwind. He said Euronet expects increased gaming-content sales related to new titles, including the anticipated mid-November release of Grand Theft Auto VI, to gradually help offset the loss of Steam sales.
Management said the company remains focused on digital payment channels, merchant services, payment processing and the expansion of its global network as it works through near-term cross-border and travel-related pressures.
About Euronet Worldwide (NASDAQ:EEFT)
Euronet Worldwide, Inc is a global provider of electronic payment and transaction-processing services. Founded in 1994 and headquartered in Leawood, Kansas, the company serves financial institutions, retailers, mobile network operators, businesses and consumers through operations in markets around the world.
Euronet operates through three principal business segments: electronic financial transactions, epay and money transfer. Its electronic financial transaction business provides automated teller machine (ATM) services, point-of-sale services, card outsourcing, electronic payment processing and related financial technology solutions.
