A month has gone by since the last earnings report for Euronet Worldwide (EEFT). Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Euronet Worldwide due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Euronet Worldwide, Inc. before we dive into how investors and analysts have reacted as of late.
Euronet Q1 Earnings Beat Estimates on EFT Processing Unit's Strength
Euronet Worldwide reported first-quarter 2026 adjusted earnings per share of $1.58, which beat the Zacks Consensus Estimate by 11.3%. The bottom line rose 40% year over year.
Total revenues improved 11% year over year and 4% on a constant-currency basis to $1 billion. The top line beat the consensus mark by 5.1%.
The strong quarterly results were aided by strategic buyouts, digital initiatives and Dandelion products. However, an increased expense level partially offset the positives.
EEFT’s Q1 Update
EEFT’s net income totaled $37.5 million, which fell 2.3% year over year. Operating income declined 4% year over year and 10% on a constant-currency basis to $72 million.
Total operating expenses of $939.8 million increased 11.8% year over year due to higher direct operating costs, salaries and benefits, and selling, general and administrative expenses.
Adjusted EBITDA improved 7% year over year and 1% on a constant-currency basis at $126.7 million.
EEFT’s Segmental Performances
The EFT Processing segment’s revenues rose 27% year over year and 19% on a constant-currency basis to $295.4 million in the first quarter. The metric beat the Zacks Consensus Estimate of $257.2 million.
Adjusted EBITDA was $55.2 million, which advanced 16% year over year and 12% on a constant-currency basis.
Operating income remained stable year over year but grew 1% on a constant-currency basis to $23.4 million. Installed ATMs rose 2% year over year to 56,347, while active ATMs increased 1% to 52,579.
The segment’s quarterly results benefited from continued growth in acquiring, infrastructure sales tied to the REN platform and contributions from the CoreCard acquisition completed in the fourth quarter of 2025.
The epay segment recorded revenues of $293.5 million, which rose 10% year over year and 2% on a constant-currency basis. The metric beat the consensus mark of $274 million.
Adjusted EBITDA rose 19% from the year-ago figure and 12% on a constant-currency basis to $33.9 million.
Operating income was $32.4 million, which rose 21% year over year and 13% on a constant-currency basis. Transactions in the unit totaled 1.1 billion, which decreased 5% year over year.
The segment’s quarterly results benefited from the absence of a $4.5 million one-time operating tax impact recognized in the prior-year period.
The Money Transfer segment posted revenues of $425.2 million, which rose 2% year over year but fell 4% on a constant-currency basis. The metric missed the Zacks Consensus Estimate of $433 million.
Adjusted EBITDA decreased 6% year over year and 12% on a constant-currency basis to $48.3 million.
Operating income of $41.9 million declined 7% year over year and 14% on a constant-currency basis. Total digital transactions increased to 7.1 million from 5.3 million in the year-ago period. Total transactions of 43.9 million fell from 44.6 million a year ago due to immigration reform impacting transfers from the United States to Mexico, along with reduced volume in the Middle East.
Corporate and Other expenses rose to $25.7 million year over year from $20 million.
EEFT’s Financial Update (As of March 31, 2026)
Euronet exited the first quarter with cash and cash equivalents of $1.2 billion, which increased 18.2% as of Dec. 31, 2025.
Total assets of $6.3 billion decreased from $6.5 billion at 2025-end.
Debt obligations, net of the current portion, amounted to $1.6 billion and rose 52.8% from Dec. 31, 2025. Short-term debt was $971.1 million.
Equity decreased to $1.2 billion from the 2025-end figure of $1.3 billion.
There was roughly $1.2 billion left under EEFT’s revolving credit facilities at the fourth-quarter end.
EEFT’s Capital Deployment
EEFT bought back shares worth $100 million in the first quarter.
EEFT’s 2026 Bottom-Line View
Management still estimates achieving adjusted EPS growth in the 10-15% range in 2026. It expects revenues to be around $4.5 billion and EBITDA of about $800 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, Euronet Worldwide has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Euronet Worldwide has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Euronet Worldwide, Inc. (EEFT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).