Q2 2026 Euronet Worldwide Inc Earnings Call

July 30, 2026

Operator: Good day, and thank you for standing by. Welcome to the Euronet Worldwide's Q2 2026 Earnings Call Conference. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce your host, Ms. Stephanie Taylor, Head of Investor Relations for Euronet Worldwide. Thank you. Ms. Taylor, you may now begin.

Speaker #1: After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded.

Speaker #1: It is now my pleasure to introduce your host, Ms. Stephanie Taylor, Head of Investor Relations for Euronet Worldwide. Thank you. Ms. Taylor, please begin.

Speaker #2: Thank you, Tyler. Good morning, and welcome to EURONET's second quarter 2026 earnings conference call. On the call, we have Mike Brown, our Chairman and CEO, and Rick Weller, our CFO.

Stephanie Taylor: Thank you, Tyler. Good morning, and welcome to Euronet's Q2 2026 earnings conference call. On the call, we have Mike Brown, our Chairman and CEO, and Rick Weller, our CFO. Before we begin, I need to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we will be making today. Statements made on this call that concern Euronet or its management's intentions, expectations, or predictions of further performance are forward-looking statements. Euronet's actual results may vary materially from those anticipated in these forward-looking statements as a result of a number of factors that are listed on the second slide of our presentation. In addition, the PowerPoint presentation includes a reconciliation of the non-GAAP financial measures we will be using during the call to their most comparable GAAP measures. Now I'll turn the call over to our Chairman and CEO, Mike Brown.

Speaker #2: Before we begin, I need to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we will be making today.

Speaker #2: Statements made on this call that concern EURONET or its management's intentions, expectations, or predictions of further performance are forward-looking statements. EURONET's actual results may vary materially from those anticipated in these forward-looking statements, as a result of a number of factors that are listed on the second slide of our presentation.

Speaker #2: In addition, the PowerPoint presentation includes a reconciliation of the non-GAAP financial measures we will be using during the call to their most comparable GAAP measures.

Speaker #2: Now I'll turn the call over to our Chairman and CEO, Mike Brown.

Speaker #3: Thank you, Stephanie. Good morning, everybody, and thank you for joining us. I'll begin my comments on slide number 4. During the second quarter, our results demonstrated the resilience of EURONET's diversified business model and our ability to execute against our long-term growth strategy.

Michael J. Brown: Thank you, Stephanie. Good morning, everybody, and thank you for joining us. I'll begin my comments on slide number four. During the Q2, our results demonstrated the resilience of Euronet's diversified business model and our ability to execute against our long-term growth strategy. Q2 adjusted EPS increased 10%, marking our fifth consecutive quarter of double-digit earnings growth. Our digital accelerators once again represented our primary growth driver during the quarter, with revenue growing 31% year over year for the Q2 and 35% year to date. While we experienced some softness in certain parts of the business and made some additional investments into digital, the continued momentum in our accelerators highlights the benefits of our diversified model and digital initiatives.

Mike Brown: Thank you, Stephanie. Good morning, everybody, and thank you for joining us. I'll begin my comments on slide number four. During the Q2, our results demonstrated the resilience of Euronet's diversified business model and our ability to execute against our long-term growth strategy. Q2 adjusted EPS increased 10%, marking our fifth consecutive quarter of double-digit earnings growth. Our digital accelerators once again represented our primary growth driver during the quarter, with revenue growing 31% year over year for the Q2 and 35% year to date. While we experienced some softness in certain parts of the business and made some additional investments into digital, the continued momentum in our accelerators highlights the benefits of our diversified model and digital initiatives.

Speaker #3: Second quarter adjusted EPS increased 10%, marking our fifth consecutive quarter of double-digit earnings growth. Our digital accelerators once again represented our primary growth driver during the quarter.

Speaker #3: With revenue growing 31% year over year for the second quarter, and 35% year to date, while we experienced some softness in certain parts of the business and made some additional investments into digital, they continued momentum in our accelerators, highlights the benefits of our diversified model, and digital initiatives. We also continued to see a very positive response to the core card platform, highlighted by the signing of a credit card processing agreement with Unibanka. One of Peru's leading bank processors. Finally, we continued to return capital to shareholders, repurchasing about $50 million worth of EURONET shares during the quarter. Overall, we are pleased with our ability to navigate an evolving macro environment and remain focused on executing our strategy, managing capital prudently, and delivering long-term value for the shareholders.

Michael J. Brown: We also continued to see a very positive response to the CoreCard platform, highlighted by the signing of a credit card processing agreement with Unibanca, one of Peru's leading bank processors. Finally, we continued to return capital to shareholders, repurchasing about $50 million worth of Euronet shares during the quarter. Overall, we are pleased with our ability to navigate an evolving macro environment and remain focused on executing our strategy, managing capital prudently, and delivering long-term value for the shareholders. Now we'll move on to slide number five. On slide five, you'll find an update to the digital accelerator framework we introduced at our Investor Day in May. This framework helps illustrate the drivers behind Euronet's long-term growth strategy. Digital accelerators represented 26% of total company revenue year to date, reflecting the continued shift in our business towards higher growth digitally enabled payment channels.

Mike Brown: We also continued to see a very positive response to the CoreCard platform, highlighted by the signing of a credit card processing agreement with Unibanca, one of Peru's leading bank processors. Finally, we continued to return capital to shareholders, repurchasing about $50 million worth of Euronet shares during the quarter. Overall, we are pleased with our ability to navigate an evolving macro environment and remain focused on executing our strategy, managing capital prudently, and delivering long-term value for the shareholders. Now we'll move on to slide number five. On slide five, you'll find an update to the digital accelerator framework we introduced at our Investor Day in May. This framework helps illustrate the drivers behind Euronet's long-term growth strategy. Digital accelerators represented 26% of total company revenue year to date, reflecting the continued shift in our business towards higher growth digitally enabled payment channels.

Speaker #3: On slide This framework Now we'll move on to slide number helps illustrate the drivers behind EURONET's long-term growth strategy. Digital accelerators represented 26% of total company revenue year to date, reflecting the continued shift in our business towards higher growth, digitally, enabled payment channels.

Speaker #3: As I mentioned, revenue from these products in this quarter grew 31% in the quarter and 35% year to date, well above the 23% growth rate outlined at investor day.

Michael J. Brown: As I mentioned, revenue from these products in this quarter grew 31% in the quarter and 35% year to date, well above the 23% growth rate outlined at Investor Day. This performance was driven by strong results across several businesses, led by Ria Digital, Issuing, and Merchant Services. Growth in our non-accelerator businesses was somewhat softer than anticipated, primarily due to the impact of US immigration policies and the related pressure on remittance send volumes globally. Moreover, our ATM transactions were a bit softer than we expected earlier in the travel season. Our experience appears to be generally consistent with market sources that indicate that airline bookings from the US to Europe are about 5% to 8% below the peak 2025 booking window and European travelers becoming more selective with discretionary spending.

Mike Brown: As I mentioned, revenue from these products in this quarter grew 31% in the quarter and 35% year to date, well above the 23% growth rate outlined at Investor Day. This performance was driven by strong results across several businesses, led by Ria Digital, Issuing, and Merchant Services. Growth in our non-accelerator businesses was somewhat softer than anticipated, primarily due to the impact of US immigration policies and the related pressure on remittance send volumes globally. Moreover, our ATM transactions were a bit softer than we expected earlier in the travel season. Our experience appears to be generally consistent with market sources that indicate that airline bookings from the US to Europe are about 5% to 8% below the peak 2025 booking window and European travelers becoming more selective with discretionary spending.

Speaker #3: This performance was driven by strong results across several businesses, led by Rhea Digital, issuing and merchant services. Growth in our non-accelerator businesses was somewhat softer than anticipated, primarily due to the impact of U.S.

Speaker #3: immigration policies and the related pressure on remittance send volumes globally. Moreover, our ATM transactions were a bit softer than we expected earlier in the travel season.

Speaker #3: Our experience appears to be generally consistent with market sources, that indicate that airline bookings from the U.S. to Europe are about 5% to 8% below the peak 2025 booking window in European travelers becoming more selective with discretionary spending.

Speaker #3: Despite these near-term headwinds, these businesses remain highly profitable, cash-generative, and strategically important, providing the foundation that enables us to invest in higher growth opportunities.

Michael J. Brown: Despite these near-term headwinds, these businesses remain highly profitable, cash generative, and strategically important, providing the foundation that enables us to invest in higher growth opportunities. Looking ahead, our long-term thesis remains unchanged. Leverage Euronet's world-class payment network to provide seamless digital solutions for our customers. We expect the accelerators to remain our fastest-growing revenue category and a key driver of earnings growth and shareholder value creation over the coming years. Turning to the next slide, Payments Infrastructure, formerly known as EFT, we made meaningful progress advancing several of our digital accelerator initiatives during the quarter. In merchant services, we expanded on the previously announced acquisition of CrediaBank's merchant services business in Greece.

Mike Brown: Despite these near-term headwinds, these businesses remain highly profitable, cash generative, and strategically important, providing the foundation that enables us to invest in higher growth opportunities. Looking ahead, our long-term thesis remains unchanged. Leverage Euronet's world-class payment network to provide seamless digital solutions for our customers. We expect the accelerators to remain our fastest-growing revenue category and a key driver of earnings growth and shareholder value creation over the coming years. Turning to the next slide, Payments Infrastructure, formerly known as EFT, we made meaningful progress advancing several of our digital accelerator initiatives during the quarter. In merchant services, we expanded on the previously announced acquisition of CrediaBank's merchant services business in Greece.

Speaker #3: Looking ahead, our long-term thesis remains unchanged. Leverage EURONET's world-class payment network to provide seamless digital solutions for our customers. We expect the accelerators to remain our fastest-growing revenue category, and a key driver of earnings growth and shareholder value creation over the coming years.

Speaker #3: Turning to the next slide, payments infrastructure, formerly known as EFT, we made meaningful progress advancing several of our digital accelerator initiatives during the quarter.

Speaker #3: In merchant services, we expanded on the previously announced acquisition of Crédit Bank's merchant services business in Greece. During the second quarter, we launched a merchant-acquiring referral program that expands our distribution channels and creates additional opportunities to reach merchants through partner relationships.

Michael J. Brown: During the second quarter, we launched a merchant acquiring referral program that expands our distribution channels and creates additional opportunities to reach merchants through partner relationships. This partnership further strengthened our existing sales initiatives, which resulted in the addition of 4,200 new merchants during the quarter. These additions reflect continued demand for our merchant acquiring solutions and reinforce our strong position in Greece. In payment processing, we also continued to see strong momentum for our CoreCard platform. During the quarter, we signed a credit card processing agreement with Upgrade, a US-based digital banking platform. We also signed a multi-year Ren agreement with Unibanca, one of Peru's leading financial processors, to modernize credit issuing in Peru through Ren's expanded credit architecture powered by CoreCard.

Mike Brown: During the second quarter, we launched a merchant acquiring referral program that expands our distribution channels and creates additional opportunities to reach merchants through partner relationships. This partnership further strengthened our existing sales initiatives, which resulted in the addition of 4,200 new merchants during the quarter. These additions reflect continued demand for our merchant acquiring solutions and reinforce our strong position in Greece. In payment processing, we also continued to see strong momentum for our CoreCard platform. During the quarter, we signed a credit card processing agreement with Upgrade, a US-based digital banking platform. We also signed a multi-year Ren agreement with Unibanca, one of Peru's leading financial processors, to modernize credit issuing in Peru through Ren's expanded credit architecture powered by CoreCard.

Speaker #3: This partnership further strengthened our existing sales initiatives, which resulted in the addition of 4,200 new merchants during the quarter. These additions reflect continued demand for our merchant-acquiring solutions, and reinforce our strong position in Greece.

Speaker #3: In payment processing, we also continue to see strong momentum for our core card platform. During the quarter, we signed a credit card processing agreement with upgrade, a U.S.-based digital banking platform.

Speaker #3: We also signed a multi-year rent agreement with Unibanka, one of Peru's leading financial processors, to modernize credit issuing in Peru through REN's expanded credit architecture powered by Core Card.

Speaker #3: Unibanka currently provides processing services to 9 banks in the country, making this an important competitive win in further demonstrating the flexibility, scalability, and competitiveness of our technology.

Michael J. Brown: Unibanca currently provides processing services to nine banks in the country, making this an important competitive win and further demonstrating the flexibility, scalability, and competitiveness of our technology. Importantly, CoreCard was the difference-maker in winning this business. Prior to the acquisition, we had an issuing platform, but it was not our leading product in our portfolio. We previously participated in the Unibanca RFP, but we were not selected. After we announced the acquisition of CoreCard, it changed the narrative of the sales process. We reengaged with Unibanca as CoreCard's solution not only handles consumer credit at proven scale but also has a robust commercial credit capability, among others. The CoreCard SaaS solution, together with the breadth of Euronet's broader Ren payment product offering, provided Unibanca with a single strategic modernization partner. This ultimately resulted in Unibanca selecting our product, which will displace the incumbent processor.

Mike Brown: Unibanca currently provides processing services to nine banks in the country, making this an important competitive win and further demonstrating the flexibility, scalability, and competitiveness of our technology. Importantly, CoreCard was the difference-maker in winning this business. Prior to the acquisition, we had an issuing platform, but it was not our leading product in our portfolio. We previously participated in the Unibanca RFP, but we were not selected. After we announced the acquisition of CoreCard, it changed the narrative of the sales process. We reengaged with Unibanca as CoreCard's solution not only handles consumer credit at proven scale but also has a robust commercial credit capability, among others. The CoreCard SaaS solution, together with the breadth of Euronet's broader Ren payment product offering, provided Unibanca with a single strategic modernization partner. This ultimately resulted in Unibanca selecting our product, which will displace the incumbent processor.

Speaker #3: Importantly, core card was the difference maker in winning this business. Prior to the acquisition, we had an issuing platform, but it was not our leading product in our portfolio.

Speaker #3: We previously participated in the Unibanka RFP but we were not selected. After we announced the acquisition of core card, it changed the narrative of the sales process.

Speaker #3: We re-engaged with Unibanka as core card solution not only handles consumer credit, at proven scale, but also has a robust commercial credit capability among others.

Speaker #3: The core card SaaS solution, together with the breadth of EURONET's broader rent payment product offering, provided Unibanka with a single strategic modernization partner. This ultimately resulted in Unibanka selecting our product, which we'll displace the incumbent processor.

Speaker #3: This win really speaks to the combined power of core card and REN. Also related to our accelerators, we signed an online merchant-acquiring agreement with NTT Data, a leading merchant-acquirer in the Asia-Pac region.

Michael J. Brown: This win really speaks to the combined power of CoreCard and Ren. Also related to our accelerators, we signed an online merchant acquiring agreement with NTT Data, a leading merchant acquirer in the Asia Pacific region. This relationship highlights the strength of our platform and supports our strategy of partnering with established payment providers in attractive growth markets. Finally, we have signed a new sponsorship agreement with a bank in Costa Rica, which will help us grow our IAD network in this cash-rich country. Overall, these wins reflect continued execution against our strategy of expanding our customer footprint, deepening client relationships, and delivering scalable infrastructure solutions that help our customers grow. As digital payments adoption continues to increase globally, we believe our digital capabilities position us to deliver greater value to customers and capitalize on this long-term trend. Now let's go to slide number seven.

Mike Brown: This win really speaks to the combined power of CoreCard and Ren. Also related to our accelerators, we signed an online merchant acquiring agreement with NTT Data, a leading merchant acquirer in the Asia Pacific region. This relationship highlights the strength of our platform and supports our strategy of partnering with established payment providers in attractive growth markets. Finally, we have signed a new sponsorship agreement with a bank in Costa Rica, which will help us grow our IAD network in this cash-rich country. Overall, these wins reflect continued execution against our strategy of expanding our customer footprint, deepening client relationships, and delivering scalable infrastructure solutions that help our customers grow. As digital payments adoption continues to increase globally, we believe our digital capabilities position us to deliver greater value to customers and capitalize on this long-term trend. Now let's go to slide number seven.

Speaker #3: This relationship highlights the strength of our platform and supports our strategy of partnering with established payment processors, our providers, and attractive growth markets. Finally, we have signed a new sponsorship agreement with a bank in Costa Rica, which will help us grow our IAD network in this cash risk-rich country.

Speaker #3: Overall, these wins reflect continued execution against our strategy of expanding our customer footprint, deepening client relationships, and delivering scalable infrastructure solutions that help our customers grow.

Speaker #3: As digital payments adoption continues to increase globally, we believe our digital capabilities position us to deliver greater value to customers and capitalize on this long-term trend.

Speaker #3: Now let's go to slide number 7. Turning to ePay, we continue to expand digital distribution and payment capabilities across our global network. This quarter, we expanded our merchant services business by completing the integration of Visa and Mastercard acquiring across all DM stores.

Michael J. Brown: Turning to epay, we continue to expand digital distribution and payment capabilities across our global network. This quarter, we expanded our merchant services business by completing the integration of Visa and Mastercard acquiring across all dm stores. dm is one of the largest health and beauty retailers in Europe, operating more than 4,000 stores in 14 countries across the continent. epay is now the exclusive provider of retail POS processing for Visa and Mastercard across all dm stores in Europe, building on our long-term relationship where we were already providing acquiring to them for Alipay, PayPal, Apple Pay, Google Pay, and girocard. During our Investor Day, we highlighted a new opportunity relating to building direct-to-publisher relationships. As digital channels continue to evolve, game publishers are seeking greater control over how their products are marketed, sold, and distributed.

Mike Brown: Turning to epay, we continue to expand digital distribution and payment capabilities across our global network. This quarter, we expanded our merchant services business by completing the integration of Visa and Mastercard acquiring across all dm stores. dm is one of the largest health and beauty retailers in Europe, operating more than 4,000 stores in 14 countries across the continent. epay is now the exclusive provider of retail POS processing for Visa and Mastercard across all dm stores in Europe, building on our long-term relationship where we were already providing acquiring to them for Alipay, PayPal, Apple Pay, Google Pay, and girocard. During our Investor Day, we highlighted a new opportunity relating to building direct-to-publisher relationships. As digital channels continue to evolve, game publishers are seeking greater control over how their products are marketed, sold, and distributed.

Speaker #3: DM is one of the largest health and beauty retailers in Europe, operating more than 4,000 stores in 14 countries across the continent. ePay is now the exclusive provider of retail POS processing for Visa and Mastercard across all DM stores in Europe, building on our long-term relationship where we were already providing acquiring to them for Alipay, PayPal, Apple Pay, Google Pay, and Girocard.

Speaker #3: During our investor day, we highlighted a new opportunity relating to building direct-to-publisher relationships. As digital channels continue to evolve, game publishers are seeking greater control over how their products are marketed, sold, and distributed.

Speaker #3: This is creating new capabilities for ePay to leverage its global distribution network, issuer capabilities, and publisher relationships. Through our direct-to-publisher strategy, we are working directly with game publishers to distribute their content across our expansive network of digital and physical channels, while also supporting publishers that choose to introduce their own branded store value products.

Michael J. Brown: This is creating new capabilities for epay to leverage its global distribution network, issuer capabilities, and publisher relationships. Through our direct-to-publisher strategy, we are working directly with game publishers to distribute their content across our expansive network of digital and physical channels, while also supporting publishers that choose to introduce their own branded store value products. As app store billing frameworks continue to evolve, particularly in mobile gaming, we believe demand for these services will increase over time. This quarter, we furthered our direct-to-publisher strategy by signing a distribution agreement with Capcom, a tier 1 Japanese game publisher with iconic franchises such as Street Fighter and Resident Evil. Capcom sold 59 million units last year, and this agreement allows us to directly distribute Capcom content across Europe with attractive economics.

Mike Brown: This is creating new capabilities for epay to leverage its global distribution network, issuer capabilities, and publisher relationships. Through our direct-to-publisher strategy, we are working directly with game publishers to distribute their content across our expansive network of digital and physical channels, while also supporting publishers that choose to introduce their own branded store value products. As app store billing frameworks continue to evolve, particularly in mobile gaming, we believe demand for these services will increase over time. This quarter, we furthered our direct-to-publisher strategy by signing a distribution agreement with Capcom, a tier 1 Japanese game publisher with iconic franchises such as Street Fighter and Resident Evil. Capcom sold 59 million units last year, and this agreement allows us to directly distribute Capcom content across Europe with attractive economics.

Speaker #3: As an app store billing frameworks continue to evolve, particularly in mobile gaming, we believe demand for these services will increase over time. This quarter, we furthered our direct-to-publisher strategy by signing a distribution agreement with Capcom, a tier-one Japanese game publisher with iconic franchises such as Street Fighter and Resident Evil.

Speaker #3: Capcom sold 59 million units last year, and this agreement allows us to directly distribute Capcom content across Europe with attractive economics. This digital distribution agreement demonstrates our ability to establish direct publisher relationships and we expect this to continue across both PC and mobile gaming.

Michael J. Brown: This digital distribution agreement demonstrates our ability to establish direct publisher relationships. We expect this to continue across both PC and mobile gaming. In Japan, we signed an agreement with Yahoo and Rakuten to distribute Roblox and Riot products. We launched Google Play, Xbox, Riot, and PlayStation products on Stanverse, an Indian gaming platform. These initiatives further strengthen our branded payments and merchant services businesses while expanding the reach of our digital distribution platform. Additionally, after years of anticipation, I've talked to you about this multiple times, and several delays, Rockstar has officially opened Grand Theft Auto VI pre-orders in late June and confirmed a 19 November release date. We immediately saw a positive response in sales of PlayStation and Xbox gaming credits used to fund those purchases.

Mike Brown: This digital distribution agreement demonstrates our ability to establish direct publisher relationships. We expect this to continue across both PC and mobile gaming. In Japan, we signed an agreement with Yahoo and Rakuten to distribute Roblox and Riot products. We launched Google Play, Xbox, Riot, and PlayStation products on Stanverse, an Indian gaming platform. These initiatives further strengthen our branded payments and merchant services businesses while expanding the reach of our digital distribution platform. Additionally, after years of anticipation, I've talked to you about this multiple times, and several delays, Rockstar has officially opened Grand Theft Auto VI pre-orders in late June and confirmed a 19 November release date. We immediately saw a positive response in sales of PlayStation and Xbox gaming credits used to fund those purchases.

Speaker #3: In Japan, we signed an agreement with Yahoo and Rakuten to distribute Roblox and Riot products, we launched Google Play, Xbox, Riot, and PlayStation products, on Stanverse, an Indian gaming platform.

Speaker #3: These initiatives further strengthen our branded payments and merchant services businesses while expanding the reach of our digital distribution platform. Additionally, after years of anticipation and I've talked to you about this multiple times, and several delays, Rockstar has officially opened Grand Theft Auto number 6 preorders in late June and confirmed a November 19th release date.

Speaker #3: We immediately saw a positive response in sales of PlayStation and Xbox gaming credits, used to fund those purchases. GTA 6 is widely expected to be one of the largest entertainment launches ever, and we believe the opportunity extends well beyond the initial game into months of ongoing digital spending.

Michael J. Brown: GTA VI is widely expected to be one of the largest entertainment launches ever. We believe the opportunity extends well beyond the initial game into months of ongoing digital spending. More specifically, large-scale releases tend to create an extended engagement cycle that begins with pre-orders, accelerates through the launch, and continues through with downloadable content, online gameplay, subscriptions, and in-game purchases. While we're not forecasting results tied to a single title, the early demand we are seeing reinforces our confidence in gaming as one of our most attractive growth categories. Finally, as an update to our real money gaming strategy, Marker Trax and Koin continue to make meaningful progress. Marker Trax's omni-channel solution, built on Euronet's Ren platform, is now certified with most US casino management systems.

Mike Brown: GTA VI is widely expected to be one of the largest entertainment launches ever. We believe the opportunity extends well beyond the initial game into months of ongoing digital spending. More specifically, large-scale releases tend to create an extended engagement cycle that begins with pre-orders, accelerates through the launch, and continues through with downloadable content, online gameplay, subscriptions, and in-game purchases. While we're not forecasting results tied to a single title, the early demand we are seeing reinforces our confidence in gaming as one of our most attractive growth categories. Finally, as an update to our real money gaming strategy, Marker Trax and Koin continue to make meaningful progress. Marker Trax's omni-channel solution, built on Euronet's Ren platform, is now certified with most US casino management systems.

Speaker #3: More specifically, large-scale releases tend to create an extended engagement cycle that begins with preorders accelerates through the launch and continues through with downloadable content, online gameplay, subscriptions, and in-game purchases.

Speaker #3: Well, we're not forecasting results tied to a single title, the early demand we are seeing reinforces our confidence in gaming as one of our most attractive growth categories.

Speaker #3: Finally, as an update to our real money gaming strategy, market tracks and coin continue to make meaningful progress. Market tracks is omnichannel solution built on URONET's REN platform is now certified with most US casino management systems.

Speaker #3: We expect them to achieve certification across all major US slot machine systems as well as their first table management system by year-end. At the same time, one of the world's largest gaming and entertainment technology companies, has selected.

Michael J. Brown: We expect them to achieve certification across all major US slot machine systems as well as their first table management system by year-end. At the same time, one of the world's largest gaming and entertainment technology companies has selected Koin Direct as its white label solution, enabling players to fund slot machines, play directly from their bank accounts using their mobile phones. Together, these milestones reinforce the momentum they are building across both platforms going into next year and beyond. As we discussed on our Investor Day, epay benefits from a highly scalable global network that connects brands, retailers, and consumers across both physical and digital channels. The opportunities we are pursuing today leverage that same infrastructure, creating additional avenues for growth and increasing the value of the platform over time. Now let's move on to slide eight. We'll talk about cross-border payments business formerly known as money transfer.

Mike Brown: We expect them to achieve certification across all major US slot machine systems as well as their first table management system by year-end. At the same time, one of the world's largest gaming and entertainment technology companies has selected Koin Direct as its white label solution, enabling players to fund slot machines, play directly from their bank accounts using their mobile phones. Together, these milestones reinforce the momentum they are building across both platforms going into next year and beyond. As we discussed on our Investor Day, epay benefits from a highly scalable global network that connects brands, retailers, and consumers across both physical and digital channels. The opportunities we are pursuing today leverage that same infrastructure, creating additional avenues for growth and increasing the value of the platform over time. Now let's move on to slide eight. We'll talk about cross-border payments business formerly known as money transfer.

Speaker #3: Coin Direct as its white-label solution, enabling players to fund slot machines, play directly from their bank accounts using their mobile phones. Together, these milestones reinforce the momentum they are building across both platforms, across both platforms going into next year.

Speaker #3: And beyond. As we discussed on our Investor Day, ePay benefits from a highly scalable global network that connects brands, retailers, and consumers across both physical and digital channels.

Speaker #3: The opportunities we are pursuing today leverage that same infrastructure creating additional avenues for growth and increasing the value of the platform over time. Now let's move on to slide eight, and we'll talk about cross-border payments business, formerly known as Money Transfer.

Speaker #3: Slide eight. The second quarter, cross-border payments results were softer than we expected driven by two primary factors. First, US immigration enforcement continued to weigh on cross-border transaction volumes primarily from the US to Mexico.

Michael J. Brown: Slide eight. The Q2 cross-border payments results were softer than we expected, driven by two primary factors. First, US immigration enforcement continued to weigh on cross-border transaction volumes, primarily from the US to Mexico. This was a market-wide dynamic as the broader US outbound remittance market experienced its first annual decline in more than a decade. Supporting that trend, the Brookings Institution reported that net migration was likely close to zero or negative across the calendar year 2025 for the first time in at least a half a century, reducing the pool of new workers and consumers that historically drive outbound remittance growth. Market reports also show encouraging signs, though, of stabilization with growth in remittance volume to Mexico over the last 4 months. We are executing several initiatives to reinvigorate growth in the retail channel where we felt the pain.

Mike Brown: Slide eight. The Q2 cross-border payments results were softer than we expected, driven by two primary factors. First, US immigration enforcement continued to weigh on cross-border transaction volumes, primarily from the US to Mexico. This was a market-wide dynamic as the broader US outbound remittance market experienced its first annual decline in more than a decade. Supporting that trend, the Brookings Institution reported that net migration was likely close to zero or negative across the calendar year 2025 for the first time in at least a half a century, reducing the pool of new workers and consumers that historically drive outbound remittance growth. Market reports also show encouraging signs, though, of stabilization with growth in remittance volume to Mexico over the last 4 months. We are executing several initiatives to reinvigorate growth in the retail channel where we felt the pain.

Speaker #3: This was a market-wide dynamic as the broader US outbound remittance market experienced its first annual decline in more than a decade. Supporting that trend, the Brookings Institution reported that net migration was likely close to zero or negative across the calendar year 2025 for the first time in at least a half a century.

Speaker #3: Reducing the pool of new workers and consumers that historically drive outbound remittance growth. Market reports also show encouraging signs, though, of stabilization with growth in remittance volume to Mexico over the last four months.

Speaker #3: We are executing several initiatives to reinvigorate growth in the retail channel where we've felt the pain. And while overall volumes have softened, our geo and channel diversification is enabling us to weather the storm, highlighted by the very strong growth in our digital channel.

Michael J. Brown: While overall volumes have softened, our geo and channel diversification is enabling us to weather the storm, highlighted by the very strong growth in our digital channel. The second-largest driver of the softness was a difficult comp to the prior year's Q2, where we saw unusually high margins from a non-recurring fee rebate in Pakistan and certain one-time FX opportunities. Those two items together with incremental investment in our cross-border payment accelerators are the key drivers of the softer segment's operating income. I remain confident that the underlying business remains healthy and the long-term growth trajectory remains intact. As I turn to the highlights, Ria Digital continues to lead our growth, with digital transactions increasing 33%, our Q4 consecutive quarter of growth exceeding 30%. The business continues to demonstrate its durability with more than 90% of the transaction volume coming from repeat customers.

Mike Brown: While overall volumes have softened, our geo and channel diversification is enabling us to weather the storm, highlighted by the very strong growth in our digital channel. The second-largest driver of the softness was a difficult comp to the prior year's Q2, where we saw unusually high margins from a non-recurring fee rebate in Pakistan and certain one-time FX opportunities. Those two items together with incremental investment in our cross-border payment accelerators are the key drivers of the softer segment's operating income. I remain confident that the underlying business remains healthy and the long-term growth trajectory remains intact. As I turn to the highlights, Ria Digital continues to lead our growth, with digital transactions increasing 33%, our Q4 consecutive quarter of growth exceeding 30%. The business continues to demonstrate its durability with more than 90% of the transaction volume coming from repeat customers.

Speaker #3: The second largest driver of the softness was a difficult comp to the prior year's second quarter where we saw an unusually high margins from a non-recurring fee rebate in Pakistan, and certain one-time FX opportunities.

Speaker #3: Those two items together with incremental investment in our cross-border payment accelerators are the key drivers of the software of the softer segments operating income.

Speaker #3: I remain confident that the underlying business remains healthy and the long-term growth trajectory remains intact. As I turn to the highlights, RIA Digital continues to lead our growth with digital transactions increasing 33%, our fourth consecutive quarter of growth exceeding 30%.

Speaker #3: The business continues to demonstrate its durability with more than 90% of the transaction volume coming from repeat customers. During the quarter, we continued investing for future growth, increasing digital marketing spend by approximately $3 million to support customer acquisition and long-term expansion.

Michael J. Brown: During the Q, we continued investing for future growth, increasing digital marketing spend by approximately $3 million to support customer acquisition and long-term expansion. We also made meaningful progress with Dandelion, signing Mastercard Move as a new partner during the Q. This partnership enables Mastercard Move, one of the world's largest payment ecosystems, to expand its global payout capabilities through the Dandelion network. We expect the service to go live in the Q4 with transaction volumes ramping gradually through a phased rollout. In addition to Mastercard, we signed five new Dandelion partners, further expanding this key strategic accelerator. In the UK, we launched an agreement with Uber to integrate Ria Money Transfer into Uber's driver app.

Mike Brown: During the Q, we continued investing for future growth, increasing digital marketing spend by approximately $3 million to support customer acquisition and long-term expansion. We also made meaningful progress with Dandelion, signing Mastercard Move as a new partner during the Q. This partnership enables Mastercard Move, one of the world's largest payment ecosystems, to expand its global payout capabilities through the Dandelion network. We expect the service to go live in the Q4 with transaction volumes ramping gradually through a phased rollout. In addition to Mastercard, we signed five new Dandelion partners, further expanding this key strategic accelerator. In the UK, we launched an agreement with Uber to integrate Ria Money Transfer into Uber's driver app.

Speaker #3: We also made meaningful progress with Dandelion, signing Mastercard Move as a new partner during the quarter. This partnership enables Mastercard Move one of the world's largest payment ecosystems to expand its global payout capabilities through the Dandelion network.

Speaker #3: We expect the service to go live in the fourth quarter with transaction volumes ramping gradually through a phased rollout. In addition to Mastercard, we signed five new Dandelion partners further expanding this key strategic accelerator.

Speaker #3: In the UK, we launched an agreement with Uber to integrate Ria Money Transfer into Uber's driver app. This digital partnership will allow Uber drivers to send funds to their beneficiary directly from the app where they receive their earnings.

Michael J. Brown: This digital partnership will allow Uber drivers to send funds to their beneficiary directly from the app where they receive their earnings, giving them a competitive money transfer offering while saving time and reducing friction. Initiatives like this will continue to expand our reach and create new opportunities to serve both consumers and enterprise customers. In addition, we further enhanced our product offering through the launch of Bríbi, enabling instant payments in Colombia. Finally, we expanded our wallet payout capabilities in Nigeria through the addition of four new banking partners. In summary, while the Q's top-line print was softer than we wanted to report, the fundamentals of the business are still intact. Our strategic initiatives are contributing to a strong transaction in customer growth.

Mike Brown: This digital partnership will allow Uber drivers to send funds to their beneficiary directly from the app where they receive their earnings, giving them a competitive money transfer offering while saving time and reducing friction. Initiatives like this will continue to expand our reach and create new opportunities to serve both consumers and enterprise customers. In addition, we further enhanced our product offering through the launch of Bríbi, enabling instant payments in Colombia. Finally, we expanded our wallet payout capabilities in Nigeria through the addition of four new banking partners. In summary, while the Q's top-line print was softer than we wanted to report, the fundamentals of the business are still intact. Our strategic initiatives are contributing to a strong transaction in customer growth.

Speaker #3: Giving them a competitive money transfer offering while saving time and reducing friction. Initiatives like this will continue to expand our reach and create new opportunities to serve both customers I'm sorry, consumers and enterprise customers.

Speaker #3: In addition, we further enhanced our product offering through the launch of BREBE enabling instant payments in Colombia. Finally, we expanded our wallet payout capabilities in Nigeria through the addition of four new banking partners.

Speaker #3: In summary, while the quarter's top line print was softer than we wanted to report, the fundamentals of the business are still intact. Our strategic initiatives are contributing to a strong transaction and customer growth.

Speaker #3: We remain encouraged by the continued momentum in our digital business, the expansion of our global payment networks, and the opportunities we see to drive long-term profitable growth across the cross-border payment segment.

Michael J. Brown: We remain encouraged by the continued momentum in our digital business, the expansion of our global payment networks, and the opportunities we see to drive long-term profitable growth across the cross-border payment segment. With that, I will hand it over to Rick.

Mike Brown: We remain encouraged by the continued momentum in our digital business, the expansion of our global payment networks, and the opportunities we see to drive long-term profitable growth across the cross-border payment segment. With that, I will hand it over to Rick.

Speaker #3: With that, I will hand it over to Rick.

Speaker #1: Thanks, Mike. Good morning, everyone. I will begin my comments on slide 10. For the quarter, we delivered revenue of $1.1 billion, operating income of $137 million, and adjusted EBITDA of $193 million.

Rick Weller: Thanks, Mike. Good morning, everyone. I will begin my comments on slide 10. For the quarter, we delivered revenue of $1.1 billion, operating income of $137 million, and adjusted EBITDA of $193 million. Our adjusted EPS was $2.82, a 10% increase over the prior year. It is worth noting that our operating income includes $4.7 million of additional non-cash purchase price amortization related to the GAAP purchase accounting for the CoreCard acquisition. An additional $1.9 million for non-cash share-based compensation. Excluding these two non-cash items, our operating income would have declined by 9%, which is largely attributable to the lighter cross-border payments volume. Further, we continued to generate strong free cash flows, producing approximately $80 million in the quarter. In addition to investments in our digital initiatives, this free cash flow also allowed us to repurchase approximately 705,000 shares for $50 million.

Speaker #1: Our adjusted EPS was $2.82, a 10% increase over the prior year. It is worth noting that our operating income includes $4.7 million of additional non-cash purchase price amortization related to the gap purchase accounting for the core card acquisition.

Speaker #1: And an additional $1.9 million for non-cash share-based compensation. Excluding these two non-cash items, our operating income would have declined by 9%, which is largely attributable to the lighter cross-border payments volume.

Speaker #1: Further, we continued to generate strong free cash flows producing approximately $80 million in the quarter. In addition to investments in our digital initiatives, this free cash flow also allowed us to repurchase approximately $705,000 shares for $50 million.

Rick Weller: These repurchases occurred later in the quarter and therefore had minimal impact on our quarterly adjusted EPS, but will benefit adjusted EPS in future quarters. Slide 11 shows our Q2 year-over-year results on an as-reported basis. Most of the major currencies where we operate in strengthened compared to the US dollar. To normalize the impact of the currency fluctuations, we have presented our results adjusted for currency on the next slide. Slide 12. The Payments Infrastructure segment delivered good results for the quarter, with revenue growth driven by continued expansion in merchant acquiring, interchange increases in certain markets, and the addition of CoreCard, which we acquired in Q4 2025. Operating income and adjusted EBITDA increased 2% and 6%, respectively, reflecting incremental earnings from these growth drivers, partially offset by ongoing cost inflation across our global markets.

Speaker #1: These repurchases occurred later in the quarter and therefore had minimal impact on our quarterly adjusted EPS, but will benefit adjusted EPS in future quarters.

Speaker #1: Slide 11 shows our second quarter year-over-year results on an as-reported basis. Most of the currencies major currencies where we operate in strengthened compared to the US dollar.

Speaker #1: To normalize the impact of the currency fluctuations, we have presented our results adjusted for currency on the next slide. Slide 12. The payments infrastructure segment delivered good results for the quarter.

Speaker #1: With revenue growth driven by continued expansion and merchant acquiring, interchange increases in certain markets and the addition of core card which we acquired in the fourth quarter 2025.

Speaker #1: Operating income and adjusted EBITDA increased 2% and 6%, respectively, reflecting incremental earnings from these growth drivers, partially offset by ongoing cost inflation across our global markets.

Speaker #1: Operating income includes a 4.7 million dollar increase in non-cash purchase accounting amortization. I previously commented on related to the core card acquisition. Excluding that impact, operating income would have increased 7% in EPAY revenue grew 4% and operating income and adjusted EBITDA each grew approximately 5%.

Rick Weller: Operating income includes a $4.7 million increase in non-cash purchase accounting amortization I previously commented on related to the CoreCard acquisition. Excluding that impact, operating income would have increased 7%. In epay, revenue grew 4% and operating income and adjusted EBITDA each grew approximately 5%. These results reflect continued growth in higher-value digital content and merchant acquiring. Transactions were down about 11% due to shifting in low-value transactions in Asia Pacific. These transactions had nominal impacts on both revenue and profits. The Cross-Border Payments segment results reflect the challenging operating environment Mike just outlined. Revenue declined 5%, reflecting lower US to Mexico remittance volumes as US immigration policies continued to weigh on activity in this quarter. This is partially offset by strong transaction growth at Ria Digital.

Speaker #1: These results reflect continued growth in higher value digital content and merchant acquiring. Transactions were down about 11% due to shifting in low value transactions in Asia-Pac.

Speaker #1: These transactions had nominal impacts on both revenue and profits. The cross-border payments segment results reflect the challenging operating environment Mike just outlined. Revenue declined 5% reflecting lower US to Mexico remittance volumes as US immigration policies continue to weigh on activity in this quarter.

Speaker #1: This is partially offset by strong transaction growth at Ria Digital. The second quarter results were also compared to a favorable second quarter 2025, where we benefited from a non-recurring fee rebate in Pakistan and certain favorable foreign exchange-related opportunities that carried high margins and did not repeat this year.

Rick Weller: The Q2 results were also compared to a favorable Q2 2025, where we benefited from a non-recurring fee rebate in Pakistan and certain favorable foreign exchange-related opportunities that carried high margins and did not repeat this year. Operating income and adjusted EBITDA declined 35% and 32%, respectively. About 60% of these declines are related to decline in revenue and related gross profit. Approximately 25% is related to incremental investment in sales and marketing to benefit our long-term digital accelerator growth drivers. We believe these investments were beneficial as they contributed to 35% growth in digital revenue. At the consolidated level, we delivered double-digit adjusted EPS growth despite the challenges in Cross-Border Payments. Solid performance in Payments Infrastructure and epay, combined with continued momentum across our digital channels, helped offset pressures in Cross-Border Payments.

Speaker #1: Operating income and adjusted EBITDA declined 35% and 32%, respectively. About 60% of these declines are related to the decrease in revenue and related gross profit, and approximately 25% is related to incremental investment in sales and marketing to benefit our long-term Digital Accelerator growth drivers.

Speaker #1: We believe these investments were beneficial, as they contributed to 35% growth in digital revenue. At the consolidated level, we delivered double-digit adjusted EPS growth, despite the challenges in cross-border payments.

Speaker #1: Solid performance in payments infrastructure and EPAY combined with continued momentum across our digital channels helped offset pressures in cross-border payments. Despite near-term headwinds, we are confident in the underlying fundamentals and long-term thesis of our cross-border business.

Rick Weller: Despite near-term headwinds, we are confident in the underlying fundamentals and long-term thesis of our cross-border business. Looking ahead, our outlook remains unchanged. As we discussed during our Q1 call and the Investor Day, our digital accelerators continue to perform well and are becoming a larger part of our business mix. We continue to expect full-year adjusted EPS growth in the 10% to 15% range, with quarterly earnings becoming more evenly distributed throughout the year as our digital growth strategy helps balance the quarter mix of our business. As we previously shared, Q2 and Q3 are expected to represent a smaller share of annual earnings than they have in historical quarters. Now let's turn to slide 13 for a few comments on the balance sheet. We ended the quarter with $1.2 billion in unrestricted cash and nearly $1 billion in cash deployed in our ATM network.

Speaker #1: Looking ahead, our unchanged. As we discussed during our first quarter call and the investor day, our digital accelerators continue to perform well and are becoming a larger part of our business mix.

Speaker #1: We continue to expect full-year adjusted EPS growth in the 10 to 15 percent range with quarterly earnings becoming more evenly distributed throughout the year as our digital growth strategy helps balance the quarter mix of our business.

Speaker #1: As we previously shared, the second and third quarters are expected to represent a smaller share of annual earnings than they have in historical quarters.

Speaker #1: Now let’s turn to slide 13 for a few comments on the balance sheet. We ended the quarter with $1.2 billion in unrestricted cash and nearly $1 billion in cash deployed in our ATM network.

Speaker #1: Total debt was 2.7 at the end of the quarter. Changes in both cash and debt primarily reflect the seasonal funding required to support peak ATM cash demand together with share repurchases partially offset by approximately 80 million in cash generated from operations.

Rick Weller: Total debt was $2.7 at the end of the quarter. Changes in both cash and debt primarily reflect the seasonal funding required to support peak ATM cash demand, together with share repurchases, partially offset by approximately $80 million in cash generated from operations. Towards the end of May, we settled our EUR 700 million bonds. This resulted in increased interest expense of about $1.3 million in Q2 compared to the prior year. As we look forward, we expect this will increase interest expense by approximately $6 million for the remainder of the year versus the prior year, based on current EUR borrowing rates. As we discussed in May, share repurchases remain a key component of our capital allocation strategy and are funded primarily through our recurring operating free cash flows.

Speaker #1: Towards the end of May, we settled our $700 million euro bonds. This resulted in increased interest expense of about $1.3 million in the second quarter compared to the prior year.

Speaker #1: As we look forward, we expect this will increase interest expense by approximately $6 million for the remainder of the year versus the prior year.

Speaker #1: Based on current EURO borrowing rates. As we discussed in May, share repurchases remain a key component of our capital allocation strategy and our funded primarily through our recurring operating free cash flows.

Speaker #1: We continue to view buybacks as an attractive use of capital and a reflection of our view regarding the value of our shares relative to long-term opportunities for the business.

Rick Weller: We continue to view buybacks as an attractive use of capital and a reflection of our view regarding the value of our shares relative to long-term opportunities for the business. Going forward, we will remain disciplined in capital allocation. With that, I'll turn it back to Mike for his closing remarks.

Speaker #1: Going forward, we will remain disciplined in capital allocation. With that, I'll turn it back to Mike for his closing remarks.

Speaker #2: Thank you. As we wrap up, my key takeaway is this. Momentum in our digital accelerators continues to strengthen and is increasingly shaping the future of EURONET with revenue from this category up 35% year to date well ahead of our long-term framework that we communicated to you as investor day.

Michael J. Brown: Thank you. As we wrap up, my key takeaway is this: momentum in our digital accelerators continues to strengthen and is increasingly shaping the future of Euronet, with revenue from this category up 35% year to date, well ahead of our long-term framework that we communicated to you at the Investor Day. In the cross-border payments section, Ria Digital delivered another strong quarter, with revenue and transactions up 35% and 33% respectively, while Dandelion expanded through Mastercard Move and five new partners. In payments infrastructure, we saw continued strength in merchant acquiring and growing demand for CoreCard, highlighted by our new agreement with Unibanca. In epay, we are growing our digital content and gaming revenue through new direct publisher relationships, expanded distribution, and progress in real money gaming. Importantly, these accelerators are becoming a larger and much more durable part of our revenue mix.

Mike Brown: Thank you. As we wrap up, my key takeaway is this: momentum in our digital accelerators continues to strengthen and is increasingly shaping the future of Euronet, with revenue from this category up 35% year to date, well ahead of our long-term framework that we communicated to you at the Investor Day. In the cross-border payments section, Ria Digital delivered another strong quarter, with revenue and transactions up 35% and 33% respectively, while Dandelion expanded through Mastercard Move and five new partners. In payments infrastructure, we saw continued strength in merchant acquiring and growing demand for CoreCard, highlighted by our new agreement with Unibanca. In epay, we are growing our digital content and gaming revenue through new direct publisher relationships, expanded distribution, and progress in real money gaming. Importantly, these accelerators are becoming a larger and much more durable part of our revenue mix.

Speaker #2: In the cross-border payments section, Ria Digital delivered another strong quarter, with revenue and transactions up 35% and 33%, respectively. Meanwhile, Dandelion expanded through Mastercard Move and five new partners.

Speaker #2: In payments infrastructure, we saw continued strength in merchant acquiring and growing demand for core card highlighted by our new agreement with UnionBanka. In EPAY, we are growing our digital content and gaming revenue through new direct publisher relationships expanded distribution and progress in real money gaming.

Speaker #2: Importantly, these accelerators are becoming a larger and much more durable part of our revenue mix. While parts of the business face near-term macroeconomic headwinds this quarter, our core strategy remains intact, our platforms are scaling, and our outlook is unchanged.

Michael J. Brown: While parts of the business face near-term macroeconomic headwinds this quarter, our core strategy remains intact, our platforms are scaling, and our outlook is unchanged. We remain confident in delivering our long-term growth objectives and creating value for the shareholders. With that, I'd be happy to take questions. Operator, will you please assist?

Mike Brown: While parts of the business face near-term macroeconomic headwinds this quarter, our core strategy remains intact, our platforms are scaling, and our outlook is unchanged. We remain confident in delivering our long-term growth objectives and creating value for the shareholders. With that, I'd be happy to take questions. Operator, will you please assist?

Speaker #2: We remain confident in delivering our long-term growth objectives and creating value for the shareholders. With that, I'd be happy to take questions, operator will you please assist.

Speaker #3: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.

Operator: Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Peter Heckmann from D.A. Davidson. Pete, the line is now yours.

Operator: Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Pete Heckmann from D.A. Davidson. Pete, the line is now yours.

Speaker #3: To withdraw your question, please press star one-one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Pete Heckman from D.A. Davidson.

Speaker #3: Pete, the line is now yours.

Speaker #4: Thank you very much—a lot of detail. I wanted to follow up on your comments on the digital accelerators. Revenue related to those businesses is up 35% in the first half, but your 2026 guidance is up 23%.

Peter Heckmann: Thank you very much. A lot of detail. I wanted to follow up on your comments on the digital accelerators. Revenue related to those businesses is up 35% in H1, your 2026 guidance is up 23%. Is that because of the lapping the CoreCard acquisition, or is there another difficult comparison that we should be thinking about, or is the full-year guidance maybe just a little bit conservative?

Pete Heckmann: Thank you very much. A lot of detail. I wanted to follow up on your comments on the digital accelerators. Revenue related to those businesses is up 35% in H1, your 2026 guidance is up 23%. Is that because of the lapping the CoreCard acquisition, or is there another difficult comparison that we should be thinking about, or is the full-year guidance maybe just a little bit conservative?

Speaker #4: Is that because of the lapping the core card acquisition or is there another difficult comparison that we should be thinking about or is the full year guidance maybe just a little bit conservative?

Speaker #2: I would say the lapping is the biggest thing. But plus I mean, at the investor day, we are trying to be thoughtfully conservative. It's been I'll tell you right now, it's grown even faster than we thought it would.

Michael J. Brown: I would say the lapping is the biggest thing. Plus, at the Investor Day, we were trying to be thoughtfully conservative. I'll tell you right now, it's grown even faster than we thought it would. We're pretty happy with those growth accelerators.

Mike Brown: I would say the lapping is the biggest thing. Plus, at the Investor Day, we were trying to be thoughtfully conservative. I'll tell you right now, it's grown even faster than we thought it would. We're pretty happy with those growth accelerators.

Speaker #2: So we're pretty happy with those growth accelerators.

Peter Heckmann: Great. Just to follow up on CoreCard, I didn't hear you mention it, but CoreCard definitely outperformed on the revenue line in Q1. In Q2, would you say that it was generally in line with the revenue run rate that we're using on a quarterly basis, something in the $16 to $18 million of acquired revenue for the quarter?

Pete Heckmann: Great. Just to follow up on CoreCard, I didn't hear you mention it, but CoreCard definitely outperformed on the revenue line in Q1. In Q2, would you say that it was generally in line with the revenue run rate that we're using on a quarterly basis, something in the $16 to $18 million of acquired revenue for the quarter?

Speaker #4: Great, great. And then, just to follow up on core card, I didn't hear you mention it, but core card definitely outperformed on the revenue line in the first quarter.

Speaker #4: But in the second quarter, would you say that it was generally in line with the run rate, the revenue run rate that we're using on a quarterly basis, something in the 16 to 18 million dollars of acquired revenue for the quarter?

Speaker #2: Yeah. Yes, sir, Pete. Yeah, as we pointed out in the first quarter, we had some one-time revenue that didn't do much in terms of profit because it was basically just pass-through cost that we have to account for under GAAP.

Rick Weller: Yes, sir, Pete. As we pointed out in Q1, we had some one-time revenue that didn't do much in terms of profit because it was basically just pass-through cost that we have to account for under GAAP. Your analysis is right on.

Rick Weller: Yes, Pete. As we pointed out in Q1, we had some one-time revenue that didn't do much in terms of profit because it was basically just pass-through cost that we have to account for under GAAP. Your analysis is right on.

Speaker #2: So your analysis is right on. Yeah, you remember that a lot of times when people get ready to issue a bunch of cards, they have to buy the plastic in advance.

Michael J. Brown: Yeah. You remember that a lot of times when people get ready to issue a bunch of cards, they have to buy the plastic in advance. We provide that to them with little to no markup. That was, I can't remember, $10 million or something like that. It was a lot of money.

Mike Brown: Yeah. You remember that a lot of times when people get ready to issue a bunch of cards, they have to buy the plastic in advance. We provide that to them with little to no markup. That was, I can't remember, $10 million or something like that. It was a lot of money.

Speaker #2: So we provide that to them with little to no markup, and that was, I can't remember, 10 million bucks or something like that. It was a lot of money.

Peter Heckmann: Yeah.

Rick Weller: Yeah.

Speaker #4: Yeah.

Michael J. Brown: Yeah.

Mike Brown: Yeah.

Speaker #2: Yeah.

Speaker #4: Okay, that's great. I appreciate it.

Peter Heckmann: Okay. That's great. I appreciate it.

Pete Heckmann: Okay. That's great. I appreciate it.

Speaker #3: Thank you. Our next question comes from the line of Mike Grandall from Northland. Mike, the line is now yours.

Operator: Thank you. Our next question comes from the line of Mike Grondahl from Northland. Mike, the line is now yours.

Speaker #5: Hey guys, thanks. And on the money transfer area, any plans for increased marketing or promotion? I guess I'm trying to understand what you guys are doing to kind of return to growth there.

Mike Grondahl: Hey, guys. Thanks. On the money transfer area, any plans for increased marketing or promotion? I guess I'm trying to understand what you guys are doing to kind of return to growth there.

Speaker #2: Well, I mean, first of all, we got a bad kind of macro, but we found that our investments in digital are paying off very handsomely.

Michael J. Brown: Well, first of all, we've got a bad kind of macro, but we've found that our investments in digital are paying off very handsomely. We mentioned that we spent about an extra $3 million this last quarter in various marketing, mostly digital. Yes, we are doing that, and we will continue. Now, the problem is, if we're spending $3 million this quarter, you really don't see that revenue come in for another quarter or so. We look forward maybe to the fruits of those labors coming in Q3 and Q4. Yes, we are going to do it. The reality is, the market is weak. We need to be careful not to put too much money kind of barking up the wrong tree kind of thing. With digital, we're doing exceedingly well, and we will continue to accelerate that.

Mike Brown: Well, first of all, we've got a bad kind of macro, but we've found that our investments in digital are paying off very handsomely. We mentioned that we spent about an extra $3 million this last quarter in various marketing, mostly digital. Yes, we are doing that, and we will continue. Now, the problem is, if we're spending $3 million this quarter, you really don't see that revenue come in for another quarter or so. We look forward maybe to the fruits of those labors coming in Q3 and Q4. Yes, we are going to do it. The reality is, the market is weak. We need to be careful not to put too much money kind of barking up the wrong tree kind of thing. With digital, we're doing exceedingly well, and we will continue to accelerate that.

Speaker #2: And we mentioned that we spent about an extra $3 million this last quarter in various marketing, mostly digital. So yes, we are doing that, and we will continue now.

Speaker #2: The problem is if we're spending $3 million, this quarter, you really don't see that revenue come in for another quarter or so. So we look forward maybe to the fruits of those labors coming in in Q3 and Q4.

Speaker #2: But yes, we are going to do it, but the reality is the market is weak. And so we need to be careful not to put too much money kind of barking up the wrong tree kind of thing.

Speaker #2: And but with digital, we're doing exceedingly well. And so we will continue to accelerate that.

Mike Grondahl: Got it. Just secondly, the European ATM footprint. I think I heard you say, Mike, that travel started a little bit soft and European spend was a little bit soft, too.

Speaker #5: Got it. And then just secondly, the European ATM footprint. I think I heard you say, Mike, that it's travel started a little bit soft.

Speaker #5: And European spend was a little bit soft too.

Michael J. Brown: Those are the numbers we get from research, is that US to Mexico is a little weaker. Within Europe, it's a little bit weaker, too. They're much more careful. The reality is we are in a global economic slowdown, that just means when people go on vacation, they spend less money.

Mike Brown: Those are the numbers we get from research, is that US to Mexico is a little weaker. Within Europe, it's a little bit weaker, too. They're much more careful. The reality is we are in a global economic slowdown, that just means when people go on vacation, they spend less money.

Speaker #2: Although those are the numbers that those are the numbers we get from research is that US to Mexico is a little weaker. And within Europe, they're very it's a little bit weaker too.

Speaker #2: They're much more careful. I mean, the reality is we are in a global economic slowdown, and that just means when people go on vacation, they spend less money.

Mike Grondahl: Got it. Hey, do you see that continuing through the whole year, or what's kind of your outlook there?

Speaker #5: Got it. And hey, do you see that continuing through the whole year, or what's your outlook there?

Speaker #2: Well, yeah, Mike, we saw a little bit of softness in the second quarter. I don't want to be too bullish on stuff, but we saw a little bit of improvement as we go into the as we go into the third quarter.

Rick Weller: Well, yeah, Mike, we saw a little bit of softness in Q2. I don't want to be too bullish on stuff, we saw a little bit of improvement as we go into Q3. We've read some other market stats that would indicate that there's maybe a little better expectation as the travel season kind of comes to a head in August. I would say my perspective, it would be certainly consistent to improving. I wouldn't say that that improving is rocket improving, but it's a positive.

Speaker #2: We've read some other market stats that would indicate that there's maybe a little better expectation as the travel season kind of comes to a head in August.

Speaker #2: So I would say it would be my perspective it would be a certainly consistent to improving. But I wouldn't I wouldn't say that that improving is rocket improving, but it's a positive.

Speaker #5: Okay. Okay. Thank you.

Mike Grondahl: Okay. Thank you.

Speaker #3: Thank you. Our next question comes from the line of Chris Kennedy from William Blair. Chris, the line is now open.

Operator: Thank you. Our next question comes from the line of Cristopher Kennedy from William Blair. Chris, the line is now open.

Operator: Thank you. Our next question comes from the line of Cris Kennedy from William Blair. Chris, the line is now open.

Speaker #6: Yeah, good morning. Thanks for taking the questions, and I appreciate all the detail. XCE and small business payments are a massive opportunity. Can you just talk about some of the initiatives that you have to capture that market?

Cristopher Kennedy: Yeah. Good morning. Thanks for taking the questions, and appreciate all the detail. XE and small business payments is a massive opportunity. Can you just talk about some of the initiatives that you have to capture that market?

Cris Kennedy: Yeah. Good morning. Thanks for taking the questions, and appreciate all the detail. XE and small business payments is a massive opportunity. Can you just talk about some of the initiatives that you have to capture that market?

Michael J. Brown: You're right. It is exactly that. It is a huge opportunity because the value proposition that XE gives to both individuals and small businesses especially, are the ability to make cross-border payments much more quickly and less expensively than their bank would. We've got a whole plan of investment into XE beginning in H2 of the year. Honestly, I think we're sitting on an asset that we have not done enough with. Because one of the reasons that is a little bit frustrating is we've got the best payout of any company of its ilk in the world. We should be able to do more with this, and that is what we are going to focus on H2 of the year.

Mike Brown: You're right. It is exactly that. It is a huge opportunity because the value proposition that XE gives to both individuals and small businesses especially, are the ability to make cross-border payments much more quickly and less expensively than their bank would. We've got a whole plan of investment into XE beginning in H2 of the year. Honestly, I think we're sitting on an asset that we have not done enough with. Because one of the reasons that is a little bit frustrating is we've got the best payout of any company of its ilk in the world. We should be able to do more with this, and that is what we are going to focus on H2 of the year.

Speaker #2: You're right. It is exactly that. It's a huge opportunity because the value proposition that XCE gives to both individuals and small businesses, especially, are the ability to make cross-border payments much more quickly and less expensively than their bank would.

Speaker #2: And we've got a whole plan of investment into XCE beginning in the second half of the year. And I think we're sitting on honestly, I think we're sitting on an asset that we haven't not done enough with.

Speaker #2: And so we'll try, and because one of the reasons that's a little bit frustrating is we've got the best payout of any company of its ilk in the world.

Speaker #2: And so, we should be able to do more with this, and that's what we're going to focus on in the last half of the year.

Speaker #6: Got it. Thank you for that. And then the core card win with in Peru was very encouraging. Are you seeing that type of setup in other markets where core card is helping you get over the finish line?

Cristopher Kennedy: Got it. Thank you for that. The CoreCard win in Peru was very encouraging. Are you seeing that type of setup in other markets where CoreCard is helping you get over the finish line?

Cris Kennedy: Got it. Thank you for that. The CoreCard win in Peru was very encouraging. Are you seeing that type of setup in other markets where CoreCard is helping you get over the finish line?

Michael J. Brown: Let me tell you this. As I've said in prior calls, we really didn't expect to get a deal closed with CoreCard for 18 months after sale. It was in November or December of last year when we bought it. We have been exceedingly, well, both surprised and happy with the deals that we're signing. We're five, six deals in, with a lot more in the hopper. I think CoreCard's going to be one of our very best acquisitions as it continues to build momentum and reference customers. The key, there are really only two platforms kind of on the planet that are of scale, maybe three. Well, we're the third one. You've got to get references in the market. Once you get references, it's a lot easier to do so.

Mike Brown: Let me tell you this. As I've said in prior calls, we really didn't expect to get a deal closed with CoreCard for 18 months after sale. It was in November or December of last year when we bought it. We have been exceedingly, well, both surprised and happy with the deals that we're signing. We're five, six deals in, with a lot more in the hopper. I think CoreCard's going to be one of our very best acquisitions as it continues to build momentum and reference customers. The key, there are really only two platforms kind of on the planet that are of scale, maybe three. Well, we're the third one. You've got to get references in the market. Once you get references, it's a lot easier to do so.

Speaker #2: Let me tell you, as I've said in prior calls, we really didn't expect to get a deal closed with CoreCard for like 18 months after sale.

Speaker #2: And it was in November or December of last year when we sold, or when we bought it. But we have been exceedingly well, both surprised and happy with the deals that we're signing.

Speaker #2: I mean, we're like five, six deals in, and with a lot more in the hopper. So I think core card is going to be one of our very best acquisitions.

Speaker #2: As it continues to build momentum and reference customers because the key when you have they're really only two platforms kind of on the planet that you could that are of scale, maybe three.

Speaker #2: And well, we're the third one. And so you've got to get references in the market. And then once you get references, then it's a lot easier to do so.

Speaker #2: We really like this one at Unibanca because they're actually a processor for multiple banks. So they'll be using CoreCard. The nine banks they have can set it up however they wish.

Michael J. Brown: We really like this one at Unibanca because they're actually a processor for multiple banks. They'll be using CoreCard and each of the nine banks they have can set it up however they wish, and it gives us a good reference customer in LATAM. That's the key too, is you've got to be able to have a reference customer in the same language. We did those two deals in Ecuador last year for Ren. Between that and the Peru deal, I think we see LATAM as an entire market that's tired of this 40-year-old technology that they've been kind of forced to buy from the United States up to this point.

Mike Brown: We really like this one at Unibanca because they're actually a processor for multiple banks. They'll be using CoreCard and each of the nine banks they have can set it up however they wish, and it gives us a good reference customer in LATAM. That's the key too, is you've got to be able to have a reference customer in the same language. We did those two deals in Ecuador last year for Ren. Between that and the Peru deal, I think we see LATAM as an entire market that's tired of this 40-year-old technology that they've been kind of forced to buy from the United States up to this point.

Speaker #2: And it gives us another gives us a good reference customer in LatAm. And that's the key too is you've got to be able to have a reference customer in the same language.

Speaker #2: Those two deals in Ecuador—excuse me, last year for REN—and between that and the Peru deal, I think we see LatAm as an entire market that's tired of this 40-year-old technology that they've been kind of forced to buy from the United States up to this point.

Speaker #4: Yeah, Chris, I would add that one of the things that we have been very pleased with is to see the let's say the consumer reaction to the broader suite of capability that we offer.

Rick Weller: Yeah, Chris, I would add that one of the things that we have been very pleased with is to see the, let's say, the consumer reaction to the broader suite of capability that we offer. CoreCard is an outstanding product on its own, leading in the industry. Makes for great discussions. When our prospects then hear more about what we have to offer, whether it's in the ATM outsourcing world, whether it's other kind of debit platforms, alternative payment platforms, connectivity to real-time payment, real-time processing, the opportunity to move payments around the world with our businesses like Dandelion. It really then leads to a much richer discussion. I would say that was part of ultimately the winning of the deal in Peru. We had a fantastic product in CoreCard, what really then kind of cemented it was that broader capability that Ren platform brings.

Speaker #4: Core card is an outstanding product on its own, leading in the industry. Makes for great discussions. But then when our prospects then hear more about what we have to offer, whether it's in the ATM outsourcing world, whether it's other kind of debit platforms, alternative payment platforms, connectivity to real-time payment, real-time processing, the opportunity to move payments around the world with our businesses like Dandelion, it really then leads to a much more a much richer discussion.

Speaker #4: And I would say that was part of that was part of ultimately the winning of the deal in Peru. We had a fantastic product in core card and it really what really then kind of cemented it was that broader capability that REN platform brings and it's not just a it's not just a licensable product as you probably noticed in our comment.

Rick Weller: It's not just a licensable product. As you probably noticed in our comment, we're providing that on a SaaS basis, right? It really is becoming a very significant product as an anchor product within that Ren suite. Stay tuned. We've got more to come in the future.

Speaker #4: We're providing that on a SaaS basis, right? So it's it really is becoming a very significant product as an anchor product within that REN suite.

Speaker #4: So stay tuned we've got more to come in the future.

Cristopher Kennedy: Great. Thanks for taking the questions.

Cris Kennedy: Great. Thanks for taking the questions.

Speaker #6: Great. Thanks for taking the questions.

Operator: Thank you. Our next question comes from the line of Vasu Govil from KBW. Vasu, the line is yours.

Speaker #3: Thank you. Our next question comes from the line of Vasu Govil from KBW. Vasu, the line is yours.

Vasu Govil: Hi. Thank you for taking my question. I guess, Mike, my question, first one, just around the revenue expectations for the year. I know at the Investor Day, you guys had outlined approximately 6% growth for the year. It seems like the non-digital accelerators are performing worse, but you're also seeing better trends in the digital accelerators. Net, how should we think about the growth rate and revenues for the year?

Speaker #5: Hi. Thank you for digging my question. I guess Mike, my question first one just around the revenue expectations for the year. I know at the investor day you guys had outlined approximately 6% growth for the year.

Speaker #5: It seems like the non-digital accelerators are performing worse, but you're also seeing better trends in non-digital in the digital accelerators. So net net, how should we think about the growth rate and revenues for the year?

Michael J. Brown: I'll let Rick correct me, but I think we're pretty much unchanged from where we were at the Investor Day.

Mike Brown: I'll let Rick correct me, but I think we're pretty much unchanged from where we were at the Investor Day.

Speaker #2: I'll let Rick correct me, but I think we're pretty much unchanged from where we were at the investor day.

Rick Weller: Yeah.

Speaker #6: Yeah. Yeah.

Speaker #5: Got it, that's helpful. And then, just going back to the question on vehicle US to Europe airline bookings, I was curious if you think some of the weaker bookings are the result of the FIFA World Cup, with more people traveling the reverse—from Europe to the US instead of US to Europe.

Vasu Govil: Got it. That's helpful. Just going back to the question on the weaker US to Europe airline bookings, I was curious if you think some of the weaker bookings is the result of the FIFA World Cup, with more people traveling the reverse from Europe to US instead of US to Europe. If the comment you made that you are seeing some improvement in Q3, could it be related to that? If that's the case, you could see more of a rebound in the H2? Just any thoughts around that.

Speaker #5: And if the comment you made — that you are seeing some improvement in 3G — could it be related to that? And if that's the case, could you see more of a rebound in the back half?

Speaker #5: Just any thoughts around that?

Speaker #4: Yeah, we did see some print out there that said that possibly people directed their vacations towards the U.S. for the World Cup.

Rick Weller: Yeah, we did see some print out there that said that possibly people directed their vacations towards the US for the World Cup. As you can anticipate, when you don't have someone show up at an ATM, you don't necessarily get a response from them that says, "I would have come to your ATM, but I went to the World Cup." It's kind of hard to sort out exactly what it is, but we have seen information that suggests that some European customers, other customers, came to the US for the World Cup. There was also some commentary in some of the articles that suggested that that might be a part of the reason why a little better, more resilient second part of the tourism season they would see in Europe. Yeah, I think it's kind of mixed in there.

Speaker #4: As you can anticipate, when a customer—when you don't have someone show up at an ATM, you don't necessarily get a response from them that says, "I would have come to your ATM, but I went to the World Cup." So, it's kind of hard to sort out exactly what it is, but we have seen information that suggests that some European customers, other customers, came to the US for the World Cup.

Speaker #4: There was also some commentary in some of the articles that suggested that that might be part of the reason why a little better, more resilient second part of the tourism season they would see in they would see in Europe.

Speaker #4: And yeah, so I think it's kind of mixed in there. There was probably some impact from the World Cup, and now that it's over, people may be going more towards the European location rather than the US.

Rick Weller: There was probably some impact from World Cup. Now that it's over, people may be going more towards the European location rather than US.

Michael J. Brown: If you think about it, the airplanes coming from Europe to the US, that would be your return trip of a US traveler if you were decided to go over. Those airplane fares were through the roof during World Cup. Now that that's calmed down, we could see that it's possible that people might do their round trips and their vacations a little later in the season after World Cup is behind them. That's what we're kind of hoping for. The World Cup was inflationary, we'll just put it that way, if you were going to travel.

Speaker #2: And if you think about it, the airplanes coming from Europe to the US—that would be your return trip as a US traveler, if you decided to go over.

Mike Brown: If you think about it, the airplanes coming from Europe to the US, that would be your return trip of a US traveler if you were decided to go over. Those airplane fares were through the roof during World Cup. Now that that's calmed down, we could see that it's possible that people might do their round trips and their vacations a little later in the season after World Cup is behind them. That's what we're kind of hoping for. The World Cup was inflationary, we'll just put it that way, if you were going to travel.

Speaker #2: Those airplane fares were through the roof during the World Cup. Now that that's calmed down, we could see that it's possible that people might do their round trips and their vacations a little later in the season after World Cup is behind them.

Speaker #2: So that's what we're kind of hoping for. But World Cup was inflationary. We'll just put it that way if you were going to travel.

Vasu Govil: That's helpful, color. I guess a quick one, modeling one, Rick, for you. At the Investor Day, I know you guys had outlined the $125 million to $150 million of annual share buybacks. You guys have already reached that range for the year in the H1. Just how are you thinking about buybacks in the H2, and any incremental buybacks incorporated into the earnings outlook? Thank you.

Speaker #5: That's helpful color. And I guess my quick one modeling one, Rick, for you. At the investor day, I know you guys had outlined the 125, the 150 million of annual share buybacks.

Speaker #5: You guys have already reached that range for the year in the first half. Just how are you thinking about buybacks in the back half and any incremental buybacks incorporated into the earnings outlook?

Speaker #5: Thank you.

Speaker #4: Yeah. We don't have any additional numbers incorporated in the outlook there. Really, so but as we said, look, we continue to believe that it's a good use of capital.

Rick Weller: Yeah. We don't have any additional numbers incorporated in the outlook there, really. As we said, look, we continue to believe that it's a good use of capital. We'll continue to maintain a positive view toward how we use our capital to repurchase shares.

Speaker #4: And we'll continue to maintain a positive view toward how we use our capital to repurchase shares.

Speaker #5: Thank you very much.

Vasu Govil: Thank you very much.

Speaker #3: Thank you. Our next question comes from the line of Gus Gala from MCH. Gus, your line is now open.

Operator: Thank you. Our next question comes from the line of Gus Gala from MCH. Gus, your line is now open.

Operator: Thank you. Our next question comes from the line of Gus Galá from MCH. Gus, your line is now open.

Gus Gala: Hi, Mike. Hi, Rick. Thank you for taking my question.

Gus Galá: Hi, Mike. Hi, Rick. Thank you for taking my question.

Speaker #7: Hi, Mike. Hi, Rick. Thank you for taking my question. So I want to dig into money transfer a little bit, kind of get your state of the union on it.

Rick Weller: Hi, Gus.

Gus Gala: I wanted to dig into the money transfer a little bit, kind of get your state of the union on it. Clearly, there's a shift ongoing in the industry towards digital. Just thoughts on how that's accelerating, decelerating. The other interesting topic I've worked in is, are you seeing areas of stress at the smaller scale operators? I think we saw some of that in late 2023 to 2024. Just any read on that, anything to note interesting on promotional pricing, promotional activity that you're seeing across the industry would be helpful. Thanks.

Gus Galá: I wanted to dig into the money transfer a little bit, kind of get your state of the union on it. Clearly, there's a shift ongoing in the industry towards digital. Just thoughts on how that's accelerating, decelerating. The other interesting topic I've worked in is, are you seeing areas of stress at the smaller scale operators? I think we saw some of that in late 2023 to 2024. Just any read on that, anything to note interesting on promotional pricing, promotional activity that you're seeing across the industry would be helpful. Thanks.

Speaker #7: Clearly, there's a mixed shift ongoing in the industry towards digital. Just thoughts on how that's accelerating or decelerating. And the other interesting pocket that we're interested in is: are you seeing areas of stress at the smaller scale operators?

Speaker #7: I think we saw some of that in late '23 to '24. Just any return of that—anything to note, interesting on promotional pricing or promotional activity that you're seeing across the industry would be helpful.

Speaker #7: Thanks.

Rick Weller: Rick, you want to do that? Yeah. More to the latter one out there. We certainly see some stress on some of the smaller scale operators. I think when you see things like this, it's not necessarily discriminatory among operators. At least as we look at it, and we believe that we benefit from it, is that we've got multiple ways of going to the cross-border market. We've got a well-accepted digital product that performed, again, very nicely this quarter. The Dandelion product where we get to a broader share of the market of other people that are covering it, and as we talked there briefly on the XE market there. I think having the digital product really gives us that extra help, especially if it's a customer that doesn't want to pay the 1% remittance tax, excise tax.

Speaker #1: Rick, you want to do that?

Speaker #4: Yeah, more to the latter one out there. Yeah, we certainly see some stress on some of the smaller-scale operators. I think when you see things like this, it's not necessarily discriminatory among operators.

Speaker #4: And so, at least as we look at it, and we believe that we benefit from it, we've got multiple ways of going to the cross-border market.

Speaker #4: We've got a well-accepted digital product that performed, again, very nicely this quarter. The dandelion product where we get to a broader share of the market of other people that are covering it.

Speaker #4: And as we talked briefly on the XE market there, so I think having the digital product really gives us that extra help, especially if it's a let's say it's a customer that doesn't want to pay the 1% remittance tax, excise tax, they can then take advantage of that through the digital platform.

Rick Weller: They can then take advantage of that through the digital platform. We continue to roll out the digital product around the world, where we enjoy the benefit of being around the world rather than just in the United States. We see the combination of having a digital product, and I'd really say three digital products available to go after the market. It's the direct to the customer, the Dandelion product on a wholesale basis, and the XE product to the small to medium-sized business. We also kind of look at it and see that the biggest impacts started happening in Q2 of last year. As we look forward, we also know that the stress declines on a year-over-year basis tapered off as we went throughout the year. That should, let's say, make the comps possibly a little bit easier.

Speaker #4: And we continue to roll out the digital product around the world, where we enjoy the benefit of being global, rather than just in the United States.

Speaker #4: So we see the combination of having digital product and I'd really say three digital products available to go after the market. It's the direct to the customer, the dandelion product on a wholesale basis, and the XE product to the small to medium-sized business.

Speaker #4: So we also kind of look at it and say, and see that the biggest impacts started happening in the second quarter of last year.

Speaker #4: So as we look forward, we also know that the stress declines on a year-over-year basis tapered off as we went throughout the year. And so that should make it a little bit I don't know, let's say make the comps possibly a little bit easier.

Speaker #4: It kind of gets into a little bit more of a normalization, if you will, and then once you kind of get let's say to some type of normalization, then we can get back to seeing the strength of the business and start moving more into the growth mode.

Rick Weller: It kind of gets into a little bit more of a normalization, if you will. Once you kind of get, let's say, to some type of normalization, then we can get back to seeing the strength of the business and start moving more into the growth mode. We're cautiously optimistic that we'll start to see it stabilize a bit more. As Mike said, we saw some signs of that as we went through the quarter. We'll continue to be very motivated to take advantage of our digital product. Yeah, hope that helps. Anything else, glad to help with it.

Speaker #4: So we're cautiously optimistic that we'll start to see it stabilize a bit more, as Mike said. We saw some signs of that as we went through the quarter.

Speaker #4: And we'll continue to be very motivated to take advantage of our digital product. So yeah, hopefully that helps. Anything else, glad to help with it.

Speaker #7: Yeah, I guess I just wanted to—so basically, the thought process is, whatever irrationality we see in pricing elsewhere in the market, we're kind of seeing that here as well.

Gus Gala: Yeah, basically the thought process, whatever irrationality we've seen in pricing elsewhere in the market, kind of seeing that subside. That's all I have. Thank you.

Gus Galá: Yeah, basically the thought process, whatever irrationality we've seen in pricing elsewhere in the market, kind of seeing that subside. That's all I have. Thank you.

Speaker #7: Subside. That's helpful. That's all I have. Thank you.

Speaker #4: All right. Very good.

Rick Weller: All right. Very good.

Speaker #3: Thank you. Our last question comes from the line of Josh Levin from Autonomous Research. Josh, the line is now yours.

Operator: Thank you. Our last question comes from the line of Josh Levin from Autonomous Research. Josh, the line is now yours.

Speaker #6: Good morning, Josh.

Rick Weller: Morning, Josh.

Josh Levin: Thank you. Good morning. Two questions. You called out weakness in remittances due to US immigration policies in Q2. If Mexican central bank data has actually shown growth in inbound remittances in recent months, maybe you could just talk a little bit more about US to Mexico for you. If US to Mexico was down for you, how do we reconcile that with growth in the central bank data? Then just to clarify a previous question, can you get a little more granular what share count underpins the reiterated 10% to 15% adjusted EPS guidance? Thank you.

Speaker #2: Thank you and good morning. Good morning. Two questions. You called out weakness in remittances due to US immigration policies. In the second quarter, and if Mexican central bank data has actually shown growth in inbound remittances in recent months, so maybe you could just talk a little bit more about US to Mexico for you and if US to Mexico was down for you, how do we reconcile that with growth in the central bank data?

Speaker #2: And then just to clarify a previous question, can you get a little more granular, what share count underpins the reiterated 10 to 15 percent adjusted EPS guidance?

Speaker #2: Thank you.

Speaker #4: Yeah. Well, as Mike said, we started seeing a little bit of improvement in the Mexican stuff here. But—and I just have to look at your data—but I don't know that it's growth on a year-over-year basis, because last year to Mexico, I think it was down something like 16 or 17 percent.

Rick Weller: Yeah. Well, as Mike said, we started seeing a little bit of improvement in the Mexico stuff here. I just have to look at your data, but I don't know that it's growth on a year-over-year basis because last year to Mexico, I think it was down something like 16% to 17%. I think it's starting to change direction. It was down significantly and now starting to move in the other direction, which is encouraging. That's on top of 16% down from last year. Right. Then as it relates to our share count, when you look at the share count that's in our adjusted EPS reconciliation, we would expect that that share count will be another, call it four or 500,000 shares less as we go into the rest of the year.

Speaker #4: I think it's starting to change direction. So, it was down significantly and now it's starting to move in the other direction, which is encouraging.

Speaker #6: But that's on top of 16% down from last year.

Mike Brown: That's on top of 16% down from last year.

Speaker #4: Yeah. Right. Well, and then yeah. So and then as it relates to our share count, when you look at the share count that's in our adjusted EPS reconciliation, we would expect that that share count will be another call it 4,500,000 shares less as we go into the rest of the year.

Rick Weller: Right. Then as it relates to our share count, when you look at the share count that's in our adjusted EPS reconciliation, we would expect that that share count will be another, call it four or 500,000 shares less as we go into the rest of the year.

Speaker #2: Thank you very much.

Josh Levin: Thank you very much.

Speaker #6: Hey, operator, if that's the last question, I want to thank everybody for taking their time. And I look forward to talking to you in 90 days or so.

Rick Weller: Okay, operator, if that's the last question, I want to thank everybody for taking their time, and I look forward to talking to you in 90 days or so. Thank you very much.

Speaker #6: Thank you very much.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Q2 2026 Euronet Worldwide Inc Earnings Call

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