What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-05-06 compared with 2023-11-03 · 207 added, 205 removed, 282 unchanged (59% of the section changed)

24 unchanged sentences

Actual results may materially differ from those in the forward-looking statements as a result of various factors, including, but not limited to, conditions in world financial markets and general economic conditions, including impacts from the COVID- 19 or other pandemics;

the war in the Ukraine and the Middle East, and related economic sanctions;

the war in the Ukraine, and related economic sanctions;

military conflicts in the Middle East;

our ability to successfully integrate any acquired operations;

21 unchanged sentences

We operate in the following three segments:

1 ) The EFT Processing Segment processes transactions for a network of 51,496 ATMs and approximately 637,000 POS terminals across Europe, the Middle East, Africa, Asia Pacific, and the United States.

We provide comprehensive electronic payment solutions consisting of ATM cash withdrawal and deposit services, ATM network participation, outsourced ATM and POS management solutions, credit, debit and prepaid card outsourcing, DCC, domestic and international surcharges and other value added services.

Through this segment, we also offer a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems.

2 ) The epay Segment, which provides distribution, processing and collection services for electronic payment products and prepaid mobile airtime through a network of approximately 810,000 POS terminals in Europe, the Middle East, Asia Pacific, North America and South America.

We also provide vouchers and physical gift fulfillment services in Europe.

3 ) The Money Transfer Segment, which provides global consumer-to-consumer money transfer services, primarily under the brand names Ria, IME, AFEX, and xe and global account-to-account money transfer services under the brand name xe.

We offer services under the brand names Ria and IME through a network of sending agents, Company-owned stores, our websites and mobile applications, disbursing money transfers through a worldwide correspondent network that includes approximately 540,000 locations.

xe is a provider of foreign currency exchange information and of fers money transfer services on its currency data websit es.

In addition to money transfers, we also offer customers bill payment services (primarily in the U.S.), payment alternatives such as money orders and prepaid debit cards, comprehensive check cashing services for a wide variety of issued checks, along with competitive foreign currency exchange services and prepaid mobile top-up.

Through our xe brand, we offer cash management solutions and foreign currency risk management services to small-to-medium-sized businesses.

We have six processing centers in Europe, five in Asia Pacific and two in North America.

1 ) The EFT Processing Segment meets the needs of financial institutions and

consumers through Euronet-owned and outsourced ATMs and POS terminals combined

with value added and transaction processing services.

We deploy and operate our

own ATMs, providing ATM services for financial institutions and providing

electronic payment processing solutions.

EFT offers a suite of integrated

electronic financial transaction software solutions for electronic payment and

transaction delivery systems.

Transactions processed span a network of 49,290 active

ATMs and approximately 713,000 POS

2 ) The epay Segment

provides retail payment

solutions and delivers innovative connections between the digital content of

the world’s leading brands and consumers.

epay has one of the largest retail

networks across Europe and Asia for the distribution of physical and digital

third-party content, including branded payments, mobile, and alternative

payments, partnering with 1,000+ of the world’s leading brands.

through our own products, we have leveraged our technology to solve business

challenges, delivering scalable solutions to drive efficiency and

effectiveness.

Our comprehensive range of consumer products simplifies transactions

and provides financial convenience across a wide range of branded payments.

epay operates in 60+ countries.

We operate a network that includes

approximately 808,000 POS terminals that enable electronic processing of

prepaid mobile airtime "top-up" services and other digital media

Money Transfer Segment provides global money

transfers and currency exchange information in retail stores, apps, and

websites through Ria Money Transfer, Xe and the Dandelion cross-border

real-time payments network.

Euronet’s Money Transfer segment offers real-time,

cross-border payments to consumers and businesses across 198 countries and

territories, enabling banks, fintechs and big tech platforms to integrate an

international payments solution into their own platforms.

Ria Money Transfer

offers real-time international money transfers with a special focus on emerging

In addition, Ria offers safe and affordable money transfers through a

global network of cash locations and online, serving over 20 million customers

Xe offers web and app-based currency information and industry-leading

consumer and business cross-border money transfer services.

Customers can send

money, buy property overseas, and execute other international payments via the

Xe website or app.

Dandelion offers consumer and business transaction processing

and fulfillment with alternative payout channels like bank accounts, cash

pick-up and mobile wallets.

Dandelion powers cross-border payments for Xe and

Ria, as well as third party banks, fintechs, and big tech platforms.

We have six processing centers in Europe,seven in Asia Pacific and two in North America.

We have 36 principal offices in Europe, 14 in Asia Pacific, 10 in North America, three in the Middle East, two in South America and one in Africa.

5 unchanged sentences

Each operating segment’s sources of revenues are described below.

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 35% and 30% of total consolidated revenues for the three and nine months ended September 30, 2023 are derived from fees charged for transactions made by cardholders on our proprietary network of ATMs, fixed management fees and transaction fees we charge to customers for operating ATMs and processing debit and credit cards under outsourcing and cross-border acquiring agreements, foreign currency exchange margin on DCC transactions, domestic and international surcharge, foreign currency dispensing and other value added services such as advertising, prepaid telecommunication recharges, bill payment, and money transfers provided over ATMs.

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 25% of total consolidated revenues for the three months ended March 31, 2024 are derived from fees charged for transactions made by cardholders on our proprietary network of ATMs, fixed management fees and transaction fees we charge to customers for operating ATMs and processing debit and credit cards under outsourcing and cross-border acquiring agreements, foreign currency exchange margin on DCC transactions, domestic and international surcharge, foreign currency dispensing and other value added services such as advertising, prepaid telecommunication recharges, bill payment, and money transfers provided over ATMs.

Revenues in this segment are also derived from cardless payment, banknote recycling, tax refund services, license fees, professional services and maintenance fees for proprietary applicati on software and sales of related hardware.

epay Segment — Revenues in the epay Segment, which represented approximately 26% and 28% o f total consolidated revenues for the three and nine months ended September 30, 2023 a re primarily derived from commissions earned from the distribution of electronic content, vouchers, and physical gifts and commissions or processing fees rec eived from mobile phone operators for the processing and distribution of prepaid mobile airtime.

Branded payments, which includes the distribution of digital media content, w ere 66% of epay Segment revenues for both the three and nine months ended September 30, 2023 .

Branded payments include digital content such as music, games and software, as well as, other products including prepaid long distance calling card plans, prepaid Internet plans, prepaid debit cards, gift cards, vouchers, transport payments, lottery payments, bill payment, and money transfer.

Money Transfer Segment — Revenues in the Money Transfer Segment, which represented approximately 39% and 42% of total consolidated revenues for the three and nine months ended September 30, 2023 , respectively, are primarily derived from transaction fees, as well as the margin earned from purchasing foreign currency at wholesale exchange rates and selling the foreign currency to customers at retail exchange rates.

We have a sending network in place comprised of agents, customer service representatives, Company-owned stores, our websites and mobile applications, along with a worldwide network of correspondent agents, consisting primarily of financial institutions in the transfer destination countries.

Sending and correspondent agents each earn fees for cash collection and distribution services, which are recognized as direct operating costs at the time of sale.

epay Segment — Revenues in the epay

Segment, which represented approximately 30% of

total consolidated revenues for the three months

ended March 31, 2024 are primarily

derived from commissions or processing fees received from

mobile phone operators for the processing and distribution of prepaid mobile

airtime and commissions earned from the distribution of other electronic

content, vouchers, and physical gifts.

The proportion of epay Segment revenues

earned from the distribution of prepaid mobile phone time as compared with

other electronic products has decreased over time, and digital media content

now produces approximately 67% of epay Segment revenues.

Other electronic

content offered by this segment includes digital content such as music, games,

and software, as well as other products including prepaid long distance calling

card plans, prepaid Internet plans, prepaid debit cards, gift cards, vouchers,

transport payments, lottery payments, bill payment, and money transfer.

Money Transfer Segment — Revenues in the Money

Transfer Segment, which represented approximately 45% of

total consolidated revenues for the three months

ended March 31, 2024 ,

respectively, are primarily derived from transaction fees, as well as the

margin earned from purchasing foreign currency at wholesale exchange rates

and selling the foreign currency to customers at retail exchange rates.

We have a sending agent network in place comprised of

agents, customer service representatives, Company-owned stores, primarily in

North America, Europe and Malaysia, Ria, and xe branded websites, along with a

worldwide network of correspondent agents, consisting primarily of financial

institutions in the transfer destination countries.

Under the brand

"Dandelion", Ria offers payment processing services to third party

The Dandelion cross-border payments platform provides financial institutions,

fintechs such as digital wallets and banks, and enterprise software companies

access to Euronet's money transfer network through an API connection.

Sending and correspondent agents each earn fees for cash

collection and distribution services, which are recognized as direct operating

costs at the time of sale.

Corporate Services, Eliminations and Other — In addition to operating in our principal operating segments described above, our “Corporate Services, Eliminations and Other” category includes non-operating activity, certain inter-segment eliminations and the cost of providing corporate and other administrative services to the operating segments, including most share-based compensation expense.

10 unchanged sentences

The timing and amount of revenues in the EFT Processing Segment is uncertain and unpredictable due to inherent limitations in managing our estate of ATMs.

Our ATM estate is dependent on contracts that cover large numbers of ATMs, and management is complicated by legal and regulatory considerations of local countries, as well as customers' decisions whether to outsource ATMs or manage them internally.

The EFT Segment is also dependent to a large degree on consumer travel patterns over which we have no control.

Although international travel is returning to pre-pandemic levels in many parts of the globe, the war in Ukraine and the Middle East, and related sanctions are negatively affecting the number of individuals in many locations where we have ATMs .

Our EFT revenues are dependent on tourism within, and into Europe.

Inflation is impacting our business as travelers have less cash available to spend on vacations.

Inflationary pressure may impact our business as travelers have less cash available to spend on vacations.

2 ) The epay Segment opportunities include renewing existing and negotiating new agreements in target markets in which we operate, primarily with digital content providers, mobile operators, financial institutions and retailers.

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SEGMENT SUMMARY RESULTS OF OPERATIONS

Revenues and operating income by segment for the three and nine months ended September 30, 2023 and 2022 are summarized in the tables below:

Revenues and operating income by segment for the three months ended March 31, 2024 and 2023 are summarized in the tables below:

Revenues for the Three Months Ended

September 30,

Year-over-Year Change

Revenues for the Nine Months Ended

September 30,

Year-over-Year Change

(dollar amounts in millions)

Increase (decrease)

EFT Processing

1 unchanged sentence

Corporate services, eliminations and other

Operating Income (Loss) for the Three Months Ended September 30,

Year-over-Year Change

Operating Income (Loss) for the Nine Months Ended September 30,

Operating Income (Loss) for the Three Months Ended March 31,

Year-over-Year Change

2 unchanged sentences

Increase (Decrease)

EFT Processing

11 unchanged sentences

Average Translation Rate

Three Months Ended September 30,

Average Translation Rate

Nine Months Ended September 30,

Three Months Ended March 31,

Currency (dollars per foreign currency)

6 unchanged sentences

New Zealand dollar

COMPARISON OF OPERATING RESULTS FOR THE THREE ANDSIX MONTHS ENDED SEPTEMBER 30 , 2023 AND 2022

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31 , 2024 AND 2023

EFT PROCESSING SEGMENT

The following table summarizes the results of operations for our EFT Processing Segment for the three and nine months ended September 30, 2023 and 2022 :

Three Months Ended September 30,

Year-over-Year Change

Nine Months Ended September 30,

The following table summarizes the results of operations for our EFT Processing Segment for the three months ended March 31, 2024 and 2023 :

Three Months Ended March 31,

Year-over-Year Change

1 unchanged sentence

(Decrease) Percent

Total revenues

7 unchanged sentences

Transactions processed (millions)

Active ATMs as of September 30,

Active ATMs as of March 31,

Average Active ATMs

EFT Processing Segment total revenues were $ 345.8 million for the three months ended September 30, 2023 , an increase of $ 26.3 million or 8 % compared to the same period in 2022 .

EFT Processing Segment total revenues were $ 820.4 million for the nine months ended September 30, 2023 , an increase of $ 106.3 million or 15 %.

EFT Processing Segment total revenues were $ 217.2 million for the three months ended March 31, 2024 , an increase of $ 25.0 million or 13 % compared to the same period in 2023 .

The increase in revenues was primarily due to the increase in domestic and international cash withdrawal transactions resulting from the increase in travel bringing more tourists, the increase in low-value point-of-sale transactions in Europe and low-value payment processing transactions in Asia Pacific.

Fluctuations in foreign currency exchange rates increased revenues by approximately $ 19.3 million and $ 1.2 million for the three and nine months ended September 30, 2023 compared to the same period in 2022 .

Average monthly revenues per ATM increased to $ 2,222 for the three months ended September 30, 2023 compared to $ 2,113 for the same period in 2022 .

Average monthly revenues per ATM increased to $ 1,842 for the nine months ended September 30, 2023 compared to $ 1,668 for the same period in 2022 .

Revenues per transaction decreased to $ 0.15 for the three months ended September 30, 2023 compared to $ 0.18 for the same period in 2022 .

Revenues per transaction decreased to $ 0.13 for the nine months ended September 30, 2023 compared to $ 0.15 for the same period in 2022 .

The increase in average monthly revenues per ATM was primarily due to an increase in POS acquiring transactions in Europe and increases in low value payment processing transactions in India, partially offset by a decrease in our most profitable ATM transactions as European travelers traveling within Europe were negatively impacted by inflation.

The decreases in revenues per transaction were primarily due to the decreases of our most profitable international transactions driven by a decline in Croatia due to the switch from kuna to the euro at the beginning of the year and inflationary pressures on travel budgets in Europe.

Fluctuations in foreign currency exchange rates increased revenues by approximately $1.3 million for the three months ended March 31, 2024 compared to the same period in 2023 .

Direct operating costs

EFT Processing Segment direct operating costs were $ 165.7 million for the three months ended September 30, 2023 , an increase of $ 27.9 million or 20 % compared to the same period in 2022 .

EFT Processing Segment direct operating costs were $ 426.8 million for the nine months ended September 30, 2023 , an increase of $ 71.9 million or 20 % compared to the same period in 2022 .

EFT Processing Segment direct operating costs were $ 131.1 million for the three months ended March 31, 2024 , an increase of $ 12.1 million or 10 % compared to the same period in 2023 .

Direct operating costs primarily consist of site rental fees, cash delivery costs, cash supply costs, maintenance, insurance, telecommunications, payment scheme processing fees, data center operations-related personnel, as well as the processing centers’ facility-related costs and other processing center-related expenses and commissions paid to retail merchants, banks and card processors.

The increase in direct costs was primarily due to the increase in number of ATMs, and an increase in high volume low value cash transactions in Asia Pacific.

Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $9.7 million and $0.3 million for the three and nine months ended September 30, 2023 compared to the same period in 2022 .

Gross profit, which is calculated as revenues less direct operating costs, was $ 180.1 million for the three months ended September 30, 2023 , a decrease of $ 1.6 million or 1 % compared to $ 181.7 million for the same period in 2022 .

Gross profit was $ 393.6 million for the nine months ended September 30, 2023 , an increase of $ 34.4 million or 10 % compared to $ 359.2 million for the same period in 2022.

Gross profit as a percentage of revenues (“gross margin”) decreased to 52.1% and 48.0% for the three and nine months ended September 30, 2023 , compared to 56.9% and 50.3% for the same periods in 2022 .

Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $1.7 million for the three months ended March 31, 2024 compared to the same period in 2023 .

Gross profit, which is calculated as revenues less direct operating costs, was $ 86.1 million for the three months ended March 31, 2024 , an increase of $ 12.9 million or 18 % compared to $ 73.2 million for the same period in 2023 .

Gross profit as a percentage of revenues (“gross margin”) increased to 39.6% for the three months ended March 31, 2024 , compared to 38.1% for the same period in 2023 .

The increase in gross profit was primarily due to the increase in domestic and international cash withdrawal transactions resulting from the increase in travel bringing more tourists, the increase in low-value point-of-sale transactions in Europe and low-value payment processing transactions in Asia Pacific.

Salaries and benefits

Salaries and benefits expenses were $ 35.2 million for the three months ended September 30, 2023 , an increase of $ 5.2 million or 17 % c ompared to the same period in 2022 .

Salaries and benefits expenses were $ 93.5 million for the nine months ended September 30, 2023 , an increase of $ 10.6 million or 13 % c ompared to the same period in 2022 .

Salaries and benefits expenses were $ 31.8 million for the three months ended March 31, 2024 , an increase of $ 4.3 million or 16 % c ompared to the same period in 2023 .

The increase is primarily due to an increase in headcount to support the growth of the business and salary increases due to inflationary pressures.

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $2.1 million for the three months ended September 30, 2023, with no impact for the nine months ended September 30, 2023.

As a percentage of revenues, salary expense increased and decreased, respectively to 10.2 % and 11.4 % for the three and nine months ended September 30, 2023 , compared to 9.4 % and 11.6 % for the same periods in 2022 .

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $0.3 million for the three months ended March 31, 2024 As a percentage of revenues, salary expense increased to 14.6 % for the three months ended March 31, 2024 , compared to 14.3 % for the same period in 2023 .

Selling, general and administrative

Selling, general and administrative expenses were $ 16.2 million for the three months ended September 30, 2023 , an increase of $ 4.0 million or 33 % compared to the same period in 2022 .

Selling, general and administrative expenses were $ 48.9 million for the nine months ended September 30, 2023 , an increase of $ 8.6 million or 21 % compared to the same period in 2022 .

The increase was primarily due to an increase in professional fees.

As a percentage of revenues, these expenses increased to 4.7 % and 6.0 % for the three and nine months ended September 30, 2023 , compared to 3.8 % and 5.6 % for the same periods in 2022 .

Selling, general and administrative expenses were $ 9.2 million for the three months ended March 31, 2024 , a decrease of $ 6.9 million or 43 % compared to the same period in 2023 .

The decrease was primarily due to a decrease in professional fees and the refund of a duty fee.

As a percentage of revenues, these expenses decreased to 4.2 % for the three months ended March 31, 2024 , compared to 8.4 % for the same period in 2023 .

Depreciation and amortization

Depreciation and amortization expenses were $ 23.9 million for the three months ended September 30, 2023 , an increase of $ 0.8 million or 3 % compared to the same period in 2022 .

Depreciation and amortization expenses were $ 70.4 million for the nine months ended September 30, 2023 , a decrease of $ 0.7 million or 1 % compared to the same period in 2022 .

As a percentage of revenues, these expenses decreased to 6.9 % and 8.6 % for the three and nine months ended September 30, 2023 , compared to 7.2 % and 10.0 % for the same periods in 2022 .

Depreciation and amortization expenses were $ 23.6 million for the three months ended March 31, 2024 , an increase of $ 0.9 million or 4 % compared to the same period in 2023 .

As a percentage of revenues, these expenses decreased to 10.9 % for the three months ended March 31, 2024 , compared to 11.8 % for the same period in 2023 .

Operating income

EFT Processing Segment had operating income of $ 104.8 million for the three months ended September 30, 2023 , a decrease of $ 11.6 million or 10 % c ompared to the same period in 2022 .

EFT Processing Segment had operating income of $ 180.8 million for the nine months ended September 30, 2023 , an increase of $ 15.9 million or 10 % compared to the same period in 2022 .

O perating income as a percentage of revenues (“operating margin”) decreased to 30.3 % and 22.0 % for the three and nine months ended September 30, 2023 , compared to 36.4 % and 23.1 % for the same periods in 2022 .

The decrease in operating income and operating margin were the result of decreases in our most profitable international transactions driven by a decline in Croatia due to the switch from kuna to the euro at the beginning of the year and inflationary pressures on travel budgets in Europe, compared to the same periods in 2022 .

The following table presents the results of operations for the three and nine months ended September 30, 2023 and 2022 for our epay Segment:

Three Months Ended September 30,

Year-over-Year Change

Nine Months Ended September 30,

EFT Processing Segment had operating income of $ 21.5 million for the three months ended March 31, 2024 , an increase of $ 14.6 million or 212 % c ompared to the same period in 2023 .

O perating income as a percentage of revenues (“operating margin”) in creased to 9.9 % for the three months ended March 31, 2024 , compared to 3.6 % for the same period in 2023 .

The in crease in operating income was primarily due to a decrease in professional fees and the refund of a duty fee paid and expensed during 2023.

The following table presents the results of operations for the three months ended March 31, 2024 and 2023 for our epay Segment:

Three Months Ended March 31,

Year-over-Year Change

2 unchanged sentences

(Decrease) Percent

Increase (Decrease) Amount

(Decrease) Percent

Total revenues

7 unchanged sentences

Transactions proce ssed (mi llions)

epay Segment total revenues were $ 264.5 million for the three months ended September 30, 2023 , an increase of $ 15.6 million or 6 % compared to the same period in 2022 .

epay Segment total revenues were $ 765.7 million for the nine months ended September 30, 2023 , an increase of $ 53.3 million or 7 % compared to the same period in 2022 .

The increase in revenue for the three months ended September 30, 2023 was driven by continued expansion in mobile and digital branded payments .

Fluctuations in foreign currency exchange rates increased revenue by approximately $ 11.9 million for the three months ended September 30, 2023 , compared to the same period in 2022 .

Fluctuations in foreign currency exchange rates did not impact the nine months ended September 30, 2023.

Revenue per transaction increased to $ 0.29 and $ 0.27 for the three and nine months ended September 30, 2023 , respectively, compared to $ 0.27 and $ 0.25 for the same periods in 2022 .

The increase in revenue per transaction was primarily due to the rise in account activations, coupled with improved margins, reduced costs, and a boost in sales volume, offset by declines in promotional campaigns delivered on behalf of our retail partners that were recognized in the prior year that did not repeat in the third quarter this year.

epay Segment total revenues were $ 257.1 million for the three months ended March 31, 2024 , an increase of $ 19.7 million or 8 % compared to the same period in 2023 .

The increase in revenue for the three months ended March 31, 2024 was driven by continued expansion in mobile and digital branded payments .

Fluctuations in foreign currency exchange rates increased revenue by approximately $1.2 million for the three months ended March 31, 2024 , compared to the same period in 2023 .

Revenue per transaction increased to $ 0.27 for the three months ended March 31, 2024 , compared to $ 0.24 for the same period in 2023 .

Direct operating costs

epay Segment direct operating costs were $ 201.3 million for the three months ended September 30, 2023 , an increase of $ 11.2 million or 6 % compared to the same period in 2022 .

epay Segment direct operating costs were $ 583.6 million for the nine months ended September 30, 2023 , an increase of $ 41.5 million or 8 % compared to the same period in 2022 .

epay Segment direct operating costs were $ 195.1 million for the three months ended March 31, 2024 , an increase of $ 17.0 million or 10 % compared to the same period in 2023.

Direct operating costs primarily consist of the commissions paid to retail merchants for the distribution and sale of prepaid mobile airtime and other prepaid products, expenses incurred to operate POS terminals and the cost of vouchers sold and physical gifts fulfilled.

Foreign currency exchange rates increased direct operating costs by $9.4 million and $0.2 million for the three and nine months ended September 30, 2023 compared to the same periods in 2022 .

Gross profit was $ 63.2 million for the three months ended September 30, 2023 , an increase of $ 4.4 million or 7 % compared to $ 58.8 million for the same period in 2022 .

Gross profit was $ 182.1 million for the nine months ended September 30, 2023 , an increase of $ 11.8 million or 7 % compared to $ 170.3 million for the same period in 2022 .

Gross margin increased and decreased, respectively to 23.9% and 23.8% for the three and nine months ended September 30, 2023 , compared to 23.6% and 23.9% for the same periods in 2022 .

The change in gross profit and gross margin was primarily due to the shift in the mix of transactions processed .

Foreign currency exchange rates increased direct operating costs by $1.2 million for the three months ended March 31, 2024 compared to the same period in 2023 .

The in crease in direct operating costs was the result of increase in business activity and inflationary pressure.

Gross profit was $ 62.0 million for the three months ended March 31, 2024 , an increase of $ 2.7 million or 5 % compared to $ 59.3 million for the same period in 2023 .

Gross margin decreased to 24.1% for the three months ended March 31, 2024 , compared to 25.0% for the same period in 2023 .

The changes in gross profit and gross margin were primarily due to the shift in the mix of transactions processed .

Salaries and benefits

Salaries and benefits expenses were $ 23.4 million for the three months ended September 30, 2023 , an increase of $ 3.6 million or 18 % compared to the same period in 2022 .

Salaries and benefits expenses were $ 66.8 million for the nine months ended September 30, 2023 , an increase of $ 7.0 million or 12 % compared to the same period in 2022 .

Salaries and benefits expenses were $ 24.1 million for the three months ended March 31, 2024 , an increase of $ 2.7 million or 13 % compared to the same period in 2023 .

The fluctuations in salaries and benefits were driven by an increase in headcount to support the growth of the business and salary increases due to inflationary pressures.

As a percentage of revenues, these expenses increased to 8.8 % and 8.7 %, respectively, for the three and nine months ended September 30, 2023 , compared to 8.0 % and 8.4 % for the same periods in 2022 .

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $1.1 million for the three months ended September 30, 2023 as compared to the same period in 2022.

Fluctuations in foreign currency exchange rates did not impact the nine months ended September 30, 2023, as compared to the same period in 2022.

As a percentage of revenues, these expenses increased to 9.4 % for the three months ended March 31, 2024 , compared to 9.0 % for the same period in 2023 .

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $0.2 million for the three months ended March 31, 2024 as compared to the same period in 2023 .

Selling, general and administrative

Selling, general and administrative expenses were $ 9.7 million for the three months ended September 30, 2023 , an increase of $ 1.2 million or 14 % compared to the same period in 2022 .

Selling, general and administrative expenses were $ 27.6 million for the nine months ended September 30, 2023 , an increase of $ 1.4 million or 5 % compared to the same periods in 2022 .

As a percentage of revenues, these expenses increased and decreased, respectively to 3.7 % and 3.6 % for the three and nine months ended September 30, 2023 , compared to 3.4 % and 3.7 % for the same periods in 2022 .

Selling, general and administrative expenses were $ 9.6 million for the three months ended March 31, 2024 , an increase of $ 0.8 million or 9 % compared to the same period in 2023 .

As a percentage of revenues, these expenses were 3.7 % for both the three months ended March 31, 2024 , compared to the same period in 2023 .

Depreciation and amortization

Depreciation and amortization expenses were $ 1.8 million for the three months ended September 30, 2023 , an increase of $ 0.4 million or 29 % compared to the same period in 2022 .

Depreciation and amortization expenses were $ 5.1 million for the nine months ended September 30, 2023, an increase of $0.4 million compared to the same period in 2022 .

Depreciation and amortization expenses were $ 1.7 million for the three months ended March 31, 2024 , an increase of $ 0.1 million or 6 % compared to the same period in 2023 .

Depreciation and amortization expense primarily represents depreciation of POS terminals we install in retail stores and amortization of acquired intangible assets.

As a percentage of revenues, these expenses were 0.7 % and 0.7 % for the three and nine months ended September 30, 2023 , respectively, compared to 0.6 % and 0.7 % for the same periods in 2022 .

As a percentage of revenues, these expenses were 0.7 % for both the three months ended March 31, 2024 , and for the same period in 2023 .

Operating income

epay Segment operating income was $ 28.3 million for the three months ended September 30, 2023 , a decrease of $ 0.8 million or 3 % compared to the same period in 2022 .

epay Segment operating income was $ 82.6 million for the nine months ended September 30, 2023 , an increase of $ 3.0 million or 4 % c ompared to the same period in 2022 .

Operating margin decreased to 10.7 % and 10.8 % for the three and nine months ended September 30, 2023 , compared to 11.7 % and 11.2 % for the same periods in 2022 .

Operating income per transaction was $ 0.03 f or both the three and nine m onths ended September 30, 2023 compared to $ 0.03 for both the same periods in 2022 .

Changes in operating income and operating margin for the three and nine months ended September 30, 2023 compared to the same periods in 2022 were primarily due to the shift in the mix of transactions processed and a decline in the promotional campaign activity this quarter compared to the same period last year.

epay Segment operating income was $ 26.6 million for the three months ended March 31, 2024 , a decrease of $ 0.9 million or 3 % compared to the same period in 2023 .

Operating margin decreased to 10.3 % for the three months ended March 31, 2024 , compared to 11.6 % for the same period in 2023 .

Operating income per transaction was $ 0.03 f or both the three m onths ended March 31, 2024 and the same period in 2023 .

Changes in operating income and operating margin for the three months ended March 31, 2024 compared to the same period in 2023 were primarily due to the shift in the mix of transactions processed and a decline in the promotional campaign activity this quarter compared to the same period last year.

MONEY TRANSFER SEGMENT

The following table presents the results of operations for the three and nine months ended September 30, 2023 and 2022 for the Money Transfer Segment:

Three Months Ended September 30,

Year-over-Year Change

Nine Months Ended September 30,

The following table presents the results of operations for the three months ended March 31, 2024 and 2023 for the Money Transfer Segment:

Three Months Ended March 31,

Year-over-Year Change

2 unchanged sentences

(Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

Total revenues

7 unchanged sentences

Transactions processed (millions)

Money Transfer Segment total revenues were $ 395.9 million for the three months ended September 30, 2023 , an increase of $ 31.0 million or 8 % compared to the same period in 2022 .

Money Transfer Segment total revenues were $ 1,150.1 million for the nine months ended September 30, 2023 , an increase of $ 77.7 million or 7 % compared to the same period in 2022 .

Money Transfer Segment total revenues were $ 384.6 million for the three months ended March 31, 2024 , an increase of $ 25.2 million or 7 % compared to the same period in 2023 .

The increase in revenues was primarily due to an increase in international-originated money transfers, U.S.

1 unchanged sentence

domestic transactions.

Revenues per transaction decreased to $ 9.75 and $ 9.65 for the three and nine months ended September 30, 2023 , compared to $ 9.68 and $ 9.88 for the same period in 2022 due to a shift in the mix of transactions processed.

Fluctuations in foreign currency exchange rates increased revenues by approximately $ 10.8 million for the three months ended September 30, 2023 , compared to the same period in 2022 .

Fluctuations in foreign currency exchange rates did not impact the nine months ended September 30, 2023, compared to the same period in 2022.

Revenues per transaction decreased to $ 9.47 for the three months ended March 31, 2024 , compared to $ 9.57 for the same period in 2023 due to a shift in the mix of transactions processed.

Direct operating costs

Money Transfer Segment direct operating costs were $ 211.9 million for the three months ended September 30, 2023 , an increase of 11.8 million or 6 % c ompared to the same period in 2022 .

Money Transfer Segment direct operating costs were $ 621.9 million for the nine months ended September 30, 2023 , an increase of $ 28.3 million or 5 % compared to the same period in 2022 .

Money Transfer Segment direct operating costs were $ 209.4 million for the three months ended March 31, 2024 , an increase of 13.1 million or 7 % c ompared to the same period in 2023 .

Direct operating costs primarily consist of commissions paid to agents who originate money transfers on our behalf and correspondent agents who disburse funds to the customers’ destination beneficiaries, together with less significant costs, such as bank depository fees.

1 unchanged sentence

outbound money transfer transactions.

Gross profit was $ 184.0 million for the three months ended September 30, 2023 , an increase of $ 19.2 million or 12 % compared to $ 164.8 million for the same period in 2022 .

Gross profit was $ 528.2 million for the nine months ended September 30, 2023 , an increase of $ 49.4 million or 10 % compared to $ 478.8 million for the same period in 2022 .

Gross margin increased to 46.5% and 45.9% for the three and nine months ended September 30, 2023 , compared to 45.2% and 44.6% for the same periods in 2022 .

The increase in gross profit and gross margin was primarily due t.

o increases in international-originated money transfers, U.S.

Gross profit was $ 175.2 million for the three months ended March 31, 2024 , an increase of $ 12.1 million or 7 % compared to $ 163.1 million for the same period in 2023 .

Gross margin increased to 45.6% for the three months ended March 31, 2024 , compared to 45.4% for the same period in 2023 .

The increase in gross profit and gross margin was primarily due t o increases in international-originated money transfers, U.S.

outbound transactions and direct-to-consumer digital transactions.

Salaries and benefits

Salaries and benefits expenses were $ 77.6 million for the three months ended September 30, 2023 , an increase of $ 8.0 million or 11 % compared to the same period in 2022 .

Salaries and benefits expenses were $ 230.4 million for the nine months ended September 30, 2023 , an increase of $ 25.5 million or 12 % compared to the same period in 2022 .

Salaries and benefits expenses were $ 80.7 million for the three months ended March 31, 2024 , an increase of $ 6.4 million or 9 % compared to the same period in 2023 .

The increase in salaries and benefits was primarily driven by an increase in headcount to support the growth of the business and salary increases due to inflationary pressures.

As a percentage of revenues, these expenses increased to 19.6 % and 20.0 % for the three and nine months ended September 30, 2023 , compared to 19.1 % and 19.1 %, for the same periods in 2022 .

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $2.0 million for the three months ended September 30, 2023, as compared to the same period in 2022.

Fluctuations in foreign currency exchange rates did not impact the nine months ended September 30, 2023, compared to the same period in 2022.

As a percentage of revenues, these expenses increased to 21.0 % for the three months ended March 31, 2024 , compared to 20.7 %, for the same period in 2023 .

Selling, general and administrative

Selling, general and administrative expenses were $ 45.7 million for the three months ended September 30, 2023 , a decrease of $ 0.6 million or 1 % compared to the same period in 2022 .

Selling, general and administrative expenses were $ 140.7 million for the nine months ended September 30, 2023 , an increase of $ 7.1 million or 5 % compared to the same period in 2022 .

As a percentage of revenues, these expenses decreased to 11.5 % and 12.2 % for the three and nine months ended September 30, 2023 , compared to 12.7 % and 12.5 % for the same periods in 2022 .

Selling, general and administrative expenses were $ 50.0 million for the three months ended March 31, 2024 , an increase of $ 2.3 million or 5 % compared to the same period in 2023 .

As a percentage of revenues, these expenses decreased to 13.0 % for the three months ended March 31, 2024 , compared to 13.3 % for the same period in 2023 .

Depreciation and amortization

Depreciation and amortization expenses were $ 7.0 million for the three months ended September 30, 2023 , a decrease of $ 1.2 million or 15 % compared to the same period in 2022 .

Depreciation and amortization expenses were $ 23.6 million for the nine months ended September 30, 2023 , a decrease of $ 2.1 million or 8 % compared to the same period in 2022 .

Depreciation and amortization expenses were $ 7.3 million for the three months ended March 31, 2024 , a decrease of $ 1.2 million or 14 % compared to the same period in 2023 .

Depreciation and amortization expense primarily represents amortization of acquired intangible assets and depreciation of money transfer terminals, computers and software, leasehold improvements and office equipment.

As a percentage of revenues, these expenses decreased to 1.8 % and 2.1 % for the three and nine months ended September 30, 2023 , compared to 2.2 % and 2.4 % for the same periods in 2022 .

As a percentage of revenues, these expenses decreased to 1.9 % for the three months ended March 31, 2024 , compared to 2.4 % f or the same period in 2023 .

Operating income

Money Transfer Segment operating income was $ 53.7 million for the three months ended September 30, 2023 , an increase of $ 13.0 million or 32 % compared to the same period in 2022 .

Money Transfer Segment operating income was $ 133.5 million for the nine months ended September 30, 2023 , an increase of $ 18.9 million or 16 % compared to the same period in 2022 .

Operating margin increased to 13.6 % and 11.6 % for the three and nine months ended September 30, 2023 , compared to 11.2 % and 10.7 % for the same periods in 2022 .

Operating income per transaction increased to $ 1.32 and $ 1.12 , respectively, for the three and nine months ended September 30, 2023 , compared to $ 1.08 and $ 1.06 for the same period in 2022 due to a shift in the mix of transactions processed .

Money Transfer Segment operating income was $ 37.2 million for the three months ended March 31, 2024 , an increase of $ 4.6 million or 14 % compared to the same period in 2023 .

Operating margin increased to 9.7 % for the three months ended March 31, 2024 , compared to 9.1 % for the same period in 2023 .

Operating income per transaction increased to $ 0.92 , for the three months ended March 31, 2024 , compared to $ 0.87 for the same period in 2023 .

We improved our operating income and operating margin due to effective cost management.

CORPORATE SERVICES

The following table presents the operating expenses for the three and nine months ended September 30, 2023 and 2022 for Corporate Services:

Three Months Ended September 30,

Year-over-Year Change

Nine Months Ended September 30,

The following table presents the operating expenses for the three months ended March 31, 2024 and 2023 for Corporate Services:

Three Months Ended March 31,

Year-over-Year Change

2 unchanged sentences

Increase (Decrease)

Salaries and benefits

3 unchanged sentences

Corporate operating expenses

Total Corporate operating expenses were $ 19.8 million and $ 61.7 million for the three and nine months ended September 30, 2023 , an increase of $ 2.1 million or 12 % and $ 8.9 million or 17 % compared to the same periods in 2022 .

The increase is primarily due to an increase in long-term and short-term incentive compensation expense for the three and nine months ended September 30, 2023 , compared to the same periods in 2022 , due to improved company performance.

Total Corporate operating expenses were $ 21.3 million for the three months ended March 31, 2024 , a decrease of $ 0.1 million c ompared to the same period in 2023 .

OTHER EXPENSE, NET

Three Months Ended September 30,

Year-over-Year Change

Nine Months Ended September 30,

Three Months Ended March 31,

Year-over-Year Change

2 unchanged sentences

(Decrease) Percent

Increase (Decrease) Amount

(Decrease) Percent

Interest income

Interest expense

Foreign currency exchange gain (loss), net

Foreign currency exchange loss, net

Other gains (losses)

1 unchanged sentence

Interest income

Interest income was $ 4.0 million for the three months ended September 30, 2023 , an increase of $ 3.4 million or 567 % compared to the same period in 2022 .

Interest income was $ 10.1 million for the nine months ended September 30, 2023 , an increase of $ 9.2 million or 1,022 % compared to the same period in 2022 .

Interest income was $ 5.7 million for the three months ended March 31, 2024 , an increase of $ 3.1 million or 119 % compared to the same period in 2023 .

This increase was driven by an increase in interest rates on our interest bearing bank accounts.

Interest expense

Interest expense was $ 15.0 million for the three months ended September 30, 2023 , an increase of $ 3.3 million or 28 % compared to the same period in 2022 .

Interest expense was $ 39.1 million for the nine months ended September 30, 2023 , an increase of $ 12.5 million or 47 % compared to the same period in 2022 .

This increase was driven by an increase in interest rates on our Credit Facility and uncommitted credit facilities.

Interest expense was $ 14.9 million for the three months ended March 31, 2024 , an increase of $ 4.8 million or 48 % compared to the same period in 2023 .

This increase was driven by an increase in interest rates on our Credit Facility and uncommitted credit facility.

Foreign currency exchange loss, net

2 unchanged sentences

Foreign currency exchange gains and losses that result from remeasurement of these assets and liabilities are recorded in net income.

We recorded net foreign currency exchange losses of $ 8.8 million and $ 3.6 million for the three and nine months ended September 30, 2023 , compared to net foreign currency exchange losses of $ 15.8 million and $ 36.0 million for the same periods in 2022 .

We recorded net foreign currency exchange losses of $ 12.5 million for the three months ended March 31, 2024 , compared to net foreign currency exchange losses of $ 1.1 million for the same period in 2023 .

These realized and unrealized foreign currency exchange losses reflect the fluctuation in the value of the U.S.

dollar against the currencies of the countries in which we operated during the respective periods.

dollar against the currencies of the countries in which we operated during the respective period.

INCOME TAX EXPENSE

The Company's effective income tax rate was 29.2% and 30.6% for the three and nine months ended September 30, 2023 , compared to 31.1% and 33.5% for the same periods ended September 30, 2022 .

The Company's effective income tax rate for the three and nine months ended September 30, 2023 was higher than the applicable statutory income tax rate of 21% as a result of certain foreign earnings being subject to higher local statutory tax rates and the Company’s U.S.

The Company's effective income tax rate was 37.9% for the three months ended March 31, 2024 , compared to 46.5% for the same period ended March 31, 2023 .

The Company's effective income tax rate for the three months ended March 31, 2024 was higher than the applicable statutory income tax rate of 21% as a result of certain foreign earnings being subject to higher local statutory tax rates and the Company’s U.S.

deferred tax activity.

8 unchanged sentences

NET INCOME (LOSS) ATTRIBUTABLE TO EURONET

Net income attributable to Euronet was $ 104.2 million for the three months ended September 30, 2023 , an increase of $ 6.4 million or 7 % compared to t he same period in 2022 .

The increase in net income was primarily attributable to the $ 72.7 million increase in revenues, across all of our three segments, largely driven by successful business operations.

Net income attributable to Euronet was $ 26.2 million for the three months ended March 31, 2024 , an increase of $ 6.1 million or 30 % compared to t he same period in 2023 .

The increase in net income was primarily attributable to the $ 69.8 million increase in revenues, largely driven by successful business operations.

The increased revenues led to a $ 27.7 million increase in gross profit.

The increase in gross profit was partially offset by a $19.2 million increase in salaries and benefits expense in the Money Transfer segment.

Net income attributable to Euronet was $ 210.4 million for the nine months ended September 30, 2023 , an increase of $ 47.1 million or 29 % compared to t he same period in 2022 .

The increase in net income was primarily attributable to the $ 237.2 million increase in revenues, across all of our three segments, largely driven by successful business operations.

T he increased revenues led to a $ 95.7 million increase in gross profit.

The increase in gross profit was partially offset by a $ 52.4 million increase in salaries and benefits expense.

The increase in gross profit was partially offset by a $ 12.8 million increase in salaries and benefits expense and increase in foreign exchange currency loss of $11.4.

LIQUIDITY AND CAPITAL RESOURCES

Working capital

As of September 30, 2023 , we had working capital of $ 967.6 million , which is calculated as the difference between total current assets and total current liabilities, compared to working capital of $ 1,372.6 million as of December 31, 2022 .

The decrease in working capital was primarily due to the repurchase of shares.

Our ratio of current assets to current liabilities was 1.38 and 1.58 at September 30, 2023 and December 31, 2022 , respectively.

As of March 31, 2024 , we had working capital of $ 970.7 million , which is calculated as the difference between total current assets and total current liabilities, compared to working capital of $ 1,462.1 million as of December 31, 2023 .

The decrease in working capital was primarily due to the net effect of the classification of the convertible debt to current liabilities, positive operational results, the Infinitium acquisition completed during the quarter and working capital changes.

Our ratio of current assets to current liabilities was 1.33 and 1.54 at March 31, 2024 and December 31, 2023 , respectively.

We require substantial working capital to finance operations.

5 unchanged sentences

However, in certain countries, we fund the cash required to operate our ATM network from borrowings under our revolving credit facilities, uncommitted credit agreements and cash flows from operations.

As of September 30, 2023 , we had $ 603.5 million of our own cash in use or designated for use in our ATM network, which is recorded in ATM cash on Euronet's Consolidated Balance Sheet.

ATM cash increased $ 87.9 million from $ 515.6 million as of December 31, 2022 to $ 603.5 million as of September 30, 2023 as a result of the increase in number of active ATMs as of September 30, 2023 compared to December 31, 2022 .

The Company has $ 1,074.4 million of unrestricted cash as of September 30, 2023 compared to $ 1,131.2 million as of December 31, 2022 .

Including the $ 603.5 million of cash in ATMs at September 30, 2023 , we have access to $ 2,043.3 million in available cash, and $ 1,080.2 million available under the Credit Facility with no significant long-term debt principal payments until March 2025.

The following table identifies cash and cash equivalents provided by/(used in) our operating, investing and financing activities for the nine months ended September 30, 2023 and 2022 (in millions):

Nine Months Ended September 30,

As of March 31, 2024 , we had $ 599.7 million of our own cash in use or designated for use in our ATM network, which is recorded in ATM cash on Euronet's Consolidated Balance Sheet.

ATM cash increased $ 74.5 million from $ 525.2 million as of December 31, 2023 to $ 599.7 million as of March 31, 2024 as a result of the increase in number of active ATMs as of March 31, 2024 compared to December 31, 2023 .

The Company has $ 1,236.2 million of unrestricted cash as of March 31, 2024 compared to $ 1,254.2 million as of December 31, 2023 .

Including the $ 599.7 million of cash in ATMs at March 31, 2024 , we have access to $ 2,214.3 million in available cash, and $ 579.0 million available under the Credit Facility with no significant long-term debt principal payments until March 2025.

The following table identifies cash and cash equivalents provided by/(used in) our operating, investing and financing activities for the three months ended March 31, 2024 and 2023 (in millions):

Three Months Ended March 31,

Cash and cash equivalents and restricted cash provided by (used in):

3 unchanged sentences

Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash

Increase/(decrease) in cash and cash equivalents and restricted cash

Decrease in cash and cash equivalents and restricted cash

Operating activity cash flow

Cash flows provided by operating activities were $ 507.4 million f or the nine months ended September 30, 2023 compared to cash flows provided by operating activities of $ 448.7 million for the same period in 2022 .

The increase in operating cash flows was primarily due to an increase in net income and a decrease in foreign exchange loss.

Cash flows provided by operating activities were $ 30.0 million f or the three months ended March 31, 2024 compared to cash flows provided by operating activities of $ 3.3 million for the same period in 2023 .

The net increase in operating cash flows was primarily due to an increase in net i ncome, the effect of exchange rates on balance sheet positions in foreign currencies and other working capital fluctuations.

Investing activity cash flow

Cash flows used in investing activities were $ 74.6 million for the nine months ended September 30, 2023 compared to $ 416.1 million for the same period in 2022 .

The decrease in cash used in investing activities is primarily due to the $331.0 million of cash paid at the closing of PBMA in March 2022.

Additionally, w e used $ 69.1 million for purchases of property and equipment for the nine months ended September 30, 2023 compared to $ 79.4 million for the same period in 2022 .

Cash flows used in investing activities were $ 96.8 million for the three months ended March 31, 2024 compared to $ 18.1 million for the same period in 2023 .

The increase in cash used in investing activities is primarily due to the $70.0 million of cash paid for the acquisition of Infinitium.

Additionally, w e used $ 23.8 million for purchases of property and equipment for the three months ended March 31, 2024 compared to $ 18.6 million for the same period in 2023 .

Financing activity cash flow

Cash flows used by financing activities were $ 208.3 million for the nine months ended September 30, 2023 compared to cash flows provided by financing activities of $ 173.5 million for the same period in 2022 .

Our borrowing activities on the Credit Facility for the nine months ended September 30, 2023 consisted of net borrowings of $ 116.2 million compared to net borrowings of $ 342.9 million for the same period in 2022 .

The decrease in net borrowings on the Credit Facility, during the nine months ended September 30, 2023 , is primarily the result of decreased funding requirements for acquisitions.

We repurchased $ 325.4 million of common stock during the nine months ended September 30, 2023 compared to $ 175.3 million of repurchases during the same period of 2022 .

We received proceeds of $ 3.1 million and $ 4.4 million during the nine months ended September 30, 2023 and 2022 , respectively, for the issuance of stock in connection with our Stock Incentive Plan.

Cash flows used by financing activities were $ 81.3 million for the three months ended March 31, 2024 compared to cash flows provided by financing activities of $ 4.4 million for the same period in 2023 .

Our borrowing activities on the Credit Facility for the three months ended March 31, 2024 consisted of net borrowings of $ 82.6 million compared to net borrowings of $ 24.3 million for the same period in 2023 .

The increase in net borrowings on the Credit Facility, during the three months ended March 31, 2024 , i s primarily the result of c ash placed in ATMs reactivated in anticipation of the travel season and cash used to complete the acquisition of Infinitium.

We received proceeds of $ 1.4 million and $ 1.0 million during the three months ended March 31, 2024 and 2023 , respectively, for the issuance of stock in connection with our Stock Incentive Plan.

Effect of exchange rates on cash, cash equivalents and restricted cash

Fluctuations in f oreign currency exchange rates for the nine months ended September 30, 2023 and 2022 had a negative impact of $ 172.0 million and $ 413.7 million, respectively, on cash, cash equivalents, and restricted cash.

The negative impact on cash, cash equivalents, and restricted cash for the nine months ended September 30, 2023 and 2022 was due primarily to the negative impact in the exchange rate of the U.S.

Fluctuations in f oreign currency exchange rates for the three months ended March 31, 2024 and 2023 had a negative impact of $ 47.2 million and $ 33.9 million, respectively, on cash, cash equivalents, and restricted cash.

The negative impact on cash, cash equivalents, and restricted cash for the three months ended March 31, 2024 and 2023 was due primarily to the negative impact in the exchange rate of the U.S.

dollar to the euro.

7 unchanged sentences

The applicable margin for borrowings under the credit facility, based on the Company's current credit rating is 1.25 % including the facility fee.

As of September 30, 2023 , we had $ 113.5 million of borrowings and $ 56.3 million of stand-by letters of credit outstanding under the Credit Facility.

As of March 31, 2024 , we had $ 619.5 million of borrowings and $ 51.5 million of stand-by letters of credit outstanding under the Credit Facility.

The remaining $ 579.0 million under the Credit Facility was available for borrowing.

7 unchanged sentences

The Senior Notes accrue interest at a rate of 1.375 % per year, payable annually in arrears on May 22 of each year, until maturity or earlier redemption.

As of September 30, 2023 , we have outstanding € 600 million ( $ 634.2 million ) principal amount of the Senior Notes.

As of March 31, 2024 , we have outstanding € 600.0 million ( $ 646.9 million ) principal amount of the Senior Notes.

In addition, we may redeem some or all of these notes on or after February 22, 2026 at their principal amount plus any accrued and unpaid interest.

Uncommitted Credit Agreements - On June 27, 2023, the Company entered into an Uncommitted Credit Agreement for $300 million, fully drawn and outstanding at September 30, 2023, for the sole purpose of providing vault cash for ATMs, which expires no later than November 30, 2023.

The loan bears interest at the rate per annum equal to the secured overnight financing rate (“SOFR”) plus 1.125% .

On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $150 million, fully drawn and outstanding at September 30, 2023, for the sole purpose of providing vault cash for ATMs, that expires no later than June 21, 2024.

The loan is a Prime rate loan, a Bloomberg Short-term Bank Yield ("BSBY") rate loan plus 0.95% or bears interest at the rate agreed to by the Bank and the Company at the time such loan is made.

Uncommitted Credit Agreements - On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $ 150 million, fully drawn and outstanding at March 31, 2024 , for the sole purpose of providing vault cash for ATMs, that expires no later than June 21, 2024.

The loan is a Prime rate loan, Bloomberg Short-term Bank Yield ("BSBY") rate loan plus 0.95 % or bears interest at the rate agreed to by the Bank and the Company at the time such loan is made.

The weighted-average interest rate from the loan inception date to March 31, 2024 was 6.31 %.

Other debt obligations — Certain of our subsidiaries have available credit lines and overdraft facilities to generally supplement short-term working capital requirements, when necessary.

There was $ 0.2 million outstanding under these other obligation arrangements as of both September 30, 2023 and December 31, 2022 .

There was $ 0.2 million outstanding under these other obligation arrangements as of March 31, 2024 .

Other uses of capital

Capital expenditures and needs - Total capital expenditures for the nine months ended September 30, 2023 were $ 69.1 million .

Capital expenditures and needs - Total capital expenditures for the three months ended March 31, 2024 were $ 23.8 million .

These capital expenditures were primarily for the purchase and installation of ATMs in key under-penetrated markets, the purchase of POS terminals for the epay and Money Transfer Segments, and office, data center and company store computer equipment and software.

13 unchanged sentences

Our liability under such indemnification provisions may be subject to time and materiality limitations, monetary caps and other conditions and defenses.

As of September 30, 2023 , there were no material changes from the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2022 .

To date, we are not aware of any significant claims made by the indemnified parties or parties to whom we have provided guarantees on behalf of our subsidiaries and, accordingly, no liabilities have been recorded as of September 30, 2023 .

As of March 31, 2024 , there were no material changes from the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2023 .

See also Note 15, Commitments, to the unaudited consolidated financial statements included elsewhere in this report.

CONTRACTUAL OBLIGATIONS

As of September 30, 2023 , there have been no material changes outside the ordinary course of business in our future contractual obligations from the amounts reported within our Annual Report on Form 10-K for the year ended December 31, 2022 .

As of March 31, 2024 , there have been no material changes outside the ordinary course of business in our future contractual obligations from the amounts reported within our Annual Report on Form 10-K for the year ended December 31, 2023 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis