What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-05-07 compared with 2024-11-04 · 193 added, 222 removed, 274 unchanged (60% of the section changed)

23 unchanged sentences

Investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties.

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 related economic sanctions;

Euronet's actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including:

conditions in world financial markets and general economic conditions, including impacts from pandemics;

the war in the Ukraine and the related economic sanctions;

military conflicts in the Middle East;

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changes in fees payable for transactions performed for cards bearing international logos or over switching networks such as card transactions on ATMs;

our ability to comply with increasingly stringent regulatory requirements, including anti-money laundering, anti-terrorism, anti-bribery, sanctions, consumer and data protection and privacy and the European Union's General Data Protection Regulation, and Second Revised Payment Service Directive requirements;

changes in laws and regulations affecting our business, including tax and immigration laws and any laws regulating payments, including Dynamic Currency Conversion (DCC) transactions ;

our ability to comply with increasingly stringent regulatory requirements, including anti-money laundering, anti-terrorism, anti-bribery, consumer and data protection and privacy;

changes in laws and regulations affecting our business, including tax and immigration laws and any laws regulating payments, including dynamic currency conversion transactions;

changes in our relationships with, or in fees charged by, our business partners;

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the cost of borrowing (including fluctuations in interest rates), availability of credit and terms of and compliance with debt covenants;

and renewal of sources of funding as they expire and the availability of replacement funding and those factors referred to above and as set forth and more fully described in Part I, Item 1 A — Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023 .

Our Annual Report on Form 10-K is available on the SEC's EDGAR website at www.sec.gov, and copies may also be obtained by contacting the Company.

and renewal of sources of funding as they expire and the availability of replacement funding.

These risks and other risks are described in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Copies of these filings may be obtained via the SEC's Edgar website or by contacting the Company.

Any forward-looking statements made in this Form 10-Q speak only as of the date of this report.

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EFT offers a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems.

Transactions processed span a network of 54,020 active ATMs and approximately 949,000 POS terminals .

Transactions processed span a network of 55,512 installed ATMs and approximately 1,214,000 POS terminals .

2 ) The epay Segment provides retail payment solutions and delivers innovative connections between the digital content of the world’s leading brands and consumers.

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

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 34% and 31% of total consolidated revenues for the three and nine months ended September 30, 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.

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 25% of total consolidated revenues for the three months ended March 31, 2025 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 27% of total consolidated revenues for the three and nine months ended September 30, 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 66% 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 40% and 42% of total consolidated revenues for the three and nine months ended September 30, 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.

epay Segment — Revenues in the epay Segment, which represented approximately 29% of total consolidated revenues for the three months ended March 31, 2025 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 has decreased over time, and digital media content now produces approximately 71 % of epay Segment revenues.

Digital media 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 46% of total consolidated revenues for the three months ended March 31, 2025 , 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.

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SEGMENT SUMMARY RESULTS OF OPERATIONS

Revenues and operating income by segment for the three and nine months ended September 30, 2024 and 2023 are summarized in the tables below:

Revenues and operating income by segment for the three months ended March 31, 2025 and 2024 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)

Increase (Decrease)

EFT Processing

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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

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Increase (Decrease)

EFT Processing

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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)

Increase (Decrease)

Australian dollar

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New Zealand dollar

COMPARISON OF OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 , 2024 AND 2023

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31 , 2025 AND 2024

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, 2024 and 2023 :

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, 2025 and 2024 :

Three Months Ended March 31,

Year-over-Year Change

(dollar amounts in millions )

Increase (Decrease) Amount

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

Total revenues

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Transactions processed (millions)

Active ATMs as of September 30,

Active ATMs as of March 31,

Average Active ATMs

EFT Processing Segment total revenues were $ 373.0 million for the three months ended September 30, 2024 , an increase of $ 27.2 million or 8 % compared to the same period in 2023 .

EFT Processing Segment total revenues were $ 895.6 million for the nine months ended September 30, 2024 , an increase of $ 75.2 million or 9 % compared to the same period in 2023.

The increase in revenues was primarily due to the increase in POS acquiring transactions, expanding our own ATM

network to new geographic markets, increase in domestic cash withdrawal transactions,

international surcharge fees optimization , 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 $2.0 million and $0.5 million for the three and nine months ended September 30, 2024 compared to the same periods in 2023 .

EFT Processing Segment total revenues were $ 232.5 million for the three months ended March 31, 2025 , an increase of $ 15.3 million or 7 % compared to the same period in 2024 .

Revenue growth was primarily dri ven by market expansion, growth across most existing markets and the addition of access fees and interchange fees in certain markets.

Additionally, this quarter experienced increased business volumes supported by a rise in tourism and the implementation of proactive pricing and rate adjustment strategies to maintain competitiveness .

Average monthly revenues per ATM increased to $ 1,529 for the three months ended March 31, 2025 compared to $ 1,510 for the same period in 2024 .

Fluctuations in foreign currency exchange rates decreased revenues by approximately $ 6.7 million for the three months ended March 31, 2025 compared to the same period in 2024 .

Direct operating costs

EFT Processing Segment direct operating costs were $ 174.3 million for the three months ended September 30, 2024 , an increase of $ 8.6 million or 5 % compared to the same period in 2023 .

EFT Processing Segment direct operating costs were $ 457.9 million for the nine months ended September 30, 2024 , an increase of $ 31.1 million or 7 % compared to the same period in 2023 .

EFT Processing Segment direct operating costs were $ 136.5 million for the three months ended March 31, 2025 , an increase of $ 5.4 million or 4 % compared to the same period in 2024 .

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.

Furthermore, direct costs are increasing due to higher funding costs following the trend of interest rates and higher scheme costs.

Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $1.4 million and $0.2 million for the three and nine months ended September 30, 2024 compared to the same periods in 2023 .

Gross profit, which is calculated as revenues less direct operating costs, was $ 198.7 million for the three months ended September 30, 2024 , an increase of $ 18.6 million or 10 % compared to $ 180.1 million for the same period in 2023 .

Gross profit was $ 437.7 million for the nine months ended September 30, 2024 , an increase of $ 44.1 million or 11 % compared to $ 393.6 million for the same period in 2023 .

Gross profit as a percentage of revenues (“gross margin”) increased to 53.3% and 48.9% for the three and nine months ended September 30, 2024 , compared to 52.1% and 48.0% for the same periods in 2023 .

The increase in gross profit was primarily due to the increase in POS acquiring transactions, expanding new geographic markets, 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.

The primary drivers of the increase in direct costs were additional expenses required to support increased business volumes from both new and existing operations.

Direct costs were also impacted by overall cost inflation in products and services.

Fluctuations in foreign currency exchange rates decreased direct operating costs by approximately $ 3.5 million for the three months ended March 31, 2025 compared to the same period in 2024 .

Gross profit, which is calculated as revenues less direct operating costs, was $ 96.0 million for the three months ended March 31, 2025 , an increase of $ 9.9 million or 11 % compared to $ 86.1 million for the same period in 2024 .

Gross profit as a percentage of revenues (“gross margin”) increased to 41.3% for the three months ended March 31, 2025 , compared to 39.6% for the same period in 2024 .

The increase in gross profit was primarily dri ven by market expansion, growth across most existing markets and the addition of access fees and interchange fees in certain markets.

Salaries and benefits

Salaries and benefits expenses were $ 41.3 million for the three months ended September 30, 2024 , an increase of $ 6.1 million or 17 % c ompared to the same period in 2023 .

Salaries and benefits expenses were $ 107.5 million for the nine months ended September 30, 2024 , an increase of $ 14.0 million or 15 % compared 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 and market pressures.

As a percentage of revenues, salary expense increased to 11.1 % and 12.0 % for the three and nine months ended September 30, 2024 , compared to 10.2 % and 11.4 % for the same periods in 2023 .

Salaries and benefits expenses were $ 35.5 million for the three months ended March 31, 2025 , an increase of $ 3.7 million or 12 % c ompared to the same period in 2024 .

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 decreased salaries by approximately $ 1.0 million for the three months ended March 31, 2025 .

As a percentage of revenues, salary expense increased to 15.3 % for the three months ended March 31, 2025 , compared to 14.6 % for the same period in 2024 .

Selling, general and administrative

Selling, general and administrative expenses were $ 15.3 million for the three months ended September 30, 2024 , a decrease of $ 0.9 million or 6 % compared to the same period in 2023 .

Selling, general and administrative expenses were $ 38.0 million for the nine months ended September 30, 2024 , a decrease of $ 10.9 million or 22 % 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 in the first quarter of 2024.

As a percentage of revenues, these expenses decreased to 4.1 % and 4.2 % for the three and nine months ended September 30, 2024 , compared to 4.7 % and 6.0 % for the same periods in 2023 .

Selling, general and administrative expenses were $ 12.9 million for the three months ended March 31, 2025 , an increase of $ 3.7 million or 40 % compared to the same period in 2024 .

The increase is primarily due to a one-time operating tax benefit in the prior period.

Further increases were noted in professional fees.

As a percentage of revenues, these expenses increased to 5.5 % for the three months ended March 31, 2025 , compared to 4.2 % for the same period in 2024 .

Depreciation and amortization

Depreciation and amortization expenses were $ 24.8 million for the three months ended September 30, 2024 , an increase of $ 0.9 million or 4 % compared to the same period in 2023 .

Depreciation and amortization expenses were $ 73.5 million for the nine months ended September 30, 2024 , an increase of $ 3.1 million or 4 % compared to the same period in 2023 .

As a percentage of revenues, these expenses decreased to 6.6 % and 8.2 % for the three and nine months ended September 30, 2024 , compared to 6.9 % and 8.6 % for the same periods in 2023 .

Depreciation and amortization expenses were $ 24.3 million for the three months ended March 31, 2025 , an increase of $ 0.7 million or 3 % compared to the same period in 2024 .

As a percentage of revenues, these expenses decreased to 10.5 % for the three months ended March 31, 2025 , compared to 10.9 % for the same period in 2024 .

Operating income

EFT Processing Segment had operating income of $ 117.3 million for the three months ended September 30, 2024 , an increase of $ 12.5 million or 12 % c ompared to the same period in 2023 .

EFT Processing Segment had operating income of $ 218.7 million for the nine months ended September 30, 2024 , an increase of $ 37.9 million or 21 % compared to the same period in 2023 .

O perating income as a percentage of revenues (“operating margin”) in creased to 31.4 % and 24.4 % for the three and nine months ended September 30, 2024 , compared to 30.3 % and 22.0 % for the same periods in 2023 .

The in crease in operating income (and operating margin) was primarily due to improved business performance compared to 2023 and expense management.

The following table presents the results of operations for the three and nine months ended September 30, 2024 and 2023 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 $ 23.3 million for the three months ended March 31, 2025 , an increase of $ 1.8 million or 8.4 % c ompared to the same period in 2024 .

O perating income as a percentage of revenues (“operating margin”) in creased to 10.0 % for the three months ended March 31, 2025 , compared to 9.9 % for the same period in 2024 .

The increase in operating income was primarily driven by market expansion, growth across most existing markets, the addition of access fees and interchange fees in certain markets partially offset by a one-time operating tax benefit in the prior period.

The following table presents the results of operations for the three months ended March 31, 2025 and 2024 for our epay Segment:

Three Months Ended March 31,

Year-over-Year Change

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Increase (Decrease) Amount

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

(Decrease) Percent

Total revenues

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Transactions proce ssed (mi llions)

epay Segment total revenues were $ 290.3 million for the three months ended September 30, 2024 , an increase of $ 25.8 million or 10 % compared to the same period in 2023 .

epay Segment total revenues were $ 808.3 million for the nine months ended September 30, 2024 , an increase of $ 42.6 million or 6 % compared to the same period in 2023 .

The increase in revenue for the nine months ended September 30, 2024 was driven by continued expansion in mobile and digital branded payments .

Fluctuations in foreign currency exchange rates increased revenue by approximately $0.1 and $0.2 million for the three and nine months ended September 30, 2024, compared to the same period in 2023.

Revenue per transaction decreased to $ 0.26 and $ 0.25 for the three and nine months ended September 30, 2024 , compared to $ 0.29 and $ 0.27 for the same periods in 2023 .

epay Segment total revenues were $ 267.4 million for the three months ended March 31, 2025 , an increase of $ 10.3 million or 4 % compared to the same period in 2024 .

The increase in revenue for the three months ended March 31, 2025 was driv en by continued payments, digital media and mobile growth.

Fluctuations in foreign currency exchange rates decreased revenue by approximately $ 9.3 million for the three months ended March 31, 2025 , compared to the same period in 2024 .

Revenue per transaction decreased to $ 0.24 for the three months ended March 31, 2025 , compared to $ 0.27 for the same period in 2024 .

The decrease in revenue per transaction was primarily due to the shift in the mix of transactions processed.

Direct operating costs

epay Segment direct operating costs were $ 223.5 million for the three months ended September 30, 2024 , an increase of $ 22.2 million or 11 % compared to the same period in 2023 .

epay Segment direct operating costs were $ 617.1 million for the nine months ended September 30, 2024 , an increase of $ 33.5 million or 6 % compared to the same period in 2023 .

epay Segment direct operating costs were $ 202.1 million for the three months ended March 31, 2025 , an increase of $ 7.0 million or 4 % compared to the same period in 2024 .

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.

Fluctuations in foreign currency exchange rates increased direct operating costs by $0.2 million and $0.2 million for the three and nine months ended September 30, 2024 , compared to the same period in 2023 .

Gross profit was $ 66.8 million for the three months ended September 30, 2024 , an increase of $ 3.6 million or 6 % compared to $ 63.2 million for the same period in 2023 .

Gross profit was $ 191.2 million for the nine months ended September 30, 2024 , an increase of $ 9.1 million or 5 % compared to $ 182.1 million for the same period in 2023 .

Gross margin decreased to 23.0% and 23.7% for the three and nine months ended September 30, 2024 , compared to 23.9% and 23.8% for the same periods in 2023 .

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

Foreign currency exchange rates decreased direct operating costs by $ 7.0 million for the three months ended March 31, 2025 compared to the same period in 2024 .

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

Gross profit was $ 65.3 million for the three months ended March 31, 2025 , an increase of $ 3.3 million or 5 % compared to $ 62.0 million for the same period in 2024 .

Gross margin increased to 24.4% for the three months ended March 31, 2025 , compared to 24.1% for the same period in 2024 .

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

Salaries and benefits

Salaries and benefits expenses were $ 26.2 million for the three months ended September 30, 2024 , an increase of $ 2.8 million or 12 % compared to the same period in 2023 .

Salaries and benefits expenses were $ 75.4 million for the nine months ended September 30, 2024 , an increase of $ 8.6 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 9.0 % and 9.3 % for the three and nine months ended September 30, 2024 , compared to 8.8 % and 8.7 % for the same periods in 2023 .

Salaries and benefits expenses were $ 24.1 million for both the three months ended March 31, 2025 and 2024 .

As a percentage of revenues, these expenses decreased to 9.0 % for the three months ended March 31, 2025 , compared to 9.4 % for the same period in 2024 .

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce decreased salaries by approximately $ 0.8 million for the three months ended March 31, 2025 compared to the same period in 2024 .

Selling, general and administrative

Selling, general and administrative expenses were $ 9.6 million for the three months ended September 30, 2024 , a decrease of $ 0.1 million or 1 % compared to the same period in 2023 .

Selling, general and administrative expenses were $ 28.5 million for the nine months ended September 30, 2024 , an increase of $ 0.9 million or 3 % compared to the same period in 2023 .

As a percentage of revenues, these expenses were 3.3 % and 3.5 % for the three and nine months ended September 30, 2024 , compared to 3.7 % and 3.6 % for the same periods in 2023 .

Selling, general and administrative expenses were $ 12.8 million for the three months ended March 31, 2025 , an increase of $ 3.2 million or 33 % compared to the same period in 2024 .

As a percentage of revenues, these expenses increased to 4.8 % for the three months ended March 31, 2025 , compared to 3.7 % for the same period in 2024 .

The increase in selling, general and administrative expenses was primarily due to the payment of $4.5 million to resolve a non-recurring, multi-year operating tax matter during the quarter.

Depreciation and amortization

Depreciation and amortization expenses were $ 1.9 million for the three months ended September 30, 2024 , an increase of $ 0.1 million or 6 % compared to the same period in 2023 .

Depreciation and amortization expenses were $ 5.4 million for the nine months ended September 30, 2024 an increase of $ 0.3 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 % for both the three and nine months ended September 30, 2024 , respectively, with no change compared to the same periods in 2023 .

Depreciation and amortization expenses were $ 1.6 million for the three months ended March 31, 2025 , a decrease of $ 0.1 million or 6 % compared to the same period in 2024 .

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

As a percentage of revenues, these expenses decreased to 0.6 % for the three months ended March 31, 2025 , compared to 0.7 % for the same period in 2024 .

Operating income

epay Segment operating income was $ 29.1 million for the three months ended September 30, 2024 , an increase of $ 0.8 million or 3 % compared to the same period in 2023 .

epay Segment operating income was $ 81.9 million for the nine months ended September 30, 2024 , a decrease of $ 0.7 million or 1 % compared to the same period in 2023 .

Operating margin decreased to 10.0 % and 10.1 % for the three and nine months ended September 30, 2024 , compared to 10.7 % and 10.8 % for the same periods in 2023 .

Operating income per transaction was $ 0.03 f or both the three and nine m onths ended September 30, 2024 , unchanged from the same periods in 2023 .

Changes in operating income and operating margin for the three and nine months ended September 30, 2024 compared to the same periods in 2023 were primarily due to the shift in the mix of transactions processed and a decline in the promotional campaign activity in 2024 compared to 2023.

epay Segment operating income was $ 26.8 million for the three months ended March 31, 2025 , an increase of $ 0.2 million or 1 % compared to the same period in 2024 .

Operating margin decreased to 10.0 % for the three months ended March 31, 2025 , compared to 10.3 % for the same period in 2024 .

Operating income per transaction decreased to $ 0.02 f or the three m onths ended March 31, 2025 compared to $ 0.03 for the same period in 2024 .

Operating income growth did not keep pace with revenue growth due to the payment of $4.5 million to resolve a non-recurring, multi-year operating tax matter during the quarter.

MONEY TRANSFER SEGMENT

The following table presents the results of operations for the three and nine months ended September 30, 2024 and 2023 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, 2025 and 2024 for the Money Transfer Segment:

Three Months Ended March 31,

Year-over-Year Change

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Increase (Decrease) Amount

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease)

(Decrease) Percent

Total revenues

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Transactions processed (millions)

Money Transfer Segment total revenues were $ 438.2 million for the three months ended September 30, 2024 , an increase of $ 42.3 million or 11 % compared to the same period in 2023 .

Money Transfer Segment total revenues were $ 1,244.6 million for the nine months ended September 30, 2024 , an increase of $ 94.5 million or 8 % compared to the same period in 2023 .

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

outbound transactions, and direct-to-consumer digital transactions, partially offset by a decrease in U.S.

domestic transactions.

Revenues per transaction decreased to $ 9.72 and $ 9.57 for the three and nine months ended September 30, 2024 , compared to $ 9.75 and $ 9.65 for the same periods in 2023 due to a shift in the mix of transactions processed.

Fluctuations in foreign currency exchange rates increased revenues by approximately $2.4 million and $0.1 million for the three and nine months ended September 30, 2024 compared to the same periods in 2023 .

Money Transfer Segment total revenues were $ 417.7 million for the three months ended March 31, 2025 , an increase of $ 33.1 million or 9 % compared to the same period in 2024 .

The increase in revenues was primarily driven by double-digit growth in cross-border transactions, partially offset by a decrease in intra-U.S.

transactions.

Direct-to-consumer digital transactions grew by 31%, reflecting strong consumer demand for digital products.

Revenues per transaction decreased to $ 9.37 for the three months ended March 31, 2025 , compared to $ 9.47 for the same period in 2024 due to a higher proportion of digital transactions, which typically generate lower revenue per transaction.

Fluctuations in foreign currency exchange rates decreased revenues by approximately $ 5.9 million for the three months ended March 31, 2025 , compared tot the same period in 2024 .

Direct operating costs

Money Transfer Segment direct operating costs were $ 238.4 million for the three months ended September 30, 2024 , an increase of $ 26.5 million or 13 % c ompared to the same period in 2023 .

Money Transfer Segment direct operating costs were $ 679.5 million for the nine months ended September 30, 2024 , an increase of $ 57.6 million or 9 % compared to the same period in 2023 .

Money Transfer Segment direct operating costs were $ 224.5 million for the three months ended March 31, 2025 , an increase of $ 15.1 million or 7 % c ompared to the same period in 2024 .

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.

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outbound money transfer transactions.

Fluctuations in foreign currency exchange rates increased direct costs by approximately $1.3 million and $0.1 million for the three and nine months ended September 30, 2024 compared to the same periods in 2023 .

Gross profit was $ 199.8 million for the three months ended September 30, 2024 , an increase of $ 15.8 million or 9 % compared to $ 184.0 million for the same period in 2023 .

Gross profit was $ 565.1 million for the nine months ended September 30, 2024 , an increase of $ 36.9 million or 7 % compared to $ 528.2 million for the same period in 2023 .

Gross margin decreased to 45.6% and 45.4% for the three and nine months ended September 30, 2024 , compared to 46.5% and 45.9% for the same periods in 2023 .

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

Fluctuations in foreign currency exchange rates increased direct costs by approximately $ 2.6 million for the three months ended March 31, 2025 , compared to the same period in 2024 .

Gross profit was $ 193.2 million for the three months ended March 31, 2025 , an increase of $ 18.0 million or 10 % compared to $ 175.2 million for the same period in 2024 .

Gross margin increased to 46.3% for the three months ended March 31, 2025 , compared to 45.6% for the same period in 2024 .

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 $ 84.9 million for the three months ended September 30, 2024 , an increase of $ 7.3 million or 9 % compared to the same period in 2023 .

Salaries and benefits expenses were $ 248.3 million for the nine months ended September 30, 2024 , an increase of $ 17.9 million or 8 % compared to the same period in 2023 .

Salaries and benefits expenses were $ 87.9 million for the three months ended March 31, 2025 , an increase of $ 7.2 million or 9 % compared to the same period in 2024 .

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 decreased to 19.4 % for the three months ended September 30, 2024 , compared to 19.6 % for the same period in 2023

and were 20.0% for the nine months ended September 30, 2024

A s a percentage of revenues, these expenses were 21.0 % for both the three months ended March 31, 2025 and 2024 .

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $ 1.9 million for the three months ended March 31, 2025 , as compared to the same period in 2024 .

Selling, general and administrative

Selling, general and administrative expenses were $ 50.8 million for the three months ended September 30, 2024 , an increase of $ 5.1 million or 11 % compared to the same period in 2023 .

Selling, general and administrative expenses were $ 154.2 million for the nine months ended September 30, 2024 , an increase of $ 13.5 million or 10 % compared to the same period in 2023 .

As a percentage of revenues, these expenses increased to 11.6 % and 12.4 % for the three and nine months ended September 30, 2024 , compared to 11.5 % and 12.2 % for the same periods in 2023 .

Selling, general and administrative expenses were $ 54.1 million for the three months ended March 31, 2025 , an increase of $ 4.1 million or 8 % compared to the same period in 2024 .

The increase in selling, general and administrative expenses are primarily attributed to higher professional fees related to the implementation of a new fraud and risk management system and an increase in bad debt expenses.

As a percentage of revenues, these expenses were 13.0 % for both the three months ended March 31, 2025 , and 2024 .

Depreciation and amortization

Depreciation and amortization expenses were $ 6.0 million for the three months ended September 30, 2024 , a decrease of $ 1.0 million or 14 % compared to the same period in 2023 .

Depreciation and amortization expenses were $ 20.0 million for the nine months ended September 30, 2024 , a decrease of $ 3.6 million or 15 % 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 1.4 % and 1.6 % for the three and nine months ended September 30, 2024 , compared to 1.8 % and 2.1 % f or the same periods in 2023 .

Depreciation and amortization expenses were $ 6.1 million for the three months ended March 31, 2025 , a decrease of $ 1.2 million or 16 % compared to the same period in 2024 .

Depreciation and amortization expenses 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 1.5 % for the three months ended March 31, 2025 , compared to 1.9 % f or the same period in 2024 .

Operating income

Money Transfer Segment operating income was $ 58.1 million for the three months ended September 30, 2024 , an increase of $ 4.4 million compared to the same period in 2023 .

Money Transfer Segment had operating income of $ 142.6 million for the nine months ended September 30, 2024 , an increase of $ 9.1 million or 7 % compared to the same period in 2023 .

Operating margin decreased to 13.3 % and 11.5 % for the three and nine months ended September 30, 2024 , compared to 13.6 % and 11.6 % for the same periods in 2023 .

Operating income per transaction decreased to $ 1.29 , and $ 1.10 for the three and nine months ended September 30, 2024 , compared to $ 1.32 and $ 1.12 for the same periods in 2023 .

Money Transfer Segment operating income was $ 45.1 million for the three months ended March 31, 2025 , an increase of $ 7.9 million or 21.2 % compared to the same period in 2024 .

Operating margin increased to 10.8 % for the three months ended March 31, 2025 , compared to 9.7 % for the same period in 2024 .

Operating income per transaction increased to $ 1.01 for the three months ended March 31, 2025 , compared to $ 0.92 for the same period in 2024 .

Operating income growth outpaced revenue growth due to gross margin expansion, leverage of scale and effective expense management.

CORPORATE SERVICES

The following table presents the operating expenses for the three and nine months ended September 30, 2024 and 2023 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, 2025 and 2024 for Corporate Services:

Three Months Ended March 31,

Year-over-Year Change

2 unchanged sentences

Increase (Decrease)

Increase (Decrease) Amount

Increase (Decrease) Percent

Salaries and benefits

3 unchanged sentences

Corporate operating expenses

Total Corporate operating expenses were $ 22.3 million and $ 62.7 million for the three and nine months ended September 30, 2024 , an increase of $ 2.5 million or 13 % and $ 1.0 million or 2 % c ompared to the same periods in 2023 .

Total Corporate operating expenses were $ 20.0 million for the three months ended March 31, 2025 , a decrease of $ 1.3 million c ompared to the same period in 2024 .

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

1 unchanged sentence

Increase (Decrease) Amount

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

(Decrease) Percent

Interest income

Interest expense

Foreign currency exchange income (loss), net

Foreign currency exchange loss, net

Other gains (losses)

1 unchanged sentence

Interest income

Interest income was $ 6.5 million for the three months ended September 30, 2024 , an increase of $ 2.5 million or 63 % compared to the same period in 2023 .

Interest income was $ 18.1 million for the nine months ended September 30, 2024 , an increase of $ 8.0 million or 79 % compared to the same period in 2023 .

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

Interest income was $ 5.3 million for the three months ended March 31, 2025 , a decrease of $ 0.4 million or 7 % compared to the same period in 2024 .

This decrease was driven by lower bank balances in the first quarter of 2025 compared to 2024.

Interest expense

Interest expense was $ 24.2 million for the three months ended September 30, 2024 , an increase of $ 9.2 million or 61 % compared to the same period in 2023 .

Interest expense was $ 59.2 million for the nine months ended September 30, 2024 , an increase of $ 20.1 million or 51 % compared to the same period in 2023 .

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

Interest expense was $ 19.4 million for the three months ended March 31, 2025 , an increase of $ 4.5 million or 30 % compared to the same period in 2024 .

This increase was driven by an increase in interest rates on our Credit Facility, and the shift of borrowing from the Convertible Notes during the quarter to the Credit Facility, due to the use of borrowings under

the Credit Facility to fund the repurchase of $491.8 million of Convertible Notes in March 2025.

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 income of $ 27.4 million and $ 16.4 million for the three and nine months ended September 30, 2024 , compared to net foreign currency exchange loss of $ 8.8 million and $ 3.6 million for the same periods in 2023 .

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

We recorded net foreign currency exchange losses of $ 18.1 million for the three months ended March 31, 2025 , compared to net foreign currency exchange losses of $ 12.5 million for the same period in 2024 .

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 period.

Other gains (losses)

We recorded other gains of $ 16.5 million and $ 17.2 million for the three and nine months ended September 30, 2024 , compared to no gain and a loss of $ (0.1) million for the same periods in 2023 .

These other gains in 2024 relate to a discrete non-cash investment gain.

The other gains in the first quarter 2025 relate to a discrete non-cash investment gain.

INCOME TAX EXPENSE

The Company's effective income tax rate was 27.3 % and 30.0 % for the three and nine months ended September 30, 2024 , compared to 29.2 % and 30.6 % for the same periods ended September 30, 2023 .

The Company's effective income tax rate for the three and nine months ended September 30, 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.

The Company's effective income tax rate was 15.6 % for the three months ended March 31, 2025 , compared to 37.9 % for the same period ended March 31, 2024 .

The Company's effective income tax rate for the three months ended March 31, 2025 was lower than the applicable statutory income tax rate of 21 % mainly as a result of our U.S.

deferred tax activity on the repurchase of Convertible Notes.

Our 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 our U.S.

deferred tax activity on foreign exchange positions and certain of our foreign

earnings being subject to higher local statutory tax rates.

NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

2 unchanged sentences

Segment - Country

LATAM ATM Solutions (Prosegur)

EFT - South America

Euronet China

1 unchanged sentence

EFT - Pakistan

Latam ATM Solutions

NET INCOME ATTRIBUTABLE TO EURONET

Net income attributable to Euronet was $ 151.5 million for the three months ended September 30, 2024 , an increase of $ 47.3 million or 45 % compared to t he same period in 2023 .

Net income attributable to Euronet was $ 260.8 million for the nine months ended September 30, 2024 , an increase of $ 50.4 million or 24 % compared to t he same period in 2023 .

NET INCOME (LOSS) ATTRIBUTABLE TO EURONET

Net income attributable to Euronet was $ 38.4 million for the three months ended March 31, 2025 , an increase of $ 12.2 million or 47 % compared to t he same period in 2024 .

The increase in net income was primarily attributable to the $ 58.5 million increase in revenues, largely driven by successful business operations.

The increased revenues led to a $ 31.2 million increase in gross profit.

The increase in gross profit was partially offset by a $ 9.4 million increase in salaries and benefits expense and a $ 11.1 million increase in selling, general and administrative expenses.

LIQUIDITY AND CAPITAL RESOURCES

Working capital

As of September 30, 2024 , we had working capital of $ 914.6 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, additional financing for the ATMs, operational results, acquisitions, repurchases of shares and working capital changes.

Our ratio of current assets to current liabilities was 1.26 and 1.54 at September 30, 2024 and December 31, 2023 , respectively.

As of March 31, 2025 , we had working capital of $ 1,565.3 million , which is calculated as the difference between total current assets and total current liabilities, compared to working capital of $ 810.5 million as of December 31, 2024 .

The increase in working capital was primarily due to the repurchase of Convertible

Notes with cash and borrowings under the Credit Facility (which replaced a

current liability with long term debt), positive operational results and changes

in [operational related] working capital items.

Our ratio of current assets to current liabilities was 1.60 and 1.25 at March 31, 2025 and December 31, 2024 , 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, 2024 , we had $ 805.4 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 $ 280.2 million from $ 525.2 million as of December 31, 2023 to $ 805.4 million as of September 30, 2024 as a result of the increase in number of active ATMs as of September 30, 2024 compared to December 31, 2023 .

The Company has $ 1,524.1 million of unrestricted cash as of September 30, 2024 compared to $ 1,254.2 million as of December 31, 2023 .

Including the $ 805.4 million of cash in ATMs at September 30, 2024 , we have access to $ 2,941.8 million in available cash, and $ 669.8 million available under the Credit Facility.

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, 2024 and 2023 (in millions):

Nine Months Ended September 30,

As of March 31, 2025 , we had $ 700.3 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 $ 56.5 million from $ 643.8 million as of December 31, 2024 to $ 700.3 million as of March 31, 2025 as a result of the increase in the number of active ATMs as of March 31, 2025 compared to December 31, 2024 .

The Company has $ 1,393.6 million of unrestricted cash as of March 31, 2025 compared to $ 1,278.8 million as of December 31, 2024 .

Including the $ 700.3 million of cash in ATMs at March 31, 2025 , we have access to $ 2,689.6 million in available cash, and $ 623.2 million available under the Credit Facility.

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, 2025 and 2024 (in millions):

Three Months Ended March 31,

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

2 unchanged sentences

Financing activities

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

Increase in cash and cash equivalents and restricted cash

Increase (decrease) foreign currency exchange rate changes on cash and cash equivalents and restricted cash

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

Operating activity cash flow

Cash flows provided by operating activities were $ 652.5 million f or the nine months ended September 30, 2024 compared to cash flows provided by operating activities of $ 52.5 million for the same period in 2023 .

The net increase in operating cash flows was primarily due to other working capital fluctuations.

Cash flows provided by operating activities were $ 1.7 million f or the three months ended March 31, 2025 compared to cash flows provided by operating activities of $ 30.0 million for the same period in 2024 .

The net decrease in operating cash flows was primarily due to a decrease in deferred income taxes as a result of our U.S.

deferred tax activity on the repurchase of Convertible Notes, partially offset by an increase in net income and a decrease in other working capital fluctuations.

Investing activity cash flow

Cash flows used in investing activities were $ 185.2 million for the nine months ended September 30, 2024 compared to $ 74.6 million for the same period in 2023 .

The increase in cash used in investing activities is primarily due to the $ 91.3 million of cash paid for the acquisitions during the first nine months of 2024.

Additionally, w e used $ 83.0 million for purchases of property and equipment, net of sale proceeds for the nine months ended September 30, 2024 compared to $ 69.1 million for the same period in 2023 .

Cash flows used in investing activities were $ 54.7 million for the three months ended March 31, 2025 compared to $ 96.8 million for the same period in 2024 .

The decrease in cash used in investing activities is primarily due to the acquisition of Infinitum in 2024, partially offset by the purchase

of the 2030 Note from Marker Trax Digital, LLC in 2025.

Financing activity cash flow

Cash flows provided by financing activities were $ 185.4 million for the nine months ended September 30, 2024 compared to cash flows used by financing activities of $ 208.3 million for the same period in 2023 .

Our borrowing activities on the Credit Facility for the nine months ended September 30, 2024 consisted of net repayments of $ 4.5 million compared to net repayments of $ 333.8 million for the same period in 2023 .

The increase in financing activity i s primarily the result of net borrowings of short-term obligations of $ 404.3 million offset by cash used to repurchase shares of $ 217.6 million.

We received proceeds of $ 4.5 million and $ 3.1 million during the nine months ended September 30, 2024 and 2023 , respectively, for the issuance of stock in connection with our Stock Incentive Plan.

Cash flows provided by financing activities were $ 162.6 million for the three months ended March 31, 2025 compared to cash flows provided by financing activities of $ 81.3 million for the same period in 2024 .

Our borrowing activities on the Credit Facility for the three months ended March 31, 2025 consisted of net borrowings of $ 710.0 million compared to net borrowings of $ 82.6 million for the same period in 2024 .

The increase in net borrowings on the Credit Facility, during the three months ended March 31, 2025 , i s primarily the result of cash for the repurchase of the convertible notes and the repurchase of shares.

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, 2024 and 2023 had a positive impact of $ 42.1 million and a negative impact of $ 172.0 million, respectively, on cash, cash equivalents, and restricted cash.

The impact on cash, cash equivalents, and restricted cash for the nine months ended September 30, 2024 and 2023 was due primarily to the impact of the exchange rate of the U.S.

dollar to the euro.

Fluctuations in foreign currency exchange rates impacted cash, cash equivalents, and restricted cash by $ 91.8 million and ($ 47.2 ) million for the three months ended March 31, 2025 and 2024, respectively.

The positive impact in 2025 was primarily driven by the weakening of the U.S.

dollar compared to euro.

Other sources of capital

Credit Facility - On October 24, 2022, the Company amended its revolving credit agreement (the “Credit Facility”) to increase the facility from $ 1.03 billion to $ 1.25 billion and to extend the expiration to October 24, 2027.

The revolving credit facility contains a sublimit of up to $ 250 million, with $ 150 million committed, for the issuance of letters of credit, a $ 75 million sublimit both for U.S.

dollar swingline loans and for swingline loans in euros or British pounds sterling.

The Credit Facility allows for borrowings in British pounds sterling, euro and U.S.

Credit Facility - On December 17, 2024, the Company amended its revolving credit agreement (the “Credit Facility”) to increase the facility from $1.25 billion to $1.9 billion and to extend the expiration to December 17, 2029.

The amended Credit Facility includes a multi-currency borrowing tranche totaling $1,685 million and a U.S.

dollar borrowing tranche totaling $215 million .

The amended Credit Facility also removes the credit spread adjustment on SOFR and SONIA borrowings.

All other terms remain substantially the same as the previous Credit Facility.

The multi-currency tranche of the revolving Credit Facility contains a sublimit of up to $ 500 million for the issuance of letters of credit, a $ 75 million sublimit for U.S.

dollar swingline loans and a $ 75 million sublimit for swingline loans in euros or British pounds sterling.

The multi-currency tranche of the Credit Facility allows for borrowings in British pounds sterling, euro and U.S.

Subject to certain conditions, the Company has the option to increase the Credit Facility by up to an additional $500 million by requesting additional commitments from existing or new lenders.

Fees and interest on borrowings vary based upon the Company's corporate credit rating and will be based, in the case of letter of credit fees, on a margin, and in the case of interest, on a margin over a secured overnight financing rate, as defined in the agreement, with a margin, including the facility fee, ranging from 1.00 % to 1.625 % or the base rate, as selected by the Company.

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, 2024 , we had $ 533.0 million of borrowings and $ 47.2 million of stand-by letters of credit outstanding under the Credit Facility.

Borrowings under the revolving Credit Facility (other than swing line loans) bear interest based on a margin over a secured financing rate or the base rate, as selected by the Co mpany, which varies from 0.875% to 1.375%, in each case based, on the Company’s current credit rating.

The applicable margin for borrowings under the Credit Facility, based on the Company’s current credit rating is 1.075%.

In addition, the Company pays a facility fee on the total commitments made under the revolving Credit Facility, which varies from 0.125% to 0.250%.

As of March 31, 2025 , the stand-by letters of credit interest charge was 1.25 % per annum.

As of March 31, 2025 , we had $ 1,230.4 million of borrowings and $ 46.4 million of stand-by letters of credit outstanding under the Credit Facility.

The remaining $ 623.2 million under the Credit Facility was available for borrowing.

4 unchanged sentences

Holders of the Convertible Notes have the option to require us to repurchase for cash all or part of their Convertible Notes on each of March 15, 2025, 2029 , 2034 , 2039 and 2044 at a repurchase price equal to 100 % of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the relevant repurchase date.

In connection with the issuance of the Convertible Notes, we recorded $ 12.8 million in debt issuance costs, which are being amortized through March 1, 2025.

In connection with the issuance of the Convertible Notes, we recorded $ 12.8 million in debt issuance costs, which were amortized through March 1, 2025.

Almost all of the holders

exercised their repurchase option in March 2025 and we repurchased $491.8

million of the Convertible Notes with a combination of cash on hand and a

borrowing under our Credit Facility.

As of March 31, 2025, $ 33.2 million of the Convertible Notes remain

Senior Notes - On May 22, 2019, we completed the sale of € 600 million ($ 669.9 million) aggregate principal amount of Senior Notes that expire on May 2026 (the “Senior Notes”).

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, 2024 , we have outstanding € 600.0 million ( $ 668.0 million ) principal amount of the Senior Notes.

As of March 31, 2025 , we have outstanding € 600.0 million ( $ 648.8 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 26, 2023, the Company entered into an Uncommitted Loan Agreement for $ 150 million, which expired on June 21, 2024.

This loan was a Prime rate loan, a Bloomberg Short-term Bank Yield (“BSBY”) rate loan plus 0.95 % or bore interest at the rate agreed to by the Bank and the Company at the time a loan was made.

The weighted average interest rate from the loan inception date to June 21, 2024, was 6.32 %.

On June 21, 2024, the Company rolled the $ 150 million Uncommitted Loan Agreement into a new Uncommitted Loan Agreement with a $ 400 million credit limit on or before September 30, 2024, and a credit limit of $ 250 million on or after October 1, 2024 for the sole purpose of providing vault cash for ATMs and expires no later than June 20, 2025.

The loan had an outstanding balance of $250 million at September 30, 2024.

The loan is a Prime Rate Loan, a Daily SOFR Rate Loan plus 1.05 % or shall bear interest at the rate agreed to by the Bank and the Borrower at the time such Loan is made.

The weighted-average interest rate from loan inception date to September 30, 2024, was 6.30%.

On June 27, 2024, the Company entered into an Uncommitted Loan Agreement for $ 300 million, fully drawn and outstanding at September 30, 2024, for the sole purpose of providing vault cash for ATMs, that expires no later than November 30, 2024.

The loan is a Prime Rate Loan, a Daily Simple SOFR Rate Loan plus 1.125 % or shall bear interest at the rate agreed to by the Bank and the Borrower at the time such Loan is made.

The weighted-average interest rate from the loan inception date to September 30, 2024 was 6.39 %.

Uncommitted Credit Agreement - On June 21, 2024, the Company rolled its existing $ 150 million Uncommitted Loan Agreement into a new Uncommitted Loan Agreement with a $ 400 million credit limit through September 30, 2024, and a credit limit of $ 250 million thereafter for the sole purpose of providing vault cash for ATMs and expires no later than June 20, 2025 .

The loan had an outstanding balance of $ 250 million at March 31, 2025 .

The loan is a Prime Rate Loan, a Daily SOFR Rate Loan plus 1.05 % or shall bear 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 loan inception date to March 31, 2025 , was 5.86 %.

We currently anticipate

that the Uncommitted Loan Agreement will be replaced with a similar credit

facility prior to its expiration.

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 $ 4.8 million outstanding under these other obligation arrangements as of September 30, 2024 .

On October 9, 2024, the Company completed a facility of MYR 140 million and an overdraft facility of MYR 100 million for its Malaysian business.

Each advance under this facility shall be made for a term of 1 month or such other period of up to 12 months.

As of March 31, 2025 $43.8 million was borrowed under this facility.

Including the Malaysian facility, t here was a total of $ 44.2 million outstanding under our subsidiaries

credit lines and overdraft facilities as of March 31, 2025 .

Other uses of capital

Capital expenditures and needs - Total capital expenditures for the nine months ended September 30, 2024 were $ 83.0 million .

Capital expenditures and needs - Total capital expenditures for the three months ended March 31, 2025 were $ 23.2 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.

Total capital expenditures for 2025 are currently estimated to range from approximately $85 million to $95 million.

At current and projected cash flow levels, we anticipate that cash generated from operations, together with cash on hand and amounts available under our Credit Facility and other existing and potential future financing will be sufficient to meet our debt (including our uncommitted credit facilities), leasing, and capital expenditure obligations.

At current and projected cash flow levels, we anticipate that cash generated from operations, together with cash on hand and amounts available under our Credit Facility and other existing and potential future financings will be sufficient to meet our debt (including our uncommitted credit facilities), leasing, and capital expenditure obligations.

If our capital resources are not sufficient to meet these obligations, we will seek to refinance our debt and/or issue additional equity under terms acceptable to us.

3 unchanged sentences

Therefore, the local currency in each of these markets is the functional currency.

T he current inflationary period has put pressure on our results of operations and our financial ition, primarily in the form of increased compensation expense.

In addition, we have seen some signs of inflation impacting demand for our products and services by affecting discretionary spend items, such as gaming products, in our epay business, discretionary travel expenditures in EFT, as well as some pressure on send amounts in money transfer.

We have seen indications that the current inflationary period will put pressure on our results of operations and our financial position.

We have seen some signs of inflation impacting discretionary spend items, such as gaming products, in our epay business, discretionary travel expenditures in EFT, as well as some pressure on send amounts in money transfer.

A s a consequence of this inflationary period, w e expect to see increasing expenses forthcoming.

3 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, 2024 , there were no material changes from the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2023 .

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, 2024 .

As of March 31, 2025 , there were no material changes from the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2024 .

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

CONTRACTUAL OBLIGATIONS

As of September 30, 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 .

As of March 31, 2025 , 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, 2024 .

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