What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-05-07 · 224 added, 165 removed, 302 unchanged (56% of the section changed)

8 unchanged sentences

 our business plans and financing plans and requirements;

 our pending acquisition of CoreCard Corporation (“CoreCard), including the satisfaction of closing conditions in the expected timeframe or at all;

 trends affecting our business plans and financing plans and requirements;

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 the potential outcome of loss contingencies;

our expectations regarding the closing of any pending acqu isitions;

 our expectations regarding the closing of any pending acquisitions, including the pending CoreCard acquisition;

 business strategy;

 government regulatory action;

the expected effects of changes in laws or accounting standards;

 the expected effects of changes in laws or accounting standards, including the excise tax on certain international remittances under the One Big Beautiful Bill Act (the “OBBBA”);

 technological advances;

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

the expected timing and likelihood of completion of the CoreCard acquisition, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the acquisition;

the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement for the CoreCard acquisition;

the possibility that CoreCard’s shareholders may not approve the proposed acquisition;

the risk that the parties may not be able to satisfy the conditions to the CoreCard acquisition in a timely manner or at all;

risks related to disruption of management time from ongoing business operations due to the pending acquisition;

the risk that any announcements relating to the CoreCard acquisition could have adverse effects on the market price of the Company’s common stock;

the risk that the CoreCard acquisition and its announcement could have an adverse effect on the parties’ business relationships and business generally, including the ability of CoreCard or the Company to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers, and on their operating results and businesses generally;

the risk of unforeseen or unknown liabilities;

customer, shareholder, regulatory and other stakeholder approvals and support;

the risk of potential litigation relating to the CoreCard acquisition that could be instituted against CoreCard or its directors and/or officers;

the risk associated with third party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the CoreCard acquisition which are not waived or otherwise satisfactorily resolved;

the risk of rating agency actions and the Company’s ability to access short- and long-term debt markets on a timely and affordable basis;

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

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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 laws and regulations affecting our business, including tax and immigration laws (including the OBBBA) 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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Our executive offices are located in Leawood, Kansas, USA.

With approximat ely 74 % of our revenues denominated in currencies other than the U.S.

With approximately 75.6% of our revenues denominated in currencies other than the U.S.

dollar, any significant changes in foreign currency exchange rates will likely have a significant impact on our results of operations (for a further discussion, see Item 1 A - Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024 ).

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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 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 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.

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 31 % and 29 % of total consolidated revenues for the three and six months ended June 30, 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.

epay Segment — Revenues in the epay Segment, which represented approximately 26 % and 27 % of total consolidated revenues for the three and six months ended June 30, 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 70% 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.

Money Transfer Segment — Revenues in the Money Transfer Segment, which represented approximately 43 % and 44 % of total consolidated revenues for the three and six months ended June 30, 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 months ended March 31, 2025 and 2024 are summarized in the tables below:

Revenues for the Three Months Ended

Revenues and operating income by segment for the three and six months ended June 30, 2025 and 2024 are summarized in the tables below:

Revenue for the Three Months Ended June 30,

Year-over-Year Change

Revenue for the Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions)

Increase (decrease)

Increase (decrease) Amount

Increase Percent

Increase (decrease) Amount

Increase Percent

EFT Processing

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Corporate services, eliminations and other

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

Operating Income (Expense) for the Three Months Ended June 30,

Year-over-Year Change

Operating Income (Expense) for the Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions)

Increase (Decrease)

Increase (Decrease) Amount

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

EFT Processing

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dollar of the currencies of the countries in which we have our most significant operations:

Average Translation Rate

Three Months Ended March 31,

Average Translation Rate Three Months Ended June 30,

Average Translation Rate Six Months Ended June 30,

Currency (dollars per foreign currency)

Increase (Decrease)

Australian dollar

British pounds sterling

Canadian dollar

Hungarian forint

Malaysian ringgit

New Zealand dollar

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

Increase (Decrease) Percent

Australian dollar (AUD)

British pound (GBP)

Canadian dollar (CAD)

Hungarian forint (HUF)

Indian rupee (INR)

Malaysian ringgit (MYR)

New Zealand dollar (NZD)

Polish zloty (PLN)

COMPARISON OF OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024

EFT PROCESSING SEGMENT

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,

The following table summarizes the results of operations for our EFT Processing Segment for the three and six months ended June 30, 2025 and 2024 :

Three Months Ended June 30,

Year-over-Year Change

Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions)

Increase Amount

Total revenues

7 unchanged sentences

Transactions processed (millions)

Active ATMs as of March 31,

Average Active ATMs

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.

Active ATMs as of June 30,

EFT Processing Segment total revenues were $ 338.5 million for the three months ended June 30, 2025 , an increase of $ 33.1 million or 11 % compared to the same period in 2024 .

EFT Processing Segment total revenues were $ 571.0 million for the six months ended June 30, 2025 , an increase of $ 48.4 million or 9 % compared to the same period in 2024 .

Revenue growth was primarily driven 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 .

Fluctuations in foreign currency exchange rates increased revenues by approximately $14.0 million for the three months ended June 30, 2025 compared to the same period in 2024 .

Fluctuations in foreign currency exchange rates increased revenues by approximately $3.8 million for the six months ended June 30, 2025 compared to the same period in 2024.

Direct operating costs

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 .

EFT Processing Segment direct operating costs were $ 173.9 million for the three months ended June 30, 2025 , an increase of $ 21.4 million or 14 % compared to the same period in 2024 .

EFT Processing Segment direct operating costs were $ 310.4 million for the six months ended June 30, 2025 , an increase of $ 26.8 million or 9 % 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.

1 unchanged sentence

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.

Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $7.2 million for the three months ended June 30, 2025 compared to the same period in 2024.

Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $1.1 million for the six months ended June 30, 2025 compared to the same period in 2024.

Gross profit, which is calculated as revenues less direct operating costs, was $ 164.6 million for the three months ended June 30, 2025 , an increase of $ 11.7 million or 8 % compared to $ 152.9 million for the same period in 2024 .

Gross profit was $ 260.6 million for the six months ended June 30, 2025 , an increase of $ 21.6 million or 9 % compared to $ 239.0 million for the same period in 2024 .

Gross profit as a percentage of revenues (“gross margin”) decreased to 48.6 % and 45.6 % for the three and six months ended June 30, 2025 , compared to 50.1 % and 45.7 % for the same period in 2024 .

The increase in gross profit was primarily driven 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 $ 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 .

Salaries and benefits expenses were $ 39.7 million for the three months ended June 30, 2025 , an increase of $ 5.3 million or 15 % compared to the same period in 2024 .

Salaries and benefits expenses were $ 75.2 million for the six months ended June 30, 2025 , an increase of $ 9.0 million or 14 % compared 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 .

As a percentage of revenues, salary expense increased to 11.7 % and 13.2 % for the three and six months ended June 30, 2025 , compared to 11.3 % and 12.7 % for the same period in 2024 .

Selling, general and administrative

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 .

Selling, general and administrative expenses were $ 14.3 million for the three months ended June 30, 2025 , an increase of $ 0.8 million or 6 % compared to the same period in 2024 .

Selling, general and administrative expenses were $ 27.2 million for the six months ended June 30, 2025 , an increase of $ 4.5 million or 20 % compared to the same period in 2024 .

The increase for the six month period is primarily due to a one-time operating tax benefit in the first quarter.

As a percentage of revenues, these expenses changed to 4.2 % and 4.8 % for the three and six months ended June 30, 2025 , compared to 4.4 % and 4.3 % for the same period in 2024 .

Depreciation and amortization

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 .

Depreciation and amortization expenses were $ 26.0 million for the three months ended June 30, 2025 , an increase of $ 0.9 million or 4 % compared to the same period in 2024 .

Depreciation and amortization expenses were $ 50.3 million for the six months ended June 30, 2025 , an increase of $ 1.6 million or 3 % compared to the same period in 2024 .

As a percentage of revenues, these expenses decreased to 7.7 % and 8.8 % for the three and six months ended June 30, 2025 , compared to 8.2 % and 9.3 % for the same period in 2024 .

Operating income

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,

EFT Processing Segment had operating income of $ 84.6 million for the three months ended June 30, 2025 , an increase of $ 4.7 million or 6 % compared to the same period in 2024 .

EFT Processing Segment had operating income of $ 107.9 million for the six months ended June 30, 2025 , an increase of $ 6.5 million or 6 % compared to the same period in 2024 .

Operating income as a percentage of revenues (“operating margin”) decreased to 25.0 % and 18.9 % for the three and six months ended June 30, 2025 , compared to 26.2 % and 19.4 % for the same period in 2024 .

The following table presents the results of operations for the three and six months ended June 30, 2025 and 2024 for our epay Segment:

Three Months Ended June 30,

Year-over-Year Change

Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions)

Increase (Decrease) Amount

(Decrease) Percent

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

Total revenues

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Operating income

Transactions proce ssed (mi llions)

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.

Transactions processed (millions)

epay Segment total revenues were $ 280.1 million for the three months ended June 30, 2025 , an increase of $ 19.2 million or 7 % compared to the same period in 2024 .

epay Segment total revenues were $ 547.5 million for the six months ended June 30, 2025 , an increase of $ 29.5 million or 6 % compared to the same period in 2024 .

The increase in revenue was driven by continued payments, digital media and mobile growth.

Revenue per transaction changed to $ 0.25 and $ 0.24 for the three and six months ended June 30, 2025 , compared to $ 0.24 and $ 0.25 for the same period in 2024 .

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

Fluctuations in foreign currency exchange rates increased revenues by approximately $7.0 million for the three months ended June 30, 2025 compared to the same period in 2024.

Fluctuations in foreign currency exchange rates decreased revenues by approximately $0.3 million for the six months ended June 30, 2025 compared to the same period in 2024.

Direct operating costs

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 .

epay Segment direct operating costs were $ 210.9 million for the three months ended June 30, 2025 , an increase of $ 12.4 million or 6 % compared to the same period in 2024 .

epay Segment direct operating costs were $ 413.0 million for the six months ended June 30, 2025 , an increase of $ 19.4 million or 5 % 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.

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

Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $5.5 million for the three months ended June 30, 2025 compared to the same period in 2024.

Fluctuations in foreign currency exchange rates decreased direct operating costs by approximately $0.3 million for the six months ended June 30, 2025 compared to the same period in 2024.

Gross profit was $ 69.2 million for the three months ended June 30, 2025 , an increase of $ 6.8 million or 11 % compared to $ 62.4 million for the same period in 2024 .

Gross profit was $ 134.5 million for the six months ended June 30, 2025 , an increase of $ 10.1 million or 8 % compared to $ 124.4 million for the same period in 2024 .

Gross margin increased to 24.7 % and 24.6 % for the three and six months ended June 30, 2025 , compared to 23.9 % and 24.0 % 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 $ 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 .

Salaries and benefits expenses were $ 26.6 million for the three months ended June 30, 2025 , an increase of $ 1.5 million or 6 % compared to the same period in 2024 .

Salaries and benefits expenses were $ 50.7 million for the six months ended June 30, 2025 , an increase of $ 1.5 million or 3 % compared to the same period in 2024 .

As a percentage of revenues, these expenses decreased to 9.5 % and 9.3 % for the three and six months ended June 30, 2025 , compared to 9.6 % and 9.5 % for the same period in 2024 .

Selling, general and administrative

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.

Selling, general and administrative expenses were $ 9.8 million for the three months ended June 30, 2025 , an increase of $ 0.5 million or 5 % compared to the same period in 2024 .

Selling, general and administrative expenses were $ 22.6 million for the six months ended June 30, 2025 , an increase of $ 3.7 million or 20 % compared to the same period in 2024 .

As a percentage of revenues, these expenses changed to 3.5 % and 4.1 % for the three and six months ended June 30, 2025 , compared to 3.6 % and 3.6 % for the same period in 2024 .

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

Depreciation and amortization

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 expenses were $ 1.7 million for the three months ended June 30, 2025 , a decrease of $ 0.1 million or 6 % compared to the same period in 2024 .

Depreciation and amortization expenses were $ 3.3 million for the six months ended June 30, 2025 , a decrease of $ 0.2 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 .

As a percentage of revenues, these expenses decreased to 0.6 % and 0.6 % for the three and six months ended June 30, 2025 , compared to 0.7 % and 0.7 % for the same period in 2024 .

Operating income

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.

epay Segment operating income was $ 31.1 million for the three months ended June 30, 2025 , an increase of $ 4.9 million or 19 % compared to the same period in 2024 .

epay Segment operating income was $ 57.9 million for the six months ended June 30, 2025 , an increase of $ 5.1 million or 10 % compared to the same period in 2024 .

Operating margin increased to 11.1 % and 10.6 % for the three and six months ended June 30, 2025 , compared to 10.0 % and 10.2 % for the same period in 2024 .

MONEY TRANSFER SEGMENT

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,

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

Three Months Ended June 30,

Year-over-Year Change

Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions)

Increase (Decrease) Amount

(Decrease) Percent

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

Total revenues

7 unchanged sentences

Transactions processed (millions)

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 .

Money Transfer Segment total revenues were $ 457.9 million for the three months ended June 30, 2025 , an increase of $ 36.1 million or 9 % compared to the same period in 2024 .

Money Transfer Segment total revenues were $ 875.6 million for the six months ended June 30, 2025 , an increase of $ 69.2 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.

1 unchanged sentence

Direct-to-consumer digital transactions grew by 29%, 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 .

Revenues per transaction increased to $9.92 and $9.65 for the three and six months ended June 30, 2025 , compared to $9.52 and $9.50 for the same period in 2024 due to foreign currency fluctuations.

Fluctuations in foreign currency exchange rates increased revenues by approximately $11.6 million and $0.8 million for the three and six months ended June 30, 2025 , compared to the same period in 2024 .

Direct operating costs

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 .

Money Transfer Segment direct operating costs were $ 238.0 million for the three months ended June 30, 2025 , an increase of $ 6.3 million or 3 % compared to the same period in 2024 .

Money Transfer Segment direct operating costs were $ 462.5 million for the six months ended June 30, 2025 , an increase of $ 21.4 million or 5 % compared 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.

1 unchanged sentence

outbound money transfer transactions.

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.

Fluctuations in foreign currency exchange rates increased direct costs by approximately $5.9 million and $0.2 million for the three and six months ended June 30, 2025 , compared to the same period in 2024 .

Gross profit was $ 219.9 million for the three months ended June 30, 2025 , an increase of $ 29.8 million or 16 % compared to $ 190.1 million for the same period in 2024 .

Gross profit was $ 413.1 million for the six months ended June 30, 2025 , an increase of $ 47.8 million or 13 % compared to $ 365.3 million for the same period in 2024 .

Gross margin increased to 48.0 % and 47.2 % for the three and six months ended June 30, 2025 , compared to 45.1 % and 45.3 % for the same period in 2024 .

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

outbound transactions and direct-to-consumer digital transactions.

Salaries and benefits

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 .

Salaries and benefits expenses were $ 88.2 million for the three months ended June 30, 2025 , an increase of $ 5.5 million or 7 % compared to the same period in 2024 .

Salaries and benefits expenses were $ 176.1 million for the six months ended June 30, 2025 , an increase of $ 12.7 million or 8 % 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.

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 .

As a percentage of revenues, these expenses were 19.3 % and 20.1 % for the three and six months ended June 30, 2025 , compared to 19.6 % and 20.3 % for the same period in 2024 .

Selling, general and administrative

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 .

Selling, general and administrative expenses were $ 60.1 million for the three months ended June 30, 2025 , an increase of $ 6.7 million or 13 % compared to the same period in 2024 .

Selling, general and administrative expenses were $ 114.2 million for the six months ended June 30, 2025 , an increase of $ 10.8 million or 10 % 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 .

As a percentage of revenues, these expenses were 13.1 % and 13.0 % for both the three and six months ended June 30, 2025 , compared to 12.7 % and 12.8 % for the same period in 2024 .

Depreciation and amortization

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 were $ 6.0 million for the three months ended June 30, 2025 , a decrease of $ 0.7 million or 10 % compared to the same period in 2024 .

Depreciation and amortization expenses were $ 12.1 million for the six months ended June 30, 2025 , a decrease of $ 1.9 million or 14 % 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 .

As a percentage of revenues, these expenses decreased to 1.3 % and 1.4 % for the three and six months ended June 30, 2025 , compared to 1.6 % and 1.7 % for the same period in 2024 .

Operating income

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 .

Money Transfer Segment operating income was $ 65.6 million for the three months ended June 30, 2025 , an increase of $ 18.3 million or 39 % compared to the same period in 2024 .

Money Transfer Segment operating income was $ 110.7 million for the six months ended June 30, 2025 , an increase of $ 26.2 million or 31 % compared to the same period in 2024 .

Operating margin increased to 14.3 % and 12.6 % for the three and six months ended June 30, 2025 , compared to 11.2 % and 10.5 % for the same period in 2024 .

Operating income per transaction increased to $ 1.42 and $ 1.22 for the three and six months ended June 30, 2025 , compared to $ 1.07 and $ 1.00 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 months ended March 31, 2025 and 2024 for Corporate Services:

Three Months Ended March 31,

The following table presents the operating expenses for the three and six months ended June 30, 2025 and 2024 for Corporate Services:

Three Months Ended June 30,

Year-over-Year Change

Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions)

Increase (Decrease)

Increase Amount

Increase Percent

Increase Amount

Increase Percent

Salaries and benefits

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Corporate operating expenses

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 .

Total Corporate operating expenses were $ 22.7 million and $ 42.7 million for the three and six months ended June 30, 2025 , an increase of $ 3.6 million or 19 % and $ 2.3 million or 6 % compared to the same period in 2024 .

OTHER EXPENSE, NET

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions)

Increase (Decrease) Amount

(Decrease) Percent

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

Interest income

1 unchanged sentence

Foreign currency exchange loss, net

Other gains (losses)

Other (loss) gains

Other expense, net

Interest income

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 income was $ 6.2 million for the three months ended June 30, 2025 , an increase of $ 0.3 million or 5 % compared to the same period in 2024 .

Interest income was $ 11.5 million for the six months ended June 30, 2025, a decrease $ 0.1 million or 1 % compared to the same period in 2024 .

This increase for the both the three and six months was driven by an increase in interest rates on our interest bearing bank accounts.

Interest expense

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.

Interest expense was $ 28.2 million for the three months ended June 30, 2025 , an increase of $ 8.1 million or 40 % compared to the same period in 2024 .

Interest expense was $ 47.6 million for the six months ended June 30, 2025 , an increase of $ 12.6 million or 36 % 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 Convertible Notes during the first quarter of 2025 to the Credit Facility.

Foreign currency exchange loss, net

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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 $ 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 .

We recorded net foreign currency exchange loss of $ 5.7 million and $ 23.8 million for the three and six months ended June 30, 2025 , compared to net foreign currency exchange income of $ 1.5 million and loss of $ 11.0 million for the same periods in 2024 .

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

1 unchanged sentence

Other gains (losses)

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

The other gains mainly relate to a discrete non-cash investment gain.

INCOME TAX EXPENSE

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.

The Company's effective income tax rate was 25.6 % and 23.0 % for the three and six months ended June 30, 2025 , compared to 32.0 % and 33.5 % for the same period ended June 30, 2024 .

The Company's effective income tax rate for the three months ended June 30, 2025 was higher than the applicable statutory income tax rate of 21% as a result of certain of its foreign earnings being subject to higher local statutory tax rates.

Our effective income tax rate for the three months ended June 30, 2024 was higher than the applicable statutory income tax rate of 21% mainly as a result of certain foreign earnings being subject to higher local statutory tax rates and our U.S.

deferred tax activity.

NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

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EFT - Pakistan

Unidos Co., Ltd.

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 .

Net income attributable to Euronet was $ 97.6 million for the three months ended June 30, 2025 , an increase of $ 14.5 million or 17 % compared to the same period in 2024 .

The increase in net income was primarily attributable to the $ 88.1 million increase in revenues, largely driven by successful business operations.

The increased revenues led to a $ 48.3 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.

The increase in gross profit was partially offset by a $ 15.5 million increase in salaries and benefits expense, an $ 8.4 million increase in selling, general and administrative expenses, an $8.1 million increase in interest expense and a $7.2 million loss in foreign currency exchange.

Net income attributable to Euronet was $ 136.0 million for the six months ended June 30, 2025 , an increase of $ 26.7 million or 24 % compared to the same period in 2024 .

The increase in net income was primarily attributable to the 146.6 million increase in revenues, largely driven by successful business operations.

The increased revenues led to a $ 79.5 million increase in gross profit.

The increase in gross profit was partially offset by a $ 24.9 million increase in salaries and benefits expense, a $ 19.5 million increase in selling, general and administrative expenses, a $12.6 million increase in interest expense and a $12.8 million loss in foreign currency exchange.

LIQUIDITY AND CAPITAL RESOURCES

Working capital

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.

As of June 30, 2025 , we had working capital of $ 601.1 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 .

Our ratio of current assets to current liabilities was 1.15 and 1.25 at June 30, 2025 and December 31, 2024 , respectively.

We require substantial working capital to finance operations.

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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 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,

As of June 30, 2025 , we had $ 937.4 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 $ 293.6 million from $ 643.8 million as of December 31, 2024 to $ 937.4 million as of June 30, 2025 as a result of the increase in the number of active ATMs as of June 30, 2025 compared to December 31, 2024 .

The Company has $ 1,329.3 million of unrestricted cash as of June 30, 2025 compared to $ 1,278.8 million as of December 31, 2024 .

Including the $ 937.4 million of cash in ATMs at June 30, 2025 , we have access to $ 2,920.9 million in available cash, and $ 884.2 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 six months ended June 30, 2025 and 2024 (in millions):

Six Months Ended June 30,

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

5 unchanged sentences

Operating activity cash flow

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.

Cash flows provided by operating activities were $ 184.6 million for the six months ended June 30, 2025 compared to $ 212.2 million for the same period in 2024 .

The net increase in operating cash flows was primarily due to an increase in net income and partially offset by a decrease in deferred income taxes as a result of our U.S.

deferred tax activity on the repurchase of Convertible Notes and decrease in other working capital fluctuations.

Investing activity cash flow

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.

Cash flows used in investing activities were $ 88.9 million for the six months ended June 30, 2025 compared to $ 155.2 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 Convertible Note Receivable issued to Marker Trax Digital, LLC in 2025.

Financing activity cash flow

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.

Cash flows provided by financing activities were $ 79.2 million for the six months ended June 30, 2025 compared to cash flows provided by financing activities of $ 304.4 million for the same period in 2024 .

Our borrowing activities on the Credit Facility for the six months ended June 30, 2025 consisted of net borrowings of $ 444.0 million compared to net borrowings of $ 140.3 million for the same period in 2024 .

The increase in net borrowings on the Credit Facility, during the six months ended June 30, 2025 , is 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 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.

Fluctuations in foreign currency exchange rates impacted cash, cash equivalents, and restricted cash by $ 434.8 million and ($ 558.7 ) million for the six months ended June 30, 2025 and 2024 , respectively.

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

10 unchanged sentences

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.

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.

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 Company, 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.

As of June 30, 2025 , the stand-by letters of credit interest charge was 1.25% per annum.

As of June 30, 2025 , we had $ 965.1 million of borrowings and $ 50.7 million of stand-by letters of credit outstanding under the Credit Facility.

The remaining $ 884.2 million under the Credit Facility was available for borrowing.

5 unchanged sentences

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

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 June 30, 2025 , $33.2 million of the Convertible Notes remain outstanding.

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 March 31, 2025 , we have outstanding € 600.0 million ( $ 648.8 million ) principal amount of the Senior Notes.

As of June 30, 2025 , we have outstanding €600 million ($ 707.2 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 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 .

Uncommitted Credit Agreement - On June 20 , 2025 , the Company entered into an Uncommitted Loan Agreement, fully drawn and outstanding at June 30, 2025, for the sole purpose of providing vault cash for ATMs, that expires no later than June 19, 2026 .

The amount of this Uncommitted Line of Credit shall be no more than (i) on or before September 30, 2025, Four Hundred Million Dollars $400 million and (ii) on and after October 1, 2025, $250 million.

The loan had an outstanding balance of $ 400 million at June 30 , 2025 .

The loan is a Prime Rate Loan, a Daily SOFR Rate Loan plus 1.00 % 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.

The weighted-average interest rate from loan inception date to June 30 , 2025 , was 5.32 %.

On June 27, 2025, the Company entered into an Uncommitted Loan Agreement for $300 million, fully drawn and outstanding at June 30, 2025, for the sole purpose of providing vault cash for ATMs, that expires no later than November 30, 2025.

The loan is a Prime Rate Loan, a Daily Simple SOFR Rate Loan plus 1.25% 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 June 30, 2025 was 5.54%.

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

1 unchanged sentence

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 .

As of June 30, 2025 $23.8 million was borrowed under this facility.

Including the Malaysian facility, there was a total of $ 36.2 million outstanding under our subsidiaries credit lines and overdraft facilities as of June 30, 2025 .

Other uses of capital

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

Capital expenditures and needs - Total capital expenditures for the six months ended June 30, 2025 were $ 57.8 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.

8 unchanged sentences

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.

As a consequence of this inflationary period, we expect to see increasing expenses forthcoming.

We continually review inflation and the functional currency in each of the countries where we operate.

2 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 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 .

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 March 31, 2025 .

As of June 30, 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 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 .

As of June 30, 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