Key Highlights

  • Third-quarter revenue reached USD 1.161 billion, up 1% from a year earlier and 3% in constant currency.
  • Adjusted EPS of USD 3.55 fell 2% from USD 3.62, while adjusted EBITDA slipped 8% to USD 226.1 million.
  • Cross-Border Payments adjusted EBITDA dropped 34% to USD 43.6 million, even as digital transactions rose 34% to 8.1 million.
  • New 2026 guidance points to USD 4.375 billion of revenue, USD 725 million of adjusted EBITDA and 10% EPS growth.

Cross-Border Payments Absorbs the Hit

Euronet (NASDAQ:EEFT) reported third-quarter revenue of USD 1.161 billion on Tuesday, up 1% from a year earlier and 3% in constant currency. Operating income fell 12% to USD 171.6 million. Net income attributable to the company was USD 113.6 million, or USD 2.53 per diluted share, against USD 2.75 a year earlier.

The shortfall sat in one segment. Cross-Border Payments revenue declined 5% to USD 431.0 million, and operating income dropped 37% to USD 37.3 million. Adjusted EBITDA of USD 43.6 million computes to a 10.1% margin, against 14.6% in the prior-year quarter, as lost revenue and about USD 6 million of added digital investment flowed through.

Chairman and Chief Executive Officer Michael J. Brown tied the pressure to U.S. immigration policy and weaker global conditions, and said it has lasted longer than the company had planned for.

Digital Lines and Other Segments Grow

Payments Infrastructure revenue rose 7% to USD 437.9 million, or 9% in constant currency, helped by merchant acquiring, Ren sales and the CoreCard acquisition completed in the fourth quarter of 2025. Installed ATMs rose 4% to 59,688. The epay segment grew revenue 3% to USD 294.7 million, with transactions up 4% to 1,191 million.

Revenue from the digital accelerators identified at the May Investor Day grew 33% over nine months and made up 26% of year-to-date revenue, up from roughly 21% in 2025. Digital transactions in Cross-Border Payments rose 34% to 8.1 million, while total segment transactions slipped 2% to 45.3 million. The finance chief said about three-quarters of digital customers are new to the franchise.

Lower Targets and a Leaner Balance Sheet

Euronet now guides to about USD 4.375 billion of revenue, about USD 725 million of adjusted EBITDA and adjusted EPS growth of about 10% for 2026. The figures replace targets set in May and reflect immigration-related pressure in several corridors, broader economic strain and currency translation. Management said the outlook assumes a modest sequential improvement in Cross-Border Payments in the fourth quarter, similar to the narrowing of the constant-currency revenue decline from 5% in the second quarter to 4% in the third.

Epay faces a separate change: a large PC gaming platform is ending sales of physical gift cards at the end of October, which management called a fourth-quarter headwind. Management pointed to a major game release in mid-November as a partial offset but said it does not forecast revenue around a single title.

Total indebtedness fell USD 476.7 million in the quarter to USD 2,177.3 million, which the company linked to the seasonal return of ATM cash and operating cash flow. Euronet repurchased USD 50 million of stock, about 690,000 shares, and signed a letter of intent with Diebold Nixdorf aimed at U.S. ATM outsourcing.

Cross-Border Markers to Follow

The next data points include constant-currency Cross-Border revenue against the 4% decline in the third quarter, the digital share of transactions, and segment adjusted EBITDA margin relative to 10.1%. For epay, the fourth-quarter effect of the gift card change can be read against transaction growth of 4%.

The finance chief said the 10% to 15% growth framework from the Investor Day is not ruled out for 2027, with a lean toward the lower end, and cited U.S. midterm elections and European conditions as unsettled factors.