Borderless By Design
i
EURONET 2024 ANNUAL REPORT
Borderless By Design
ii
Euronet | 2024 Annual Report
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Company Overview . . . . . . . . . . . . . . . . . . . . . . 2–9
Shareholder Letter . . . . . . . . . . . . . . . . . . . . .10–11
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . 12
Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . 13
Business Segments
• EFT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
• epay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
• Money Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Solutions
• Ren Payments Platform . . . . . . . . . . . . . . . . . 17
• Dandelion Cross-Border Network . . . . . 18
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . 19
10-K Report . . . . . . . . . . . . . . . . . . . . . . . . . . . 20–128
Reconciliation Table . . . . . . . . . . . . . . . . . . . . . 129
25+ Years Employees . . . . . . . . . . . . . . . 130–131
Looking Forward . . . . . . . . . . . . . . . . . . . . . . . . . 132
Office Locations/Currencies . . . . . . 132–133
About the Flags
As part of the Euronet logo, the
Euronet flag represents our global
coverage in 200 countries and
territories. In this report, we use
the flag to symbolize the expansive
geographic reach of our payments
network.
On the Cover
With faster smartphones, expansive
communication networks and
Euronet’s cross-border payments
processing expertise, sending and
receiving money could happen
anywhere — from the center of a large
city to the solitude of a mountaintop.
CONTENTS
Euronet | 2024 Annual Report
Borderless By Design
1
As the world of payments evolves, we will do what we have
always done — enable businesses and consumers to send
and receive money to and from anywhere on Earth. This
adaptability is why we say we are Borderless By Design.
Our technology is intentionally built to serve the needs
of a global, FX-driven economy — without barriers and
without limitations.
2
Euronet | 2024 Annual Report
Digital Content > Through our
partnerships with gaming brands
and popular super apps, credits
can be purchased quickly so that
the gaming action can continue
uninterrupted.
Seamless Payments,
Global Impact
From daily purchases to major
business deals, our products and
services enable people to pay the
way they want while our network and
technology work behind the scenes
to make transactions effortless,
everywhere. This section of our annual
report highlights some of the many
ways we move money worldwide.
Realizing Our Vision
Since 1994, Euronet has remained committed to increasing
financial participation in the global economy while also
growing into a financially strong, geographically diverse,
technically adept and organizationally stable global leader
in payments processing and cross-border transactions.
From then to now, we have maintained the
entrepreneurial spirit required to innovate
and thrive in a fast-paced, regulated global
economy.
That spirit, combined with our industry-
leading technical infrastructure and
knowledge explained on the following pages,
will ensure we can move money everywhere
with any payment method for years to come.
• Processing Prowess, page 3
• Cross-Border Expertise, page 4
• Scalability and Consistency, page 5
• Simple, Secure and Convenient, page 6
• Resilience, page 7
• A Network of Networks, page 8
• Borderless By Design, page 9
3D Secure (3DS) > Infinitium, a
Euronet company, keeps money
moving during e-commerce
and card not present (CNP)
transactions by addressing
fraud and reducing the risk of
unauthorized transactions.
WAYS WE MOVE MONEY
Borderless By Design
3
Branded Payments > Money moves from branded payments
(gift cards) to accounts to buy digital content such as movies,
games and music thanks to Euronet business segment epay
and its global distribution network featuring the world’s
largest brands and retailers.
In locations such as Greece, Euronet enables merchants
to accept payments from customers who are visiting from
all over the world.
Issuing > Issuing, the process and infrastructure behind credit
and gift cards, is a core service of Euronet offered to banks,
retailers and brands in numerous markets and geographies
across the company. Euronet provides physical and digital
closed-loop cards that are redeemable by designated
merchants and open-loop cards that can be used anywhere
payment schemes such as Visa and Mastercard are accepted.
Processing Prowess
We process billions of transactions each year for our business segments and their unique
use cases. Our payment solutions serve consumers, banks, governments, fintech companies
and businesses of all sizes worldwide.
Whether it’s a tap at a checkout, an online purchase, an
ATM withdrawal or a digital wallet transfer, we ensure
money moves smoothly and reliably. Our network manages
everything from card and digital wallet payments to real-
time and cross-border transactions. Regardless of how
people choose to pay — with physical or digital methods —
our network and processing technologies make it possible.
Reliability is at the heart of our operations. Our
infrastructure is designed to handle high transaction
volumes while security remains a top priority. We employ
advanced fraud detection and encryption to safeguard
transactions from risks, all while ensuring that payments
are fast and seamless.
We support multiple currencies and local payment methods,
so transactions proceed smoothly whether someone is
using a card in New York, making a bank transfer in London,
or utilizing a mobile wallet in Singapore. Companies looking
to expand into new markets trust us to manage their
payments because we understand local regulations and
customer preferences.
For 30 years, we have been helping our own business and
our customers’ businesses grow by making payments
more efficient. As the industry evolves, we will continue
to innovate, finding faster, safer and more flexible ways to
process transactions.
4
Euronet | 2024 Annual Report
Whether a company is paying a supplier in another country,
a traveler is making purchases abroad or an immigrant is
sending remittances to family members, these transactions
require efficient, secure and cost-effective solutions.
Often, these payments involve foreign exchange (FX),
where one currency is converted into another to complete a
transaction. Given the dynamic nature of global currencies,
managing FX effectively is crucial to ensuring smooth and
predictable international payments.
Our cross-border transaction services generate revenue
through multiple digital and physical channels. We facilitate
payments for businesses and individuals, earning revenue
from transaction fees, FX conversion and competitive
pricing structures. Our network also enables financial
institutions to provide seamless international payment
capabilities to their customers.
According to the 2024 McKinsey Global Payments Report, the
global payments industry handled 3.4 trillion transactions
in 2023 with FX playing a critical role. As the world becomes
increasingly interconnected, Euronet remains at the
forefront, enabling frictionless cross-border transactions
and FX solutions that drive global growth.
Central Bank > Money moves in real time
primarily through QR code payments within the
infrastructure of countries’ central banks and
payment networks. In India and Mozambique,
Euronet’s Ren payments technology plays an
integral role in switching and processing the
billions of these transactions that flow through
these networks annually.
Casino Credit > Money moves in the
form of virtual markers, or credit, to
casino patrons in the United States
through Euronet’s investment in
Marker Trax and Koin.
Euronet’s capabilities include business-to-business
transactions that are primarily managed through the
Xe app and the Dandelion network.
Cross-Border Expertise
Seamless cross-border transactions are essential for global commerce, travel and digital
payments. Since our inception, Euronet has been a leader in facilitating the movement of
money internationally, leveraging our regulated network and expertise to connect businesses,
individuals and financial institutions worldwide.
Remittances > Money moves through
remittance payments that Euronet
business segment Ria Money Transfer
delivers to its app, digital wallets, bank
accounts or its approximately 600,000
locations worldwide for cash pickups.
WAYS WE MOVE MONEY
Borderless By Design
5
Mobile Minutes > Money moves with
the pace of mobile phone users by
distributing mobile minute top-ups and
managing activations through mobile
apps and retailers across the globe.
Scalability and Consistency
Moving money across borders and using any payment method in real time requires more than
just technology — it demands significant financial scale and stability. While many payment
companies and banks can process transactions within a single country or region, very few can
operate on a truly global level.
Our payment network extends to approximately 200 countries
and territories, handling billions of transactions annually
across diverse channels such as point-of-sale payments,
e-commerce, digital wallets, ATM withdrawals, card issuing
and more. This extensive scale is supported by our robust
financial foundation, which enables us to manage high
transaction volumes while ensuring reliability and security.
Unlike smaller providers, whose capital limitations or
geographic restrictions often hinder operations, we have
developed a regulated network that businesses, banks,
fintechs and consumers can rely on in any market. Our
financial strength allows us to invest in resilient, high-
performance systems that ensure payments are processed
instantly — without delays or disruptions.
This global capability empowers us to fulfill our mission
of making it possible for anyone, anywhere, to send and
receive money within minutes using their preferred
payment method.
Acquiring > Euronet Merchant Services
enables retailers and webshop owners to
accept card and digital payments through
popular networks such as Mastercard, Visa,
UPI, American Express and Diners Club as
well as Apple Pay, Google Pay, Alipay and
other digital wallets.
Rewards and Incentives > Whether to
motivate employees, promote customer
loyalty or drive special sales promotions,
our epay and cadooz divisions provide
full-service incentive solutions that
connect people to brands and products
they use and desire.
2024 Highlights
Total Revenue
$4 B
Growth in
Operating Income
16%
Growth in
Adjusted EPS
15%
Operating Income
$503 M
Euronet Revenues (1995–2024)
6
Euronet | 2024 Annual Report
Simple, Secure and Convenient
Consumers and businesses have different preferences for how they pay shaped by geography,
banking access and local habits.
Some rely on cash and credit cards while others prefer
digital wallets and QR codes. Subscription services need
automated payments. Vendors in some areas expect instant
fund transfers, and global merchants require support for
cross-border transactions.
Behind the scenes, the technology required to process these
financial transactions is complex and requires an advanced
technical infrastructure, a regulated environment and
experienced people to build and maintain it.
However, on the payor side of the Euronet network, the
process is simple. Whether a person is paying with cash at
one of our physical touchpoints or through one of our digital
mediums, our network provides a frictionless experience.
Our role is to provide access to funds and bridge the gaps
between payment systems so businesses can focus on
growth and consumers can transact without friction.
Whether it’s adapting to new payment innovations or
supporting legacy methods that remain essential in
certain markets, we ensure that no one is excluded
from the financial ecosystem.
In a world where payments continue to evolve, flexibility
is critical. The ability to pay and be paid should never be
a barrier. That’s why we build for the future while making
payments effortless today. Whether a person’s financial
world is built on cards, bank accounts, cash or emerging
payment methods, we connect it all — so they can transact
in the best way for them.
To support these extensive operations and safeguard
against potential risks, we are committed to sustaining a
strong culture of compliance. We have created a robust
and effective anti-money laundering program that not only
complies with specific laws against money laundering and
terrorist financing, but also has been specially designed to
counteract the risks of our industry.
Tax Free > Tax-free shopping in the
European Union allows non-EU residents to
get a refund on the Value Added Tax (VAT)
they pay on goods during their visit. Euronet
Merchant Services manages this process
for retailers and consumers, providing these
refunds through the epay Tax Free brand.
ATM as a Service > Banks outsource
the operation, maintenance and
monitoring of their ATMs to Euronet to
improve their costs by leveraging our
ATM expertise and scale of operations.
WAYS WE MOVE MONEY
Money Services > Customers can
pay bills, top up their mobile phones,
cash checks, and deliver and collect
remittance payments at more than
600,000 Ria and Ria agent stores.
Borderless By Design
7
Resilience
For 30 years, our company has established itself as a leader in payments processing and cross-
border transactions on a global scale. Our ability to generate revenue across diverse payment
flows — such as remittances, international business transactions, branded payments and
everyday consumer purchases at a retail point-of-sale terminal — has allowed us to remain
strong in an ever-evolving financial landscape.
By building a network that facilitates the efficient and
reliable movement of money, we have positioned ourselves
as a dependable resource for financial institutions,
businesses and consumers worldwide.
Diversity is at the core of our business. With approximately
11,000 employees and 67 global office locations, we
understand the local nuances that influence financial
behavior in different markets. Our global payment network
extends to billions of endpoints, including bank accounts,
digital wallets, ATMs, retailers and money transfer locations.
This ensures that businesses and consumers can send
and receive money worldwide regardless of geography or
economic situation.
Our durability is equally crucial. Over the past three decades,
we have successfully navigated significant economic
and regulatory challenges while maintaining a consistent
growth trajectory. From various global financial crises to
evolving regulatory landscapes, we have continually adapted
our strategies to provide reliable transaction processing
services. Our business has remained operational, and our
workforce has stayed intact, ensuring financial transactions
were supported when and where they were needed most.
Our resilience through these challenges underscores the
robustness of our infrastructure, the expertise of our
teams, and the flexibility of our business model. As financial
ecosystems continue to evolve, we are dedicated to
facilitating seamless transactions — anytime, anywhere,
and in any form that consumers and businesses require.
Transaction Monitoring > Skylight, from our epay segment, is an
anti-financial crime solution that monitors money movement for
banks, retailers and other money services businesses. Skylight
streamlines anti-money laundering (AML), fraud prevention, and
regulatory reporting processes, empowering compliance and risk
professionals with Al-powered technology and intuitive no-code tools.
Remittance payments can be made through our Money Transfer
segment in several different ways, including direct deposits into
the billions of connected bank accounts and digital wallets.
Business Payments > High-value cross-border
business payments move in minutes to virtually any
location in any currency through the Xe app and the
Dandelion payments network from Euronet’s Money
Transfer business segment.
8
Euronet | 2024 Annual Report
1994
1997
2003
2007
Euronet founded
Initial public offering
epay acquired
Ria
Money Transfer
acquired
Early Years: We enabled
ATM withdrawals for
consumers and offered
ATM outsourcing for
banks.
Expansion: While growing our ATM and payments
processing business, we introduced prepaid mobile
top-ups at ATMs, replacing scratch cards with
electronic top-ups.
Strategic Growth: We acquired
companies with telco and
merchant relationships, forming
our epay segment and accelerating
our branded payments business.
A Network of Networks
Euronet generates revenues by moving funds through the regulated networks of our business
segments, which have built these networks and technologies to provide solutions for the use
cases in their markets. Collectively, the networks give Euronet a competitive advantage in the
market, providing a wide range of business and consumer transactions.
The networks also make Euronet an attractive partner to
others in the financial services industry. In fact, there are
many examples within Euronet’s thousands of banking,
fintech and retail customers who utilize more than one
product or service from our segment networks.
These segment networks include:
Electronic Funds Transfer (EFT) Network: Our EFT network
processes payments through retail point-of-sale terminals
and supports a global estate of Euronet-owned and bank-
outsourced ATMs. EFT provides various products and services
in addition to and through these terminals and ATMs, such as
card issuing and Dynamic Currency Conversion (DCC), that
enable us to generate revenues in addition to interchange
and transaction fees. The network provides cash access
worldwide and supports billions of transactions annually,
improving financial inclusion in both urban and remote areas
and reliable merchant acquiring, while ensuring the highest
level of security for our users.
epay Network: Our epay network connects consumers with
leading global retailers and brands, facilitating the purchase
of digital and physical gift cards and mobile airtime. This
network offers flexibility for online and mobile shopping
as well as in-store redemption, enhancing customer
experiences with the brands they know and trust. In addition,
the epay network supports epay-owned gift cards for
consumers and includes platforms and technologies that
deliver specific solutions to the market, such as epay’s
Skylight platform for AML monitoring and fraud prevention.
Money Transfer Network: Our money transfer network
utilizes our high level of attention to compliance while
facilitating fast and secure transfers across borders. Users
can send money to digital wallets, bank accounts or cash
pickup at various locations, making it essential for families
and businesses involved in global trade and remittance
payments. Through this network, consumers and businesses
transfer funds with our Ria Money Transfer and Xe products
and services. Banks and fintechs can also integrate this
real-time, cross-border payments functionality in their
applications via API through our Dandelion network.
ATM & Cash
Withdrawals
Credit & Debit
Cards
POS Terminals
Gift Cards &
Mobile Top-Ups
EMV Chips
Barcode-Based
Mobile Payments
QR Code
Payments
>>
>>
>>
>>
>>
>>
>>
EURONET: EVOLVING WITH THE PAYMENTS LANDSCAPE
Borderless By Design
9
2015
2019
2021
2024
Xe acquired
Ren launches
Dandelion launches
Euronet celebrates 30 years
Added Ria, Xe and FX: We acquired Ria
and added a foreign exchange component
to our offerings, leading to additional use
cases such as Dynamic Currency Conversion.
After more acquisitions, we added digital
capabilities with Xe.
Mondernization: To future-proof
our processing in a rapidly chang
ing real-time digital payments
landscape, we launched Ren, an
innovative microservices-based
platform.
C2C to B2B: Now
the second-largest
C2C money transfer
company, we launched
Dandelion for global
B2B payments.
Contactless
Tap-to-Pay (NFC)
Digital
Wallets
Real-Time
Payments
Blockchain &
Cryptocurrencies
Buy Now, Pay Later
& Subscriptions
Open Banking &
API Payments
Biometric
Payments
The Next Generation
of Payments
>>
>>
>>
>>
>>
>>
>>
Borderless By Design
From our earliest days facilitating cash withdrawals at ATMs to today’s biometric-enabled
transactions, our ability to process payments and cross-border transactions at scale has driven
sustained revenue growth.
As payment methods have evolved, we have remained at the
forefront, ensuring that businesses, financial institutions,
and consumers can move money seamlessly — wherever,
however and in whatever form they choose.
A History of Payment Evolution
When we launched 30 years ago, cash dominated global
commerce, and we ensured access through our ATM
network. As card-based payments gained traction, we
powered transaction processing for banks and fintechs,
keeping pace with rising consumer adoption. The past
decade saw rapid innovation: barcodes enabled mobile
payments, QR codes revolutionized digital wallets, and
now, biometric authentication — fingerprints and facial
recognition — is becoming a mainstream verification method.
Through every phase, we have been on the leading edge of
innovation, integrating new technologies while ensuring the
security, speed and reliability our customers demand.
No matter how payment methods shift, one constant
remains: the need for domestic payments, cross-border
transactions and currency exchange. Industry projections
indicate continued expansion of both domestic and
cross-border payment volumes, driven by e-commerce,
remittances and business-to-business transactions. These
trends reinforce what we have always known — efficient,
scalable FX and transaction processing will always be
essential to the global economy.
Borderless By Design: Future-Proofing Payments
Our approach ensures we are ready for whatever comes next.
We have architected our technology to be flexible, scalable,
and interoperable, intending to integrate it seamlessly
with emerging innovations. While no one can predict with
certainty what payment methods will dominate in five or ten
years, we are confident our infrastructure will support it.
In 1994, our mission was to provide access to bank accounts through 300 ATMs in Central Europe.
We achieved that goal and many others, creating a global financial network for processing today’s
domestic and cross-border transactions that can also adapt to the ever-changing payments
landscape. While ATM ownership was 100% of our business 30 years ago, it now represents
less than 20%, demonstrating how we’ve evolved with the future of payments. Today, we are
delivering on a more ambitious goal: being truly Borderless by Design, enabling the secure,
cost-effective movement of money to anyone on Earth within minutes.
10
Euronet | 2024 Annual Report
Reflecting on Success, Embracing the Future
Greetings and welcome to the 2024 edition of our annual
report, commemorating 30 years of Euronet.
This past year, we celebrated our three decades of success
on several occasions with events across our global offices.
During these times, I was often asked to reflect on our
incredible path from 1994 to now. I would like to share some
of these thoughts and provide a vision
for our future.
What began with a business plan
to establish ATM operations in
Hungary has evolved into a thriving
global enterprise with nearly 70
offices and a team of approximately
11,000 dedicated payments experts.
This journey has been defined by
resilience, innovation and a relentless
commitment to excellence — values
that continue to propel us forward.
A group of about 300 key company
leaders gathered in Las Vegas to
celebrate this milestone, acknowledge
our progress, share insights and
chart a course for the future.
These celebrations were more than
just reflections on our past; they
reaffirmed our commitment to pushing
boundaries and embracing new opportunities.
Reflecting on our journey, our progress has been truly
remarkable. Our latest financial results highlight our success,
exceeding even our own ambitious expectations in some
areas. We achieved another impressive year of growth,
including a 15% year-over-year increase in adjusted earnings
per share. Furthermore, our 2024 results set new records
across all consolidated financial metrics, with operating
income exceeding half a billion dollars — a 16% increase
compared to the previous year.
As part of our year-end earnings call preparations, we
examined our compounded annual revenue growth rate,
and the results were staggering: a 37% compounded annual
growth rate over the last three decades. This achievement
is particularly remarkable considering the challenges we
have faced along the way, including wars, a global financial
crisis, demonetization in India and more than 10 years
without interchange increases in our
largest European markets. Even in the
uncertainty of the 2020 pandemic,
when the world came to a halt, two
of our three business segments
continued to expand, and we
generated over $100 million in positive
cash flows from operations under
extreme conditions.
The foundation of our sustained
success lies in the guiding principles
that have shaped our company
since its inception. Our ability to
consistently deliver strong double-
digit earnings growth is not just a
function of financial strategy — it’s
a testament to the adaptability,
innovation and commitment that
define our people and our approach
to business. Credit also goes to our
position in the payments industry. We operate in a vast
and dynamic market with multiple revenue streams, each
contributing to our growth.
Our segments and products — including EFT with its ATMs,
card acquiring and processing services, the Ren payments
platform, the Dandelion cross-border payments network,
Money Transfer with Ria and Xe, and epay — have been
expanding, reinforcing our position as a diversified financial
technology leader.
”As we look to the future, we remain steadfast in our
commitment to driving innovation, growth and operational
excellence. While the business landscape is ever-changing,
our history demonstrates our ability to navigate challenges and
emerge stronger. This adaptability will be a key asset as we set our sights
on the next 30 years.”
SHAREHOLDER LETTER
Borderless By Design
11
Of note, our Euronet-owned ATM network
revenue in our EFT segment has declined
from 25% of our $2.8 billion total revenue in
2019 to 19% of our $4 billion total revenue
in 2024, yet it still saw a healthy 9% growth
during the year. So, while Euronet-owned
ATM revenue is growing, our other revenue
streams are growing faster, illustrating an
evolution of our business. As I mentioned
during the year-end earnings call, I will always
be proud of our heritage, yet it’s clear we are
no longer just an ATM business.
During the same call, I re-emphasized how
our business model has evolved to rely upon
two fundamental revenue pillars, both of
which will continue to expand as the demand
for global payment solutions increases.
These include:
• Payment and Transaction Processing:
We enable high-volume transactions for
banks, merchants and brand partners. By
continuously broadening our service offerings, we
remain ahead of shifting market demands and
technological advancements.
• Cross-Border and Foreign Exchange (FX): We facilitate a
variety of FX-related use cases and deliver these services
through a mix of owned and third-party channels. We
also offer cash and digital networks to ensure seamless
consumer and business payment experiences globally.
As we look to the future, we remain steadfast in our
commitment to driving innovation, growth and operational
excellence. While the business landscape is ever-changing,
our history demonstrates our ability to navigate challenges
and emerge stronger. This adaptability will be a key asset as
we set our sights on the next 30 years.
In closing, I again want to take this opportunity to express my
deepest gratitude to our employees, customers, partners
and shareholders. Your unwavering dedication and support
have been instrumental in shaping Euronet into the global
leader it is today. Together, we have built a company defined
by success, resilience and forward-thinking innovation.
As we embark on the next phase of our journey, I am excited
about the endless possibilities ahead. With our exceptional
team, strong values and strategic vision, I am confident that
we will reach even greater heights in the years to come.
Thank you all for being an integral part of our story.
Sincerely,
Michael J. Brown
Chairman, CEO and Founder
Euronet
Total
Revenue (2024)
Total Bank Accounts
Reached*
Total Funds Through
Our Network (2024)
$4 B
4.1 B
$209 B
Total Transactions
Processed (2024)
Total Mobile Wallet
Accounts Reached*
Total Users
of the Xe App*
16 B
3.1 B
116 M
Total ATMs
Owned and Operated*
Total EFT
Point-of-Sale Terminals*
Total epay
Point-of-Sale Terminals*
55 K
1.2 M
777 K
* As of December 2024
12
Euronet | 2024 Annual Report
$395
$565
$302
$619
2023
$679
2024
2022
2021
2020
$223
$385
$153
$432
2023
$503
2024
2022
2021
2020
10,443
12,424
7,625
5,796
15,975
2024
2023
2022
2021
2020
$1,256
$1,244
$1,446
$1,250
$1,229
2024
2023
2022
2021
2020
$5,835
2024
2023
2022
2021
2020
$1.32
$4.41
$(0.06)
$5.50
2023
$6.45
2024
2022
2021
2020
$3.69
$6.51
$7.46
2023
$8.61
2024
2022
2021
$2.82
2020
$2.99
$3.36
$2.48
$3.69
2023
$4.00
2024
2022
2021
2020
$4,744
$5,404
$4,927
$5,894
FINANCIAL HIGHLIGHTS
REVENUE
($ BILLIONS)
DILUTED
EARNINGS (LOSS)
PER SHARE
($ DOLLARS)
ADJUSTED
EARNINGS
PER SHARE*
($ DOLLARS)
ADJUSTED
OPERATING
INCOME*
($ MILLIONS)
TOTAL
EQUITY
($ MILLIONS)
TOTAL
ASSETS
($ MILLIONS)
ADJUSTED
EBITDA
($ MILLIONS)
TRANSACTIONS
(MILLIONS)
2024 At-a-glance
* On page 129, we have defined adjusted operating income, adjusted EBITDA and adjusted earnings per share terms and provided a reconciliation of these non-GAAP financial measures to
their most directly comparable U.S. GAAP financial measure.
Note: We believe that adjusted operating income, adjusted EBITDA and adjusted earnings per share provide useful information to investors because they are indicators of the strength and
performance of our ongoing business operations. While certain of these calculations are used more fully to describe the results of the business, others are commonly used as a basis for
investors, analysts and credit rating agencies to evaluate and compare the operating performance and value of companies within the payment processing industry.
Borderless By Design
13
Euronet had an outstanding year in 2024, ending
with a strong fourth quarter that pushed us to
record results across all key financial metrics. Each
of our business segments leveraged development
in core technologies, diversification of products
and services and geographic expansion to achieve
record consolidated revenues of $4 billion for the
full year, an 8% increase from 2023.
We also generated records of an adjusted operating
income of $503 million and an adjusted EBITDA
of $679 million. The revenue growth fueled the
increase in our adjusted earnings per share by 15%,
reaching $8.61, up from $7.46 in the previous year.
These strong results continued to validate our
abilities to generate revenue and maximize profits
in our core payments and transaction processing
areas for banks, fintechs and merchants, as well
as cross-border money movement and foreign
exchange (FX) services for business and consumer
payments.
The EFT Processing segment continued to
contribute significantly to our overall performance.
This segment benefited from increased
transaction volumes in our own ATM network,
payments processing, merchant services and
ATM-as-a-Service agreements with banks as well
as Dynamic Currency Conversion, Tax Free and
interchange fees.
The epay segment saw growth driven by higher sales
of digital media and mobile top-up products, bolstered by
strategic partnerships and the expansion of our distribution
network. Focusing on our own closed- and open-loop
products and SaaS-based solutions for compliance and
gift card program management continues to diversify the
segment’s revenue mix.
The Money Transfer segment experienced robust growth,
supported by increased transaction volumes and the
expansion of our Dandelion network. Our ability to serve
cross-border payments with physical (cash) and digital
origination and payout options continues to be a market
advantage, further enhanced by our focus on strategic
partnerships.
As it has always done, our strong balance sheet gave us the
ability to invest in all three business segments, enabling the
development of new products and investment in our global
networks that will serve as a growth driver moving forward.
The balance sheet and positive cash flow also enabled us to
reinvest approximately $265 million in the company through
stock repurchases during the year, following approximately
$375 million in stock repurchases in 2023.
In December 2024, we amended and extended our unsecured
revolving credit facility from $1.25 billion to $1.9 billion. The
maturity date was extended by five years and will expire in
December 2029. This extension highlights the strength of
our banking partnerships and provides us with enhanced
financial flexibility to support our growth initiatives.
Throughout 2024, we continued investing in strategic
initiatives to drive long-term growth. These initiatives
included expanding our digital capabilities, enhancing our
product offerings and pursuing strategic acquisitions. Our
focus on innovation and customer-centric solutions that
empower people to pay how they want to pay positioned us
well for future growth.
FINANCIAL OVERVIEW
A year of excellence generates record results and
charts a course for future prosperity
Revenue Mix*
2024 Revenue* | $3,998.2 M
32
% 19
% 37
% 12
%
Money
Transfer
13%
Margin
epay
12%
Margin
Euronet
Owned
ATMs
34%
Margin
Payments/
Processing
23%
Margin
42
% 29
% 19
% 10
%
Money
Transfer
epay
Euronet
Owned
ATMs
Payments/
Processing
Adjusted EBITDA Mix*
2024 Adjusted EBITDA* | $717.7 M
Percent Margin | 18%
2024 Segment Economics
REVENUE AND ADJUSTED EBITDA MIX
The following charts represent the Revenue and
Adjusted EBITDA profiles of each segment.
* Revenues, Adjusted EBITDA and Percent Adjusted EBITDA Margin by segment excludes
eliminations and expenses incurred by corporate services.
14
Euronet | 2024 Annual Report
In 2024, our Electronics Fund Transfer (EFT) segment
experienced significant growth and expansion. Overall,
EFT revenue increased by 10%, adjusted operating income
grew 24% and adjusted EBITDA rose 18% compared to the
previous year. This growth was driven by the expansion of
our Euronet-owned ATM fleet in new markets and a strategic
focus on expanding core services for banks and fintechs,
which can be categorized into five key areas: fee expansion,
real-time payment processing, card and point-of-sale (POS)
acquiring and ATM-as-a-Service opportunities.
Q1 Highlights
The first quarter saw continued growth in our merchant
services business, which has grown profits by over 300% in
the last three years. Our ATM optimization initiative improved
margins, and our expansion into new countries contributed
to our growth. Notably, our ATM estate in the Philippines
performed well compared to Q1 2023, thanks to the recovery
in travel. In Greece, we signed contracts with thousands
of merchants for POS terminals and softPOS solutions
and partnered with SOFTONE Group to provide integrated
merchant acquiring solutions. Additionally, our investments
in new markets during the pandemic showed positive returns
with significant contributions from these regions.
Q2 Highlights
Improved European travel trends, strong performance from
our merchant services business and effective expense
management drove the second quarter’s growth. We
launched ATMs in new markets such as Albania, Belgium and
Mexico. We also completed strategic acquisitions, including
Infinitium in Singapore and the Malaysian Electronic
Payment System (MEPS) ATM terminals of Payments Network
Malaysia Sdn Bhd (PayNet). Additionally, we introduced
international access fees, which were followed by further
launches in the second half of the year. Diversifying our
revenue sources, including non-tourist-related ATM and POS
transactions, also contributed to our strong performance.
Q3 Highlights
The third quarter’s growth was supported by a largely
recovered European travel season, continued growth in our
merchant services business and recent market expansions.
We added thousands of new merchants and saw growth
in new markets like Albania, Belgium, Mexico, Egypt,
Philippines and Morocco. We also rolled out domestic
direct access fees in several
countries and launched
international access fees
in Malta, Cyprus and Italy.
Introducing domestic access
fees in 10 new countries further
boosted our revenue potential.
Q4 Highlights
In the fourth quarter, growth
was driven by an extended travel
season in Europe and the addition
of thousands of POS terminals in
the merchant services business.
The segment’s installed ATMs at
the end of 2024 grew 5% over the
end of 2023 because of the net
addition of 1,729 Euronet-owned
ATMs, 773 new outsourcing ATMs
and the addition of 94 low-margin
ATMs in India.
BUSINESS SEGMENTS — EFT
EFT: Expansion of core services for banks, fintechs and
merchants results in double-digit growth across key metrics
Revenue
$1,161.2 M
Operating Income
$256.0 M
Adjusted EBITDA
$353.5 M
Transactions
11,424 M
2024 EFT Results
EFT grew revenues through its payment processing, merchant
services and ATM-related businesses in 2024.
Borderless By Design
15
epay ended 2024 with a strong fourth quarter, growing
revenue 8% with operating income and adjusted EBITDA
both increasing 10% compared to the fourth quarter of 2023.
For the full year 2024, the segment delivered year-over-year
6% growth in revenue and 3% growth in operating income
and adjusted EBITDA.
This success was fueled by the expansion of digital branded
content in the segment’s core business and with leading
digital wallets in Asia, payments processing, the addition
of new geographies and new business generated from past
strategic technology investments.
Q1 Highlights
epay’s geographic expansion was a significant focus in the
first quarter, with entry into two high-growth Asian markets.
Google Play credits launched in Vietnam, a country with
nearly 100 million people and a dominant Android user base,
making it a prime market for digital content. Simultaneously,
epay expanded Google Play distribution into Japan, the third-
largest gaming market globally, establishing a key digital
distribution partner to drive growth.
epay expanded its two-step gift card into Turkey while
Skylight, epay’s compliance-as-a-service solution, was
selected by World Banknotes Exchange to modernize
transaction monitoring for the money service business. epay
also expanded its relationship with the Paytm digital wallet
in India beyond Google Play distribution to include prepaid
mobile airtime, satellite TV recharges and bill payments.
Q2 Highlights
While quarterly results remained steady, epay’s core content
distribution business grew by 10% year-over-year. The
segment continued to gain traction through new product
offerings and expanded digital distribution. The segment
also continued its focus on expanding the market presence
of its own products, including Skylight, the Conductor
platform for managing gift card programs, the Prezzy open-
loop gift card and its Gift Station in-store and digital gift card
mall.
Q3 Highlights
A key quarter highlight was a new agreement with Take-Two
Interactive, positioning epay for long-term growth in the
video gaming industry.
epay also expanded its payment processing services, signing
a major deal with dm-drogerie markt (dm), one of Germany’s
largest drugstore chains with over 2,100 stores. In its first
month, epay processed over 30 million transactions for dm,
demonstrating the scalability of its platform. Additionally,
epay expanded its digital branded content offerings through
Satispay in Italy and ZaloPay in
Vietnam, both serving millions of
users in their respective regions.
Q4 Highlights
epay reinforced its position as a
leading omni-channel distributor
of branded payments through
strategic partnerships and
technological advancements. A
notable agreement was signed with
Blizzard Entertainment for global
code distribution, broadening
epay’s role in the digital gaming
ecosystem.
In digital payments, epay expanded
its relationship with Amazon
Pay in India, launching a new gift
card service that integrates local
retail brands into Amazon’s digital
payments ecosystem.
Finally, epay secured a major compliance partnership with
Evolve Bank, integrating Skylight for transaction monitoring
and anti-money laundering reporting. This deal underscored
epay’s growing influence in regulatory and compliance
solutions, positioning Skylight as a critical tool for financial
institutions.
BUSINESS SEGMENTS — EPAY
epay: Digital content distribution, payments processing
and product expansion highlight another year of growth
Revenue
$1,150.5 M
Operating Income
$129.9 M
Adjusted EBITDA
$137.2 M
Transactions
4,374 M
2024 epay Results
epay’s global network connects consumers with digital content
from the world’s leading brands.
16
Euronet | 2024 Annual Report
In 2024, our Money Transfer segment achieved significant
growth, reinforcing our leadership in the industry as the
second-largest money transfer company in the world
through our Ria Money Transfer and Xe brands. For the year,
revenue increased 8%, operating income grew 8% and
adjusted EBITDA rose by 5% compared to 2023.
Our money transfer services include diverse consumer and
business payment services, from bill payments and domestic
transfers to cross-border transactions and remittances.
These transactions are made through our physical and digital
channels, powered by our expansive Dandelion network, and
the channels provided by our partners worldwide.
Q1 Highlights
The first quarter set a strong tone for the year, with growth
primarily driven by an increase in cross-border transactions
and direct-to-consumer digital transactions. Additionally,
our team improved operating margins through effective cost
management.
Consumer preferences continued shifting toward account
deposits, and we responded by offering real-time services
in 98% of the markets where account deposits were
needed at that time. Our independent channel remained
a stronghold, supported by our thriving digital offering in
more than 20 countries.
During Q1, we expanded our global presence by signing 22
new correspondent agreements across 19 countries and
launching 16 new correspondents in 15 countries. Notable
partnerships included a collaboration with Nagad, a financial
services app that serves 85 million registered customers in
Bangladesh, and the introduction of a prepaid Mastercard in
Malaysia that is integrated with the Ria wallet.
Q2 Highlights
We supported growth in the segment during the quarter by
increasing marketing investments, which resulted in a surge
of direct-to-consumer digital transactions.
We reinforced our global network by launching partnerships
with Banco Activo in Venezuela, Al Fardan Exchange in the
UAE and Al Mulla in Kuwait. Our agreement with WeChat in
China also positioned us firmly in the world’s third-largest
remittance-receiving market. These initiatives solidified
our role in high-growth regions while expanding the reach
of our real-time payment capabilities.
Q3 Highlights
Strong revenue growth was seen in the third quarter. Cross-
border transactions remained the primary driver, while direct-
to-consumer digital transactions expanded significantly and
accounted for a growing share of total transactions.
U.S. outbound and international originated transactions
increased at a pace much faster than overall market growth.
Our transaction volume climbed,
supported by new partnerships,
including our collaboration with PLS
Financial Services, a major financial
services provider in the U.S.
Our digital strategy continued to
thrive, with digital transaction
volume increasing sequentially
throughout the year. By Q3,
new customer acquisitions had
accelerated, and digital payout
capabilities accounted for a
significant portion of our total
volume.
Q4 Highlights
The year ended on a high note
with continued growth in digital
transactions and, specifically, in
digital payouts. The successful
rollout of our PLS Financial
Services partnership continued
to drive significant volume, with transactions spanning
160 countries and territories.
Expanding our global footprint, we entered key outbound
remittance markets in Mexico, the Philippines and Thailand,
increasing our total addressable market. At the end of 2024,
we originated transfers in 60–65% of the global remittance
market, and we plan to expand to 80–85% in the coming
years, unlocking a significant growth opportunity.
BUSINESS SEGMENTS — MONEY TRANSFER, RIA AND XE
Money Transfer: Digital transactions, strategic partnerships
and geographical expansion drive segment growth
Revenue
$1,686.5 M
Operating Income
$201.0 M
Adjusted EBITDA
$227.0 M
Transactions
176.9 M
2024 Money Transfer
Results
The Money Transfer segment was successful in reaching
digitally-savvy consumers in 2024.
Borderless By Design
17
Since its launch in 2019, Ren has emerged as the most
versatile real-time point-of-sale (POS) and ATM switching
system, offering a modern payment processing solution
that is database-independent, platform-independent and
microservices-architected.
Designed to adapt to evolving technology, Ren is trusted
to power our payment processing business and is a key
product we market to banks, fintechs and central bank
infrastructures. In addition to intelligent switching and
routing, Ren provides an agile solution for financial
institutions looking for card issuing solutions and ATM and
device management in a rapidly changing digital landscape.
Ren is also used as a payment hub, providing global real-time
payment transactions.
2024 Highlights
We acquired Infinitum Holdings in Singapore in the first
quarter to expand Ren’s capabilities. Infinitum is a leader
in risk management and payment authentication services,
including 3D Secure, which is crucial in preventing fraud
in e-commerce and card-not-present transactions. This
acquisition also broadens Ren’s addressable market by
integrating Infinitum’s cloud-native online payment gateway
into Ren’s acquiring host, allowing us to offer a comprehensive
end-to-end service to online acquirers and merchants.
Our go-to-market strategy early in 2024 focused on Asia,
Africa and South America. Key milestones included:
• A strategic deal with Bank Raya, the digital banking
subsidiary of BRI, Indonesia’s largest state-owned
bank. These emerging digital banks are building their
payment stack from the ground up, favoring Ren’s modern
technology over legacy systems.
• The successful launch of Solfin in Costa Rica, a program
manager facilitating corporate and business card issuance
for payroll and expense management.
• A debit card program introduced in Ecuador for our first
credit union customer, serving as both sponsor and issuer.
• A software license agreement with ICICI Bank Limited,
India’s third-largest bank, for a card management system.
• A payment processing agreement in Brazil with Onnipro,
the chosen provider of Alelo, the country’s largest employee
benefits card program, serving 12 million customers.
• An implementation within our epay segment to power our
successful Prezzy open-loop card in New Zealand.
We remain committed to strengthening Ren through
continuous development and strategic acquisitions, such
as Infinitum, to enhance our market reach.
Mozambique Success Story
Years ago, we partnered with the Bank of Mozambique and
SIMO, the entity operating the country’s central bank switch,
to implement Ren nationally. The project delivered a cutting-
edge financial ecosystem, elevating Mozambique’s financial
system to one of the most advanced globally. At the end
of 2024, transaction volumes had doubled year-over-year,
reaching approximately 4.4 million daily transactions across
ATMs, POS and e-commerce channels. Debit, credit, prepaid
and digital wallet payments hit record levels in Q3 2024,
leading to a 10-year contract extension — a testament to
Ren’s transformative capabilities.
Expansion into Latin America
Ren was also launched in Latin America, facilitating the
first virtual card offering for Banco Pichincha, Ecuador’s
largest private bank. Ecuador presents a significant market
opportunity with a population of 17 million and a GDP
exceeding $250 billion.
Looking Ahead
Continued growth in these regions and the United States
with the FedNow real-time payments network provides
Euronet and Ren opportunities in 2025 and beyond. We
remain focused on expanding Ren’s capabilities through
continuous innovation and strategic growth, ensuring it
remains the leading choice for modern payment processing
solutions worldwide.
SOLUTIONS — REN
Ren: A modern platform that spans the entire
spectrum of payments
18
Euronet | 2024 Annual Report
Dandelion is the cross-border payments network that
powers consumer and business transactions from Ria
Money Transfer and Xe. In addition, we provide the Dandelion
network and core payment capabilities through a Payment-
as-a-Service model, enabling seamless, real-time cross-
border transactions.
By integrating with Dandelion via a single API, banks,
fintechs, financial institutions, payment service providers,
and tech platforms can instantly extend cross-border
payment services to consumers and businesses worldwide.
A key growth driver for Euronet, Dandelion plays a central
role in the diverse value propositions offered by our Money
Transfer segment and has been well-received in the market
as a key enabler of global financial connectivity.
Dandelion’s network extends beyond traditional family
remittances, allowing us to reach new customer segments.
At the end of 2024, with access to 4.1 billion bank accounts,
3.1 billion wallet accounts and more than 600,000 physical
locations worldwide, Dandelion had established itself as a
leading global cross-border payments network. Moreover, it
opens the door to new markets within the multi-trillion dollar
cross-border payments industry.
2024 Highlights
Dandelion experienced substantial growth and expansion
throughout 2024. Several new partnerships, service
launches and extensions of previous deals further
strengthened its market position, including:
• An agreement with Wallex, a Singapore-based
international payment service provider catering to SMEs,
corporations, fintechs and e-commerce companies.
• A collaboration with Sendwave (WorldRemit), one of the
world’s largest digital money transfer companies with
over 11 million customers that went live in 2024.
• HSBC’s expanded use of Dandelion’s payment rails.
• Partnerships with Wirebarley (a South Korean fintech),
Lightnet (a high-growth Singapore-based payments
provider) and Sokin (a UK-based SME-focused
payments company).
• An agreement with XTransfer, a B2B cross-border
payments platform serving over 550,000 corporate
customers.
• A digital outbound service partnership with Al Hilal
Bank in the UAE, the world’s second-largest outbound
remittance market.
• Additional partnerships with GuavaPay (UK-based payments
provider for SMEs), OrbitRemit (leading digital money
services business, or MSB, in New Zealand and Australia),
Panda Remit (headquartered in Singapore with operations
across 39 countries) and Ant International, one of the
largest and most innovative fintech companies globally.
Looking Ahead
Regulatory developments, such as the G20 roadmap for
enhancing cross-border payments, have increased interest
in Dandelion’s services as financial institutions seek solutions
that improve transparency, speed and predictability in global
transactions. With an expanding partner ecosystem and a
strong pipeline of future collaborations, we anticipate further
momentum in 2025, reinforcing our role as a leader in the
global payments industry.
SOLUTIONS — DANDELION
Dandelion: The most strategic cross-border network
for moving money globally
Borderless By Design
19
Executive Officers and Management
Michael J. Brown
Chairman, Chief Executive Officer and President
Rick L. Weller
Executive Vice President and Chief Financial Officer
Juan C. Bianchi
Executive Vice President and Chief Executive Officer,
Money Transfer Segment
Martin L. Brückner
Executive Vice President and Chief Technology Officer
Kevin J. Caponecchi
Executive Vice President and Chief Executive Officer,
epay, Software and EFT Asia Pacific Segment
Adam Godderz
General Counsel and Corporate Secretary
Nikos Fountas
Executive Vice President and Chief Executive Officer,
EFT Americas, Europe, Middle East and Africa Division
Himanshu Pujara
Senior Vice President and Managing Director,
EFT Asia Pacific and Ren Payments
Tony Warren
Managing Director, Payments Software
Directors
Michael J. Brown
Chairman, Chief Executive Officer and President,
Euronet
Paul S. Althasen
Co-founder, epay
Sara Baack
Founding Partner, Snowhawk, LP
Michael N. Frumkin
Retired Senior Director, Research, Google, Inc.
Sergi Herrero
Board Member and Chairman of the Board, Intix
Thomas A. McDonnell
Retired President and Chief Executive Officer,
DST Systems, Inc.
Dr. Andrzej Olechowski
Retired Professor, Vistula University, Warsaw, Poland
Andrew B. Schmitt
Retired Chairman and Chief Executive Officer,
Layne Christensen Company
Brad Sprong
Retired Managing Partner, KPMG
M. Jeannine Strandjord
Retired Senior Vice President, Sprint Corporation
Ligia Torres Fentanes
Retired Head of Asset Management for APAC and Emerging
Markets, BNP Paribas Group
EXECUTIVE SUMMARY
Contact the Board of Directors
To report complaints about Euronet’s financial reporting,
internal control procedures, auditing matters or other
concerns to the Board of Directors or the Audit Committee,
write to:
Euronet Board of Directors
c/o The General Counsel
Euronet Worldwide, Inc.
11400 Tomahawk Creek Parkway, Suite 300
Leawood, KS 66211 USA
or send an email to directors@eeft.com.
Investor Information
Copies of Euronet Worldwide, Inc.’s Annual Report on Form
10-K, quarterly reports on Form 10-Q and current reports
on Form 8-K, are filed with the Securities and Exchange
Commission (SEC), and are available without charge
from Euronet Investor Relations, 11400 Tomahawk Creek
Parkway, Suite 300, Leawood, KS 66211 USA. In addition,
the Company’s Form 10-K and other filings with the
SEC are available at sec.gov or through our website at
euronetworldwide.com.
Transfer Agent
Computershare Investor Services
P.O. Box 43078
Providence, RI 02940-3078 USA
computershare.com
Corporate Headquarters
Euronet Worldwide, Inc.
11400 Tomahawk Creek Parkway, Suite 300
Leawood, KS 66211 USA
+1.913.327.4200
Stock Listing
U.S. NASDAQ: EEFT
20
Euronet | 2024 Annual Report
10-K Report
Budapest, Hungary, is the site of our first ATM
approximately 30 years ago and current location
for one of our global processing centers.
Borderless By Design
21
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
☑
ANNUAL REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the fiscal year ended: December 31, 2024
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from to
Commission File Number
001-31648
EURONET WORLDWIDE, INC.
(Exact name of Registrant as specified in its charter)
________________________
Delaware
74-2806888
(State or other jurisdiction of incorporation or
organization)
(I.R.S. Employer Identification No.)
11400 Tomahawk Creek Parkway, Suite 300
Leawood, Kansas
66211
(Address of principal executive offices)
(Zip Code)
(913) 327-4200
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading
Symbol(s)
Name of Each Exchange on Which Registered
Common Stock
EEFT
Nasdaq Global Select Market
1.375% Senior Notes due 2026
EEFT26
Nasdaq Global Market
Securities registered pursuant to Section 12(g) of the Act: None
_________________________
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ☑ No ☐
Euronet | 2024 Annual Report
22
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes ☐ No ☑
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be
submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller
reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☑
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.
7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of
the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-
based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to
§240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑
As of June 30, 2024, the aggregate market value of the voting and non-voting common equity held by non-affiliates of the
registrant was approximately $4.4 billion. The aggregate market value was determined based on the closing price of the
Common Stock on June 30, 2024.
As of February 24, 2025, the registrant had 43,742,542 shares of Common Stock outstanding.
Documents Incorporated By Reference
Portions of the registrant's Proxy Statement for its 2024 Annual Meeting of Stockholders, which will be filed with the
Securities and Exchange Commission no later than 120 days after December 31, 2024, are incorporated by reference into Part
III of this Annual Report on Form 10-K.
Borderless By Design
23
TABLE OF CONTENT
ITEM
NUMBER
ITEM DESCRIPTION
PAGE
PART I
ITEM 1.
BUSINESS ...........................................................................................................................................................................................................
24
ITEM 1A. RISK FACTORS ..............................................................................................................................................................................................
40
ITEM 1B. UNRESOLVED STAFF COMMENTS ............................................................................................................................................
52
ITEM 1C. CYBERSECURITY RISK MANAGEMENT AND STRATEGY .................................................................................
52
ITEM 2.
PROPERTIES ....................................................................................................................................................................................................
54
ITEM 3.
LEGAL PROCEEDINGS ...........................................................................................................................................................................
55
ITEM 4.
MINE SAFETY DISCLOSURES .........................................................................................................................................................
55
PART II
ITEM 5.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES .................................................................................................
55
ITEM 6.
RESERVED .........................................................................................................................................................................................................
57
ITEM 7.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS ................................................................................................................................................................
57
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK .................................
75
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ...............................................................................
77
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE ...................................................................................................................................................................
120
ITEM 9A. CONTROLS AND PROCEDURES ....................................................................................................................................................
120
ITEM 9B. OTHER INFORMATION ..........................................................................................................................................................................
121
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS .........
121
PART III
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE .............................................
122
ITEM 11.
EXECUTIVE COMPENSATION ........................................................................................................................................................
122
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AND RELATED STOCKHOLDER MATTERS .......................................................................................................................
122
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,
AND DIRECTOR INDEPENDENCE ...............................................................................................................................................
122
ITEM 14.
PRINCIPAL ACCOUNTING FEES AND SERVICES ........................................................................................................
122
PART IV
ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES ........................................................................................
123
SIGNATURES ...................................................................................................................................................................................................
126
Euronet | 2024 Annual Report
24
PART I
ITEM 1. BUSINESS
References in this report to "we," "our," "us," the "Company" and "Euronet" refer to Euronet Worldwide, Inc. and its
subsidiaries unless the context indicates otherwise.
BUSINESS OVERVIEW
General Overview
Euronet is a leader in electronic payment and transaction processing solutions for Financial Institutions, Retailers, Service
Providers, and Individual Consumers utilizing our global payments network, platforms, and technologies. Through a
collection of diverse technologies and services, our business segments and solutions meet a wide variety of payments
requirements and process transactions throughout the world. We move money in all the ways the world depends on. With a
global footprint we provide compliant solutions that make financial transactions easier, faster, and secure.
Core Business Segments
We operate in the following three segments as of December 31, 2024:
Electronic Funds Transfer ("EFT") Segment
Our Electronic Funds Transfer ("EFT") segment meets the needs of financial institutions and consumers through Euronet-
owned and outsourced Automated Teller Machines ("ATMs") and Point-of-Sale ("POS") terminals combined with value
added and transaction processing services. We deploy and operate our own ATMs, providing ATM services for financial
institutions and providing electronic payment processing solutions. EFT offers a suite of integrated electronic financial
transaction software solutions for electronic payment and transaction delivery systems. Transactions processed span a
network of 55,248 ATMs, as of December 31, 2024, and approximately 1,160,000 POS terminals. In 2024, the EFT
Processing Segment accounted for approximately 29% of Euronet's consolidated revenues.
epay Segment
Our epay segment provides retail payment solutions and delivers innovative connections between the digital content of the
world’s leading brands and consumers. epay has one of the largest retail networks across Europe and Asia for the distribution
of physical and digital third-party content, including branded payments, mobile, and alternative payments, partnering with
1,000+ of the world’s leading brands. In addition, through our own products, we have leveraged our technology to solve
business challenges, delivering scalable solutions to drive efficiency and effectiveness. Our comprehensive range of
consumer products simplifies transactions and provides financial convenience across a wide range of branded payments. epay
operates in 60+ countries. We operate a network that includes approximately 777,000 POS terminals that enable electronic
processing of prepaid mobile airtime "top-up" services and other digital media content. In 2024, the epay Segment accounted
for approximately 29% of Euronet's consolidated revenues.
Money Transfer Segment
Our Money Transfer segment provides global money transfers and currency exchange information in retail stores, apps, and
websites through Ria Money Transfer, Xe and the Dandelion cross-border real-time payments network. Euronet’s Money
Transfer segment offers real-time, cross-border payments to consumers and businesses across 198 countries and territories,
enabling banks, fintechs and big tech platforms to integrate an international payments solution into their own platforms. In
2024, the Money Transfer Segment accounted for approximately 42% of Euronet's consolidated revenues.
Ria Money Transfer, one of the largest consumer remittance companies in the world offers real-time international money
transfers with a special focus on emerging markets. In addition, Ria offers safe and affordable money transfers through a
global network of cash locations and online, serving over 20 million customers annually.
Xe offers web and app based currency information and industry-leading consumer and business cross border money transfer
services. Customers can send money, buy property overseas, and execute other international payments via the Xe website
or app.
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Dandelion is a leading real-time cross-border payment platform; it offers consumer and business transaction processing and
fulfillment with alternative payout channels like bank accounts, cash pick-up and mobile wallets. Dandelion powers cross-
border payments for Xe and Ria, as well as third party banks, fintechs, and big tech platforms.
Historical Perspective
Euronet started in Central Europe in 1994 and has grown to become a global real-time digital and cash payments network
with millions of touchpoints today, with products and services in more than 200 countries and territories provided through its
own brand and branded business segments, Euronet and its financial technologies and networks offer payment transaction
services. Euronet serves clients from 67 offices worldwide.
BUSINESS SEGMENT OVERVIEW
For a discussion of operating results by segment, please see Item 7 - Management's Discussion and Analysis of Financial
Condition and Results of Operations, and Note 18, Business Segment Information, to the Consolidated Financial Statements.
EFT PROCESSING SEGMENT
OVERVIEW
Our EFT Processing Segment provides comprehensive electronic payment solutions consisting of ATM cash withdrawal and
deposit services, ATM network participation, outsourced ATM and POS management solutions, credit, debit and prepaid
card outsourcing, card issuing and merchant acquiring services. In addition to our core business, we offer a variety of value-
added services, including ATM and POS DCC, domestic and international surcharge, foreign currency dispensing,
advertising, digital content sales at ATMs, Customer Relationship Management ("CRM"), prepaid mobile top-up, bill
payment, money transfer, fraud management, foreign remittance payout, cardless payout, banknote recycling solutions and
tax-refund services. We provide these services either through our Euronet-owned ATMs and POS terminals, through
contracts under which we operate ATMs and POS terminals on behalf of our customers or, for certain services, as stand-
alone products. Through this segment, we also offer a suite of integrated electronic financial transaction software solutions
for electronic payment and transaction delivery systems.
SOURCES OF REVENUES
The primary sources of revenues generated by our ATM network are recurring monthly management fees, transaction-based
fees, surcharges, and margins earned on DCC transactions. We receive fixed monthly fees under many of our outsourced
management contracts. The EFT Processing Segment also generates revenues from POS operations and merchant
management, card network management for credit, debit, prepaid and loyalty cards, prepaid mobile airtime recharge and
other electronic content on ATMs and ATM advertising. We primarily operate across Europe, Africa, the Middle East, Asia
Pacific, Latin America and the United States. As of December 31, 2024, we operated 55,248 ATMs compared to 47,303 at
December 31, 2023.
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We monitor the number of transactions made by cardholders on our network. These include cash withdrawals, balance
inquiries, deposits, prepaid mobile airtime recharge purchases, DCC transactions and certain denied (unauthorized)
transactions. We do not bill certain transactions on our network to financial institutions, and we have excluded these
transactions for reporting purposes. The number of transactions processed over our networks has increased over the last five
years at a compound annual growth rate ("CAGR") of approximately 36.7% as indicated in the following table:
(in millions)
2020
2021
2022
2023
2024
EFT Processing Segment transactions per year
3,275
4,366
6,459
8,473
11,424
The increase in transactions for the past few years is the result of a significant increase in the volume of lower value, real
time payment processing transactions on any wallet or e-commerce site in Asia Pacific. The associated revenue of these
lower value, digitally initiated payment processing transactions is lower. As a result, our revenue growth will not correlate
proportionately with the increase in our transaction volume growth.
Our processing centers for the EFT Processing Segment are located in Germany, Hungary, India, China, Indonesia and
Pakistan. Our processing centers run two types of proprietary transaction switching software: our legacy ITM software,
which we have used and sold to financial institutions since 1998 through our Software Solutions unit, and an innovative
switching software package named "Ren", which is hosted in Germany, India and Indonesia, that was released in 2019. The
processing centers operate 24 hours a day, seven days a week. We have been progressively transitioning all of our networks
to Ren.
EFT PROCESSING PRODUCTS AND SERVICES
Outsourced Management Solutions
Euronet offers outsourced management solutions to financial institutions, merchants, mobile phone operators and other
organizations using our processing centers' electronic financial transaction processing software. Our outsourced management
solutions include management of existing ATM networks, development of new ATM networks, management of POS
networks, management of automated deposit terminals, management of credit, debit and prepaid card databases and other
financial processing services. These solutions include 24-hour monitoring of each ATM's status and cash condition,
managing the cash levels in each ATM, coordinating the cash delivery, and providing automatic dispatches for necessary
service calls. We also provide real-time transaction authorization, advanced monitoring, network gateway access, network
switching, 24-hour customer service, maintenance, cash settlement and reconciliation, forecasting, and reporting. Since our
infrastructure can support a significant increase in transactions, new outsourced management solutions agreements should
provide additional revenue with lower incremental cost.
Our outsourced management solutions agreements generally provide for fixed monthly management fees and, in most cases,
fees payable for each transaction. The transaction fees under these agreements are generally lower than those under card
acceptance agreements.
Euronet-Branded ATM Transaction Processing
Our Euronet-branded ATM networks, also known as IAD networks, are primarily managed by a processing center that uses
our market-leading internally developed software solutions. The ATMs in our IAD networks are able to process transactions
for holders of credit, debit and prepaid products issued by or bearing the logos of financial institutions and international card
organizations such as American Express®, Visa®, Mastercard®, JCB, Diners Club International®, Discover® and UnionPay
International©, as well as international ATM networks such as PLUS, CIRRUS and PULSE® or domestic networks such as
NYCE, Shazam, AFFN, STAR and others across North America. This is accomplished through our agreements and
relationships with these institutions, international credit, debit and prepaid card issuers, international card associations and
domestic card associations.
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When a bank cardholder conducts a transaction on a Euronet-owned ATM or automated deposit terminal, we receive a fee
from the cardholder's bank for that transaction. The bank pays us this fee either directly or indirectly through a central
switching and settlement network. When paid indirectly, this fee is referred to as the "interchange fee." We receive
transaction processing fees for successful transactions and, in certain circumstances, for transactions that are not completed
because they fail to receive authorization. The fees paid to us by the card issuers are independent of any fees charged by the
card issuers to cardholders in connection with the ATM transactions. In some cases, we may also charge a direct access fee or
surcharge to cardholders at the ATM. The direct access fee is added to the amount of the cash withdrawal and debited from
the cardholder's account.
We generally receive fees or earn margins from our customers for all types of ATM transactions:
Card Acceptance or Sponsorship Agreements
Our agreements with financial institutions and international card organizations generally provide that all credit and debit
cards issued by the financial institution or organization may be used at all ATMs that we operate in for a given market. In
most markets, we operate under sponsorship by our own e-money or payment service licensed entities. In some markets, we
have agreements with a financial institution under which we are designated as a service provider (which we refer to as
"sponsorship agreements") for the acceptance of domestic cards and/or cards bearing international logos, such as
Visa® and Mastercard®. These card acceptance or sponsorship agreements allow us to receive transaction authorization directly
from the card issuing institution or international card organizations on a stand-in basis. Our agreements generally provide for
a term of three to seven years and renew automatically unless either party provides notice of non-renewal prior to the
termination date. In some cases, the agreements are terminable by either party upon six months' notice. We are generally able
to connect a financial institution to our network within 30 to 90 days of signing a card acceptance agreement. The financial
institution provides the cash needed to complete transactions on the ATM, but we provide a significant portion of the cash to
our IAD network to fund ATM transactions ourselves. Euronet is generally liable for the cash in the ATM networks.
Under our card acceptance agreements, the ATM transaction fees we charge vary depending on the type of transaction and
the number of transactions attributable to a particular card issuer. Our agreements generally provide for payment in local
currency, though transaction fees are sometimes denominated in euros or U.S. dollars. Transaction fees are billed to financial
institutions and card organizations with payment terms typically no longer than one month.
Dynamic Currency Conversion
We offer dynamic currency conversion, or DCC, over our IAD networks, ATM networks that we operate on an outsourced
basis for financial institutions, and over financial institutions' ATM networks or POS devices as a stand-alone service. DCC
is a feature of the underlying ATM or POS transaction that is offered to customers completing transactions using a foreign
debit or credit card issued in a country with a currency other than the currency where the ATM or POS is located. The
customer is offered a choice between completing the transaction in the local currency or in the customer's home currency via
a DCC transaction. If a cardholder chooses to perform a DCC transaction, the acquirer or processor performs the foreign
exchange conversion at the time that the funds are delivered at an ATM or the transactions are completed through the POS
terminal, which results in a pre-defined amount of the customer's home currency being charged to their card. Alternatively,
the customer may have the transaction converted by the card issuing bank, in which the amount of local currency is
communicated to the card issuing bank and the card issuing bank makes the conversion to the customer's home currency.
When a customer chooses DCC at an ATM or POS device and Euronet acts as the acquirer or processor, we receive all or a
portion of the foreign exchange margin on the conversion of the transaction. On our IAD ATMs, Euronet receives the entire
foreign exchange margin. If Euronet is not the acquirer or processor of the transaction, we share the DCC revenue with the
sponsor bank. On ATMs or POS devices that are operated for financial institutions, or where we offer DCC as a stand-alone
service to financial institutions or merchants, we share the foreign exchange margin. The foreign exchange margin on a DCC
transaction increases the amount Euronet earns from the underlying ATM or POS transaction and supports deployment of
additional ATMs in new locations.
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Other Products and Services
Our network of owned or operated ATMs allows for the sale of additional financial and other products or services at a low
incremental cost. We have developed value-added services in addition to basic cash withdrawal and balance inquiry
transactions. These value-added services include mobile top-up, fraud management, bill payment, domestic and international
surcharge, CRM, foreign remittance payout, cardless payout, banknote recycling, electronic content, ticket and voucher,
foreign currency withdrawal, advertising and tax-refund services. We are committed to the ongoing development of
innovative new products and services to offer our EFT processing customers.
Euronet offers multinational merchants a Single European Payments Area ("SEPA")-compliant cross-border transaction
processing solution. SEPA is an area in which all electronic payments can be made and received in euros, whether between or
within national boundaries, under the same basic conditions, rights, and obligations, regardless of the location. This single,
centralized acquiring platform enables merchants to benefit from cost savings and faster, more efficient payments transfer.
Although many European countries are not members of the eurozone, our platform can serve merchants in these countries as
well, through our multi-currency functionality.
Software Solutions
We also offer a suite of integrated software solutions for electronic payments and transaction delivery systems. We generate
revenues for our software products from licensing, professional services and maintenance fees for software and sales of
related hardware, primarily to financial institutions around the world.
Ren Payments Platform
Ren was built from the ground up to operate in the evolving digital payments landscape of real-time settlements and
emerging forms of payment, including QR codes, PINs and biometrics. Ren primarily serves financial institutions, central
banks and fintech companies. It is offered as an on-premise technology where these businesses install the platform in their
own data centers or as a software as a service (SaaS) offering where development teams access it in Euronet’s global data
centers using APIs. Versatile, Ren can be used as a payment hub or to deliver core banking functionality such as issuing,
merchant acquiring, transaction switching, and ATM management. For real-time payments, Ren is used by central banks to
process transactions and member banks that use Ren to connect their legacy systems to real-time payment networks in
their countries.
EFT PROCESSING SEGMENT STRATEGY
The EFT Processing Segment maintains a strategy to expand the network of ATMs and POS terminals into new and existing
markets that have the greatest potential for growth. We continue to focus on diversifying our business by expanding our
market presence and product portfolio, as well as outsourcing opportunities. In addition, we follow a supporting strategy to
increase the penetration of value added (or complementary) services across our existing customer base, including DCC,
transaction-based fees, surcharge, cardless payment, banknote recycling solutions, tax refund services, advertising, fraud
management, bill payment, mobile top-up, CRM and foreign remittance payout.
We continually strive to make our own ATM networks more efficient by removing unprofitable ATMs and redeploying them
to new profitable locations. We make selective additions to our own ATM network if we see market demand and profit
opportunities. In tourist locations, we also seasonally deactivate ATMs when tourist activity is low.
In recent years, the need for "all-in" services has increased. Banks, particularly smaller banks, are increasingly looking for
integrated ATM, POS and card issuing processing and management services. Euronet is well positioned for this opportunity
as it can offer a full end-to-end solution to potential partners.
Additional growth opportunities are driven through financial institutions that are receptive to outsourcing the operation of
their ATM, POS and card networks. The operation of these devices requires expensive hardware and software and specialized
personnel. These resources are available to us, and we offer them to our customers under outsourcing contracts. The
expansion and enhancement of our outsourced management solutions in new and existing markets will remain an important
business opportunity for Euronet. Increasing the number of non-owned ATMs and POS terminals that we operate under
management services agreements and continued development of our credit, debit and prepaid card outsourcing business could
provide continued growth while minimizing our capital investment.
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In addition, complementary services offered by our epay Segment, where we provide prepaid mobile top-up services through
POS terminals, strengthens the EFT Processing Segment's line of services. We plan to continue to expand our technology and
business methods into other markets where we operate and further leverage our relationships with mobile operators, other
content providers and financial institutions to facilitate that expansion.
SEASONALITY
Our EFT Processing business experiences its heaviest demand for cash withdrawals and DCC during the third quarter of the
fiscal year, coinciding with the tourism season. It is also impacted by seasonality during the fourth quarter and first quarter of
each year due to higher transaction levels during the holiday season and lower levels after the holiday season. This
seasonality is increased due to our practice of seasonally deactivating ATMs in tourist locations that experience significantly
higher traffic during their peak tourist seasons. Seasonally deactivating involves shutting down the ATMs during the slower
months and results in lower overall transaction volumes in the EFT Processing Segment during those months. As we have
expanded our IAD network in tourist locations, the financial impact of seasonally deactivating has increased, because we
continue to bear the expense of seasonally deactivated ATMs even though they do not generate transactions during the
slower months.
SIGNIFICANT CUSTOMERS AND GOVERNMENT CONTRACTS
No individual customer of the EFT Processing Segment makes up greater than 10% of total consolidated revenues.
EFT maintains contract relationships with a number of banks, financial institutions, telecommunications companies, and
clients whose ownership includes the government.
COMPETITION
Our principal EFT Processing Segment competitors include ATM networks owned by financial institutions and national
switches consisting of consortiums of local banks that provide outsourcing and transaction services to financial institutions
and independent ATM deployers in a particular country. Additionally, large, well-financed companies that operate ATMs
offer ATM network and outsourcing services, and those that provide card outsourcing, POS processing and merchant
acquiring services also compete with us in various markets. Small local operators have also recently begun offering their
services, particularly in the IAD market. None of these competitors has a dominant market share in any of our markets.
Competitive advantages in our EFT Processing Segment include breadth of service offering, network availability and
response time, price to both the financial institution and to its customers, ATM location and access to other networks.
epay SEGMENT
Overview
We currently process and distribute prepaid mobile airtime and other electronic content and payment processing services for
various prepaid products, cards, and services on a network of approximately 777,000 POS terminals across approximately
362,000 retailer locations in Europe, the Middle East and Africa, Asia Pacific, North America and South America. Our
processing centers for the epay segment are located in the United Kingdom, Germany, Italy, and the United States.
We have continued to expand our prepaid business in new and existing markets by drawing upon our depth of experience to
build and expand relationships with content providers, mobile operators, and retailers. We offer a wide range of products
across our retail networks, including prepaid mobile airtime, prepaid debit cards, prepaid gift cards, other prepaid electronic
content such as music, games and software, prepaid vouchers, transport payments and lottery, and bill payment processing
assistance through partnerships with various licensed money transmitters.
Sources of Revenues
The epay Segment generates commissions and processing fees from the distribution of electronic content from mobile
operators and other content providers. In 2024, approximately 68% of total revenues and approximately 76% of gross profit
for the epay Segment was from electronic content other than prepaid mobile airtime (digital media products).
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Customers purchase digital media prepaid content as a gift or for self-use. Content is generally purchased in two ways: (1)
directly online from the content provider using an online payment method, or (2) through physical retail stores, online
retailers, or other electronic channels, including payment wallets, online banking, mobile applications, and other sources.
Customers using mobile phones generally pay for usage in one of two ways: (1) through "postpaid" accounts, where usage is
billed at the end of each billing period, or (2) through "prepaid" accounts, where customers pay in advance by crediting their
accounts prior to usage.
Although mobile operators in the U.S. and certain European countries have provided service principally through postpaid
accounts, the norm in many other countries in Europe and the rest of the world is to offer wireless service on a prepaid basis.
Prepaid mobile phone credits are generally distributed using personal identification numbers ("PINs"). We distribute PINs in
two ways. First, we establish an electronic connection to the mobile operator and the retailer. When the sale to a customer is
initiated, the terminal requests the PIN from the mobile operator via our transaction processing platform. These transactions
obtain the PIN directly from the mobile operator. The customer pays the retailer, and the retailer becomes obligated to make
settlement to us of the purchased amount of the mobile airtime. We maintain systems that know the amount of mobile top-up
sold by the retailer which allows us in turn to bill that retailer for the mobile top-up sold.
Second, we purchase PINs from the mobile operator which are electronically sent to our processing platform. We establish an
electronic connection with the POS terminals in retailer locations and our processing platform provides the terminal with a
PIN when the mobile top-up is purchased. We maintain systems that monitor transaction levels at each terminal. As sales of
prepaid mobile airtime to customers are completed, the inventory on the platform is reduced by the PIN purchased. The
customer payment and settlement with the retailer are the same as described above.
We expand our distribution networks by signing new contracts with retailers, and in some markets, by acquiring existing
networks. We continue to focus on growing our distribution network through independent sales organizations that contract
directly with retailers in their network to distribute prepaid mobile airtime or other digital media content from the retailers'
POS terminals. We continue to increase our focus on direct relationships with chains of supermarkets, convenience stores,
gas stations, and other larger scale retailers, where we can negotiate multi-year agreements with the retailers. In addition to
the sale of traditional mobile top-up volume described above, we have expanded distribution into digital media products and
other value-added services. We have leveraged our existing technology infrastructure to sell digital media products, which
have been sold through our traditional retail network and new retailer networks such as digital channels. In the U.S., most
prepaid digital media content is purchased for gifting; in markets outside the U.S., consumers generally purchase prepaid
digital media content for self-use.
epay PRODUCTS AND SERVICES
Prepaid Mobile Airtime Transaction Processing
We process prepaid mobile airtime top-up transactions on our international POS network for two types of clients: distributors
and retailers. Both types of client transactions start with a consumer in a retail store. The retailer uses a specially programmed
POS terminal in the store, the retailer's electronic cash register (ECR) system, or web-based POS device that is connected to
our network to buy prepaid mobile airtime. The consumer will select a predefined amount of mobile airtime from the carrier
of choice, and the retailer enters the selection into the POS terminal. The consumer will pay that amount to the retailer (in
cash or other payment methods accepted by the retailer). The POS device then transmits the selected transaction to our
processing center. Using the electronic connection we maintain with the mobile phone operator or drawing from our
inventory of PINs, the purchased amount of mobile airtime will be either credited to the consumer's account or delivered via
a PIN printed by the terminal and given to the consumer. In the case of PINs printed by the terminal, the consumer must then
call the mobile phone operator's toll-free number to activate the purchased airtime to the consumer's mobile account.
One difference in our relationships with various retailers and distributors is the way in which we charge for our services. For
distributors and certain very large retailers, we charge a processing fee. However, the majority of our transactions occur with
smaller retailers. With these clients, we receive a commission or discount on each transaction that is withheld from the
payments made to the mobile phone operator, and we share that commission/discount with the retailers.
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Closed Loop Gift Cards
Closed loop (private-branded) gift cards are generally described as merchant-specific prepaid cards, used for purchases
exclusively at a particular merchant's locations. We distribute closed loop gift cards in various categories, including dining,
retail, and digital media, such as music, games, and software. Generally, the gift card is activated when a consumer loads
funds (with cash, debit or credit card payment) or purchases a preloaded value gift card at a retail store location or online.
Open Loop Gift Cards
Open loop gift cards are prepaid gift cards associated with an electronic payment network (such as Visa® or Mastercard®) and
are honored at multiple, unaffiliated locations (wherever cards from these networks are generally accepted). They are not
merchant-specific. We distribute and issue single-use, non-reloadable open loop gift cards carrying the Visa® brand in our
retail channels. After the consumer purchases the preloaded value gift card at a retail store location or online, the consumer
must call the toll-free number on the back of the card to activate it.
Open Loop Reloadable
We distribute Visa® and Mastercard® issued debit cards provided by card issuers. We also manage and distribute a proprietary
debit card that allows a retailer to issue its own reloadable store-branded card. Open loop reloadable cards have features
similar to a bank checking account, including direct deposit, purchasing capability wherever a credit card is accepted, bill
payment and ATM access. Fees are charged to consumers for the initial load and reload transactions, monthly account
maintenance and other transactions.
Other Products and Services
Our POS network is used for the distribution of other products and services, including games and software, bill payment,
lottery tickets and transportation products. Through our Cadooz subsidiary, we also distribute vouchers and physical gifts into
the business-to-business ("B2B") channel principally for the purposes of employee and customer incentives and rewards, as
well as POS promotions where physical goods are sold in large retailers. In certain locations, the terminals used for prepaid
services can also be used for electronic funds transfer to process credit, debit, and prepaid card payments for retail
merchandise. We provide promotion and advertising for content providers of their prepaid content throughout our retail
distribution network. We also provide card production and processing services to some of our prepaid gift card partners and
telecom content providers.
Retailer and Distributor Contracts
We provide our prepaid services through POS terminals or web-based POS devices installed in retail outlets or, in the case of
major retailers, through direct connections between their ECR systems and our processing centers. In markets where we
operate proprietary technology, we generally own and maintain the POS terminals. In certain countries in Europe, the
terminals are sold to the retailers or to distributors who service the retailer. Our agreements with major retailers for POS
services typically have one to three-year terms. These agreements include terms regarding the connection of our networks to
the respective retailer's registers or payment terminals or the maintenance of POS terminals, and obligations concerning
settlement and liability for transactions processed. Generally, our agreements with individual or small retailers have shorter
terms and provide that either party can terminate the agreement upon three to six months' notice.
The number of transactions processed on our POS networks have increased over the last five years at a CAGR of
approximately 16.2% as indicated in the following table:
(in millions)
2020
2021
2022
2023
2024
epay processing transactions per year
2,395
3,120
3,836
3,789
4,374
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epay SEGMENT STRATEGY
epay's strategy is to grow revenue and defend margins in developing markets by providing value-added services to mobile
operators and to decrease our reliance on mobile top-up by increasing distribution of other electronic content, expanding
epay branded content, introducing new solutions to new and existing customers, and focusing on geographic expansion.
Strategic execution behind expansion of digital media electronic content includes the development of relationships with
global consumer product brands. This strategy leverages the global scale of the epay business allowing global brands to be
sold in many or all the countries in which we have a presence. Examples of global brands we distribute include iTunes,
Google Play, Sony, and Microsoft.
Telecommunications companies and other content providers have a substantial opportunity to increase revenues by
diversifying the products and services currently offered to their retailers. epay is deploying additional content through its POS
network to retailers and distributors all over the world. The reach, capabilities, and quality of the epay network are appealing
as a global distribution channel. We are one of the largest worldwide multi-country operators, and believe we have a distinct
competitive advantage with the existing relationships that we maintain with prepaid content providers and retailers.
SEASONALITY
As the product mix continues to change, the epay business is impacted by seasonality during the fourth quarter and first
quarter of each year due to the higher transaction levels during the holiday season and lower levels following the holiday
season.
SIGNIFICANT CUSTOMERS AND GOVERNMENT CONTRACTS
No individual customer of our epay Segment makes up greater than 10% of total consolidated revenues. epay maintains
contract relationships with a number of companies, banks, post offices and telecommunications providers whose ownership
includes the government.
COMPETITION
We face competition in the prepaid business in all of our markets. We compete with a few multinational companies that
operate in several of our markets. In other markets, our competition is from smaller, local companies. The mobile operators
in all of our markets have retail distribution networks, and in some markets, on-line distribution of their own through which
they offer top-up services for their own products.
We believe our size and market share are competitive advantages in many markets. In addition, we believe our processing
platforms are a competitive advantage. We have extremely flexible technical platforms that enable us to tailor POS solutions
to individual retailers and mobile operator and digital media content provider requirements where appropriate. Our platforms
are also able to provide value added services other than processing, which makes us a more valuable partner to the content
providers and retailers. We have introduced new digital products into the marketplace such as digital payment for online
media subscriptions. Many of these products are not offered by our competitors and in many countries, these are new
products. We are capitalizing on being the first to market for these products.
The principal competitive factors in the epay Segment include price (that is, the level of commission paid to retailers for each
transaction), breadth of products and up-time offered on the system. Major retailers with high volumes can demand a larger
share of the commission, which increases the amount of competition among service providers. We are seeing signs that some
mobile operators are expanding their distribution networks to provide top-up services on-line or via mobile devices, which
provides other alternatives for consumers to use.
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MONEY TRANSFER SEGMENT
OVERVIEW
We provide global money transfer services primarily under the brand names Ria, Xe and Dandelion. Ria provides consumer-
to-consumer money transfer services through a global network of more than 608,000 locations and via our website
riamoneytransfer.com. We send money transfers from approximately 142 countries, with money transfer delivery completed
in 196 countries. The initiation of a consumer money transfer occurs through retail agents, Company-owned stores or online,
while the delivery of money transfers can occur with bank correspondents, retailer agents or from certain ATMs. Our
websites, and mobile wallet apps, allow consumers to send funds online, using a bank account or credit or debit card, for pay-
out directly to a bank account or for cash pickup.
In addition, we provide global account-to-account money transfer services under the brand name Xe. We offer money
transfer services via our website (www.xe.com) and Xe app and through customer service representatives. Xe also provides
foreign currency exchange information on its currency data websites (www.xe.com and www.x-rates.com). Through Xe, we
offer cash management solutions and foreign currency risk management services to small-and-medium-sized businesses.
Lastly, under the brand "Dandelion", Ria offers payment processing services to third-party partners. Dandelion is a leading
real-time, global cross-border payment platform; it offers consumer and business transaction processing and fulfillment with
alternative payout channels like bank accounts, cash pick-up and mobile wallets. Dandelion powers cross-border payments
for Xe, Ria, as well as third party banks, fintechs, and big tech platforms.
We monitor the number of transactions made through our money transfer networks. The number of transactions processed on
our network has increased over the last five years at a CAGR of approximately 11.0% as indicated in the following table:
(in millions)
2020
2021
2022
2023
2024
Money transfer transactions per year
116.5
135.1
147.9
161.7
176.9
Our sending agent network includes a variety of agents, including Walmart, large/medium size regional retailers,
convenience stores, bodegas, multi-service shops and phone centers, which are predominantly found in areas with a large
immigrant population. Each Ria money transfer transaction is processed using Euronet's proprietary software system and
checked for security, completeness and compliance with federal and state regulations at every step of the process. Senders
can track the progress of their transfers through Ria's customer service representatives, and funds are delivered quickly to
their beneficiaries via our extensive payout network, which includes large banks and non-bank financial institutions, post
offices and large retailers.
We are one of the largest global money transfer companies measured by revenues and transaction volumes. Our Money
Transfer Segment processed approximately $71.3 billion in money transfers in 2024.
SOURCES OF REVENUES
Revenues in the Money Transfer Segment are primarily derived through the charging of a transaction fee, as well as a margin
earned from purchasing foreign currency at wholesale exchange rates and selling the foreign currency to customers at retail
exchange rates. Sending agents and receiving agents for consumer-to-consumer products each earn fees for cash collection
and distribution services. Euronet recognizes these fees as direct operating costs at the time of sale.
MONEY TRANSFER PRODUCTS AND SERVICES
Money transfer products and services are sold primarily through the following channels: at agent locations, Company-owned
stores, mobile apps, TeleRia phone, and on internet enabled devices at riamoneytransfer.com and xe.com. In an online
transaction, customers send funds, using a bank account or credit or debit card, for pay-out at most of our agent locations
around the world or directly to a bank account.
Euronet | 2024 Annual Report
34
In addition to money transfers, Ria also offers customers bill payment services, payment alternatives such as money orders,
comprehensive check cashing services for a wide variety of issued checks, along with competitive foreign currency exchange
services and mobile top-up. Our bill payment services offer timely posting of customer bills for over 7,900 companies,
including electric and gas utilities and telephone/wireless companies. These services are all offered through our Company-
owned stores while select services are offered through our agents in certain markets.
Under the brand "Dandelion", Ria offers payment processing services to third party partners. The Dandelion cross-border
payments platform provides financial institutions, fintechs such as digital wallets and banks, and enterprise software
companies access to Euronet's money transfer network through an API connection. This enables these companies to build
financial solutions with real-time payment capabilities to the more than 608,000 cash locations, and 4.1 billion bank accounts
and 3.1 billion digital wallet accounts the Euronet money transfer network reaches.
Xe offers an account-to-account international payment service to high-income individuals and small-and-medium sized
businesses, complementing our existing consumer-to-consumer money transfer business. Xe has a multi-channel platform
which allows customers to make transfers, track payments and manage their international payment activity online or through
a customer service representative. Xe offers cash management solutions and foreign currency risk management services to
small-and-medium sized businesses. Xe also offers foreign currency exchange subscriptions and advertising on its websites.
MONEY TRANSFER SEGMENT STRATEGY
The Money Transfer Segment's strategy is to increase the volume of money transfers processed by leveraging our existing
banking and merchant/retailer relationships to expand direct to consumer digital products, and Dandelion’s wholesale
products through its agent and correspondent networks in existing corridors. In addition, we pursue expansion into high-
potential money transfer corridors from the U.S. and internationally beyond the traditional U.S. to Mexico corridor. Further,
we expect to continue to take advantage of cross-selling opportunities with our epay and EFT Processing Segments by
providing prepaid services through our stores and agents and offering our money transfer services at select prepaid retail
locations and ATMs we operate in key markets. We will continue to make investments in our systems to support this growth.
Additionally, we are expanding our Xe business into new markets.
SEASONALITY
Our money transfer business is significantly impacted by seasonality that varies by region. In most of our markets, we
experience increased money transfer transaction levels during the month of May and in the fourth quarter of each year,
coinciding with various holidays. Additionally, in the U.S. to Mexico corridor, we usually experience our heaviest volume
during the May through October time frame, coinciding with the increase in worker migration patterns and various holidays,
and our lowest volumes during the first quarter.
SIGNIFICANT CUSTOMERS AND GOVERNMENT CONTRACTS
No individual customer of our Money Transfer Segment makes up greater than 10% of total consolidated revenues. The
Money Transfer Segment maintains correspondent relationships with a number of financial institutions whose ownership
includes governments of the correspondents' countries of origin.
COMPETITION
Our primary competitors in the money transfer and bill payment business include other large money transfer companies and
electronic money transmitters, together with hundreds of smaller registered and unregistered money transmitters, as well as
certain major national and regional banks, financial institutions, and independent sales organizations. Our competition
includes The Western Union Company, the leading competitor with revenue approximately two times greater than our
revenue. The Western Union Company has a significant competitive advantage due to its greater resources and access to
capital for expansion. This may allow them to offer better pricing terms to customers, agents, or correspondents, which may
result in a loss of our current or potential customers or could force us to lower our prices. In addition to traditional money
payment services, new technologies are emerging that compete with traditional money payment services, such as stored-value
cards, debit networks, web-based services, mobile apps, and digital currencies. Our continued growth also depends upon our
ability to compete effectively with these alternative technologies.
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EMPLOYEES
We had approximately 10,600, 10,000 and 9,500 employees as of December 31, 2024, 2023, and 2022, respectively. We
believe our future success will depend in part on our ability to continue to recruit, retain and motivate qualified management,
technical and administrative employees. Currently, no union represents any of our employees, except in one of our Spanish
subsidiaries. We experienced no work stoppages or strikes by our workforce in 2024 and we consider relations with our
employees to be good.
GOVERNMENT REGULATION
As discussed below, many of our business activities are subject to regulation in our current markets. In the Money Transfer
Segment, we are subject to a wide variety of laws and regulations of the U.S., individual U.S. states and foreign governments.
These include international, federal, and state anti-money laundering and sanctions laws and regulations, money transfer and
payment instrument licensing laws, escheat laws, laws covering consumer privacy, data protection and information security
and consumer disclosure and consumer protection laws. Our operations have also been subject to increasingly strict
requirements intended to help prevent and detect a variety of illegal financial activity, including money laundering, terrorist
financing, unauthorized access to personal customer data and other illegal activities. The more significant of these laws and
regulations are discussed below. Noncompliance with these laws and requirements could result in the loss or suspension of
licenses or registrations required to provide money transfer services through retail agents, Company owned stores, mobile
apps or online. For more discussion, see Item 1A - Risk Factors.
Any further expansion of our activity into areas that are qualified as "financial activity" under local legislation may subject us
to licensing and we may be required to comply with various conditions to obtain such licenses. Moreover, the interpretations
of bank regulatory authorities as to the activity we currently conduct might change in the future. We monitor our business for
compliance with applicable laws or regulations regarding financial activities.
Certain of our European product offerings, including in particular, our money transfer services, merchant acquiring and bill
payment products, are regulated payment services requiring a license under the Second Payment Services Directive, or PSD2.
PSD2 requires a license to perform certain defined "payment services" in a European Economic Area (“EEA”) Member State
and such license may be extended throughout other Member States of the EEA through passporting of the license (either on a
freedom of service or freedom of establishment basis). Conditions for obtaining the license include minimum capital
requirements, establishment of procedures for safeguarding of funds, and certain governance and reporting requirements. In
addition, certain obligations relating to internal controls and the conduct of business, in particular, consumer disclosure
requirements and certain rules regarding the timing and settlement of payments, must be met. We have payment institution
licenses in the U.K., France, Germany, Greece and Spain and are complying with these requirements. We passported our
U.K., German, and Spanish payment services authorizations to several EEA Member States. As a result of Brexit, our U.K,
payment institution is no longer capable of passporting its license into the EEA and the relevant EEA business was
transferred to our other licenses prior to the end of the Brexit transition period. Additionally, in the U.K., we have obtained an
e-money license. The e-money license allows Euronet to issue e-money and provide the same payment services as a PSD2
licensee. The e-money license imposes certain requirements similar to those of the payment services license, including
minimum capital requirements, consumer disclosure and internal controls.
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MONEY TRANSFER AND PAYMENT INSTRUMENT LICENSING
Licensing requirements in the U.S. are generally driven by the various state banking departments regulating the businesses of
money transfers and issuances of payment instruments. Typical requirements include the meeting of minimum net worth
requirements, maintaining permissible investments (e.g., cash, agent receivables, and government-backed securities) at levels
commensurate with outstanding payment obligations and the filing of a security instrument (typically in the form of a surety
bond) to offset the risk of default of trustee obligations by the license holder. We are required by many state regulators to
submit ongoing reports of licensed activity, most often on a quarterly or monthly basis, that address changes to agent and
branch locations, operating and financial performance, permissible investments, and outstanding transmission liabilities.
These periodic reports are utilized by the regulator to monitor ongoing compliance with state licensing laws. A number of
major state regulators also conduct periodic examinations of license holders and their authorized delegates, generally with a
frequency of every one to two years. Examinations are most often comprehensive in nature, addressing both the safety and
soundness and overall compliance by the license holder with regard to state and federal regulations. Such examinations are
typically performed on-site at the license holder's headquarters or operations center; however, certain states may choose to
perform examinations off-site as well.
Money transmitters, issuers of payment instruments and their agents are required to comply with U.S. federal, state and/or
foreign anti-money laundering laws and regulations. In summary, our Money Transfer Segment, as well as our agent
network, is subject to regulations issued by the different state and foreign national regulators who license us, the Office of
Foreign Assets Control ("OFAC"), the Bank Secrecy Act as amended by the USA PATRIOT Act ("BSA"), the Financial
Crimes Enforcement Network ("FINCEN"), as well as any existing or future regulations that impact any aspect of our money
transfer business.
A similar set of regulations applies to our money transfer businesses in most of the foreign countries in which we originate
transactions. These laws and regulations include monetary limits for money transfers into or out of a country, rules regarding
the foreign currency exchange rates offered, as well as other limitations or rules for which we must maintain compliance.
Regulatory bodies in the U.S. and abroad may impose additional rules on the conduct of our Money Transfer Segment that
could have a significant impact on our operations and our agent network. In this regard, the U.S. federal government has
implemented U.S. federal regulations for electronic money transfers, including the Electronic Fund Transfer Act, which
provides consumer protections for international remittance transfers. The Consumer Financial Protection Bureau ("CFPB"),
adopted a rule that provides additional protections for consumers who transmit money internationally, including disclosure
requirements, cancellation rights and error resolution procedures for consumer complaints. Under U.S. federal law, it is
unlawful for any provider of consumer financial products or services to engage in unfair, deceptive, or abusive acts or
practices (collectively, "UDAAPs"). The CFPB has rule making and enforcement authority to prevent UDAAPs in
connection with transactions for consumer financial products or services. The CFPB audits our compliance with these rules,
and we may be subject to fines or penalties for violations of any of such rules.
ESCHEAT REGULATIONS
Our Money Transfer Segment is subject to the unclaimed or abandoned property (i.e., "escheat") regulations of the United
States and certain foreign countries in which we operate. These laws require us to turn over property held by Euronet on
behalf of others remaining unclaimed after specified periods of time (i.e., "dormancy" or "escheat" periods). Such abandoned
property is generally attributable to the failure of beneficiary parties to claim money transfers or the failure to negotiate
money orders, a form of payment instrument. We have policies and programs in place to help us monitor the required
information relating to each money transfer or payment instrument for possible eventual reporting to the jurisdiction from
which the order was originally received. In the U.S., reporting of unclaimed property by money service companies is
performed annually, generally with a due date of on or before November 1. State banking department regulators will typically
include a review of Euronet escheat procedures and related filings as part of their examination protocol.
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PRIVACY AND INFORMATION SECURITY REGULATIONS
Our operations involve the collection and storage of certain types of personal customer data that are subject to privacy and
security laws in the U.S. and abroad. In the United States, we are subject to the Gramm-Leach-Bliley Act ("GLBA") and
various state laws including California Consumer Privacy Act ("CCPA"), which require that financial institutions have in
place policies regarding the collection, processing, storage, and disclosure of information considered nonpublic personal
information. Laws in other countries include the E.U.'s General Data Protection Regulation (2016/679) ("GDPR"), as well as
the laws of other countries. The GDPR establishes stringent requirements for the collection and processing of personal
information of individuals within the E.U. The GDPR establishes certain rights of individuals regarding personal information
processed by companies as well as requirements for information security and imposes significant fines that may be revenue-
based for violation of its requirements. Any failure on our part to meet the requirements of the GDPR could result in the
imposition of fines and penalties that could affect our financial results.
We comply with the GLBA and applicable state privacy provisions. In July 2020, the European Court of Justice invalidated
the EU-US Privacy Shield as a lawful mechanism for transferring personal data to the US as a result of concerns related to
surveillance by law enforcement agencies and a lack of judicial redress by individuals in the EU (known as the "Schrems II"
decision). Despite the July 2020 ruling of the European Court of Justice, we believe we remain in compliance with E.U.
regulations regarding the transfer of personal data to the United States and other jurisdictions.
Recently, as identity theft has been on the rise, there has been increased public attention to concerns about information
security and consumer privacy, accompanied by laws and regulations addressing the issue. We believe we are compliant with
these laws and regulations; however, this is a rapidly evolving area and there can be no assurance that we will continue to
meet the existing and new regulations, which could have a material, adverse impact on our Money Transfer
Segment business.
ANTI-CORRUPTION AND BRIBERY
We are subject to the Foreign Corrupt Practices Act ("FCPA"), which prohibits U.S. and other business entities from making
improper payments to foreign government officials, political parties, or political party officials. We are also subject to the
applicable anti-corruption laws in the jurisdictions in which we operate, such as the U.K. Bribery Act, thus potentially
exposing us to liability and potential penalties in multiple jurisdictions. The anti-corruption provisions of the FCPA are
enforced by the United States Department of Justice. In addition, the Securities and Exchange Commission ("SEC") requires
strict compliance with certain accounting and internal control standards set forth under the FCPA. Because our services are
offered in many countries throughout the world and we do business with a number of banks and other financial institutions
owned or controlled by foreign governments, we face a higher risk associated with FCPA, the U.K. Bribery Act and other
similar laws than many other companies and we have policies and procedures in place to address compliance with the FCPA,
the U.K. Bribery Act and other similar laws. Any determination that we have violated these laws could have an adverse effect
on our business, financial position, and results of operations. Failure to comply with our policies and procedures or the FCPA
and other laws can expose Euronet and/or individual employees to potentially severe criminal and civil penalties. Such
penalties could have a material adverse effect on our business, financial condition, and results of operations.
SANCTIONS COMPLIANCE
In addition to anti-money laundering laws and regulations, our products and services are subject to economic and trade
sanctions laws and regulations promulgated by OFAC and other jurisdictions in which our products and services are offered.
The sanctions laws and regulations prohibit or restrict transactions to or from (or dealings with or involving) certain
countries, regions, governments, and in certain circumstances, specified foreign nationals, as well as with certain individuals
and entities such as narcotics traffickers, terrorists, and terrorist organizations. These sanctions laws and regulations require
screening of transactions against government watch-lists, including but not limited to, the watch-lists maintained by OFAC,
and include transactional and other reporting to government agencies.
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COMPLIANCE POLICIES AND PROGRAMS
We have developed risk-based policies and programs to comply with existing and new laws, regulations and
other requirements outlined above, including having dedicated compliance personnel, training programs, automated
monitoring systems and support functions for our offices and agents. To assist in managing and monitoring our money
laundering and terrorist financing risks, we continue to have our compliance programs, in many countries, independently
examined on an annual basis. In addition, we continue to enhance our anti-money laundering and counter-terrorist financing
compliance policy, procedures and monitoring systems, as well as our consumer protection policies and procedures.
INTELLECTUAL PROPERTY
Each of our three operating segments utilizes intellectual property which is protected in varying degrees by a combination
of trademark, patent, and copyright laws, as well as trade secret protection, license, and confidentiality agreements.
The brand names of "Ria," "Ria Financial Services," "Ria Envia," "Xe," "Dandelion," derivations of those brand names and
certain other brand names, and related logo's, are material to our Money Transfer Segment and are registered trademarks
and/or service marks in most of the markets in which our Money Transfer Segment operates. Consumer perception of these
brand names and logos is important to the growth prospects of our money transfer business. We also hold a U.S. patent on a
card-based money transfer and bill payment system that allows transactions to be initiated primarily through POS terminals
and integrated cash register systems.
With respect to our EFT Processing Segment, we have registered or applied for registration of our trademarks, including the
names "Euronet" and/or our related logo, as well as other trade names in most markets in which these trademarks are used.
Certain trademark authorities have notified us that they consider these trademarks to be generic and, therefore, not protected
by trademark laws. This determination does not affect our ability to use the Euronet trademark in those markets, but it would
prevent us from stopping other parties from using it in competition with Euronet. We have registered the "Euronet" trademark
in the class of ATM machines in Germany, the U.K., and certain other Western European countries. We have filed pending
applications and/or obtained patents for a number of our new software products and our processing technology, including
certain top-up services and DCC services.
With respect to our epay Segment, we maintain registered trademarks for the "epay" brand and logo in the U.S., U.K., E.U.
(through a Community Trademark application, which provides enforceability of the epay trademark in all member states of
the EU), Brazil, Singapore, India, Australia, and New Zealand. We have filed trademark applications for additional iterations
of the "epay” brand in India, which are pending.
Additionally, we have filed a trademark application for the “epay” brand with the Madrid Protocol, which, if granted, will
simplify the process to extending the international protection of the epay trademark. We cannot be certain that we are entitled
to use the epay trademark in any markets other than those in which we have registered the trademark; however, before
entering new markets, we conduct searches to understand our usage rights. We have filed patent applications for certain POS
top-up and other epay technology. Certain patents have been granted while others have been refused or are still pending. We
also hold a patent license covering certain of epay's operations in the U.S.
Technology in the areas in which we operate is developing very rapidly, and we are aware that many other companies have
filed patent applications for products, processes, and services similar to those we provide. The procedures of the U.S. patent
office make it difficult for us to predict whether our patent applications will be approved or will be granted priority dates that
are earlier than other patents that have been filed for similar products or services. Moreover, many "process patents" have
been filed in the U.S. over recent years covering processes that are in wide use in the money transfer, EFT, and prepaid
processing industries. If any of these patents are considered to cover technology that has been incorporated into our systems,
we may be required to obtain additional licenses and pay royalties to the holders of such patents to continue to use the
affected technology or be prohibited from continuing the offering of such services if licenses are not obtained. This could
materially and adversely affect our business.
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INFORMATION ABOUT OUR EXECUTIVE OFFICERS
The name, age, period of service and position held by each of our Executive Officers as of December 31, 2024 are as follows:
Name
Age
Served Since
Position Held
Michael J. Brown
68
July 1994
Chairman, Chief Executive Officer and President
Rick L. Weller
67
November 2002
Executive Vice President - Chief Financial Officer
Adam J. Godderz
50
May 2024
General Counsel and Secretary
Kevin J. Caponecchi
58
July 2007
Executive Vice President - Chief Executive Officer, epay, Software and EFT
Asia Pacific Division
Juan C. Bianchi
54
April 2007
Executive Vice President - Chief Executive Officer,
Money Transfer Segment
Nikos Fountas
61
September 2009
Executive Vice President - Chief Executive Officer, EFT Europe,
Middle East and Africa Division
Martin L. Bruckner
49
January 2014
Senior Vice President - Chief Technology Officer
MICHAEL J. BROWN, Chairman, Chief Executive Officer and President. Mr. Brown co-founded Euronet in 1994 and has
served as its chief executive officer ever since. He is chairman of Euronet’s board of directors and the Company’s President.
An accomplished entrepreneur with 30+ years of combined experience in the computer software and digital payments
business, he is actively involved in Euronet's day-to-day operations while overseeing the company’s business strategy,
financial performance, and growth across all markets. Mr. Brown’s guidance has been instrumental in developing Euronet’s
global cash/digital payments network and diverse products and services that provide Euronet with resiliency to changing
market conditions and continual year-over-year growth in the global payments marketplace. Following early successes in his
career with Kansas City-area companies Informix and Visual Tools, Mr. Brown founded Euronet in 1994 in Budapest,
Hungary, by installing the first independent, non-bank-owned ATM network in Central Europe. Guiding the company
through several strategic acquisitions and technology endeavors since then, Mr. Brown has grown Euronet to approximately
10,600 employees and 67 offices worldwide. He has also brought financial inclusion and convenience to businesses and
consumers through a payments network spanning more than 200 countries and territories. A lifelong Kansas Citian, Mr.
Brown is an active supporter and past and present board member of many Kansas City-area charities.
RICK L. WELLER, Executive Vice President, Chief Financial Officer. Mr. Weller has been Executive Vice President and
Chief Financial Officer of Euronet since he joined Euronet in November 2002. From January 2002 to October 2002, he was
the sole proprietor of Pivotal Associates, a business development firm. From November 1999 to December 2001, Mr. Weller
held the position of Chief Operating Officer of ionex telecommunications, inc., a local exchange company. He is a certified
public accountant and received his B.S. in Accounting from the University of Central Missouri.
ADAM J. GODDERZ, General Counsel and Secretary. Mr. Godderz has been General Counsel and Secretary
of Euronet since joining the Company in May 2024. Prior to joining Euronet, Mr. Godderz was with Kansas City Southern
for 16 years, most recently serving as their Senior Vice-President Legal Officer and Corporate Secretary from 2019-2023.
KEVIN J. CAPONECCHI, Executive Vice President, Chief Executive Officer, epay, Software and EFT Asia Pacific
Division. Mr. Caponecchi joined Euronet in July 2007 and served as President until assuming his current role in December
2014. Prior to joining Euronet, Mr. Caponecchi served in various capacities with subsidiaries of General Electric Company
for 17 years. From 2003 until June 2007, Mr. Caponecchi served as President of GE Global Signaling, a provider of products
and services to freight, passenger and mass transit systems. From 1998 through 2002, Mr. Caponecchi served as General
Manager - Technology for GE Consumer & Industrial, a provider of consumer appliances, lighting products and electrical
products. Mr. Caponecchi holds degrees in physics from Franklin and Marshall College and industrial engineering from
Columbia University.
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JUAN C. BIANCHI, Executive Vice President - Chief Executive Officer, Money Transfer Segment. Mr. Bianchi joined
Euronet subsequent to the acquisition of Ria in 2007. Prior to the acquisition, Mr. Bianchi served as the Chief Executive
Officer of Ria and has spent his entire career at either Ria or AFEX Money Express, a money transfer company purchased by
Ria's founders. Mr. Bianchi began his career at AFEX in Chile in 1992, joined AFEX USA's operations in 1996, and became
chief operating officer of AFEX-Ria in 2003. Mr. Bianchi studied business at the Universidad Andres Bello in Chile and
completed the Executive Program in Management at UCLA's John E. Anderson School of Business.
NIKOS FOUNTAS, Executive Vice President - Chief Executive Officer, EFT Europe, Middle East and Africa Division. Mr.
Fountas has been Executive Vice President of the Company's EFT Processing Segment in Europe since December 2012. Mr.
Fountas joined Euronet subsequent to the Company's 2005 acquisition of Instreamline S.A. (now Euronet Card Services) in
Greece. He served as managing director of the Company's Greece EFT subsidiary, responsible for Euronet's European card
processing and cross-border acquiring operations until September 2009. In September 2009, Mr. Fountas took over
responsibilities as managing director of Euronet's Europe EFT Processing Segment. Prior to joining Euronet, Mr. Fountas
spent over 20 years working in management and executive-level positions in the IT field for several companies, including
IBM for 12 years. He has a degree in computer science (Honors) from York University in Canada and post graduate studies
in business administration from Henley Management School and IBM Business Professional Institute.
Dr. MARTIN L. BRUCKNER, Senior Vice President - Chief Technology Officer. Dr. Bruckner has been Senior Vice
President and Chief Technology Officer of Euronet since January 2014. Dr. Bruckner joined Euronet in 2007 as head of
software development and IT operations for Transact GmbH. In 2009, he was promoted to Chief Technology Officer of
Euronet's epay segment. Prior to joining Euronet, Dr. Bruckner established his own IT company called MLB Development
GmbH, where he developed software systems for various European companies. Dr. Bruckner has more than 20 years of
software development experience and published his first software product (BBS systems) at the age of 15. He received a
Doctorate of Law from the University of Rostock and a law degree from the University of Bielefeld.
AVAILABILITY OF REPORTS, CERTAIN COMMITTEE CHARTERS, AND OTHER INFORMATION
Our website addresses are www.euronetworldwide.com and www.eeft.com. We make available all SEC public filings,
including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all
amendments to those reports filed or furnished pursuant to Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended ("Exchange Act") on our websites free of charge as soon as reasonably practicable after these documents are
electronically filed with, or furnished to, the SEC. The information on our websites is not, and shall not be deemed to be, a
part of this report or incorporated into any other filings we make with the SEC. In addition, our SEC filings are made
available via the SEC's EDGAR filing system accessible at www.sec.gov.
The charters for our Audit, Compensation, and Corporate Governance and Nominating Committees, as well as the Code of
Business Conduct & Ethics for our employees, including our Chief Executive Officer and Chief Financial Officer, are
available on our website at www.euronetworldwide.com in the "For Investors" section under "Corporate Governance /
Documents and Charters".
ITEM 1A. RISK FACTORS
Our operations are subject to a number of risks and uncertainties, including those described below. You should carefully
consider the risks described below before making an investment decision. The risks and uncertainties described below are not
necessarily organized in order of priority or probability.
If any of the following risks actually occurs, our business, financial condition or results of operations could be materially
adversely affected. In that case, the trading price of our Common Stock could decline substantially.
This Annual Report also contains forward-looking statements that involve risks and uncertainties. Our actual results could
differ materially from those anticipated in the forward-looking statements as a result of a number of factors, including the
risks described below and elsewhere in this Annual Report.
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GOVERNMENT AND REGULATION
As a multinational company, we face legal and operational risks from diverse local regulations that may impact
our operations.
Conducting business internationally complicates compliance with varied regional laws. Our financial transaction processing
networks introduce new products that are subject to rapidly changing regulations. Despite having skilled local personnel, we
cannot guarantee full compliance with customs, currency controls, data protection, anti-money laundering, sanctions,
employment, and transfer pricing laws. We also cannot predict potential changes to these regulations that may negatively
affect our business.
For our epay Segment, as we expand our electronic payment offerings, these may become subject to state, federal, or
international laws requiring licensure for us and our partners. Increased regulation could adversely impact our epay business,
particularly if gift voucher regulations change, affecting revenue from unredeemed vouchers.
Our money transfer services are regulated by U.S. states, the federal government, and foreign governments where we operate.
Changes in these regulations or our ability to maintain necessary licenses may materially affect our financial results and cash
flow. Furthermore, evolving regulations may alter the competitive landscape, potentially impacting our financial outcomes.
New laws or changes from organizations like Visa® and Mastercard® that limit our pricing or services could substantially
affect our business. Additionally, shifts in regulatory interpretations could heighten the risk of enforcement actions, fines, and
penalties across jurisdictions.
Our operations in emerging markets, including Central and Eastern Europe, the Middle East, Asia Pacific, Africa, and South
America, expose us to significant geopolitical and economic risks.
•
Political Instability: Political unrest, regime change, and military conflicts can disrupt our operations, damage our
assets, and impact consumer confidence.
•
Economic Downturns: Economic downturns, including those driven by inflation, currency fluctuations, and global
recessions, can reduce demand for our services and negatively impact our financial performance.
•
Regulatory Uncertainty: Changes in government policies, including those related to foreign investment, currency
controls, and taxation, can create significant uncertainty and operational challenges.
•
Repatriation of Profits: Restrictions on the repatriation of profits from foreign subsidiaries can limit our ability to
access capital and negatively impact our financial flexibility.
The ongoing geopolitical tensions, including the conflict in Ukraine, highlight the potential for unforeseen events to
significantly impact our business and financial results.
We conduct business in many international markets with complex and evolving tax rules, including value added tax rules,
which subject us to international tax compliance risks which could adversely affect our operating results.
While we obtain advice from legal and tax advisors as necessary to help assure compliance with tax and regulatory matters,
most tax jurisdictions that we operate in have complex and subjective rules regarding the valuation of intercompany services,
cross-border payments between affiliated companies and the related effects on income tax, value added tax (“VAT”), transfer
tax and share registration tax. Our foreign subsidiaries frequently undergo VAT reviews, and from time to time undergo
comprehensive tax reviews and may be required to make additional tax payments should the review result in different
interpretations, allocations or valuations of our products and services.
Additionally, as a result of economic downturns, tax receipts have decreased and/or government spending has increased in
many of the countries in which we operate. Consequently, governments may increase tax rates or implement new taxes in
order to compensate for gaps between tax revenues and expenditures. Governments may prohibit or restrict the use of certain
legal structures designed to minimize taxes. Any such tax increases, whether borne by us or our customers, could negatively
impact our operating results or the demand for our products and services.
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The European Union ("EU") member states formally adopted the EU's Pillar Two Directive, which was established by the
Organization for Economic Co-operation and Development, and which generally provides for a 15 percent minimum
effective tax rate for multinational enterprises, in every jurisdiction in which they operate. While we do not anticipate that the
Pillar Two Directive will have a material impact on our tax provision or effective tax rate, we continue to monitor
evolving tax legislation in the jurisdictions in which we operate, including eligibility for any transitional safe harbor rules.
We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act or other similar anti-
corruption laws.
Our global operations expose us to the risk of violating anti-corruption laws, including the U.S. Foreign Corrupt Practices
Act (FCPA) and similar laws in other jurisdictions. These laws prohibit improper payments to government officials or
employees of commercial enterprises. We operate in various countries with varying levels of corruption, and complying with
these laws can sometimes conflict with local customs. Our interactions with government officials and our contracts with
foreign entities increase the risk of violations.
Despite our compliance policies and procedures, there is no guarantee that all our employees, consultants, and agents will
adhere to them. Violations of anti-corruption laws could result in significant penalties, including criminal and civil fines,
which could materially harm our financial performance.
IMPACT OF IMMIGRATION PATTERNS
Our money transfer business heavily relies on remittances sent by workers who migrate to foreign countries for
employment. Changes in U.S. and foreign government immigration policies, including those related to worker visas and
border controls, could significantly impact migration patterns. A decline in immigration due to policy changes could
adversely affect the volume of money transfers processed through our platform, negatively impacting our revenues and
earnings.
MARKET EXPANSION AND REGULATORY RISKS
Our future growth depends on our ability to expand our market share in the existing electronic money transfer market and
successfully enter new markets. Achieving this requires significant investments in technology and distribution channels,
which may not be feasible given our available resources. Additionally, the evolving regulatory landscape, including anti-
money laundering (AML), sanctions, and consumer protection regulations, presents significant compliance challenges. Non-
compliance with these regulations could result in substantial fines and penalties, potentially impacting our financial
performance and hindering our growth prospects.
Expectations relating to environmental, social and governance considerations and related reporting obligations expose
us to potential liabilities, increased costs, reputational harm, and other adverse effects on our business.
Many governments, regulators, investors, employees, customers, and other stakeholders are increasingly focused on
environmental, social and governance considerations relating to businesses, including climate change and greenhouse gas
emissions, human and civil rights, and diversity, equity and inclusion. In addition, we make statements about our goals and
initiatives through our various non-financial reports, information provided on our website, press statements and other
communications. Responding to these environmental, social and governance considerations and implementation of these
goals and initiatives involves risks and uncertainties, requires investments, and depends in part on third-party performance or
data that is outside our control. We cannot guarantee that we will achieve our environmental, social and governance goals and
initiatives. In addition, some stakeholders may disagree with our goals and initiatives. Any failure, or perceived failure, by us
to achieve our goals, further our initiatives, adhere to our public statements, comply with federal, state, or international
environmental, social and governance laws and regulations, or meet evolving and varied stakeholder expectations and
standards could result in legal and regulatory proceedings against us and materially adversely affect our business, reputation,
results of operations, financial condition and stock price.
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Our business, results of operations and financial condition could be adversely impacted by unfavorable results of legal
proceedings or government investigations.
We are subject to various claims, legal proceedings and government investigations that have arisen in the ordinary course of
business and have not yet been fully resolved, and new matters may arise in the future. In addition, agreements entered into
by us sometimes include indemnification provisions which can subject us to costs and damages in the event of a claim against
an indemnified third party. The number of claims, legal proceedings and government investigations involving us, and the
alleged magnitude of such claims, proceedings, and government investigations, has generally increased over time and may
continue to increase. In recognition of these considerations, we may enter into agreements or other arrangements to settle
litigation and resolve such challenges. There can be no assurance such agreements can be obtained on acceptable terms or
that litigation will not occur. These agreements can also significantly increase our cost of sales and operating expenses and
require us to change its business practices and limit our ability to offer certain products and services. The outcome of
litigation or government investigations is inherently uncertain. If one or more legal matters were resolved against us or an
indemnified third party in a reporting period for amounts above management’s expectations, our results of operations and
financial condition for that reporting period could be materially adversely affected. Further, such an outcome can result in
significant compensatory, punitive or trebled monetary damages, disgorgement of revenue or profits, remedial corporate
measures or injunctive relief against us, and has from time to time required, and can in the future require, us to change our
business practices and limit our ability to offer certain products and services, all of which could materially adversely affect
the Company’s business, reputation, results of operations and financial condition. While we maintain insurance coverage for
certain types of claims, such insurance coverage may be insufficient to cover all losses or all types of claims that may arise.
SUPPLY CHAIN AND THIRD PARTIES
Because we typically enter into short-term contracts with content providers and retailers, our epay business is subject
to the risk of non-renewal of those contracts, or renewal under less favorable terms.
Our contracts with content providers to distribute and process content, including prepaid mobile airtime top-up services,
typically have terms of less than three years. Our contracts with content providers are not exclusive, so these providers may
enter into contracts with other service providers. In addition, our service contracts with major retailers typically have terms of
one to three years. The cancellation or non-renewal of one or more of our significant content provider or retail contracts, or of
a large enough group of our contracts with smaller retailers, could have a material adverse effect on our business, financial
condition, and results of operations. The renewal of contracts under less favorable payment terms, margins or other terms
could have a material adverse impact on our working capital requirements and/or results from operations. In addition, our
contracts generally permit content providers to reduce our margin or commission at any time. Commission and margin
revenue or fee reductions by any of the content providers could also have a material adverse effect on our business, financial
condition, or results of operations.
Our epay business is focused on expanding and differentiating its suite of prepaid digital product offerings on a global basis,
there can be no assurance that we will be able to enter into relationships on favorable terms with additional content providers
or renew or expand current relationships and contracts on favorable terms. The inability to continue to grow our suite of
electronic content and electronic payment product offerings could have a material adverse effect on our business, financial
condition, and results of operations.
The stability and growth of our EFT Processing Segment may be adversely affected if we are unable to maintain our
current card acceptance and ATM management agreements with banks and international card organizations, and to
secure new arrangements for card acceptance and ATM management.
The stability and future growth of our EFT Processing Segment depends in part on our ability to sign card acceptance and
ATM management agreements with banks and international card organizations. Card acceptance agreements allow
our ATMs to accept credit and debit cards issued by banks and international card organizations. ATM management
agreements generate service income from our management of ATMs for banks.
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These agreements have expiration dates, and banks and international card organizations are generally not obligated to renew
them. Our existing contracts generally have terms of five to seven years and a number of them expire or are up for renewal
each year. In some cases, banks may terminate their contracts prior to the expiration of their terms. We cannot assure you that
we will be able to continue to sign or maintain these agreements on terms and conditions acceptable to us or that international
card organizations will continue to permit our ATMs to accept their credit and debit cards. The inability to continue to sign or
maintain these agreements, or to continue to accept the credit and debit cards of local banks and international card
organizations at our ATMs in the future, could have a material adverse effect on our business, growth, financial condition, or
results of operations.
ATM PROCESSING RISKS
Our ATM business faces several key risks related to:
Transaction Fees:
•
We are subject to competitive pressures on ATM transaction fees, including potential reductions in interchange fees
set by card networks and declining fees charged to customers.
•
Our ability to maintain or increase transaction fees is limited, as they are often determined by market forces and
agreements with other industry players.
Settlement Risks:
•
We rely on third parties, such as card networks and processing switches, for the settlement of transactions.
•
Changes in rules or procedures by these third parties, or their failure to fulfill their obligations, could disrupt
settlement processes and negatively impact our revenue.
Dependence on Third Parties:
•
Our business is dependent on the continued cooperation and support of card networks, processing switches, and
other third parties.
•
Changes in their policies, rules, or fees could significantly impact our profitability.
We could incur substantial losses if one of the third-party depository institutions or financial institutions we use in our
operations were to fail.
As part of our business operations, we maintain cash balances at third party depository institutions. We could incur
substantial losses if a financial institution in which we have significant deposits fails.
Our money transfer business involves transferring funds internationally and is dependent upon foreign and domestic financial
institutions, including our competitors, to execute funds transfers and foreign currency transactions. Changes to existing
regulations of financial institution operations, such as those designed to combat terrorism or money laundering, could require
us to alter our operating procedures in a manner that increases our cost of doing business or to terminate certain product
offerings. In addition, as a result of existing regulations and/or changes to those regulations, financial institutions could
decide to cease providing the services on which we depend, requiring us to terminate certain product offerings.
Dependence on Third Parties for ATM Operations
Our ATM operations rely heavily on third parties, including:
•
Sponsor Banks: In many markets, we require sponsor bank arrangements to comply with local regulations and
operate on financial transaction switching networks.
•
Cash Providers: We rely on third-party financial institutions to provide a significant portion of the cash required to
operate our ATM networks.
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Dependence on these third parties presents several risks:
•
Loss of Operating Licenses: Failure to secure or maintain sponsor bank arrangements could prevent us from
operating in certain markets.
•
Disruption of Cash Supply: If cash providers terminate their agreements or are unable to fulfill their obligations, it
could severely disrupt our ATM operations and require us to find alternative sources of funding, potentially at
higher costs.
•
Negotiation Challenges: Negotiating and maintaining favorable terms with sponsor banks and cash providers can be
challenging and may involve significant costs.
These risks could adversely impact our ability to operate our ATM networks, increase our operating costs, and negatively
impact our financial results.
If we are unable to maintain our money transfer agent and correspondent networks, our business may be
adversely affected.
Our consumer-to-consumer money transfer-based revenues are primarily generated through the use of our agent and
correspondent networks. If agents or correspondents decide to leave our network or if we are unable to sign new agents or
correspondents, our revenue and profit growth rates may be adversely affected. Our agents and correspondents are also
subject to a wide variety of laws and regulations that vary significantly, depending on the legal jurisdiction. Changes in these
laws and regulations could adversely affect our ability to maintain the networks or the cost of providing money transfer
services. In addition, agents may generate fewer transactions or less revenue due to various factors, including increased
competition. Because our agents and correspondents are third parties that may sell products and provide services in addition
to our money transfer services, they may encounter business difficulties unrelated to the provision of our services, which may
cause the agents or correspondents to reduce their number of locations or hours of operation, or cease doing
business altogether.
CORPORATE GROWTH STRATEGIES
Risks Related to Acquisitions
Our growth strategy may include future acquisitions. However, acquisitions involve inherent risks, including:
•
Integration Challenges: Successfully integrating acquired businesses can be complex and challenging. Difficulties
in integrating operations, technology, and personnel can disrupt business operations, negatively impact customer
relationships, and hinder the achievement of anticipated synergies.
•
Unforeseen Liabilities and Contingencies: Acquired businesses may have undisclosed liabilities or contingent
obligations that could adversely impact our financial results.
•
Difficulties in Achieving Synergies: Realizing the anticipated synergies from acquisitions can be difficult and may
take longer than expected. Factors such as unforeseen competitive pressures, regulatory changes, and economic
downturns can hinder the achievement of these synergies.
•
Dilution of Shareholder Value: Acquisitions may be financed through the issuance of equity, which could dilute
existing shareholders' ownership and potentially depress the market price of our common stock.
If consumer confidence in our business or brands declines, our business may be adversely affected.
A decline in consumer confidence in our brands, our ability to provide reliable and secure services, or the money transfer
industry as a whole could materially and adversely impact our business.
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Specifically, a decline in consumer confidence could:
•
Reduce transaction volumes: Customers may choose to use alternative money transfer methods, such as cash or
competing services, or may reduce their overall remittance activity.
•
Increase customer churn: Existing customers may switch to competitors perceived to be more reliable or
trustworthy.
•
Damage our reputation: Negative publicity or perceived service disruptions can erode customer trust and
negatively impact our brand image.
•
Increase operating costs: We may need to invest in additional marketing and customer service efforts to regain
customer trust and mitigate the impact of declining confidence.
A significant decline in consumer confidence could have a material adverse effect on our revenue, profitability, and
financial condition.
CAPITAL MARKETS AND ECONOMIC CONDITIONS
Macroeconomic and Currency Risks
Our business is subject to various macroeconomic and currency risks, including:
•
Economic Cycles and Seasonality:
o Economic downturns, recessions, and changes in consumer spending patterns can negatively impact
transaction volumes across our business segments.
o Seasonal fluctuations in demand, such as holiday seasonality and tourism patterns, can lead to significant
variations in our quarterly results.
•
Currency Fluctuations:
o Fluctuations in foreign exchange rates can adversely impact our financial results, particularly in the Money
Transfer Segment where we are exposed to currency exchange risk between the currencies of sending and
receiving countries.
o The adoption of new currencies in the countries where we operate could also create significant operational
and financial challenges.
•
Geopolitical and Economic Instability:
o Geopolitical events, such as wars, political instability, and natural disasters, can disrupt our operations and
negatively impact customer demand.
These risks can impact our business by:
•
Reducing transaction volumes.
•
Increasing operating costs.
•
Impairing the value of our assets.
•
Creating volatility in our financial results.
We utilize various strategies to mitigate these risks, such as:
•
Diversification of our geographic footprint.
•
Hedging strategies to mitigate currency exchange risk.
•
Continuous monitoring of economic and political developments.
However, we cannot fully eliminate the impact of these macroeconomic and currency risks on our business.
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We have a substantial amount of debt and other contractual commitments, and while the cost of servicing those
obligations is not expected to adversely affect our business, the risk could increase if we incur more debt. We may be
required to prepay our obligations under the credit facility.
As of December 31, 2024, total liabilities were $4,605 million, of which $1,379 million represents long-term liabilities, and
total assets were $5,835 million. We may not have sufficient funds to satisfy all such obligations as a result of a variety of
factors, some of which may be beyond our control. If the opportunity of a strategic acquisition arises or if we enter into new
contracts that require the installation or servicing of infrastructure, such as processing centers, ATM machines or POS
terminals on a faster pace than anticipated, we may be required to incur additional debt for these purposes and to fund our
working capital needs, including ATM network cash, which we may not be able to obtain. The level of our indebtedness
could have important consequences to investors, including the following:
•
our ability to obtain any necessary financing in the future for working capital, capital expenditures, debt service
requirements or other purposes may be limited, or financing may be unavailable;
•
a portion of our cash flows must be dedicated to the payment of principal and interest on our indebtedness and other
obligations and will not be available for use in our business;
•
our level of indebtedness could limit our flexibility in planning for, or reacting to, changes in our business and the
markets in which we operate;
•
our level of indebtedness will make us more vulnerable to changes in general economic conditions and/or a downturn
in our business, thereby making it more difficult for us to satisfy our obligations; and
•
because a portion of our debt bears interest at a variable rate of interest, our actual debt service obligations could
increase as a result of adverse changes in interest rates.
If we fail to make required debt payments, or if we fail to comply with other covenants in our debt service agreements, we
would be in default under the terms of these agreements. This default would permit the holders of the indebtedness to
accelerate repayment of this debt and could cause defaults under other indebtedness that we have.
Restrictive covenants in our credit facilities may adversely affect us. Our Credit Facility (as defined below)
contains two financial covenants that we must meet as defined in the agreement: (1) Consolidated Total Leverage Ratio, and
(2) Consolidated Interest Coverage Ratio. To remain in compliance with our debt covenants, we may be required to increase
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), repay debt, or both. We cannot assure you that
we will have sufficient assets, liquidity or EBITDA to meet or avoid these obligations, which could have an adverse impact
on our financial condition.
Our ability to secure additional financing for growth or to refinance any of our existing debt is also dependent upon the
availability of credit in the marketplace, which has experienced severe disruptions in the past. If we are unable to secure
additional financing or such financing is not available at acceptable terms, we may be unable to secure financing for growth
or refinance our debt obligations, if necessary.
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CYBER, PHYSICAL ASSET, AND DATA SECURITY
Our business relies heavily on sophisticated computer systems and networks. These systems are vulnerable to various
operational and cybersecurity risks, including:
•
System Outages: Disruptions to our computer systems and telecommunications networks due to hardware or
software failures, power outages, natural disasters, or security breaches can significantly impact our operations,
leading to service interruptions, revenue losses, and damage to our reputation.
•
Cybersecurity Threats: We face the risk of cyberattacks, including data breaches, malware infections, ransomware
attacks, and denial-of-service attacks. These threats can result in unauthorized access to sensitive customer data,
financial losses, reputational harm, regulatory fines, and legal liabilities.
•
Data Privacy and Security: We are subject to stringent data privacy and security regulations. Breaches of customer
data can result in significant fines, litigation, and damage to our brand.
Our mitigation efforts include:
•
Implementing robust security measures, such as encryption, access controls, and intrusion detection systems.
•
Maintaining business continuity and disaster recovery plans.
•
Regularly updating and enhancing our security protocols.
However, despite these efforts, we cannot guarantee complete protection against all cyber threats and operational disruptions.
Failures of third-party service providers we rely upon could lead to financial loss.
We rely on third party service providers to support key portions of our operations. We also rely on third party service
providers to provide part or all of certain services we deliver to customers. While we have selected these third-party vendors
carefully, we do not control their actions. The failure of these services by a third-party could have a material impact upon our
delivery of services to customers. Such a failure could lead to damage claims, loss of customers, and reputational harm,
depending on the duration and severity of the failure. Third parties perform significant operational services on our behalf.
These third-party vendors are subject to similar risks as us relating to cybersecurity, breakdowns or failures of their own
systems or employees. One or more of our vendors may experience a cybersecurity event or operational disruption and, if any
such event does occur, it may not be adequately addressed, either operationally or financially, by the third-party vendor.
Certain of our vendors may have limited indemnification obligations or may not have the financial capacity to satisfy their
indemnification obligations. If a critical vendor is unable to meet our needs in a timely manner or if the services or products
provided by such a vendor are terminated or otherwise delayed and if we are not able to develop alternative sources for these
services and products quickly and cost-effectively, our customers could be negatively impacted, and it could have a material
adverse effect on our business.
Our business is subject to a variety of U.S. and international laws, rules, policies and other obligations regarding
data protection.
We are subject to an increasing number of federal, state, and international laws relating to the collection, use, retention,
security and transfer of various types of personal information. In many cases, these laws apply not only to third-party
transactions, but also restrict transfers of personal information among us and our international subsidiaries. Several
jurisdictions have passed laws in this area, and additional jurisdictions are considering imposing additional restrictions or
have laws that are pending. These laws continue to develop and may be inconsistent from jurisdiction to jurisdiction.
Complying with emerging and changing requirements causes us to incur substantial costs and has required and may in the
future require us to change its our business practices. Noncompliance could result in significant penalties or legal liability.
We make statements about its our use and disclosure of personal information through its our privacy policy, information
provided on its our website, press statements and other privacy notices provided to customers. Any failure by us to comply
with these public statements or with other federal, state or international privacy or data protection laws and regulations could
result in inquiries or proceedings against us by governmental entities or others. In addition to reputational impacts, penalties
could include ongoing audit requirements and significant legal liability. In addition to the risks generally relating to the
collection, use, retention, security and transfer of personal information, we are also subject to specific obligations relating to
information considered sensitive under applicable laws, such as health data, financial data and biometric data. Health data
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and financial data are subject to additional privacy, security and breach notification requirements, and we are subject to audit
by governmental authorities regarding our compliance with these obligations. If we fail to adequately comply with these rules
and requirements, or if health data or financial data is handled in a manner not permitted by law or under our agreements with
healthcare or financial institutions, we can be subject to litigation or government investigations, and can be liable for
associated investigatory expenses, and can also incur significant fees or fines. Payment card data is also subject to additional
requirements. Under payment card rules and obligations, if cardholder information is potentially compromised, we can be
liable for associated investigatory expenses and can also incur significant fees or fines if we fail to follow payment card
industry data security standards. We could also experience a significant increase in payment card transaction costs or lose the
ability to process payment cards if it fails we fail to follow payment card industry data security standards, which could
materially adversely affect our business, reputation, results of operations and financial condition.
COMPETITIVE LANDSCAPE
Our competition in the EFT Processing Segment, epay Segment and Money Transfer Segment includes large, well-
financed companies and financial institutions larger than us with earlier entry into the market. As a result, we may
lack the financial resources and access to capital needed to capture increased market share.
EFT Processing Segment — Our principal EFT Processing competitors include ATM networks owned by banks and
national switches consisting of consortiums of local banks that provide outsourcing and transaction services only to banks
and independent ATM deployers in that country. Large, well-financed companies offer ATM network and outsourcing
services that compete with us in various markets. In some cases, these companies also sell a broader range of card and
processing services than we do, and are, in some cases, willing to discount ATM services to obtain large contracts covering a
broad range of services. Competitive factors in our EFT Processing Segment include network availability and response time,
breadth of service offering, price to both the bank and to its customers, ATM location and access to other networks.
epay Segment — We face competition in the epay business in all of our markets. A few multinational companies operate in
several of our markets, and we therefore compete with them in a number of countries. In other markets, our competition is
from smaller, local companies. Major retailers with high volumes are in a position to demand a larger share of
margin/commissions or to negotiate directly with the content providers, which may compress our margins. Additionally,
certain of our content providers, including mobile phone operators have entered into direct contracts with retailers and/or
have developed processing technology that diminishes or eliminates the need for intermediate processors and distributors.
Money Transfer Segment — Our primary competitors in the money transfer and bill payment business include other large
money transfer companies and electronic money transmitters, as well as certain major national and regional banks, financial
institutions, and independent sales organizations. Our competitors include The Western Union Company and MoneyGram
International Inc. The Western Union Company has a significant competitive advantage due to its greater resources and
access to capital for expansion. This may allow them to offer better pricing terms to customers, which may result in a loss of
our current or potential customers or could force us to lower our prices. Either of these actions could have an adverse impact
on our revenues. In addition, our competitors may have the ability to devote more financial and operational resources than we
can to the development of new technologies that provide improved functionality and features to their product and service
offerings. If successful, their development efforts could render our product and service offerings less desirable, resulting in
the loss of customers or a reduction in the price we could demand for our services. In addition to traditional money payment
services, new technologies are emerging that may effectively compete with traditional money payment services, such as
stored-value cards, debit networks, web-based services, and digital currencies. Our continued growth depends upon our
ability to compete effectively with these alternative technologies.
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Developments in payments could materially reduce our transaction levels and revenues.
Certain developments in the field of payments may reduce the need for ATMs, prepaid product POS terminals and money
transfer agents. An example of this type of development is the use of near field technology in retail transactions, which if
widely accepted in a market reduces the need for cash and can negatively impact the level of ATM transactions in that
market. Advances in biometric payment solutions could have similar adverse impacts. These developments may reduce the
transaction levels that we experience on our networks in the markets where they occur. Financial institutions, retailers and
agents could elect to increase fees to their customers for using our services, which may cause a decline in the use of our
services and have an adverse effect on our revenues. If transaction levels over our existing network of ATMs, POS terminals,
agents and other distribution methods do not increase, growth in our revenues will depend primarily on increased capital
investment for new sites and developing new markets, which reduces the margin we realize from our revenues.
The mobile phone industry is a rapidly evolving area, in which technological developments, in particular the development of
new billing models and distribution methods or services, may affect the demand for other services in a dramatic way. The
development of any new models or technology that reduce the need or demand for prepaid mobile airtime could materially
and adversely affect our business.
Competition in our EFT Processing Segment has increased over the last several years, increasing the risk that certain
of our long-term bank outsourcing contracts may be terminated or not renewed upon expiration.
The developing markets in which we have done business have matured over the years, resulting in increasing competition. In
addition, as consolidation of financial institutions in Central and Eastern Europe continues, certain of our customers have
established or are establishing internal ATM management and processing capabilities. As a result of these developments,
negotiations regarding renewal of contracts have become increasingly challenging and in certain cases we have reduced fees
to extend contracts beyond their original terms. In certain other cases, contracts have been, and in the future may be,
terminated by financial institutions resulting in a substantial reduction in revenue. Contract termination payments, if any, may
be inadequate to replace revenues and operating income associated with these contracts.
PRICING AND COMPETITIVE PRESSURES
Setting competitive and profitable remittance prices across various corridors presents significant challenges.
Factors such as:
•
Intense Competition: The global remittance market is highly competitive with numerous players, including
traditional money transfer operators, banks, and fintech companies.
•
Varying Market Dynamics: Each remittance corridor (e.g., Mexico to the U.S., Philippines to the U.S.) has unique
characteristics, including varying levels of competition, customer demand, regulatory environments, and operating
costs.
•
Currency Fluctuations: Exchange rate volatility can significantly impact profitability, requiring constant
adjustments to pricing models.
•
Regulatory Changes: Changes in regulations in sending or receiving countries, including fees, taxes, and anti-
money laundering requirements, can impact pricing and profitability.
•
Customer Sensitivity to Price: Remittance customers are highly price-sensitive. Setting prices too high can deter
customers and lead to market share loss, while setting prices too low can negatively impact profitability.
Failure to accurately assess and respond to these factors could result in:
•
Reduced revenue and profitability.
•
Loss of market share to competitors.
•
Difficulty in achieving and maintaining sustainable growth.
The Company continuously monitors market trends, analyzes competitive pricing, and adjusts its pricing strategies to
maintain competitiveness while ensuring profitability.
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GOVERNANCE MATTERS
We have various mechanisms in place to discourage takeover attempts, which may reduce or eliminate our
stockholders' ability to sell their shares for a premium in a change of control transaction.
Various provisions of our certificate of incorporation and bylaws and of Delaware corporate law may discourage, delay or
prevent a change in control or takeover attempt of our company by a third party which our management and board of
directors opposes. Public stockholders who might desire to participate in such a transaction may not have the opportunity to
do so. These anti-takeover provisions could substantially impede the ability of public stockholders to benefit from a change
of control or change in our management and board of directors. These provisions include:
•
preferred stock that could be issued by our board of directors to make it more difficult for a third party to acquire, or
to discourage a third party from acquiring, a majority of our outstanding voting stock;
•
classification of our directors into three classes with respect to the time for which they hold office;
•
supermajority voting requirements to amend the provision in our certificate of incorporation providing for the
classification of our directors into three such classes;
•
non-cumulative voting for directors;
•
control by our board of directors of the size of our board of directors;
•
limitations on the ability of stockholders to call special meetings of stockholders;
•
advance notice requirements for nominations of candidates for election to our board of directors or for proposing
matters that can be acted upon by our stockholders at stockholder meetings; and
•
an exclusive forum bylaw provision for all internal corporate claims.
Additionally, we are authorized to issue up to a total of 90 million shares of common stock, potentially diluting equity
ownership of current holders and the share price of our common stock. We believe that it is necessary to maintain a sufficient
number of available authorized shares of our common stock in order to provide us with the flexibility to issue common stock
for business purposes that may arise as deemed advisable by our Board. These purposes could include, among other things,
(i) to declare future stock dividends or stock splits, which may increase the liquidity of our shares; (ii) the sale of stock to
obtain additional capital or to acquire other companies or businesses, which could enhance our growth strategy or allow us to
reduce debt if needed; (iii) use in additional stock incentive programs and (iv) other bona fide purposes. Our Board of
Directors may issue the available authorized shares of common stock without notice to, or further action by, our stockholders,
unless stockholder approval is required by law or the rules of the Nasdaq Global Select Market. The issuance of additional
shares of common stock may significantly dilute the equity ownership of the current holders of our common stock. Further,
over the course of time, all of the issued shares have the potential to be publicly traded, perhaps in large blocks. This may
result in dilution of the market price of the common stock.
An additional 11.6 million shares of common stock, representing approximately 27% of the shares outstanding as of
December 31, 2024, could be added to our total common stock outstanding through the exercise of options or the
issuance of additional shares of our common stock pursuant to existing convertible debt and other agreements. Once
issued, these shares of common stock could be traded into the market and result in a decrease in the market price of
our common stock.
As of December 31, 2024, we had 5.2 million options and 0.8 million restricted stock awards outstanding, held by our
directors, officers and employees, which entitle these holders to acquire an equal number of shares of our common stock. Of
this amount, 3.7 million options are vested and exercisable as of December 31, 2024. Approximately 2.8 million additional
shares of our common stock may be issued in connection with our stock incentive and employee stock purchase
plans. Accordingly, based on current trading prices of our common stock, approximately 3.1 million shares could potentially
be added to our total current common stock outstanding through the exercise of options and the vesting of restricted stock
awards, which could adversely impact the trading price for our stock.
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52
Of the 6.0 million total options and restricted stock awards outstanding, an aggregate of 3.7 million options and restricted
stock awards are held by persons who may be deemed to be our affiliates and who would be subject to Rule 144. Thus, upon
exercise of their options or sale of shares for which restrictions have lapsed, these affiliates' shares would be subject to the
trading restrictions imposed by Rule 144. The remainder of the common shares issuable under option and restricted stock
award arrangements would be freely tradable in the public market. Over the course of time, all of the issued shares have the
potential to be publicly traded, perhaps in large blocks.
Upon the occurrence of certain events, another 2.8 million shares of common stock could be issued upon conversion of the
Company's convertible notes issued in March 2019; in certain situations, the number of shares issuable could be higher.
While we have stated that we intend to settle any conversion of these notes by issuing cash for the principal value of the notes
and paying cash or issuing shares of common stock for the conversion value in excess of the principal, which would
significantly reduce the number of shares issued upon conversion, if our financial condition significantly and adversely
changes, we may not be able to settle as intended should the notes be converted.
KEY PERSONNEL
Retaining the founder and key executives of our Company, and of companies that we acquire, and finding and
retaining qualified personnel is important to our continued success, and any inability to attract and retain such
personnel could harm our operations.
The development and implementation of our strategy has depended in large part on our co-founder, Michael J. Brown. The
retention of Mr. Brown is important to our continued success. In addition, the success of the expansion of businesses that we
acquire may depend in large part upon the retention of the founders or leaders of those businesses. Our success also depends
in part on our ability to hire and retain highly skilled and qualified management, operating, marketing, financial and technical
personnel. The competition for qualified personnel in the markets where we conduct our business is intense and, accordingly,
we cannot assure you that we will be able to continue to hire or retain the required personnel.
Our officers and some of our key personnel have entered into service or employment agreements containing non-competition,
non-disclosure, and non-solicitation covenants, which grant incentive stock options and/or restricted stock with long-term
vesting requirements. However, most of these contracts do not guarantee that these individuals will continue their
employment with us. The loss of our key personnel could have a material adverse effect on our business, growth, financial
condition, or results of operations.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 1C. CYBERSECURITY RISK MANAGEMENT AND STRATEGY
We recognize that cyber threats are constantly evolving, and we must stay ahead of risks and threats to our business systems,
data, infrastructure, and employees. We take a holistic approach to cybersecurity to proactively mitigate and respond to cyber
threats. Building a robust security program and security controls are critical components that are in the core foundation of our
products, culture, and management oversight. As a financial transaction processor, we ensure security is embedded and
regarded with importance across the organization and within our products and services. We recognize the criticality of
maintaining the safety, security, and integrity of our systems and data to protect our customers, employees, partners, and
shareholders. The security program and cybersecurity strategies are strongly supported by both executive management and
our Board of Directors. Our executive management fosters a strong culture of security awareness and responsibilities from
the tone at the top and across all functional teams at all levels. The security team leadership also conducts segment level
Board and/or periodic meetings with segment business leadership to share security key performance indicators ("KPIs") and
risk considerations, as well as align with business strategies and gain approval for financial support for cybersecurity
resources and tools. Security leadership is also involved in financial forecasting for security needs and costs, and the Chief
Technology Officer ("CTO") and Chief Financial Officer or executive management team is involved in understanding and
approving security related investments and strategies. We invest in our cybersecurity personnel and protections to address
critical risks to our infrastructure and systems, and we remain dedicated to continuous improvement in our
cybersecurity program.
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The Company’s CTO reports to our Chief Executive Officer and has been with Euronet 17 years and is responsible for
developing and implementing our information security program and reporting on cybersecurity matters to the Board of
Directors (the “Board”). Many on our Information Technology ("IT") security team leadership have over a decade of
cybersecurity and IT control experience, certifications, and external and internal IT audit experience. The Chief Information
Security Officer ("CISO") reports to executive management independent of IT and is responsible for management of
cybersecurity risk, security governance and compliance, security policies, security training, and the overall protection and
defense of our networks, systems, and company data. The CISO manages the global security governance, risk, and
compliance teams and is responsible for ensuring we meet our regulatory and compliance requirements as related to PCI
DSS, ISO 27001, and other certifications we hold globally that support our business products and services. The Global
Director of Cybersecurity reports to the CTO and manages our security toolbelt and implementations, incident response, alert
management, and various technical security teams. The CISO and Global Director of Cybersecurity manage teams of
cybersecurity professionals with broad experience and expertise, including PCI and other regulatory compliance, threat
assessments and detection, forensic investigations, mitigation technologies, cybersecurity training, incident response, insider
threats, third party risk, penetration testing, and security engineering expertise. Many members of the security leadership
team across the organization have been with Euronet for more than 10 years. The global and segment security leadership
teams work closely with legal, privacy, audit, and compliance teams to ensure we meet regulatory requirements and work
together to address cyber risks in all functional areas of the organization. We also conduct strategic in person and virtual
annual, quarterly, and monthly security meetings with key members of security and IT leadership to align on security
priorities, initiatives, and requirements.
Our Board of Directors is responsible for overseeing our enterprise risk management activities in general, and each of our
Board committees assists the Board in the role of risk oversight. The full Board receives an update on our risk management
process and the risk trends related to cybersecurity at least annually. The CTO attends all quarterly Board meetings and
presents to the Board at a minimum of twice per year on security and cybersecurity KPIs and threat mitigations. The Audit
Committee oversees risks including cybersecurity risks. Our internal audit team reports on cybersecurity risks and internal
and external audit results to the Audit Committee. Internal Audit performs IT security and compliance audits for SOX 404
purposes, as well as testing Euronet’s security standards, and performs pre-assessments for ISO 27001. We also engage third
party independent assessments for penetration testing, vulnerability assessments, and certification such as PCI DSS, ISO
27001, VISA PIN and SOC Type 1 and Type 2 audits. The CTO and CISO also have weekly and monthly meetings with
senior executive management to discuss security strategy, projects, and concerns. We have an established incident response
process led by our CISO governing our assessment, response, and notifications internally and externally upon the occurrence
of a cybersecurity incident. Depending on the nature and severity of an incident, this process provides for escalating
notification to our Chief Executive Officer, executive management team, and the Board as well as regulatory notifications
depending on the jurisdiction and specifications of the incident.
While we evaluate all security incidents and consider the materiality of individual or combined incidents, to date, no
incidents or combination of incidents have materially affected the Company or our financial position, results of operations,
and/or cash flows. We continue to invest in cybersecurity to enhance the design and effectiveness of our internal controls and
processes to protect our systems, networks, and integrity of our data.
Our approach to cybersecurity risk management includes the following key areas:
Risk Management and Policies — Our policies, standards, processes, and practices for assessing, identifying, and managing
risks, including material risks, from cybersecurity threats are integrated into our overall security and risk management
program and are based on frameworks established by the National Institute of Standards and Technology (“NIST”), the
International Organization for Standardization ("ISO"), and other applicable industry standards and best practices. We
regularly review and update policies and procedures with input from IT and security leadership and industry security
standards including PCI DSS and ISO. Business segments and local entities also maintain local policies and procedures that
include global requirements and local, statutory, or contractual requirements and escalations. All employees must sign and
acknowledge a Corporate Information Security Policy that outlines their responsibilities related to IT security, cybersecurity,
and protection of company assets and data. In addition to the enterprise risk assessment presented to the Board, local entity IT
and security teams maintain detailed risk assessments that are shared with local management and are provided for applicable
regulatory requirements, as well.
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54
Information Sharing and Collaboration — We subscribe to financial services cyber intelligence and collaboration services,
and we work closely with cyber intelligence and managed security service providers to augment our own security program
and controls. We investigate intelligence sharing platforms to assess potential risks as credible or emerging risks.
Continuous Monitoring — We have security team members across all of our geographic business operations that support our
key IT processing centers. We have teams dedicated to investigating all security alerts and incidents at a global level or
within our business segments. Further, we have managed security service providers who provide 24x7 advanced threat
detection and monitoring services to augment our security analyst teams.
Incident Response — We have a global incident response policy that is shared with key stakeholders and outlines our
classification, escalation, investigation, reporting, and overall response procedures depending on the classification and
severity of incidents. Local IT teams must also create a local incident response plan and playbooks for addressing various
types of incidents and handling escalations and reporting obligations locally. Further, we engage external forensic
investigations as necessary to augment our incident reporting process if deemed critical and/or necessary for prompt response
to security incidents which may require a higher technical level of forensics and/or resources to quickly assess and respond to
certain incidents.
Training and Awareness — We provide security awareness training to our employees and contractors to help identify,
mitigate, and report on cybersecurity threats. Our employees with network access must complete quarterly security awareness
training which includes multiple interactive and video training modules with passing scores required to complete training
compliance. We require annual PCI DSS and GDPR training as well as any other regulatory required security training. We
also perform simulated phishing campaigns to further test security training effectiveness. We also periodically host tabletop
exercises with IT and management to test and evaluate our incident response plan or playbooks.
Insider Threats — We implement insider threat controls designed to identify, assess, and address potential risks from within
our Company. We implement controls and tools to alert on suspicious or unusual insider activity, and we have rigorous
controls in place to prevent data loss and external sharing of company information. We consider and evaluate potential risks
consistent with industry practices, customer requirements and applicable law, including privacy and other considerations.
Third Party Risk Assessments — We conduct information security assessments before sharing or allowing the hosting of
data in computing environments managed by third parties or allowing third parties to connect to our environment. We also
review and amend legal terms and conditions to ensure there are contractual provisions requiring certain security protections
and incident reporting. We also perform vendor risk assessments to assess the risk of new and existing vendors we conduct
business with.
External Assessments — We engage external assessors to evaluate, test, and conclude on the design and effectiveness of
security controls and processes. We engage quality assessors for vulnerability and penetration testing as well as for security
certification and/or regulatory requirements. Further, we have external audits performed by customers, banking and
government regulators, and public accounting firms as part of financial and statutory audit purposes. In 2024, we did not
identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our
business strategy, results of operations, or financial condition. However, despite our efforts, we cannot eliminate all risks
from cybersecurity threats, or provide assurances that we have not experienced undetected cybersecurity incidents.
For more information on security and cybersecurity threats we face, please see “Risk Factors.”
ITEM 2. PROPERTIES
Our executive offices are located in Leawood, Kansas. As of December 31, 2024, we also have 35 principal offices in
Europe, 14 in Asia Pacific, 10 in North America, three in the Middle East, two in South America and three in Africa. Our
office leases generally provide for initial terms ranging from two to twelve years.
Our processing centers for the EFT Processing Segment are located in Germany, Hungary, India, China, Indonesia and
Pakistan. Processing centers we operate for the epay Segment are located in the U.K., Germany, Italy, and the U.S. Our
processing centers for the Money Transfer Segment are located in the U.S., the U.K., New Zealand, and Malaysia.
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All of our processing centers are leased and have off-site real time backup processing centers that are capable of providing
full or partial processing services in the event of failure of the primary processing centers.
ITEM 3. LEGAL PROCEEDINGS
The Company is, from time to time, a party to legal or regulatory proceedings arising in the ordinary course of its business.
The discussion regarding litigation in Part II, Item 8 — Financial Statements and Supplementary Data and Note 20, Litigation
and Contingencies, to the Consolidated Financial Statements included elsewhere in this report is incorporated herein by
reference.
From time to time, the Company is a party to legal or regulatory proceedings arising in the ordinary course of the Company's
business. In accordance with U.S. GAAP, the Company records a liability when it is both probable that a liability has been
incurred and the amount of the loss can be reasonably estimated. Currently, there are no legal proceeding s or regulatory
findings which are both probable that a liability has been incurred and can be reasonably estimated that management believes,
either individually or in the aggregate, would have a material adverse effect on the Company's consolidated
financial condition or results of operations. These provisions are reviewed at least quarterly and adjusted to reflect the
impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a
particular case.
During July 2024, the Company received an adverse judicial decision related to withholding taxes on certain agency
relationships in Italy within the Money Transfer Segment, which the Company has appealed. In January 2025, the Company
received a positive judicial decision in the same court related to the same issue but corresponding to a different taxable
period. The Company completed an assessment and concluded that it is reasonably possible that a liability has been incurred,
but not probable. The principal amount of the agent-based withholding tax could be approximately $16.5 million for all open
periods.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES
MARKET INFORMATION
Our common stock, $0.02 par value per share, is quoted on the Nasdaq Global Select Market under the symbol EEFT.
DIVIDENDS
Since our inception, we have not paid dividends on our common stock. We do not intend to distribute dividends for the
foreseeable future.
HOLDERS
At December 31, 2024, we had 51 stockholders of record of our common stock, and none of our preferred stock was
outstanding. This figure does not include an estimate of the indeterminate number of beneficial holders whose shares may be
held of record by brokerage firms and clearing agencies.
PRIVATE PLACEMENTS AND ISSUANCES OF EQUITY
During 2024, we did not issue any equity securities that were not registered under the Securities Act of 1933, which have not
been previously reported in a Quarterly Report on Form 10-Q or a Current Report on Form 8-K.
Euronet | 2024 Annual Report
56
STOCK PERFORMANCE GRAPH
The following graph compares Euronet Worldwide Inc.’s annual percentage change in cumulative total return on common
shares over the past five years with the cumulative total return of companies comprising the Nasdaq Composite index and the
Nasdaq US Benchmark Financial Services TR Index. This presentation assumes that $100 was invested in shares of the
relevant issuers on December 31, 2019, and that dividends received were immediately invested in additional shares. The
graph plots the value of the initial $100 investment at one-year intervals for the fiscal years shown.
The following performance graph and related text are being furnished to and not filed with the SEC, and will not be deemed
to be "soliciting material" or subject to Regulation 14A or 14C under the Exchange Act or to the liabilities of Section 18 of
the Exchange Act and will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or
the Exchange Act, except to the extent we specifically incorporate such information by reference into such filing.
EQUITY COMPENSATION PLAN INFORMATION
Refer to Part II, Item 8, Financial Statements and Supplementary Data, Note 17, Stock Plans, and Part III, Item 12, Security
Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters, for information related to our
equity compensation plans.
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STOCK REPURCHASES
The following table provides information with respect to shares of the Company's Common Stock that were purchased during
the three months ended December 31, 2024.
Period
Total Number of
Shares Purchased
Average Price Paid
per Share
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs
Maximum Dollar
Value of Shares that
May Yet Be
Purchased Under the
Programs (in millions)
(1)
October 1 - October 31, 2024
— $
—
— $
581.4
November 1 - November 30, 2024
—
—
—
581.4
December 1 - December 31, 2024
475,533
105.1
475,533
531.4
Total
475,533 $
105.1
475,533
(1) The repurchase program, initiated on September 13, 2022, to repurchase up to $350 million in value, but not more
than 7.0 million shares of common stock through September 13, 2024, has been completed. During 2024, we repurchased
850,528 shares under the repurchase program at a weighted average purchase price of $113.63 for a total value of $96.6
million. On September 13, 2023, the Company initiated a repurchase program to repurchase up to $350 million in value, but
not more than 7.0 million shares of common stock through September 13, 2025. During 2024, we repurchased
1,625,005 shares under the repurchase program at a weighted average purchase price of $103.73 for a total value of $168.6
million. On September 11, 2024, the Company initiated a repurchase program to repurchase up to $350 million in value, but
not more than 7.0 million shares of common stock through September 11, 2026. During 2024, the Company did not
repurchase shares under this plan. Repurchases under the programs may take place in the open market or in privately
negotiated transactions, including derivative transactions, and may be made under a Rule 10b5-1 plan.
ITEM 6. RESERVED
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discussion and analysis should be read in conjunction with the consolidated financial statements and
accompanying notes included elsewhere in this Annual Report on Form 10-K. This section of the Form 10-K generally
discusses 2024 items and year-to-year comparisons between 2024 and 2023. Discussions of 2022 items and year-to-year
comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for the
fiscal year ended December 31, 2023.
Company Overview, Geographic Locations and Principal Products and Services
Euronet is a leading financial technology solutions and payments provider. We offer payment and transaction processing and
distribution solutions to financial institutions, retailers, service providers and individual consumers. Our primary product
offerings include comprehensive ATM, POS, card outsourcing, card issuing and merchant acquiring services, software
solutions, electronic distribution of prepaid mobile airtime and other electronic payment products, foreign currency exchange
services and global money transfer services. We operate in the following three segments:
1) Our Electronic Funds Transfer (EFT) segment meets the needs of financial institutions and consumers through Euronet-
owned and outsourced ATMs and POS terminals combined with value added and transaction processing services. We deploy
and operate our own ATMs, providing ATM services for financial institutions and providing electronic payment processing
solutions. EFT offers a suite of integrated electronic financial transaction software solutions for electronic payment and
transaction delivery systems. Transactions processed span a network of 55,248 ATMs, as of December 31, 2024, and
approximately 1,160,000 POS terminals.
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2) Our epay segment provides retail payment solutions and delivers innovative connections between the digital content of the
world’s leading brands and consumers. epay has one of the largest retail networks across Europe and Asia for the distribution
of physical and digital third-party content, including branded payments, mobile, and alternative payments, partnering with
1,000+ of the world’s leading brands. In addition, through our own products, we have leveraged our technology to solve
business challenges, delivering scalable solutions to drive efficiency and effectiveness. Our comprehensive range of
consumer products simplifies transactions and provides financial convenience across a wide range of branded payments. epay
operates in 64 countries. We operate a network that includes approximately 777,000 POS terminals that enable electronic
processing of prepaid mobile airtime "top-up" services and other digital media content.
3) Our Money Transfer segment provides global money transfers and currency exchange information in retail stores, apps,
and websites through Ria Money Transfer, Xe and the Dandelion cross-border real-time payments network. Euronet’s Money
Transfer segment offers real-time, cross-border payments to consumers and businesses across 197 countries and territories,
enabling banks, fintechs and big tech platforms to integrate an international payments solution into their own platforms. Ria
Money Transfer offers real-time international money transfers with a special focus on emerging markets. In addition, Ria
offers safe and affordable money transfers through a global network of cash locations and online, serving over 20 million
customers annually. Xe offers web and app-based currency information and industry-leading consumer and business cross-
border money transfer services. Customers can send money, buy property overseas, and execute other international payments
via the Xe website or app. Dandelion offers consumer and business transaction processing and fulfillment with alternative
payout channels like bank accounts, cash pick-up and mobile wallets. Dandelion powers cross-border payments for Xe and
Ria, as well as third party banks, fintechs, and big tech platforms.
We have six processing centers in Europe, five in Asia Pacific and two in North America. We have 35 principal offices in
Europe, 14 in Asia Pacific, 10 in North America, three in the Middle East, two in South America and three in Africa. Our
executive offices are located in Leawood, Kansas, USA. With approximately 76% 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 1A - Risk Factors and Item 7A - Quantitative and Qualitative
Disclosures About Market Risk).
SOURCES OF REVENUES AND CASH FLOW
Euronet earns revenues and income primarily from ATM management fees, transaction fees, commissions, and foreign
currency exchange margin. Each operating segment's sources of revenue are described below.
EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 29% of total
consolidated revenues for the year ended December 31, 2024, are derived from fees charged for transactions made by
cardholders on our proprietary network of ATMs, fixed management fees and transaction fees we charge to customers for
operating ATMs and processing debit and credit cards under outsourcing and cross-border acquiring agreements, foreign
currency exchange margin on DCC transactions, domestic and international surcharge, foreign currency dispensing and other
value added services such as advertising, prepaid telecommunication recharges, bill payment, and money transfers provided
over ATMs. Revenues in this segment are also derived from cardless payments, banknote recycling, tax refund services,
license fees, professional services and maintenance fees for proprietary application software and sales of related hardware.
epay Segment — Revenues in the epay Segment, which represented approximately 29% of total consolidated revenues for
the year ended December 31, 2024, are primarily derived from commissions or processing fees received from mobile phone
operators for the processing and distribution of prepaid mobile airtime and commissions earned from the distribution of other
electronic content, vouchers, and physical gifts. The proportion of epay Segment revenues earned from the distribution of
prepaid mobile phone time as compared with other electronic products has decreased over time, and digital media content
now produces approximately 68% 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.
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Money Transfer Segment — Revenues in the Money Transfer Segment, which represented approximately 42% of total
consolidated revenues for the year ended December 31, 2024, are primarily derived from transaction fees, as well as the
margin earned from purchasing foreign currency at wholesale exchange rates and selling the foreign currency to customers at
retail exchange rates. We have a sending agent network in place comprised of agents, customer service representatives,
Company-owned stores, primarily in North America, Europe and Malaysia, Ria, and xe branded websites, along with a
worldwide network of correspondent agents, consisting primarily of financial institutions in the transfer destination countries.
Under the brand "Dandelion", Ria offers payment processing services to third party partners. The Dandelion cross-border
payments platform provides financial institutions, fintechs such as digital wallets and banks, and enterprise software
companies access to Euronet's money transfer network through an API connection. Sending and correspondent agents each
earn fees for cash collection and distribution services, which are recognized as direct operating costs at the time of sale.
Corporate Services, Eliminations and Other — In addition to operating in our principal operating segments described above,
our "Corporate Services, Eliminations and Other" category includes non-operating activity, certain inter-segment
eliminations and the cost of providing corporate and other administrative services to the operating segments, including most
share-based compensation expenses. These services are not directly identifiable with our reportable operating segments.
OPPORTUNITIES AND CHALLENGES
The global product markets in which we operate are large and fragmented, which poses both opportunities and challenges for
our technology to disrupt new and existing competition. As an organization, our focus is on increasing our market presence
through both physical (ATMs, POS terminals, stores, and agent correspondents) and digital assets and providing new and
improved products and services for customers through all of our channels, which may in turn drive an increase in the number
of transactions on our networks. Each of these opportunities also presents us with challenges, including differentiating our
portfolio of products and services in highly competitive markets, the successful development and implementation of our
software products and access to financing for expansion.
1) The EFT Processing Segment opportunities include physical expansion into target markets, developing value added
products or services, increasing high value DCC and surcharge transactions and efficiently leveraging our portfolio of
software solutions. Our opportunities are dependent on renewing and expanding our card acceptance, ATM and POS
management and outsourcing, cash supply and other commercial agreements with customers and financial institutions.
Operational challenges in the EFT Processing Segment include obtaining and maintaining the required licenses and
sponsorship agreements in markets in which we operate and navigating frequently changing rules imposed by international
card organizations, such as Visa® and Mastercard®, that govern ATM interchange fees, direct access fees and other
restrictions. Our profitability is dependent on the laws and regulations that govern DCC transactions, specifically in the E.U.,
increasing expansion of prepaid forex cards, as well as the laws and regulations of each country that we operate in that may
impact the volume of cross-border and cross-currency transactions. The timing and amount of revenues in the EFT
Processing Segment is uncertain and unpredictable due to inherent limitations in managing our estate of ATMs, which is
dependent on contracts that cover large numbers of ATMs, which are complicated by legal and regulatory considerations of
local countries, as well as our customers' decisions whether to outsource ATMs.
2) The epay Segment opportunities include renewing existing and negotiating new agreements in target markets in which we
operate, primarily with mobile operators, digital content providers, financial institutions, and retailers. The overall growth
rate in the prepaid mobile phone and digital media content markets, shifts between prepaid and postpaid services, and our
market share in those respective markets will have a significant impact on our ability to maintain and grow the epay Segment
revenues. There is significant competition in these markets that may impact our ability to grow organically and increase the
margin we earn and the margin that we pay to retailers. The profitability of the epay Segment is dependent on our ability to
adapt to new technologies that may compete with POS distribution of digital content and prepaid mobile airtime, as well as
our ability to leverage cross-selling opportunities with our EFT and Money Transfer Segments. The epay Segment
opportunities may be impacted by government-imposed restrictions on retailers and/or content providers with whom we
partner in countries in which we have a presence, and corresponding licensure requirements mandated upon such parties to
legally operate in such countries.
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3) The Money Transfer Segment opportunities include expanding our portfolio of products and services to new and existing
customers around the globe, which in turn may lead to an increase in transaction volumes. The opportunities to expand are
contingent on our ability to effectively leverage our network of bank accounts for digital money transfer delivery,
maintaining our physical agent network, cross selling opportunities with our EFT and epay segments and our penetration into
high growth money transfer corridors. The challenges inherit in these opportunities include maintaining compliance with all
regulatory requirements, maintaining all required licenses, ensuring the recoverability of funds advanced to agents and the
continued reliance on the technologies required to operate our business. The volume of transactions processed on our network
is impacted by shifts in our customer base, which can change rapidly with worker migration patterns and changes in
unbanked populations across the globe. Foreign regulations that impact cross-border migration patterns and the money
transfer markets can significantly impact our ability to grow the number of transactions on our network.
For all segments, our continued expansion may involve additional acquisitions that could divert our resources and
management time and require integration of new assets with our existing networks and services. Our ability to effectively
manage our growth has required us to expand our operating systems and employee base, particularly at the management
level, which has added incremental operating costs. An inability to continue to effectively manage expansion could have a
material adverse effect on our business, growth, financial condition, or results of operations. Inadequate technology and
resources would impair our ability to maintain current processing technology and efficiencies, as well as deliver new and
innovative services to compete in the marketplace.
SEGMENT REVENUES AND OPERATING INCOME FOR THE YEARS ENDED DECEMBER 31, 2024
AND 2023
Revenues
Operating Income (Expense)
(in millions)
2024
2023
2024
2023
EFT Processing
$
1,161.2 $
1,058.3 $
256.0 $
206.3
epay
1,150.5
1,082.4
129.9
126.2
Money Transfer
1,686.5
1,555.2
201.0
185.4
Total
3,998.2
3,695.9
586.9
517.9
Corporate services, eliminations and other
(8.4 )
(7.9 )
(83.7 )
(85.3 )
Total
$
3,989.8 $
3,688.0 $
503.2 $
432.6
SUMMARY
Our annual consolidated revenues increased by 8.2% for 2024 compared to 2023. The increase in revenues for 2024 was
primarily due to the increases in transaction volumes across all three segments.
Our annual consolidated operating income increased by 16.3% for 2024 compared to 2023. The increase in operating income
for 2024 was primarily due to the increases in transaction volumes across all three segments.
Net income attributable to Euronet for 2024 was $306.0 million, or $6.45 per diluted share compared to a net income
attributable to Euronet for 2023 of $279.7 million, or $5.50 per diluted share.
Impact of changes in foreign currency exchange rates
Our revenues and local expenses are recorded in the functional currencies of our operating entities and then are translated into
U.S. dollars for reporting purposes; therefore, amounts we earn outside the U.S. are negatively impacted by a stronger U.S.
dollar and positively impacted by a weaker U.S. dollar. Considering the results by country and the associated functional
currency, our 2024 consolidated operating income was approximately 0.1% higher due to changes in foreign currency
exchange rates when compared to 2023. If significant, in our discussion we will refer to the impact of fluctuations in foreign
currency exchange rates in our comparison of operating segment results.
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To provide further perspective on the impact of foreign currency exchange rates, the following table shows the changes in
values relative to the U.S. dollar during 2024 and 2023, of the currencies of the countries in which we have our most
significant operations:
Average Translation Rate Year
Ended December 31,
2024 Increase
(Decrease)
Percent
Currency
2024
2023
Australian dollar
$
0.6594 $
0.6644
(0.8) %
British pound
$
1.2776 $
1.2435
2.7 %
Canadian dollar
$
0.7303 $
0.7412
(1.5) %
euro
$
1.0816 $
1.0813
0.0 %
Hungarian forint
$
0.0027 $
0.0028
(3.6) %
Indian rupee
$
0.0120 $
0.0121
(0.8) %
Malaysian ringgit
$
0.2190 $
0.2197
(0.3) %
New Zealand dollar
$
0.6047 $
0.6141
(1.5) %
Polish zloty
$
0.2516 $
0.2385
5.5 %
COMPARISON OF OPERATING RESULTS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 —
BY OPERATING SEGMENT
EFT PROCESSING SEGMENT
The following table summarizes the results of operations for our EFT Processing Segment for the years ended December 31,
2024 and 2023:
Year Ended December 31,
Year-over-Year Change
(dollar amounts in millions)
2024
2023
Increase
(Decrease)
Amount
Increase
(Decrease)
Percent
Total revenues
$
1,161.2 $
1,058.3 $
102.9
9.7 %
Operating expenses:
Direct operating costs
605.4
572.1
33.3
5.8 %
Salaries and benefits
146.8
126.5
20.3
16.0 %
Selling, general and administrative
55.1
58.8
(3.7 )
(6.3) %
Depreciation and amortization
97.9
94.6
3.3
3.5 %
Total operating expenses
905.2
852.0
53.2
6.2 %
Operating income
$
256.0 $
206.3 $
49.7
24.1 %
Transactions processed (millions)
11,424
8,473
2,951
34.8 %
Active ATMs as of December 31
49,945
47,303
2,642
5.6 %
Average active ATMs
51,450
49,080
2,370
4.8 %
Euronet | 2024 Annual Report
62
Revenues
EFT Processing Segment total revenues were $1,161.2 million for the year ended December 31, 2024, an increase of $102.9
million or 9.7% compared to the same period in 2023. Revenues increased for the year ended December 31, 2024 compared
to the same period in 2023 due to an increase in average active ATMs, an increase in our most profitable international
transactions driven by cross-border recovery levels, corresponding DCC and surcharge revenues and continued expansion to
new markets. Foreign currency movements increased revenues by approximately $1.2 million for the year ended December
31, 2024, compared to the same period in 2023.
Revenue per transaction was $0.10 for the year ended December 31, 2024, compared to $0.12 for the same period in
2023. The decrease in revenue per transaction was driven by an increase in high volume low value transactions initiated
through digital wallets.
Average monthly revenues per ATM increased to $1,881 for the year ended December 31, 2024 compared to $1,797 for the
same period in 2023.
Direct operating costs
EFT Processing Segment direct operating costs were $605.4 million for the year ended December 31, 2024, an increase of
$33.3 million or 5.8% compared to the same period in 2023. Direct operating costs primarily consist of site rental fees, cash
delivery costs, cash supply costs, maintenance, insurance, telecommunications, payment scheme processing fees, data center
operations-related personnel, as well as the processing centers’ facility-related costs and other processing center-related
expenses and commissions paid to retail merchants, banks and card processors involved with POS DCC transactions. For the
year ended December 31, 2024, the increase in direct operating costs was primarily due to the increase in transaction
volumes, and costs associated with modifying our estate of ATMs. Foreign currency movements increased direct operating
costs by approximately $0.4 million for the year ended December 31, 2024 compared to the same period in 2023.
Gross profit
Gross profit, which is calculated as revenues less direct operating costs, was $555.8 million for the year ended December 31,
2024, an increase of $69.6 million or 14.3% compared to $486.2 million for the same period in 2023. Gross profit as a
percentage of revenues (“gross margin”) increased to 47.9% for the year ended December 31, 2024, compared to 45.9% for
the same period in 2023. For the year ended December 31, 2024, the increase in gross profit was primarily driven by the
revenue increase from additional transaction volumes into new geographies.
Salaries and benefits
Salaries and benefits expenses were $146.8 million for the year ended December 31, 2024, an increase of $20.3 million or
16.0% compared to the same period in 2023. The increase in salaries and benefits for the year ended December 31, 2024
compared to the same period in 2023 was primarily driven by an increased headcount. As a percentage of revenues, these
expenses increased to 12.6% for the year ended December 31, 2024, compared to 12.0% for the same period in 2023.
Selling, general and administrative
Selling, general and administrative expenses were $55.1 million for the year ended December 31, 2024, a decrease of $3.7
million or 6.3% compared to the same period in 2023. As a percentage of revenues, these expenses decreased to 4.7% for the
year ended December 31, 2024, compared to 5.6% for the same period in 2023.
Depreciation and amortization
Depreciation and amortization expenses were $97.9 million for the year ended December 31, 2024, an increase of $3.3
million or 3.5% compared to the same period in 2023. As a percentage of revenues, these expenses decreased to 8.4% for the
year ended December 31, 2024, compared to 8.9% for the same period in 2023.
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Operating income
EFT Processing Segment had operating income of $256.0 million for the year ended December 31, 2024, compared to
operating income of $206.3 million in 2023, an increase of $49.7 million compared to the same period in 2023. Operating
income as a percentage of revenues (“operating margin”) increased to 22.0% for the year ended December 31, 2024,
compared to 19.5% for the same period in 2023. Operating income per transaction was $0.02 for the year ended December
31, 2024 and 20023, respectively. The increase in operating income was primarily driven by the increase in transactions.
epay SEGMENT
The following table summarizes the results of operations for our epay Segment for the years ended December 31,
2024 and 2023:
Year Ended December 31,
Year-over-Year Change
(dollar amounts in millions)
2024
2023
Increase
(Decrease)
Amount
Increase
(Decrease)
Percent
Total revenues
$
1,150.5 $
1,082.4 $
68.1
6.3 %
Operating expenses:
Direct operating costs
872.7
819.1
53.6
6.5 %
Salaries and benefits
102.0
91.1
10.9
12.0 %
Selling, general and administrative
38.6
39.1
(0.5 )
(1.3) %
Depreciation and amortization
7.3
6.9
0.4
5.8 %
Total operating expenses
1,020.6
956.2
64.4
6.7 %
Operating income
$
129.9 $
126.2 $
3.7
2.9 %
Transactions processed (billions)
4.37
3.79
0.58
15.4 %
Revenues
epay Segment total revenues were $1,150.5 million for the year ended December 31, 2024, an increase of $68.1 million or
6.3% compared to the same period in 2023. Foreign currency movements decreased revenues by approximately $1.4 million
for the year ended December 31, 2024, compared to the same period in 2023. The increase in revenues was driven by
continued expansion of digital media and mobile sales. Revenues per transaction decreased to $0.26 for the year ended
December 31, 2024, compared to $0.29 for the same period in 2023.
Direct operating costs
epay Segment direct operating costs were $872.7 million for the year ended December 31, 2024, an increase of
$53.6 million or 6.5% compared to the same period in 2023. Direct operating costs primarily consist of the commissions paid
to retail merchants for the distribution and sale of prepaid mobile airtime and other prepaid products, expenses incurred to
operate POS terminals and the cost of vouchers sold and physical gifts fulfilled. The increase in direct operating costs was
primarily due to an increase in cost for transaction volumes of low-value mobile top-up transactions and an increase in
retailer commissions. Foreign currency movements decreased these expenses by $0.9 million for the year ended December
31, 2024, compared to the same period in 2023.
Gross profit
Gross profit was $277.8 million for the year ended December 31, 2024, an increase of $14.5 million or 5.5% compared
to $263.3 million for the same period in 2023. Gross margin decreased to 24.1% for the year ended December 31,
2024, compared to 24.3% for the same period in 2023.
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64
Salaries and benefits
Salaries and benefits expenses were $102.0 million for the year ended December 31, 2024, an increase of $10.9 million or
12.0% compared to the same period in 2023. The increase in salaries and benefits was primarily driven by an increase in
headcount to support the growth of the business. As a percentage of revenues, these expenses increased to 8.9% for the year
ended December 31, 2024, compared to 8.4% for the year ended December 31, 2023.
Selling, general and administrative
Selling, general and administrative expenses were $38.6 million for the year ended December 31, 2024, a decrease of
$0.5 million or 1.3% compared to the same period in 2023. As a percentage of revenues, these expenses decreased
to 3.4% for the year ended December 31, 2023, compared to 3.6% for the year ended December 31, 2023.
Depreciation and amortization
Depreciation and amortization expenses were $7.3 million for the year ended December 31, 2024, an increase of
$0.4 million or 5.8% 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 0.6% for the year ended December 31, 2024, and 2023, respectively.
Operating income
epay Segment operating income was $129.9 million for the year ended December 31, 2024, an increase of $3.7 million or
2.9% compared to the same period in 2023. Operating margin decreased to 11.3% for the year ended December 31,
2024, compared to 11.7% for the same period in 2023. Operating income per transaction was $0.03 for the year ended
December 31, 2024, and 2023, respectively. The increase in operating income was primarily driven by the increase in
transactions.
MONEY TRANSFER SEGMENT
The following table summarizes the results of operations for our Money Transfer Segment for the years ended December 31,
2024 and 2023:
Year Ended December 31,
Year-over-Year Change
(dollar amounts in millions)
2024
2023
Increase
(Decrease)
Amount
Increase
(Decrease)
Percent
Total revenues
$
1,686.5 $
1,555.2 $
131.3
8.4 %
Operating expenses:
Direct operating costs
919.7
839.5
80.2
9.6 %
Salaries and benefits
333.4
310.5
22.9
7.4 %
Selling, general and administrative
206.4
188.8
17.6
9.3 %
Depreciation and amortization
26.0
31.0
(5.0 )
(16.1) %
Total operating expenses
1,485.5
1,369.8
115.7
8.4 %
Operating income
$
201.0 $
185.4 $
15.6
8.4 %
Transactions processed (millions)
176.9
161.7
15.2
9.4 %
Revenues
Money Transfer Segment total revenues were $1,686.5 million for the year ended December 31, 2024, an increase of $131.3
million or 8.4% compared to the same period in 2023. The increase in revenues was the result of 12% growth in U.S.-
outbound transactions, 11% growth in international-originated money transfers and 16% growth in xe transactions, partially
offset by a 14% decline in the intra-U.S. business. These transaction growth rates include 28% growth in direct-to-consumer
digital transactions. Revenues per transaction decreased to $9.53 for the year ended December 31, 2024, compared to $9.62
for the same period in 2023. Foreign currency movements did not significantly impact revenues year-over-year.
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Direct operating costs
Money Transfer Segment direct operating costs were $919.7 million for the year ended December 31, 2024, an increase of
$80.2 million compared to the same period in 2023. Direct operating costs primarily consist of commissions paid to agents
who originate money transfers on our behalf and correspondent agents who disburse funds to the customers’ destination
beneficiaries, together with less significant costs, such as bank depository fees. The increase in direct operating costs was
primarily due to the increase in the number of U.S. outbound and international-originated money transfer transactions and
corresponding increase in agent commissions. Foreign currency movements did not significantly impact direct operating
costs year-over-year.
Gross profit
Gross profit was $766.8 million for the year ended December 31, 2024, an increase of $51.1 million or 7.1% compared to
$715.7 million for the same period in 2023. Gross margin decreased to 45.5% for the year ended December 31, 2024,
compared to 46.0% for the same period in 2023. The increase in gross profit was primarily attributable to the increase in
transaction volume and relative decrease of agent commissions for the year ended December 31, 2024.
Salaries and benefits
Salaries and benefits expenses were $333.4 million for the year ended December 31, 2024, an increase of $22.9 million or
7.4% compared to the same period in 2023. The increase in salaries and benefits was primarily driven by an increase in
headcount to support the growth of the business. As a percentage of revenues, these expenses decreased to 19.8% for the year
ended December 31, 2024, compared to 20.0% for the same period in 2023.
Selling, general and administrative
Selling, general and administrative expenses were $206.4 million for the year ended December 31, 2024, an increase of $17.6
million or 9.3% compared to the same period in 2023. The increase in these expenses was primarily driven by an increase in
advertising and promotions, bad debt expenses, product hardware, software, rent and utilities and travel-related expenses,
partially offset by a decrease in professional fees. As a percentage of revenues, these expenses increased to 12.2% for the
year ended December 31, 2024, compared to 12.1% for the same period in 2023.
Depreciation and amortization
Depreciation and amortization expenses were $26.0 million for the year ended December 31, 2024, a decrease of $5.0 million
or 16.1% compared to the same period in 2023. Depreciation and amortization primarily represent 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 year ended December 31, 2024, compared
to 2.0% for the same period in 2023.
Operating income
Money Transfer Segment operating income was $201.0 million for the year ended December 31, 2024, an increase of
$15.6 million or 8.4% compared to the same period in 2023. Operating margin was 11.9% for the year ended December 31,
2024 and 2023, respectively. Operating income per transaction decreased to $1.14 for the year ended December 31, 2024,
compared to $1.15 for the same period in 2023. The increase in operating income for the year ended December 31, 2024
compared to the same period in 2023 was primarily driven by the increase in transaction volume.
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66
CORPORATE SERVICES
The following table summarizes the results of operations for Corporate Services for the years ended December 31,
2024 and 2023:
Year Ended December 31,
Year-over-Year Change
(dollar amounts in millions)
2024
2023
Increase
(Decrease)
Amount
Increase
(Decrease)
Percent
Salaries and benefits
$
68.0 $
74.8 $
(6.8 )
(9.1) %
Selling, general and administrative
15.2
10.1
5.1
50.5 %
Depreciation and amortization
0.6
0.4
0.2
50.0 %
Total operating expenses
$
83.8 $
85.3 $
(1.5 )
(1.8) %
Corporate operating expenses
Total Corporate operating expenses were $83.8 million for the year ended December 31, 2024, a decrease of $1.5 million or
1.8%, compared to the same period in 2023. The decrease was primarily due to a decrease in share-based compensation and
bonuses for the year ended December 31, 2024, compared to the same period in 2023.
OTHER EXPENSE, NET
Year Ended December
31,
Year-over-Year Change
(dollar amounts in millions)
2024
2023
Increase
(Decrease) Amount
Increase
(Decrease) Percent
Interest income
$
23.8 $
15.2 $
8.6
56.6 %
Interest expense
(80.5 )
(55.6 )
(24.9 )
44.8 %
Foreign currency exchange (loss) / gain, net
(19.1 )
8.0
(27.1 )
(338.8) %
Other gains, net
21.5
0.2
21.3
10,650.0 %
Other expense, net
$
(54.3 ) $
(32.2 ) $
(22.1 )
68.6 %
Interest income and interest expense increased in 2024 compared to 2023 due to an increase in the variable interest rates.
Foreign currency exchange loss, net
Foreign currency exchange activity includes gains and losses on certain foreign currency exchange derivative contracts and
the impact of re-measurement of assets and liabilities denominated in foreign currencies. Assets and liabilities denominated
in currencies other than the local currency of each of our subsidiaries give rise to foreign currency exchange gains and losses.
Foreign currency exchange gains and losses that result from re-measurement of these assets and liabilities are recorded in net
income. The majority of our foreign currency exchange gains or losses are due to the re-measurement of intercompany loans
which are not considered a long-term investment in nature and are in a currency other than the functional currency of one of
the parties to the loan. For example, we make intercompany loans based in euros from our corporate division, which is
composed of U.S. dollar functional currency entities, to certain European entities that use the euro as the functional currency.
As the U.S. dollar strengthens against the euro, foreign currency exchange losses are recognized by our corporate entities
because the number of euros to be received in settlement of the loans decreases in U.S. dollar terms. Conversely, in this
example, in periods where the U.S. dollar weakens, our corporate entities will record foreign currency exchange gains.
We recorded a net foreign currency exchange loss of $19.1 million for the year ended December 31, 2024, compared to a net
foreign currency exchange gain of $8.0 million for the same period in 2023. These realized and unrealized foreign currency
exchange gains and losses reflect the fluctuation in the value of the U.S. dollar against the currencies of the countries in
which we operated during the respective periods.
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67
INCOME TAX EXPENSE
Our effective income tax rates as reported and as adjusted are calculated below:
Year Ended December 31,
(dollar amounts in millions)
2024
2023
Income before income taxes
$
448.9 $
400.4
Income tax expense
(142.6 )
(120.9 )
Net income
$
306.3 $
279.5
Effective income tax rate
31.8 %
30.2 %
Income before income taxes
$
448.9 $
400.4
Adjust: Other gains, net
21.5
0.2
Adjust: Foreign currency exchange gain (loss), net
(19.1 )
8.0
Income before income taxes, as adjusted
$
446.5 $
392.2
Income tax expense
$
(142.6 ) $
(120.9 )
Adjust: Income tax attributable to foreign currency exchange gain (loss), net
(8.7 )
4.7
Income tax expense, as adjusted
$
(133.9 ) $
(125.6 )
Effective income tax rate, as adjusted
30.0 %
32.0 %
We calculate our effective income tax rate by dividing income tax expense by pre-tax book income. Our effective income tax
rates were 31.8% and 30.2% for the years ended December 31, 2024 and 2023, respectively. The effective income tax rates
were influenced by the impact of foreign currency exchange gains (losses). Excluding foreign currency exchange gains
(losses) as well as the related tax effects for these items, our adjusted effective income tax rates were 30.0% and 32.0% for
the years ended December 31, 2024 and 2023, respectively.
The effective income tax rate, as adjusted, for 2024 was higher than the applicable statutory income tax rate of 21% primarily
because of certain foreign earnings being subject to higher local statutory tax rates. The effective income tax rate, as adjusted,
for 2023 was higher than the applicable statutory income tax rate of 21% primarily because of the projected utilization of
U.S. tax benefits, and certain foreign earnings being subject to higher local statutory tax rates. We determine income tax
expense based upon enacted tax laws applicable in each of the taxing jurisdictions where we conduct business. Based on our
interpretation of such laws and considering the evidence of available facts and circumstances and baseline operating
forecasts, we have accrued the estimated income tax effects of certain transactions, business ventures, contract and
organizational structures, and the estimated future reversal of timing differences. Should a taxing jurisdiction change its laws
or dispute our conclusions, or should management become aware of new facts or other evidence that could alter our
conclusions, the resulting impact to our estimates could have a material adverse effect on our results of operations and
financial condition.
Income before income taxes, as adjusted, income tax expense, as adjusted and effective income tax rate, as adjusted, are non-
U.S. GAAP financial measures that management believes are useful for understanding why our effective income tax rates are
significantly different than would be expected. These non-U.S. GAAP measures are used by management to conduct and
evaluate its business during its regular review of operating results for the periods presented.
Our total liability for uncertain tax positions under Accounting Standards Codification ("ASC") 740-10-25 and -30 was $48.6
million as of December 31, 2024. The application of ASC 740-10-25 and -30 requires significant judgment in assessing the
outcome of future income tax examinations and their potential impact on the Company's estimated effective income tax rate
and the value of deferred tax assets, such as those related to the Company's net operating loss carryforwards. It is reasonably
possible that the balance of gross unrecognized tax benefits could significantly change within the next twelve months, as a
result of the resolution of audit examinations and expirations of certain statutes of limitations and, accordingly, materially
affect our Consolidated Financial Statements. At this time, it is not possible to estimate the range of change due to the
uncertainty of potential outcomes.
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68
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
Non-controlling interests represent the elimination of net income or loss attributable to the minority shareholders' portion of
the following consolidated subsidiaries that are not wholly owned:
Subsidiary
Percent Owned
Segment - Country
Euronet China
80%
EFT - China
Euronet Pakistan
70%
EFT - Pakistan
Latam ATM Solutions
51%
EFT - South America
NET INCOME (LOSS) ATTRIBUTABLE TO EURONET
Net income attributable to Euronet was $306.0 million for the year ended December 31, 2024, an increase of $26.3 million
compared to net income in the same period in 2023. For the year ended December 31, 2024, the increase in net income was
primarily attributable to the $135.3 million increase in gross profit driven by an increase in transaction volumes across all
three segments and an increase in other gains of $21.3 million, partially offset by a $47.3 million increase in salaries and
benefits, a $27.1 million foreign currency exchange loss, a $16.3 million increase in interest expenses and a $21.7 million
increase in income tax expense.
TRANSLATION ADJUSTMENT
Translation gains and losses are the result of translating our foreign entities' balance sheets from local functional currency to
the U.S. dollar reporting currency prior to consolidation and are recorded in comprehensive (loss) income. As required by
U.S. GAAP, during this translation process, asset and liability accounts are translated at current foreign currency exchange
rates and equity accounts are translated at historical rates. Historical rates represent the rates in effect when the balances in
our equity accounts were originally created. By using this mix of rates to convert the balance sheet from functional currency
to U.S. dollars, differences between current and historical exchange rates generate this translation adjustment.
We recorded a net loss on translation adjustments of $117.8 million for 2024 and a net gain of $47.9 million for 2023.
In 2024, the U.S. dollar strengthened compared to key foreign currencies, resulting in translation losses which were recorded
in comprehensive (loss) income. In 2023, the U.S. dollar weakened compared to key foreign currencies, resulting in
translation gains which were recorded in comprehensive (loss) income.
LIQUIDITY AND CAPITAL RESOURCES
Working capital
As of December 31, 2024, we had working capital of $810.5 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 due to several changes in working capital line items, mainly due to 2023 ending in the
weekend, which increased funding needs for our money transfer agents. 2024 ended on a Tuesday, which impacted our
working capital line items positively as balances were settled before year-end. Our ratio of current assets to current liabilities
was 1.25 and 1.54 at December 31, 2024 and December 31, 2023, respectively.
We require substantial working capital to finance operations. The Money Transfer Segment funds the payout of the majority
of our consumer-to-consumer money transfer services before receiving the benefit of amounts collected from customers by
agents. Working capital needs increase due to weekends and banking holidays. As a result, we may report more or less
working capital for the Money Transfer Segment based solely upon the day on which the reporting period ends. The epay
Segment produces positive working capital, but much of it is restricted in connection with the administration of its customer
collection and vendor remittance activities. In our EFT Processing Segment, we obtain a significant portion of the cash
required to operate our ATMs through various cash supply arrangements, the amount of which is not recorded on Euronet's
Consolidated Balance Sheets. However, in certain countries, we fund the cash required to operate our ATM network from
borrowings under the revolving credit facilities and cash flows from operations. As of December 31, 2024, we had
approximately $643.8 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 Sheets. ATM cash increased $118.6 million from $525.2 million as of December 31,
2023 to $643.8 million as of December 31, 2024.
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69
The Company has $1,278.8 million of unrestricted cash as of December 31, 2024 compared to $1,254.2 million as of
December 31, 2023. The Company has access to $2,289.8 million in available cash, and $1,335.1 million available under the
Company's revolving credit facility.
We had cash, cash equivalents and restricted cash of $2,488.2 million as of December 31, 2024, of which $2.064.7 million
was held outside of the U.S. and is expected to be indefinitely reinvested for continued use in foreign operations. Repatriation
of these assets to the U.S. could have negative tax consequences.
The following table identifies cash and cash equivalents provided by/(used in) our operating, investing and financing
activities for the years ended December 31, 2024 and 2023 (in millions):
Year Ended December 31,
Liquidity
2024
2023
Cash and cash equivalents and restricted cash provided by (used in):
Operating activities
$
732.8 $
643.1
Investing activities
(223.3 )
(157.6 )
Financing activities
(135.7 )
(143.2 )
Effect of foreign currency exchange rate changes on cash and cash equivalents and
restricted cash
(132.6 )
(86.1 )
Increase/(Decrease) in cash and cash equivalents and restricted cash
$
241.2 $
256.2
Operating cash flow
Cash flows provided by operating activities were $732.8 million for the year ended December 31, 2024 compared to
$643.1 million for the same period in 2023. The increase in operating cash flows was primarily due to the increase in net
income, increase in unrealized foreign exchange results and increase in working capital, partially offset by a decrease in the
changes in non-current assets and liabilities.
Investing activity cash flow
Cash flows used in investing activities were $223.3 million for the year ended December 31, 2024 compared to $157.6
million for the same period in 2023. We used $117.2 million for purchases of property and equipment for the year ended
December 31, 2024 compared to $94.4 million for the same period in 2023. We used $91.6 million for acquisitions in 2024
and there were no material acquisitions in 2023.
Financing activity cash flow
Cash flows used in financing activities were $135.7 million for the year ended December 31, 2024 compared to $143.2
million for the same period in 2023. The decrease in cash used in financing activities was primarily the result of the
$120.3 million net borrowings on debt obligations/credit agreements for the year ended December 31, 2024 compared to
$229.4 million for the same period in 2023. We repurchased $265.2 million of common stock during the year ended
December 31, 2024 compared to repurchases of $378.4 million for the same period in 2023. We received proceeds of
$17.2 million and $7.8 million during the year ended December 31, 2024 and 2023, respectively, for the issuance of stock in
connection with our Stock Incentive Plan.
Other sources of capital
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 USD 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. dollars. Subject to certain
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70
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 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%. The current facility
fee is 0.175%. As of December 31, 2024 and 2023, the stand-by letters of credit interest charges were each 1.25% per annum.
Borrowing capacity under the Credit Facility as of December 31, 2024 was $1,335.1 million. The weighted-average interest
rate of the Company's borrowings under the Credit Facility from January 1, 2024 to December 31, 2024 was 6.39%.
Uncommitted Line of Credit - 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 December 31, 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 Company at the time such Loan is
made. The weighted-average interest rate from loan inception date to December 31, 2024, was 6.07%.
Convertible debt - On March 18, 2019, we completed the sale of $525.0 million in principal amount of Convertible Senior
Notes due 2049 (“Convertible Notes”). The Convertible Notes were issued pursuant to an indenture, dated as of March
18, 2019 (the “Indenture”), by and between us and U.S. Bank National Association, as trustee. The Convertible Notes have
an interest rate of 0.75% per annum payable semi-annually in March and September and are convertible into shares
of Euronet common stock at a conversion price of approximately $188.73 per share if certain conditions are met (relating to
the closing prices of Euronet common stock exceeding certain thresholds for specified periods). 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. The Company has a March 15, 2025 put date on the $525 million Convertible Notes, requiring us to issue a notice
informing the market of this put date. Given current bond trading levels and our share price, we anticipate that bondholders
will exercise their put option and as a result the Convertible Notes are classified as short-term obligations. As noted above,
the holders of the Convertible Notes have the option to require the Company to repurchase their Convertible Notes on March
15, 2025. Given current bond trading levels and the Company’s share price, the Company anticipates that holders of the
Convertible Notes will exercise their repurchase option and as a result the Convertible Notes are classified as short-term
obligations on the Consolidated Balance Sheet as of December 31, 2024.
Senior Notes - On May 22, 2019, we completed the sale of €600 million ($669.9 million) aggregate principal amount of
Senior Notes that mature in May 2026 (the "Senior Notes"). The Senior Notes accrue interest at a rate of 1.375% per year,
payable annually in arrears commencing May 22, 2020, until maturity or earlier redemption. As of December 31, 2024, we
have outstanding €600 million ($621.5 million) principal amount of the Senior Notes. In addition, the Company may redeem
some or all of these notes on or after February 22, 2026 at their principal amount plus any accrued and unpaid interest. As
of December 31, 2024, we had $1.7 million of unamortized debt issuance costs related to the Senior Notes.
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 were $37.7 million and $0.3 million outstanding
under these other obligation arrangements as of December 31, 2024 and December 31, 2023. 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 December 31, 2024 $37.4 million was borrowed under this facility.
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Other uses of capital
Capital expenditures and needs— Total capital expenditures for 2024 were $117.2 million. These capital expenditures were
primarily for the purchase of ATMs to expand our IAD network in Europe, 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 be
approximately $85 million to $95 million.
Contractual lease obligations — We have entered into contractually binding operating and finance lease commitments to
operate the business. Operating lease expenses were $51.6 million and $50.1 million for the years ended December 31, 2024
and 2023, respectively. Finance lease expenses were not material for 2024 or 2023. For additional information on operating
and finance lease obligations, see Note 14, Leases, to the Consolidated Financial Statements.
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, 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. However, we can offer no assurances
that we will be able to obtain favorable terms for the refinancing of any of our debt or other obligations or for the issuance of
additional equity.
Share repurchase plan
The repurchase program, initiated on September 13, 2022, to repurchase up to $350 million in value, but not more than 7.0
million shares of common stock through September 13, 2024, has been completed. During 2024, we repurchased
850,528 shares under the repurchase program at a weighted average purchase price of $113.63 for a total value of $96.6
million.
On September 13, 2023, the Company initiated a repurchase program to repurchase up to $350 million in value, but not more
than 7.0 million shares of common stock through September 13, 2025. During 2024, we repurchased 1,625,005 shares under
the repurchase program at a weighted average purchase price of $103.73 for a total value of $168.6 million.
On September 11, 2024, the Company initiated a repurchase program to repurchase up to $350 million in value, but not more
than 7.0 million shares of common stock through September 11, 2026. During 2024, the Company did not repurchase shares
under this plan.
Repurchases under the programs may take place in the open market or in privately negotiated transactions, including
derivative transactions, and may be made under a Rule 10b5-1 plan.
The Inflation Reduction Act (IRA) was signed into law in August 2022. Among other things, it imposes a 1% excise tax on
net share repurchases.
Inflation and functional currencies
Generally, the countries in which we operate have experienced low and stable inflation in recent years, further the local
currency in each of these markets is the functional currency. Currently, we do not believe that inflation will have a significant
effect on our results of operations or financial position. We continually review inflation and the functional currency in each
of the countries where we operate.
Off-balance sheet arrangements
We have certain significant off-balance sheet items described in Note 21, Commitments, to the Consolidated Financial
Statements. On occasion, we grant guarantees of the obligations of our subsidiaries, and we sometimes enter into agreements
with unaffiliated third parties that contain indemnification provisions, the terms of which may vary depending on the
negotiated terms of each respective agreement. Our liability under such indemnification provisions may be subject to time
and materiality limitations, monetary caps and other conditions and defenses. 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 December 31, 2024.
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CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of financial statements in conformity with U.S. GAAP which requires management to make estimates,
judgments and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying
notes. Management considers an accounting policy and estimate to be critical if it requires the use of assumptions that were
uncertain at the time the estimate was made and if changes in the estimate or selection of a different estimate could have a
material effect on the Company's financial condition and results of operations. Our most critical estimates and assumptions
are used for computing income taxes, allocating the purchase price to assets acquired and liabilities assumed in acquisitions,
and potential impairment of intangible assets and goodwill. We base our estimates on historical experience and on various
other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making
judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results
could differ materially from these estimates. For a summary of all of the Company's significant accounting policies, see Note
3, Summary of Significant Accounting Policies and Practices, to the accompanying Consolidated Financial Statements.
Accounting for income taxes
The deferred income tax effects of transactions reported in different periods for financial reporting and income tax return
purposes are recorded under the asset and liability method prescribed under ASC Topic 740, Income Taxes ("ASC 740").
This method gives consideration to the future tax consequences of deferred income or expense items and immediately
recognizes changes in income tax laws upon enactment. The consolidated statement of operations effect is generally derived
from changes in deferred income taxes, net of valuation allowances, on the balance sheet as measured by differences in the
book and tax bases of our assets and liabilities.
We have significant tax loss carryforwards, and other temporary differences, which are recorded as deferred tax assets and
liabilities. Deferred tax assets realizable in future periods are recorded net of a valuation allowance based on an assessment of
each entity, or group of entities', ability to generate sufficient taxable income within an appropriate period, in a specific tax
jurisdiction.
In assessing the recognition of deferred tax assets, we consider whether it is more likely than not that some portion or all of
the deferred tax assets will be realized. As more fully described in Note 15, Income Taxes, to the Consolidated Financial
Statements, gross deferred tax assets were $225.0 million as of December 31, 2024, partially offset by a valuation allowance
of $75.0 million. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income
during the periods in which those temporary differences become deductible. We make judgments and estimates on the
scheduled reversal of deferred tax liabilities, historical and projected future taxable income in each country in which we
operate, and tax planning strategies in making this assessment.
Based upon the level of historical taxable income and current projections for future taxable income over the periods in which
the deferred tax assets are deductible, we believe it is more likely than not that we will realize the benefits of these deductible
differences, net of the existing valuation allowance at December 31, 2024. If we have a history of generating taxable income
in a certain country in which we operate, and baseline forecasts project continued taxable income in this country, we will
reduce the valuation allowance for those deferred tax assets that we expect to realize.
Additionally, we follow the provisions of ASC 740-10-25 and -30 to account for uncertainty in income tax positions.
Applying the standard requires substantial management judgment and use of estimates in determining whether the impact of
a tax position is "more likely than not" of being sustained on audit by the relevant taxing authority. We consider many factors
when evaluating and estimating our tax positions, which may require periodic adjustments, and which may not accurately
anticipate actual outcomes. It is reasonably possible that amounts reserved for potential exposure could change significantly
as a result of the conclusion of tax examinations and, accordingly, materially affect our operating results.
Business combinations
In accordance with ASC Topic 805, Business Combinations ("ASC 805"), we allocate the acquisition purchase price of an
acquired entity to the assets acquired, including identifiable intangibles, and liabilities assumed based on their estimated fair
values at the date of acquisition. Management applies various valuation methodologies to these acquired assets and assumed
liabilities which often involve a significant degree of judgment, particularly when liquid markets do not exist for the
particular item being valued. Examples of such items include loans, deposits, identifiable intangible assets and certain other
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assets and liabilities acquired or assumed in business combinations. Management uses significant estimates and assumptions
to value such items, including projected cash flows and discount rates. For larger or more complex acquisitions, we generally
obtain third-party valuations to assist us in estimating fair values. The use of different valuation techniques and assumptions
could change the amounts and useful lives assigned to the assets and liabilities acquired and related amortization expense.
During the measurement period, which is not to exceed one year from the acquisition date, we may record adjustments to the
assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement
period, any subsequent adjustments are recorded to earnings.
Goodwill and intangible assets
In accordance with ASC Topic 350, Intangibles - Goodwill and Other (“ASC 350”), we evaluate the carrying value of our
indefinite-lived assets, including goodwill, at least annually or more frequently whenever events or changes in circumstances
indicate that the asset may be impaired, or in the case of goodwill, that the fair value of the reporting unit may be less than its
carrying amount. Our annual impairment tests are performed during the fourth quarter and are performed at the reporting unit
level. Our annual process for evaluating goodwill allows us to perform a qualitative assessment for all reporting units, and
then perform a quantitative goodwill impairment test for those reporting units in which it is deemed necessary. The
qualitative factors evaluated by the Company include: economic conditions of the local business environment, overall
financial performance, sensitivity analysis from the most recent quantitative test, and other entity specific factors as deemed
appropriate. If we determine a quantitative goodwill impairment test is appropriate, the test involves comparing the fair value
of a reporting unit to its carrying amount, including goodwill, after any long-lived asset impairment charges. Generally, the
fair value is determined using discounted projected future cash flows and market multiple of earnings. If the carrying amount
of the reporting unit exceeds the fair value of the reporting unit, a goodwill impairment loss is recognized in an amount equal
to the excess. Determining the fair value of reporting units requires significant management judgment in estimating future
cash flows and assessing potential market and economic conditions. It is reasonably possible that our operations will not
perform as expected, or that estimates or assumptions could change, which may result in the recording of material non-cash
impairment charges during the year in which these determinations take place.
Acquired finite-lived intangible assets are amortized over their estimated useful lives. We evaluate the recoverability of our
finite-intangible assets, as a part of our long-lived assets, for possible impairment whenever events or circumstances indicate
that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which
identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The recoverability of these
assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to
generate. If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount of
such assets is reduced to its fair value. In addition to the recoverability assessment, we routinely review the remaining
estimated useful lives of our finite-lived intangible assets. If we reduce the estimated useful life assumption for any asset, the
remaining unamortized balance would be amortized over the revised estimated useful life.
As of December 31, 2024, the Consolidated Balance Sheet includes goodwill of $859.2 million and acquired intangible
assets, net of accumulated amortization, of $188.9 million. For the year ended December 31, 2024, no impairment of
goodwill or acquired intangible assets has been identified.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
See Item 8 of Part II, "Financial Statements and Supplementary Data — Note 3 — Summary of Significant Accounting
Policies and Practices.
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FORWARD-LOOKING STATEMENTS
This document contains statements that constitute forward-looking statements within the meaning of section 27A of the
Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 ("Exchange Act"). Generally, the words
"believe," "expect," "anticipate," "intend," "estimate," "will" and similar expressions identify forward-looking statements.
However, the absence of these words or similar expressions does not mean the statement is not forward-looking. All
statements other than statements of historical facts included in this document are forward-looking statements, including, but
not limited to, statements regarding the following:
•
our business plans and financing plans and requirements;
•
trends affecting our business plans and financing plans and requirements;
•
trends affecting our business;
•
the adequacy of capital to meet our capital requirements and expansion plans;
•
the assumptions underlying our business plans;
•
our ability to repay indebtedness;
•
our estimated capital expenditures;
•
the potential outcome of loss contingencies;
•
our expectations regarding the closing of any pending acquisitions;
•
business strategy;
•
government regulatory action;
•
the expected effects of changes in laws or accounting standards;
•
the impact of the pandemics, including its variants on our results of operations and financial position;
•
technological advances; and
•
projected costs and revenues.
Although we believe that the expectations reflected in these forward-looking statements are reasonable, we can give no
assurance that these expectations will prove to be correct.
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 pandemics; inflation; the war in Ukraine and the Middle East and the related economic sanctions; our ability to
successfully integrate any acquired operations economic conditions in specific countries and regions; technological
developments affecting the market for our products and services; our ability to successfully introduce new products and
services; foreign currency exchange rate fluctuations; the effects of any breach of our computer systems or those of our
customers or vendors, including our financial processing networks or those of other third parties; interruptions in any of our
systems or those of our vendors or other third parties; our ability to renew existing contracts at profitable rates; 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 EU'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 DCC transactions,
changes in our relationships with, or in fees charged by, our business partners; competition; the outcome of claims and other
loss contingencies affecting Euronet; 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 1A — Risk
Factors. Any forward-looking statements made in this Form 10-K speak only as of the date of this report. Except as required
by law, we do not intend, and do not undertake, any obligation to update any forward-looking statements to reflect future
events or circumstances after the date of such statements.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest rate risk
As of December 31, 2024, our total debt outstanding, excluding unamortized debt issuance costs, was $1,954.6 million. Of
this amount, $525 million, or 27% of our total debt obligations, relates to our Convertible Notes that have a fixed coupon
rate. Our $525.0 million outstanding principal amount of Convertible Notes accrues cash interest at a rate of 0.75% of the
principal amount per annum. Based on quoted market prices, as of December 31, 2024, the fair value of our fixed rate
Convertible Notes was $515.4 million, compared to a carrying value of $525.0 million. Further, as of December 31, 2024, we
had $520.4 million outstanding under our Credit Facility, or 27% of our total debt obligations. If we were to maintain these
borrowings for one year and maximize the potential borrowings available under the revolving credit facility for one year, a
1% (100 basis points) increase in the applicable interest rate would result in additional interest expense to the Company of
approximately $19 million. The carrying value of the Credit Facility approximates fair value because interest as of December
31, 2024, was based on Secured Overnight Financing Rate (SOFR) that reset at various intervals of less than one year.
Additionally, $621.5 million, or 32% of our total debt obligations, relates to Senior Notes having a fixed coupon rate. Our
€600.0 million outstanding principal amount of Senior Notes accrues cash interest at a rate of 1.375% of the principal per
annum. Based on quoted market prices, as of December 31, 2024, the fair value of our fixed rate Senior Notes was $604.8
million, compared to a carrying value of $621.5 million. Also, $250.0 million, or 13% of our total debt obligations, relates
to an Uncommitted Loan Agreement, fully drawn and outstanding at December 31, 2024, for the sole purpose of providing
vault cash for ATMs, that expires no later than June 20, 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
remaining $37.7 million, or less than 2% of our total debt obligations, is related to borrowings by certain subsidiaries to fund,
from time to time, working capital requirements.
Our excess cash is invested in instruments with original maturities of three months or less or in certificates of deposit that
may be withdrawn at any time without penalty; therefore, as investments mature and are reinvested, the amount we earn will
increase or decrease with changes in the underlying short-term interest rates.
Foreign currency exchange rate risk
For the years ended December 31, 2024 and 2023, 76% of our revenues were generated in non-U.S. dollar countries. We
expect to continue generating a significant portion of our revenues in countries with currencies other than the U.S. dollar.
We are particularly vulnerable to fluctuations in exchange rates of the U.S. dollar to the currencies of countries in which we
have significant operations, primarily the euro, British pound, Australian dollar, Polish zloty, Indian rupee, New Zealand
dollar, Malaysian ringgit and Hungarian forint. As of December 31, 2024, we estimate that a 10% fluctuation in these foreign
currency exchange rates would have the combined annualized effect on reported net income and working capital of
approximately $115 million to $125 million. This effect is estimated by applying a 10% adjustment factor to our non-U.S.
dollar results from operations, intercompany loans that generate foreign currency gains or losses and working capital balances
that require translation from the respective functional currency to the U.S. dollar reporting currency.
Additionally, we have other non-current, non-U.S. dollar assets and liabilities on our balance sheet that are translated to the
U.S. dollar during consolidation. These items primarily represent goodwill and intangible assets recorded in connection with
acquisitions in countries other than the U.S. We estimate that a 10% fluctuation in foreign currency exchange rates would
have a non-cash impact on total comprehensive (loss) income of approximately ($80) million to ($90) million as a result of
the change in value of these items during translation to the U.S. dollar. For the fluctuations described above, a strengthening
U.S. dollar produces a financial loss, while a weakening U.S. dollar produces a financial gain.
We believe this quantitative measure has inherent limitations and does not take into account any governmental actions or
changes in either customer purchasing patterns or our financing or operating strategies. Because a majority of our revenues
and expenses are incurred in the functional currencies of our international operating entities, the profits we earn in foreign
currencies are positively impacted by a weakening of the U.S. dollar and negatively impacted by a strengthening of the U.S.
dollar. Additionally, our debt obligations are primarily in U.S. dollars; therefore, as foreign currency exchange rates fluctuate,
the amount available for repayment of debt will also increase or decrease.
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We use derivatives to minimize our exposures related to changes in foreign currency exchange rates and to facilitate foreign
currency risk management services by writing derivatives to customers. Derivatives are used to manage the overall market
risk associated with foreign currency exchange rates; however, we do not perform the extensive record-keeping required to
account for the derivative transactions as hedges. Due to the relatively short duration of the derivative contracts, we use the
derivatives primarily as economic hedges. Since we do not designate foreign currency derivatives as hedging instruments
pursuant to the accounting standards, we record gains and losses on foreign exchange derivatives in earnings in the period
of change.
A majority of our consumer-to-consumer money transfer operations involve receiving and disbursing different currencies, in
which we earn a foreign currency spread based on the difference between buying currency at wholesale exchange rates and
selling the currency to consumers at retail exchange rates. We enter into foreign currency forward and cross-currency swap
contracts to minimize exposure related to fluctuations in foreign currency exchange rates. The changes in fair value related to
these contracts are recorded in Foreign currency exchange (loss) gain, net on the Consolidated Statements of Operations. As
of December 31, 2024, we had foreign currency derivative contracts outstanding with a notional value of $281.5 million,
primarily in Australian dollars, British pounds, Canadian dollars, euros and Mexican pesos, that were not designated as
hedges and mature within a few days.
For derivative instruments our xe operations write to customers, we aggregate the foreign currency exposure arising from
customer contracts and hedge the resulting net currency risks by entering into offsetting contracts with established financial
institution counterparties as part of a broader foreign currency portfolio. The changes in fair value related to the total
portfolio of positions are recorded in Revenues on the Consolidated Statements of Operations. As of December 31, 2024, we
held foreign currency derivative contracts outstanding with a notional value of $0.9 billion, primarily in U.S. dollars, euros,
British pounds, Australian dollars, and New Zealand dollars, that were not designated as hedges and for which the majority
mature within the next twelve months.
We use longer-term foreign currency forward contracts to mitigate risks associated with changes in foreign currency
exchange rates on certain foreign currency denominated other asset and liability positions. As of December 31, 2024, the
Company had foreign currency forward contracts outstanding with a notional value of $710.4 million, primarily in euros.
See Note 13, Derivative Instruments and Hedging Activities to our Consolidated Financial Statements for
additional information.
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
PAGE
Report of Independent Registered Public Accounting Firm ........................................................................................................................................
78
CONSOLIDATED FINANCIAL STATEMENTS ............................................................................................................................................................
81
CONSOLIDATED BALANCE SHEETS ................................................................................................................................................................................
81
CONSOLIDATED STATEMENTS OF OPERATIONS ...............................................................................................................................................
82
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME .......................................................................................
83
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .........................................................................................................................
84
CONSOLIDATED STATEMENTS OF CASH FLOWS ..............................................................................................................................................
86
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) Organization .....................................................................................................................................................................................................................................
87
(2) Basis of Preparation ....................................................................................................................................................................................................................
87
(3) Summary of Significant Accounting Policies and Practices ............................................................................................................................
87
(4) Settlement Assets and Obligations ....................................................................................................................................................................................
94
(5) Stockholders' Equity ...................................................................................................................................................................................................................
95
(6) Acquisitions ......................................................................................................................................................................................................................................
96
(7) Restricted Cash ..............................................................................................................................................................................................................................
97
(8) Property and Equipment, Net ...............................................................................................................................................................................................
97
(9) Goodwill and Acquired Intangible Assets, Net ........................................................................................................................................................
98
(10) Convertible Notes Receivable ...........................................................................................................................................................................................
98
(11) Accrued Expenses and Other Current Liabilities ..................................................................................................................................................
99
(12) Debt Obligations ........................................................................................................................................................................................................................
99
(13) Derivative Instruments and Hedging Activities ..................................................................................................................................................... 102
(14) Leases ................................................................................................................................................................................................................................................ 105
(15) Income Taxes ............................................................................................................................................................................................................................... 107
(16) Valuation and Qualifying Accounts .............................................................................................................................................................................. 110
(17) Stock Plans ..................................................................................................................................................................................................................................... 111
(18) Business Segment Information ......................................................................................................................................................................................... 113
(19) Financial Instruments and Fair Value Measurements ........................................................................................................................................ 117
(20) Litigation and Contingencies ............................................................................................................................................................................................. 119
(21) Commitments ............................................................................................................................................................................................................................... 119
(22) Related Party Transactions .................................................................................................................................................................................................. 120
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and Board of Directors
Euronet Worldwide, Inc.:
Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance sheets of Euronet Worldwide, Inc. and subsidiaries (the Company)
as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive (loss) income, changes
in equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes
(collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial
reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by
the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial
position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of
the years in the three-year period ended December 31, 2024, in conformity with U.S. generally accepted accounting
principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2024 based on criteria established in Internal Control – Integrated Framework (2013) issued by
the Committee of Sponsoring Organizations of the Treadway Commission.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal
control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting,
included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to
express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control
over financial reporting based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in
all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our
audit of internal control over financial reporting included obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered
necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
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79
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial
statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or
disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective,
or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the
consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below,
providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Sufficiency of audit evidence over revenue
As discussed in Note 3 to the consolidated financial statements, the Company earned $4.0 billion of revenue in 2024. The
Company earned revenue by payment and transaction processing and distribution solutions to financial institutions, retailers,
service providers and individual consumers (collectively services). The services were provided to customers in approximately
200 countries through 67 worldwide offices within 3 different reportable operating segments.
We identified the evaluation of the sufficiency of audit evidence over revenue as a critical audit matter. The Company’s
geographical dispersion of services worldwide, amongst various business lines required especially subjective auditor
judgment in evaluating the sufficiency of audit evidence over revenue. Further, our audit team consisted of auditors located in
various countries worldwide. This required especially challenging auditor judgment in the level of audit procedures and
supervision applied at each country.
The following are the primary procedures we performed to address this critical audit matter. We applied auditor judgment to
determine the nature and extent of procedures to be performed over revenue, including the determination of locations at
which those procedures were to be performed. At each Company location selected, we:
•
evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s
revenue process, including controls over the accurate recording of revenue amounts
•
assessed the training and experience of the auditors on our audit team that were in countries other than the United
States
•
tested a sample of individual revenue transactions by comparing amounts recognized by the Company to relevant
contracts and or payment and transaction support.
We evaluated the sufficiency of audit evidence obtained over revenue by assessing the results of procedures performed,
including the appropriateness of such evidence.
/s/ KPMG LLP
We have served as the Company's auditor since 2003.
Kansas City, Missouri
February 25, 2025
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CONSOLIDATED FINANCIAL STATEMENTS
EURONET WORLDWIDE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share data)
December 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,278.8 $
1,254.2
ATM cash
643.8
525.2
Restricted cash
9.2
15.2
Settlement assets
1,522.7
1,681.5
Trade accounts receivable, net of credit loss allowance of $4.2 and $3.6
284.9
370.6
Prepaid expenses and other current assets
297.1
316.0
Total current assets
4,036.5
4,162.7
Operating right of use lease assets
132.1
142.6
Property and equipment, net of accumulated depreciation of $589.6 and $656.9
329.7
332.1
Goodwill
859.2
847.5
Acquired intangible assets, net of accumulated amortization of $226.5 and $214.1
188.9
167.6
Other assets, net of accumulated amortization of $82.6 and $76.3
226.7
181.9
Convertible notes receivable
61.4
60.0
Total assets
$
5,834.5 $
5,894.4
LIABILITIES AND EQUITY
Current liabilities:
Settlement obligations
$
1,522.7 $
1,681.5
Trade accounts payable
223.8
241.2
Accrued expenses and other current liabilities
475.7
439.0
Current portion of operating lease obligations
48.3
50.3
Short-term debt obligations and current maturities of long-term debt obligations
812.7
150.3
Income taxes payable
86.4
81.6
Deferred revenue
56.4
56.7
Total current liabilities
3,226.0
2,700.6
Debt obligations, net of current portion
1,134.4
1,715.4
Operating lease obligations, net of current portion
87.4
95.8
Deferred income taxes
71.8
47.0
Other long-term liabilities
85.7
85.9
Total liabilities
4,605.3
4,644.7
Equity:
Euronet Worldwide, Inc. stockholders' equity:
Preferred Stock, $0.02 par value. 10,000,000 shares authorized; none issued
—
—
Common Stock, $0.02 par value. 90,000,000 shares authorized; shares issued 64,788,755 and 64,376,923
1.3
1.3
Additional paid-in capital
1,370.1
1,311.6
Treasury stock, at cost, shares issued 21,061,140 and 18,598,961
(1,755.2 )
(1,487.7 )
Retained earnings
1,934.0
1,627.9
Accumulated other comprehensive loss
(321.5 )
(203.2 )
Total Euronet Worldwide, Inc. stockholders' equity
1,228.7
1,249.9
Noncontrolling interests
0.5
(0.2 )
Total equity
1,229.2
1,249.7
Total liabilities and equity
$
5,834.5 $
5,894.4
See accompanying notes to the Consolidated Financial Statements.
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82
EURONET WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share and per share data)
Year Ended December 31,
2024
2023
2022
Revenues
$
3,989.8 $
3,688.0 $
3,358.8
Operating expenses:
Direct operating costs
2,389.3
2,222.8
2,018.2
Salaries and benefits
650.2
602.9
534.2
Selling, general and administrative
315.3
296.8
285.1
Depreciation and amortization
131.8
132.9
135.9
Total operating expenses
3,486.6
3,255.4
2,973.4
Operating income
503.2
432.6
385.4
Other income (expense):
Interest income
23.8
15.2
2.0
Interest expense
(80.5 )
(55.6 )
(37.5 )
Foreign currency exchange (loss) gains, net
(19.1 )
8.0
(28.2 )
Other gains, net
21.5
0.2
0.9
Other expense, net
(54.3 )
(32.2 )
(62.8 )
Income before income taxes
448.9
400.4
322.6
Income tax expense
(142.6 )
(120.9 )
(91.9 )
Net income
306.3
279.5
230.7
Less: Net (gain) loss attributable to non-controlling interests
(0.3 )
0.2
0.3
Net income attributable to Euronet Worldwide, Inc.
$
306.0 $
279.7 $
231.0
Earnings per share attributable to Euronet Worldwide, Inc. stockholders:
Basic
$
6.82 $
5.77 $
4.60
Diluted
$
6.45 $
5.50 $
4.41
Weighted average shares outstanding:
Basic
44,896,711 48,482,006 50,175,614
Diluted
48,082,766 51,599,633 53,463,308
See accompanying notes to the Consolidated Financial Statements.
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EURONET WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(in millions)
Year Ended December 31,
2024
2023
2022
Net income
$
306.3 $
279.5 $
230.7
Other comprehensive (loss) income
Translation adjustment
(117.8 )
47.9
(78.3 )
Comprehensive (loss) income
188.5
327.4
152.4
Comprehensive loss (income) attributable to noncontrolling interests
0.7
—
(0.2 )
Comprehensive (loss) income attributable to Euronet Worldwide, Inc.
$
189.2 $
327.4 $
152.2
See accompanying notes to the Consolidated Financial Statements.
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84
EURONET WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in millions, except share data)
Number
of Shares
Outstanding
(Common
and
Treasury)
Common
Stock
Additional
Paid-in
Capital
Treasury
Stock
Balance as of December 31, 2021
51,147,884 $
1.3 $
1,274.1 $
(931.2 )
Net income (loss)
—
—
—
—
Other comprehensive (loss) income
—
—
—
—
Adoption of ASU-2020-60 on Convertible bond
—
—
(74.1 )
—
Stock issued under employee stock plans
314,358
—
7.7
0.4
Share-based compensation
—
—
44.1
—
Repurchase of shares
(1,639,535 )
—
—
(175.0 )
Balance as of December 31, 2022
49,822,707
1.3
1,251.8 (1,105.8 )
Net income (loss)
—
—
—
—
Other comprehensive (loss) income
—
—
—
—
Adoption of ASU-2020-60 on Convertible bond
—
—
—
—
Stock issued under employee stock plans
292,151
—
6.1
(3.5 )
Share-based compensation
—
—
53.7
—
Repurchase of shares
(4,336,896 )
—
—
(378.4 )
Balance as of December 31, 2023
45,777,962
1.3
1,311.6 (1,487.7 )
Net income
—
—
—
—
Other comprehensive (loss) income
—
—
—
—
Stock issued under employee stock plans
425,186
—
14.6
(2.3 )
Share-based compensation
—
—
43.9
—
Repurchase of shares
(2,475,533 )
—
—
(265.2 )
Balance as of December 31, 2024
43,727,615 $
1.3 $
1,370.1 $ (1,755.2 )
See accompanying notes to the Consolidated Financial Statements.
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85
EURONET WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
(in millions)
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Noncontrolling
Interests
Total
Balance as of December 31, 2021
$ 1,083.9 $
(172.6 ) $
— $ 1,255.5
Net income (loss)
231.0
—
(0.3 ) 230.7
Other comprehensive (loss) income
—
(78.4 )
0.1 (78.3 )
Adoption of ASU-2020-60 on Convertible bond
33.4
—
—
(40.7 )
Stock issued under employee stock plans
—
—
—
8.1
Share-based compensation
—
—
—
44.1
Repurchase of shares
—
—
— (175.0 )
Balance as of December 31, 2022
1,348.3
(251.0 )
(0.2 ) 1,244.4
Net income (loss)
279.7
—
(0.2 ) 279.5
Other comprehensive (loss) income
(0.1 )
47.8
0.2
47.9
Adoption of ASU-2020-06 on Convertible bond
—
—
—
—
Stock issued under employee stock plans
—
—
—
2.6
Share-based compensation
—
—
—
53.7
Repurchase of shares
—
—
— (378.4 )
Balance as of December 31, 2023
1,627.9
(203.2 )
(0.2 ) 1,249.7
Net income
306.0
—
0.3 306.3
Other comprehensive (loss) income
0.1
(118.3 )
0.4 (117.8 )
Stock issued under employee stock plans
—
—
—
12.3
Share-based compensation
—
—
—
43.9
Repurchase of shares
—
—
— (265.2 )
Balance as of December 31, 2024
$ 1,934.0 $
(321.5 ) $
0.5 $ 1,229.2
See accompanying notes to the Consolidated Financial Statements.
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86
EURONET WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year Ended December 31,
2024
2023
2022
Net income
$
306.3 $
279.5 $
230.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
131.8
132.9
135.9
Share-based compensation
43.9
53.7
44.1
Unrealized foreign exchange loss (gain), net
19.1
(8.0 )
28.2
Deferred income taxes
18.5
13.7
7.9
Accretion of convertible debt discount and amortization of debt issuance costs
4.1
4.0
3.7
Changes in working capital, net of amounts acquired:
Income taxes payable, net
10.3
11.6
10.8
Trade accounts receivable, including amounts in settlement assets
269.8
(190.9 )
(299.4 )
Prepaid expenses and other current assets, including amounts in settlement assets
35.4
42.4
(192.6 )
Trade accounts payable, including amounts in settlement obligations
(53.9 )
53.6
178.1
Deferred revenue
1.2
(10.3 )
(8.4 )
Accrued expenses and other current liabilities, including amounts in settlement obligations
(6.6 )
238.7
608.2
Changes in non-current assets and liabilities
(47.1 )
22.2
1.1
Net cash provided by operating activities
732.8
643.1
748.3
Cash flows from investing activities:
Acquisitions, net of cash acquired
(91.6 )
(1.3 )
(343.0 )
Purchases of property and equipment and proceeds and proceeds from sale property
and equipment
(117.2 )
(94.4 )
(104.3 )
Issuance of Convertible Notes Receivable
—
(60.0 )
—
Purchases of other long-term assets
(14.6 )
(9.1 )
(7.7 )
Other, net
0.1
7.2
1.2
Net cash used in investing activities
(223.3 )
(157.6 )
(453.8 )
Cash flows from financing activities:
Proceeds from issuance of shares
17.2
7.8
9.1
Repurchase of shares
(268.6 )
(378.4 )
(176.0 )
Borrowings from revolving credit agreements
7,971.0
7,925.8
7,904.6
Repayments of revolving credit agreements
(7,988.1 )
(7,393.6 )
(7,733.2 )
Net borrowings (repayments) from short-term debt obligations
137.4
(302.8 )
1.2
Debt issuance costs
(3.1 )
—
(3.0 )
Other, net
(1.5 )
(2.0 )
(3.9 )
Net cash used in financing activities
(135.7 )
(143.2 )
(1.2 )
Effect of exchange rate changes on cash and cash equivalents and restricted cash
(132.6 )
(86.1 )
(388.6 )
Increase (decrease) in cash and cash equivalents and restricted cash
241.2
256.2
(95.3 )
Cash and cash equivalents and restricted cash at beginning of period
2,247.0
1,990.8
2,086.1
Cash and cash equivalents and restricted cash at end of period
$
2,488.2 $
2,247.0 $
1,990.8
Supplemental Cash Flow Disclosures:
Interest paid during the period
$
78.3 $
53.2 $
29.1
Income taxes paid during the period
$
109.0 $
94.5 $
86.2
See accompanying notes to the Consolidated Financial Statements.
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EURONET WORLDWIDE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) ORGANIZATION
Euronet Worldwide, Inc. (the "Company" or "Euronet") was established as a Delaware corporation on December 13, 1996
and succeeded Euronet Holding N.V. as the group holding company, which was founded and established in 1994. Euronet is
a leading financial technology solutions and payments provider. Euronet offers payment and transaction processing and
distribution solutions to financial institutions, retailers, service providers and individual consumers. Euronet's primary
product offerings include comprehensive ATM, POS, card outsourcing, card issuing and merchant acquiring services,
electronic distribution of prepaid mobile airtime and other electronic payment products, and international payment services.
(2) BASIS OF PREPARATION
The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in
the United States ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission
("SEC"). The Consolidated Financial Statements include the accounts of Euronet and its wholly owned and majority owned
subsidiaries and all significant intercompany balances and transactions have been eliminated. Euronet's investments in
companies that it does not control, but has the ability to significantly influence, are accounted for under the equity method.
Euronet has no variable interest entities. Results from operations related to entities acquired during the periods covered by the
Consolidated Financial Statements are reflected from the effective date of acquisition.
The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires that management make a
number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities and the reported amounts of revenues and expenses. Significant items subject to such estimates and
assumptions include computing income taxes, contingent purchase price consideration, estimating the useful lives and
potential impairment of long-lived assets and goodwill, as well as allocating the purchase price to assets acquired and
liabilities assumed in acquisitions and revenue recognition. Actual results could differ from those estimates.
Seasonality
Euronet’s EFT Processing Segment normally experiences its heaviest demand for Dynamic Currency Conversion (DCC)
services during the third quarter of the year, normally coinciding with the tourism season. Additionally, the EFT Processing
and epay Segments are normally impacted by seasonality during the fourth quarter and first quarter of each year due to higher
transaction levels during the holiday season and lower levels following the holiday season. Seasonality in the Money Transfer
Segment varies by region of the world. In most markets, Euronet usually experiences increased demand for money transfer
services from the month of May through the fourth quarter of each year, coinciding with the increase in worker migration
patterns and various holidays, and its lowest transaction levels during the first quarter of the year.
(3) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES
Foreign currencies
Assets and liabilities denominated in currencies other than the functional currency of a subsidiary are remeasured at rates of
exchange on the balance sheet date. Resulting gains and losses on foreign currency transactions are included in the
Consolidated Statements of Operations. The majority of our foreign currency exchange gains or losses are due to
the remeasurement of intercompany loans which are not considered a long-term investment in nature and are in a currency
other than the functional currency of one of the parties to the loan.
The financial statements of foreign subsidiaries where the functional currency is not the U.S. dollar are translated to U.S.
dollars using (i) exchange rates in effect at period end for assets and liabilities, and (ii) weighted average exchange rates
during the period for revenues and expenses. Adjustments resulting from translation of such financial statements are reflected
in accumulated other comprehensive (loss) income as a separate component of consolidated equity.
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88
Cash equivalents
The Company considers all highly liquid investments, with an original maturity of three months or less, and certificates of
deposit, which may be withdrawn at any time at the discretion of the Company without penalty, to be cash equivalents.
ATM cash
ATM cash represents cash within the ATM network either included within ATMs, within dedicated accounts, or in-transit to
ATMs.
Settlement assets and obligations
Settlement assets represent funds received or to be received from agents for unsettled money transfers and from merchants
for unsettled prepaid transactions. See Note 4, Settlement Assets and Obligations, to the Consolidated Financial Statements
for further discussion on settlement assets and obligations.
Property and equipment
Property and equipment are stated at cost, less accumulated depreciation. Property and equipment acquired in acquisitions
have been recorded at estimated fair values as of the acquisition date.
Depreciation is generally calculated using the straight-line method over the estimated useful lives of the respective assets.
Depreciation and amortization rates are generally as follows:
ATMs or ATM upgrades
5 - 8 years
Computers and software
3 - 5 years
POS terminals
3 - 5 years
Vehicles and office equipment
3 - 10 years
Leasehold improvements
Over the lesser of the lease term or estimated useful life
Goodwill and other intangible assets
Goodwill - The Company accounts for goodwill and other intangible assets in accordance with Financial Accounting
Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other ("ASC
350"). In accordance with the requirements of ASC 350 the Company tests for impairment on an annual basis in the fourth
quarter and whenever events or circumstances dictate. Goodwill is allocated among and evaluated for impairment at the
reporting unit level, which is defined as an operating segment or one level below an operating segment.
ASC 350 provides an entity the option to first assess qualitative factors to determine whether the existence of events or
circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a
reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an
impairment is more likely than not, the entity is then required to perform the existing quantitative impairment test (described
below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and,
instead, proceed directly to the quantitative impairment test.
Under the qualitative assessment, various events, and circumstances (or factors) that would affect the estimated fair value of a
reporting unit are identified (similar to impairment indicators). These factors are then classified by the type of impact they
would have on the estimated fair value using positive, neutral, and adverse categories based on current business conditions.
Furthermore, the Company considers the results of the most recent quantitative impairment test completed for a reporting unit
and compares, among other factors, the weighted average cost of capital ("WACC") between the current and prior years for
each reporting unit.
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89
Under the quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each
reporting unit to its carrying value, including goodwill. The Company uses weighted results from the income approach or the
discounted cash flow model ("DCF model") and guideline public company method ("Market Approach model") to estimate
the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows and
EBITDA are the best indicators of such fair value. A number of significant assumptions and estimates are involved in the
application of the DCF model to forecast operating cash flows, including sales volumes, gross margins, tax rates, capital
spending, discount rates and working capital changes. Most of these assumptions vary significantly among the reporting
units. Significant assumptions in the Market Approach model are projected EBITDA, selected market multiple, and the
estimated control premium. If the carrying value of goodwill exceeds its fair value, an impairment loss equal to such excess
would be recognized. The DCF Model and Market Approach Model utilize Level 3 inputs in the fair value hierarchy as they
include unobservable inputs that require significant management assumptions.
Other Intangible Assets - In accordance with ASC 350, intangible assets with finite lives are amortized over their estimated
useful lives. Unless otherwise noted, amortization is calculated using the straight-line method over the estimated useful lives
of the assets as follows:
Non-compete agreements
2 - 5 years
Trademarks and trade names
2 - 20 years
Software
3 - 10 years
Customer relationships
6 - 20 years
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. If such events or changes in circumstances are present, a loss is
recognized if the carrying value of the asset is in excess of the sum of the undiscounted cash flows expected to result from the
use of the asset and its eventual disposition. An impairment loss is measured as the amount by which the carrying amount of
the asset exceeds the fair value of the asset.
See Note 9, Goodwill and Acquired Intangible Assets, Net, to the Consolidated Financial Statements for additional
information regarding the impairment of goodwill and other intangible assets.
Other assets
Other assets include capitalized software development costs and capitalized payments for new or renewed contracts.
Euronet capitalizes initial payments for new or renewed contracts to the extent recoverable through future operations,
contractual minimums and/or penalties in the case of early termination. The Company's accounting policy is to limit the
amount of capitalized costs for a given contract to the lesser of the estimated ongoing net future cash flows related to the
contract or the termination fees the Company would receive in the event of early termination of the contract by the customer.
ASC Topic 340, Other Assets and Deferred Costs ("ASC 340") requires the deferral of incremental costs to fulfill customer
contracts, known as contract assets, which are then amortized to expense as part of direct operating costs over the respective
periods of expected benefit. Deferred contract costs are reported on our balance sheet within current or non-current other
assets based on the expected life of the related contract. At December 31, 2024 and 2023, we had $97.4 million and
$78.4 million, respectively, of deferred contract costs. For the years ended December 31, 2024, 2023 and 2022, we had
$23.4 million, $17.1 million, and $22.1 million of amortization related to these costs, respectively. On a quarterly basis we
evaluate the carrying amount of contract assets recognized to determine if there are contracts that may have a carrying
amount in excess of the remaining future consideration to be received from the contract.
Convertible notes
In August 2020, the FASB issued ASU 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own
Equity" which simplifies the accounting for convertible instruments by eliminating certain accounting models when the
conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do
not result in substantial premiums accounted for as paid-in-capital. Under this ASU, certain debt instruments with embedded
conversion features will be accounted for as a single liability measured at its amortized cost. Additionally, this ASU
Euronet | 2024 Annual Report
90
eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments. We adopted this
standard on January 1, 2022 using the modified retrospective approach, which resulted in our Convertible Senior Notes due
2049 being recognized as a single liability. As a result of the adoption of this standard we recorded a $99.7 million decrease
to additional paid-in capital, a $56.8 million decrease in debt discounts and a $42.9 million increase in retained earnings. The
adoption of this standard also impacted our deferred tax liability by decreasing our deferred tax liability by $15.0 million,
decreasing retained earnings by $10.6 million, and increasing additional paid-in capital by $25.6 million. Additionally, the
elimination of the treasury stock method increases the number of dilutive shares used in the diluted earnings per share
calculation, if dilutive, by 2.8 million shares.
Income taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the
future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and
liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date.
In accordance with ASC Topic 740, Income Taxes ("ASC 740"), the Company's policy is to record estimated interest and
penalties related to the underpayment of income taxes as income tax expense in the Consolidated Statements of Operations.
See Note 15, Income Taxes, to the Consolidated Financial Statements for further discussion regarding these provisions.
Presentation of taxes collected and remitted to governmental authorities
The Company presents taxes collected and remitted to governmental authorities on a net basis in the accompanying
Consolidated Statements of Operations.
Fair value measurements
The Company applies the provisions of ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), regarding
fair value measurements for assets and liabilities. ASC 820 defines fair value, establishes a framework for measuring fair
value and requires certain disclosures about fair value measurements. The provisions apply whenever other accounting
pronouncements require or permit fair value measurements. See Note 19, Financial Instruments and Fair Value
Measurements, to the Consolidated Financial Statements for the required fair value disclosures.
Accounting for derivative instruments and hedging activities
The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and
Hedging ("ASC 815"), which requires that all derivative instruments be recognized as either assets or liabilities on the
balance sheet at fair value. Primarily in the Money Transfer Segment, the Company enters into foreign currency derivative
contracts, mainly forward contracts, to offset foreign currency exposure related to money transfer settlement assets and
liabilities in currencies other than the U.S. dollar, derivative contracts written to its customers arising from its cross-currency
money transfer services and certain assets and liability positions denominated in currencies other than the U.S. dollar. These
contracts are considered derivative instruments under the provisions of ASC 815; however, the Company does not designate
such instruments as hedges for accounting purposes. Accordingly, changes in the value of these contracts are recognized
immediately as a component of foreign currency exchange gain (loss), net in the Consolidated Statements of Operations.
Cash flows resulting from derivative instruments are included in operating activities in the Company's Consolidated
Statements of Cash Flows. The Company enters into derivative instruments with highly credit-worthy financial institutions
and does not use derivative instruments for trading or speculative purposes. See Note 13, Derivative Instruments and
Hedging Activities, to the Consolidated Financial Statements for further discussion of derivative instruments.
Borderless By Design
91
Share-based compensation
The Company follows the provisions of ASC Topic 718, Compensation - Stock Compensation ("ASC 718"), for equity
classified awards, which requires the determination of the fair value of the share-based compensation at the grant date and
subsequent recognition of the related expense over the period in which the share-based compensation is earned ("requisite
service period").
The amount of future compensation expense related to awards of nonvested shares or nonvested share units ("restricted
stock") is based on the market price for Euronet Common Stock at the grant date. The grant date is the date at which all key
terms and conditions of the grant have been determined and the Company becomes contingently obligated to transfer equity
to the employee who renders the requisite service, generally the date at which grants are approved by the Company's Board
of Directors or Compensation Committee thereof. Share-based compensation expense for awards with only service
conditions is generally recognized as expense on a "straight-line" basis over the requisite service period. For awards that vest
based on achieving periodic performance conditions, expense is recognized on a "graded attribution method." The graded
attribution method results in expense recognition on a straight-line basis over the requisite service period for each separately
vesting portion of an award adjusted for any changes in probability of achievement of performance condition. The Company
has elected to use the "with and without method" when calculating the income tax benefit associated with its share-based
payment arrangements. See Note 17, Stock Plans, for further disclosure.
Revenue recognition
The Company recognizes revenue when control of the promised goods or services is transferred to our customers, in an
amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services.
Sales and usage-based taxes are excluded from revenues. A description of the major components of revenue by business
segment is as follows:
EFT Processing — Revenues in the EFT Processing Segment are primarily derived from transaction and management fees
and foreign currency exchange margin from owned and outsourced ATM, POS and card processing networks and from the
sale of EFT software solutions for electronic payment and transaction delivery systems, and fees or margin earned from value
added services, including dynamic currency conversion and domestic and international surcharge.
Transaction-based fees include charges for cash withdrawals, debit or credit card transactions, balance inquiries, transactions
not completed because the relevant card issuer does not give authorization and prepaid mobile airtime recharges. Outsourcing
services are generally billed on the basis of a fixed monthly fee per ATM, plus a transaction-based fee. Transaction-based
fees are recognized at the time the transactions are processed and outsourcing management fees are recognized ratably over
the contract period.
Certain of the Company's non-cancelable customer contracts provide for the receipt of up-front fees from the customer and/or
decreasing or increasing fee schedules over the agreement term for substantially the same level of services to be provided by
the Company. The Company recognizes revenue under these contracts based on proportional performance of services over
the term of the contract. This generally results in "straight-line" (i.e., consistent value per period) revenue recognition of the
contracts' total cash flows, including any up-front payment received from the customer, which is recorded as deferred
revenue upon receipt.
epay — Revenue generated in the epay Segment is primarily derived from commissions or processing fees associated with
distribution and/or processing of prepaid mobile airtime and digital media products. These fees and commissions are received
from mobile operators, content vendors or distributors or from retailers. Commissions are recognized as revenue during the
period in which the Company provides the service. The portion of the commission that is paid to retailers is generally
recorded as a direct operating cost. In selling certain products, the Company is the principle obligor in the arrangements;
accordingly, the gross sales value of the products is recorded as revenue and the purchase cost as direct operating cost.
Transactions are processed through a network of POS terminals and direct connections to the electronic payment systems of
retailers. Transaction processing fees are recognized at the time the transactions are processed.
Euronet | 2024 Annual Report
92
Money Transfer — Revenues for money transfer and other services represent a transaction fee in addition to a margin earned
from purchasing currency at wholesale exchange rates and selling the currency to customers at retail exchange rates.
Revenues and the associated direct operating cost are recognized at the time the transaction is processed. The Company has
origination and distribution agents in place, which each earn a fee for the respective service. These fees are reflected as direct
operating costs.
Revenues
Deferred Revenues — The Company records deferred revenues when cash payments are received or due in advance of its
performance. The decrease in the deferred revenue balance for the year ended December 31, 2024 was primarily driven by
$39.3 million of cash payments received in the current year for which the Company has not yet satisfied the performance
obligations, offset by $39.6 million of revenues recognized that were included in the deferred revenue balance as of
December 31, 2023.
Disaggregation of Revenues — The following table presents the Company's revenues disaggregated by segment and region.
The Company believes disaggregation by segment and region best depicts how the nature, amount, timing, and uncertainty of
revenue and cash flows are affected by economic factors. The disaggregation of revenues by segment and region is based on
management's assessment of segment performance together with allocation of financial resources, both capital and operating
support costs, on a segment and regional level. Both segments and regions benefit from synergies achieved through
concentration of operations and are influenced by macro-economic, regulatory and political factors in the respective
segment and region. The Company recognizes foreign exchange revenues from derivative instruments in its xe operations in
accordance with ASC Topic 815 and not ASC Topic 606. These revenues are not significant to the Company's consolidated
revenues and are included in the following tables.
For the Year Ended December 31, 2024
(in millions)
EFT
Processing
epay
Money
Transfer
Total
Europe
$
856.2 $
748.8 $
704.7 $
2,309.7
North America
73.2
195.9
783.9
1,053.0
Asia Pacific
214.1
155.2
129.1
498.4
Other
17.7
50.6
68.8
137.1
Eliminations
—
—
—
(8.4 )
Total
$
1,161.2 $
1,150.5 $
1,686.5 $
3,989.8
For the Year Ended December 31, 2023
(in millions)
EFT
Processing
epay
Money
Transfer
Total
Europe
$
817.2 $
717.1 $
647.7 $
2,182.0
North America
72.8
172.6
728.9
974.3
Asia Pacific
160.2
137.5
112.8
410.5
Other
8.1
55.2
65.8
129.1
Eliminations
—
—
—
(7.9 )
Total
$
1,058.3 $
1,082.4 $
1,555.2 $
3,688.0
Borderless By Design
93
For the Year Ended December 31, 2022
(in millions)
EFT
Processing
epay
Money
Transfer
Total
Europe
$
716.3 $
658.3 $
581.9 $
1,956.5
North America
69.3
133.3
700.1
902.7
Asia Pacific
133.9
155.0
107.5
396.4
Other
4.7
51.3
55.0
111.0
Eliminations
—
—
—
(7.8 )
Total
$
924.2 $
997.9 $
1,444.5 $
3,358.8
Recent accounting guidance
In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic
280): Improvements to Reportable Segment Disclosures. The amended guidance requires incremental reportable segment
disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable
segment to provide all disclosures required by these amendments, and all existing segment disclosures. The amendments will
be applied retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning
after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption
permitted. The adoption of this standard did not have a significant impact on the Company's consolidated financial statements
and related disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures.
The amended guidance enhances income tax disclosures primarily related to the effective tax rate reconciliation and income
taxes paid information. This guidance requires disclosure of specific categories in the effective tax rate reconciliation and
further information on reconciling items meeting a quantitative threshold. In addition, the amended guidance requires
disaggregating income taxes paid (net of refunds received) by federal, state, and foreign taxes. It also requires disaggregating
individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total
income taxes paid (net of refunds received). ASU 2023-09 is effective for fiscal years beginning after December 15, 2024,
and the Company will adopt the standard in the following fiscal year. The adoption of this standard is not expected to have a
significant impact on the Company's consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), which requires
companies to disclose additional information about expenses in their income statements. The Company already disaggregates
its most significant expense line items, and as a result, the adoption of this standard is not expected to have a significant
impact on the Company's consolidated financial statements and related disclosures.
Euronet | 2024 Annual Report
94
(4) SETTLEMENT ASSETS AND OBLIGATIONS
Settlement assets represent funds received or to be received from agents for unsettled money transfers and from merchants
for unsettled prepaid transactions. The Company records corresponding settlement obligations relating to accounts payable.
Settlement assets consist of cash and cash equivalents, restricted cash, accounts receivable and prepaid expenses and other
current assets. The settlement cash held at the Company is primarily generated from the monies remitted by consumers
through Company agents and financial institutions in payment of the face value of the payment service or foreign currency
purchased and the related fees charged to purchase the currency. The Company uses its cash and cash equivalents to pay the
face value of the payment service product upon presentation by the recipient. Cash received by Company agents and
merchants generally becomes available to the Company within two weeks after initial receipt by the business partner.
Receivables from business partners represent funds collected by such business partners that are in transit to the Company.
Settlement obligations consist of accrued expenses for money transfers, content providers, and EFT customer deposits and
accounts payable to agents and content providers. Money transfer accrued expenses represent amounts to be paid
to beneficiaries when they request funds. Most agents typically settle with beneficiaries first then obtain reimbursement from
the Company. Money order accrued expenses represent amounts not yet presented for payment. Due to the agent funding and
settlement process, accrued expenses to agents represent amounts due to agents for money transfers that have not been settled
with beneficiaries.
(in millions)
As of
December 31,
2024
As of
December 31,
2023
Settlement assets:
Settlement cash and cash equivalents
$
367.2 $
327.4
Settlement restricted cash
189.2
125.0
Account receivables, net of credit loss allowance of $31.7 and $35.7
769.5
1,002.1
Prepaid expenses and other current assets
196.8
227.0
Total settlement assets
$
1,522.7 $
1,681.5
Settlement obligations:
Trade account payables
$
628.2 $
708.6
Accrued expenses and other current liabilities
894.5
972.9
Total settlement obligations
$
1,522.7 $
1,681.5
The table below reconciles cash and cash equivalents, restricted cash, ATM cash, settlement cash and cash equivalents, and
settlement restricted cash as presented within "Cash and cash equivalents and restricted cash" in the Consolidated Statement
of Cash Flows.
As of
(in millions)
December 31,
2024
December 31,
2023
December 31,
2022
Cash and cash equivalents
$
1,278.8 $
1,254.2 $
1,131.2
Restricted cash
9.2
15.2
7.4
ATM cash
643.8
525.2
515.6
Settlement cash and cash equivalents
367.2
327.4
242.6
Settlement restricted cash
189.2
125.0
94.0
Cash and cash equivalents and restricted cash at end of period
$
2,488.2 $
2,247.0 $
1,990.8
Borderless By Design
95
(5) STOCKHOLDERS' EQUITY
Earnings Per Share
Basic earnings per share has been computed by dividing earnings available to common stockholders by the weighted average
number of common shares outstanding during the respective period. Diluted earnings per share has been computed by
dividing diluted earnings by the weighted average shares outstanding during the respective period, after adjusting for the
potential dilution of options to purchase the Company's Common Stock, assumed vesting of restricted stock and the assumed
conversion of the Company's convertible debt.
The following table provides the computation of diluted weighted average number of common shares outstanding:
Year Ended December 31,
2024
2023
2022
Computation of diluted earnings:
Net income attributable to Euronet Worldwide, Inc. stockholders
$
306.0 $
279.7 $
231.0
Add: Interest expense from assumed conversion of convertible notes, net
of tax
4.2
4.2
4.7
Net income for diluted earnings per share calculation
$
310.2 $
283.9 $
235.7
Computation of diluted weighted average shares outstanding:
Basic weighted average shares outstanding
44,896,711 48,482,006 50,175,614
Incremental shares from assumed exercise of stock options and vesting of
restricted stock
404,237
335,809
505,876
Incremental shares from assumed conversion of convertible debt
2,781,818.0 2,781,818 2,781,818
Diluted weighted average shares outstanding
48,082,766 51,599,633 53,463,308
The table includes all stock options and restricted stock that are dilutive to the Company's weighted average common shares
outstanding during the period. The calculation of diluted earnings per share excludes stock options or shares of restricted
stock that are anti-dilutive to the Company's weighted average common shares outstanding for the years ended December 31,
2024, 2023 and 2022 of approximately 3,125,000, 3,768,000 and 1,975,000, respectively.
We issued Convertible Senior Notes ("Convertible Notes") due March 2049 on March 18, 2019. Our Convertible Notes
currently have a settlement feature requiring us upon conversion to settle the principal amount of the debt and any conversion
value in excess of the principal value ("conversion premium"), for cash or shares of our common stock or a combination
thereof, at our option. We have stated our intent to settle any conversion of these notes by paying cash for the principal value
and issuing common stock for any conversion premium; however, after adopting ASU 2020-06, 2.8 million incremental
shares assumed for conversion of convertible notes shall be included in the dilutive earnings per share calculation, if dilutive,
regardless of whether the market price trigger has been met. Therefore, our Convertible Notes were included in the
calculation of diluted earnings (loss) per share if their inclusion was dilutive. The dilutive effect increases the more the
market price exceeds the conversion price of $188.73 per share. See Note 12, Debt Obligations, to the Consolidated Financial
Statements for more information about the Convertible Notes.
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96
Share repurchases
The repurchase program, initiated on September 13, 2022, to repurchase up to $350 million in value, but not more
than 7.0 million shares of common stock through September 13, 2024, has been completed. During 2024, we repurchased
850,528 shares under the repurchase program at a weighted average purchase price of $113.63 for a total value of $96.6
million.
On September 13, 2023, the Company initiated a repurchase program to repurchase up to $350 million in value, but not more
than 7.0 million shares of common stock through September 13, 2025. During 2024, we repurchased 1,625,005 shares under
the repurchase program at a weighted average purchase price of $103.73 for a total value of $168.6 million.
On September 11, 2024, the Company initiated a repurchase program to repurchase up to $350 million in value, but not more
than 7.0 million shares of common stock through September 11, 2026. During 2024, the Company did not repurchase shares
under this plan.
Repurchases under the programs may take place in the open market or in privately negotiated transactions, including
derivative transactions, and may be made under a Rule 10b5-1 plan.
The Inflation Reduction Act (IRA) was signed into law in August 2022. Among other things, it imposes a 1% excise tax on
net share repurchases.
Preferred Stock
The Company has the authority to issue up to 10 million shares of preferred stock, of which no shares are currently issued or
outstanding.
Accumulated other comprehensive gain (loss)
As of December 31, 2024 and 2023, accumulated other comprehensive gain (loss) consists entirely of foreign currency
translation adjustments. The Company recorded a foreign currency translation loss of $117.8 million, a gain of $47.9 million
and a loss of $78.3 million for the years ended December 31, 2024, 2023, and 2022, respectively. There were no
reclassifications of foreign currency translation into the Consolidated Statements of Operations for the years ended December
31, 2024, 2023, and 2022.
Dividends
No dividends were paid on any class of the Company's stock during 2024, 2023, and 2022.
(6) ACQUISITIONS
Acquisitions 2024
On February 1, 2024, Euronet acquired Infinitium Group, a leading regional solutions provider with Payments Authentication
services, for a purchase consideration of $70.0 million cash and $5.0 million of the Company’s common stock to be paid
over two installments on February 1, 2026 and 2027. The Company allocated $51.0 million of the purchase consideration to
customer relationships, $5.6 million to acquired net assets, $10.2 million to deferred tax liability and the remaining
$28.6 million to goodwill.
In the second quarter of 2024, Euronet acquired a business for an immaterial amount.
Acquisitions 2023
The Company completed one acquisition in 2023 for an immaterial amount.
Borderless By Design
97
(7) RESTRICTED CASH
The restricted cash balances as of December 31, 2024 and 2023 were as follows:
As of December 31,
(in millions)
2024
2023
Collateral on bank credit arrangements and other
$
9.2 $
15.2
Restricted cash
$
9.2 $
15.2
Cash held in trust and/or cash held on behalf of others
$
99.8 $
84.8
Collateral on bank credit arrangements and other
89.4
40.2
Restricted cash included within settlement assets
$
189.2 $
125.0
Total Restricted Cash
$
198.4 $
140.2
Cash held in trust and/or cash held on behalf of others is in connection with the administration of the customer collection and
vendor remittance activities by certain subsidiaries within the Company's epay and EFT Processing Segments. Amounts
collected on behalf of certain mobile phone operators and/or merchants are deposited into a restricted cash account. The bank
credit arrangements primarily represent cash collateral on deposit with commercial banks to cover guarantees.
(8) PROPERTY AND EQUIPMENT, NET
The components of property and equipment, net of accumulated depreciation as of December 31, 2024 and 2023 are as
follows:
As of December 31,
(in millions)
2024
2023
ATMs
$
546.2 $
635.8
POS terminals
57.4
43.7
Vehicles and office equipment
70.1
73.8
Computers and software
245.0
235.1
Land and buildings
0.6
0.6
919.3
989.0
Less accumulated depreciation
(589.6 )
(656.9 )
Total
$
329.7 $
332.1
Depreciation expenses related to property and equipment, including property and equipment recorded under finance leases,
for the years ended December 31, 2024, 2023 and 2022 was $102.6 million, $100.8 million, and $101.5 million, respectively.
Euronet | 2024 Annual Report
98
(9) GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET
The following table summarizes intangible assets as of December 31, 2024 and 2023:
As of December 31, 2024 As of December 31, 2023
(in millions)
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Customer relationships
$
308.7 $
(132.7 ) $
270.5 $
(121.4 )
Software
53.8
(53.8 )
56.4
(54.6 )
Trademarks and trade names
43.3
(37.3 )
44.6
(36.3 )
Non-compete agreements
9.6
(2.7 )
10.2
(1.8 )
Total
$
415.4 $
(226.5 ) $
381.7 $
(214.1 )
The following table summarizes the goodwill and amortizable intangible assets activity for the years ended December 31,
2024 and 2023:
(in millions)
Acquired
Intangible
Assets
Goodwill
Total
Intangible
Assets
Balance as of January 1, 2023
$
188.3 $
828.3 $
1,016.6
Increases (decreases):
Acquisitions (see footnote 6)
—
1.3
1.3
Amortization
(24.5 )
—
(24.5 )
Other (primarily changes in foreign currency exchange rates)
3.8
17.9
21.7
Balance as of December 31, 2023
167.6
847.5
1,015.1
Increases (decreases):
Acquisitions (see footnote 6)
51.0
50.2
101.2
Amortization
(21.7 )
—
(21.7 )
Other (primarily changes in foreign currency exchange rates)
(8.0 )
(38.5 )
(46.5 )
Balance as of December 31, 2024
$
188.9 $
859.2 $
1,048.1
Of the total goodwill balance of $859.2 million as of December 31, 2024, $359.7 million relates to the Money Transfer
Segment, $117.8 million relates to the epay Segment and the remaining $381.7 million relates to the EFT Processing
Segment. Amortization expense for intangible assets with finite lives was $21.7 million, $24.5 million, and $27.0 million for
the years ended December 31, 2024, 2023 and 2022, respectively. Estimated annual amortization expense on intangible assets
with finite lives as of December 31, 2024, is expected to be $16.9 million for 2025, $17.2 million for 2026, $16.0 million for
2027, $15.6 million for 2028, and $15.5 million for 2029.
(10) CONVERTIBLE NOTES RECEIVABLE
The Company loaned a total of $60.0 million to Koin Mobile, LLC and Marker Trax, LLC under two promissory notes (the
"Notes"), which were fully executed on October 19, 2023. Under the terms of the Notes, interest will accrue on the Notes at
2% per annum and all unpaid principal and interest will be due and payable on October 18, 2028 if not converted earlier as
discussed below. The Company has a security interest in all of the assets of Koin Mobile, LLC and Marker Trax, LLC. At
December 31, 2024 the outstanding principal and accrued interest were $60.0 million and $1.4 million.
Borderless By Design
99
The Notes are convertible into preferred equity of Koin Mobile, LLC and Marker Trax, LLC at the option of the Company
upon the occurrence of certain events including a qualified equity financing, change in control, achievement of profitability
or at the option of the Company at maturity, as defined in the Notes.
(11) ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
The balances as of December 31, 2024 and 2023 were as follows:
As of December 31,
(in millions)
2024
2023
Accrued expenses
$
322.4 $
254.8
Other tax payables
22.8
69.1
Derivative liabilities
53.7
39.1
Accrued payroll expenses
75.5
74.4
Current portion of finance lease obligations
1.3
1.6
Total
$
475.7 $
439.0
(12) DEBT OBLIGATIONS
Debt obligations consist of the following as of December 31, 2024 and 2023:
As of December 31,
(in millions)
2024
2023
Credit Facility:
Revolving credit agreement
$
520.4 $ 536.9
Convertible Debt:
0.75% convertible notes, unsecured, due 2049
525.0
525.0
1.375% Senior Notes, due 2026
621.5
662.2
Uncommitted credit agreement
250.0
150.0
Other obligations
37.7
0.3
Total debt obligations
$ 1,954.6 $ 1,874.4
Unamortized debt issuance costs
(7.5 )
(8.7 )
Carrying value of debt
$ 1,947.1 $ 1,865.7
Short-term debt obligations and current maturities of long-term debt obligations
(812.7 )
(150.3 )
Long-term debt obligations
$ 1,134.4 $ 1,715.4
As of December 31, 2024, aggregate annual maturities of long-term debt are $621.5 million due in 2026, and $512.9 million
thereafter. This maturity schedule reflects the 1.375% Senior Notes of €600.0 million ($621.5 million) maturing in 2026 and
the revolving credit facility maturing in 2029.
Euronet | 2024 Annual Report
100
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 USD 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 existing 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. dollars. 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 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%. The current facility fee is 0.175%.
The agreement contains customary affirmative and negative covenants, events of default and financial covenants, including
(all as defined in the Credit Facility): (i) a Consolidated Total Leverage Ratio, depending on certain circumstances defined in
the Credit Facility, not to exceed a range between 3.5 to 1.0 and 4.5 to 1.0; and (ii) a Consolidated Interest Coverage Ratio of
not less than 3.0 to 1.0. Subject to meeting certain customary covenants (as defined in the Credit Facility), the Company is
permitted to repurchase common stock and debt. The Company was in compliance with all debt covenants as of
December 31, 2024.
The weighted-average interest rate of the Company's borrowings under the Credit Facility from January 1, 2024 to December
31, 2024 was 6.39%.
As of December 31, 2024 and 2023, the Company had stand-by letters of credit/bank guarantees outstanding under the Credit
Facility of $44.5 million and $51.9 million, respectively. Stand-by letters of credit/bank guarantees reduce the Company's
borrowing capacity under the Credit Facility and are generally used to secure trade credit and performance obligations. As of
December 31, 2024 and 2023, the stand-by letters of credit interest charges were each 1.075% per annum. Available
borrowing capacity under the Credit Facility as of December 31, 2024 was $1,335.1 million.
Uncommitted Credit Agreements
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 December 31, 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 Company at the time such Loan is made. The weighted-average interest
rate from loan inception date to December 31, 2024, was 6.07%.
On June 27, 2024, the Company entered into an Uncommitted Loan Agreement for $300 million, for the sole purpose of
providing vault cash for ATMs, that expired on November 30, 2024. The loan was fully repaid and there was no balance at
December 31, 2024. The loan was a Prime Rate Loan, a Daily Simple SOFR Rate Loan plus 1.125% or bore interest at the
rate agreed to by the Bank and the Company at the time such Loan was made. The weighted-average interest rate from the
loan inception date to November 30, 2024 was 6.24%.
On June 27, 2023, the Company entered into an Uncommitted Credit Agreement for $300 million, for the sole purpose of
providing vault cash for ATMs, that expired on November 30, 2023. The loan was fully repaid and there was no balance at
December 31, 2023. The loan bore interest at the rate per annum equal to the secured overnight financing rate (“SOFR”)
plus 1.125%. The weighted-average interest rate from the loan inception date to November 30, 2023 was 6.37%.
Borderless By Design
101
On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $150 million, fully drawn and
outstanding at December 31, 2023, for the sole purpose of providing vault cash for ATMs, that expired on June 21,
2024. The loan was fully repaid and there was no balance at December 31, 2024. The loan was either 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 such loan was made. The weighted-average interest rate from the January 1, 2024 to June 21, 2024
was 6.34%.
Convertible Debt
On March 18, 2019, the Company completed the sale of $525.0 million of Convertible Senior Notes ("Convertible Notes").
The Convertible Notes mature in March 2049 unless redeemed or converted prior to such date and are convertible into shares
of Euronet Common Stock at a conversion price of approximately $188.73 per share if certain conditions are met (relating to
the closing price of Euronet Common Stock exceeding certain thresholds for specified periods). Holders of the Convertible
Notes have the option to require the Company to purchase their notes on each of March 15, 2025, March 15, 2029, March 15,
2034, March 15, 2039, and March 15, 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, the Company recorded $12.8 million in debt issuance costs, which are being amortized
through March 1, 2025.
The Company may redeem for cash all or any portion of the Convertible Notes, at its option, (i) if the closing sale price of the
Company's Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether
or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on,
and including, the trading day immediately preceding the date on which the Company provides notice of redemption and (ii)
on or after March 20, 2025 and prior to the maturity date, regardless of the foregoing sale price condition, in each case at a
redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid
interest to, but excluding, the redemption date. No sinking fund is provided for the Convertible Notes. In addition, if a
fundamental change, as defined in the Indenture, occurs prior to the maturity date, holders may require the Company to
repurchase for cash all or part of their Convertible Notes 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 fundamental change repurchase
date. As of December 31, 2024 the conversion threshold was not met. On January 1, 2022, the Company adopted ASU 2020-
06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" which simplifies the accounting for
convertible instruments by eliminating certain accounting models when the conversion features are not required to be
accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums
accounted for as paid-in-capital. ASU 2020-06 amended the accounting for convertible instruments with ASC Topic 470
Debt (See Footnote 3 for the accounting impact of adopting ASU 220-06).
As noted above, the holders of the Convertible Notes have the option to require the Company to repurchase their Convertible
Notes on March 15, 2025. Given current bond trading levels and the Company’s share price, the Company anticipates that
holders of the Convertible Notes will exercise their repurchase option and as a result the Convertible Notes are classified as
short-term obligations on the Consolidated Balance Sheet as of December 31, 2024.
Contractual interest expenses for the Convertible Notes was $3.9 million for each of the years ended December 31, 2024,
2023 and 2022. The effective interest rate was 4.35% for the year ended December 31, 2024.
1.375% Senior Notes due 2026
On May 22, 2019, the Company completed the sale of €600.0 million ($669.9 million) aggregate principal amount of Senior
Notes that mature on May 2026 (the "Senior Notes"). The Senior Notes accrue interest at a rate of 1.375% per year, payable
annually in arrears commencing May 22, 2020, until maturity or earlier redemption. As of December 31, 2024, the Company
has outstanding €600.0 million ($621.5 million) principal amount of the Senior Notes. In addition, the Company may redeem
some or all of these notes on or after February 22, 2026 at their principal amount plus any accrued and unpaid interest. As of
December 31, 2024, the Company had $1.7 million of unamortized debt issuance costs related to the Senior Notes.
Euronet | 2024 Annual Report
102
Other obligations
Certain of the Company's subsidiaries have available lines of credit and overdraft credit facilities that generally provide for
short-term borrowings that are used from time to time for working capital purposes. 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 December 31,
2024, $37.4 million was borrowed under this facility.
(13) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Company is exposed to foreign currency exchange risk resulting from (i) the collection of funds or the settlement of
money transfer transactions in currencies other than the U.S. dollar, (ii) derivative contracts written to its customers in
connection with providing cross-currency money transfer services and (iii) certain foreign currency denominated other asset
and liability positions. The Company enters into foreign currency derivative contracts, primarily foreign currency forwards
and cross-currency swaps, to minimize its exposure related to fluctuations in foreign currency exchange rates. As a matter of
Company policy, the derivative instruments used in these activities are economic hedges and are not designated as hedges
under ASC 815, primarily due to either the relatively short duration of the contract term or the effects of fluctuations in
currency exchange rates being reflected concurrently in earnings for both the derivative instrument and the transaction and
have an offsetting effect.
Foreign currency exchange contracts — Ria Operations and Corporate
In the United States, the Company uses short-duration foreign currency forward contracts, generally with maturities up to 14
days, to offset the fluctuation in foreign currency exchange rates on the collection of money transfer funds between initiation
of a transaction and its settlement. Due to the short duration of these contracts and the Company's credit profile, the Company
is generally not required to post collateral with respect to these foreign currency forward contracts. Most derivative
contracts executed with counterparties in the U.S. are governed by an International Swaps and Derivatives Association
agreement that includes standard netting arrangements; therefore, asset and liability positions from forward contracts and all
other foreign exchange transactions with the same counterparty are net settled upon maturity. As of December 31, 2024 and
2023, the Company had foreign currency forward contracts outstanding in the U.S. with a notional value of $281.5 million
and $393.3 million, respectively. The foreign currency forward contracts consist primarily in Australian dollars, Canadian
dollars, British pounds, euros and Mexican pesos.
In addition, the Company uses forward contracts, typically with maturities from a few days to less than one year, to offset
foreign exchange rate fluctuations on certain short-term borrowings that are payable in currencies other than the U.S dollar.
As of December 31, 2024 and 2023, the Company had foreign currency forward contracts outstanding with a notional value
of $710.4 million and $563.1 million, respectively, primarily in euros.
Foreign currency exchange contracts — xe Operations
xe, writes derivative instruments, primarily foreign currency forward contracts and cross-currency swaps, mostly with
counterparties comprised of individuals and small-to-medium size businesses and derives a currency margin from this
activity as part of its operations. xe aggregates its foreign currency exposures arising from customer contracts and hedges the
resulting net currency risks by entering into offsetting contracts with established financial institution counterparties. Foreign
exchange revenues from xe's total portfolio of positions were $88.8 million, $85.3 million, and $86.6 million for the years
ended December 31, 2024, 2023 and 2022, respectively. All of the derivative contracts used in the Company's xe operations
are economic hedges and are not designated as hedges under ASC 815. The duration of these derivative contracts is generally
less than one year.
Borderless By Design
103
The fair value of xe's total portfolio of positions can change significantly from period to period based on, among other
factors, market movements and changes in customer contract positions. xe manages counterparty credit risk (the risk that
counterparties will default and not make payments according to the terms of the agreements) on an individual counterparty
basis. It mitigates this risk by entering into contracts with collateral posting requirements and/or by performing financial
assessments prior to contract execution, conducting periodic evaluations of counterparty performance and maintaining a
diverse portfolio of qualified counterparties. xe does not expect any significant losses from counterparty defaults.
The aggregate equivalent U.S. dollar notional amounts of foreign currency derivative customer contracts held by the
Company in its xe operations as of December 31, 2024 and 2023, was respectively $0.9 billion and $1.1 billion. The
significant majority of customer contracts are written in major currencies such as the euro, U.S. dollar, British pound,
Australian dollar and New Zealand dollar.
The following table summarizes the fair value of the derivative instruments as recorded in the Consolidated Balance Sheets
as of the dates below:
Asset Derivatives
Liability Derivatives
Fair Value
Fair Value
(in millions)
Balance
Sheet
Location
December
31, 2024
December
31, 2023
Balance
Sheet
Location
December
31, 2024
December
31, 2023
Derivatives not designated as hedging
instruments
Foreign currency exchange contracts
Other
current
assets
$
53.1 $
50.0
Other
current
liabilities $
(53.7 ) $
(39.1 )
Euronet | 2024 Annual Report
104
Balance Sheet Presentation
The following tables summarize the gross and net fair value of derivative assets and liabilities as of December 31,
2024 and 2023 (in millions):
Offsetting of Derivative Assets
As of December 31, 2024
Gross
Amounts of
Recognized
Assets
Gross
Amounts
Offset in the
Consolidated
Balance Sheet
Net Amounts
Presented in
the
Consolidated
Balance Sheet
Derivatives
Not Offset in
the
Consolidated
Balance Sheet
Net
Amounts
Derivatives subject to a master netting
arrangement or similar agreement
$
53.1 $
— $
53.1 $
(22.3 ) $
30.8
As of December 31, 2023
Derivatives subject to a master netting
arrangement or similar agreement
$
50.0 $
— $
50.0 $
(19.9 ) $
30.1
Offsetting of Derivative Liabilities
As of December 31, 2024
Gross
Amounts of
Recognized
Liabilities
Gross
Amounts
Offset in the
Consolidated
Balance Sheet
Net Amounts
Presented in
the
Consolidated
Balance Sheet
Derivatives
Not Offset in
the
Consolidated
Balance Sheet
Net
Amounts
Derivatives subject to a master netting
arrangement or similar agreement
$
(53.7 ) $
— $
(53.7 ) $
31.7 $
(22.0 )
As of December 31, 2023
Derivatives subject to a master netting
arrangement or similar agreement
$
(39.1 ) $
— $
(39.1 ) $
26.3 $
(12.8 )
Income Statement Presentation
The following tables summarize the location and amount of gains on derivatives in the Consolidated Statements of
Operations for the years ended December 31, 2024, 2023 and 2022:
Amount of Gain (Loss) Recognized in
Income on Derivative Contracts (a)
Location of Gain (Loss)
Recognized in Income on
Derivative Contracts
Year Ended December 31,
(in millions)
2024
2023
2022
Foreign currency exchange contracts -
Ria Operations
Foreign currency exchange gain
(loss), net
$
(0.6 ) $
(1.7 ) $
(0.3 )
(a) The Company enters into derivative contracts such as foreign currency exchange forwards and cross-currency swaps as
part of its xe operations. These derivative contracts are excluded from this table as they are part of the broader disclosure of
foreign currency exchange revenues for this business discussed above.
See Note 19, Financial Instruments and Fair Value Measurements, for the determination of the fair values of derivatives.
Borderless By Design
105
(14) LEASES
The Company enters into operating leases for ATM sites, office spaces, retail stores and equipment. The Company's finance
leases are immaterial. Right of use assets and lease liabilities are recognized at the lease commencement date based on the
present value of the lease payments over the lease terms.
The present value of lease payments is determined using the incremental borrowing rate based on information available at the
lease commencement date. The Company recognizes lease expense for these leases on a straight-line basis over the lease
term.
Most leases include an option to renew, with renewal terms that can extend the lease terms. The exercise of lease renewal
options is at the Company’s sole discretion. The depreciable life of assets and leasehold improvements are limited by the
expected lease terms. The Company also has a unilateral termination right for most of the ATM site leases. Leases of ATM
sites with termination options exercisable within the next 12 months are excluded from the right of use lease assets and lease
liability under the short-term lease exemption as the termination options are not reasonably certain not to be exercised.
Payments for ATM site leases with termination options subject to the short-term lease exemption are expensed in the period
incurred. The short-term lease expense for 2024 reasonably reflects the Company’s short-term lease commitments. Certain of
the Company's lease agreements include variable rental payments based on revenues generated from the use of the leased
location and certain leases include rental payments adjusted periodically for inflation. Variable lease payments are recognized
when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs and are
excluded from the right of use assets and lease liabilities balances. The lease agreements do not contain any material residual
value guarantees or material restrictive covenants.
Future minimum lease payments
Future minimum lease payments under the operating leases (with initial lease terms in excess of one year) as of December
31, 2024 are:
As of December 31, 2024
Maturity of Lease Liabilities (in millions)
Operating Leases (1)
2025
$
45.5
2026
34.9
2027
24.1
2028
14.3
2029
8.9
Thereafter
12.7
Total lease payments
140.4
Less: imputed interest
(8.6 )
Present value of lease liabilities
$
131.8
(1) Operating lease payments reflect the Company's current fixed obligations under the operating lease agreements.
Euronet | 2024 Annual Report
106
Lease expense recognized in the Consolidated Statements of Operations is summarized as follows:
Lease Expense (in millions)
Income Statement
Classification
Year ended
December 31,
2024
Year ended
December 31,
2023
Year ended
December 31,
2022
Operating lease expense
Selling, general and
administrative and Direct
operating costs
$
51.6 $
50.1 $
51.0
Variable lease expense
Selling, general and
administrative and Direct
operating costs
160.2
164.3
142.6
Total lease expense
$
211.8 $
214.4 $
193.6
Other information about lease amounts recognized in the consolidated financial statements is summarized as follows:
Lease Term and Discount Rate of Operating Leases
As of
December 31,
2024
As of
December 31,
2023
Weighted- average remaining lease term (years)
4.1
4.3
Weighted- average discount rate
3.08 %
2.49 %
The following table presents supplemental cash flow and non-cash information related to leases:
Other Information (in millions)
Year ended
December 31,
2024
Year ended
December 31,
2023
Year ended
December 31,
2022
Cash paid for amounts included in the measurement of lease liabilities (a)
$
51.5 $
49.9 $
49.7
Supplemental non-cash information on lease liabilities arising from obtaining
ROU assets:
ROU assets obtained in exchange for new operating lease liabilities
$
51.0 $
49.9 $
50.0
(a) Included in Net cash provided by operating activities on the Company's Consolidated Statements of Cash Flows.
Borderless By Design
107
(15) INCOME TAXES
The sources of income before income taxes for the years ended December 31, 2024, 2023 and 2022 are presented as follows:
Year Ended December 31,
(in millions)
2024
2023
2022
Income before taxes:
United States
$
(29.7 ) $
7.0 $
(12.5 )
Foreign
478.6
393.4
335.1
Total income before income taxes
$
448.9 $
400.4 $
322.6
The Company's income tax expense for the years ended December 31, 2024, 2023 and 2022 consisted of the following:
Year Ended December 31,
(in millions)
2024
2023
2022
Current tax expense (benefit):
U.S.
$
4.3 $
5.1 $
3.9
Foreign
118.6
102.9
80.3
Total current
122.9
108.0
84.2
Deferred tax expense (benefit):
U.S.
6.1
12.2
(7.3 )
Foreign
13.6
0.7
15.0
Total deferred
19.7
12.9
7.7
Total tax expense
$
142.6 $
120.9 $
91.9
The following is a reconciliation of the federal statutory income tax rates of 21% to the effective income tax rate for the years
ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
(dollar amounts in millions)
2024
2023
2022
U.S. federal income tax expense at applicable statutory rate
$
94.3 $
84.1 $
67.7
Tax effect of:
State income tax expense at statutory rates, net of U.S. federal income tax
3.5
3.7
3.7
Non-deductible expenses
4.1
2.9
1.7
Share-based compensation
3.9
4.0
1.9
Other permanent differences
8.0
0.9
(0.2 )
Difference between U.S. federal and foreign tax rates
21.8
16.7
13.9
Provision in excess of statutory rates
(0.5 )
8.3
3.6
Change in federal and foreign valuation allowance
1.2
2.7
(7.7 )
GILTI, net of tax credits
12.9
5.9
9.8
Tax credits
(6.0 )
(9.2 )
(0.7 )
Other
(0.6 )
0.9
(1.8 )
Total income tax expense
$
142.6 $
120.9 $
91.9
Effective tax rate
31.77 %
30.19 %
28.47 %
Euronet | 2024 Annual Report
108
We calculate our provision for federal, state and foreign income taxes based on current tax law.
The tax effect of temporary differences and carryforwards that give rise to deferred tax assets and liabilities from continuing
operations are as follows:
As of December 31,
(in millions)
2024
2023
Deferred tax assets:
Tax loss carryforwards
$
44.8 $
59.3
Share-based compensation
15.0
15.8
Accrued expenses
19.3
20.1
Property and equipment
6.8
8.1
Goodwill and intangible amortization
9.3
11.2
Contract costs
0.7
3.5
Intercompany notes
6.6
16.7
Accrued revenue
0.7
4.0
Tax credits
61.6
58.1
Lease accounting
34.3
49.2
Foreign exchange
8.8
2.4
Capitalized research and development
10.8
6.2
Other
6.3
6.0
Total deferred tax assets
225.0
260.6
Valuation allowance
(75.0 )
(90.7 )
Total deferred tax assets, net of valuation allowance
150.0
169.9
Deferred tax liabilities:
Intangible assets related to purchase accounting
(28.2 )
(15.0 )
Goodwill and intangible amortization
(31.8 )
(31.9 )
Accrued expenses
(15.3 )
(25.7 )
Intercompany notes
(5.8 )
(12.9 )
Accrued interest
(42.6 )
(34.4 )
Capitalized research and development
—
(0.3 )
Property and equipment
(6.9 )
(6.8 )
Accrued revenue
(1.7 )
(2.8 )
Lease accounting
(34.3 )
(49.2 )
Foreign exchange
(14.7 )
(4.0 )
Partnership Investment
(7.6 )
(3.1 )
Other
(7.6 )
(2.5 )
Total deferred tax liabilities
(196.5 )
(188.6 )
Net deferred tax liabilities
$
(46.5 ) $
(18.7 )
Net deferred tax assets of $25.3 million and $28.3 million as of December 31, 2024 and 2023, respectively, are recorded
within "Other assets" on the Consolidated Balance Sheet.
Borderless By Design
109
Subsequently recognized tax benefits relating to the valuation allowance for deferred tax assets as of December 31, 2024 are
expected to be allocated to income taxes in the Consolidated Statements of Operations. As of December 31, 2024, and 2023,
the Company's foreign tax loss carryforwards were $183.3 million and $247.4 million, respectively, and U.S. state tax loss
carryforwards were $81.0 million and $68.4 million, respectively.
As of December 31, 2024 and 2023, the Company has U.S. foreign tax credit carryforwards of $57.1 million and
$53.6 million respectively, which are largely not expected to be utilized in future periods.
In assessing the Company's ability to realize deferred tax assets, management considers whether it is more likely than not that
some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent
upon the generation of future taxable income during the periods in which those temporary differences become deductible.
Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning
strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable
income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the
Company will realize the benefits of these deductible differences, net of the existing valuation allowances, as of December
31, 2024.
As of December 31, 2024, the Company had foreign tax net operating loss carryforwards of $183.3 million, which will expire
as follows:
(in millions)
Gross
Tax Effected
Year ending December 31,
2025
$
3.7 $
0.9
2026
7.8
1.9
2027
3.1
0.8
2028
4.6
1.1
2029
5.2
1.2
Thereafter
14.5
3.5
Unlimited
144.4
31.7
Total
$
183.3 $
41.1
In addition, the Company's state tax net operating loss carryforwards of $81.0 million will expire periodically from
2025 through 2044, U.S. foreign tax credit carryforwards of $57.1 million will expire periodically from 2027 through
2034 and U.S. federal research and expenditure credit carryforwards of $3.8 million will expire periodically from 2034
through 2043.
The Company has not provided additional deferred taxes with respect to items such as certain foreign exchange gains or
losses, foreign withholding taxes or additional state taxes, if any, on undistributed earnings attributable to foreign subsidiaries
and it is not practical to determine the income tax liability that would be payable if such earnings were not reinvested
indefinitely. Gross undistributed earnings reinvested indefinitely in foreign subsidiaries aggregated approximately $2,749.5
million as of December 31, 2024.
Based upon the current OECD rules and administrative guidance, as well as the related legislation of those countries which
has been enacted to date, the Company does not anticipate being subject to material minimum foreign taxes. The Company is
continuing to monitor the potential impact of the Pillar Two proposals and developments on our Consolidated Financial
Statements and related disclosures, including eligibility for any transitional safe harbor rules.
Euronet | 2024 Annual Report
110
Accounting for uncertainty in income taxes
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2024
and 2023 is as follows:
Year Ended December 31,
(in millions)
2024
2023
Beginning balance
$
51.8 $
42.8
Additions based on tax positions related to the current year
6.2
7.2
Additions for tax positions of prior years
1.4
2.6
Reductions for tax positions of prior years
(4.0 )
(0.1 )
Settlements
(0.2 )
-
Statute of limitations expiration
(6.6 )
(0.7 )
Ending balance
$
48.6 $
51.8
As of December 31, 2024 and 2023, approximately $36.4 million and $38.2 million, respectively, of the unrecognized tax
benefits would impact the Company's provision for income taxes and effective income tax rate, if recognized. Total estimated
accrued interest and penalties related to the underpayment of income taxes was $7.1 million and $10.0 million as of
December 31, 2024 and 2023, respectively. The following income tax years remain open in the Company's major
jurisdictions as of December 31, 2024:
Jurisdictions
Periods
U.S. (Federal)
2014 through 2024
Germany
2016 through 2024
Greece
2019 through 2024
Spain
2016 through 2024
U.K.
2019 through 2024
It is reasonably possible that the balance of gross unrecognized tax benefits could significantly change within the next twelve
months as a result of the resolution of audit examinations and expirations of certain statutes of limitations and, accordingly,
materially affect the Company's operating results. At this time, it is not possible to estimate the range of change due to the
uncertainty of potential outcomes.
(16) VALUATION AND QUALIFYING ACCOUNTS
Trade accounts receivable and accounts receivable balances included within the settlement assets are stated net of credit
losses. Historically, the Company has not experienced significant write-offs. The Company records credit losses when it is
probable that the accounts receivable balance will not be collected.
The following table provides a summary of the credit loss balances and activity for the years ended December 31, 2024,
2023 and 2022:
Year Ended December 31,
(in millions)
2024
2023
2022
Beginning balance-credit losses
$
39.3 $
37.0 $
31.8
Additions-charged to expense
18.7
13.3
16.3
Amounts written off
(23.9 )
(9.8 )
(12.9 )
Other (primarily changes in foreign currency exchange rates)
1.8
(1.2 )
1.8
Ending balance-credit losses
$
35.9 $
39.3 $
37.0
Borderless By Design
111
(17) STOCK PLANS
The Company has share-based compensation plans ("SCP") that allow it to grant restricted shares, or options to purchase
shares, of common stock to certain current and prospective key employees, directors, and consultants of the Company. These
awards generally vest over periods ranging from three to four years from the date of grant. Stock options are generally
exercisable during the shorter of a ten-year term or the term of employment with the Company. With the exception of certain
awards made to the Company's employees in Germany, Singapore and Malaysia, awards under the SCP are settled through
the issuance of new shares under the provisions of the SCP. For Company employees in Germany, Singapore and Malaysia,
certain awards are settled through the issuance of treasury shares, which also reduces the number of shares available for
future issuance under the SCP. As of December 31, 2024, the Company has approximately 2.8 million in total shares
remaining available for issuance under the SCP.
Share-based compensation expense was $43.9 million, $53.7 million, and $44.1 million for the years ended December 31,
2024, 2023 and 2022, respectively, and was recorded in salaries and benefits expense in the accompanying Consolidated
Statements of Operations. The Company recorded a tax benefit of $2.0 million, $4.0 million, and $3.4 million during the
years ended December 31, 2024, 2023 and 2022, respectively, for the portion of this expense that relates to foreign tax
jurisdictions in which an income tax benefit is expected to be derived.
Stock options
Summary stock options activity is presented in the table below:
Number of
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
(years)
Aggregate
Intrinsic
Value
(millions)
Balance at December 31, 2023 (2,211,566 shares exercisable)
5,118,992 $
103.65
Granted
562,785 $
104.28
Exercised
(258,606 ) $
105.05
Forfeited/Canceled
(260,118 ) $
135.60
Expired
(1,389 ) $
149.99
Balance at December 31, 2024
5,161,664 $
104.10
6.3 $
33.8
Exercisable at December 31, 2024
3,740,436 $
106.25
5.3 $
25.1
Vested and expected to vest at December 31, 2024
5,047,966 $
103.61
6.5 $
26.7
Euronet | 2024 Annual Report
112
Options outstanding that are expected to vest are net of estimated future forfeitures. The Company received cash of $14.9
million, $5.4 million, and $5.9 million in connection with stock options exercised in the years ended December 31, 2024,
2023 and 2022, respectively. The intrinsic value of these options exercised was $10.7 million, $6.3 million, and $12.8 million
in the years ended December 31, 2024, 2023 and 2022, respectively. As of December 31, 2024, unrecognized compensation
expense related to nonvested stock options that are expected to vest totaled $48.3 million and will be recognized over the
next 4 years, with an overall weighted-average period of 3 years. The following table provides the fair value of options
granted under the SCP during 2024, 2023 and 2022, together with a description of the assumptions used to calculate the fair
value using the Black-Scholes-Merton option-pricing model or Monte Carlo simulation model:
Year ended December 31,
2024
2023
2022
Volatility
42.36 %
42.5 %
42.4 %
Risk-free interest rate - weighted average
4.09 %
4.23 %
3.97 %
Risk-free interest rate - range
4.09% to
4.31%
4.23 %
3.97% to
3.45 %
Dividend yield
— %
— %
— %
Assumed forfeitures
8.0 %
8.0 %
8.0 %
Expected lives
5.0 years
5.0 years
4.6 years
Weighted-average fair value (per option)
$
43.42 $
39.43 $
37.15
During 2024, the Company granted 562,785 options to executive officers, which vest evenly over a four-year term upon the
achievement of a 10% increase over the share price on the date of grant for 30 consecutive days. During 2023, the Company
granted approximately 596,127 options to executive officers, which vest evenly over a five-year term upon the achievement
of a 10% increase over the share price on the date of grant for 30 consecutive days. During 2022, the Company granted
approximately 411,648 options to executive officers, which vest evenly over a four-year term upon the achievement of a 10%
increase over the share price on the date of grant for 30 consecutive days.
Restricted stock
Restricted stock awards vest based on the achievement of time-based service conditions and/or performance-based
conditions. For certain awards, vesting is based on the achievement of more than one condition of an award with multiple
time-based and/or performance-based conditions. The Company records related expenses for these awards that have
performance-based conditions over the vesting period when the achievement of the award is probable of occurrence.
Summary restricted stock activity is presented in the table below:
Number
of Shares
Weighted
Average
Grant Date
Fair Value
Per Share
Nonvested at December 31, 2023
766,702 $
104.65
Granted
322,899 $
105.08
Vested
177,101 $
116.53
Forfeited
83,145 $
135.07
Nonvested at December 31, 2024
829,355 $
97.11
Borderless By Design
113
The fair value of shares vested in the years ended December 31, 2024, 2023 and 2022 was $18.9 million, $14.8 million, and
$9.3 million, respectively. As of December 31, 2024, there was $20.4 million of total unrecognized compensation cost related
to unvested time-based restricted stock, which is expected to be recognized over a weighted-average period of 3.1 years. As
of December 31, 2024, there was $31.6 million of total unrecognized compensation costs related to unvested performance-
based restricted stock, which is expected to be recognized based on Company performance over a weighted-average period of
1.9 years. The weighted average grant date fair value of restricted stock granted during the years ended December 31, 2024,
2023 and 2022 was $105.08, 92.76 and $91.47 per share, respectively.
(18) BUSINESS SEGMENT INFORMATION
Euronet's Chief Executive Officer (CEO) is the Chief Operating Decision Maker (CODM) and is responsible for assessing
performance and making resource allocation decisions across the Company's operating segments. The CODM evaluates
segment performance primarily based on financial metrics such as revenue, operating income, and other key performance
indicators. In making resource allocation decisions, the CODM reviews segment operating income and revenue on a monthly
basis to assess profitability and efficiency across segments. Additionally, the CODM considers forecast-to-actual variances in
revenue, operating income, and key performance indicators as part of the forecasting process. These measures are used to
guide decisions related to capital investments, personnel allocation, and strategic initiatives across the Company’s segments.
The CODM also evaluates segment-level profitability and return on assets when making long-term investment decisions and
assessing segment performance relative to strategic goals. The accounting policies of the segments are the same as those
described in the summary of significant accounting policies.
Euronet's reportable operating segments have been determined in accordance with ASC Topic 280, Segment Reporting
("ASC 280"). The Company currently operates in the following three reportable operating segments:
1) Through the EFT Processing Segment, the Company processes transactions for a network of ATMs and POS
terminals across Europe, the Middle East, Africa, Asia Pacific and North America. The Company provides comprehensive
electronic payment solutions consisting of ATM cash withdrawal services, ATM network participation, outsourced ATM and
POS management solutions, credit, debit and prepaid card outsourcing, dynamic currency conversion, domestic and
international surcharges and other value-added services. Through this segment, the Company also offers a suite of integrated
electronic financial transaction software solutions for electronic payment and transaction delivery systems.
2) Through the epay Segment, the Company provides distribution, processing and collection services for prepaid mobile
airtime and other electronic payment products in Europe, the Middle East, Asia Pacific, the United States, and South
America.
3) Through the Money Transfer Segment, the Company provides global money transfer services under the brand names
Ria, AFEX, IME, and xe. Ria, AFEX, and IME provide global consumer-to-consumer money transfer services through a
network of sending agents, Company-owned stores and Company-owned websites, disbursing money transfers through a
worldwide correspondent network. xe offers account-to-account international payment services to high-income individuals
and small-to-medium sized businesses. xe is also a provider of foreign currency exchange information. The Company also
offers customers bill payment services, payment alternatives such as money orders and prepaid debit cards, comprehensive
check cashing services, foreign currency exchange services and mobile top-up. Furthermore, xe provides cash management
solutions and foreign currency risk management services to small-to-medium sized businesses.
In addition, the Company accounts for non-operating activity, share-based compensation expense, certain intersegment
eliminations and the costs of providing corporate and other administrative services in its administrative division, "Corporate
Services, Eliminations and Other." These services are not directly identifiable with the Company's reportable operating
segments.
Euronet | 2024 Annual Report
114
The following tables present the Company's results for the years ended December 31, 2024, 2023 and 2022:
For the Year Ended December 31, 2024
(in millions)
EFT
Processing
epay
Money
Transfer
Corporate
Services,
Eliminations
and Other Consolidated
Total revenues
$
1,161.2 $ 1,150.5 $ 1,686.5 $
(8.4 ) $
3,989.8
Operating expenses:
Direct operating costs
605.4
872.7
919.7
(8.5 )
2,389.3
Salaries and benefits
146.8
102.0
333.4
68.0
650.2
Selling, general and administrative
55.1
38.6
206.4
15.2
315.3
Depreciation and amortization
97.9
7.3
26.0
0.6
131.8
Total operating expenses
905.2
1,020.6
1,485.5
75.3
3,486.6
Operating income (expense)
$
256.0 $
129.9 $
201.0 $
(83.7 ) $
503.2
Other income (expense)
Interest income
23.8
Interest expense
(80.5 )
Foreign currency exchange loss, net
(19.1 )
Other gains, net
21.5
Total other expense, net
(54.3 )
Income before income taxes
$
448.9
Segment assets as of December 31, 2024
$
2,762.2 $ 1,073.7 $ 1,745.5 $
253.1 $
5,834.5
Borderless By Design
115
For the Year Ended December 31, 2023
(in millions)
EFT
Processing
epay
Money
Transfer
Corporate
Services,
Eliminations
and Other Consolidated
Total revenues
$
1,058.3 $
1,082.4 $
1,555.2 $
(7.9 ) $
3,688.0
Operating expenses:
Direct operating costs
572.1
819.1
839.5
(7.9 )
2,222.8
Salaries and benefits
126.5
91.1
310.5
74.8
602.9
Selling, general and administrative
58.8
39.1
188.8
10.1
296.8
Depreciation and amortization
94.6
6.9
31.0
0.4
132.9
Total operating expenses
852.0
956.2
1,369.8
77.4
3,255.4
Operating income (expense)
$
206.3 $
126.2 $
185.4 $
(85.3 ) $
432.6
Other income (expense)
Interest income
15.2
Interest expense
(55.6 )
Foreign currency exchange gain, net
8.0
Other gains, net
0.2
Total other expense, net
(32.2 )
Income before income taxes
$
400.4
Segment assets as of December 31, 2023
$
2,442.0 $
1,204.9 $
1,921.2 $
326.3 $
5,894.4
Euronet | 2024 Annual Report
116
For the Year Ended December 31, 2022
(in millions)
EFT
Processing
epay
Money
Transfer
Corporate
Services,
Eliminations
and Other Consolidated
Total revenues
$
924.2 $
997.9 $
1,444.5 $
(7.8 ) $
3,358.8
Operating expenses:
Direct operating costs
475.8
753.2
796.9
(7.7 )
2,018.2
Salaries and benefits
111.9
81.8
277.0
63.5
534.2
Selling, general and administrative
57.1
36.0
182.2
9.8
285.1
Depreciation and amortization
95.4
6.2
33.9
0.4
135.9
Total operating expenses
740.2
877.2
1,290.0
66.0
2,973.4
Operating income (expense)
$
184.0 $
120.7 $
154.5 $
(73.8 ) $
385.4
Other income (expense)
Interest income
2.0
Interest expense
(37.5 )
Foreign currency exchange loss, net
(28.2 )
Other gains, net
0.9
Total other expense, net
(62.8 )
Income before income taxes
$
322.6
Segment assets as of December 31, 2022
$
2,150.7 $
1,173.3 $
1,795.8 $
283.8 $
5,403.6
Borderless By Design
117
Total revenues for the years ended December 31, 2024, 2023 and 2022, and property and equipment and total assets as of
December 31, 2024 and 2023, summarized by geographic location, were as follows:
Revenues
Property and
Equipment, net
Total Assets
For the year ended December 31, as of December 31, as of December 31,
(in millions)
2024
2023
2022
2024
2023
2024
2023
United States
$
977.4 $
898.5 $
830.8 $
69.3 $
63.0 $ 1,060.1 $ 1,198.5
Germany
706.3
691.5
644.5
22.7
29.0
768.7
760.2
Spain
259.2
243.4
211.7
31.2
40.8
365.4
375.5
United Kingdom
164.7
152.5
144.7
6.9
8.7
385.9
441.3
Italy
196.8
185.8
160.7
11.2
14.9
225.7
229.9
Poland
124.4
114.9
98.1
41.9
28.8
381.1
280.7
India
206.4
170.3
188.5
23.8
28.5
248.9
241.4
France
209.9
198.6
173.8
8.2
8.6
151.8
165.0
Greece
237.0
205.8
161.0
25.8
19.6
563.4
653.9
Malaysia
83.9
51.9
47.6
9.5
4.3
279.9
98.5
Australia
59.0
53.5
42.4
1.0
1.9
93.0
85.6
New Zealand
48.7
51.6
61.6
4.2
4.0
166.4
190.7
Netherlands
73.6
62.8
54.6
4.1
5.0
167.7
170.9
Canada
68.9
70.1
66.4
0.7
0.7
97.6
123.7
Brazil
50.6
55.2
51.4
0.2
0.3
26.9
38.2
Other
523.0
481.6
421.0
69.0
74.0
852.0
840.4
Total foreign
3,012.4
2,789.5
2,528.0
260.4
269.1
4,774.4
4,695.9
Total
$ 3,989.8 $ 3,688.0 $ 3,358.8 $
329.7 $
332.1 $ 5,834.5 $ 5,894.4
(19) FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Concentrations of credit risk
The Company's credit risk primarily relates to trade accounts receivable and cash and cash equivalents. The EFT Processing
Segment's customer base includes the most significant international card organizations and certain banks in its markets. The
epay Segment's customer base is diverse and includes several major retailers and/or distributors in markets that they operate.
The Money Transfer Segment trade accounts receivable is primarily due from independent agents that collect cash from
customers on the Company's behalf and generally remit the cash within one week. The Company performs ongoing
evaluations of its customers' financial condition and limits the amount of credit extended, or purchases credit enhancement
protection, when deemed necessary, but generally requires no collateral. See Note 16, Valuation and Qualifying Accounts, to
the Consolidated Financial Statements for further disclosure.
The Company invests excess cash not required for use in operations primarily in high credit quality, short-term duration
securities that the Company believes bear minimal risk.
Euronet | 2024 Annual Report
118
Fair value measurements
Fair value measurements used in the consolidated financial statements are based upon the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair
value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from
independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed
based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three
broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities
(Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described
below:
•
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.
•
Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not
active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of
the assets or liabilities.
•
Level 3 – Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its
own assumptions about the inputs that market participants would use in pricing.
The following table details financial assets measured and recorded at fair value on a recurring basis:
As of December 31, 2024
(in millions)
Balance Sheet
Classification
Level 1
Level 2
Level 3
Total
Assets
Foreign currency exchange contracts
Other current
assets
$
— $
53.1 $
— $
53.1
Convertible notes receivable
Convertible notes
receivable
—
—
56.3
56.3
Marketable securities
Other assets
26.7
—
—
26.7
Liabilities
Foreign currency exchange contracts
Other current
liabilities
$
— $
(53.7 ) $
— $
(53.7 )
As of December 31, 2023
(in millions)
Balance Sheet
Classification
Level 1
Level 2
Level 3
Total
Assets
Foreign currency exchange contracts
Other current
assets
$
— $
50.0 $
— $
50.0
Liabilities
Foreign currency exchange contracts
Other current
liabilities
$
— $
(39.1 ) $
— $
(39.1 )
The carrying amounts of cash and cash equivalents, trade accounts receivable, trade accounts payable and short-term debt
obligations are approximate fair values due to their short maturities. The carrying values of the Company's revolving credit
agreements approximate fair values because interest is based on SOFR that resets at various intervals of less than one year.
The Company estimates the fair value of the Convertible Notes and Senior Notes using quoted prices in inactive markets for
identical liabilities (Level 2). As of December 31, 2024, the fair values of the Convertible Notes and Senior Notes were
$515.4 million and $604.8 million, respectively, with carrying values of $525.0 million and $621.5 million, respectively.
Borderless By Design
119
(20) LITIGATION AND CONTINGENCIES
From time to time, the Company is a party to legal or regulatory proceedings arising in the ordinary course of the Company's
business. In accordance with U.S. GAAP, the Company records a liability when it is both probable that a liability has been
incurred and the amount of the loss can be reasonably estimated. Currently, there are no legal proceedings or regulatory
findings which are both probable that a liability has been incurred and can be reasonably estimated that management believes,
either individually or in the aggregate, would have a material adverse effect on the Company's consolidated financial
condition or results of operations. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of
negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case.
During July 2024, the Company received an adverse judicial decision related to withholding taxes on certain agency
relationships in Italy within the Money Transfer Segment, which the Company has appealed. In January 2025, the Company
received a positive judicial decision in the same court related to the same issue but corresponding to a different taxable
period. The Company completed an assessment and concluded that it is reasonably possible that a liability has been incurred,
but not probable. The principal amount of the agent-based withholding tax could be approximately $16.5 million for all open
periods.
(21) COMMITMENTS
As of December 31, 2024, the Company had $69.9 million of stand-by letters of credit/bank guarantees issued on its behalf,
of which $3.0 million are collateralized by cash deposits held by the respective issuing banks.
Under certain circumstances, the Company grants guarantees in support of the obligations of subsidiaries. As of December
31, 2024, the Company granted off balance sheet guarantees for cash in various ATM networks amounting to $10.3 million
over the terms of the cash supply agreements and performance guarantees amounting to approximately $39.6 million over the
terms of the agreements with the customers.
From time to time, the Company enters into agreements with commercial counterparties that contain indemnification
provisions, the terms of which may vary depending on the negotiated terms of each respective agreement. The amount of
such potential obligations is generally not stated in the agreements. Euronet's liability under such indemnification provisions
may be mitigated by relevant insurance coverage and may be subject to time and materiality limitations, monetary caps and
other conditions and defenses. Such indemnification obligations include the following:
• In connection with contracts with financial institutions in the EFT Processing Segment, the Company is responsible for
damage to ATMs and theft of ATM network cash that, generally, is not recorded on the Company's Consolidated Balance
Sheets. As of December 31, 2024, the balance of such cash used in the Company's ATM networks for which the Company
was responsible was approximately $416.3 million. The Company maintains insurance policies to mitigate this exposure;
• In connection with contracts with certain customers the Company is responsible for losses suffered by those customers and
other parties as a result of the breach of its computer systems, including in particular, losses arising from fraudulent
transactions made using information stolen through its processing systems. The Company maintains insurance policies to
mitigate this exposure;
• In connection with the license of proprietary systems to customers, the Company provides certain warranties and
infringement indemnities to the licensee, which generally warrant that such systems do not infringe on intellectual property
owned by third parties and that the systems will perform in accordance with their specifications;
Euronet | 2024 Annual Report
120
• Euronet has entered into purchase and service agreements with vendors and consulting agreements with providers of
consulting services, pursuant to which the Company has agreed to indemnify certain of such vendors and consultants,
respectively, against third-party claims arising from the Company's use of the vendor's product or the services of the
vendor or consultant;
• In connection with acquisitions and dispositions of subsidiaries, operating units and business assets, the Company has
entered into agreements containing indemnification provisions, which can be generally described as follows: (i) in
connection with acquisitions of operating units or assets made by Euronet, the Company has agreed to indemnify the seller
against third party claims made against the seller relating to the operating unit or asset and arising after the closing of the
transaction, and (ii) in connection with dispositions made by Euronet, Euronet has agreed to indemnify the buyer against
damages incurred by the buyer due to the buyer's reliance on representations and warranties relating to the subject
subsidiary, operating unit or business assets in the disposition agreement if such representations or warranties were untrue
when made; and
• Euronet has entered into agreements with certain third parties, including banks that provide fiduciary and other services to
Euronet or to the Company's benefit plans. Under such agreements, the Company has agreed to indemnify such service
providers for third-party claims relating to carrying out their respective duties under such agreements.
The Company is also required to meet minimum capitalization and cash requirements of various regulatory authorities in the
jurisdictions in which the Company has money transfer operations. The Company has obtained surety bonds in compliance
with money transfer licensing requirements of the applicable governmental authorities.
To date, the Company is not aware of any significant claims made by the indemnified parties or third parties to guarantee
agreements with the Company and, accordingly, no liabilities were recorded as of December 31, 2024 or 2023.
(22) RELATED PARTY TRANSACTIONS
The Company leases an airplane from a company owned by Mr. Michael J. Brown, Euronet's Chief Executive Officer,
President, and Chairman of the Board of Directors. The airplane is leased for business use on a per flight hour basis at
competitive commercial rates with no minimum usage requirement. Euronet incurred expenses of $0.3 million, $0.2 million,
and $0.2 million during the years ended December 31, 2024, 2023 and 2022, respectively, for the use of this airplane.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Our executive management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of
the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the Exchange Act as
of December 31, 2024. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded
that the design and operation of these disclosure controls and procedures were effective as of such date to provide reasonable
assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized
and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated
and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to
allow timely decisions regarding required disclosures.
CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING
There has been no change in our internal control over financial reporting during the fourth quarter of 2024 that has materially
affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Borderless By Design
121
MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
To the Stockholders of Euronet Worldwide, Inc.:
Management is responsible for establishing and maintaining an effective internal control over financial reporting as this term
is defined under Rule 13a-15(f) of the Securities Exchange Act of 1934 and has made organizational arrangements providing
appropriate divisions of responsibility and has established communication programs aimed at assuring that its policies,
procedures and principles of business conduct are understood and practiced by its employees. All internal control systems, no
matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide
only reasonable assurance with respect to financial statement preparation and presentation.
Management of Euronet Worldwide, Inc. assessed the effectiveness of the Company's internal control over financial
reporting as of December 31, 2024. In making this assessment, it used the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013). Based on these criteria and
our assessment, we have determined that, as of December 31, 2024, the Company's internal control over financial reporting
was effective.
The effectiveness of the Company's internal control over financial reporting as of December 31, 2024, has been audited by
KPMG LLP, an independent registered public accounting firm, as stated in their audit report, included herein.
/s/ Michael J. Brown
Michael J. Brown
Chief Executive Officer
/s/ Rick L. Weller
Rick L. Weller
Chief Financial Officer and Chief Accounting Officer
February 25, 2025
ITEM 9B. OTHER INFORMATION
During the fiscal quarter ended December 31, 2024, none of the Company’s directors or "officers," as defined in Rule 16a-
1(f) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), adopted or terminated a "Rule 10b5-1 trading
arrangement" or a "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K.
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
None.
Euronet | 2024 Annual Report
122
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information under “Election of Directors,” “Delinquent Section 16(a) Reports” (if applicable), "Employee and Director
Stock Ownership; Insider Trading and Hedging Policy" and “Meetings and Committees of the Board of Directors” in the
Proxy Statement for the 2025 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after
December 31, 2024, is incorporated herein by reference. Information concerning our Code of Business Conduct and Ethics
for our employees, including our Chief Executive Officer and Chief Financial Officer, is set forth under “Availability of
Reports, Certain Committee Charters, and Other Information” in Part I of this Annual Report on Form 10-K and incorporated
herein by reference. Information concerning executive officers is set forth under “Information about our Executive Officers”
in Part I of this Annual Report on Form 10-K and incorporated herein by reference.
We intend to satisfy the requirement under Item 5.05 of Form 8-K to disclose any amendments to our Code of Business
Conduct and Ethics and any waiver from a provision of our Code of Ethics by disclosing such information on a Form 8-K or
on our Website at www.euronetworldwide.com under For Investors/Corporate Governance.
ITEM 11. EXECUTIVE COMPENSATION
The information under “Compensation Tables,” “Compensation Discussion and Analysis,” “Director Compensation,”
“Compensation Committee Report” and “Compensation Committee Interlocks and Insider Participation” in the Proxy
Statement for the 2025 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days
after December 31, 2024, is incorporated herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS
The information under “Beneficial Ownership of Common Stock”, “Election of Directors” and "Compensation Tables -
Shares Issuable under Stockholder Approved Plans" in the Proxy Statement for the 2025 Annual Meeting of Stockholders,
which will be filed with the SEC no later than 120 days after December 31, 2024, is incorporated herein by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information under “Certain Relationships and Related Transactions and Director Independence” in the Proxy Statement
for the 2025 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after December 31,
2024, is incorporated herein by reference.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
The information under “Audit Matters - Fees of the Company's Independent Auditors” and - "Audit Matters - Audit
Committee Pre-Approval Policy" in the Proxy Statement for the 2025 Annual Meeting of Stockholders, which will be filed
with the SEC no later than 120 days after December 31, 2024, is incorporated herein by reference.
Borderless By Design
123
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) List of Documents Filed as Part of this Report.
1. Financial Statements
The Consolidated Financial Statements and accompanying notes, together with the report of KPMG LLP, appear in Part
II, Item 8 - Financial Statements and Supplementary Data, of this Form 10-K.
2. Schedules
None.
3. Exhibits
The exhibits that are required to be filed or incorporated by reference herein are listed in the Exhibit Index below.
EXHIBITS
Exhibit Index
Exhibit
Description
3.1
Certificate of Incorporation of Euronet Worldwide, Inc., as amended (filed as Exhibit 3.2 to the Company's
Current Report on Form 8-K filed on May 22, 2009 and incorporated by reference herein)
3.2
Certificate of Amendment to Certificate of Incorporation of Euronet Worldwide, Inc. (filed as Exhibit 3.1 to
the Company's Current Report on Form 8-K filed on May 22, 2009 and incorporated by reference herein)
3.3
Amended and Restated Certificate of Designations, Preferences and Rights of Series A Junior Participating
Preferred Stock (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed on March 29, 2013,
and incorporated herein by reference)
3.4
Amended and Restated Bylaws of Euronet Worldwide, Inc. (filed as Exhibit 3.2 to the Company's Current
Report on Form 8-K filed on February 28, 2017, and incorporated herein by reference)
4.1
Indenture, dated May 22, 2019, between Euronet Worldwide, Inc. and U.S. Bank National Association, as
trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed on May 22, 2019 and
incorporated by reference herein)
4.2
Supplemental Indenture, dated May 22, 2019, between Euronet Worldwide, Inc. and U.S. Bank National
Association, as trustee (filed as Exhibit 4.2 to the Company's Current Report on Form 8-K filed on May 22,
2019 and incorporated by reference herein)
4.3
Form of 1.375% Senior Note due 2026 (included as Exhibit A to Exhibit 4.1 above).
4.4
Indenture, dated March 18, 2019, between the Company and U.S. Bank National Association, as trustee (filed
as Exhibit 4.1 to the Company's Current Report on Form 8-K filed on March 18, 2019 and incorporated by
reference herein)
4.5
Form of 0.75% Convertible Senior Note due 2049 (included as Exhibit A to Exhibit 4.4 above)
4.6
Description of Securities (filed as Exhibit 4.6 to the Company's Annual Report on Form 10-K filed on March 3,
2020 and incorporated herein by reference.
Euronet | 2024 Annual Report
124
10.1
Form of Employee Restricted Stock Grant Agreement pursuant to Euronet Worldwide, Inc. 2006 Stock
Incentive Plan (filed as Exhibit 10.8 to the Company's Quarterly Report on Form 10-Q filed on August 4, 2006,
and incorporated by reference herein) (2)
10.2
Employment Agreement dated June 19, 2007 between Euronet Worldwide, Inc. and Kevin J. Caponecchi (filed
as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 25, 2007, and incorporated by
reference herein) (2)
10.3
Amended and Restated Employment Agreement dated April 10, 2008 between Euronet Worldwide, Inc. and
Michael J. Brown, Chairman and Chief Executive Officer (filed as Exhibit 10.3 to the Company's Quarterly
Report on Form 10-Q filed on May 9, 2008, and incorporated by reference herein) (2)
10.4
Amended and Restated Employment Agreement dated April 10, 2008 between Euronet Worldwide, Inc. and
Rick L. Weller, Executive Vice President and Chief Financial Officer (filed as Exhibit 10.4 to the Company's
Quarterly Report on Form 10-Q filed on May 9, 2008, and incorporated by reference herein) (2)
10.5
Amended and Restated Employment Agreement dated April 10, 2008 between Euronet Worldwide, Inc. and
Juan C. Bianchi, Executive Vice President and Managing Director, Money Transfer Segment (filed as Exhibit
10.6 to the Company's Quarterly Report on Form 10-Q filed on May 9, 2008, and incorporated by reference
herein) (2)
10.6
Form of Indemnification Agreement, (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed
on December 22, 2008, and incorporated by reference herein)
10.7
Euronet Worldwide, Inc. 2006 Stock Incentive Plan, as amended and restated (filed as Appendix B to the
Company's Definitive Proxy Statement filed on April 4, 2021, and incorporated by reference herein) (2)
10.8
Form of Nonqualified Stock Option Agreement, as amended, pursuant to Euronet Worldwide, Inc. 2006 Stock
Incentive Plan (filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on May 7, 2010
and incorporated by reference herein) (2)
10.9.1
Employment Agreement dated May 21, 2018 between Euronet Worldwide, Inc. and Nikos Fountas (filed as
Exhibit 10.1 to the Company's Current Report on Form 8-K filed on May 23, 2018 and incorporated by
reference herein) (2)
10.9.2
Deed of Amendment to the Service Agreement dated May 21, 2018 between Euronet Worldwide, Inc. and
Nikos Fountas (filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on August 3, 2018
and incorporated by reference herein) (2)
10.10
Bonus Compensation Agreement between Euronet Worldwide, Inc. and Nikos Fountas, Senior Vice President -
Managing Director, Europe EFT Processing Segment (filed as Exhibit 10.26 to the Company's Annual Report
on Form 10-K filed on February 25, 2011 and incorporated by reference herein) (2)
10.11
Euronet Worldwide, Inc. Employee Stock Purchase Plan, as amended (filed as Exhibit 10.18 to the Company's
Annual Report on Form 10-K filed on February 26, 2016 and incorporated by reference herein) (2)
10.12
Euronet Worldwide, Inc. Executive Annual Incentive Plan, as amended and restated (filed as Appendix B to
the Company's Definitive Proxy Statement on Form DEF 14A filed on April 8, 2016 and incorporated by
reference herein) (2)
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125
10.13
Form of Nonqualified Stock Option Agreement, as amended, pursuant to Euronet Worldwide, Inc. 2006 Stock
Incentive Plan (filed as Exhibit 10.19 to the Company's Annual Report on Form 10-K filed on March 1, 2018
and incorporated by reference herein) (2)
10.14
Form of Restricted Stock Unit Agreement, as amended, pursuant to Euronet Worldwide, Inc. 2006 Stock
Incentive Plan (filed as Exhibit 10.20 to the Company's Annual Report on Form 10-K filed on March 1, 2018
and incorporated by reference herein) (2)
10.15
Second Amended and Restated Credit Agreement dated as of December 17,
2024 among Euronet Worldwide, Inc. and certain subsidiaries, as borrowers, the lenders party thereto, Bank of
America, N.A., as administrative agent, Wells Fargo Bank, HSBC Bank USA, National Association and U.S.
Bank National Association, Fifth Third Bank, as co-syndication agents, et al. (filed as Exhibit 10.1 to the
Company's Current Report on Form 8-K filed on December 19, 2024 and incorporated by reference herein)
19.1
Policy Relating to Insider Trading and Confidentiality of Information Amended on June 11, 2020
21.1
Subsidiaries of the Registrant (1)
23.1
Consent of Independent Registered Public Accounting Firm (1)
31.1
Section 302 — Certification of Chief Executive Officer (1)
31.2
Section 302 — Certification of Chief Financial Officer (1)
32.1
Section 906 Certification of Chief Executive Officer (3)
32.2
Section 906 Certification of Chief Financial Officer (3)
97.1
Incentive Compensation Clawback Policy (1)
101
The following materials from Euronet Worldwide, Inc.’s Annual Report on Form 10-K for the year ended
December 31, 2024, formatted inline XBRL (eXtensible Business Reporting Language): (i) Consolidated
Balance Sheets at December 31, 2024 and 2023, (ii) Consolidated Statements of Operations for the years
ended December 31, 2024, 2023 and 2022, (iii) Consolidated Statements of Comprehensive (Loss) Income for
the years ended December 31, 2024, 2023 and 2022, (iv) Consolidated Statements of Changes in Equity for
the years ended December 31, 2024, 2023 and 2022, (v) Consolidated Statements of Cash Flows for the years
ended December 31, 2024, 2023 and 2022, and (vi) Notes to the Consolidated Financial Statements.
104
Cover Page Interactive Data File (contained in Exhibit 101)
___________________________
(1)
Filed herewith.
(2) Management contracts and compensatory plans and arrangements required to be filed as Exhibits pursuant to Item 15(a)
of this report.
(3) Pursuant to Item 601(b)(32) of Regulation S-K, this Exhibit is furnished rather than filed with this Form 10-K.
Euronet | 2024 Annual Report
126
PLEASE NOTE: Pursuant to the rules and regulations of the SEC, we have filed or incorporated by reference the agreements
referenced above as exhibits to this Annual Report on Form 10-K. The agreements have been filed to provide investors with
information regarding their respective terms. The agreements are not intended to provide any other factual information about
the Company or its business or operations. In particular, the assertions embodied in any representations, warranties and
covenants contained in the agreements may be subject to qualifications with respect to knowledge and materiality different
from those applicable to investors and may be qualified by information in confidential disclosure schedules not included with
the exhibits. These disclosure schedules may contain information that modifies, qualifies and creates exceptions to the
representations, warranties and covenants set forth in the agreements. Moreover, certain representations, warranties and
covenants in the agreements may have been used for the purpose of allocating risk between the parties, rather than
establishing matters as facts. In addition, information concerning the subject matter of the representations, warranties and
covenants may have changed after the date of the respective agreement, which subsequent information may or may not be
fully reflected in the Company's public disclosures. Accordingly, investors should not rely on the representations, warranties
and covenants in the agreements as characterizations of the actual state of facts about the Company or its business or
operations on the date hereof.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Euronet Worldwide, Inc.
Date: February 25, 2025
/s/ Michael J. Brown
Michael J. Brown
Chairman of the Board of Directors, Chief Executive
Officer, President and Director (principal executive
officer)
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127
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature
Title
/s/ Michael J. Brown
Michael J. Brown
February 25, 2025
Chairman of the Board of Directors, Chief Executive Officer,
President and Director (principal executive officer)
/s/ Rick L. Weller
Rick L. Weller
February 25, 2025
Chief Financial Officer and Chief Accounting Officer
(principal financial officer and principal accounting officer)
/s/ Paul S. Althasen
Paul S. Althasen
February 25, 2025
Director
/s/ Andrzej Olechowski
Andrzej Olechowski
February 25, 2025
Director
/s/ Michael N. Frumkin
Michael N. Frumkin
February 25, 2025
Director
/s/ Thomas A. McDonnell
Thomas A. McDonnell
February 25, 2025
Director
/s/ Andrew B. Schmitt
Andrew B. Schmitt
February 25, 2025
Director
/s/ M. Jeannine Strandjord
M. Jeannine Strandjord
February 25, 2025
Director
/s/ Ligia Torres Fentanes
Ligia Torres Fentanes
February 25, 2025
Director
/s/ Sergi N. Herrero
Sergi N. Herrero
February 25, 2025
Director
/s/ Sara Baack
Sara Baack
February 25, 2025
Director
/s/ Brad Sprong
Brad Sprong
February 25, 2025
Director
Euronet | 2024 Annual Report
128
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129
1) Adjusted operating income (expense) and Adjusted EBITDA are non-GAAP measures that should be considered in addition to, and not a substitute for, net income computed in
accordance with U.S. GAAP.
Adjusted operating income is defined as operating income excluding goodwill and acquired intangible asset impairments, post-acquisition adjustments, contract asset impairments,
non-cash gains, non-cash purchase accounting adjustments and non-recurring items that are considered expenses or income under U.S. GAAP.
Adjusted EBITDA is defined as operating income excluding depreciation, amortization, share-based compensation expenses, goodwill and intangible asset impairments, contract asset
impairments, post acquisition adjustments, non-cash gains, non-cash purchase accounting adjustments, and other non-operating or non-recurring items. Although these items are
considered operating costs under U.S. GAAP, these expenses primarily represent non-cash current period allocation of costs associated with long-lived assets acquired in prior periods.
Similarly, expense recorded for share-based compensation does not represent a current or future period cash cost. Adjusted EBITDA is a non-GAAP measure that should be considered
in addition to, and not as a substitute for, EBITDA computed in accordance with GAAP.
RECONCILIATION TABLE
Reconciliation of Operating Income to Adjusted
Operating Income and Adjusted EBITDA
(unaudited — in millions)
2020
2021
2022
2023
2024
Net income (loss)
$ (3.3)
$ 70.5
$ 230.7
$ 279.5
$ 306.3
Add: Income tax expense
11.5
65.1
91.9
120.9
142.6
Add: Total other expense, net
38.4
48.4
62.8
32.2
54.3
Operating income
$ 46.6
$ 184.0
$ 385.4
$ 432.6
$ 503.2
Add: Contract asset impairment
–
38.6
–
–
–
Add: Impairment charges
106.6
–
–
–
–
Less: Non-cash gain
–
–
–
(3.0)
–
Add: Non-cash purchase accounting adjustment
–
–
–
2.5
–
Less: Non-cash purchase accounting adjustment
–
–
–
–
(0.4)
Adjusted operating income
$ 153.2
$ 222.6
$ 385.4
$ 432.1
$ 502.8
Add: Depreciation and amortization
127.0
135.8
135.9
132.9
131.8
Add: Share-based compensation
22.0
36.6
44.0
53.7
43.9
Earnings before interest, taxes, depreciation, amortization, share-based
compensation, post acquisition adjustments, impairment charges, non-cash
gains, non-cash purchase accounting adjustments, and other non-operating
or non-recurring items (Adjusted EBITDA)1
$ 302.2
$ 395.0
$ 565.3
$ 618.7
$ 678.5
Reconciliation of Adjusted Earnings Per Share
(unaudited — in millions, except per share data)
2020
2021
2022
2023
2024
Net income (loss) attributable to Euronet Worldwide, Inc.
$ (3.4)
$ 70.7
$ 231.0
$ 279.7
$ 306.0
Foreign exchange loss
3.8
10.8
28.2
(8.0)
19.1
Intangible asset amortization
22.9
23.1
27.0
24.4
21.7
Share-based compensation
22.0
36.6
44.0
53.7
43.9
Goodwill and intangible asset impairment, net of minority interest
106.6
–
–
–
–
Contract asset impairment
–
38.6
–
–
–
Non-cash convertible debt accretion interest
15.3
16.0
–
–
–
Non-cash gain
–
–
–
(3.0)
–
Non-cash purchase accounting adjustment
–
–
–
2.5
(0.4)
Income tax effect of above adjustments
(7.2)
(13.8)
12.7
(3.0)
13.2
Non-cash investment gain
–
–
–
–
(20.3)
Non-cash GAAP tax benefit expense
(8.3)
16.4
(11.3)
19.7
9.9
Adjusted earnings1
$ 151.7
$ 198.4
$ 331.6
$ 366.0
$ 393.1
Adjusted earnings per share — diluted1
$ 2.82
$ 3.69
$
6.51
$
7.46
$
8.61
Diluted weighted average shares outstanding
52.7
53.5
53.5
51.6
48.1
Effect of conversion of convertible debentures
0.9
–
–
–
–
Effect of adjusted EPS dilution of convertible notes
–
–
(2.8)
(2.8)
(2.8)
Effect of unrecognized share-based compensation on diluted
shares outstanding
0.2
0.2
0.2
0.2
0.4
Adjusted diluted weighted average shares outstanding
53.8
53.7
50.9
49.0
45.7
(1) Adjusted earnings and adjusted earnings per share are non-GAAP measures that should be considered in addition to, and not as a substitute for, net income and earnings per share
computed in accordance with U.S. GAAP.
Note: Adjusted earnings per share is defined as diluted U.S. GAAP earnings per share excluding, to the extent incurred during the period, the tax-effected impacts of: a) foreign exchange
gains or losses, b) goodwill and acquired intangible asset impairment charges, c) gains or losses from the early retirement of debt, d) share-based compensation, e) acquired intangible asset
amortization, f) contract asset impairments g) non-cash interest expense, h) non-cash income tax expense, i) post acquisition adjustments, j) non-cash gains, k) non-cash purchase accounting
adjustments, and l) other non-operating or non-recurring items. Adjusted earnings per share includes shares potentially issuable in settlement of convertible bonds or other obligations, if the
assumed issuances are dilutive to adjusted earnings per share. Adjusted earnings per share represents a performance measure and is not intended to represent a liquidity measure.
130
Euronet | 2024 Annual Report
Celebrating the employees who have
powered our success for over 25 years.
Croatia
Nina Kucko
Cash Supply, Reconciliation and
Customer Services
Sanja Rozmajer
Finance Manager
France
Kristina Vizjak Tassa
Operations Manager
Germany
Michael Hofmann
Senior C++ Developer
Claudia Klein
Project Manager
Michael Rapp
3rd Level Support Engineer
Marc Ehler
Managing Director, EMEA
Andrej Zabrodsky
Director of ATM Development
Gabriele Römer
Accountant
Maren Stiehl
Special Affairs Agent
Jason Drake
Head of Global Content &
Partner Management
Markus Landrock
Managing Director, Global Issuing,
Payments & Rewards
Monika Keuchel
Team Leader Cash Management
Greece
Argyroula Katsineli
Senior Accountant
Vasilis Gikas
POS Management Officer
Elena Hatzinikolaou
Human Resources Coordinator
Hungary
Éva Judák
Senior Technical Consultant
Bálint Kollár
Manager of Application Management
Krisztina Tóvölgyi
Settlement Controller
Zoltán Kiss
EEFT IT Compute Services Senior Architect
György Kracher
IT Infrastructure Consultant
András Cser
EEFT New Platforms Knowledge Leader
Mihály Csuvár
Operations Manager
Zsolt Mizsei
AS400 Administrator
Zoltán Zsolt Dudás
Ria Business Development Manager, Hungary
Zsolt Karnis
Test Analyst
Andriy Sereda
Senior TSS Consultant
Tibor Kasza
EEFT IT Telecom Design & Delivery Manager
Ferenc Barta
Manager — Test and Implementation
Mario Arnus
Manager of EFT Business Analysis
and Design
Balázs Remetei
Senior Technical Analyst
László Rozsnyai
Senior Technical Analyst
Malaysia
Ho Ching Wee
Chief Executive Officer
Netherlands
Yana Itskovich
Country Manager The Netherlands
Poland
Marek Smolarek
Installation Manager
Piotr Adamek
Managing Director epay Poland
Cezary Dyrcz
Operations Director — Poland
Katarzyna Kwiatkowska
Sales Director
Elżbieta Turska
Accountant
Krzysztof Wyglądała
Operations Support Manager
Jadwiga Jelonek
ATM Network Development Regional Director
Maciej Malinowski
Real Estate Regional Manager
Jacek Adamski
Sales Director
Joanna Łakomiec
Reconciliation Manager
Joanna Richter
Deputy Chief Accountant
Arkadiusz Przekop
Head of ATM Network Monitoring
Spain
Jose Dominguez Campillo
Network Operations Technician
Francisco Martinez Campos Lominchar
Country Manager
Evangelos Karabasis
Regional Managing Director
United Kingdom
Nicholas Hill
Director of Trading Risk Management
Nikos Fountas
CEO, EFT EMEA Division
“As we embark on the next phase of our journey, I am excited about the
possibilities ahead. With our exceptional team, strong values and strategic
vision, I am confident that we will reach even greater heights in the years
to come. Thank you all for being an integral part of our story.“
— Michael J. Brown
Euronet Chairman, CEO and Founder
Read more in his message on page 10
EMPLOYEE RECOGNITION
Borderless By Design
131
United States
David Morris
Senior Software Architect
Mary Olsen
Senior Director of Software Development
Christopher Ring
Development Manager
James McDaniel
Customer Support Technical Analyst
Benjamin Waldron
IBM Power Systems Manager
Juan Bianchi
EVP & CEO Money Transfer Segment
Ann Elizabeth Trujillo Rudkevich
Supervisor Correspondent Oversight
Jannette Solano
Revenue Manager
Mariana Gonzalez
Payments & Settlements Assistant
Marleny Montoya
Sales Associate
Maria Magdalena Gutierrez
Sales Associate
Spencer Bishop
Customer Support Manager
Robert Brakensiek
Vice President of Implementations &
Project Services
Lourdes Alava
Store Team Lead
Michael Brown
Chairman/CEO
Joe Morgan
Development Manager
Gail Taylor
Contract Administrator
Theresa Garland
Technical Manager
Fanny Quintero
Sales Associate
James McKernan III
Senior Solution Specialist
Tony Warren
Managing Director Software
Ana Milena Cuy
Store Team Lead
Iris C Lopez
Sales Associate
Roxana Velasquez
Store Team Lead
Ana Maria Campoverde
Regional Manager
Paul Russell
Technical Manager
Dale Cook
Senior Information Specialist
Veronica Rodriguez
Manager Operations
Jose Abreu
POS Infrastructure Engineer
Maria Chavez
Network Operations Administrator
Timothy Fanning
Managing Director EFT Americas and
CEO PureCommerce
Armando Chavez
VP Retail Operations
Sandra Carrasco
Sr Supervisor Teleria
Tiffany Nguyen-Huynh
Manager IT Support
Jane Leuenberger
Contract Compliance Administrator
Maria Gallardo
Sales Associate
Karen Clements
Client Service Manager
Jose Ortiz
Territory Manager
Stephen Butcher
Director, Products & Solutions — ITM
Diamantina Ocon
Transaction Review Associate
Marlyn L Barba
Teleria Specialist
Samuel Byrd
Senior Software Architect
Maria Dolores Lopez
Regional Manager
Ruby Chong
Product Manager
Darren Baumer
Systems Analyst
Laura E Anguiano
Store Team Lead
Jovita Cruz
Leaves Administration Manager
Veronica Navarro
Credit Analyst
Angel J Palacios
Sales Associate
André Walker
Senior Technical Analyst
David Glover
Senior Software Architect
Robin Henderson
Change Management Specialist
Karina Hernandez
Teleria Lead
Maria C Alcala
Help Desk Analyst
Marlene I Salmeron
Finance Operations Assistant
Nancy N Gonzalez
Collections Lead
Bismarck E Lopez
Yubikey Specialist
Amanda Perez
Supervisor Teleria
Rickey Harrison
Project Manager
Geretta Hopson
Computer Operator
Ilsa Melina Guerrero
Manager Teleria
Ma Del Rocio Calvillo
Sales Associate
Laura Pierce
Quality Assurance Specialist
Mark Witherell
Sr. Director Professional Services
Beatriz M Sanchez
System Administrator
Kimberley Opper
Documentation Manager
Marina Alvizo
Assistant Accounts Payable
David Spickard
Director of North American Operations
Alba Nidia Gomez
Sr Supervisor Agent Compliance Reviewer
Maria Del Carmen Diaz
Teleria Specialist
Juan Ramon Alvizo
Supervisor Teleria
132
Euronet | 2024 Annual Report
LOOKING FORWARD
Annual Meeting
Euronet’s 2025 Annual Meeting of Stockholders will be held on
Wednesday, May 14, 2025, at Euronet’s corporate headquarters
in Leawood, Kansas.
Website
www.euronetworldwide.com
Forward-Looking Statements
Statements contained in this annual report that concern Euronet’s or
its management’s intentions, expectations, or predictions of future
performance, are forward-looking statements. 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 of the pandemic; the war in Ukraine and the related economic
sanctions; inflation; our ability to successfully integrate the operations
of Piraeus Merchant Services; economic conditions in specific countries
and regions; technological developments affecting the market for our
products and services; our ability to successfully introduce new products
and services; foreign currency exchange rate fluctuations; the effects
of any breach of our computer systems or those of our customers or
vendors, including our financial processing networks or those of other
third parties; interruptions in any of our systems or those of our vendors
or other third parties; our ability to renew existing contracts at profitable
rates; 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, consumer and data protection, privacy, and Second 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 transactions; changes
in our relationships with, or in fees charged by our business partners;
competition; the outcome of claims and other loss contingencies
affecting Euronet; 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. 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 release speak
only as of the date of this annual report. Except as may be required by law,
Euronet does not intend to update these forward-looking statements and
undertakes no duty to any person to provide any such update under any
circumstances. The Company regularly posts important information to the
investor relations section of its website.
Office Location
Local Currency
Amsterdam, the Netherlands
euro
Antiguo Cuscatlán, El Salvador U.S. dollar
Athens, Greece
euro
Auckland, New Zealand
New Zealand dollar
Beijing, China
yuan
Belgrade, Serbia
dinar
Berlin, Germany
euro
Billericay, United Kingdom
British pound
Bracknell, United Kingdom
British pound
Bratislava, Slovakia
euro
Brussels, Belgium
euro
Bucharest, Romania
new leu
Budapest, Hungary
forint
Buena Park, California
U.S. dollar
Cairo, Egypt
Egyptian pound
Cape Town, South Africa
rand
Copenhagen, Denmark
krone
Dakar, Senegal
West African CFA franc
Denver, Colorado
U.S. dollar
Dubai, United Arab Emirates
dirham
Dublin, Ireland
euro
Geneva, Switzerland
Swiss franc
Hamburg, Germany
euro
Houston, Texas
U.S. dollar
Istanbul, Turkey
lira
Jakarta, Indonesia
rupiah
Johannesburg, South Africa
rand
Karachi, Pakistan
Pakistan rupee
Kiev, Ukraine
hryvnia
Kracow, Poland
zloty
Kuala Lumpur, Malaysia
ringgit
Leawood, Kansas
U.S. dollar
Lisbon, Portugal
euro
Little Rock, Arkansas
U.S. dollar
London, United Kingdom
British pound
Madrid, Spain
euro
Makati City, Philippines
Philippine peso
Manama, Bahrain
dinar
Martinsreid, Germany
euro
Mexico City, Mexico
Mexican peso
Milan, Italy
euro
Milton Keynes, United Kingdom British pound
Montreal, Canada
Canadian dollar
Mumbai, India
Indian rupee
Munich, Germany
euro
Newmarket, Canada
Canadian dollar
Paris, France
euro
Prague, Czech Republic
koruna
Pune, India
Indian rupee
Rome, Italy
euro
Rotterdam, the Netherlands
euro
Santiago, Chile
Chilean peso
Sao Paulo, Brazil
real
Shanghai, China
yuan
Singapore
Singapore dollar
Sofia, Bulgaria
lev
Stockholm, Sweden
krona
Sydney, Australia
Australian dollar
Toronto, Canada
Canadian dollar
Vienna, Austria
euro
Warsaw, Poland
zloty
Zagreb, Croatia
euro
Around the Globe
In 2024, Euronet served customers in approxi
mately 200 countries and territories worldwide.
Borderless By Design
133
Borderless By Design
Worldwide Office Locations
Worldwide Offices: 67
Worldwide Employees: 11,000
• Office Locations
Euronet: Making it possible
to move money anywhere.
133
134
Euronet | 2024 Annual Report
About Euronet
A global leader in payments processing
and cross-border transactions,
Euronet moves money in all the
ways consumers and businesses
depend upon. This includes money
transfers, credit/debit processing,
ATMs, point-of-sale services, branded
payments, currency exchange and
more. With products and services
in approximately 200 countries
and territories provided through its
own brand and branded business
segments, Euronet and its financial
technologies and networks make
participation in the global economy
easier, faster and more secure for
everyone.
Leawood, Kansas, USA
euronetworldwide.com