EEFT · Research
Euronet's Payments Infrastructure Grows 11.40% While Cross-Border Payments Shrinks 4%
Euronet is a payments company with a small software arm. In Q2 2026, ATM and card processing grew 11.40% with CoreCard added, prepaid grew 4.96% and money transfer fell 4%.
| Scorecard | Read |
|---|---|
| Thesis | Payments Infrastructure, with CoreCard and Ren software, grows double digits and offsets slower money transfer |
| What proves it wrong | Cross-Border Payments keeps declining and Payments Infrastructure growth falls below 8% |
| Next catalyst | Q3 2026 results for the quarter ended Sep 30, 2026, the seasonal peak for currency conversion at ATMs |
| Key multiple | 5.57x EV / GAAP EBITDA of $657.50M |
| Debt | $2.65B: revolver $811.4M, convertible notes due 2030 $1,000M, convertible notes due 2049 $33.2M, uncommitted credit $800M, other $31.7M, less $23.3M costs |
| Stock pay | $60.60M from the cash flow line, 1.39% of revenue |
What Euronet sells
Euronet runs three businesses. Payments Infrastructure operates ATMs and card processing and sells Ren and CoreCard software.
epay sells prepaid mobile top-ups and gift cards. Cross-Border Payments is money transfer [1].
Q2 2026 revenue was $1,108.4M, up 3.17% from $1,074.3M [1]. Twelve-month revenue was $4.37B.
How much of Euronet is software
Euronet does not split out software revenue. Plainly: almost all of its revenue is payments and transaction fees.
Software, mainly Ren and CoreCard, sits inside the Payments Infrastructure segment and is a small part of it [1].
By segment in Q2: Payments Infrastructure $377.1M, 33.95% of segment revenue; epay $294.0M, 26.47%; Cross-Border Payments $439.6M, 39.58% [1].
The three segments
Payments Infrastructure grew 11.40% from $338.5M. The filing credits acquiring, Ren software sales and CoreCard, acquired Oct 30, 2025 for $192.7M [1].
Segment operating income was $86.1M against $84.6M.
epay grew 4.96% from $280.1M. Segment operating income was $32.8M against $31.1M [1].
Cross-Border Payments fell 4.00% from $457.9M. Segment operating income fell to $43.3M from $65.6M [1].
Money transfer is where profit dropped.
Total operating income was $137.1M against $158.6M, a fall of 13.56% [1]. Corporate costs were $25.1M against $22.7M.
The network
Payments Infrastructure runs on 57,071 installed ATMs and about 641,000 POS terminals in 70 countries [1]. Active ATMs grew 1% from 56,760.
With the ATM count nearly flat, growth in that segment came from acquiring, software and CoreCard rather than more machines. That is the shift toward software inside a payments business.
Seasonality
Payments Infrastructure earns most from currency conversion at ATMs in the third quarter, the tourism season. epay peaks in the fourth quarter [1].
Q2 is therefore not the strongest quarter for the ATM business. Twelve-month figures smooth this.
The toll-gate test
A toll gate owns the record, owns the connection, prices on outcomes and spends R&D on the gate. Euronet passes the pricing test: it earns per transaction.
It mostly fails the record test.
The connection test is partial. Euronet's ATMs and agent network connect travelers and migrants to cash, but card payments and digital wallets reduce the need for both.
The owner-cash staircase
Start with GAAP EBITDA of $657.50M: operating income of $505.10M plus D&A of $152.40M over the twelve months [1]. Each step down the staircase removes one thing an owner cannot spend.
Step one is operating cash flow of $401.20M, below EBITDA by $256.30M. Operating cash ran below EBITDA because of settlement timing, working capital and cash taxes [1].
Step two subtracts stock pay of $60.60M, taken from the cash flow line. That leaves $340.60M.
Stock pay is 15.10% of operating cash flow [1].
Step three subtracts all capex of $132.30M, including capitalized software. Owner cash is $208.30M, or 4.76% of revenue and 31.68% of EBITDA.
Capex is heavy for a payments company because Euronet buys and installs ATMs [1].
| Step | Twelve months | What the gap is |
|---|---|---|
| GAAP EBITDA | $657.50M | Operating income plus D&A |
| Operating cash flow | $401.20M | Working capital, cash taxes, interest and non-cash items |
| After stock pay | $340.60M | Stock pay treated as a real cost |
| After all capex | $208.30M | What an owner could take out |
Balance sheet and debt
Debt is $2,653.0M: a revolver of $811.4M, convertible notes due 2030 of $1,000M, convertible notes due 2049 of $33.2M, uncommitted credit lines of $800M and other debt of $31.7M, less $23.3M of costs [1].
Senior notes of $704.6M were repaid in 2026 [1]. Holders of the 2049 convertible notes required Euronet to repurchase $491.8M of them, which left $33.2M outstanding.
Cash was $1,196.7M at Jun 30, 2026. Separately, ATM cash was $987.2M and settlement assets $1,425.3M [1]. Neither is counted in cash for EV.
The cover-page share count is 37,403,595 [1]. Shares outstanding were 43,727,615 at Dec 31, 2024 and 39,329,933 at Dec 31, 2025, so the count has fallen 14.46% in eighteen months.
A $425M repurchase program was put in place on Feb 24, 2026 and had not been used by Jun 30, 2026. About $118.4M remained under the earlier program [1].
What the multiple measures
EV is $3.66B: equity value at the Oct 27, 2026 close on 37.40M cover-page shares, plus debt of $2.65B at carrying value, less cash and equivalents of $1.20B.
On GAAP EBITDA of $657.50M that is 5.57x. On operating cash flow of $401.20M it is 9.13x.
Owner cash of $208.30M is 5.69% of EV.
Net debt is $1.46B, or 2.21x GAAP EBITDA. Part of the cash supports daily operations, so the free cash is lower than the balance shown.
What gets overlooked
Euronet is responsible for about $935.0M of cash in ATMs it manages for financial institutions [1]. That is an operating exposure, not a balance sheet debt.
The uncommitted credit of $800M can be withdrawn by lenders. It is short term.
Owner cash is 31.68% of EBITDA, a low conversion. Capex and settlement timing absorb much of the operating profit.
What kind of business this is
Euronet's filing shows three segments: Payments Infrastructure, Consumer and Digital Payments, and Cross-Border Payments [1]. Our reading is that they have different economics.
The ATM and acquiring network earns transaction fees on fixed machines, prepaid distribution resells codes and top-ups, and money transfer is a consumer brand.
The software pieces, Ren and CoreCard, sit inside Payments Infrastructure and are not split out [1]. In our view that makes Euronet hard to compare with pure software companies, because the software revenue cannot be measured on its own and has to be judged through the segment as a whole.
The balance sheet shows ATM cash and settlement assets separately from cash [1]. This piece leaves both out of EV.
Including them would lower EV, so the multiple depends on that choice. Readers who treat ATM cash as spendable will see a lower multiple than the one shown here.
Owner cash at 31.68% of EBITDA is low for the group, well below the software names in this batch. In our reading, settlement timing can move operating cash flow from quarter to quarter, so a full year is the fairer measure.
Peers
The peer set is Lesaka and Toast: payments companies with software attached.
Peer figures come from each company's latest periodic filing [2][3]. Figures are derived from filed statements, and nothing here is a price view.
Euronet has the lowest EV to EBITDA of the group. That reflects slower growth and lower cash conversion.
The comparison is imperfect. Toast serves restaurants and Lesaka serves South African merchants and consumers.
In our view Euronet's ATM and money transfer networks have no close listed peer in this set.
Bull, base and bear
| Case | What happens | What the filings would show |
|---|---|---|
| Bull | Payments Infrastructure grows 12% and money transfer stabilizes | Revenue growth near 7% |
| Base | Payments Infrastructure near 10% and money transfer flat to down | Revenue growth near 3% to 5% |
| Bear | Money transfer declines faster and ATM use falls | Revenue flat and operating income down |
The base case is the Q2 pattern continuing.
The bear case is digital wallets cutting into both ATM withdrawals and money transfer.
The bull case needs software, Ren and CoreCard, to grow into a larger share of Payments Infrastructure.
What to watch
Watch Q3 Payments Infrastructure, the seasonal peak [1].
Watch Cross-Border Payments operating income.
Watch the revolver and uncommitted credit balances. Together they are $1,611.4M of short-term funding.
Watch whether the new repurchase program is used. Buybacks have been the main use of cash, and the pause since February stands out.
Watch software revenue. If Euronet starts disclosing Ren and CoreCard revenue separately, the software share can be measured instead of estimated.
Watch money transfer profit against digital rivals. A further decline in segment profit would suggest pricing pressure rather than seasonality.
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