Euronet Worldwide, Inc. EEFT

The business

Euronet moves money three ways. The EFT Processing segment runs a network of 56,818 ATMs and roughly 610,000 point-of-sale terminals (per the FY2025 10-K), mostly across Europe and Asia, earning fees on cash withdrawals, dynamic currency conversion for tourists, and outsourced ATM management for banks. The epay segment distributes prepaid mobile airtime and branded gift and payment content through about 775,000 retail terminals. Money Transfer is the engine by size: $1.78B of FY2025 revenue, 42% of the total, from the Ria and Xe remittance brands and the Dandelion cross-border payments network reaching roughly 510,000 payout locations. EFT contributed $1.28B (30%) and epay $1.19B (28%). In FY2025 every segment grew: EFT +10.5%, Money Transfer +5.7%, epay +3.2%.

What the financials don't show is how seasonal and narrative-exposed this franchise is. The profit year hinges on Q3, when European summer tourism drives high-margin ATM withdrawals and currency-conversion fees; Q1 is structurally the weakest quarter. And since mid-2025, the whole remittance complex has carried a stablecoin discount: the market reads dollar-token rails as a coming disintermediation of cash-payout remittance and reads declining European cash usage as a slow leak in the ATM estate. The most recent quarter split the story: Q1 2026 revenue rose 10.5% year over year and adjusted EPS beat consensus by 11%, but per management's Q1 call the growth came from EFT (+19% constant currency, helped by the CoreCard acquisition and interchange increases) while Money Transfer revenue fell 4% constant currency under US immigration policy pressure and a new 1% remittance excise tax, even as its digital revenue grew 42%. The moat, named in one sentence: physical distribution density (ATM sites, payout locations, retail terminals) that digital challengers cannot cheaply replicate; whether it persists is a separate audit.