Euronet Worldwide, Inc.

Thank you so much for joining us today. for Euronet Worldwide. Thank you. Ms. Taylor, you may now begin.

Thank you, Tyler. Good morning, and welcome to Euronet's second quarter 2026 earnings conference call. On the call, we have Mike Brown, our chairman and CEO, and Rick Weller, our CFO. Before we begin, I need to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we will be making today. Statements made on this call that concern Euronet or its management's intentions, expectations, or predictions of further performance are forward-looking statements. Euronet's actual results may vary materially from those anticipated in these forward-looking statements as a result of a number of factors that are listed on the second slide of our presentation. In addition, the PowerPoint presentation includes a reconciliation of the non-GAAP financial measures we will be using during the call to their most comparable GAAP measures. Now I'll turn the call over to our chairman and CEO, Mike Brown.

Thank you, Stephanie. Good morning, everybody, and thank you for joining us. I'll begin my comments on slide number four. During the second quarter, our results demonstrated the resilience of Urinet's diversified business model and our ability to execute against our long-term growth strategy. Second quarter, adjusted EPS increased 10%. Marking our fifth consecutive quarter of double digit earnings growth, our digital accelerators once again represented our primary growth driver during the quarter with revenue growing 31% year over year for the second quarter and 35% year to date. While we experienced some softness in certain parts of the business and made some additional investments into digital, The continued momentum in our accelerators highlights the benefits of our diversified model and digital initiatives. We also continue to see a very positive response to the CoreCard platform, highlighted by the signing of a credit card processing agreement with Unibanca, one of Peru's leading bank processors. Finally, we continue to return capital to shareholders, repurchasing about $50 million worth of Euronet shares during the quarter. Overall, we are pleased with our ability to navigate an evolving macro environment and remain focused on executing our strategy, managing capital prudently, and delivering long-term value for the shareholders. Now we'll move on to slide number five. On slide five, you'll find an update to the digital accelerator framework we introduced at our investor day in May. This framework helps illustrate the drivers behind Euronet's long-term growth strategy. Digital accelerators represented 26% of total company revenue year-to-date, reflecting the continued shift in our business towards higher growth digitally enabled payment channels. As I mentioned, revenue from these products in this quarter grew 31% in the quarter and and 35% year-to-date, well above the 23% growth rate outlined at Investor Day. This performance was driven by strong results across several businesses led by REIA Digital, issuing and merchant services. Growth in our non-accelerator businesses was somewhat softer than anticipated primarily due to the impact of U.S. immigration policies and the related pressure on remittance send volumes globally. Moreover, our ATM transactions were a bit softer than we expected earlier in the travel season. Our experience appears to be generally consistent with market sources that indicate that airline bookings from the U.S. to Europe are about 5% to 8% below the peak 2025 booking window and European travelers becoming more selective with discretionary spending. Despite these near-term headwinds, these businesses remain highly profitable, cash-generative, and strategically important, providing the foundation that enables us to invest in higher growth opportunities. Looking ahead, our long-term thesis remains unchanged. Leverage Euronet's world-class payment network to provide seamless digital solutions for our customers. We expect the accelerators to remain our fastest growing revenue category and a key driver of earnings growth and shareholder value creation over the coming years. Turning to the next slide, payments infrastructure, formerly known as EFT, we made meaningful progress advancing several of our digital accelerator initiatives during the quarter. In merchant services, We expanded on the previously announced acquisition of Credia Bank's Merchant Services business in Greece. During the second quarter, we launched a merchant acquiring referral program that expands our distribution channels and creates additional opportunities to reach merchants through partner relationships. This partnership further strengthened our existing sales initiatives, which resulted in the addition of 4,200 new merchants during the quarter. These additions reflect continued demand for our merchant acquiring solutions and reinforce our strong position in Greece. In payment processing, we also continue to see strong momentum for our core card platform. During the quarter, we signed a credit card processing agreement with UpGrade, a US-based digital banking platform. We also signed a multi-year rent agreement with Unibanca, one of Peru's leading financial processors, to modernize credit issuing in Peru through REN's expanded credit architecture powered by CoreCard. Unibank currently provides processing services to nine banks in the country, making this an important competitive win and further demonstrating the flexibility, scalability, and competitiveness of our technology. Importantly, CoreCard was the difference maker in winning this business. Prior to the acquisition, we had an issuing platform, but it was not our leading product in our portfolio. We previously participated in the Unibanco RFP, but we were not selected. After we announced the acquisition of CoreCard, it changed the narrative of the sales process. We reengaged with Unibanco, as CoreCard's solution not only handles consumer credit at proven scale, but also has a robust commercial credit capability among others. The CoreCard SaaS solution together with the breadth of Euronet's broader REN payment product offering provided Unibanco with a single strategic modernization partner. This ultimately resulted in Unibanco selecting our product which will displace the incumbent processor. This win really speaks to the combined power of Core Card and REN. Also related to our accelerators, we signed an online merchant acquiring agreement with NTT Data, a leading merchant acquirer in the Asia-Pac region. This relationship highlights the strength of our platform and supports our strategy of partnering with established payment processors or providers in attractive growth markets. Finally, we have signed a new sponsorship agreement with a bank in Costa Rica, which will help us grow our IAD network in this cash-rich country. Overall, these wins reflect continued execution against our strategy of expanding our customer footprint, deepening client relationships, and delivering scalable infrastructure solutions that help our customers grow. As digital payments adoption continues to increase globally, we believe our digital capabilities position us to deliver greater value to customers and capitalize on this long-term trend. Now let's go to slide number seven. Turning to ePay, we continue to expand digital distribution and payment capabilities across our global network. This quarter, We expanded our merchant services business by completing the integration of Visa and MasterCard acquiring across all DM stores. DM is one of the largest health and beauty retailers in Europe, operating more than 4,000 stores in 14 countries across the continent. ePay is now the exclusive provider of retail POS processing for Visa and MasterCard across all DM stores in Europe, Building on our long-term relationship where we were already providing acquiring to them for Alipay, PayPal, Apple Pay, Google Pay, and GyroCard. During our investor day, we highlighted a new opportunity relating to building direct-to-publisher relationships. As digital channels continue to evolve, game publishers are seeking greater control over how their products are marketed, sold, and distributed. This is creating new capabilities for eBay to leverage its global distribution network, issuer capabilities, and publisher relationships. Through our direct-to-publisher strategy, we are working directly with game publishers to distribute their content across our expansive network of digital and physical channels. while also supporting publishers that choose to introduce their own branded store value products. As app store billing frameworks continue to evolve, particularly in mobile gaming, we believe demand for these services will increase over time. This quarter, we furthered our direct to publisher strategy by signing a distribution agreement with Capcom, a tier one Japanese game publisher, with iconic franchises such as Street Fighter and Resident Evil. Capcom sold 59 million units last year, and this agreement allows us to directly distribute Capcom content across Europe with attractive economics. This digital distribution agreement demonstrates our ability to establish direct publisher relationships, and we expect this to continue across both PC and mobile gaming. In Japan, we signed an agreement with Yahoo and Rakuten to distribute Roblox and Riot products. We launched Google Play, Xbox, Riot, and PlayStation products on Stanverse, an Indian gaming platform. These initiatives further strengthen our branded payments and merchant services businesses while expanding the reach of our digital distribution platforms. Additionally, after years of anticipation, and I've talked to you about this multiple times, and several delays, Rockstar has officially opened Grand Theft Auto No. 6 pre-orders in late June and confirmed a November 19th release date. We immediately saw a positive response in sales of PlayStation and Xbox gaming credits used to fund those purchases. GTA 6 Thank you for joining us. Subscriptions, and In-Game Purchases. While we're not forecasting results tied to a single title, the early demand we are seeing reinforces our confidence in gaming as one of our most attractive growth categories. Finally, as an update to our real money gaming strategy, Markertrax and Coin continue to make meaningful progress. Markertrax's omni-channel solution, built on Euronet's REN platform, is now certified with most U.S. casino management systems. We expect them to achieve certification across all major U.S. slot machine systems as well as their first table management system by year-end. At the same time, one of the world's largest gaming and entertainment technology companies has selected CoinDirect as its white-label solution enabling players to fund slot machines, play directly from their bank accounts using their mobile phones. Together, these milestones reinforce the momentum they are building across both platforms going into next year and beyond. As we discussed on our Investor Day, ePay benefits from a highly scalable global network that connects brands, retailers, and consumers across both physical and digital channels. The opportunities we are pursuing today leverage that same infrastructure, creating additional avenues for growth and increasing the value of the platform over time. Now let's move on to slide eight, and we'll talk about cross-border payments business, formerly known as money transfer. Slide eight. The second quarter cross-border payments results were softer than we expected driven by two primary factors. First, US immigration enforcement continued to weigh on cross-border transaction volumes primarily from the US to Mexico. This was a market-wide dynamic as the broader US outbound remittance market experienced its first annual decline in more than a decade. Supporting that trend, The Brookings Institution reported that net migration was likely close to zero or negative across the calendar year 2025 for the first time in at least a half a century, reducing the pool of new workers and consumers that historically drive outbound remittance growth. Market reports also show encouraging signs, though, of stabilization with growth in remittance volume to Mexico over the last four months We are executing several initiatives to reinvigorate growth in the retail channel where we felt the pain. And while overall volumes have softened, our geo and channel diversification is enabling us to weather the storm highlighted by the very strong growth in our digital channel. The second largest driver of the softness was a difficult comp to the prior year's second quarter where we saw unusually high margins from a non-recurring fee rate in Pakistan, and certain one-time FX opportunities. Those two items together with incremental investment in our cross-border payment accelerators are the key drivers of the softer segment operating income. I remain confident that the underlying business remains healthy and the long-term growth trajectory remains intact. As I turn to the highlights, REIA Digital continues to lead our growth with digital transactions increasing 33%, our fourth consecutive quarter of growth exceeding 30%. The business continues to demonstrate its durability with more than 90% of the transaction volume coming from repeat customers. During the quarter, we continued investing for future growth, increasing digital marketing spend by approximately $3 million to support customer acquisition and long-term expansion. We also made meaningful progress with Dandelion, signing MasterCard Move as a new partner during the quarter. This partnership enables MasterCard Move, one of the world's largest payment ecosystems, to expand its global payout capabilities through the Dandelion network. We expect the service to go live in the fourth quarter with transaction volumes ramping gradually through a phased rollout. In addition to MasterCard, we signed five new Dandelion partners, further expanding this key strategic accelerator. In the UK, we launched an agreement with Uber to integrate real money transfer into Uber's driver app. This digital partnership will allow Uber drivers to send funds to their beneficiary directly from the app where they receive their earnings, giving them a competitive money transfer offering while saving time and reducing friction. Initiatives like this will continue to expand our reach and create new opportunities to serve both consumers and enterprise customers. In addition, We further enhanced our product offering through the launch of BRIBI, enabling instant payments in Colombia. Finally, we expanded our wallet payout capabilities in Nigeria through the addition of four new banking partners. In summary, while the quarter's top line print was softer than we wanted to report, the fundamentals of the business are still intact. Our strategic initiatives are contributing to a strong transaction and customer growth, We remain encouraged by the continued momentum in our digital business, the expansion of our global payment networks, and the opportunities we see to drive long-term profitable growth across the cross-border payment segment. With that, I will hand it over to Rick.