EURONET WORLDWIDE INC

Previous wording

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 2023 items and year-to-year comparisons between 2023 and 2022.

Current wording

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.

Previous wording

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 47,303 ATMs, as of December 31, 2023, and approximately 656,000 POS terminals.

Current wording

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.

Previous wording

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 60+ countries. We operate a network that includes approximately 821,000 POS terminals that enable electronic processing of prepaid mobile airtime "top-up" services and other digital media content.

Current wording

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 hasone 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.

Previous wording

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. 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.

Current wording

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.

Previous wording

epay Segment — Revenues in the epay Segment, which represented approximately 29% of total consolidated revenues for the year ended December 31, 2023, 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 67% 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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

Our annual consolidated revenues increased by 9.8% for 2023 compared to 2022. The increase in revenues for 2023 was primarilydue to the increases in transaction volumes across allthree segments.

Current wording

Our annual consolidated revenues increased by 8.2% for 2024 compared to 2023. The increase in revenues for 2024 was primarilydue to the increases in transaction volumes across allthree segments.

Previous wording

Our annual consolidated operating income increased by 12.2% for 2023 compared to 2022. The increase in operating income for 2023 was primarily due to the increases in transaction volumes across allthree segments.

Current wording

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 allthree segments.

Previous wording

Net income attributable to Euronet for 2023 was$279.7 million, or$5.50 per diluted share compared to a net income attributable to Euronet for 2022 of $231.0 million, or $4.41 per diluted share.

Current wording

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.

Previous wording

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 2023 consolidated operating income was approximately 0.2% higher due to changes in foreign currency exchange rates when compared to 2022. 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.

Current wording

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.

Previous wording

EFT Processing Segment total revenues were$1,058.3 million for the year ended December 31, 2023, anincrease of$134.1 million or 14.5%compared to the same period in 2022. Revenues increased for the year ended December 31,2023 compared to the same period in 2022 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$9.3 millionfor the year ended December 31, 2023, compared to the same period in 2022.

Current wording

EFT Processing Segment total revenues were$1,161.2 million for the year ended December 31, 2024, anincrease 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 millionfor the year ended December 31, 2024, compared to the same period in 2023.

Previous wording

Revenue per transaction was $0.12 for the year ended December 31, 2023, compared to $0.14 for the same period in 2022. The decrease in revenue per transaction was driven by an increase in high volume low value transactions initiated through digital wallets.

Current wording

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.

Previous wording

Average monthly revenues per ATMincreased to$1,797 for the year ended December 31, 2023 compared to $1,633 for the same period in 2022.

Current wording

Average monthly revenues per ATMincreased to$1,881 for the year ended December 31, 2024 compared to $1,797 for the same period in 2023.

Previous wording

EFT Processing Segment direct operating costs were$572.1 million for the year ended December 31, 2023, anincrease of$96.3 million or 20.2%compared to the same period in 2022. 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, 2023, theincrease in direct operating costs was primarily due to theincrease in transaction volumes, and costs associated with modifying our estate of ATMs. Foreign currency movements increased direct operating costs by approximately $7.9 million for the year ended December 31, 2023 compared to the same period in 2022.

Current wording

EFT Processing Segment direct operating costs were$605.4 million for the year ended December 31, 2024, anincrease 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, theincrease in direct operating costs was primarily due to theincrease 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.

Previous wording

Gross profit, which is calculated as revenues less direct operating costs, was$486.2 millionfor the year ended December 31, 2023, an increase of $37.8 million or 8.4% compared to$448.4 million for the same period in 2022. Gross profit as a percentage of revenues (“gross margin”) decreased to 45.9%for the year ended December 31, 2023, compared to 48.5%for the same period in 2022. For the year ended December 31, 2023, the increase in gross profit was primarily driven by the revenue increase from additional transaction volumes into new geographies.

Current wording

Gross profit, which is calculated as revenues less direct operating costs, was$555.8 millionfor 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.

Previous wording

Salaries and benefits expenses were $126.5 million for the year ended December 31, 2023, an increase of$14.6 million or 13.0% compared to the same period in 2022. The increase in salaries and benefits for the year ended December 31, 2023 compared to the same period in 2022 was primarily driven by an increased headcount and an increase in pay rate and bonuses. As a percentage of revenues, these expenses decreased to 12.0% for the year ended December 31, 2023, compared to 12.1%forthe same period in 2022.

Current wording

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%forthe same period in 2023.

Previous wording

EFT Processing Segment had operating income of$206.3 million for the year ended December 31, 2023, compared to operating income of $184.0 million in 2022, an increase of $22.3 million compared to the same period in 2022. Operating income as a percentage of revenues (“operating margin”) decreased to 19.5% for the year ended December 31, 2023, compared to 19.9% for the same period in 2022. Operating income per transaction was$0.02 for the year ended December 31, 2023, compared to$0.03 for thesame period in 2022. For the year ended December 31, 2023, the increase in operating income and decrease in operating margin was primarily driven bythe increase in the number of transactions processed in a region where we generally earn lower revenues per transaction.

Current wording

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 incomewas primarily driven by the increase in transactions.

Previous wording

epay Segment total revenues were $1,082.4 million for the year ended December 31, 2023, an increase of $84.5 million or 8.5% compared to the same period in 2022. Foreign currency movements increased revenues by approximately$11.4 millionfor the year ended December 31, 2023, compared to the same period in 2022. The increase in revenues was driven by continued expansion of digital media and mobile sales. Revenues per transaction increased to$0.29 for the year ended December 31, 2023, compared to$0.26 for the same period in 2022. The increase in revenues per transaction was primarily driven by a decrease in the number of low-margin mobile transactions processed in a region where we generally earn lower revenues per transaction.

Current wording

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 millionfor 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.

Previous wording

epay Segment direct operating costs were$819.1 million for the year ended December 31, 2023, an increase of$65.9 million or 8.7% compared to the same period in 2022. 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 increased these expenses by $9.9 million for the year ended December 31, 2023, compared to the same period in 2022.

Current wording

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.

Previous wording

Gross profit was$263.3 millionfor the year ended December 31, 2023, an increase of $18.6 million or 7.6% compared to$244.7 million for the same period in 2022. Gross margin decreased to 24.3%for the year ended December 31, 2023, compared to 24.5% for the same period in 2022.

Current wording

Gross profit was$277.8 millionfor 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.

Previous wording

Salaries and benefits expenses were $91.1 million for the year ended December 31, 2023, an increase of$9.3 million or 11.4% compared to the same period in 2022. The increase in salaries and benefits was primarily driven by an increase in headcount to support the growth of the business and an increase in bonus expenses. As a percentage of revenues, these expenses increased to 8.4% for the year ended December 31, 2023, compared to 8.2% for the year ended December 31, 2022.

Current wording

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.

Previous wording

Depreciation and amortization expenses were $6.9 million for the year ended December 31, 2023, an increase of$0.7 million or 11.3%compared to the same period in 2022. 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, 2023, and 2022, respectively.

Current wording

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.

Previous wording

epay Segment operating income was $126.2 million for the year ended December 31, 2023, an increase of$5.5 million or 4.6% compared to the same period in 2022. Operating margin decreased to 11.7% for the year ended December 31, 2023, compared to 12.1% for the same period in 2022. Operating income per transaction was$0.03 for the year ended December 31, 2023, and 2022, respectively. The increase in operating incomewas primarily driven by the increase in transactions.

Current wording

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 incomewas primarily driven by the increase in transactions.

Previous wording

Money Transfer Segment total revenues were $1,555.2 million for the year ended December 31, 2023, an increase of $110.7 million or 7.7% compared to the same period in 2022. The increase in revenues was primarily due to 9.6% growth in US-outbound transactions,12.1% growth in international-originated money transfers - which included 9.9% growth from Americas outside the US,12.0% growth in transfers initiated largely in Europeand 14.3% growth in transfers initiated in the Middle East and Asia, and 15.5% growth in xe transactions, partially offset by a 15.5% decline in the intra-US business. These transaction growth rates include 25.6% growth in direct-to-consumer digital transactions. Revenues per transaction decreased to$9.62 for the year ended December 31, 2023, compared to$9.77 for the same period in 2022. Foreign currency movements increased revenues by approximately$8.7 millionfor the year compared to the same period in 2022.

Current wording

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 revenueswas 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.

Previous wording

Money Transfer Segment direct operating costs were $839.5 million for the year ended December 31, 2023, an increase of $42.6 million compared to the same period in 2022. 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 increased direct operating costs by approximately $4.9 million for the year ended December 31, 2023, compared to the same period in 2022.

Current wording

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.

Previous wording

Gross profit was$715.7 millionfor the year ended December 31, 2023, an increase of $68.1 million or 10.5% compared to$647.6 million for the same period in 2022. Gross margin increased to 46.0%for the year ended December 31, 2023, compared to 44.8% for the same period in 2022. The increase in gross profit was primarily attributable to the increase in transaction volume and relative decrease of agent commissionsfor the year ended December 31, 2023.

Current wording

Gross profit was$766.8 millionfor 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 commissionsfor the year ended December 31, 2024.

Previous wording

Salaries and benefits expenses were $310.5 million for the year ended December 31, 2023, anincrease of$33.5 million or 12.1% compared to the same period in 2022. 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 20.0%for the year ended December 31, 2023, compared to 19.2%forthe same period in 2022.

Current wording

Salaries and benefits expenses were $333.4 million for the year ended December 31, 2024, anincrease 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%forthe same period in 2023.

Previous wording

Selling, general and administrative expenses were $188.8 million for the year ended December 31, 2023, an increase of$6.6 million or 3.6% compared to the same period in 2022. The increase in these expenses was primarily driven by an increase in professional fees, product hardware, software, and travel-related expenses. As a percentage of revenues, these expenses decreased to 12.1% for the year ended December 31, 2023, compared to 12.6% for the same period in 2022.

Current wording

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.

Previous wording

Depreciation and amortization expenses were $31.0 million for the year ended December 31, 2023, a decrease of ($2.9) million or (8.6%)compared to the same period in 2022. 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 2.0%for the year ended December 31, 2023, compared to 2.3% for the same period in 2022.

Current wording

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.

Previous wording

Money Transfer Segment operating income was $185.4 million for the year ended December 31, 2023, an increase of$30.9 million or 20.0% compared to the same period in 2022. Operating margin increased to 11.9% for the year ended December 31, 2023, compared to 10.7% for the same period in 2022. Operating income per transaction increased to$1.15 for the year ended December 31, 2023, compared to $1.04 for the same period in 2022. The increase in operating income, operating margin, and operating income per transaction for the year ended December 31, 2023 compared to the same period in 2022 was primarily driven by the increase in transaction volume, specifically the higher margin transactions for US outbound and international-originated money transfers, partially offset by theincrease in agent commissions, and an increase in headcount to support the growth of the business.

Current wording

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.

Previous wording

Total Corporate operating expenses were $85.3 million for the year ended December 31, 2023, an increase of $11.6 million or 15.7%, compared to the same period in 2022. The increase was primarily due to an increase in share-based compensation and bonuses as a result of improved performance for the year ended December 31, 2023, compared to the same period in 2022.

Current wording

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.

Previous wording

We recorded a net foreign currency exchange gain of$8.0 million for the year ended December 31, 2023, compared to a net foreign currency exchange loss of $28.2 million for the same period in 2022. 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.

Current wording

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.

Previous wording

We calculate our effective income tax rate by dividing income tax expense by pre-tax book income. Our effective income tax rates were 30.2% and 28.5% for the years ended December 31, 2023 and 2022, respectively. The effective income tax rates were significantly 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 32.0% and 22.7% for the years ended December 31, 2023 and 2022, respectively.

Current wording

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.

Previous wording

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. The effective income tax rate, as adjusted, for 2022 was higher than the applicable statutory income tax rate of 21% as a result of the non-recognition of tax benefits from losses in certain foreign countries where we have a limited history of profitable earnings and certain foreign earnings being subject to higher local statutory tax rates. The effective income tax rate, as adjusted, was offset by a decrease in the valuation allowance related to the projected utilization of U.S. tax benefits. 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.

Current wording

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.

Previous wording

Our total liability for uncertain tax positions under Accounting Standards Codification ("ASC") 740-10-25 and -30 was $51.8 million as of December 31, 2023. 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.

Current wording

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.

Previous wording

Net income attributable to Euronet was $279.7 million for the year ended December 31, 2023, an increase of $48.7 million compared to net income in the same period in 2022. For the year ended December 31, 2023, the increase in net income was primarily attributable to the $124.6 million increase in gross profit driven by an increase in transaction volumes across allthree segments and the $36.2 million increase in foreign currencies, partially offset by an $68.7 million increase in salaries and benefits, and a $29.0 million increase in income tax expense.

Current wording

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 allthree 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 expensesand a $21.7 million increase in income tax expense.

Previous wording

We recorded a net gain on translation adjustments of$47.9 million for 2023 and a net loss of $78.3 million for 2022. In 2023, the U.S. dollar weakened compared to key foreign currencies, resulting in translation gains which were recorded in comprehensive (loss) income. In 2022, the U.S. dollar strengthened compared to key foreign currencies, resulting in translation losses which were recorded in comprehensive (loss) income.

Current wording

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.

Previous wording

As of December 31, 2023, we had working capital of $1,462.1 million, which is calculated as the difference between total current assets and total current liabilities, compared to working capital of $1,372.7 million as of December 31, 2022. The increase in working capital was due to several changes in working capital line items, mainly due to 2023 ending in the weekend, which impacts funding needs for our money transfer agents. Our ratio of current assets to current liabilities was 1.54 and 1.58 at December 31, 2023 and December 31, 2022, respectively.

Current wording

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.

Previous wording

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 thereporting 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, 2023, we had approximately$525.2 millionof 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 $9.6 million from $515.6 million as of December 31, 2022 to $525.2 million as of December 31, 2023.

Current wording

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 thereporting 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 millionof 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.

Previous wording

The Company has $1,254.2 million of unrestricted cash as of December 31, 2023 compared to $1,131.2 million as of December 31, 2022. The Company has access to $2,106.8 million in available cash, and$661.2 million available under the Credit Facility with no significant long-term debt principal payments until March 2025.

Current wording

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.