EURONET WORLDWIDE, INC. Revenue Disclosure

Revenue recognition

The Company recognizes revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Depending on the nature of the underlying arrangements, revenue may be earned from transaction‑based fees, commissions, foreign exchange margins, or the sale of prepaid products. Sales and usage‑based taxes collected from customers and remitted to governmental authorities are excluded from revenues. The nature of the Company’s performance obligations varies by business segment based on the products and services provided. A description of the major components of revenue and the related performance obligations for each segment is as follows:

EFT

Nature of performance obligations

The Company provides electronic funds transfer processing services, which include routing, authorizing, switching, and completing ATM, POS, and card‑based electronic transactions, as well as operating ATM networks and providing outsourced ATM and card management services. Depending on the arrangement, the Company may also provide ATM monitoring, maintenance, and EFT software solutions.

For transaction‑based services, the various activities involved in processing a transaction (e.g., authorization, routing, settlement, and related value‑added services) are inputs to a single integrated service that customers cannot benefit from independently. For outsourcing arrangements, ATM management and related services are provided continuously over the contract term and represent a series of distinct periods of service that are substantially the same.

When revenue is recognized

         Transaction‑based services: The Company satisfies its performance obligation at a point in time, which occurs when the electronic transaction is fully processed.

         Outsourcing services: The Company satisfies its performance obligation over time, as customers simultaneously receive and consume the benefits of the ATM management and processing services. Revenue is recognized ratably over the contract term, generally based on fixed monthly fees and/or contracted fee schedules.

How revenue is measured

Revenue consists primarily of transaction fees, management fees, foreign currency exchange margin on ATM withdrawals, and fees from value‑added services such as dynamic currency conversion and surcharges. The Company acts as principal in these arrangements, as it controls the ATM network or processing services prior to transfer to the customer; accordingly, revenue is recognized on a gross basis.

epay

Nature of performance obligations

The Company provides distribution, activation, and electronic processing services for prepaid mobile airtime, digital media products, and other stored‑value goods through a network of POS terminals and direct system integrations. Depending on the arrangement, the Company may act as agent (providing distribution services on behalf of operators or content providers) or as principal (generally in arrangements where the Company controls the product prior to transfer, including where rights of return to vendors exist).

These activities — including making prepaid products available, processing activations, routing electronic transactions, and providing access to operators’ platforms — are inputs to the Company’s service and support the transfer of either (i) a distribution service (agency model) or (ii) a prepaid product (principal model).

When revenue is recognized

         Distribution and agency services (net): The performance obligation is fulfilled at a point in time, generally when the prepaid product is delivered or activated and the Company earns a commission.

         Principal sales of prepaid products (gross): The performance obligation is fulfilled at a point in time, when control of the prepaid product transfers to the retailer or end customer, typically upon activation or delivery.

         Transaction processing services: The performance obligation is fulfilled at a point in time, when the underlying electronic transaction is fully processed.

How revenue is measured

         For agency arrangements, the Company does not control the underlying product and therefore recognizes revenue net of amounts remitted to operators, content providers, or retailers.

         For principal arrangements, the Company controls the prepaid product prior to transfer and therefore recognizes revenue on a gross basis, with the related acquisition cost recorded as a direct operating expense.

         Transaction processing revenue is recognized based on fees earned per processed transaction, regardless of whether the transaction is completed or declined due to issuer authorization outcomes.

Money Transfer:

Nature of performance obligation

The Company provides a single, integrated money transfer service that enables a sender to transfer funds to a designated recipient through the Company’s global origination and payout network. The service encompasses (i) accepting and validating the transfer request, (ii) routing and processing the transaction through the Company’s systems, (iii) transmitting the necessary information to payout partners, (iv) performing foreign currency conversion when required, and (v) making funds available for payout at the destination. These activities are inputs to the same overall service and are not distinct within the context of the contract because customers cannot benefit from them on a standalone basis.

When revenue is recognized

The Company satisfies its performance obligation at a point in time, which occurs when the transaction is fully processed and funds are made available for payout to the recipient. At that point, control of the service has transferred to the customer.

How revenue is measured

Revenue consists of (a) transaction fees charged to customers and (b) foreign exchange margins earned when converting currency at retail rates relative to wholesale acquisition costs. Foreign exchange is not a separate performance obligation; it is an integral component of the end‑to‑end money transfer service. Amounts owed to origination and distribution agents for facilitating the sending and payout of funds are treated as direct operating costs of fulfilling the Company’s single performance obligation.

Principal considerations

The Company acts as principal in money transfer transactions because it controls the service prior to transfer to the customer, including discretion over the routing of transactions, the payout network used, and the terms of currency conversion. Accordingly, revenue is presented gross of agent commissions and other amounts remitted to payout partners, which are recorded in direct operating costs.

Revenues 

Deferred Revenues - The Company records deferred revenues when cash payments are received or due in advance of its performance. The increase in the deferred revenue balance for the year ended December 31, 2025 was primarily driven by $42.1 million of cash payments received in the current year for which the Company has not yet satisfied the performance obligations, offset by $38.5 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2024.

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.