Euronet posted Q2 2026 adjusted EPS of $2.82, up 10% and its fifth consecutive quarter of double-digit growth, on $1.1B of revenue and $193M of adjusted EBITDA, and reaffirmed full-year adjusted EPS growth of 10-15%. Its digital accelerators - now 26% of revenue - grew 31% in the quarter and 35% year-to-date, well ahead of the 23% Investor Day framework, with CoreCard powering marquee wins at Peru's Unibanca and U.S.-based Upgrade and epay adding the dm stores Visa/Mastercard mandate and a Capcom direct-to-publisher deal. The cross-border payments segment remained the soft spot, with revenue down 5% and operating income down 35% on U.S.-Mexico immigration pressure, a tough prior-year comparison and reinvestment in digital marketing, while ATM travel volumes ran below expectations. The company repurchased about $50M of stock and settled its EUR700M bonds, which will modestly raise interest expense for the rest of the year.
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 confirm 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. 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 Euronet'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 continued 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 continued 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. 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 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 Ria 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%-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 CrediaBank'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 growth. In payment processing, we also continued to see strong momentum for our CoreCard platform. During the quarter, we signed a credit card processing agreement with Upgrade, a U.S.-based digital banking platform. We also signed a multi-year Ren 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.
Unibanca 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 Unibanca RFP, but we were not selected. After we announced the acquisition of CoreCard, it changed the narrative of the sales process. We reengaged with Unibanca 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 Unibanca with a single strategic modernization partner. This ultimately resulted in Unibanca selecting our product, which will displace the incumbent processor.
This win really speaks to the combined power of CoreCard 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 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 girocard. 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 epay 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-1 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 platform. 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 VI 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 VI is widely expected to be one of the largest entertainment launches ever, we believe the opportunity extends well beyond the initial game into months of ongoing digital spending. More specifically, large-scale releases tend to create an extended engagement cycle that begins with pre-orders, accelerates through the launch, continues through with downloadable content, online gameplay, 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, Marker Trax and Koin continue to make meaningful progress. Marker Trax'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 Coin Direct 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.
Thanks, Mike. Good morning, everyone. I will begin my comments on slide 10. For the quarter, we delivered revenue of $1.1 billion, operating income of $137 million, and adjusted EBITDA of $193 million. Our adjusted EPS was $2.82, a 10% increase over the prior year. It is worth noting that our operating income includes $4.7 million of additional non-cash purchase price amortization related to the GAAP purchase accounting for the CoreCard acquisition and an additional $1.9 million for non-cash share-based compensation. Excluding these two non-cash items, our operating income would have declined by 9%, which is largely attributable to the lighter cross-border payments volume. Further, we continued to generate strong free cash flows, producing approximately $80 million in the quarter. In addition to investments in our digital initiatives, this free cash flow also allowed us to repurchase approximately 705,000 shares for $50 million.
These repurchases occurred later in the quarter and therefore had minimal impact on our quarterly adjusted EPS, but will benefit adjusted EPS in future quarters. Slide 11 shows our second quarter year-over-year results on an as-reported basis. Most of the major currencies where we operate in strengthened compared to the US dollar. To normalize the impact of the currency fluctuations, we have presented our results adjusted for currency on the next slide. On slide 12. The payments infrastructure segment delivered good results for the quarter, with revenue growth driven by continued expansion in merchant acquiring, interchange increases in certain markets, and the addition of CoreCard, which we acquired in the fourth quarter of 2025. Operating income and adjusted EBITDA increased 2% and 6% respectively, reflecting incremental earnings from these growth drivers, partially offset by ongoing cost inflation across our global markets.
Operating income includes a $4.7 million increase in non-cash purchase accounting amortization I previously commented on, related to the CoreCard acquisition. Excluding that impact, operating income would have increased 7%. In epay, revenue grew 4%, and operating income and adjusted EBITDA each grew approximately 5%. These results reflect continued growth in higher-value digital content and merchant acquiring. Transactions were down about 11% due to shifting in low-value transactions in Asia-Pac. These transactions had nominal impacts on both revenue and profits. The cross-border payments segment results reflect the challenging operating environment Mike just outlined. Revenue declined 5%, reflecting lower U.S. to Mexico remittance volumes as U.S. immigration policies continued to weigh on activity in this quarter. This is partially offset by strong transaction growth at Ria Digital.
The second quarter results were also compared to a favorable second quarter 2025, where we benefited from a non-recurring fee rebate in Pakistan and certain favorable foreign exchange-related opportunities that carried high margins and did not repeat this year. Operating income and adjusted EBITDA declined 35% and 32% respectively. About 60% of these declines are related to decline in revenue and related gross profit, and approximately 25% is related to incremental investment in sales and marketing to benefit our long-term digital accelerator growth drivers. We believe these investments were beneficial as they contributed to 35% growth in digital revenue. At the consolidated level, we delivered double-digit adjusted EPS growth despite the challenges in cross-border payments. Solid performance in payments infrastructure and epay, combined with continued momentum across our digital channels, helped offset pressures in cross-border payments.
Despite near-term headwinds, we are confident in the underlying fundamentals and long-term thesis of our cross-border business. Looking ahead, our outlook remains unchanged. As we discussed during our first quarter call and the Investor Day, our digital accelerators continue to perform well and are becoming a larger part of our business mix. We continue to expect full-year adjusted EPS growth in the 10%-15% range, with quarterly earnings becoming more evenly distributed throughout the year as our digital growth strategy helps balance the quarter mix of our business. As we previously shared, the second and third quarters are expected to represent a smaller share of annual earnings than they have in historical quarters. Now let's turn to slide 13 for a few comments on the balance sheet. We ended the quarter with $1.2 billion in unrestricted cash and nearly $1 billion in cash deployed in our ATM network.
Total debt was $2.7 at the end of the quarter. Changes in both cash and debt primarily reflect the seasonal funding required to support peak ATM cash demand, together with share repurchases, partially offset by approximately $80 million in cash generated from operations. Towards the end of May, we settled our EUR 700 million bonds. This resulted in increased interest expense of about $1.3 million in the second quarter compared to the prior year. As we look forward, we expect this will increase interest expense by approximately $6 million for the remainder of the year versus the prior year, based on current EUR borrowing rates. As we discussed in May, share repurchases remain a key component of our capital allocation strategy and are funded primarily through our recurring operating free cash flows.
We continue to view buybacks as an attractive use of capital and a reflection of our view regarding the value of our shares relative to long-term opportunities for the business. Going forward, we will remain disciplined in capital allocation. With that, I'll turn it back to Mike for his closing remarks.
Thank you. As we wrap up, my key takeaway is this: momentum in our digital accelerators continues to strengthen and is increasingly shaping the future of Euronet, with revenue from this category up 35% year-to-date, well ahead of our long-term framework that we communicated to you at Investor Day. In the cross-border payments section, Ria Digital delivered another strong quarter, with revenue and transactions up 35% and 33% respectively, while Dandelion expanded through Mastercard Move and five new partners. In payments infrastructure, we saw continued strength in merchant acquiring and growing demand for CoreCard, highlighted by our new agreement with Unibanca. In epay, we are growing our digital content and gaming revenue through new direct publisher relationships, expanded distribution, and progress in real money gaming. Importantly, these accelerators are becoming a larger and much more durable part of our revenue mix.
While parts of the business face near-term macroeconomic headwinds this quarter, our core strategy remains intact, our platforms are scaling, and our outlook is unchanged. We remain confident in delivering our long-term growth objectives and creating value for the shareholders. With that, I'd be happy to take questions. Operator, will you please assist?