Voss Capital Issues Open Letter to the Board of Euronet Worldwide
Believes the Company's Sustained Underperformance Warrants Change from the Status Quo
Calls on the Board to Immediately Explore Strategic Alternatives
HOUSTON, March 04, 2026 (GLOBE NEWSWIRE) -- Voss Capital, L.P. (together with certain of its affiliates, "Voss Capital" or "we"), a significant stockholder of Euronet Worldwide, Inc. (NASDAQ:EEFT) ("EEFT" or the "Company") with beneficial ownership of approximately 4.2% of the Company's outstanding shares of common stock, today issued an open letter to the Company's board of directors (the "Board") urging the Board to immediately explore strategic alternatives.
The full text of the letter follows.
To the Euronet Board of Directors,
We are writing as long-term shareholders of Euronet Worldwide Inc. ("Euronet", "EEFT" or the "Company"), which beneficially own approximately 1.64 million shares, or 4.2% of the Company's outstanding common stock, as of March 4th, 2026.
We believe Euronet has built an extremely valuable global financial infrastructure, including proprietary payment rails and last-mile distribution capabilities for money remittance. This strategically valuable business has been assembled with decades of regulatory leg work in numerous countries all over the world. The Company has built long-term relationships with global banks, merchants and consumers, all guided by a management team that has operated reasonably well through a consistently dynamic environment, while steadily compounding the Company's earnings power.
Despite these proven strengths and enviable strategic positioning, the Company's stock price has underperformed every reasonable comparison over the past 5 years, as shown below:
| Total Cumulative Return | ||||
| Period | EEFT | WU | FINX | S&P 500 |
| 1-Year | -31% | -2% | -19% | 17% |
| 3-Year | -36% | -5% | 19% | 73% |
| 4-Year | -48% | -30% | -21% | 57% |
| 5-Year | -54% | -38% | -42% | 81% |
Source: FactSet, consensus estimates. Data through March 2, 2026
Per the table above, Euronet has underperformed the broader US market, a global Fintech ETF (FINX), and, most discouragingly, a very low growth peer in the Western Union Company ("Western Union") who has a similar financial infrastructure but has severely lagged Euronet in financial performance, as shown below:
| EPS Growth CAGR* | ||
| Period | EEFT | WU |
| 1-Year | 13% | 3% |
| 3-Year | 13% | 1% |
| 5-Year | 24% | -4% |
| 10-Year | 10% | 0% |
| * Using 2026 Consensus | ||
| ** COVID distorts view on 5 year period in our view | ||
Source: FactSet, consensus estimates. Data through March 2, 2026.
On an EV/EBITDA and EV/EBIT multiple basis (e.g., leverage adjusted), Western Union is now more expensive than Euronet despite the radical difference and underperformance in financial performance.
From 2014 to 2020, Euronet traded in a reasonably tight band of 15-20x Next Twelve Months earnings estimates. Since that time, even as EPS has grown substantially, the Company has slowly but surely drifted first below 10x earnings and now has de-rated all the way to 6.5x consensus 2026 earnings.
It is clear to us that this sustained period of underperformance and seeming underappreciation by the market should prompt radical changes by the Company's board of directors (the "Board") and management to attempt to change the faulty narrative around the Company, or at least prompt a tacit admission that the current strategy and investor communications status quo are not working.
Unfortunately, the urgency we expected to see does not seem to be manifesting into action. When we engaged with management and the Board this past summer, we were told they generally agreed with the issues we presented and were working on an analyst day in the Fall/Winter of 2025 to illuminate the collective value of their many businesses through a cohesive strategy. Since that time, that analyst day was first delayed until early 2026 and has now been seemingly abandoned completely in lieu of "investor forums," the details of which we have not been privy to.
As recently as February 12, 2026, when Euronet reported their Q4 numbers, CEO Mike Brown seemed comfortable with the status quo, stating:
"In short, we don't view near-term uncertainty as a reason to adjust our long-term strategy."1
Additionally, the Company's Key Performance Indicators (KPIs) are all based on their lower growth legacy businesses rather than the growth businesses management seems excited to talk about in an abstract sense but not with any real specifics. For instance, shareholders are simultaneously told that the Company's ePay business is "70% digital", but the KPI continues to be total "POS Terminals" and "Retailer Locations", leaving little for investors to hang their hat on. There seems to be an unwillingness to implement real change in both communication and strategy, leading us to wonder whether it is because of lack of belief or just apathy. It is our view that five years of significant underperformance is more than enough time to conclude that some sort of pivot is needed, and we believe most shareholders share the opinion that more significant change is now warranted.
To that end, we believe it's the Board's fiduciary responsibility to immediately explore a full range of strategic alternatives. While the public market environment is challenging, recent transaction comparisons suggest there could be material and more certain upside that would be satisfying to the increasingly fatigued long-term shareholder base.
For instance, take the Brink's Company's recently announced acquisition of NCR Atleos Corporation ("Atleos") for $6.6 billion. Atleos is an ATM services business that is comparable to Euronet's EFT segment, which is widely thought to be Euronet's least valuable segment. We view Atleos as strategically and financially inferior to Euronet, yet at Atleos's same forward EBITDA or FCF multiple it would imply a stock price of between $115 and $140 for EEFT, a 62% to 97% premium to EEFT's closing price on March 2nd.2
We believe EEFT's beleaguered shareholder base would find such an outcome very attractive. Given management's seeming reluctance to make material changes in the face of ongoing erosion of investor confidence, we believe an immediate exploration of strategic alternatives is the best course of action.
We welcome the opportunity to discuss this matter in more detail at your earliest convenience.
Sincerely,
Voss Capital
About Voss Capital
Voss Capital is a fundamental research-driven, bottom-up, value-oriented manager focused on underfollowed special situations. Voss manages a long/short equity fund, the Voss Value Fund (VVF), and a long-only equity fund, the Voss Value-Oriented Special Situations (VVOSS) fund. The VVOSS fund runs roughly pari passu to the long book of the Voss Value Fund. The Funds target value-oriented special situations with an emphasis on business model analysis, properly incentivized management teams, identifiable catalysts for value realization, and securities with the potential to double in value within a three-year timeframe. Voss Capital has $1.842 billion in assets under management as of Jan. 31, 2026.
Learn more at https://www.vosscap.com/
Contact
Voss Capital, L.P.
Sharose Ayaz
(281) 770-0379
[email protected]
1 Euronet Worldwide, Inc., Q4 2025 Earnings Call Transcript, available at https://seekingalpha.com/article/4869515-euronet-worldwide-inc-eeft-q4-2025-earnings-call-transcript.
2 Source: FactSet. Based on EEFT's closing price of $71.68 on March 2, 2026.
