Shares fell 14.7% after the quarter as investors reacted negatively to cautious forward commentary and noticeable softness in non-accelerator businesses, particularly remittances and ATM transactions, despite strong growth in digital accelerators.
- Digital accelerators drove 31% year-over-year revenue growth in Q2 and 35% year-to-date, supported by Ria Digital, Issuing, and Merchant Services.
- Non-accelerator segments showed softness due to U.S. immigration policy impacts on remittances and 5%-8% lower U.S. to Europe airline bookings affecting ATM transaction volumes.
- Management acknowledged near-term headwinds and slower volume growth in traditional businesses, tempering near-term outlook.
- CoreCard platform wins with Unibanca and Upgrade demonstrated strategic value but did not offset broader segment deceleration concerns.
- Returned capital to shareholders via $50 million share repurchase during the quarter, reflecting confidence in the long-term strategy despite short-term pressures.
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