Evertec Q4 Earnings Call Highlights

Key Points

• Evertec closed 2025 with record revenue of $931.8 million (≈+10% YoY), adjusted EBITDA of $373.4 million and adjusted EPS of $3.62, generated ~$227 million in operating cash flow, returned ~$82 million to shareholders, and received board approval for up to a $150 million repurchase authorization.
• Growth was driven by Latin America and recent M&A: Latin America Payments & Solutions revenue rose ~22% for the year (Q4 LA revenue +~40%) aided by the Tecnobank contribution, Banco de Chile is now live, and Evertec expects to close the Dimensa acquisition in Brazil in Q2 2026 (not included in current guidance).
• For 2026 management guided revenue of $1.024–$1.036 billion (≈9.9%–11.2% growth, ~8.7%–10% constant currency), forecasted adjusted EPS to rise mid- to high-single digits, an adjusted EBITDA margin of 39.5%–40.5%, and expects stronger second-half contributions with ~120 bps of currency tailwinds.

Evertec NYSE: EVTC executives told investors the company closed 2025 with “another year of record revenue,” pointing to continued momentum in Latin America, solid transaction trends in Puerto Rico, and the impact of recent acquisitions.

On the company’s fourth-quarter earnings call, President and CEO Mac Schuessler said EVERTEC is focused on organic growth, selective M&A, and integrating recent deals. He highlighted the closing of the previously announced Tecnobank acquisition during the fourth quarter and noted the company recently announced plans to acquire Dimensa in Brazil, which is expected to close in the second quarter of 2026. Schuessler also said the company is now in production with Banco de Chile, providing acquiring, processing, and risk monitoring services.

Full-year 2025 results: record revenue and steady margins

Management reported full-year 2025 revenue of $931.8 million (approximately $932 million as referenced in prepared remarks), up about 10% year over year, or 11% on a constant currency basis. Adjusted EBITDA was $373.4 million, also up about 10%, with an adjusted EBITDA margin of 40.1% for the year. Adjusted EPS increased 10% to $3.62, driven by adjusted EBITDA growth and lower interest expense, partially offset by higher tax expense.

By segment for the full year, Schuessler said Latin America Payments and Solutions revenue rose 22% year over year, supported by acquisitions completed in late 2024 and Tecnobank’s contribution in the fourth quarter. Merchant Acquiring revenue grew 5% on higher sales volume. Payment Services Puerto Rico grew 4% on ATH Móvil Business and higher transaction volumes. Business Solutions revenue grew 3% on higher network and consulting services and project activity, partially offset by the 10% discount to Popular that began in the fourth quarter.

Cash generation and capital deployment were also emphasized. The company generated about $227 million in operating cash flows in 2025 and returned roughly $82 million to shareholders via repurchases and dividends. Management said the company ended 2025 with liquidity of about $490 million and noted the board approved a refreshed share repurchase authorization of up to $150 million through Dec. 31, 2027.

Fourth-quarter performance lifted by Latin America and Tecnobank

For the fourth quarter, EVERTEC reported revenue of $244.8 million, up about 13% from the prior year. CFO Karla Cruz-Jusino said growth was driven by continued momentum in Latin America, including a full-quarter contribution from Tecnobank, which closed Oct. 1. Puerto Rico also contributed through higher transaction volumes, ATH Móvil Business growth, and increased Merchant Acquiring sales volume.

On a constant currency basis, Cruz-Jusino said fourth-quarter revenue growth would have been approximately 11.4%, with reported results benefiting from favorable currency effects, primarily the strengthening Brazilian real.

Adjusted EBITDA for the quarter rose 11.5% to $98.8 million, with a 40.3% margin, down about 60 basis points year over year. Cruz-Jusino said quarterly results benefited from revenue outperformance, contributions from recent M&A, reacceleration in Brazil, a $7.1 million gain related to research and development tax credits, and previously announced cost initiatives.

Adjusted net income for the quarter was $59.5 million, up about 6%, while adjusted EPS was $0.93, up about 7% due to earnings growth and a lower share count. The adjusted effective tax rate was 8.1% for the quarter.

Segment details: margin pressures in Puerto Rico and Business Solutions, strong Latin America growth

• Merchant Acquiring: Fourth-quarter net revenue increased about 3% to $48.2 million. Sales volume was up 3% and transactions increased 4%. Segment adjusted EBITDA was $19.4 million, with a 40.2% margin, down about 250 basis points due to higher processing costs tied to transaction growth.
• Payment Services – Puerto Rico & Caribbean: Revenue increased about 3% to $56.4 million. Management cited double-digit growth in ATH Móvil Business volumes and transactions and said POS transactions rose about 7%. Adjusted EBITDA declined about 3% to $30.3 million, and margin fell 350 basis points to 53.7%, driven mainly by higher operating expenses including increased cloud costs and higher POS repair costs.
• Latin America Payments and Solutions: Revenue jumped about 40% to $109.3 million, aided by Tecnobank and contributions from Grandata and Nuvei that anniversary during the quarter. Cruz-Jusino said results also reflected double-digit organic growth across the region, including reacceleration in Brazil supported by modernization initiatives, contract repricing tailwinds, and a strong pipeline. Currency tailwinds added about four points to segment growth; on a constant currency basis, revenue growth would have been about 36%. Adjusted EBITDA rose about 39% to $34.9 million, with a 32% margin.
• Business Solutions: Revenue fell about 7% to $58.3 million, in line with expectations, primarily due to the 10% Popular discount effective in October, partially offset by a CPI-based increase capped at 1.5% for 2025. Adjusted EBITDA declined about 15% to $20.6 million and margin fell 370 basis points to 35.3%, as expenses were relatively consistent while revenue declined.

2026 outlook: revenue guided above $1.0 billion; Dimensa not included

For 2026, management guided to reported revenue of $1.024 billion to $1.036 billion, implying 9.9% to 11.2% growth. The outlook includes about 120 basis points of foreign currency tailwinds; on a constant currency basis, revenue is expected to grow 8.7% to 10%.

Adjusted EPS is expected to rise 6.1% to 9.4% from 2025’s $3.62 (or 4.7% to 8% on a constant currency basis). The company’s outlook assumes an adjusted EBITDA margin of 39.5% to 40.5% and an adjusted effective tax rate of 11% to 12%.

By segment, Cruz-Jusino said the company expects mid-single-digit growth in Merchant Acquiring and in Payment Services Puerto Rico and Caribbean; mid-20% growth in Latin America Payments and Solutions (low 20% on a constant currency basis); and a low- to mid-single-digit decline in Business Solutions due to the reset from the Popular discount. She added that management expects first-half performance to resemble how the company exited the fourth quarter, with a more meaningful contribution from implementations and client wins in the second half, particularly in Latin America.

Cruz-Jusino also said the 2026 outlook does not include any contribution from the Dimensa acquisition because it has not yet closed, and the company expects to update guidance after closing.

M&A, pipeline, and AI commentary

In the Q&A, Schuessler described the Latin America pipeline as “healthy” and pointed to recent wins and implementations including Banco de Chile (now live) and Grupo Aval in Colombia (in implementation). He said the company expects previously booked deals to have an impact in 2026 and anticipates that cadence to continue.

On Dimensa, Schuessler said the company is “excited” by the reacceleration of Sinqia and views it as a platform for additional acquisitions, citing Tecnobank and now Dimensa. He described Dimensa as a joint venture between TOTVS and B3 and said it expands EVERTEC into a new vertical with insurance, adds products, and offers “significant cross-sell opportunities” along with potential cost synergies. He also said Dimensa has 15,000 clients.

Schuessler added that EVERTEC continues to look at M&A opportunities and noted the company’s leverage remains low, providing capacity, while emphasizing a focus on integrating Dimensa once acquired.

Separately, management said the company is embedding AI across products in areas such as risk management, fraud monitoring, and credit decisioning. Schuessler highlighted Grandata’s AI-native proprietary credit scoring models leveraging telco data, efforts to enable self-service capabilities, and early productivity gains in software development and quality assurance. The company said it has a governance framework centered on data security and responsible AI, supported by centers of excellence and employee upskilling that reached more than 4,500 employees in 2025.

About Evertec NYSE: EVTC

Evertec, Inc NYSE: EVTC is a leading full‐service transaction processor in Puerto Rico, Latin America and the Caribbean. The company delivers integrated technology solutions for electronic payments, providing financial institutions, merchants and governments with secure and scalable platforms to accept, process and settle transactions across card, ATM, debit and digital channels. Headquartered in San Juan, Puerto Rico, Evertec supports both domestic and cross‐border payment flows, enabling clients to streamline operations and expand their digital commerce capabilities.

Evertec's suite of services includes merchant acquiring, payment gateway connectivity, ATM and point‐of‐sale network management, and fraud prevention solutions.

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