Evertec Q2 Earnings Call Highlights

Evertec (NYSE:EVTC) reported second-quarter 2026 revenue of approximately $275 million, up 20% from a year earlier, as organic growth, recent acquisitions and favorable currency movements lifted results. On a constant-currency basis, revenue increased about 16%.

Adjusted EBITDA rose 18% year over year to approximately $109 million, with an adjusted EBITDA margin of 39.8%, compared with 40.3% in the prior-year quarter. Adjusted net income increased 12% to $55 million, while adjusted earnings per share rose 18% to $1.05 from $0.89.

President and Chief Executive Officer Mac Schuessler said the company’s growth reflected its strategy of pursuing organic expansion, acquisitions and capital returns across Latin America and the Caribbean. During the quarter, Evertec repurchased about 2 million shares for $47 million and paid $3 million in dividends. The company had approximately $83 million remaining under its repurchase authorization at quarter-end before its board replenished the authorization.

Major Commercial Wins in Chile and Mexico

Evertec announced a multiyear agreement with Transbank, Chile’s largest merchant acquirer, under which it will operate Transbank’s transactional processing environment and selected technology platforms and services. The agreement has an initial term of at least five years.

Schuessler called the Transbank relationship “one of the most important commercial contracts we have besides Popular” and said it represents a milestone for the company’s presence in Chile. He said implementation is underway and that the migration of Transbank’s existing merchant base should allow the business to ramp quickly once deployed.

Management expects the Transbank agreement to begin contributing in the second half of 2027 and to be fully ramped in 2028.

Schuessler also discussed Evertec’s contract with Clip, a Mexican financial ecosystem provider serving nearly 1 million merchants. Evertec will provide acquiring switching technology to support Clip’s MiClip e-wallet. Schuessler said the deal is not as large as the Transbank agreement, but called it a meaningful early customer win in Mexico and a notable validation of the company’s capabilities in the market.

In Puerto Rico, the company also cited agreements with toll road operator Metropistas to support card-present and card-not-present transactions. Schuessler said the relationships demonstrate how Evertec can combine capabilities across its platform, including technology obtained through prior investments such as PlacetoPay.

Acquisitions Expand Brazil Technology Portfolio

During the quarter, Evertec completed its acquisition of Dimensa for approximately $199 million. The company said Dimensa expands its software capabilities for financial institutions and broadens its reach within Brazil’s financial-services market.

Schuessler said Dimensa’s performance was meeting and slightly exceeding the company’s original expectations. He added that customers have responded positively to Evertec’s ownership and expressed interest in investments that could improve their experience and platform capabilities.

Chief Financial Officer Karla Cruz-Jusino said Dimensa currently operates with a lower margin profile than Evertec’s existing Latin America business. However, management expects integration synergies to become more meaningful in 2027.

Evertec also completed the acquisition of BBChain, a Brazilian provider of blockchain infrastructure, tokenization, digital custody and digital-asset solutions. Schuessler said the acquisition was small financially but adds technology that could help clients digitize assets such as funds, bonds and other instruments.

“It’s still early stage,” Schuessler said, adding that BBChain has already been experimenting with government and financial-services clients in Brazil. He said Brazilian government initiatives exploring the digitization of bonds could create opportunities for the combined platform.

Segment Results and Puerto Rico Trends

Latin America Payments Solutions was the company’s largest source of revenue and EBITDA growth. Segment revenue climbed 52% year over year to $131 million, including about $9 million from favorable foreign currency movements, primarily related to the Brazilian real. Constant-currency segment revenue growth was approximately 42%.

The segment benefited from contributions from Dimensa and Tecnobank, Tecnobank’s expansion into two additional Brazilian states, business outsourcing, licensing and platform revenue, and higher transaction volume across digital solutions in Brazil. Adjusted EBITDA margin expanded about 320 basis points to 30.3%.

In Puerto Rico, Merchant Acquiring revenue increased 11% year over year, supported by higher sales volumes, new and existing merchants, improved spread and pricing initiatives. Cruz-Jusino said transaction volume grew 7% during the quarter. Higher gasoline prices and a Puerto Rico tax-relief program also contributed to results, though she said the tax-relief benefit is not expected to recur in the second half.

Payments Puerto Rico and Caribbean revenue increased 8% to $61 million. The segment benefited from approximately 12% growth in point-of-sale transactions, double-digit volume and transaction growth at ATH Móvil Business, and a non-recurring volume-based benefit. Adjusted EBITDA margin expanded approximately 210 basis points to 60.6%.

Business Solutions revenue declined 9% to $59 million, primarily due to the 10% contractual discount provided to Popular that took effect in October 2025. Management said the headwind will anniversary in the fourth quarter.

Outlook Raised

Management raised its full-year 2026 outlook, citing strength in Merchant Acquiring and Latin America Payments Solutions, somewhat higher expectations for Dimensa and foreign-exchange benefits. Evertec now expects constant-currency revenue growth of 14.5% to 15.6%, up from its prior outlook of 13.8% to 15%.

The company expects high-single-digit revenue growth in Merchant Acquiring, mid-single-digit growth in Payments Puerto Rico and Caribbean, and reported revenue growth in the low 40% range for Latin America Payments Solutions. Business Solutions revenue is expected to decline by the mid-single digits.

Evertec maintained its expectation for adjusted EBITDA margin of 39% to 40% and said it expects adjusted EPS to grow 8.8% to 11.7% from 2025’s $3.62, or 7.2% to 10% on a constant-currency basis. Dimensa is still expected to be EPS-neutral to slightly accretive in 2026.

At June 30, Evertec had approximately $1 billion in net debt and $420 million in total liquidity. Net debt to trailing 12-month adjusted EBITDA was approximately 2.55 times, within the company’s targeted range of two to three times.

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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