[EVERTEC Second Quarter 2025 Earnings Release](index=1&type=section&id=EVERTEC%20Second%20Quarter%202025%20Earnings%20Release) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) The company reported strong organic revenue growth, with total revenue up 8% and net income up 27% Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $229.6M | $212.0M | +8% | | Constant Currency Revenue | $232.9M | - | +10% | | GAAP Net Income (attributable to common shareholders) | $40.5M | $31.9M | +27% | | GAAP Diluted EPS | $0.62 | $0.49 | +27% | | Adjusted EBITDA | $92.6M | $86.1M | +8% | | Adjusted Net Income | $57.7M | $53.8M | +7% | | Adjusted Diluted EPS | $0.89 | $0.83 | +7% | - **Revenue growth** was driven by organic expansion across all segments and contributions from acquisitions completed in late 2024[4](index=4&type=chunk) - Growth was driven by **improved spreads** and **higher sales volume** in Merchant Acquiring, increased **ATH Movil revenue**, and broad organic growth in Latin America[4](index=4&type=chunk) - The increase in **GAAP Net Income** was primarily due to **higher revenues**, lower depreciation and amortization, and reduced SG&A and interest expenses[5](index=5&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) The company repurchased $3.7 million in stock and increased its share repurchase authorization to $150 million - In Q2 2025, the company repurchased **101,890 shares** at an average price of $36.22 per share, for a total of **$3.7 million**[9](index=9&type=chunk) - On July 30, 2025, the Board of Directors increased the total share repurchase authorization to **$150 million** and extended the program through December 31, 2026[10](index=10&type=chunk) [Full Year 2025 Outlook](index=2&type=section&id=2025%20Outlook) The company raised its full-year 2025 guidance, projecting revenue growth of 6.6% to 7.6% Revised Full Year 2025 Financial Outlook | Metric | 2025 Outlook | 2024 Actual | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | $901M - $909M | $845M | 6.6% - 7.6% | | Constant Currency Revenue Growth | - | - | 7.8% - 8.7% | | Adjusted EPS | $3.44 - $3.52 | $3.28 | 4.8% - 7.0% | | Constant Currency Adjusted EPS Growth | - | - | 6.3% - 8.5% | | Capital Expenditures | ~$85M | - | (No change) | | Adjusted Effective Tax Rate | ~6% - 7% | - | (No change) | [Financial Statements](index=5&type=section&id=Financial%20Statements) This section provides unaudited consolidated statements of income, balance sheets, and cash flows for Q2 2025 [Consolidated Statements of Income](index=5&type=section&id=Schedule%201%3A%20Unaudited%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20(Loss)) Q2 2025 vs Q2 2024 Income Statement Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $229,607 | $211,978 | | Income from operations | $56,134 | $43,360 | | Income before income taxes | $45,043 | $33,624 | | Net income attributable to common stockholders | $40,465 | $31,901 | | Diluted EPS | $0.62 | $0.49 | [Consolidated Balance Sheets](index=6&type=section&id=Schedule%202%3A%20Unaudited%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in thousands) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $290,578 | $273,645 | | Total current assets | $570,643 | $529,065 | | Total assets | $1,961,345 | $1,857,611 | | Total liabilities | $1,304,641 | $1,338,350 | | Total stockholders' equity | $612,330 | $472,524 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Schedule%203%3A%20Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $86,128 | $131,340 | | Net cash used in investing activities | ($42,680) | ($50,167) | | Net cash used in financing activities | ($40,325) | ($85,776) | [Segment Performance](index=10&type=section&id=Schedule%204%3A%20Unaudited%20Segment%20Information) All business segments contributed to growth, with Latin America showing the highest revenue increase Q2 2025 Segment Revenue and Adjusted EBITDA (in thousands) | Segment | Revenue Q2 2025 | Revenue Q2 2024 | Adj. EBITDA Q2 2025 | Adj. EBITDA Q2 2024 | | :--- | :--- | :--- | :--- | :--- | | Payment Services - Puerto Rico & Caribbean | $56,421 | $54,199 | $33,028 | $31,358 | | Latin America Payments and Solutions | $86,055 | $74,669 | $23,350 | $17,500 | | Merchant Acquiring, net | $47,292 | $45,319 | $20,002 | $18,248 | | Business Solutions | $64,519 | $62,336 | $26,032 | $29,769 | [GAAP to Non-GAAP Reconciliation](index=12&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section details the reconciliation of GAAP measures like Net Income and EPS to their non-GAAP counterparts Q2 2025 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $40,973 | | (+) Income tax expense | $4,070 | | (+) Interest expense, net | $13,640 | | (+) Depreciation and amortization | $28,309 | | **EBITDA** | **$86,992** | | (+/-) Other adjustments | $5,573 | | **Adjusted EBITDA** | **$92,565** | Q2 2025 Reconciliation of GAAP EPS to Adjusted EPS | Line Item | Per Share Amount | | :--- | :--- | | Diluted EPS (GAAP) | $0.62 | | (+) Adjustments | $0.27 | | **Adjusted EPS (Non-GAAP)** | **$0.89** | [Important Disclosures](index=2&type=section&id=Important%20Disclosures) This section defines the non-GAAP measures used and outlines forward-looking statements and associated risks - The company uses non-GAAP measures to supplement GAAP results for a better view of operating performance[13](index=13&type=chunk)[15](index=15&type=chunk) - **Adjusted EBITDA** excludes items such as share-based compensation, M&A transaction fees, and unrealized foreign currency gains/losses[18](index=18&type=chunk) - Forward-looking statements are subject to risks including the company's relationship with **Popular, Inc**, IT disruptions, and regional economic stability[23](index=23&type=chunk)[24](index=24&type=chunk)

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Evertec, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - Evertec is expected to report quarterly earnings of $0.86 per share, reflecting a +3.6% year-over-year change [3] - Revenues are projected to be $221.88 million, which is a 4.7% increase from the previous year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 0.35% over the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +1.16% suggests analysts have recently become more optimistic about Evertec's earnings prospects [12] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - Evertec currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Evertec exceeded the expected earnings of $0.81 per share by delivering $0.87, resulting in a +7.41% surprise [13] - The company has beaten consensus EPS estimates in each of the last four quarters [14] Industry Comparison - Paypal, a competitor in the financial transaction services industry, is expected to report earnings of $1.3 per share, reflecting a +9.2% year-over-year change, with revenues projected at $8.1 billion, up 2.7% [18] - Paypal has a positive Earnings ESP of +0.32% and a Zacks Rank of 2, indicating a strong likelihood of beating consensus EPS estimates [19]

Core Insights - Evertec (EVTC) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 14.12% [1] - The company reported earnings of $0.81 per share for the most recent quarter, falling short of the expected $0.87, resulting in a surprise of 7.41% [2] - In the previous quarter, Evertec exceeded expectations by reporting $0.87 per share against a consensus estimate of $0.72, achieving a surprise of 20.83% [2] Earnings Estimates and Predictions - Earnings estimates for Evertec have been trending higher, supported by its history of earnings surprises [5] - The stock currently has a positive Zacks Earnings ESP of +1.16%, indicating bullish sentiment among analysts regarding its near-term earnings potential [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report [8] Earnings ESP and Market Behavior - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - A negative Earnings ESP can diminish predictive power but does not necessarily indicate an earnings miss [9]

Financial Performance - Revenues for Q1 2025 were $228,792 thousand, an increase of 11.4% compared to $205,318 thousand in Q1 2024[19] - Net income attributable to EVERTEC, Inc.'s common stockholders for Q1 2025 was $32,703 thousand, up 104.3% from $15,979 thousand in Q1 2024[19] - Operating income for Q1 2025 was $49,500 thousand, representing a 50.8% increase from $32,803 thousand in Q1 2024[19] - Net income for Q1 2025 was $33,091,000, compared to $16,387,000 in Q1 2024, representing a 102% increase[23] - Net income per common share - basic for Q1 2025 was $0.51, compared to $0.25 in Q1 2024, reflecting a 104% increase[19] - Segment Adjusted EBITDA for the three months ended March 31, 2025, was $98.903 million, compared to $85.908 million for the same period in 2024, reflecting a growth of about 15.1%[108] Assets and Liabilities - Total assets increased to $1,917,501 thousand as of March 31, 2025, compared to $1,857,611 thousand at the end of 2024, reflecting a growth of 3.2%[18] - The total liabilities decreased slightly to $1,332,385 thousand as of March 31, 2025, from $1,338,350 thousand at the end of 2024[18] - As of March 31, 2025, total debt amounted to $956.65 million, a slight decrease from $965.34 million at December 31, 2024[42] - The Company has a total of $423.6 million in unpaid principal balance for the TLA Facility and $540.0 million for the TLB Facility as of March 31, 2025[46] Cash Flow and Investments - Cash flows from operating activities decreased to $37,643,000 in Q1 2025 from $40,702,000 in Q1 2024, a decline of 5.1%[23] - Total cash, cash equivalents, and restricted cash at the end of Q1 2025 was $307,618,000, down from $337,587,000 at the end of Q1 2024[23] - The company’s net cash used in investing activities was $22,324,000 in Q1 2025, slightly higher than $21,994,000 in Q1 2024[23] Acquisitions - The Company acquired 100% of Grandata, Inc for an aggregate purchase price of $33.3 million, enhancing its product offerings in data analytics focused on underbanked populations[32] - The Company also acquired Nubity, Inc for $11.0 million, a cloud services provider specializing in AWS cloud infrastructure management[32] - Goodwill related to both acquisitions is preliminarily estimated at approximately $7.4 million for Nubity and $13.77 million for Grandata, with no goodwill deductible for income tax purposes[33][35] Shareholder Returns - The company declared a quarterly cash dividend of $0.05 per share, paid on March 21, 2025[89] - The company paid cash dividends of $3,181,000 in Q1 2025, compared to $3,273,000 in Q1 2024[23] Risk Factors - The company highlighted the potential risks associated with its merger with Sinqia and the impact of leverage on its financial flexibility[16] - Rising input costs, including wages and benefits, could negatively impact the company's results of operations and financial condition[177] - The company is facing a rising interest rate environment, which has adversely affected its cost of funding and increased volatility in foreign currency exchange rates[177] Revenue Segmentation - The Payment Services - Puerto Rico & Caribbean segment generated revenues of $37.299 million for the three months ended March 31, 2025, up from $33.944 million in 2024, indicating an increase of approximately 7.0%[100][102] - The Latin America Payments and Solutions segment reported revenues of $78.280 million for the three months ended March 31, 2025, compared to $70.147 million in 2024, marking an increase of around 11.6%[100][102] - The Merchant Acquiring segment's revenues were $47.649 million for the three months ended March 31, 2025, up from $43.099 million in 2024, which is an increase of approximately 10.5%[100][102] - Business Solutions segment revenues increased to $65.564 million for the three months ended March 31, 2025, from $58.128 million in 2024, reflecting a growth of about 12.7%[100][102] Foreign Currency and Interest Rates - The company recognized non-cash unrealized foreign currency remeasurement losses of $0.8 million, a decrease from losses of $4.5 million for the same period in 2024[176] - As of March 31, 2025, the company had an unfavorable foreign currency translation adjustment of $91.3 million, improved from an unfavorable adjustment of $138.0 million as of December 31, 2024[176] - A hypothetical 100 basis point increase in interest rates would increase annual interest expense by approximately $4.1 million based on the company's outstanding debt as of March 31, 2025[171]

Core Insights - Evertec reported revenue of $228.79 million for the quarter ended March 2025, reflecting an 11.4% increase year-over-year and a surprise of +4.88% over the Zacks Consensus Estimate of $218.15 million [1] - The company's EPS for the quarter was $0.87, up from $0.72 in the same quarter last year, with a surprise of +7.41% compared to the consensus estimate of $0.81 [1] Revenue Breakdown - Payment Services - Puerto Rico & Caribbean generated $55.16 million, exceeding the average estimate of $54.90 million, representing a year-over-year increase of +4% [4] - Payment Services - Latin America reported revenues of $83.78 million, surpassing the average estimate of $81.76 million, with a year-over-year growth of +12.9% [4] - Merchant acquiring, net revenues were $47.65 million, above the average estimate of $45.83 million, showing a +10.6% increase year-over-year [4] - Business solutions revenues reached $65.56 million, exceeding the average estimate of $60.27 million, with a year-over-year change of +12.8% [4] - Corporate and Other segment reported a loss of -$23.35 million, better than the average estimate of -$24.23 million, with a year-over-year change of +0.9% [4] Stock Performance - Over the past month, Evertec's shares have returned +8.2%, while the Zacks S&P 500 composite has changed by +10.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Earnings Performance - Evertec reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.81 per share, and up from $0.72 per share a year ago, representing an earnings surprise of 7.41% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] Revenue Performance - Evertec posted revenues of $228.79 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.88%, and up from $205.32 million year-over-year [2] - The company has also topped consensus revenue estimates for four consecutive quarters [2] Stock Performance and Outlook - Evertec shares have declined approximately 0.1% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.89 on revenues of $224.81 million, and for the current fiscal year, it is $3.41 on revenues of $893.96 million [7] Industry Context - The Financial Transaction Services industry, to which Evertec belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $228.8 million, an 11.4% increase year-over-year, with currency headwinds of approximately 3.3% [6][13] - Adjusted EBITDA was $89.4 million, up approximately 14% year-over-year, with an adjusted EBITDA margin of 39.1%, reflecting a 100 basis point increase from the previous year [6][14] - Adjusted EPS was $0.87, a 21% increase year-over-year, driven by strong adjusted EBITDA growth and lower interest expenses [7][14] - Operating cash flows generated were approximately $37.6 million, with liquidity remaining strong at approximately $460 million as of March 31 [7][22] Business Line Data and Key Metrics Changes - Merchant Acquiring revenue grew 11% year-over-year to $47.6 million, benefiting from improved spreads and increased sales volumes [8][15] - Payments Puerto Rico revenue increased by 4% to $55.2 million, driven by ATH Mobile and higher POS transaction volumes [9][16] - Latin America Payments and Solutions revenue grew 13% year-over-year to $83.8 million, or 22% in constant currency, with strong organic growth driven by the GETNA Chile relationship [10][18] - Business Solutions revenue increased by 13% to $65.6 million, primarily due to key projects and one-time hardware and software sales [19] Market Data and Key Metrics Changes - The Puerto Rico economy remains stable, with total employment increasing and an unemployment rate around 5.5% [9] - LATAM revenue grew 13% year-over-year, with organic growth driven by initiatives in Brazil and the GETNA Chile relationship [10][18] Company Strategy and Development Direction - The company continues to focus on M&A as a key part of its strategy, with a robust pipeline of potential acquisitions [33] - The company is optimistic about its ability to navigate through macroeconomic uncertainties and is closely monitoring potential impacts on its business [26] Management's Comments on Operating Environment and Future Outlook - Management noted strong consumer confidence contributing to performance across segments, particularly in Merchant Acquiring and Latin America [30] - The company expects constant currency revenue growth for 2025 to be between $903 million to $911 million, representing a growth of 6.8% to 7.7% year-over-year [23] - Management acknowledged potential headwinds from customer attrition, particularly with MercadoLibre, impacting future performance [24] Other Important Information - The company has not seen material disruptions in any business segments but remains cautious about potential indirect impacts from tariffs and economic conditions in the countries served [11][12] - The adjusted effective tax rate for the quarter was 5.3%, aligning with expectations [14] Q&A Session Summary Question: Revenue performance and outperformance relative to expectations - Management indicated that all segments outperformed original expectations, with strong consumer confidence and volume growth contributing to the results [30] Question: M&A strategy and positioning - The company remains focused on M&A, with a robust pipeline and optimism about potential acquisitions [33] Question: Performance in Brazil and relative growth - Management noted that Brazil's growth is back within expectations, driven by leadership changes and specific initiatives [39] Question: Economic conditions in LATAM and potential monitoring - Brazil is highlighted as a significant area to monitor due to currency fluctuations and economic conditions [40] Question: GetNet Chile partnership and its impact - The GetNet partnership is fully rolled out, contributing to strong performance, with over 200,000 active merchants using the technology [49] Question: Merchant margins and future trends - Margins are expected to face pressure moving forward due to the lapping of pricing actions and a decline in average ticket size [56] Question: Impact of MercadoLibre exit on future quarters - The impact of MercadoLibre's exit will not be fully felt until Q3, with partial effects expected in Q2 [58] Question: Benefits from hurricane relief funds in Puerto Rico - Management expects continued flow of relief funds, contributing to economic resilience in Puerto Rico [61]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $228.8 million, an 11.4% increase year over year, with a currency headwind of approximately 3.3% [5][12] - Adjusted EBITDA was $89.4 million, up approximately 14% year over year, with an adjusted EBITDA margin of 39.1%, reflecting a 100 basis point increase from the previous year [5][12] - Adjusted EPS was $0.87, a 21% increase year over year, driven by strong adjusted EBITDA growth and lower interest expenses [6][13] - Operating cash flows generated were approximately $37.6 million, with liquidity remaining strong at approximately $460 million as of March 31 [6][20] Business Line Data and Key Metrics Changes - Merchant Acquiring revenue grew 11% year over year to $47.6 million, benefiting from higher spreads and sales volume growth [14] - Payments Puerto Rico revenue increased by 4% to $55.2 million, driven by ATH Mobile and higher POS transaction volumes [15] - Latin America Payments and Solutions revenue rose 13% year over year to $83.8 million, or 22% on a constant currency basis, with double-digit organic growth [16] - Business Solutions revenue increased approximately 13% to $65.6 million, primarily due to projects completed in the previous year and nonrecurring hardware and software sales [17] Market Data and Key Metrics Changes - The Puerto Rico economy remains stable, with total employment increasing and an unemployment rate near 5.5% [7] - In LATAM, revenue grew 13% year over year, with organic growth driven by the GETNA Chile relationship and a reacceleration in Brazil [8][16] - Currency fluctuations, particularly the devaluation of the Brazilian real, presented a 9% headwind in LATAM revenue [16] Company Strategy and Development Direction - The company continues to focus on M&A as a key part of its strategy, with a robust pipeline of potential acquisitions [31] - The company is optimistic about its ability to navigate through macroeconomic uncertainties and is closely monitoring potential impacts on its business [25] Management's Comments on Operating Environment and Future Outlook - Management noted strong consumer confidence contributing to performance, particularly in Merchant Acquiring and LATAM segments [29] - The company expects constant currency revenue growth for 2025 to be between $903 million to $911 million, representing a growth of 6.8% to 7.7% year over year [21] - Management acknowledged potential headwinds from customer attrition, particularly with MercadoLibre, impacting future performance [22] Other Important Information - The company paid down approximately $11.6 million in debt and returned $3.2 million to shareholders through dividends during the quarter [19] - The net debt position at quarter end was $704 million, with a net debt to trailing twelve-month adjusted EBITDA ratio of approximately 2.04 times [20] Q&A Session Summary Question: Revenue performance and outperformance relative to expectations - Management indicated that all segments outperformed original expectations, particularly in Merchant Acquiring and LATAM, driven by strong consumer confidence and volume growth [29] Question: M&A strategy and positioning - Management confirmed a focus on M&A, with a robust pipeline and ongoing interest in acquiring sizable assets [31] Question: Performance in Brazil and Chile - Management noted that Brazil's growth is back within expectations due to leadership changes and specific initiatives [36] Question: Economic monitoring in LATAM - Management highlighted Brazil as a significant focus due to currency fluctuations and potential economic impacts [38] Question: GetNet Chile partnership progress - Management confirmed that the GetNet partnership is fully rolled out and performing well, contributing to strong segment growth [43] Question: Merchant margins and future trends - Management explained that while margins increased due to pricing actions and transaction types, they expect pressure on margins moving forward [51] Question: Impact of MercadoLibre exit - Management indicated that the impact of MercadoLibre's exit will not be fully felt until Q3, with partial effects in Q2 [54] Question: Relief funds from previous hurricanes - Management confirmed that relief funds are continuing to flow through and positively impacting economic conditions in Puerto Rico [56]

This presentation will reference certain non-GAAP financial information. For a description and reconciliation of non-GAAP measures presented in this document, please see the appendix attached to this presentation or visit the Investor Relations section of the Evertec website at www.evertecinc.com. Business Summary Mac Schuessler, President and CEO First Quarter Earnings Conference call May 7, 2025 Foward looking statements Certain statements in this presentation constitute "forward-looking statements" withi ...

Exhibit 99.1 EVERTEC REPORTS FIRST QUARTER 2025 RESULTS Raises full year outlook SAN JUAN, PUERTO RICO – May 7, 2025 – EVERTEC, Inc. (NYSE: EVTC) ("Evertec" or the "Company") today announced results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights and Recent Highlights Mac Schuessler, President and Chief Executive Officer stated "We are pleased to report another quarter of strong revenue and earnings growth, which demonstrates our continued focus on sustainable execution. Given our ...