Financial Data and Key Metrics Changes - Revenue for the second quarter was $230 million, an 8% increase over the prior year, while constant currency revenue was approximately $233 million, representing growth of 10% [5][11] - Adjusted EBITDA increased to $93 million, up approximately 8% year over year, with an adjusted EBITDA margin of 40.3% for the quarter [5][11] - Adjusted EPS of $0.89 was up 7% year over year, driven by strong adjusted EBITDA growth and lower interest expense [5][12] - Operating cash flow for the first half of the year was approximately $86 million, with liquidity remaining strong at approximately $485 million as of June 30 [5][6] Business Line Data and Key Metrics Changes - Merchant Acquiring revenue grew 4% year over year to $47.3 million, driven by improved spread and sales volume growth [13] - Payment Services Puerto Rico revenue was $56.4 million, an increase of approximately 4% from the prior year, primarily driven by ATH Mobile and POS transaction growth [14] - Latin America Payments and Solutions revenue increased 15% year over year or 20% on a constant currency basis, benefiting from organic growth and acquisitions [15] - Business Solutions segment revenue increased approximately 4% to $64.5 million, primarily due to projects completed in the prior year [17] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remains stable at about 5.2%, and passenger traffic in San Juan Airport was up approximately 11% year over year [6] - In Latin America, the company experienced strong performance in Brazil and Chile, with continued organic growth and contributions from recent acquisitions [15][16] Company Strategy and Development Direction - The company plans to continue focusing on technology modernization, repricing initiatives, and margin optimization to drive growth [28][30] - A refresh of the share repurchase program was approved, allowing the company to repurchase up to $150 million of its common stock through December 31, 2026 [9] - The company expects to return cash to shareholders through dividends and share repurchases while investing in long-term growth opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to convert opportunities in the active pipeline into wins over the next quarters [8] - The outlook for the second half of the year is better than initially thought, with expectations of continued strong performance in Latin America [34] - The company anticipates revenue growth of 6.6% to 7.6% for the full year, with adjusted EPS expected to grow between 4.87% from the previous year [21][25] Other Important Information - The company’s net debt position at quarter end was $673.6 million, with a weighted average interest rate of approximately 6.55% [20] - The effective tax rate for the quarter was 7.1%, with expectations of a gradual improvement in overall margin [12][24] Q&A Session Summary Question: Update on strategic initiatives and their progress - Management highlighted that the entire segment grew double digits, with significant focus on technology modernization and repricing initiatives [28][30] Question: Outlook for the second half and macroeconomic impacts - Management indicated that the second half outlook is better, with conservatism included regarding potential tariff impacts [34][36] Question: Insights on the active pipeline and business opportunities - Management confirmed a very active organic pipeline and expressed optimism about upcoming announcements [40][42] Question: Performance of ATH Mobile and its growth drivers - Management noted that ATH Mobile's growth of 17% is driven by increased usage and network effects in Puerto Rico [44] Question: Competitive advantages in Latin America - Management emphasized proprietary technology, industry expertise, and a strong local presence as key competitive advantages [63][67]

Financial Performance - Total revenue reached $229.6 million, reflecting an 8% year-over-year growth, or 10% on a constant currency basis[10] - Adjusted EBITDA was $92.6 million, an 8% increase year-over-year, with an adjusted EBITDA margin of 40.3%[10] - Adjusted EPS grew by 7% year-over-year to $0.89[10] - Operating cash flow was approximately $86.1 million[9] Segment Performance - Merchant Acquiring revenue increased by 4% year-over-year to $47.3 million, with adjusted EBITDA up 10% to $20.0 million[23, 14] - Payment Services in Puerto Rico and the Caribbean saw a 4% revenue increase to $56.4 million, with adjusted EBITDA up 5% to $33.0 million[25, 14] - Latin America Payments and Solutions experienced a 15% revenue growth to $86.1 million, or 20% on a constant currency basis, with adjusted EBITDA up 33% to $23.3 million[28, 19] - Business Solutions revenue grew by 4% year-over-year to $64.5 million, but adjusted EBITDA decreased by 13% to $26.0 million[30, 14] Liquidity and Capital Allocation - The company returned $6.4 million to shareholders through dividends and executed $3.7 million in share repurchases[11] - Liquidity stood at $484.5 million as of June 30, 2025[11] Outlook - The company projects revenue between $901 million and $909 million, representing a GAAP growth of 6.6% to 7.6%[40] - Adjusted EPS is projected to be between $3.44 and $3.52, reflecting a growth of 4.8% to 7.0%[40]

[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]