Evertec(EVTC) - 2025 Q2 - Quarterly Results

EVERTEC Second Quarter 2025 Earnings Release Second Quarter 2025 Financial Highlights 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] - 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] - The increase in GAAP Net Income was primarily due to higher revenues, lower depreciation and amortization, and reduced SG&A and interest expenses[5] Shareholder Returns 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] - 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] Full Year 2025 Outlook 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 This section provides unaudited consolidated statements of income, balance sheets, and cash flows for Q2 2025 Consolidated Statements of Income 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 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 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 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 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 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][15] - Adjusted EBITDA excludes items such as share-based compensation, M&A transaction fees, and unrealized foreign currency gains/losses[18] - Forward-looking statements are subject to risks including the company's relationship with Popular, Inc, IT disruptions, and regional economic stability[23][24]