Core Viewpoint - The Indonesian Minister of Economy reported "positive" progress in tariff discussions with U.S. Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai [1] Group 1 - The discussions are part of ongoing efforts to track global trade dynamics [1]

Core Viewpoint - Brazilian coffee exporters are actively negotiating with the United States and hope that common sense will prevail, as U.S. consumers will bear 50% of the tariff burden [1] Group 1 - The director of the Brazilian Coffee Exporters Council indicates that exporters are engaged in positive discussions with the U.S. [1] - There is a cautious observation of the tariff discussions in the U.S. by Brazilian exporters [1]

Group 1 - Malaysia's Ministry of Trade emphasizes the importance of sincere discussions with the United States to address unresolved issues [1] - The focus is on clarifying the scope and impact of the announced tariffs [1]

Group 1 - Moody's downgraded the U.S. sovereign credit rating from Aaa to Aa1, with the U.S. Treasury Secretary expressing skepticism towards Moody's, labeling it as a "lagging indicator" [1] - U.S. Treasury Secretary Basant stated that tariff discussions are focused on 18 key partnerships, warning that tariffs could revert to levels seen on April 2 if negotiations are not sincere [1] - Exports from the EU to the U.S. surged by 59% ahead of Trump's "liberation day," resulting in a record trade surplus [1] Group 2 - The Swiss National Bank's president reported constructive discussions with the U.S. regarding foreign exchange issues, asserting that Switzerland is not a currency manipulator [1] - ECB Governing Council member Villeroy hinted at the possibility of lowering interest rates below 2%, indicating no reason for a further 50 basis point cut in the foreseeable future [1] - ECB Chief Economist Lane announced that an updated strategy will be released in the second half of the year, incorporating U.S. tariff uncertainties into June's forecasts [1] Group 3 - The Deputy Governor of the Bank of Japan, Ueda Shinichi, indicated that if the economy and prices improve as predicted, further interest rate hikes will continue [1] - Canadian Finance Minister noted that most tariffs on the U.S. remain in place [1]

Group 1 - The U.S. Treasury Secretary, Janet Yellen, stated that the U.S. is focusing tariff discussions on 18 key partnerships [1] - This strategic focus aims to enhance trade relations and address economic challenges [1] - The emphasis on these partnerships indicates a shift in U.S. trade policy towards more targeted negotiations [1] Group 2 - The discussions are part of a broader effort to strengthen economic ties and ensure fair trade practices [1] - The identification of 18 key partners suggests a prioritization of relationships that could significantly impact U.S. economic interests [1] - This approach may lead to potential changes in tariff structures and trade agreements with these selected partners [1]

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]