EVERTEC (NYSE:EVTC) Q4 2025 Earnings call February 26, 2026 04:30 PM ET Company ParticipantsKarla Cruz-Jusino - CFOLoyda Montes Santiago - Director of Investor RelationsMac Schuessler - President and CEOConference Call ParticipantsCris Kennedy - CFA and Senior Equity Research AnalystLiya Rosenstein - AnalystMadison Suhr - Research AnalystOperatorGood afternoon, everyone, and welcome to EVERTEC's fourth quarter and full year 2025 earnings conference call. Today's conference call is being recorded. At this ti ...

EVERTEC (NYSE:EVTC) Q4 2025 Earnings call February 26, 2026 04:30 PM ET Company ParticipantsKarla Cruz-Jusino - CFOLoyda Montes Santiago - Director of Investor RelationsMac Schuessler - President and CEOConference Call ParticipantsChristopher Kennedy - Research AnalystLiya Rosenstein - AnalystMadison Suhr - Research AnalystOperatorGood afternoon, everyone, and welcome to EVERTEC's fourth quarter and full year 2025 earnings conference call. Today's conference call is being recorded. At this time, I'd like to ...

EVERTEC (NYSE:EVTC) Q4 2025 Earnings call February 26, 2026 04:30 PM ET Speaker6Good afternoon, everyone, and welcome to EVERTEC's fourth quarter and full year 2025 earnings conference call. Today's conference call is being recorded. At this time, I'd like to turn the floor over to Loyda Montes Santiago of Investor Relations. Please go ahead.Speaker3Thank you. Good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer, and Karla Cruz-Jusino, Chief Financial Officer. Before w ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $228.6 million, an 8% increase year-over-year, with constant currency revenue also growing by 8% [8][13] - Adjusted EBITDA increased to $92.6 million, up approximately 6% year-over-year, with an adjusted EBITDA margin of 40.5% [8][15] - Adjusted EPS was $0.92, reflecting a 7% increase year-over-year, driven by strong adjusted EBITDA growth and lower interest expense [8][15] - Operating cash flow for the first nine months of the year was approximately $157 million, with liquidity at approximately $518.6 million as of September 30 [8][21] Business Line Data and Key Metrics Changes - Merchant acquiring revenue grew 3% year-over-year to $46.8 million, driven by higher sales volume [9][16] - Payment services in Puerto Rico grew 5% year-over-year to $55.2 million, primarily due to strong performance in ATH Móvil [9][17] - Latin America payments and solutions revenue increased 19% year-over-year to $90.4 million, with double-digit organic growth [10][18] - Business solutions revenue increased approximately 1% to $61.7 million, primarily due to projects completed during the quarter [19] Market Data and Key Metrics Changes - Economic conditions in Puerto Rico remained favorable, with an unemployment rate steady at 5.6% and strong consumer spending [9] - Latin America saw a robust pipeline and significant wins, including contracts with Banco de Chile and Financiaria O in Peru [10][11] Company Strategy and Development Direction - The company is focused on expanding its presence in Brazil through acquisitions, such as TechnoBank, which enhances its financial technology capabilities [11][12] - Continued investment in dynamic markets is a cornerstone of the company's strategy, aiming for diversification and growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, particularly in Latin America, and highlighted the successful integration of recent acquisitions [10][33] - The company anticipates strong top-line growth in 2026, supported by strategic priorities and cost initiatives [29] Other Important Information - A cybersecurity incident was reported, but it was contained and did not impact other products or services [5][6] - The company has a strong cash position, with net debt at $631.8 million and a weighted average interest rate of approximately 6.24% [21] Q&A Session Summary Question: Insights on LatAm growth and market resonance - Management noted durable growth in LatAm, with successful product scaling and significant deals like Banco de Chile [31][32] Question: Contribution from cost of living adjustments - CPI adjustments were discussed, with current caps and future expectations outlined [34][37] Question: Impact of government shutdown on Puerto Rican economy - No direct impact observed yet, but monitoring is ongoing due to reliance on federal funds [42] Question: Status of the cybersecurity incident and business momentum - No adverse impact on business momentum was reported, with systems now hardened [47][48] Question: Margin performance and expectations - Margins were in line with expectations, with a noted decline due to transaction volume dynamics [49][50] Question: Capital allocation and M&A appetite - The company is evaluating capital allocation, including potential share buybacks and M&A opportunities [52][56]