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 $6.4 million returned to shareholders through dividends and $3.7 million in share repurchases [5][18] Business Line Data and Key Metrics Changes - Merchant Acquiring revenue grew 4% year over year to $47.3 million, with adjusted EBITDA of $20 million and an adjusted EBITDA margin of 42.3% [13] - Payment Services Puerto Rico revenue was $56.4 million, an increase of approximately 4% from the prior year, with adjusted EBITDA of $33 million and a margin of 58.5% [14] - Latin America Payments and Solutions revenue increased 15% year over year to $86.1 million, with adjusted EBITDA of $23.3 million, up approximately 33% from the prior year [15][16] - Business Solutions segment revenue increased approximately 4% to $64.5 million, with adjusted EBITDA of $26 million, down approximately 13% year over year [17] Market Data and Key Metrics Changes - The overall economic condition in Puerto Rico remains stable, with an unemployment rate near multi-decade lows of about 5.2% [8] - Passenger traffic in San Juan Airport was up approximately 11% year over year through April [8] - Latin America revenue increased 15% year over year or 20% on a constant currency basis, driven by organic growth and contributions from recent acquisitions [9] Company Strategy and Development Direction - The company plans to continue its share repurchase program, authorizing up to $150 million of shares to be repurchased through December 31, 2026 [9] - The company is focused on technology modernization, repricing initiatives, and margin optimization to drive growth [28][30] - The company expects to see gradual improvement in overall margins in the third quarter, with a reset lower in the fourth quarter due to a discount impacting revenue [24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance in the first half of the year and an optimistic outlook for the second half, despite potential tariff impacts [34][35] - 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 [20][21] - Management noted that the active pipeline for new business remains strong, with no significant pullback in demand due to macroeconomic factors [41][42] Other Important Information - The company’s liquidity remains strong at approximately $485 million as of June 30 [6][19] - The net debt position at quarter end was $673.6 million, with a net debt to trailing twelve-month adjusted EBITDA ratio of approximately 1.95 times [19] 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 than initially thought, with conservatism included regarding potential tariffs [34][35] Question: Insights on the active pipeline and business opportunities - Management confirmed a very active organic pipeline and expressed optimism about upcoming business wins, unaffected by tariff discussions [41][42] Question: Performance of ATH Mobile and growth drivers - Management noted that ATH Mobile's growth of 17% is driven by increased usage and network effects in Puerto Rico [43] Question: Acquisition strategy and focus areas - Management stated that they are actively looking for acquisition opportunities, particularly in Brazil, while integrating recent acquisitions [48][49] Question: Competitive advantages in Latin America - Management emphasized their proprietary technology, industry expertise, and local presence as key competitive advantages in Latin America [62][66]

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 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]