EVTC

EVERTEC’s second quarter results reflected strong execution and progress on its expansion strategy, with revenue growth ahead of Wall Street’s expectations. Management highlighted the contributions from recent acquisitions and organic momentum across key markets, especially Latin America. CEO Morgan Schuessler credited the company’s ability to secure major new partnerships, such as the multi-year agreement with Transbank in Chile and the onboarding of Clip in Mexico, as important milestones that deepened EVERTEC’s presence and relevance in the region. Is now the time to buy EVTC? Find out in our full research report (it’s free). Revenue: $274.8 million vs analyst estimates of $263.2 million (19.7% year-on-year growth, 4.4% beat) Adjusted EPS: $1.05 vs analyst estimates of $0.95 (10.6% beat) Adjusted EBITDA: $109.3 million vs analyst estimates of $103.6 million (39.8% margin, 5.5% beat) The company lifted its revenue guidance for the full year to $1.09 billion at the midpoint from $1.08 billion, a 1% increase Adjusted EPS guidance for the full year is $3.99 at the midpoint, beating analyst estimates by 1.8% Operating Margin: 19.4%, down from 24.4% in the same quarter last year Market Capitalization: $1.77 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Vasundhara Govil (KBW) asked about the significance and timeline of the Transbank deal; CEO Morgan Schuessler explained it is a major contract expected to ramp fully in 2028, similar in scope to previous large banking partnerships. Vasundhara Govil (KBW) followed up on the sustainability of Puerto Rico’s tax relief tailwind and recent pricing actions. CFO Karla Cruz-Jusino clarified the tax benefit was non-recurring, while pricing initiatives will provide ongoing uplift for several quarters. James Friedman (Susquehanna) inquired about the evolution of Chile’s banking system and whether EVERTEC’s processing model could be replicated in other Latin American countries. Schuessler described legacy national schemes and the potential to templatize such deals regionally. Cristopher Kennedy (William Blair) sought details on EVERTEC’s position and reputation in Mexico, as well as the long-term margin outlook for Latin America; Schuessler emphasized the Clip partnership’s strategic value, while Cruz-Jusino noted margin improvement will depend on successful integration and future synergies. Madison Suhr (Raymond James) questioned the integration progress with Dimensa and sustainability of merchant acquiring growth; Schuessler and Cruz-Jusino reported integration is on track and organic growth is supported by new client wins, though some recent tailwinds may not recur. Looking ahead, the StockStory team will be monitoring (1) the pace of integration and synergy realization from Dimensa and BBChain, (2) the rollout and early financial impact of new partnerships with Transbank in Chile and Clip in Mexico, and (3) margin trends as the business mix shifts further toward Latin America. Progress on AI deployment and digital asset solutions, as well as continued stability in Puerto Rico, will also be key signposts for EVERTEC’s execution. EVERTEC currently trades at $29.66, down from $32.55 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET President and Chief Executive Officer - Mac Schuessler Chief Financial Officer - Karla Cruz-Jusino Investor Relations - Lily Arteaga Operator: Ladies and gentlemen, thank you for standing by. My name is Elaine, and I will be your conference operator for today. At this time, I would like to welcome everyone to EVERTEC's second quarter 2026 earnings. [Operator Instructions] I will now turn the call over to Lily Arteaga. Lily Arteaga: Thank you, and good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer, and Karla Cruz-Jusino, Chief Financial Officer. Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with the cautionary statements contained in our earnings release and the company's most recent periodic SEC report. During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as constant currency revenue, adjusted EBITDA, adjusted net income, and adjusted earnings per common share. Reconciliations to GAAP measures and certain additional information are also included in today's earnings release and related supplemental slides, which are available in the investor relations section of our company's website at www.evertecinc.com. I will now hand the call over to Mac. Morgan Schuessler: Thanks, Lily, and good afternoon, everyone. Before we begin, I'd like to officially welcome Lily Arteaga to EVERTEC. For those of you who have not yet had the opportunity to connect with her, we're excited to have Lily leading our investor relations function and look forward to working with her as we continue to strengthen our engagement with investors and the analyst community. With that, let me turn to our second quarter performance. Our results reflect solid execution across the business and progress on our long-term strategy. Starting on slide 4, our priorities remain clear and consistent. We continue to strengthen EVERTEC's position as a leading financial technology and transaction processing company across Latin America and the Caribbean through a balanced approach of organic growth, strategic acquisitions, and disciplined capital allocation. We remain focused on deepening client relationships, expanding our capabilities, and increasing our presence in attractive markets across the region. The momentum we are seeing across the business, together with strategic investments and actions we have taken over the past several years, reinforces our confidence in our ability to deliver sustainable growth and long-term value for our shareholders. Before turning to our quarterly performance, I would like to address the cybersecurity incident we disclosed in June. We responded immediately, activated our incident response protocols, engaging external cybersecurity experts, and working closely with affected clients and authorities. Based on our response efforts and findings to date, we believe our incident response procedures operated as intended. Importantly, the incident did not disrupt our operations or our ability to serve our clients. While our remediation measures are ongoing, we are focused on supporting those affected, strengthening our environment, and maintaining the security and resilience of the critical infrastructure we operate. With that, let me turn to our second quarter performance. I will begin on slide 5 with an update on organic growth, which continues to be an important driver of value creation. During the quarter, we announced a strategic agreement with Transbank, Chile's leading payment solutions provider and one of the largest acquirers in Latin America. Under this multi-year agreement, which has an initial term of at least 5 years, EVERTEC will operate the Transbank's transactional processing environment and selected technology platforms and services. The engagement represents one of the most significant commercial wins in our history. Beyond the revenue opportunity, this agreement deepens our strategic relevance in one of Latin America's most important markets and creates a foundation for continued growth with a key client over time. It also demonstrates the strength of our technology capabilities and the success of the investments we have made to build a scaled, trusted payment and technology platform across the region. We are also building momentum in Mexico. Recently, we signed a contract with Clip, one of Mexico's leading financial ecosystem providers, serving nearly 1 million merchants. This agreement presents an early milestone in our acquiring services business in the country and serves as a strong proof point of our ability to compete and win in Mexico, one of the region's most important payments markets. We are also continuing to leverage capabilities across our platform to expand into new customer segments and use cases in Puerto Rico. Earlier this year, we signed agreements with Metropistas, a toll road operator and subsidiary of Abertis Infraestructuras, to support both card-present and card-not-present transactions. These relationships highlight our ability to bring together capabilities across the organization, including solutions acquired through prior strategic investments, such as PlacetoPay. Transbank, Clip, Metropistas, and other recent wins demonstrate our ability to secure important organic growth opportunities and expand and fortify our presence across Latin America and the Caribbean. Turning to M&A, our approach remains disciplined and consistent. We continue to focus on businesses with scalable technology, strong market positions, recurring revenue streams, and opportunities to create value through integration, cross-selling, and expanded client relationships. Turning to slide 6, during the quarter, we completed the acquisition of Dimensa. Strategically, Dimensa strengthens our software capabilities for financial institutions, expands our addressable market, and increases our relevance within the Brazilian financial services ecosystem. While the integration remains in its early stages, we are encouraged by the progress made since closing. Our teams are working closely together and we remain focused on executing our integration plans, capturing commercial opportunities, and delivering value through expanded client relationships, cross-selling initiatives, and operational efficiencies. We believe Dimensa can contribute meaningfully over time through an expanded product portfolio, increased scale, and broader customer reach. Turning now to slide 7, we also completed the acquisition of BBChain, a provider of blockchain infrastructure, tokenization, digital custody, and digital asset solutions for financial institutions in Brazil. BBChain strategically expands our platform beyond traditional payments and banking technology into next-generation digital financial infrastructure. Beyond its financial contribution, although modest from a near-term revenue perspective, the acquisition broadens our ability to serve financial institutions across investment funds, fixed income lending, and digital assets, and reinforces our commitment to innovation. It creates opportunities to extend these capabilities to clients across Latin America over time. Together, our recent acquisitions of Sinqia, Tecnobank, Dimensa, and BBChain represent an important step in our strategy to build a larger, more diversified financial technology platform. By expanding our portfolio and broadening the range of solutions we can deliver, these businesses enhance our ability to serve clients across multiple product areas while creating additional opportunities for growth over time. Before turning to our quarterly results, I would like to briefly touch on our AI initiatives on slide 8. Earlier this year, we introduced the governance framework and strategic approach that are guiding our adoption of AI across the organization. Since then, we have continued to advance those initiatives with a focus on three priorities: driving greater efficiency, fostering innovation, and further enhancing the service we deliver to our clients. We are deploying AI across a broad range of use cases, including accelerating software development, improving incident management and service quality, enhancing fraud detection and risk monitoring capabilities, and supporting the development of new client-facing solutions. Several of these initiatives are already generating encouraging results through improved productivity, enhanced quality, and faster delivery. While our efforts today remain focused on operational efficiency and execution excellence, we also see longer-term opportunities to enhance existing solutions, expand capabilities, and develop new offerings that create additional value for our clients. We believe AI will become an increasingly important enabler of how we operate, innovate, and serve our clients. Over time, we expect these capabilities to create opportunities to enhance both revenue growth and profitability. As these initiatives continue to mature, we expect to gain greater visibility into their impact and anticipate starting to incorporate these benefits into our financial outlook starting in 2027. Now turning to slide 9, I'll cover key highlights from our second quarter results. Revenue for the quarter was approximately $275 million, an increase of 20% compared to the prior year. Growth was driven by continued organic performance, contributions from recent acquisitions, and favorable foreign currency movements, reflecting the benefits of our balanced growth strategy and increasingly diversified business model. On a constant currency basis, revenue grew approximately 16% year-over-year. Adjusted EBITDA for the quarter was approximately $109 million, up 18% year-over-year, while adjusted EBITDA margin was 39.8%. This performance reflects the scalability of our business model and our ability to translate revenue growth into earnings while continuing to invest in strategic initiatives that support the business in the long term. Adjusted EPS increased to $1.05 from $0.89 in the prior year. The increase was driven primarily by higher earnings and also benefited from the reduced share count resulting from share repurchase activity over the past several quarters. From a capital allocation perspective, we continue to execute against all three pillars of our strategy during the quarter. We invested in organic growth initiatives and completed the acquisition of Dimensa while continuing to return capital to shareholders through our quarterly dividends and share repurchase program. During the quarter, we repurchased approximately 2 million shares for a total of $47 million and paid $3 million in dividends. At quarter end, approximately $83 million remained under our share repurchase authorization, and last week, the board replenished this authorization to $150 million. Our liquidity remained strong at approximately $420 million at quarter end, providing financial flexibility to invest in growth, support ongoing integration activities, and allocate capital toward the opportunities we believe will generate the highest long-term returns for shareholders. Let me now provide an update on Puerto Rico, now beginning on slide 10. Our Puerto Rico business delivered another strong quarter and continues to provide a resilient foundation for EVERTEC. Merchant Acquiring revenue grew 11% year-over-year, reflecting strong organic growth driven primarily by higher sales volume, non-transactional revenues, and an improvement in spread. Payment services revenue increased 8% year-over-year, driven by higher POS transaction volumes, the continued momentum in ATH Movil, particularly ATH Movil Business, and a non-recurring volume-based benefit recognized during the quarter. As expected, Business Solutions reflected the previously discussed reset in year-over-year comparisons, resulting from the 10% contractual discount provided to Popular. More broadly, economic conditions in Puerto Rico remain favorable. Employment trends remain positive, while consumer spending and tourism activity continue to provide a stable backdrop for our business. During the quarter, the Puerto Rico government also authorized a $554 million tax relief program for eligible workers. This environment continues to support Puerto Rico's role as a stable source of recurring cash flow and earnings for the company. Turning to slide 11, Latin America once again was a meaningful contributor to growth. Revenue increased 52% year-over-year on a reported basis, benefiting from the contribution of recent acquisitions and continued organic growth across the region. Brazil has also benefited from the favorable foreign currency movements, which contributed approximately $9 million during the quarter. On a constant currency basis, our Latin America business grew 42% compared to the prior year. In summary, we're pleased with our second quarter performance and the continued progress we're making in executing our strategic priorities. Transbank, Clip, Metropistas, and other recent wins demonstrate our ability to win important organic growth opportunities and expand and fortify our presence across Latin America and the Caribbean, while Dimensa and BBChain broaden our capabilities and strengthen our platform offering. Collectively, we believe these actions enhance our ability to serve clients across the region expand our opportunities to grow alongside them and reinforce our position as a trusted service provider of critical financial infrastructure. At the same time, our disciplined capital allocation framework allows us to invest in strategic initiatives while continuing to return capital to shareholders. With that, I will turn the call over to Karla. Karla Cruz-Jusino: Thank you, Mac, and good afternoon, everyone. Turning to slide 13, I'll begin by reviewing EVERTEC's second quarter results. Total revenue for the quarter was $275 million, an increase of approximately 20% compared to the prior year quarter. Driven by organic growth across most of our segments, contributions from our recent Tecnobank and Dimensa acquisitions, and favorable foreign currency movements primarily in Brazil. On a constant currency basis, revenue growth was approximately 16%. Adjusted EBITDA increased 18% year-over-year to $109 million, driven by the strong revenue growth. Adjusted EBITDA margin was 39.8% compared to 40.3% in the prior year. The modest decline primarily reflects the increasing contribution from Latin America, where we are capturing growth opportunities in markets with a different margin profile. Adjusted net income increased 12% year-over-year to $65 million, reflecting strong adjusted EBITDA performance. This was partially offset by a higher adjusted effective tax rate, higher depreciation and amortization expense, and the noncontrolling interest associated with the Tecnobank acquisition completed in the fourth quarter of 2025. The higher adjusted effective tax rate primarily reflects the greater proportion of taxable income generated in higher tax foreign jurisdictions. Adjusted EPS was $1.05, an increase of 18% from the prior year, reflecting adjusted net income growth and the benefit of a lower share count resulting from repurchases completed during the current and prior periods. Before I turn to the discussion by segment, I would like to address several nonrecurring items that were reflected in our GAAP results this quarter. First, there were a number of acquisition-related impacts primarily associated with the Dimensa and Tecnobank acquisitions. These included higher depreciation and amortization expenses related to acquiring intangible assets and increased interest expense resulting from the financing used to complete those acquisitions. Also, GAAP tax expense was impacted by discrete tax items, including taxes associated with a dividend distribution from a foreign subsidiary that was used to partially fund the Dimensa acquisition. Second, we recorded impairment charges associated with our decision to exit our participation in a JV focused on developing payment services solutions in Latin America. This decision reflects our disciplined approach to capital allocation and our continued focus on deploying capital toward opportunities that are most closely aligned with our long-term strategic priorities. And finally, we incurred costs related to the response and remediation of the cyber incident disclosed in June. While these nonrecurring items affected our reported results, our underlying operating performance remained strong, as reflected in our revenue growth, adjusted earnings, and the increased full-year outlook. With that, I'll turn Slide 14 to cover our second quarter results by segment beginning with Merchant Acquiring. Net Revenue increased 11% year-over-year to $52 million driven by broad-based growth across multiple revenue drivers. Sales volume and transactions grew approximately 7% and 6%, respectively, reflecting both the onboarding of new high-volume merchants, as well as growth within our existing customer base. Revenue growth also benefited from a favorable transaction mix, which contributed to higher spread, as well as pricing initiatives implemented during the current and prior year that drove higher nontransactional revenues. Results also reflected healthy consumer spending trends in Puerto Rico, including the benefit of the tax relief initiatives implemented by the Puerto Rico government during the quarter. Importantly, growth was driven by both volume expansion and spread improvement, reflecting the health of our Merchant Acquiring business and the effectiveness of our pricing initiatives. Adjusted EBITDA for the segment was $22 million, with an adjusted EBITDA margin of 41.7%, down approximately 60 basis points from the prior year. The decline primarily reflects higher processing costs associated with CPI-related increases within our Payments Puerto Rico segment. Overall results continue to reflect stable demand and healthy underlying transaction activity. Turning to slide 15, Payment Services revenue increased 8% year-over-year to $61 million. Growth was driven by continued momentum across our payment solutions, including ATH Movil, particularly ATH Movil Business, which continued to deliver double-digit growth in both volumes and transactions. We also benefited from approximately 12% year-over-year growth in POS transactions, reflecting healthy consumer activity across Puerto Rico, as well as from the nonrecurring volume-based benefit recognized during the quarter. Adjusted EBITDA increased 12% year-over-year to $37 million, while adjusted EBITDA margin expanded approximately 210 basis points to 60.6%. Margin expansion was driven by the favorable contribution of the nonrecurring volume-based benefit, which was highly accretive during the quarter. More broadly, the segment continues to benefit from growing transactions and volume activity and the scalability of our platforms, positioning us well for long-term growth opportunities. Turning to slide 16, Latin America Payments and Solutions was once again the largest contributor to our revenue and EBITDA growth during the quarter. Revenue increased 52% year-over-year to $131 million. Approximately $9 million of this growth was attributable to foreign currency movements, primarily reflecting the appreciation of the Brazilian real compared to the prior year. On a constant currency basis, revenue grew approximately 42%. Growth was driven by the contributions from the Dimensa and Tecnobank acquisitions, including Tecnobank's expansion into 2 additional states in Brazil. Underlying organic performance was supported by business outsourcing services, licensing and platform revenues, and higher transaction volume across our digital solutions in Brazil. We also saw continued strength in payments, software, and data solutions throughout the region and increased services provided to Puerto Rico. On a reported basis, adjusted EBITDA increased 70% year-over-year to $40 million, while adjusted EBITDA margin expanded approximately 320 basis points to 30.3%. Margin expansion was in part driven by the contribution from Tecnobank, which carries a higher margin profile, partially offset by the inclusion of Dimensa, which currently operates at lower margins than our existing Latin America business. Results do not yet reflect the benefit of future synergy opportunities that we expect to realize over time. On a constant currency basis, adjusted EBITDA was $38 million and the margin was 31.5%. Overall, our results continue to demonstrate the benefits of our Latin America strategy, including our ability to scale capabilities across markets, deepen client relationships, and expand our presence in attractive growth segments. Moving to slide 17 are the results of our Business Solutions segment. Revenue for the quarter was $59 million, a decrease of 9% year-over-year. As expected, the decline was primarily attributable to the 10% discount to Popular that became effective in October of last year. Adjusted EBITDA was $23 million, a decrease of 13% from the prior year, reflecting the impact of the 10% discount to Popular. Adjusted EBITDA margin contracted approximately 200 basis points to 38.3%, also reflecting the impact of the discount, partially offset by the nonrecurrence of project-related expenses recorded in the prior year. Overall, segment performance was in line with our expectations and reflects the underlying stability of the business despite the anticipated impact of the Popular pricing reset. Turning to slide 18, we have a summary of our corporate and other expenses. Adjusted EBITDA was negative $12 million for the quarter, representing 4.2% of total revenue. Turning to slide 19, I will now review our cash flow performance. Through the second quarter, we generated $91 million of net cash from operating activities, reflecting continued focus on working capital management and cash conversion. During the period, we deployed capital across multiple priorities, including acquiring Dimensa for approximately $199 million and $73 million returned to shareholders through dividends and share repurchases. Net debt increased by approximately $152 million, primarily reflecting financing activities related to the Dimensa acquisition during the quarter. We ended the quarter with $261 million of unrestricted cash, excluding cash in settlement assets, compared to $306 million at year-end 2025. Turning to slide 20, our net debt position at quarter end was approximately $1 billion, comprised of $1.3 billion in total loan and short-term debt, offset by $261 million of unrestricted cash. Our weighted average interest rate was approximately 6%, a decrease of approximately 57 basis points year-over-year, reflecting the benefit of debt repricing actions executed during the prior year, as well as lower interest rates. Net debt to trailing 12 months adjusted EBITDA was approximately 2.55x compared to 1.95x a year ago, remaining within our targeted leverage range of 2 to 3 times. This reflects the successful funding of the Dimensa acquisition while maintaining significant financial flexibility. As of June 30, total liquidity, which excludes restricted cash and includes available borrowing capacity, was approximately $420 million. Overall, our balance sheet remains strong and well-positioned to support both our strategic growth initiatives and ongoing capital return priorities. Turning now to our outlook for 2026 on Slide 21. Based on our second quarter performance and our confidence in our ability to continue delivering strong results, we are increasing our full-year expectations. For 2026, we now expect reported revenue to be in the range of $1.085 billion to $1.095 billion, representing growth of 16.4% to 17.5% year-over-year. The increase in our outlook reflects continued strength across Merchant Acquiring and Latin America Payments and Solutions, modestly higher expectations for Dimensa, and the benefit of foreign exchange, partially offset by slightly lower expected revenues in Business Solutions. Specifically, this outlook includes approximately 200 basis points of foreign currency tailwinds, driven primarily by the appreciation of the Brazilian real, relative to the 2025 monthly average exchange rate used in our constant currency calculations. Importantly, a significant portion of this benefit was already realized in the first half of the year and is therefore reflected in our year-to-date results. On a constant currency basis, we now expect revenue growth for 2026 to be between 14.5% to 15.6%, compared to our prior outlook of 13.8% to 15%. Starting with the legacy business, we remain encouraged by the trends we see across our portfolio. Transaction activity remains healthy, particularly across our acquiring and payment businesses, and execution continues to be strong across the organization. These trends, combined with the continued momentum in Latin America, support our confidence in our Puerto Rico businesses, which continues to perform at or modestly above the assumptions embedded in our original outlook. At the segment level for Merchant Acquiring, we now expect high single-digit growth in 2026, supported by continued transactional and volume growth, as well as the benefit of the implementation of key merchant relationships. In Payments Puerto Rico and Caribbean, we continue to expect mid-single-digit growth driven by continued strength in ATH Movil and POS volumes, including processing services provided to the Latin America segment, partially offset by the impact of the Popular discount. For Latin America Payments and Solutions, we now expect revenue growth within the low 40s on a reported basis and mid to high 30s on a constant currency basis, reflecting continued execution across the region and the contributions from Dimensa and Tecnobank. Finally, in Business Solutions, we now expect revenues to decline in the mid-single digits. The revised outlook reflects the anticipated impact of the Popular contract discount as well as delays in certain new business wins. As a reminder, the Popular discount anniversary occurs in the fourth quarter, after which the associated headwind will no longer impact the year-over-year comparison. Overall, the increase in our outlook reflects the strength of our diversified business model, continued execution of our growth strategy, and the contribution from our recent acquisitions. Our outlook continues to assume an adjusted EBITDA margin of 39% to 40%, despite the increasing contribution from Latin America and the addition of Dimensa, which currently operates at a lower margin profile. We continue to expect margins to remain within this range, supported by a favorable business mix and disciplined cost management activities across a broader business. Adjusted EPS is now expected to grow between 8.8% and 11.7% from the $3.62 reported for 2025, or between 7.2% and 10% on a constant currency basis. The increase in our outlook reflects stronger operating performance and the benefit from the share repurchases made during the quarter. From an earnings perspective, our updated guidance continues to assume that Dimensa will be EPS neutral to slightly accretive in 2026. This assumption remains unchanged and reflects the balance between operating contributions, integration timing, and associated financing costs. While stronger operating performance across the business is driving our increased outlook, we continue to expect certain items below adjusted EBITDA to limit the full translation into earnings growth, including higher interest expense, increased depreciation and amortization expense, higher noncontrolling interest related to Tecnobank, and a shift in our tax profile resulting from the greater contribution from Latin America. We continue to expect our effective tax rate to remain within a range of approximately 11% to 12% for the full year. Capital expenditures are still expected to be $90 million. In addition, we expect to continue returning capital to shareholders through dividends and, when appropriate, share repurchases. Overall, our increased 2026 outlook reflects stronger-than-expected performance across Merchant Acquiring and Latin America, continued progress integrating our recent acquisitions, and favorable underlying business trends. In summary, we delivered a strong second quarter, raised our full-year outlook, and remain well-positioned to execute on our strategic priorities. We continue to see meaningful opportunities to drive growth and create long-term value for shareholders. With that, operator, please open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Vasu Govil from KBW. Vasundhara Govil: Maybe, Mac, first one for you. Congrats on the win with Transbank in Chile. That's a pretty big win. Obviously, investors are interested in understanding how meaningful this relationship could be economically, the timing of when it could start contributing, and how the scope of the agreement is similar or different from the Santander relationship you had. So maybe if you could just elaborate on that, that would be super helpful. Morgan Schuessler: Yes, so first, I mean, look, it's one of the most important contrasts we -- commercial contracts we have besides Popular. So it's a milestone for us and it gives us significant presence in Chile and continues to validate our technology and our capabilities. We're already in the process going through the implementation, and it'll be a migration of their existing merchant base. So once it is implemented, it'll ramp very quickly because it is a migration. It's a conversion versus just start with one merchant and then add the next. We expect it to start impacting the second half of 2027, but really fully ramp in 2028. So we're incredibly excited with that and also with Clip, we also announced that we're doing a deal with Clip in Mexico, which is not as large as this deal, but from a reputational perspective, we're working with them. They have MiClip, which is their e-wallet. And it's -- we're using our acquiring switching technology to help enable that. And so we're pretty excited about that as well because it is a marquee account in Mexico. Vasundhara Govil: Great. Thank you for that color. And then maybe a quick one for you, Karla. I heard the tax relief initiatives that helped Merchant Acquiring in Puerto Rico. Was that a one-time tailwind or is that a benefit that you're expecting will continue? And then I think you also mentioned pricing as a tailwind. Could you remind us if this is a new round of pricing actions or some residual benefit from the prior repricing actions? Just any color on that would be helpful. Karla Cruz-Jusino: Yes, so starting with the tax relief, that is a benefit that we do not necessarily anticipate to recur throughout the second half of the year. It was very specific to a tax relief effort that was approved by the local government specifically for the 2025 tax year. And then from a pricing initiative perspective, that is mainly attributed to two main pricing efforts that we executed, one of them being executed in the second half of 2025, and then the second one more recently, specifically now in Q2. Vasundhara Govil: Got it. So we should expect the benefit to sort of last with us for another 4 quarters? Karla Cruz-Jusino: Correct. Correct. For the one that was implemented now in Q2, definitely we will see that benefit throughout the rest of the year. Operator: Your next question comes from the line of Jamie Friedman from Susquehanna. Your line is now open. James Friedman: Congratulations on the strong results. I also wanted to ask about Transbank, Mac. Actually, to step back, I want to ask about Chile more broadly. My recollection is that it was a national scheme that had been privatized in Chile. If I got that wrong, I apologize. If you could give us the cliff notes on where the banking system is in Chile and how that's evolving and how or if Transbank is participating in that. Morgan Schuessler: Sure. No, no, good question. So Transbank was originally a monopoly that was all of the banks in Chile used to actually create the Merchant Acquiring business to support the issuing business. Transbank actually owned the merchant contracts and then each of the banks had equity ownership in Transbank. One of the first big banks to peel away and leave Transbank was Santander. And that was a deal that we announced some time ago, which is a similar deal. It's a processing deal that we do for Santander. And that was -- at the time, that was a huge deal for us. And then Banco de Chile has also decided to leave Transbank because they want to build and own their own merchant portfolio. And again, Banco de Chile selected us as well, and we announced that maybe a year or so ago. Now, Transbank is the remaining company, and there are many banks that still use Transbank for their Merchant Acquiring business. The banks still own Transbank, so it's still owned by all of the banks and it is still the largest payments merchant acquirer in Chile. And given the success that we've worked with the 2 largest banks that we've worked with, Transbank has now decided that we have the right technology for them as well. James Friedman: Wow, okay, now I get it. That is very cool. And then if you look across LatAm more generally, are there other countries that still have that sort of schema? Or is this unusual down there, meaning like a national charter? Or can you templatize this elsewhere? Morgan Schuessler: Yes. So, I mean, look, it is. In most countries -- in many countries, there's actually 2 providers. One was typically the legacy Mastercard provider and one was Visa, and they were owned by the banks. And now both of those -- like there are 2 in Colombia, and both of those now do Visa and Mastercard. So there still are legacy monopoly or duopoly businesses across the region. And ultimately, if we can demonstrate our capabilities in some of these other countries, it could open up those opportunities as well. Operator: Your next question comes from the line of Chris Kennedy from William Blair. Cristopher Kennedy: Mac, it's great to hear about the win with Clip in Mexico. Can you just give us an update on EVERTEC's position in Mexico and the opportunity in that market? Morgan Schuessler: Yes, so first, I mean, Mexico is the second largest market in the region, following Brazil, and it's significantly larger than any of the other markets. Given the size of the market, we're still very, very small, but this is really one of the first -- you know, we have some issuing capabilities that we rolled out with clients in the market. This is really the first client that is meaningful where we're providing switching services, which is part of our processing capabilities. So number one, it's allowing us to localize that solution more broadly. And secondly, from a reputational perspective, I think it'll give us even further credibility in the market and frankly outside, because Clip is one of the most well-known fintechs in all of Latin America. Cristopher Kennedy: Understood. And thank you for that. And then, Karla, you mentioned the different margin profile for the LatAm business. Can you talk about the long-term opportunity for margin expansion within that segment? Karla Cruz-Jusino: Yes, we've discussed in the past, right, and we actually adjusted our guidance in the last call to reduce it, to incorporate the lower margin profile from the acquisition of Dimensa. We also mentioned, and I'll highlight it again, that we do anticipate being able to incorporate certain synergies that are expected to be more meaningful as we enter 2027. And that is a great opportunity for us to, let's say, bring those margins back to a more stable profile compared to what we used to be before some of these acquisitions. Operator: Your next question comes from the line of Madison Suhr from Raymond James. Madison Suhr: I wanted to start on Dimensa. I know it's only been a quarter here, but maybe just touch on how the integration is going. And, Mac, I know you were pretty optimistic around the potential synergies there. So just as you've had a quarter with the business, maybe just touch on where you see some of the potential for near-term synergies as it relates to that deal. Morgan Schuessler: Yes, so what I would say is from a forecast perspective, it's actually meeting, slightly exceeding our original expectations. As far as synergies, the thesis still holds, and we're in the process of working through the synergies, realizing those. Those are already in the guidance for '26 and they'll have a good impact in '27. But we're pleased with the deal and even with meeting with customers. They're excited that EVERTEC is now an owner of the asset and they'd like to see us do similar things we did with Sinqia, right, improve the customer experience and also invest in the platforms, and so we're pretty excited about the combination of those businesses. Madison Suhr: Okay, awesome. And then I wanted to follow up on the Merchant Acquiring business as well. So revenue growth accelerated back into the double digits. You talked about some of the tailwinds you experienced, but I believe you also mentioned 7% and 6% volume and transaction growth, if I heard correctly. So I guess just a two-part question. One, is it fair to say that, that potentially accelerated modestly just given the revenue results? And then secondly and more broadly, can you just touch on what's driving the strong volume and transaction growth and maybe how sustainable you think that is in the second half? Karla Cruz-Jusino: Yes, so correct. We did see 7% growth in volume transactions in the quarter. That definitely accelerated compared to what we ended right Q2. The main drivers of that volume growth is the organic growth that we've seen in that segment, including recent client wins that we have been able to sign and implement in the recent quarters. We also saw a positive impact from gas prices increasing. That one, we call it out because we didn't necessarily see a negative impact in the rest of the vertical. So we were able to see a resilient consumer spend pattern into the Puerto Rico economy, regardless of that, let's say, increase in gas prices. And then the third one would be the tax incentive that we called out. That one, we do not necessarily expect it to recur in the near future for the second half of the year. And that's part of why we raised or confirmed the expectation for Merchant Acquiring to grow in high single digits, is that we do continue to anticipate further contributions from a growth perspective coming from new merchants, some of them announced by Mac in his remarks. Madison Suhr: Okay, awesome. And just to clarify, so the metric that you gave was 7% volume transaction growth, correct? Karla Cruz-Jusino: Correct. Operator: Your next question comes from the line of Nate Svensson from Deutsche Bank. Christopher Svensson: I wanted to ask about the BBChain acquisition. Sounds pretty interesting. Was hoping for a little bit more on the strategic rationale there. Maybe you could talk about what you're hearing from your clients on demand for digital assets in Latin America or maybe across your other regions as well. So what specific feedback were you receiving that led you to pursue that acquisition? And how do you expect to fold BBChain's offerings into the rest of the company? Morgan Schuessler: Yes, no, look, we just closed on Friday and we're pretty excited. It's a very small, small deal, but the capabilities and the technology that they have, we're very excited about. If you think about our business specifically in Brazil, we provide the ledger and the technology for many of our clients to manage assets, whether it's pension funds, whether it's the consortium business, whether it's the funds business. And as those asset classes become digitized, right, through tokenization, through blockchain, through different technologies. We now have the technology to help our clients do that, whether it's some type of government agency trying to issue bonds, whether it's equities, but as there's this move in Brazil, which there is, the Brazilian government is working on projects specifically to look at can they digitize bonds. We're one of the technology solutions that are part of those initiatives as they evolve. So it's still early stage, but I would say BBChain is already experimenting with the government, experimenting with some of our clients, our financial service companies in Brazil. And this allows us to extend that we have the platform to help them manage those assets, now we have the technology to help them digitize those assets. Christopher Svensson: Yes, super interesting. And then, Karla, maybe one for you. I know you called out the lapping of the Popular headwinds. Just wondering, as we set our model and think about growth in the third quarter versus the fourth quarter, are there any other grow-over impacts or factors that we need to incorporate into our numbers? I think last year there was a Bad Bunny residency that may have helped some numbers in 3Q. So just wondering that factor or anything else we should keep in mind as we set our models? Karla Cruz-Jusino: From a Business Solutions perspective, you're right. The discount is going to be overlapping now in Q4, so that's a good time consideration from a, let's say, Q3 versus Q4 perspective. On the rest of the business, aside from what you just called out, also the Bad Bunny residency that did benefited Q3 of last year. We don't necessarily have anything to call out. In LatAm, we do anniversary also the Tecnobank acquisition in the fourth quarter. So that's also an important consideration there in that segment. Operator: That concludes our question and answer session. And I will now turn the call back over to Mac Schuessler for closing remarks. Morgan Schuessler: First, thanks to everybody for joining us today for the call. Thank you to my colleagues for a record quarter and for some great both organic and inorganic wins. I look forward to seeing you in future conferences or in future calls. Have a good day. Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Evertec. The Motley Fool has a disclosure policy. EVERTEC (EVTC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. EVERTEC (EVTC) reported second quarter 2026 results that exceeded market revenue and earnings expectations, and then raised its full year guidance. The update provided investors with new information on growth, profitability and capital returns. See our latest analysis for EVERTEC. The recent earnings beat, higher 2026 guidance and expanded buyback come after a 34.03% 90 day share price return and an 8.72% 1 month share price return. However, the 1 year total shareholder return declined 10.02%, which suggests momentum has picked up only fairly recently. If EVERTEC’s results have you rethinking where payment technology could go next, it may be a good time to widen your search with 22 top founder-led companies After a 34% three month run, EVERTEC now sits at a discount to both analyst targets and one intrinsic value estimate. Is most of the easy move already in the rear view mirror, or is there still meaningful upside left? The most followed narrative on EVERTEC pegs fair value at $25, which sits below the last close at $31.31 and frames the recent rally as stretched. Read the complete narrative. Want to see how this feeds into the $25 fair value for EVERTEC? The narrative leans heavily on revenue growth assumptions, margin pressure and a lower future earnings multiple. Curious which of those inputs does most of the work in the model? Result: Fair Value of $25 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still a few watchpoints that could challenge this overvaluation view, including stronger execution in Latin America Payments & Solutions and successful integration of Sinqia, Tecnobank and Dimensa. Find out about the key risks to this EVERTEC narrative. The narrative fair value of $25 paints EVERTEC as 25.2% overvalued. Yet on a simple P/E basis, the stock looks very different. EVERTEC trades at 19.2x earnings, below a 27.5x peer average and only slightly above an 18x fair ratio, which points to a more balanced risk reward picture. Which signal do you trust more: the narrative or the market multiple? See what the numbers say about this price — find out in our valuation breakdown. With EVERTEC sending mixed signals on value, sentiment and future execution, it makes sense to check the underlying data yourself and move quickly to form your own view using 2 key rewards and 2 important warning signs If EVERTEC has sharpened your focus on what you want from a stock, do not stop here. Broaden your watchlist and give yourself more options. Target potential value opportunities early and compare them with EVERTEC by reviewing 51 high quality undervalued stocks that combine solid fundamentals with pricing that may still be catching up. Strengthen the foundation of your portfolio by scanning solid balance sheet and fundamentals stocks screener (50 results) that prioritize resilient finances and dependable fundamentals. Spot future contenders before they hit the spotlight by checking a screener containing 17 high quality undiscovered gems that might not yet be widely followed but already show strong underlying quality. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EVTC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: Total revenue for Q2 2026 was approximately $275 million, an increase of 20% year over year. On a constant currency basis, revenue grew approximately 16%. Adjusted EBITDA: Adjusted EBITDA was approximately $109 million, up 18% year over year, with a margin of 39.8%. Adjusted EPS: Adjusted EPS increased to $1.05 from $0.89 in the prior year. Merchant Acquiring Revenue (Puerto Rico): Grew 11% year over year, driven by higher sales volume, non-transactional revenues, and an improvement in spread. Payment Services Revenue (Puerto Rico): Increased 8% year over year to $51 million, driven by momentum in ATH Mobile and higher POS transaction volumes. Latin America Payments and Solutions Revenue: Increased 52% year over year to $131 million. On a constant currency basis, revenue grew approximately 42%. Business Solutions Revenue: Decreased 9% year over year to $59 million, primarily due to the 10% contractual discount provided to Popular. Net Cash from Operating Activities: Generated $91 million through the second quarter. Net Debt: Approximately $1 billion at quarter end, with a net debt to trailing 12-month adjusted EBITDA ratio of approximately 2.55 times. 2026 Revenue Outlook: Expects reported revenue in the range of $1.085 billion to $1.195 billion, representing growth of 16.4% to 17.5% year over year. Warning! GuruFocus has detected 6 Warning Signs with EVTC. Is EVTC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Evertec Inc (NYSE:EVTC) reported strong Q2 2026 results with revenue up 20% year-over-year to $275 million, driven by organic growth and acquisitions. The company secured a major multi-year agreement with Transbank, Chile's leading payment provider, which is expected to significantly boost revenue starting in 2027. Evertec Inc (NYSE:EVTC) expanded its presence in Mexico with a new contract with Clip, a leading fintech serving nearly 1 million merchants, validating its competitive position in the region. The acquisitions of Dementia and BB Chain broaden Evertec Inc (NYSE:EVTC)'s software and digital asset capabilities, enhancing its platform and long-term growth potential. Evertec Inc (NYSE:EVTC) raised its full-year 2026 revenue guidance to $1.085-$1.095 billion, reflecting strong performance and confidence in continued growth. The company's Latin America segment grew 52% year-over-year, with adjusted EBITDA margin expanding 320 basis points to 30.3%. Evertec Inc (NYSE:EVTC) continues to return capital to shareholders, with the board replenishing the share repurchase authorization to $150 million. The company's AI initiatives are already generating improved productivity and efficiency, with plans to incorporate benefits into financial outlook starting in 2027. Evertec Inc (NYSE:EVTC) faced a cybersecurity incident in June, incurring remediation costs and potential reputational risk, though operations were not disrupted. The business solutions segment revenue declined 9% year-over-year due to the 10% contractual discount provided to Popular, impacting adjusted EBITDA margin. Adjusted EBITDA margin slightly declined to 39.8% from 40.3%, reflecting the increasing contribution from lower-margin Latin America businesses. The company's effective tax rate increased due to a greater proportion of taxable income in higher-tax jurisdictions, partially offsetting earnings growth. Evertec Inc (NYSE:EVTC) recorded impairment charges related to exiting a joint venture in Latin America, reflecting a strategic shift but impacting GAAP results. Net debt increased to approximately $1 billion, with leverage rising to 2.55 times adjusted EBITDA, though still within the target range. The company expects certain items below adjusted EBITDA, such as higher interest expense and depreciation, to limit full translation of revenue growth into earnings. Evertec Inc (NYSE:EVTC) noted delays in certain new business wins in the business solutions segment, contributing to a revised outlook for mid-single-digit revenue decline. Q: Can you elaborate on the strategic significance and economic impact of the Transbank agreement in Chile, including its timing and how it compares to the Santander relationship? A: Morgan Schuessler (President and CEO) stated that this is one of the most important commercial contracts in the company's history, second only to Popular. It provides significant precedence in Chile and validates their technology. The implementation is underway and will involve a migration of Transbank's existing merchant base, meaning it will ramp quickly upon completion. The deal is expected to start impacting results in the second half of 2027 and fully ramp in 2028. Q: What is the strategic rationale behind the BB Chain acquisition, and what client demand are you seeing for digital assets in Latin America? A: Morgan Schuessler (President and CEO) explained that BB Chain, though a small deal, provides technology for tokenization, blockchain, and digital custody. This allows Evertec to help clients digitize assets like pension funds, bonds, and equities. The Brazilian government is actively working on projects to digitize bonds, and BB Chain is already part of those initiatives, allowing Evertec to extend its platform to help clients manage and digitize assets. Q: Can you provide an update on Evertec's position in Mexico and the opportunity in that market following the win with Clip? A: Morgan Schuessler (President and CEO) noted that Mexico is the second-largest market in the region after Brazil. While Evertec is still very small there, the Clip deal is a meaningful first client for their switching services. It allows them to localize their solution more broadly and provides significant reputational credibility, as Clip is one of the most well-known fintechs in Latin America. Q: What is the long-term opportunity for margin expansion within the Latin America segment, given its different margin profile? A: Karla Cruz-Jusino (CFO) stated that the lower margin profile is partly due to the acquisition of Dementia. However, they anticipate incorporating synergies that will be more meaningful as they enter 2027, which presents an opportunity to bring margins back to a more stable profile compared to before these acquisitions. Q: How is the integration of the Dementia acquisition progressing, and where do you see near-term synergies? A: Morgan Schuessler (President and CEO) said that from a forecast perspective, Dementia is meeting or slightly exceeding original expectations. The synergy thesis holds, and they are working through realizing those synergies, which are already incorporated into 2026 guidance and will have a good impact in 2027. Customers are excited about Evertec's ownership and the potential for improved experience and platform investment. Q: What drove the strong volume and transaction growth in the merchant acquiring business, and is it sustainable? A: Karla Cruz-Jusino (CFO) confirmed 7% volume and 6% transaction growth, which accelerated compared to Q1. The main drivers were organic growth from recent merchant wins, a positive impact from increased gas prices without a negative impact on other verticals, and a resilient consumer spending pattern in Puerto Rico. The tax incentive was a one-time benefit not expected to recur, but they still expect high single-digit growth for the segment, supported by new merchants. Q: Was the tax relief initiative in Puerto Rico a one-time tailwind, and is the pricing benefit from a new round of actions? A: Karla Cruz-Jusino (CFO) clarified that the tax relief benefit is not anticipated to recur in the second half of the year, as it was specific to the 2025 tax year. The pricing benefit is attributed to two main pricing efforts: one executed in the second half of 2025 and another more recently in Q2 2026. The benefit from the Q2 pricing action is expected to last for the rest of the year. Q: Can you provide a "cliff notes" on the banking system in Chile and how Transbank is participating in its evolution? A: Morgan Schuessler (President and CEO) explained that Transbank was originally a monopoly owned by all the banks in Chile, which owned the merchant contracts. Santander was one of the first banks to leave and build its own portfolio, selecting Evertec for processing. Banco de Chile also selected them. Transbank, still owned by the banks and the largest merchant acquirer in Chile, has now decided Evertec has the right technology for them as well. Q: Are there other countries in Latin America with similar national schemes that could be templatized for growth? A: Morgan Schuessler (President and CEO) noted that in many countries, there are typically two legacy providers owned by the banks. For example, there are two in Colombia, both of which now process for Visa and Mastercard. Demonstrating capabilities in Chile could open up similar opportunities in other countries across the region. Q: As we set our models, are there any other growth impacts or factors to consider for Q3 versus Q4? A: Karla Cruz-Jusino (CFO) reminded that the Popular discount will be lapped in Q4, which is a good consideration. She also noted that the Bad Bunny residency benefited Q3 of last year, and they will anniversary the Technobank acquisition in the fourth quarter, which is an important consideration for that segment. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a balanced mix of organic growth, including significant new commercial wins, and the integration of recent acquisitions in Brazil. The multi-year agreement with Transbank in Chile represents one of the most significant wins in company history, validating EVERTEC's technology stack for large-scale transactional processing. Growth in Puerto Rico remains resilient, supported by favorable employment trends, tourism activity, and specific government tax relief initiatives that boosted consumer spending. Strategic positioning in Mexico was strengthened through a new contract with Clip, marking a key milestone for the company's acquiring services in the region's second-largest market. Management emphasized a disciplined capital allocation strategy, balancing M&A in scalable technology with returning capital to shareholders via a replenished $150 million buyback authorization. The cybersecurity incident in June was managed without operational disruption, with incident response protocols operating as intended and remediation efforts currently ongoing. Full-year 2026 revenue guidance was raised to $1.085 billion to $1.095 billion, reflecting stronger performance in Merchant Acquiring and Latin America segments. The Transbank agreement is expected to begin impacting revenue in the second half of 2027, with a full ramp-up anticipated in 2028. AI initiatives focused on software development and fraud detection are expected to yield visible financial benefits starting in 2027. Management expects the 10% contractual discount headwind from the Popular agreement to cease impacting year-over-year comparisons after the fourth quarter of 2026. The company anticipates maintaining adjusted EBITDA margins between 39% and 40% by offsetting lower-margin Latin American acquisitions with disciplined cost management and scale. The company recorded impairment charges related to a strategic decision to exit a joint venture focused on Latin American payment services. Foreign currency movements, particularly the appreciation of the Brazilian real, provided a $9 million revenue tailwind during the quarter. Acquisition-related impacts, including higher interest and depreciation expenses from the Dimensa and Tecnobank deals, are expected to limit the full translation of operating growth into EPS. A non-recurring volume-based benefit in the Payment Services segment significantly aided margin expansion during the quarter but is not expected to repeat. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The contract involves a migration of Transbank's existing merchant base, allowing for a rapid ramp-up once implementation is complete. Revenue impact will begin in late 2027, with 2028 being the first full year of contribution. Management views this as a milestone that validates their ability to replace legacy bank-owned monopoly systems with modern processing technology. Growth was aided by two distinct pricing efforts: one in late 2025 and a more recent initiative in Q2 2026. The benefit from the Q2 pricing action is expected to persist through the remainder of the year. Management noted that while some tax relief benefits were one-time, underlying consumer spending remains resilient despite higher gas prices. The acquisition provides the technology to digitize and tokenize assets like pension funds and government bonds. It complements EVERTEC's existing ledger platforms by adding next-generation digital infrastructure capabilities. While near-term revenue is modest, it positions the company for the Brazilian government's ongoing digital asset initiatives.

Interested in Evertec, Inc.? Here are five stocks we like better. Strong second-quarter performance: Evertec’s revenue rose 20% year over year to approximately $275 million, while adjusted EBITDA increased 18% to $109 million and adjusted EPS climbed 18% to $1.05. Growth was driven by organic expansion, acquisitions and favorable currency movements. Major expansion across Latin America: The company secured significant multiyear processing agreements with Chile’s Transbank and Mexico’s Clip, while acquisitions of Brazil’s Dimensa and BBChain broaden its financial-software, blockchain and digital-asset capabilities. 2026 outlook raised: Evertec now expects constant-currency revenue growth of 14.5% to 15.6%, up from its prior forecast, while maintaining an adjusted EBITDA margin target of 39% to 40% and projected adjusted EPS growth of up to 11.7%. Evertec (NYSE:EVTC) reported second-quarter 2026 revenue of approximately $275 million, up 20% from a year earlier, as organic growth, recent acquisitions and favorable currency movements lifted results. On a constant-currency basis, revenue increased about 16%. Adjusted EBITDA rose 18% year over year to approximately $109 million, with an adjusted EBITDA margin of 39.8%, compared with 40.3% in the prior-year quarter. Adjusted net income increased 12% to $55 million, while adjusted earnings per share rose 18% to $1.05 from $0.89. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control President and Chief Executive Officer Mac Schuessler said the company’s growth reflected its strategy of pursuing organic expansion, acquisitions and capital returns across Latin America and the Caribbean. During the quarter, Evertec repurchased about 2 million shares for $47 million and paid $3 million in dividends. The company had approximately $83 million remaining under its repurchase authorization at quarter-end before its board replenished the authorization. Evertec announced a multiyear agreement with Transbank, Chile’s largest merchant acquirer, under which it will operate Transbank’s transactional processing environment and selected technology platforms and services. The agreement has an initial term of at least five years. → 3 Drone Stocks That Should Soar After the Summer Slump Schuessler called the Transbank relationship “one of the most important commercial contracts we have besides Popular” and said it represents a milestone for the company’s presence in Chile. He said implementation is underway and that the migration of Transbank’s existing merchant base should allow the business to ramp quickly once deployed. Management expects the Transbank agreement to begin contributing in the second half of 2027 and to be fully ramped in 2028. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Schuessler also discussed Evertec’s contract with Clip, a Mexican financial ecosystem provider serving nearly 1 million merchants. Evertec will provide acquiring switching technology to support Clip’s MiClip e-wallet. Schuessler said the deal is not as large as the Transbank agreement, but called it a meaningful early customer win in Mexico and a notable validation of the company’s capabilities in the market. In Puerto Rico, the company also cited agreements with toll road operator Metropistas to support card-present and card-not-present transactions. Schuessler said the relationships demonstrate how Evertec can combine capabilities across its platform, including technology obtained through prior investments such as PlacetoPay. During the quarter, Evertec completed its acquisition of Dimensa for approximately $199 million. The company said Dimensa expands its software capabilities for financial institutions and broadens its reach within Brazil’s financial-services market. Schuessler said Dimensa’s performance was meeting and slightly exceeding the company’s original expectations. He added that customers have responded positively to Evertec’s ownership and expressed interest in investments that could improve their experience and platform capabilities. Chief Financial Officer Karla Cruz-Jusino said Dimensa currently operates with a lower margin profile than Evertec’s existing Latin America business. However, management expects integration synergies to become more meaningful in 2027. Evertec also completed the acquisition of BBChain, a Brazilian provider of blockchain infrastructure, tokenization, digital custody and digital-asset solutions. Schuessler said the acquisition was small financially but adds technology that could help clients digitize assets such as funds, bonds and other instruments. “It’s still early stage,” Schuessler said, adding that BBChain has already been experimenting with government and financial-services clients in Brazil. He said Brazilian government initiatives exploring the digitization of bonds could create opportunities for the combined platform. Latin America Payments & Solutions was the company’s largest source of revenue and EBITDA growth. Segment revenue climbed 52% year over year to $131 million, including about $9 million from favorable foreign currency movements, primarily related to the Brazilian real. Constant-currency segment revenue growth was approximately 42%. The segment benefited from contributions from Dimensa and Tecnobank, Tecnobank’s expansion into two additional Brazilian states, business outsourcing, licensing and platform revenue, and higher transaction volume across digital solutions in Brazil. Adjusted EBITDA margin expanded about 320 basis points to 30.3%. In Puerto Rico, Merchant Acquiring revenue increased 11% year over year, supported by higher sales volumes, new and existing merchants, improved spread and pricing initiatives. Cruz-Jusino said transaction volume grew 7% during the quarter. Higher gasoline prices and a Puerto Rico tax-relief program also contributed to results, though she said the tax-relief benefit is not expected to recur in the second half. Payments Puerto Rico and Caribbean revenue increased 8% to $61 million. The segment benefited from approximately 12% growth in point-of-sale transactions, double-digit volume and transaction growth at ATH Móvil Business, and a non-recurring volume-based benefit. Adjusted EBITDA margin expanded approximately 210 basis points to 60.6%. Business Solutions revenue declined 9% to $59 million, primarily due to the 10% contractual discount provided to Popular that took effect in October 2025. Management said the headwind will anniversary in the fourth quarter. Management raised its full-year 2026 outlook, citing strength in Merchant Acquiring and Latin America Payments & Solutions, somewhat higher expectations for Dimensa and foreign-exchange benefits. Evertec now expects constant-currency revenue growth of 14.5% to 15.6%, up from its prior outlook of 13.8% to 15%. The company expects high-single-digit revenue growth in Merchant Acquiring, mid-single-digit growth in Payments Puerto Rico and Caribbean, and reported revenue growth in the low 40% range for Latin America Payments & Solutions. Business Solutions revenue is expected to decline by the mid-single digits. Evertec maintained its expectation for adjusted EBITDA margin of 39% to 40% and said it expects adjusted EPS to grow 8.8% to 11.7% from 2025’s $3.62, or 7.2% to 10% on a constant-currency basis. Dimensa is still expected to be EPS-neutral to slightly accretive in 2026. At June 30, Evertec had approximately $1 billion in net debt and $420 million in total liquidity. Net debt to trailing 12-month adjusted EBITDA was approximately 2.55 times, within the company’s targeted range of two to three times. Evertec, Inc (NYSE: EVTC) is a leading full‐service transaction processor in Puerto Rico, Latin America and the Caribbean. The company delivers integrated technology solutions for electronic payments, providing financial institutions, merchants and governments with secure and scalable platforms to accept, process and settle transactions across card, ATM, debit and digital channels. Headquartered in San Juan, Puerto Rico, Evertec supports both domestic and cross‐border payment flows, enabling clients to streamline operations and expand their digital commerce capabilities. Evertec's suite of services includes merchant acquiring, payment gateway connectivity, ATM and point‐of‐sale network management, and fraud prevention solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Evertec Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Raises Full-Year 2026 OutlookIncreases share repurchase authorizationSigns strategic agreements with Transbank and Clip SAN JUAN, Puerto Rico, August 04, 2026--(BUSINESS WIRE)--EVERTEC, Inc. (NYSE: EVTC) ("Evertec" or the "Company") today announced results for the second quarter ended June 30, 2026. Second Quarter 2026 Highlights and Recent Highlights Revenue increased 20% to $274.8 million, approximately 16% on a constant currency basis GAAP Net Income attributable to common shareholders was $5.4 million, or $0.09 per diluted share Adjusted EBITDA increased 18% to $109.3 million and Adjusted earnings per common share increased 18% to $1.05 Returned $50.1 million to shareholders through share repurchases and dividends Advanced EVERTEC's growth strategy in Latin America through agreements with Transbank in Chile and Clip in Mexico Increased the share repurchase authorization to $150 million Raised full-year 2026 Revenue and Adjusted earnings per common share outlook Mac Schuessler, President and Chief Executive Officer stated "We delivered a strong second quarter, reflecting organic growth across our business, the contributions from our recent acquisitions, and the continued execution of our strategy. Given our strong first-half performance and outlook for the remainder of the year, we are raising our full-year guidance and remain focused on executing our strategy." Second Quarter 2026 Results Revenue. Total revenue for the quarter ended June 30, 2026 was $274.8 million, an increase of 20%, compared with $229.6 million in the prior year quarter driven by organic growth across most of the Company's segments, contributions from the recent acquisitions completed in the current and prior year and favorable foreign currency fluctuations. Constant currency revenue amounted to $265.7 million representing growth of 16%. Merchant acquiring revenue benefited from higher sales volume, higher non-transactional revenues and an improvement in spread. Payments Puerto Rico revenue benefited from higher POS transactions and growth in ATH Movil, primarily in ATH Movil Business, as well as a non-recurring volume-based benefit recognized during the quarter. Latin America revenue benefited from the contributions of recent acquisitions, and continued organic growth across the region. Revenue also benefited from foreign currency exchange rate fluctuations of $9.1 million, primarily in Brazil. Business Solutions revenue contracted mainly as a result of the 10% discount to Popular that came into effect in the fourth quarter of 2025. Net Income attributable to common shareholders. For the quarter ended June 30, 2026, GAAP Net Income attributable to common shareholders was $5.4 million or $0.09 per diluted share, compared with $40.5 million or $0.62 per diluted share in the prior year quarter. The decrease was driven in part by certain non-recurring items, including impairment charges associated with the Company's strategic decision to exit an equity method investment, as well as costs related to cybersecurity incident response and remediation activities. The quarter also reflected costs associated with recent acquisitions, including integration related costs, higher depreciation and amortization related to acquired intangible assets, and increased interest expense resulting from higher outstanding debt balances, following recent acquisitions. Income tax expense was also higher, primarily driven by discrete tax items, including taxes associated with a dividend distribution used to partially fund the Dimensa acquisition and a valuation allowance recorded against capital losses generated by the exit of the equity investment, as well as a greater proportion of taxable income generated in higher-tax foreign jurisdictions. While these items impacted reported GAAP results, the Company continued to generate strong underlying operating performance, as reflected in its adjusted results and continued growth across its core businesses. Adjusted EBITDA and Adjusted EBITDA Margin. For the quarter ended June 30, 2026, Adjusted EBITDA was $109.3 million, an increase of $16.8 million when compared to the prior year quarter, driven by the increase in revenues. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total revenue) was 39.8%, compared with 40.3% in the prior year. The modest decrease primarily reflects the higher contribution from the Latin America segment. Adjusted Net Income and Adjusted earnings per common share. For the quarter ended June 30, 2026, Adjusted Net Income was $64.8 million, an increase of $7.1 million when compared with $57.7 million in the prior year quarter. The increase is primarily driven by the higher Adjusted EBITDA, partially offset by a higher adjusted effective tax rate, primarily reflecting the higher contribution from the Latin America segment, higher operating depreciation and amortization expense, and the impact from non-controlling interest associated with the Tecnobank acquisition completed in the fourth quarter of 2025. Adjusted earnings per common share was $1.05, an increase of 18% compared with $0.89 in the prior year quarter, driven by the Adjusted Net Income results and a lower share count reflecting the impact of share repurchases completed during the current and prior year. Share Repurchase During the three months ended June 30, 2026, the Company repurchased 1,907,437 shares of its common stock at an average price of $24.68 per share for a total of $47.1 million. On July 31, 2026, the Company's Board of Directors approved an increase to the share repurchase authorization to an aggregate $150 million, while maintaining the current expiration date of December 31, 2027. Prior to this authorization increase, approximately $83.0 million remained available under the program. The Company may repurchase shares in the open market, through accelerated share repurchase programs, 10b5-1 plans, or in privately negotiated transactions, subject to business opportunities and other factors. 2026 Outlook The Company's revised financial outlook for 2026 is as follows: We now expect revenue between $1,085 million and $1,095 million representing growth of approximately 16.4% to 17.5%, an increase from our previous expectation of 15.1% to 16.4%. Constant currency growth is now expected to be between 14.5% to 15.6%. We now expect Adjusted earnings per common share to be between $3.94 to $4.04 representing growth of approximately 8.8% to 11.7%, an increase from our previous expectation of 6.6% to 9.9%. On a constant currency basis, growth is expected to be between 7.2% to 10.0%. We continue to expect Adjusted EBITDA margin of 39% to 40% We continue to expect capital expenditures to be approximately $90 million We continue to expect an adjusted effective tax rate of approximately 11% to 12% Earnings Conference Call and Audio Webcast The Company will host a conference call to discuss its second quarter 2026 financial results today at 4:30 p.m. ET. Hosting the call will be Mac Schuessler, President and Chief Executive Officer, and Karla Cruz-Jusino, Chief Financial Officer. The conference call can be accessed live over the phone by dialing (800) 715-9871 or for international callers by dialing (646) 307-1963. A replay will be available one hour after the end of the conference call and can be accessed by dialing (855) 669-9658 or (412) 317-0088 for international callers; the pin number is 6110327. The replay will be available through Tuesday, August 11, 2026. The call will be webcast live from the Company’s website at www.evertecinc.com under the Investor Relations section or directly at http://ir.evertecinc.com. A supplemental slide presentation that accompanies this call and webcast can be found on the investor relations website at ir.evertecinc.com and will remain available after the call. About Evertec EVERTEC, Inc. (NYSE: EVTC) is a leading full-service transaction processor and financial technology provider in Latin America, Puerto Rico and the Caribbean, providing a broad range of merchant acquiring, payment services and business process management services. Evertec owns and operates the ATH® network, one of the leading personal identification number ("PIN") debit networks in Latin America. In addition, the Company manages a system of electronic payment networks and offers a comprehensive suite of services for core banking, cash processing and fulfillment in Puerto Rico, that process over ten billion transactions annually. The Company also offers financial technology outsourcing in all the regions it serves. Based in Puerto Rico, the Company operates in 26 Latin American countries and serves a diversified customer base of leading financial institutions, merchants, corporations and government agencies with "mission-critical" technology solutions. For more information, visit www.evertecinc.com. Use of Non-GAAP Financial Information The non-GAAP measures referenced in this earnings release are supplemental measures of the Company’s performance and are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America ("GAAP"). They are not measurements of the Company’s financial performance under GAAP and should not be considered as alternatives to total revenue, net income or any other performance measures derived in accordance with GAAP or as alternatives to cash flows from operating activities, as indicators of operating performance or as measures of the Company’s liquidity. In addition to GAAP measures, management uses these non-GAAP measures to focus on the factors the Company believes are pertinent to the daily management of the Company’s operations and believes that they are also frequently used by analysts, investors and other stakeholders to evaluate companies in our industry. These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations that are necessary to run our business. Other companies, including other companies in our industry, may not use these measures or may calculate these measures differently than as presented herein, limiting their usefulness as comparative measures. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measure are included at the end of this earnings release. These non-GAAP measures include Constant currency revenue, EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings per common share, and Constant Currency Adjusted Earnings per common share, each as defined below. Constant currency revenue represents reported revenue excluding the impact of fluctuations in foreign currency exchange rates in the current period. Constant currency revenue is calculated by applying prior-year period foreign currency exchange rates to current-period revenue. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash items and unusual expenses such as: share-based compensation, restructuring related expenses, fees and expenses from corporate transactions such as M&A activity and financing, multi-year non-recurring gains recognized in connection with the sale of tax credits, equity investment income net of dividends received, and the impact from unrealized gains and losses on foreign currency remeasurement for assets and liabilities in non-functional currency. Segment Adjusted EBITDA which is the measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance, is presented in conformity with Accounting Standards Codification 280, Segment Reporting, and for this reason is excluded from the definition of non-GAAP financial measures under the Securities and Exchange Commission's Regulation G and Item 10(e) of Regulation S-K. The Company’s presentation of Adjusted EBITDA is substantially consistent with the equivalent measurements that are contained in the secured credit facilities in testing EVERTEC Group’s compliance with covenants therein such as the secured leverage ratio. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of total revenues. Adjusted Net Income is defined as Adjusted EBITDA less: operating depreciation and amortization expense, defined as GAAP Depreciation and amortization less amortization of intangibles related to acquisitions such as customer relationships, trademarks, non-compete agreements, among others; cash interest expense defined as GAAP interest expense, less GAAP interest income adjusted to exclude non-cash amortization of debt issue costs and premiums and accretion of discount; income tax expense which is calculated on adjusted pre-tax income using the applicable GAAP tax rate, adjusted for uncertain tax position releases, tax true-ups, windfall from share-based compensation, unrealized gains and losses from foreign currency remeasurement, among others; and non-controlling interests, net of amortization for intangibles created as part of the purchase. Adjusted Earnings per common share is defined as Adjusted Net Income divided by diluted shares outstanding. Constant Currency Adjusted Earnings per common share is defined as Adjusted earnings per common share excluding the impact of fluctuations in foreign currency exchange rates in the current period, calculated by applying prior-year period foreign currency exchange rates to current-period results. The Company uses Adjusted Net Income to measure the Company's overall profitability because the Company believes it better reflects the comparable operating performance by excluding the impact of the non-cash amortization and depreciation that was created as a result of merger and acquisition activity. In addition, in evaluating EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per common share, you should be aware that in the future the Company may incur expenses such as those excluded in calculating them. Forward-Looking Statements Certain statements in this earnings release constitute "forward-looking statements" within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical facts, including, without limitation, statements regarding our future results of operations and financial position, including our guidance for fiscal year 2026; our business strategies; objectives of management for future operations, including, among others, statements regarding our expected growth, international expansion and future capital expenditures; and expectations for and anticipated benefits of acquisitions, are forward looking statements. Words such as "believes," "expects," "anticipates," "intends," "projects," "estimates," and "plans" and similar expressions of future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to: our reliance on our relationship with Popular, Inc. ("Popular") for a significant portion of our revenues pursuant to our second Amended and Restated Master Services Agreement ("A&R MSA") with them, and as it may impact our ability to grow our business; our ability to renew our client contracts on terms favorable to us, including but not limited to the current term and any extension of the A&R MSA with Popular and Amended and Restated Independent Sales Organization Sponsorship and Services Agreement (the "A&R ISO Agreement") with Banco Popular; our reliance on our information technology systems, employees and certain suppliers and counterparties, and certain failures or disruptions in those systems or chains could materially adversely affect our operations; the risk of security breaches or other confidential data theft from our systems; our ability to recruit, retain and develop qualified personnel; fraud by merchants or others; the credit risk of our merchant clients, for which we may also be liable; our use of artificial intelligence ("AI") and machine learning tools and the evolving regulatory framework governing such technology; a decreased client base due to consolidations and/or failures in the financial services industry; our ability to comply with existing and future rules and regulations in the jurisdictions in which we operate; a reduction in consumer confidence, whether as a result of a global economic downturn or otherwise, which leads to a decrease in consumer spending; our dependence on payment card network or other network rules, standards, mandates or fees; the geographical concentration of our business in Puerto Rico, including our business with the government of Puerto Rico and its instrumentalities, which are facing fiscal challenges and the effects of potential natural disasters; risks associated with our presence in international markets, including global political, social and economic instability; operating an international business in Latin America, Puerto Rico and the Caribbean, in jurisdictions with potential political and economic instability; the impact of exposure to foreign exchange fluctuations and capital controls on our costs, earnings and the value of some of our assets; our ability to protect our intellectual property rights against infringement and to defend ourselves against potential intellectual property infringement claims and the potential impact on our business of such claims, whether or not correct; the possibility that we could lose our preferential tax rate in Puerto Rico; the effect of purchases of our common stock pursuant to our stock repurchase plan on the value of our common stock; and the impact of our leverage on our ability to raise additional capital, that our leverage may limit our ability to react to changes in the economy or our industry, expose us to interest rate risk and prevent us from meeting our obligations with respect to our substantial indebtedness, that we and our subsidiaries may be able to incur significant additional indebtedness, which could further increase such risks; and the other factors set forth under "Part 1, Item 1A. Risk Factors," in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission (the "SEC") on March 2, 2026. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless it is required to do so by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804758148/en/ Contacts Investor Contact Lily Arteaga(787) [email protected]

Evertec (EVTC) came out with quarterly earnings of $1.05 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.53%. A quarter ago, it was expected that this payment processing company would post earnings of $0.91 per share when it actually produced earnings of $0.9, delivering a surprise of -1.1%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Evertec, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $274.82 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.12%. This compares to year-ago revenues of $229.61 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Evertec shares have added about 6.9% since the beginning of the year versus the S&P 500's gain of 11%. While Evertec has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Evertec was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.97 on $271.94 million in revenues for the coming quarter and $3.93 on $1.08 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. PagSeguro Digital Ltd. (PAGS), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +17.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. PagSeguro Digital Ltd.'s revenues are expected to be $1.05 billion, up 17.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Evertec, Inc. (EVTC) : Free Stock Analysis Report PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Evertec (EVTC) reported $274.82 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 19.7%. EPS of $1.05 for the same period compares to $0.89 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $263.96 million, representing a surprise of +4.12%. The company delivered an EPS surprise of +10.53%, with the consensus EPS estimate being $0.95. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Evertec performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Payment Services- Puerto Rico & Caribbean: $60.87 million versus the three-analyst average estimate of $59.23 million. The reported number represents a year-over-year change of +7.9%. Revenues- Latin America Payments and Solutions: $130.87 million compared to the $121.35 million average estimate based on three analysts. The reported number represents a change of +52.1% year over year. Revenues- Merchant Acquiring, net: $52.3 million versus $49.74 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +10.6% change. Revenues- Business Solutions: $58.83 million versus the three-analyst average estimate of $62.15 million. The reported number represents a year-over-year change of -8.8%. Revenues- Corporate and Other: $-28.05 million versus $-27.11 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +13.7% change. Adjusted EBITDA- Payment Services- Puerto Rico & Caribbean: $36.89 million compared to the $34.89 million average estimate based on two analysts. Adjusted EBITDA- Business Solutions: $22.56 million versus the two-analyst average estimate of $24.11 million. Adjusted EBITDA- Merchant Acquiring, net: $21.81 million compared to the $21.13 million average estimate based on two analysts. Adjusted EBITDA- Latin America Payments and Solutions: $39.66 million compared to the $34.78 million average estimate based on two analysts. View all Key Company Metrics for Evertec here>>> Shares of Evertec have returned +8% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Evertec, Inc. (EVTC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research