EVERTEC INC Reports Strong Q2 2025 Earnings

EVERTEC INC ((EVTC)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for EVERTEC INC painted a predominantly positive picture, underscored by solid revenue growth across all segments and a strong performance in Latin America. The company also highlighted its robust liquidity position. However, challenges such as decreased margins in the Business Solutions segment and attrition in Latin America were acknowledged. Despite these hurdles, the overall sentiment remained optimistic, with positive aspects outweighing the challenges.

Strong Revenue Growth

EVERTEC INC reported a robust revenue of $230 million for the second quarter of 2025, marking an impressive 8% increase over the previous year. When adjusted for constant currency, the revenue growth was even more significant at 10%. This strong performance underscores the company’s ability to drive growth across its operations.

Increased Adjusted EBITDA

The company saw its adjusted EBITDA rise to $93 million, reflecting an 8% year-over-year increase. This resulted in a healthy EBITDA margin of 40.3%, demonstrating EVERTEC’s operational efficiency and effective cost management strategies.

Positive Performance in Latin America

Latin America proved to be a bright spot for EVERTEC, with revenue increasing by 15% year-over-year, or 20% on a constant currency basis. This growth was fueled by both organic expansion and strategic acquisitions, highlighting the region’s importance to the company’s overall success.

Growth in ATH Móvil

ATH Móvil, EVERTEC’s mobile payment platform, experienced a 17% revenue growth year-over-year. This was largely driven by its strong performance in Puerto Rico, indicating a growing adoption of digital payment solutions in the region.

Liquidity Position

EVERTEC’s liquidity remains robust, standing at approximately $485 million as of June 30. The company’s net debt to trailing 12-month adjusted EBITDA ratio is a comfortable 1.95x, reflecting a strong financial position that supports future growth initiatives.

Updated Share Repurchase Program

The Board of Directors has approved a refresh of the share repurchase program, authorizing up to $150 million in share repurchases through December 31, 2026. This move underscores the company’s commitment to returning value to shareholders.

Business Solutions Segment Margin Decrease

Despite the overall positive performance, the Business Solutions segment experienced a decrease in adjusted EBITDA margin by approximately 750 basis points to 40.3%. This was attributed to the impact of a nonrecurring project recognized in the prior year.

Impact of Lower Gas Prices

Lower gas prices have negatively impacted sales volume growth in the Merchant Acquiring segment. This external factor poses a challenge to maintaining growth in this area.

Attrition in Latin America

The company noted attrition impacts in its Latin America segment, primarily related to the MELI relationship. Addressing these attrition challenges will be crucial for sustaining growth in the region.

Forward-Looking Guidance

EVERTEC’s management provided an optimistic outlook for the remainder of 2025. The company updated its revenue outlook to between $901 million and $909 million, with adjusted EPS growth anticipated between 4.8% and 7%. The adjusted EBITDA margin is expected to remain in the range of 39.5% to 40.5%, with a tax rate of 6% to 7%. The continuation of the share repurchase program further emphasizes the company’s confidence in its financial health and future prospects.

In conclusion, EVERTEC INC’s earnings call highlighted a strong financial performance with significant revenue growth and a solid liquidity position. While challenges such as decreased margins in certain segments and attrition in Latin America were noted, the company’s forward-looking guidance remains optimistic. EVERTEC’s strategic initiatives and robust financial health position it well for continued success in the coming quarters.