EVERTEC, Inc.

What they do

EVERTEC provides merchant acquiring, payment processing and business solutions to financial institutions, merchants, corporations and government agencies in 26 countries from 24 offices. It owns and operates the ATH debit network and processes over ten billion transactions annually. Its Latin America offerings include core banking, investments, asset management, pension funds and consortium solutions, plus managed and security services.

Revenue drivers

• Merchant acquiring — Earns fees on card-present and card-not-present transactions; management describes EVERTEC as one of the largest merchant acquirers in Latin America by transaction count and the largest in the Caribbean. Q2 2026 revenue benefited from higher sales volume, higher non-transactional revenues and improved spread.
• Payments Puerto Rico — Includes point-of-sale transaction processing and the ATH network and ATH Movil; Q2 2026 growth came from higher POS transactions and ATH Movil, primarily ATH Movil Business, plus a non-recurring volume-based benefit.
• Latin America — The segment benefiting from recent acquisitions and organic growth across the region; Q2 2026 revenue included a $9.1 million favorable foreign currency effect, primarily in Brazil, and the segment's higher mix modestly reduced consolidated Adjusted EBITDA margin.
• Business Solutions — Provides core banking, cash processing and fulfillment in Puerto Rico and Latin America; revenue contracted in Q2 2026 mainly due to the 10% discount to Popular that took effect in Q4 2025.

Recent performance

Q2 2026 revenue was $274.8 million, up 20% year over year, or approximately 16% on a constant currency basis. GAAP net income attributable to common shareholders fell to $5.4 million, or $0.09 per diluted share, from $40.5 million, or $0.62, in the prior-year quarter. The decline reflected impairment charges on an equity method investment being exited, cybersecurity incident response and remediation costs, acquisition integration and amortization costs, higher interest expense, and discrete tax items including a valuation allowance on capital losses. Adjusted EBITDA rose 18% to $109.3 million and Adjusted EPS rose 18% to $1.05. The company returned $50.1 million to shareholders through repurchases and dividends.

Strategy

EVERTEC is expanding in Latin America through acquisitions and commercial partnerships, including agreements signed with Transbank in Chile and Clip in Mexico noted in the Q2 2026 release. Recent acquisitions referenced include Dimensa, which was partially funded by a dividend distribution, and the company continues to integrate prior deals such as Sinqia, paySmart and Tecnobank. It also owns and operates the ATH network and is growing ATH Movil, particularly ATH Movil Business. On August 4, 2026 the company increased its share repurchase authorization to $150 million and raised full-year 2026 revenue and Adjusted EPS outlook.

Risks

• Customer concentration — Approximately 29% of 2025 revenue was attributable to Banco Popular under the A&R MSA, which has a term ending in 2028; termination or reduced services by Popular would materially reduce revenue, profitability and cash flow.
• Leverage and interest rates — Long-term debt was $1.22 billion at June 30, 2026, and a hypothetical 100 basis point increase in rates over the floor would add approximately $7.5 million of annual interest expense.
• Foreign exchange — Results are exposed to Latin American currency movements; Q2 2026 revenue included a $9.1 million favorable currency effect, and the company recognized $0.7 million of non-cash unrealized remeasurement losses in the first half of 2026.
• Integration and non-recurring costs — Q2 2026 GAAP results were reduced by acquisition integration costs, amortization of acquired intangibles, cybersecurity incident response and remediation costs, and impairment charges on an equity method investment being exited.

Outlook

Management raised full-year 2026 revenue and Adjusted earnings per common share guidance, citing strong first-half performance and the outlook for the remainder of the year. The company also increased its share repurchase authorization to $150 million. Management stated it remains focused on executing its strategy across Latin America.