EVERTEC Reports Strong First Quarter 2025 Results

EVERTEC, a leading financial technology provider in Latin America and the Caribbean, has reported its financial results for the first quarter of 2025. The company saw impressive growth across its business segments, demonstrating the strength and resilience of its diversified operations.

Financial Highlights

• Total revenue for the first quarter of 2025 was $228.8 million, an 11% increase compared to the same period in 2024. This was driven by organic growth across all segments as well as contributions from recent acquisitions.

• Net income available to EVERTEC’s common shareholders was $32.7 million, up from $16.0 million in the first quarter of 2024. This translated to earnings per share of $0.50 on a diluted basis, compared to $0.24 in the prior year period.

• Segment Adjusted EBITDA, a key metric used by management to evaluate performance, reached $98.9 million, up from $85.9 million in the first quarter of 2024. This represents a healthy Segment Adjusted EBITDA margin of 39.2%.

• The company generated $37.6 million in cash from operating activities and ended the quarter with $265.9 million in cash and cash equivalents.

Segment Performance

EVERTEC operates in four key business segments: Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, Merchant Acquiring, and Business Solutions.

Payment Services - Puerto Rico & Caribbean

• Revenues in this segment grew 4% year-over-year to $55.2 million, driven by continued growth in the company’s ATH Movil and ATH Business digital payment solutions, as well as overall transaction volume growth.
• Segment Adjusted EBITDA increased 4% to $31.4 million, with a healthy margin of 57.0%.

Latin America Payments and Solutions

• This segment saw a 13% increase in revenues to $83.8 million, benefiting from organic growth, pricing initiatives, and contributions from recent acquisitions.
• Segment Adjusted EBITDA jumped 53% to $24.9 million, with the margin expanding to 29.7% from 22.0% in the prior year period.

Merchant Acquiring

• Revenues in the Merchant Acquiring segment grew 10% to $47.6 million, driven by an improvement in spread and sales volume growth.
• Segment Adjusted EBITDA increased 26% to $20.4 million, with the margin expanding to 42.7% from 37.6%.

Business Solutions

• Revenues in this segment increased 13% to $65.6 million, boosted by the completion of projects in the prior year and higher hardware and software sales.
• Segment Adjusted EBITDA declined 4% to $22.2 million, as the increase in cost of sales from the higher hardware and software sales offset the revenue growth.

Operational Highlights and Strategic Initiatives

The first quarter results demonstrate EVERTEC’s ability to capitalize on the ongoing shift towards digital payments across Latin America and the Caribbean. Some key operational highlights include:

• Continued growth in the company’s digital payment solutions like ATH Movil and ATH Business, which are benefiting from increased consumer demand for contactless and mobile payment options.
• Successful integration of recent acquisitions in Latin America, which are contributing to the segment’s strong performance.
• Expansion of the company’s software solutions and outsourcing services, as financial institutions and businesses increasingly seek to modernize their technology infrastructure.
• Ongoing investment in innovation, including the development of PIX 2.0 to take advantage of Brazil’s instant money transfer system.

These strategic initiatives have positioned EVERTEC well to continue growing its business and expanding its footprint in the fast-growing Latin American market.

Outlook and Future Prospects

Looking ahead, EVERTEC remains optimistic about its growth prospects. The company believes the ongoing shift towards digital payments, the under-penetration of electronic payments in its core markets, and the trend of technology outsourcing will continue to drive demand for its services.

Additionally, EVERTEC’s diversified business model, with operations spanning merchant acquiring, payment processing, and business solutions, provides the company with multiple avenues for growth. The company’s ability to cross-sell its services to its large, established customer base is a key competitive advantage.

However, the company also faces some potential headwinds, including rising interest rates, inflationary pressures, and economic uncertainty in the markets it serves. These factors could impact consumer spending and, in turn, affect the company’s financial performance.

Overall, EVERTEC’s strong first quarter results and its strategic positioning in the fast-growing Latin American fintech market suggest the company is well-poised to continue delivering value for its shareholders. The company’s focus on innovation, integration of recent acquisitions, and diversified business model position it for continued success in the years ahead.