EVERTEC (EVTC) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 increased 20% year-over-year to $274.8 million, driven by organic growth, acquisitions, and favorable FX, with strong performance in Merchant Acquiring and Latin America segments.

• Adjusted EBITDA rose 18% to $109.3 million, with margin at 39.8%; Adjusted EPS increased 18% to $1.05, benefiting from share repurchases.

• Major acquisitions of Dimensa, BBChain, and Tecnobank expanded software, blockchain, and fintech capabilities in Brazil and Latin America.

• Strategic agreements signed with Transbank (Chile), Clip (Mexico), and Metropistas (Puerto Rico), strengthening presence in key Latin American markets.

• Shareholder returns totaled $50.1 million via repurchases and dividends; share repurchase authorization increased to $150 million through December 2027.

Financial highlights

• Q2 2026 revenue: $274.8 million (+20% YoY; +16% constant currency); Adjusted EBITDA: $109.3 million (+18% YoY), margin 39.8%.

• Adjusted net income: $64.8 million (+12% YoY); Adjusted EPS: $1.05 (+18% YoY).

• GAAP net income attributable to common shareholders: $5.4 million ($0.09 per diluted share), down from $40.5 million ($0.62) YoY, due to non-recurring items and higher costs.

• Net cash from operating activities: $91 million for the quarter; $90.7 million for the first half.

• Cash and cash equivalents at June 30, 2026: $260.7 million; total liquidity: $420 million.

Outlook and guidance

• 2026 revenue guidance: $1,085 million–$1,095 million (16.4%–17.5% growth; 14.5%–15.6% constant currency).

• Adjusted EPS guidance: $3.94–$4.04 (8.8%–11.7% growth); Adjusted EBITDA margin expected at 39%–40%.

• Capital expenditures projected at $90 million; adjusted effective tax rate at 11%–12%.

• Merchant Acquiring expected to grow high single digits; Latin America Payments & Solutions to grow low 40% reported, mid-high 30% constant currency.

• Business Solutions revenue to decline mid-single digits due to Popular contract discount.