{"success":true,"data":{"pressRelease":{"id":"108531","rtpr_id":"nBwKkWJBa","ticker":"EVTC","exchange":"NYSE","all_tickers":["EVTC"],"title":"EVERTEC Reports Second Quarter 2026 Results","author":"Business Wire","published_at":"2026-08-04T20:05:00.621Z","article_body":"EVERTEC Reports Second Quarter 2026 Results\n\nRaises Full-Year 2026 Outlook\n\nIncreases share repurchase authorization\n\nSigns strategic agreements with Transbank and Clip\n\nEVERTEC, Inc. (NYSE: EVTC) (“Evertec” or the “Company”) today\nannounced results for the second quarter ended June 30, 2026.\n\nSecond Quarter 2026 Highlights and Recent Highlights\n\n\n * Revenue increased 20% to $274.8 million, approximately 16% on a constant\ncurrency basis\n\n * GAAP Net Income attributable to common shareholders was $5.4 million, or $0.09\nper diluted share\n\n * Adjusted EBITDA increased 18% to $109.3 million and Adjusted earnings per\ncommon share increased 18% to $1.05\n\n * Returned $50.1 million to shareholders through share repurchases and dividends\n\n * Advanced EVERTEC's growth strategy in Latin America through agreements with\nTransbank in Chile and Clip in Mexico\n\n * Increased the share repurchase authorization to $150 million\n\n * Raised full-year 2026 Revenue and Adjusted earnings per common share outlook\n\nMac Schuessler, President and Chief Executive Officer stated “We delivered a\nstrong second quarter, reflecting organic growth across our business, the\ncontributions from our recent acquisitions, and the continued execution of our\nstrategy. Given our strong first-half performance and outlook for the\nremainder of the year, we are raising our full-year guidance and remain\nfocused on executing our strategy.”\n\nSecond Quarter 2026 Results\n\nRevenue. Total revenue for the quarter ended June 30, 2026 was $274.8 million,\nan increase of 20%, compared with $229.6 million in the prior year quarter\ndriven by organic growth across most of the Company's segments, contributions\nfrom the recent acquisitions completed in the current and prior year and\nfavorable foreign currency fluctuations. Constant currency revenue amounted to\n$265.7 million representing growth of 16%. Merchant acquiring revenue\nbenefited from higher sales volume, higher non-transactional revenues and an\nimprovement in spread. Payments Puerto Rico revenue benefited from higher POS\ntransactions and growth in ATH Movil, primarily in ATH Movil Business, as well\nas a non-recurring volume-based benefit recognized during the quarter. Latin\nAmerica revenue benefited from the contributions of recent acquisitions, and\ncontinued organic growth across the region. Revenue also benefited from\nforeign currency exchange rate fluctuations of $9.1 million, primarily in\nBrazil. Business Solutions revenue contracted mainly as a result of the 10%\ndiscount to Popular that came into effect in the fourth quarter of 2025.\n\nNet Income attributable to common shareholders. For the quarter ended June 30,\n2026, GAAP Net Income attributable to common shareholders was $5.4 million or\n$0.09 per diluted share, compared with $40.5 million or $0.62 per diluted\nshare in the prior year quarter. The decrease was driven in part by certain\nnon-recurring items, including impairment charges associated with the\nCompany's strategic decision to exit an equity method investment, as well as\ncosts related to cybersecurity incident response and remediation activities.\nThe quarter also reflected costs associated with recent acquisitions,\nincluding integration related costs, higher depreciation and amortization\nrelated to acquired intangible assets, and increased interest expense\nresulting from higher outstanding debt balances, following recent\nacquisitions. Income tax expense was also higher, primarily driven by discrete\ntax items, including taxes associated with a dividend distribution used to\npartially fund the Dimensa acquisition and a valuation allowance recorded\nagainst capital losses generated by the exit of the equity investment, as well\nas a greater proportion of taxable income generated in higher-tax foreign\njurisdictions. While these items impacted reported GAAP results, the Company\ncontinued to generate strong underlying operating performance, as reflected in\nits adjusted results and continued growth across its core businesses.\n\nAdjusted EBITDA and Adjusted EBITDA Margin. For the quarter ended June 30,\n2026, Adjusted EBITDA was $109.3 million, an increase of $16.8 million when\ncompared to the prior year quarter, driven by the increase in revenues.\nAdjusted EBITDA margin (Adjusted EBITDA as a percentage of total revenue) was\n39.8%, compared with 40.3% in the prior year. The modest decrease primarily\nreflects the higher contribution from the Latin America segment.\n\nAdjusted Net Income and Adjusted earnings per common share. For the quarter\nended June 30, 2026, Adjusted Net Income was $64.8 million, an increase of\n$7.1 million when compared with $57.7 million in the prior year quarter. The\nincrease is primarily driven by the higher Adjusted EBITDA, partially offset\nby a higher adjusted effective tax rate, primarily reflecting the higher\ncontribution from the Latin America segment, higher operating depreciation and\namortization expense, and the impact from non-controlling interest associated\nwith the Tecnobank acquisition completed in the fourth quarter of 2025.\nAdjusted earnings per common share was $1.05, an increase of 18% compared with\n$0.89 in the prior year quarter, driven by the Adjusted Net Income results and\na lower share count reflecting the impact of share repurchases completed\nduring the current and prior year.\n\nShare Repurchase\n\nDuring the three months ended June 30, 2026, the Company repurchased 1,907,437\nshares of its common stock at an average price of $24.68 per share for a total\nof $47.1 million.\n\nOn July 31, 2026, the Company's Board of Directors approved an increase to the\nshare repurchase authorization to an aggregate $150 million, while maintaining\nthe current expiration date of December 31, 2027. Prior to this authorization\nincrease, approximately $83.0 million remained available under the program.\nThe Company may repurchase shares in the open market, through accelerated\nshare repurchase programs, 10b5-1 plans, or in privately negotiated\ntransactions, subject to business opportunities and other factors.\n\n2026 Outlook\n\nThe Company's revised financial outlook for 2026 is as follows:\n\n\n * We now expect revenue between $1,085 million and $1,095 million representing\ngrowth of approximately 16.4% to 17.5%, an increase from our previous\nexpectation of 15.1% to 16.4%. Constant currency growth is now expected to be\nbetween 14.5% to 15.6%.\n\n * We now expect Adjusted earnings per common share to be between $3.94 to $4.04\nrepresenting growth of approximately 8.8% to 11.7%, an increase from our\nprevious expectation of 6.6% to 9.9%. On a constant currency basis, growth is\nexpected to be between 7.2% to 10.0%.\n\n * We continue to expect Adjusted EBITDA margin of 39% to 40%\n\n * We continue to expect capital expenditures to be approximately $90 million\n\n * We continue to expect an adjusted effective tax rate of approximately 11% to\n12%\n\nEarnings Conference Call and Audio Webcast\n\nThe Company will host a conference call to discuss its second quarter 2026\nfinancial results today at 4:30 p.m. ET. Hosting the call will be Mac\nSchuessler, President and Chief Executive Officer, and Karla Cruz-Jusino,\nChief Financial Officer. The conference call can be accessed live over the\nphone by dialing (800) 715-9871 or for international callers by dialing (646)\n307-1963. A replay will be available one hour after the end of the conference\ncall and can be accessed by dialing (855) 669-9658 or (412) 317-0088 for\ninternational callers; the pin number is 6110327. The replay will be available\nthrough Tuesday, August 11, 2026. The call will be webcast live from the\nCompany’s website at www.evertecinc.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.evertecinc.com&esheet=54583312&newsitemid=20260804758148&lan=en-US&anchor=www.evertecinc.com&index=1&md5=f7cf6bef01acdad3342ff3e56587c11d)\nunder the Investor Relations section or directly at http://ir.evertecinc.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fir.evertecinc.com&esheet=54583312&newsitemid=20260804758148&lan=en-US&anchor=http%3A%2F%2Fir.evertecinc.com&index=2&md5=35b41d8554684078018165024efe23bc)\n. A supplemental slide presentation that accompanies this call and webcast can\nbe found on the investor relations website at ir.evertecinc.com and will\nremain available after the call.\n\nAbout Evertec\n\nEVERTEC, Inc. (NYSE: EVTC) is a leading full-service transaction processor and\nfinancial technology provider in Latin America, Puerto Rico and the Caribbean,\nproviding a broad range of merchant acquiring, payment services and business\nprocess management services. Evertec owns and operates the ATH® network, one\nof the leading personal identification number (“PIN”) debit networks in\nLatin America. In addition, the Company manages a system of electronic payment\nnetworks and offers a comprehensive suite of services for core banking, cash\nprocessing and fulfillment in Puerto Rico, that process over ten billion\ntransactions annually. The Company also offers financial technology\noutsourcing in all the regions it serves. Based in Puerto Rico, the Company\noperates in 26 Latin American countries and serves a diversified customer base\nof leading financial institutions, merchants, corporations and government\nagencies with “mission-critical” technology solutions. For more\ninformation, visit www.evertecinc.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.evertecinc.com&esheet=54583312&newsitemid=20260804758148&lan=en-US&anchor=www.evertecinc.com&index=3&md5=f6de1ec9d07ec8c44546de8c2085503a)\n.\n\nUse of Non-GAAP Financial Information\n\nThe non-GAAP measures referenced in this earnings release are supplemental\nmeasures of the Company’s performance and are not required by, or presented\nin accordance with, accounting principles generally accepted in the United\nStates of America (“GAAP”). They are not measurements of the Company’s\nfinancial performance under GAAP and should not be considered as alternatives\nto total revenue, net income or any other performance measures derived in\naccordance with GAAP or as alternatives to cash flows from operating\nactivities, as indicators of operating performance or as measures of the\nCompany’s liquidity. In addition to GAAP measures, management uses these\nnon-GAAP measures to focus on the factors the Company believes are pertinent\nto the daily management of the Company’s operations and believes that they\nare also frequently used by analysts, investors and other stakeholders to\nevaluate companies in our industry. These measures have certain limitations in\nthat they do not include the impact of certain expenses that are reflected in\nour condensed consolidated statements of operations that are necessary to run\nour business. Other companies, including other companies in our industry, may\nnot use these measures or may calculate these measures differently than as\npresented herein, limiting their usefulness as comparative measures.\n\nReconciliations of the non-GAAP measures to the most directly comparable GAAP\nmeasure are included at the end of this earnings release. These non-GAAP\nmeasures include Constant currency revenue, EBITDA, Adjusted EBITDA, Adjusted\nNet Income, Adjusted Earnings per common share, and Constant Currency Adjusted\nEarnings per common share, each as defined below.\n\nConstant currency revenue represents reported revenue excluding the impact of\nfluctuations in foreign currency exchange rates in the current period.\nConstant currency revenue is calculated by applying prior-year period foreign\ncurrency exchange rates to current-period revenue.\n\nEBITDA is defined as earnings before interest, taxes, depreciation and\namortization.\n\nAdjusted EBITDA is defined as EBITDA further adjusted to exclude certain\nnon-cash items and unusual expenses such as: share-based compensation,\nrestructuring related expenses, fees and expenses from corporate transactions\nsuch as M&A activity and financing, multi-year non-recurring gains\nrecognized in connection with the sale of tax credits, equity investment\nincome net of dividends received, and the impact from unrealized gains and\nlosses on foreign currency remeasurement for assets and liabilities in\nnon-functional currency. Segment Adjusted EBITDA which is the measure reported\nto the chief operating decision maker for purposes of making decisions about\nallocating resources to the segments and assessing their performance, is\npresented in conformity with Accounting Standards Codification 280, Segment\nReporting, and for this reason is excluded from the definition of non-GAAP\nfinancial measures under the Securities and Exchange Commission's Regulation G\nand Item 10(e) of Regulation S-K. The Company’s presentation of Adjusted\nEBITDA is substantially consistent with the equivalent measurements that are\ncontained in the secured credit facilities in testing EVERTEC Group’s\ncompliance with covenants therein such as the secured leverage ratio. Adjusted\nEBITDA Margin is defined as Adjusted EBITDA as a percentage of total revenues.\n\nAdjusted Net Income is defined as Adjusted EBITDA less: operating depreciation\nand amortization expense, defined as GAAP Depreciation and amortization less\namortization of intangibles related to acquisitions such as customer\nrelationships, trademarks, non-compete agreements, among others; cash interest\nexpense defined as GAAP interest expense, less GAAP interest income adjusted\nto exclude non-cash amortization of debt issue costs and premiums and\naccretion of discount; income tax expense which is calculated on adjusted\npre-tax income using the applicable GAAP tax rate, adjusted for uncertain tax\nposition releases, tax true-ups, windfall from share-based compensation,\nunrealized gains and losses from foreign currency remeasurement, among others;\nand non-controlling interests, net of amortization for intangibles created as\npart of the purchase.\n\nAdjusted Earnings per common share is defined as Adjusted Net Income divided\nby diluted shares outstanding.\n\nConstant Currency Adjusted Earnings per common share is defined as Adjusted\nearnings per common share excluding the impact of fluctuations in foreign\ncurrency exchange rates in the current period, calculated by applying\nprior-year period foreign currency exchange rates to current-period results.\n\nThe Company uses Adjusted Net Income to measure the Company's overall\nprofitability because the Company believes it better reflects the comparable\noperating performance by excluding the impact of the non-cash amortization and\ndepreciation that was created as a result of merger and acquisition activity.\nIn addition, in evaluating EBITDA, Adjusted EBITDA, Adjusted Net Income and\nAdjusted Earnings per common share, you should be aware that in the future the\nCompany may incur expenses such as those excluded in calculating them.\n\nForward-Looking Statements\n\nCertain statements in this earnings release constitute “forward-looking\nstatements” within the meaning of, and subject to the protection of, the\nPrivate Securities Litigation Reform Act of 1995. We intend such\nforward-looking statements to be covered by the safe harbor provisions for\nforward-looking statements contained in Section 27A of the Securities Act of\n1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as\namended. All statements contained in this press release other than statements\nof historical facts, including, without limitation, statements regarding our\nfuture results of operations and financial position, including our guidance\nfor fiscal year 2026; our business strategies; objectives of management for\nfuture operations, including, among others, statements regarding our expected\ngrowth, international expansion and future capital expenditures; and\nexpectations for and anticipated benefits of acquisitions, are forward looking\nstatements. Words such as “believes,” “expects,” “anticipates,”\n“intends,” “projects,” “estimates,” and “plans” and similar\nexpressions of future or conditional verbs such as “will,” “should,”\n“would,” “may,” and “could” are generally forward-looking in\nnature and not historical facts.\n\nVarious factors that could cause actual future results and other future events\nto differ materially from those estimated by management include, but are not\nlimited to: our reliance on our relationship with Popular, Inc.\n(“Popular”) for a significant portion of our revenues pursuant to our\nsecond Amended and Restated Master Services Agreement (“A&R MSA”) with\nthem, and as it may impact our ability to grow our business; our ability to\nrenew our client contracts on terms favorable to us, including but not limited\nto the current term and any extension of the A&R MSA with Popular and\nAmended and Restated Independent Sales Organization Sponsorship and Services\nAgreement (the “A&R ISO Agreement”) with Banco Popular; our reliance\non our information technology systems, employees and certain suppliers and\ncounterparties, and certain failures or disruptions in those systems or chains\ncould materially adversely affect our operations; the risk of security\nbreaches or other confidential data theft from our systems; our ability to\nrecruit, retain and develop qualified personnel; fraud by merchants or others;\nthe credit risk of our merchant clients, for which we may also be liable; our\nuse of artificial intelligence (“AI”) and machine learning tools and the\nevolving regulatory framework governing such technology; a decreased client\nbase due to consolidations and/or failures in the financial services industry;\nour ability to comply with existing and future rules and regulations in the\njurisdictions in which we operate; a reduction in consumer confidence, whether\nas a result of a global economic downturn or otherwise, which leads to a\ndecrease in consumer spending; our dependence on payment card network or other\nnetwork rules, standards, mandates or fees; the geographical concentration of\nour business in Puerto Rico, including our business with the government of\nPuerto Rico and its instrumentalities, which are facing fiscal challenges and\nthe effects of potential natural disasters; risks associated with our presence\nin international markets, including global political, social and economic\ninstability; operating an international business in Latin America, Puerto Rico\nand the Caribbean, in jurisdictions with potential political and economic\ninstability; the impact of exposure to foreign exchange fluctuations and\ncapital controls on our costs, earnings and the value of some of our assets;\nour ability to protect our intellectual property rights against infringement\nand to defend ourselves against potential intellectual property infringement\nclaims and the potential impact on our business of such claims, whether or not\ncorrect; the possibility that we could lose our preferential tax rate in\nPuerto Rico; the effect of purchases of our common stock pursuant to our stock\nrepurchase plan on the value of our common stock; and the impact of our\nleverage on our ability to raise additional capital, that our leverage may\nlimit our ability to react to changes in the economy or our industry, expose\nus to interest rate risk and prevent us from meeting our obligations with\nrespect to our substantial indebtedness, that we and our subsidiaries may be\nable to incur significant additional indebtedness, which could further\nincrease such risks; and the other factors set forth under “Part 1, Item 1A.\nRisk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal\nyear ended December 31, 2025 filed with the Securities and Exchange Commission\n(the “SEC”) on March 2, 2026. The Company undertakes no obligation to\nrelease publicly any revisions to any forward-looking statements, to report\nevents or to report the occurrence of unanticipated events unless it is\nrequired to do so by law.\n                                                                                                                                                                                                    \n EVERTEC, Inc.                                                                                                                                                                                      \n Schedule 1: Unaudited Condensed Consolidated Statements of Income and                                                                                                                              \n Comprehensive Income (Loss)                                                                                                                                                                        \n                                                                                                                                                                                                    \n Revenues                                                                           Three Months Ended June 30,                               Six Months Ended June 30,                             \n Revenues                                                                                 2026                          2025                        2026                          2025              \n Revenues                                                                           $     274,820                 $     229,607               $     522,743                 $     458,399           \n                                                                                                                                                                                                    \n Operating costs and expenses                                                                                                                                                                       \n Cost of revenues, exclusive of depreciation and amortization                             124,241                       110,060                     242,486                       224,669           \n Selling, general and administrative expenses                                             57,310                        35,104                      105,156                       71,314            \n Depreciation and amortization                                                            39,991                        28,309                      77,254                        56,782            \n Total operating costs and expenses                                                       221,542                       173,473                     424,896                       352,765           \n Income from operations                                                                   53,278                        56,134                      97,847                        105,634           \n Non-operating income (expenses)                                                                                                                                                                    \n Interest income                                                                          3,727                         3,079                       7,587                         6,330             \n Interest expense                                                                         (20,264     )                 (16,719     )               (37,621     )                 (33,707     )     \n (Loss) gain on foreign currency remeasurement                                            (698        )                 1,348                       (4,424      )                 515               \n (Losses) earnings from equity investees                                                  (7,768      )                 867                         (6,322      )                 2,944             \n Other (loss) income, net                                                                 (1,124      )                 334                         (937        )                 554               \n Total non-operating expenses                                                             (26,127     )                 (11,091     )               (41,717     )                 (23,364     )     \n Income before income taxes                                                               27,151                        45,043                      56,130                        82,270            \n Income tax expense                                                                       20,274                        4,070                       24,506                        8,206             \n Net income                                                                               6,877                         40,973                      31,624                        74,064            \n Less: Net income attributable to non-controlling interest                                1,472                         508                         2,468                         896               \n Net income attributable to EVERTEC, Inc.’s common stockholders                           5,405                         40,465                      29,156                        73,168            \n Other comprehensive income, net of tax                                                                                                                                                             \n Foreign currency translation adjustments                                                 9,257                         32,495                      58,831                        79,206            \n Gain (loss) on cash flow hedges                                                          1,990                         (2,160      )               4,739                         (6,152      )     \n Unrealized gain on change in fair value of debt securities available-for-sale            21                            2                           17                            10                \n Other comprehensive income, net of tax                                             $     11,268                  $     30,337                $     63,587                  $     73,064            \n Total comprehensive income attributable to EVERTEC, Inc.’s common                  $     16,673                  $     70,802                $     92,743                  $     146,232           \n stockholders                                                                                                                                                                                       \n Net income per common share:                                                                                                                                                                       \n Basic                                                                              $     0.09                    $     0.63                  $     0.48                    $     1.15              \n Diluted                                                                            $     0.09                    $     0.62                  $     0.47                    $     1.13              \n Shares used in computing net income per common share:                                                                                                                                              \n Basic                                                                                    60,916,714                    64,030,322                  61,353,699                    63,884,710        \n Diluted                                                                                  61,446,374                    64,870,358                  62,030,514                    64,808,817        \n\n                                                                                                                                         \n EVERTEC, Inc.                                                                                                                           \n Schedule 2: Unaudited Condensed Consolidated Balance Sheets                                                                             \n                                                                                                                                         \n (Dollar amounts in thousands, except share data)                                June 30, 2026                December 31, 2025          \n Assets                                                                                                                                  \n Current Assets:                                                                                                                         \n Cash and cash equivalents                                                       $      260,659               $       305,993            \n Restricted cash                                                                        29,737                        25,838             \n Accounts receivable, net                                                               182,619                       164,381            \n Settlement assets                                                                      28,072                        26,098             \n Prepaid expenses and other assets                                                      85,056                        68,462             \n Total current assets                                                                   586,143                       590,772            \n Debt securities available-for-sale, at fair value                                      4,236                         3,202              \n Equity securities, at fair value                                                       6,144                         5,849              \n Investments in equity investees                                                        18,452                        30,120             \n Property and equipment, net                                                            66,297                        64,354             \n Operating lease right-of-use asset                                                     36,584                        38,218             \n Goodwill                                                                               1,070,494                     891,992            \n Other intangible assets, net                                                           610,782                       553,082            \n Deferred tax asset                                                                     47,427                        45,386             \n Derivative asset                                                                       1,990                         —                  \n Other long-term assets                                                                 31,069                        20,321             \n Total assets                                                                    $      2,479,618             $       2,243,296          \n Liabilities and stockholders’ equity                                                                                                    \n Current Liabilities:                                                                                                                    \n Accrued liabilities                                                             $      143,021               $       125,575            \n Accounts payable                                                                       58,094                        63,726             \n Contract liability                                                                     32,770                        26,573             \n Income tax payable                                                                     11,446                        3,218              \n Current portion of long-term debt                                                      29,834                        23,867             \n Short-term borrowings                                                                  35,000                        10,000             \n Current portion of operating lease liability                                           5,791                         5,878              \n Settlement liabilities                                                                 28,343                        26,202             \n Total current liabilities                                                              344,299                       285,039            \n Long-term debt                                                                         1,221,871                     1,053,030          \n Deferred tax liability                                                                 79,884                        71,356             \n Contract liability - long term                                                         35,016                        47,032             \n Operating lease liability - long-term                                                  31,822                        33,305             \n Derivative liability                                                                   843                           5,225              \n Other long-term liabilities                                                            46,804                        34,317             \n Total liabilities                                                                      1,760,539                     1,529,304          \n Redeemable non-controlling interests                                                   74,171                        89,155             \n Stockholders’ equity                                                                                                                    \n Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued             —                             —                  \n Common stock, par value $0.01; 206,000,000 shares authorized; 59,752,542               597                           618                \n shares issued and outstanding as of June 30, 2026 (December 31, 2025 -                                                                  \n 61,756,639)                                                                                                                             \n Additional paid-in capital                                                             —                             —                  \n Accumulated earnings                                                                   643,969                       687,696            \n Accumulated other comprehensive loss, net of tax                                       (3,121     )                  (66,708    )       \n Total EVERTEC, Inc. stockholders’ equity                                               641,445                       621,606            \n Non-controlling interest                                                               3,463                         3,231              \n Total equity                                                                           644,908                       624,837            \n Total liabilities and equity                                                    $      2,479,618             $       2,243,296          \n\n                                                                                                                                      \n EVERTEC, Inc.                                                                                                                        \n Schedule 3: Unaudited Condensed Consolidated Statements of Cash Flows                                                                \n                                                                                                                                      \n                                                                                     Six Months Ended June 30,                        \n (In thousands)                                                                            2026                        2025           \n Cash flows from operating activities                                                                                                 \n Net income                                                                          $     31,624                $     74,064         \n Adjustments to reconcile net income to net cash provided by operating                                                                \n activities:                                                                                                                          \n Depreciation and amortization                                                             77,254                      56,782         \n Amortization of debt issue costs and accretion of discount                                2,559                       2,246          \n Operating lease amortization                                                              2,957                       3,522          \n Deferred tax benefit                                                                      (10,508   )                 (10,726  )     \n Share-based compensation                                                                  15,736                      14,548         \n Loss on impairment of investment in equity investee                                       8,910                       —              \n Earnings of equity investees                                                              (2,588    )                 (2,944   )     \n Loss (gain) on foreign currency remeasurement                                             4,424                       (515     )     \n Other, net                                                                                3,010                       (1,398   )     \n (Increase) decrease in assets:                                                                                                       \n Accounts receivable, net                                                                  (18,696   )                 (15,616  )     \n Prepaid expenses and other assets                                                         (2,562    )                 (4,574   )     \n Other long-term assets                                                                    (2,872    )                 2,783          \n (Decrease) increase in liabilities:                                                                                                  \n Accrued liabilities and accounts payable                                                  2,805                       (22,304  )     \n Income tax payable                                                                        (9,905    )                 (3,531   )     \n Contract liability                                                                        (4,446    )                 (6,862   )     \n Operating lease liabilities                                                               (4,384    )                 (3,788   )     \n Other long-term liabilities                                                               (2,627    )                 4,441          \n Total adjustments                                                                         59,067                      12,064         \n Net cash provided by operating activities                                                 90,691                      86,128         \n Cash flows from investing activities                                                                                                 \n Additions to software and other intangible assets                                         (36,580   )                 (30,902  )     \n Property and equipment acquired                                                           (11,256   )                 (11,404  )     \n Acquisition of available-for-sale debt securities                                         (928      )                 (561     )     \n Payments for non-compete agreements                                                       (431      )                 (662     )     \n Proceeds from maturities of available-for-sale debt securities                            —                           1,000          \n Acquisitions, net of cash acquired                                                        (179,757  )                 —              \n Other investing activities, net                                                           3                           (151     )     \n Net cash used in investing activities                                                     (228,949  )                 (42,680  )     \n Cash flows from financing activities                                                                                                 \n Debt issuance costs                                                                       (1,276    )                 —              \n Acquisition of redeemable non-controlling interests                                       (23,098   )                 (5,167   )     \n Withholding taxes paid on share-based compensation                                        (7,385    )                 (8,918   )     \n Proceeds from issuance of long term debt                                                  184,538                     —              \n Net increase in Revolving Facility                                                        25,000                      —              \n Dividends paid to noncontrolling interest holders                                         (5,989    )                 (1,249   )     \n Dividends paid                                                                            (6,119    )                 (6,383   )     \n Repurchase of common stock                                                                (67,049   )                 (3,691   )     \n Repayment of long-term debt                                                               (11,933   )                 (11,933  )     \n Settlement activity, net                                                                  (2,498    )                 2,209          \n Other financing activities, net                                                           (6,429    )                 (5,193   )     \n Net cash provided by (used in) financing activities                                       77,762                      (40,325  )     \n Effect of foreign exchange rate on cash, cash equivalents and restricted cash             16,563                      15,205         \n Net (decrease) increase in cash, cash equivalents, restricted cash and cash               (43,933   )                 18,328         \n included in settlement assets                                                                                                        \n Cash, cash equivalents, restricted cash and cash included in settlement assets            348,129                     314,649        \n at the beginning of the period                                                                                                       \n Cash, cash equivalents, restricted cash, and cash included in settlement            $     304,196               $     332,977        \n assets at end of the period                                                                                                          \n Cash and cash equivalents                                                                 260,659                     290,578        \n Restricted cash                                                                           29,737                      23,780         \n Cash and cash equivalents included in settlement assets                                   13,800                      18,619         \n Cash, cash equivalents, restricted cash and cash included in settlement assets      $     304,196               $     332,977        \n\n                                                                                                                                                                                                                                       \n EVERTEC, Inc.                                                                                                                                                                                                                         \n Schedule 4: Unaudited Segment Information                                                                                                                                                                                             \n                                                                                                                                                                                                                                       \n                  Three Months Ended June 30, 2026                                                                                                                                                                                     \n (In thousands)   Payment                               Latin America Payments and Solutions          Merchant                Business            Total Reportable Segments         Corporate and Other ((1))            Total         \n                  \n                                                                                   \n                       \n                                                                                                        \n                  \nServices -                                                                         \nAcquiring, net         \nSolutions                                                                                               \n                  \n                                                                                                                                                                                                                    \n                  \nPuerto Rico & Caribbean                                                                                                                                                                                             \n                                                                                                                                                                                                                                       \n Revenues         $                60,869               $                    130,873                  $         52,301        $       58,825      $              302,868            $          (28,048    )              $    274,820  \n Adjusted EBITDA  $                36,894               $                    39,656                   $         21,805        $       22,556      $              120,911            $          (11,576    )              $    109,335  \n\n (1)    Corporate and Other consists of corporate overhead, certain leveraged            \n        activities, other non-operating expenses and intersegment eliminations.          \n        Intersegment revenue eliminations predominantly reflect the $16.1 million        \n        processing fee from Payments Services - Puerto Rico & Caribbean to               \n        Merchant Acquiring, intercompany software developments and                       \n        transaction-processing of $7.9 million from Latin America Payments and           \n        Solutions to both Payment Services- Puerto Rico & Caribbean and Business         \n        Solutions, and transaction-processing and monitoring fees of $4.0 million from   \n        Payment Services - Puerto Rico & Caribbean to Latin America Payments and         \n        Solutions.                                                                       \n\n                                                                                                                                                                                                                                       \n                  Three Months Ended June 30, 2025                                                                                                                                                                                     \n (In thousands)   Payment                               Latin America Payments and Solutions          Merchant                Business            Total Reportable Segments         Corporate and Other ((1))            Total         \n                  \n                                                                                   \n                       \n                                                                                                        \n                  \nServices -                                                                         \nAcquiring, net         \nSolutions                                                                                               \n                  \n                                                                                                                                                                                                                    \n                  \nPuerto Rico & Caribbean                                                                                                                                                                                             \n                                                                                                                                                                                                                                       \n Revenues         $                56,421               $                    86,055                   $         47,292        $       64,519      $              254,287            $          (24,680    )              $    229,607  \n Adjusted EBITDA  $                33,028               $                    23,350                   $         20,002        $       26,032      $              102,412            $          (9,847     )              $    92,565   \n\n (1)    Corporate and Other consists of corporate overhead, certain leveraged            \n        activities, other non-operating expenses and intersegment eliminations.          \n        Intersegment revenue eliminations predominantly reflect the $14.8 million        \n        processing fee from Payments Services - Puerto Rico & Caribbean to               \n        Merchant Acquiring, intercompany software developments and                       \n        transaction-processing of $6.4 million from Latin America Payments and           \n        Solutions to both Payment Services - Puerto Rico & Caribbean and Business        \n        Solutions, and transaction-processing and monitoring fees of $3.5 million from   \n        Payment Services - Puerto Rico & Caribbean to Latin America Payments and         \n        Solutions.                                                                       \n\n                                                                                                                                                                                                                                        \n                  Six Months Ended June 30, 2026                                                                                                                                                                                        \n (In thousands)   Payment                               Latin America Payments and Solutions          Merchant                Business             Total Reportable Segments         Corporate and Other ((1))            Total         \n                  \n                                                                                   \n                       \n                                                                                                         \n                  \nServices -                                                                         \nAcquiring, net         \nSolutions                                                                                                \n                  \n                                                                                                                                                                                                                     \n                  \nPuerto Rico & Caribbean                                                                                                                                                                                              \n                                                                                                                                                                                                                                        \n Revenues         $                119,314              $                    241,203                  $         100,706       $       118,363      $              579,586            $          (56,843    )              $    522,743  \n Adjusted EBITDA  $                71,634               $                    72,456                   $         41,323        $       44,193       $              229,605            $          (23,224    )              $    206,381  \n\n (1)    Corporate and Other consists of corporate overhead, certain leveraged            \n        activities, other non-operating expenses and intersegment eliminations.          \n        Intersegment revenue eliminations predominantly reflect the $31.8 million        \n        processing fee from Payments Services - Puerto Rico & Caribbean to               \n        Merchant Acquiring, intercompany software developments and                       \n        transaction-processing of $16.2 million from Latin America Payments and          \n        Solutions to both Payment Services - Puerto Rico & Caribbean and Business        \n        Solutions, and transaction-processing and monitoring fees of $8.9 million from   \n        Payment Services - Puerto Rico & Caribbean to Latin America Payments and         \n        Solutions.                                                                       \n\n                                                                                                                                                                                                                                        \n                  Six months ended June 30, 2025                                                                                                                                                                                        \n (In thousands)   Payment                               Latin America Payments and Solutions          Merchant                Business             Total Reportable Segments         Corporate and Other ((1))            Total         \n                  \n                                                                                   \n                       \n                                                                                                         \n                  \nServices -                                                                         \nAcquiring, net         \nSolutions                                                                                                \n                  \n                                                                                                                                                                                                                     \n                  \nPuerto Rico & Caribbean                                                                                                                                                                                              \n                                                                                                                                                                                                                                        \n Revenues         $                111,578              $                    169,830                  $         94,941        $       130,083      $              506,432            $          (48,033    )              $    458,399  \n Adjusted EBITDA  $                64,466               $                    48,245                   $         40,361        $       48,243       $              201,315            $          (19,312    )              $    182,003  \n\n (1)    Corporate and Other consists of corporate overhead, certain leveraged            \n        activities, other non-operating expenses and intersegment eliminations.          \n        Intersegment revenue eliminations predominantly reflect the $29.2 million        \n        processing fee from Payments Services - Puerto Rico & Caribbean to               \n        Merchant Acquiring, intercompany software developments and                       \n        transaction-processing of $11.9 million from Latin America Payments and          \n        Solutions to both Payment Services - Puerto Rico & Caribbean and Business        \n        Solutions, and transaction-processing and monitoring fees of $7.0 million from   \n        Payment Services - Puerto Rico & Caribbean to Latin America Payments and         \n        Solutions.                                                                       \n\n                                                                                                                                                                                   \n EVERTEC, Inc.                                                                                                                                                                     \n Schedule 5: Reconciliation of GAAP to Non-GAAP Operating Results                                                                                                                  \n                                                                                                                                                                                   \n                                                                   Three Months Ended June 30,                               Six Months Ended June 30,                             \n (Dollar amounts in thousands, except share data)                        2026                          2025                        2026                          2025              \n Revenue                                                           $     274,820                 $     229,607               $     522,743                 $     458,399           \n Currency Adjustment - Constant ((1))                                    (9,075      )                 —                           (15,831     )                 —                 \n Constant Currency Revenue                                         $     265,745                 $     229,607               $     506,912                 $     458,399           \n                                                                                                                                                                                   \n Net income                                                        $     6,877                   $     40,973                $     31,624                  $     74,064            \n Income tax expense                                                      20,274                        4,070                       24,506                        8,206             \n Interest expense, net                                                   16,537                        13,640                      30,034                        27,377            \n Depreciation and amortization                                           39,991                        28,309                      77,254                        56,782            \n EBITDA                                                                  83,679                        86,992                      163,418                       166,429           \n Equity income ((2))                                                     7,768                         (867        )               6,322                         (2,944      )     \n Compensation and benefits ((3))                                         9,481                         7,974                       22,779                        19,594            \n Transaction, refinancing and other fees ((4))                           7,709                         (186        )               9,438                         (560        )     \n Loss on foreign currency remeasurement( (5))                            698                           (1,348      )               4,424                         (515        )     \n Adjusted EBITDA                                                         109,335                       92,565                      206,381                       182,004           \n Operating depreciation and amortization ((6))                           (19,991     )                 (16,904     )               (38,895     )                 (33,524     )     \n Cash interest expense, net ((7))                                        (14,881     )                 (13,031     )               (27,098     )                 (25,995     )     \n Income tax expense ((8))                                                (6,834      )                 (4,446      )               (13,998     )                 (7,643      )     \n Non-controlling interest ((9))                                          (2,874      )                 (519        )               (5,586      )                 (917        )     \n Adjusted Net Income                                               $     64,755                  $     57,665                $     120,804                 $     113,925           \n Net income per common share (GAAP):                                                                                                                                               \n Diluted                                                           $     0.09                    $     0.62                  $     0.47                    $     1.13              \n Adjusted earnings per common share (Non-GAAP):                                                                                                                                    \n Diluted                                                           $     1.05                    $     0.89                  $     1.95                    $     1.76              \n Shares used in computing adjusted earnings per common share:                                                                                                                      \n Diluted                                                                 61,446,374                    64,870,358                  62,030,514                    64,808,817        \n\n ____________________                                                                   \n 1)    Constant currency adjustment is calculated by applying prior-year monthly        \n       average foreign currency exchange rates to current-period results.               \n 2)    Represents the elimination of non-cash equity earnings from equity               \n       investments, net of dividends received and non-recurring impairment charges.     \n 3)    Primarily represents share-based compensation and severance payments.            \n 4)    Primarily represents fees and expenses associated with corporate transactions    \n       as defined in the Credit Agreement and other non-recurring expenses.             \n 5)    Represents non-cash unrealized losses and (gains) on foreign currency            \n       remeasurement for assets and liabilities denominated in non-functional           \n       currencies.                                                                      \n 6)    Represents operating depreciation and amortization expense, which excludes       \n       amounts generated as a result of merger and acquisition activity.                \n 7)    Represents interest expense, less interest income, as they appear on the         \n       unaudited condensed consolidated statements of income and comprehensive income   \n       (loss), adjusted to exclude non-cash amortization of the debt issue costs and    \n       premiums, and accretion of discount.                                             \n 8)    Represents income tax expense calculated on adjusted pre-tax income using the    \n       applicable GAAP tax rate, adjusted for certain discrete and non-recurring tax    \n       items.                                                                           \n 9)    Represents the non-controlling equity interests, net of amortization for         \n       intangibles created as part of the acquisition.                                  \n\n                                                                                                                                        \n EVERTEC, Inc.                                                                                                                          \n Schedule 6: Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings                                                           \n per Share                                                                                                                              \n                                                                                                                                        \n                                                                           Outlook 2026                                      2025       \n (Dollar amounts in millions, except per share data)                       Low                        High                              \n Revenues (GAAP)                                                           $   1,085          to      $   1,095          $   932        \n Currency adjustment - constant ((1))                                          (18    )                   (18    )                      \n Constant currency revenues (Non-GAAP)                                         1,067                      1,077                         \n                                                                                                                                        \n Earnings per Share (EPS) (GAAP)                                           $   1.61           to      $   1.73           $   2.20       \n Per share adjustment to reconcile GAAP EPS to Non-GAAP Adjusted EPS:                                                                   \n Share-based comp, non-cash equity earnings and other ((2))                    0.93                       0.93               0.70       \n Merger and acquisition related depreciation and amortization ((3))            1.40                       1.40               0.83       \n Non-cash interest expense ((4))                                               0.10                       0.10               0.04       \n Tax effect of non-gaap adjustments ((5))                                      (0.03  )                   (0.05  )           (0.10  )   \n Non-controlling interest ((6))                                                (0.07  )                   (0.07  )           (0.05  )   \n Total adjustments                                                             2.33                       2.31               1.42       \n Adjusted EPS (Non-GAAP)                                                   $   3.94           to      $   4.04           $   3.62       \n Currency adjustment - constant ((1))                                          (0.06  )                   (0.06  )                      \n Constant Currency Adjusted EPS (Non-GAAP)                                 $   3.88                   $   3.98                          \n Shares used in computing adjusted earnings per common share                   61.6                       61.6               64.4       \n\n ____________________                                                                    \n (1)    Constant currency adjustment is calculated by applying prior-year monthly        \n        average foreign currency exchange rates to current-period results.               \n (2)    Represents share-based compensation, the elimination of non-cash equity          \n        earnings from equity investments, severance and other adjustments to reconcile   \n        GAAP EPS to Non-GAAP EPS.                                                        \n (3)    Represents depreciation and amortization expenses generated as a result of       \n        M&A activity.                                                                    \n (4)    Represents non-cash amortization of the debt issue costs and premiums and        \n        accretion of discount.                                                           \n (5)    Represents income tax expense on non-GAAP adjustments using the applicable       \n        GAAP tax rate (anticipated at approximately 11% to 12%) and adjustments from     \n        certain discrete and non-recurring tax items.                                    \n (6)    Represents the non-controlling equity interests, net of amortization for         \n        intangibles created as part of the acquisition.                                  \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260804758148/en/\n(https://www.businesswire.com/news/home/20260804758148/en/)\n\nInvestor Contact \n\nLily Arteaga\n\n(787) 773-5442\n\nIR@evertecinc.com (mailto:IR@evertecinc.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBwKkWJBa","title":"EVERTEC Reports Second Quarter 2026 Results","author":"Business Wire","ticker":"EVTC","created":"2026-08-04T20:05:00.621Z","tickers":["EVTC"],"exchange":"NYSE","article_body":"EVERTEC Reports Second Quarter 2026 Results\n\nRaises Full-Year 2026 Outlook\n\nIncreases share repurchase authorization\n\nSigns strategic agreements with Transbank and Clip\n\nEVERTEC, Inc. (NYSE: EVTC) (“Evertec” or the “Company”) today\nannounced results for the second quarter ended June 30, 2026.\n\nSecond Quarter 2026 Highlights and Recent Highlights\n\n\n * Revenue increased 20% to $274.8 million, approximately 16% on a constant\ncurrency basis\n\n * GAAP Net Income attributable to common shareholders was $5.4 million, or $0.09\nper diluted share\n\n * Adjusted EBITDA increased 18% to $109.3 million and Adjusted earnings per\ncommon share increased 18% to $1.05\n\n * Returned $50.1 million to shareholders through share repurchases and dividends\n\n * Advanced EVERTEC's growth strategy in Latin America through agreements with\nTransbank in Chile and Clip in Mexico\n\n * Increased the share repurchase authorization to $150 million\n\n * Raised full-year 2026 Revenue and Adjusted earnings per common share outlook\n\nMac Schuessler, President and Chief Executive Officer stated “We delivered a\nstrong second quarter, reflecting organic growth across our business, the\ncontributions from our recent acquisitions, and the continued execution of our\nstrategy. Given our strong first-half performance and outlook for the\nremainder of the year, we are raising our full-year guidance and remain\nfocused on executing our strategy.”\n\nSecond Quarter 2026 Results\n\nRevenue. Total revenue for the quarter ended June 30, 2026 was $274.8 million,\nan increase of 20%, compared with $229.6 million in the prior year quarter\ndriven by organic growth across most of the Company's segments, contributions\nfrom the recent acquisitions completed in the current and prior year and\nfavorable foreign currency fluctuations. Constant currency revenue amounted to\n$265.7 million representing growth of 16%. Merchant acquiring revenue\nbenefited from higher sales volume, higher non-transactional revenues and an\nimprovement in spread. Payments Puerto Rico revenue benefited from higher POS\ntransactions and growth in ATH Movil, primarily in ATH Movil Business, as well\nas a non-recurring volume-based benefit recognized during the quarter. Latin\nAmerica revenue benefited from the contributions of recent acquisitions, and\ncontinued organic growth across the region. Revenue also benefited from\nforeign currency exchange rate fluctuations of $9.1 million, primarily in\nBrazil. Business Solutions revenue contracted mainly as a result of the 10%\ndiscount to Popular that came into effect in the fourth quarter of 2025.\n\nNet Income attributable to common shareholders. For the quarter ended June 30,\n2026, GAAP Net Income attributable to common shareholders was $5.4 million or\n$0.09 per diluted share, compared with $40.5 million or $0.62 per diluted\nshare in the prior year quarter. The decrease was driven in part by certain\nnon-recurring items, including impairment charges associated with the\nCompany's strategic decision to exit an equity method investment, as well as\ncosts related to cybersecurity incident response and remediation activities.\nThe quarter also reflected costs associated with recent acquisitions,\nincluding integration related costs, higher depreciation and amortization\nrelated to acquired intangible assets, and increased interest expense\nresulting from higher outstanding debt balances, following recent\nacquisitions. Income tax expense was also higher, primarily driven by discrete\ntax items, including taxes associated with a dividend distribution used to\npartially fund the Dimensa acquisition and a valuation allowance recorded\nagainst capital losses generated by the exit of the equity investment, as well\nas a greater proportion of taxable income generated in higher-tax foreign\njurisdictions. While these items impacted reported GAAP results, the Company\ncontinued to generate strong underlying operating performance, as reflected in\nits adjusted results and continued growth across its core businesses.\n\nAdjusted EBITDA and Adjusted EBITDA Margin. For the quarter ended June 30,\n2026, Adjusted EBITDA was $109.3 million, an increase of $16.8 million when\ncompared to the prior year quarter, driven by the increase in revenues.\nAdjusted EBITDA margin (Adjusted EBITDA as a percentage of total revenue) was\n39.8%, compared with 40.3% in the prior year. The modest decrease primarily\nreflects the higher contribution from the Latin America segment.\n\nAdjusted Net Income and Adjusted earnings per common share. For the quarter\nended June 30, 2026, Adjusted Net Income was $64.8 million, an increase of\n$7.1 million when compared with $57.7 million in the prior year quarter. The\nincrease is primarily driven by the higher Adjusted EBITDA, partially offset\nby a higher adjusted effective tax rate, primarily reflecting the higher\ncontribution from the Latin America segment, higher operating depreciation and\namortization expense, and the impact from non-controlling interest associated\nwith the Tecnobank acquisition completed in the fourth quarter of 2025.\nAdjusted earnings per common share was $1.05, an increase of 18% compared with\n$0.89 in the prior year quarter, driven by the Adjusted Net Income results and\na lower share count reflecting the impact of share repurchases completed\nduring the current and prior year.\n\nShare Repurchase\n\nDuring the three months ended June 30, 2026, the Company repurchased 1,907,437\nshares of its common stock at an average price of $24.68 per share for a total\nof $47.1 million.\n\nOn July 31, 2026, the Company's Board of Directors approved an increase to the\nshare repurchase authorization to an aggregate $150 million, while maintaining\nthe current expiration date of December 31, 2027. Prior to this authorization\nincrease, approximately $83.0 million remained available under the program.\nThe Company may repurchase shares in the open market, through accelerated\nshare repurchase programs, 10b5-1 plans, or in privately negotiated\ntransactions, subject to business opportunities and other factors.\n\n2026 Outlook\n\nThe Company's revised financial outlook for 2026 is as follows:\n\n\n * We now expect revenue between $1,085 million and $1,095 million representing\ngrowth of approximately 16.4% to 17.5%, an increase from our previous\nexpectation of 15.1% to 16.4%. Constant currency growth is now expected to be\nbetween 14.5% to 15.6%.\n\n * We now expect Adjusted earnings per common share to be between $3.94 to $4.04\nrepresenting growth of approximately 8.8% to 11.7%, an increase from our\nprevious expectation of 6.6% to 9.9%. On a constant currency basis, growth is\nexpected to be between 7.2% to 10.0%.\n\n * We continue to expect Adjusted EBITDA margin of 39% to 40%\n\n * We continue to expect capital expenditures to be approximately $90 million\n\n * We continue to expect an adjusted effective tax rate of approximately 11% to\n12%\n\nEarnings Conference Call and Audio Webcast\n\nThe Company will host a conference call to discuss its second quarter 2026\nfinancial results today at 4:30 p.m. ET. Hosting the call will be Mac\nSchuessler, President and Chief Executive Officer, and Karla Cruz-Jusino,\nChief Financial Officer. The conference call can be accessed live over the\nphone by dialing (800) 715-9871 or for international callers by dialing (646)\n307-1963. A replay will be available one hour after the end of the conference\ncall and can be accessed by dialing (855) 669-9658 or (412) 317-0088 for\ninternational callers; the pin number is 6110327. The replay will be available\nthrough Tuesday, August 11, 2026. The call will be webcast live from the\nCompany’s website at www.evertecinc.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.evertecinc.com&esheet=54583312&newsitemid=20260804758148&lan=en-US&anchor=www.evertecinc.com&index=1&md5=f7cf6bef01acdad3342ff3e56587c11d)\nunder the Investor Relations section or directly at http://ir.evertecinc.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fir.evertecinc.com&esheet=54583312&newsitemid=20260804758148&lan=en-US&anchor=http%3A%2F%2Fir.evertecinc.com&index=2&md5=35b41d8554684078018165024efe23bc)\n. A supplemental slide presentation that accompanies this call and webcast can\nbe found on the investor relations website at ir.evertecinc.com and will\nremain available after the call.\n\nAbout Evertec\n\nEVERTEC, Inc. (NYSE: EVTC) is a leading full-service transaction processor and\nfinancial technology provider in Latin America, Puerto Rico and the Caribbean,\nproviding a broad range of merchant acquiring, payment services and business\nprocess management services. Evertec owns and operates the ATH® network, one\nof the leading personal identification number (“PIN”) debit networks in\nLatin America. In addition, the Company manages a system of electronic payment\nnetworks and offers a comprehensive suite of services for core banking, cash\nprocessing and fulfillment in Puerto Rico, that process over ten billion\ntransactions annually. The Company also offers financial technology\noutsourcing in all the regions it serves. Based in Puerto Rico, the Company\noperates in 26 Latin American countries and serves a diversified customer base\nof leading financial institutions, merchants, corporations and government\nagencies with “mission-critical” technology solutions. For more\ninformation, visit www.evertecinc.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.evertecinc.com&esheet=54583312&newsitemid=20260804758148&lan=en-US&anchor=www.evertecinc.com&index=3&md5=f6de1ec9d07ec8c44546de8c2085503a)\n.\n\nUse of Non-GAAP Financial Information\n\nThe non-GAAP measures referenced in this earnings release are supplemental\nmeasures of the Company’s performance and are not required by, or presented\nin accordance with, accounting principles generally accepted in the United\nStates of America (“GAAP”). They are not measurements of the Company’s\nfinancial performance under GAAP and should not be considered as alternatives\nto total revenue, net income or any other performance measures derived in\naccordance with GAAP or as alternatives to cash flows from operating\nactivities, as indicators of operating performance or as measures of the\nCompany’s liquidity. In addition to GAAP measures, management uses these\nnon-GAAP measures to focus on the factors the Company believes are pertinent\nto the daily management of the Company’s operations and believes that they\nare also frequently used by analysts, investors and other stakeholders to\nevaluate companies in our industry. These measures have certain limitations in\nthat they do not include the impact of certain expenses that are reflected in\nour condensed consolidated statements of operations that are necessary to run\nour business. Other companies, including other companies in our industry, may\nnot use these measures or may calculate these measures differently than as\npresented herein, limiting their usefulness as comparative measures.\n\nReconciliations of the non-GAAP measures to the most directly comparable GAAP\nmeasure are included at the end of this earnings release. These non-GAAP\nmeasures include Constant currency revenue, EBITDA, Adjusted EBITDA, Adjusted\nNet Income, Adjusted Earnings per common share, and Constant Currency Adjusted\nEarnings per common share, each as defined below.\n\nConstant currency revenue represents reported revenue excluding the impact of\nfluctuations in foreign currency exchange rates in the current period.\nConstant currency revenue is calculated by applying prior-year period foreign\ncurrency exchange rates to current-period revenue.\n\nEBITDA is defined as earnings before interest, taxes, depreciation and\namortization.\n\nAdjusted EBITDA is defined as EBITDA further adjusted to exclude certain\nnon-cash items and unusual expenses such as: share-based compensation,\nrestructuring related expenses, fees and expenses from corporate transactions\nsuch as M&A activity and financing, multi-year non-recurring gains\nrecognized in connection with the sale of tax credits, equity investment\nincome net of dividends received, and the impact from unrealized gains and\nlosses on foreign currency remeasurement for assets and liabilities in\nnon-functional currency. Segment Adjusted EBITDA which is the measure reported\nto the chief operating decision maker for purposes of making decisions about\nallocating resources to the segments and assessing their performance, is\npresented in conformity with Accounting Standards Codification 280, Segment\nReporting, and for this reason is excluded from the definition of non-GAAP\nfinancial measures under the Securities and Exchange Commission's Regulation G\nand Item 10(e) of Regulation S-K. The Company’s presentation of Adjusted\nEBITDA is substantially consistent with the equivalent measurements that are\ncontained in the secured credit facilities in testing EVERTEC Group’s\ncompliance with covenants therein such as the secured leverage ratio. Adjusted\nEBITDA Margin is defined as Adjusted EBITDA as a percentage of total revenues.\n\nAdjusted Net Income is defined as Adjusted EBITDA less: operating depreciation\nand amortization expense, defined as GAAP Depreciation and amortization less\namortization of intangibles related to acquisitions such as customer\nrelationships, trademarks, non-compete agreements, among others; cash interest\nexpense defined as GAAP interest expense, less GAAP interest income adjusted\nto exclude non-cash amortization of debt issue costs and premiums and\naccretion of discount; income tax expense which is calculated on adjusted\npre-tax income using the applicable GAAP tax rate, adjusted for uncertain tax\nposition releases, tax true-ups, windfall from share-based compensation,\nunrealized gains and losses from foreign currency remeasurement, among others;\nand non-controlling interests, net of amortization for intangibles created as\npart of the purchase.\n\nAdjusted Earnings per common share is defined as Adjusted Net Income divided\nby diluted shares outstanding.\n\nConstant Currency Adjusted Earnings per common share is defined as Adjusted\nearnings per common share excluding the impact of fluctuations in foreign\ncurrency exchange rates in the current period, calculated by applying\nprior-year period foreign currency exchange rates to current-period results.\n\nThe Company uses Adjusted Net Income to measure the Company's overall\nprofitability because the Company believes it better reflects the comparable\noperating performance by excluding the impact of the non-cash amortization and\ndepreciation that was created as a result of merger and acquisition activity.\nIn addition, in evaluating EBITDA, Adjusted EBITDA, Adjusted Net Income and\nAdjusted Earnings per common share, you should be aware that in the future the\nCompany may incur expenses such as those excluded in calculating them.\n\nForward-Looking Statements\n\nCertain statements in this earnings release constitute “forward-looking\nstatements” within the meaning of, and subject to the protection of, the\nPrivate Securities Litigation Reform Act of 1995. We intend such\nforward-looking statements to be covered by the safe harbor provisions for\nforward-looking statements contained in Section 27A of the Securities Act of\n1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as\namended. All statements contained in this press release other than statements\nof historical facts, including, without limitation, statements regarding our\nfuture results of operations and financial position, including our guidance\nfor fiscal year 2026; our business strategies; objectives of management for\nfuture operations, including, among others, statements regarding our expected\ngrowth, international expansion and future capital expenditures; and\nexpectations for and anticipated benefits of acquisitions, are forward looking\nstatements. Words such as “believes,” “expects,” “anticipates,”\n“intends,” “projects,” “estimates,” and “plans” and similar\nexpressions of future or conditional verbs such as “will,” “should,”\n“would,” “may,” and “could” are generally forward-looking in\nnature and not historical facts.\n\nVarious factors that could cause actual future results and other future events\nto differ materially from those estimated by management include, but are not\nlimited to: our reliance on our relationship with Popular, Inc.\n(“Popular”) for a significant portion of our revenues pursuant to our\nsecond Amended and Restated Master Services Agreement (“A&R MSA”) with\nthem, and as it may impact our ability to grow our business; our ability to\nrenew our client contracts on terms favorable to us, including but not limited\nto the current term and any extension of the A&R MSA with Popular and\nAmended and Restated Independent Sales Organization Sponsorship and Services\nAgreement (the “A&R ISO Agreement”) with Banco Popular; our reliance\non our information technology systems, employees and certain suppliers and\ncounterparties, and certain failures or disruptions in those systems or chains\ncould materially adversely affect our operations; the risk of security\nbreaches or other confidential data theft from our systems; our ability to\nrecruit, retain and develop qualified personnel; fraud by merchants or others;\nthe credit risk of our merchant clients, for which we may also be liable; our\nuse of artificial intelligence (“AI”) and machine learning tools and the\nevolving regulatory framework governing such technology; a decreased client\nbase due to consolidations and/or failures in the financial services industry;\nour ability to comply with existing and future rules and regulations in the\njurisdictions in which we operate; a reduction in consumer confidence, whether\nas a result of a global economic downturn or otherwise, which leads to a\ndecrease in consumer spending; our dependence on payment card network or other\nnetwork rules, standards, mandates or fees; the geographical concentration of\nour business in Puerto Rico, including our business with the government of\nPuerto Rico and its instrumentalities, which are facing fiscal challenges and\nthe effects of potential natural disasters; risks associated with our presence\nin international markets, including global political, social and economic\ninstability; operating an international business in Latin America, Puerto Rico\nand the Caribbean, in jurisdictions with potential political and economic\ninstability; the impact of exposure to foreign exchange fluctuations and\ncapital controls on our costs, earnings and the value of some of our assets;\nour ability to protect our intellectual property rights against infringement\nand to defend ourselves against potential intellectual property infringement\nclaims and the potential impact on our business of such claims, whether or not\ncorrect; the possibility that we could lose our preferential tax rate in\nPuerto Rico; the effect of purchases of our common stock pursuant to our stock\nrepurchase plan on the value of our common stock; and the impact of our\nleverage on our ability to raise additional capital, that our leverage may\nlimit our ability to react to changes in the economy or our industry, expose\nus to interest rate risk and prevent us from meeting our obligations with\nrespect to our substantial indebtedness, that we and our subsidiaries may be\nable to incur significant additional indebtedness, which could further\nincrease such risks; and the other factors set forth under “Part 1, Item 1A.\nRisk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal\nyear ended December 31, 2025 filed with the Securities and Exchange Commission\n(the “SEC”) on March 2, 2026. The Company undertakes no obligation to\nrelease publicly any revisions to any forward-looking statements, to report\nevents or to report the occurrence of unanticipated events unless it is\nrequired to do so by law.\n                                                                                                                                                                                                    \n EVERTEC, Inc.                                                                                                                                                                                      \n Schedule 1: Unaudited Condensed Consolidated Statements of Income and                                                                                                                              \n Comprehensive Income (Loss)                                                                                                                                                                        \n                                                                                                                                                                                                    \n Revenues                                                                           Three Months Ended June 30,                               Six Months Ended June 30,                             \n Revenues                                                                                 2026                          2025                        2026                          2025              \n Revenues                                                                           $     274,820                 $     229,607               $     522,743                 $     458,399           \n                                                                                                                                                                                                    \n Operating costs and expenses                                                                                                                                                                       \n Cost of revenues, exclusive of depreciation and amortization                             124,241                       110,060                     242,486                       224,669           \n Selling, general and administrative expenses                                             57,310                        35,104                      105,156                       71,314            \n Depreciation and amortization                                                            39,991                        28,309                      77,254                        56,782            \n Total operating costs and expenses                                                       221,542                       173,473                     424,896                       352,765           \n Income from operations                                                                   53,278                        56,134                      97,847                        105,634           \n Non-operating income (expenses)                                                                                                                                                                    \n Interest income                                                                          3,727                         3,079                       7,587                         6,330             \n Interest expense                                                                         (20,264     )                 (16,719     )               (37,621     )                 (33,707     )     \n (Loss) gain on foreign currency remeasurement                                            (698        )                 1,348                       (4,424      )                 515               \n (Losses) earnings from equity investees                                                  (7,768      )                 867                         (6,322      )                 2,944             \n Other (loss) income, net                                                                 (1,124      )                 334                         (937        )                 554               \n Total non-operating expenses                                                             (26,127     )                 (11,091     )               (41,717     )                 (23,364     )     \n Income before income taxes                                                               27,151                        45,043                      56,130                        82,270            \n Income tax expense                                                                       20,274                        4,070                       24,506                        8,206             \n Net income                                                                               6,877                         40,973                      31,624                        74,064            \n Less: Net income attributable to non-controlling interest                                1,472                         508                         2,468                         896               \n Net income attributable to EVERTEC, Inc.’s common stockholders                           5,405                         40,465                      29,156                        73,168            \n Other comprehensive income, net of tax                                                                                                                                                             \n Foreign currency translation adjustments                                                 9,257                         32,495                      58,831                        79,206            \n Gain (loss) on cash flow hedges                                                          1,990                         (2,160      )               4,739                         (6,152      )     \n Unrealized gain on change in fair value of debt securities available-for-sale            21                            2                           17                            10                \n Other comprehensive income, net of tax                                             $     11,268                  $     30,337                $     63,587                  $     73,064            \n Total comprehensive income attributable to EVERTEC, Inc.’s common                  $     16,673                  $     70,802                $     92,743                  $     146,232           \n stockholders                                                                                                                                                                                       \n Net income per common share:                                                                                                                                                                       \n Basic                                                                              $     0.09                    $     0.63                  $     0.48                    $     1.15              \n Diluted                                                                            $     0.09                    $     0.62                  $     0.47                    $     1.13              \n Shares used in computing net income per common share:                                                                                                                                              \n Basic                                                                                    60,916,714                    64,030,322                  61,353,699                    63,884,710        \n Diluted                                                                                  61,446,374                    64,870,358                  62,030,514                    64,808,817        \n\n                                                                                                                                         \n EVERTEC, Inc.                                                                                                                           \n Schedule 2: Unaudited Condensed Consolidated Balance Sheets                                                                             \n                                                                                                                                         \n (Dollar amounts in thousands, except share data)                                June 30, 2026                December 31, 2025          \n Assets                                                                                                                                  \n Current Assets:                                                                                                                         \n Cash and cash equivalents                                                       $      260,659               $       305,993            \n Restricted cash                                                                        29,737                        25,838             \n Accounts receivable, net                                                               182,619                       164,381            \n Settlement assets                                                                      28,072                        26,098             \n Prepaid expenses and other assets                                                      85,056                        68,462             \n Total current assets                                                                   586,143                       590,772            \n Debt securities available-for-sale, at fair value                                      4,236                         3,202              \n Equity securities, at fair value                                                       6,144                         5,849              \n Investments in equity investees                                                        18,452                        30,120             \n Property and equipment, net                                                            66,297                        64,354             \n Operating lease right-of-use asset                                                     36,584                        38,218             \n Goodwill                                                                               1,070,494                     891,992            \n Other intangible assets, net                                                           610,782                       553,082            \n Deferred tax asset                                                                     47,427                        45,386             \n Derivative asset                                                                       1,990                         —                  \n Other long-term assets                                                                 31,069                        20,321             \n Total assets                                                                    $      2,479,618             $       2,243,296          \n Liabilities and stockholders’ equity                                                                                                    \n Current Liabilities:                                                                                                                    \n Accrued liabilities                                                             $      143,021               $       125,575            \n Accounts payable                                                                       58,094                        63,726             \n Contract liability                                                                     32,770                        26,573             \n Income tax payable                                                                     11,446                        3,218              \n Current portion of long-term debt                                                      29,834                        23,867             \n Short-term borrowings                                                                  35,000                        10,000             \n Current portion of operating lease liability                                           5,791                         5,878              \n Settlement liabilities                                                                 28,343                        26,202             \n Total current liabilities                                                              344,299                       285,039            \n Long-term debt                                                                         1,221,871                     1,053,030          \n Deferred tax liability                                                                 79,884                        71,356             \n Contract liability - long term                                                         35,016                        47,032             \n Operating lease liability - long-term                                                  31,822                        33,305             \n Derivative liability                                                                   843                           5,225              \n Other long-term liabilities                                                            46,804                        34,317             \n Total liabilities                                                                      1,760,539                     1,529,304          \n Redeemable non-controlling interests                                                   74,171                        89,155             \n Stockholders’ equity                                                                                                                    \n Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued             —                             —                  \n Common stock, par value $0.01; 206,000,000 shares authorized; 59,752,542               597                           618                \n shares issued and outstanding as of June 30, 2026 (December 31, 2025 -                                                                  \n 61,756,639)                                                                                                                             \n Additional paid-in capital                                                             —                             —                  \n Accumulated earnings                                                                   643,969                       687,696            \n Accumulated other comprehensive loss, net of tax                                       (3,121     )                  (66,708    )       \n Total EVERTEC, Inc. stockholders’ equity                                               641,445                       621,606            \n Non-controlling interest                                                               3,463                         3,231              \n Total equity                                                                           644,908                       624,837            \n Total liabilities and equity                                                    $      2,479,618             $       2,243,296          \n\n                                                                                                                                      \n EVERTEC, Inc.                                                                                                                        \n Schedule 3: Unaudited Condensed Consolidated Statements of Cash Flows                                                                \n                                                                                                                                      \n                                                                                     Six Months Ended June 30,                        \n (In thousands)                                                                            2026                        2025           \n Cash flows from operating activities                                                                                                 \n Net income                                                                          $     31,624                $     74,064         \n Adjustments to reconcile net income to net cash provided by operating                                                                \n activities:                                                                                                                          \n Depreciation and amortization                                                             77,254                      56,782         \n Amortization of debt issue costs and accretion of discount                                2,559                       2,246          \n Operating lease amortization                                                              2,957                       3,522          \n Deferred tax benefit                                                                      (10,508   )                 (10,726  )     \n Share-based compensation                                                                  15,736                      14,548         \n Loss on impairment of investment in equity investee                                       8,910                       —              \n Earnings of equity investees                                                              (2,588    )                 (2,944   )     \n Loss (gain) on foreign currency remeasurement                                             4,424                       (515     )     \n Other, net                                                                                3,010                       (1,398   )     \n (Increase) decrease in assets:                                                                                                       \n Accounts receivable, net                                                                  (18,696   )                 (15,616  )     \n Prepaid expenses and other assets                                                         (2,562    )                 (4,574   )     \n Other long-term assets                                                                    (2,872    )                 2,783          \n (Decrease) increase in liabilities:                                                                                                  \n Accrued liabilities and accounts payable                                                  2,805                       (22,304  )     \n Income tax payable                                                                        (9,905    )                 (3,531   )     \n Contract liability                                                                        (4,446    )                 (6,862   )     \n Operating lease liabilities                                                               (4,384    )                 (3,788   )     \n Other long-term liabilities                                                               (2,627    )                 4,441          \n Total adjustments                                                                         59,067                      12,064         \n Net cash provided by operating activities                                                 90,691                      86,128         \n Cash flows from investing activities                                                                                                 \n Additions to software and other intangible assets                                         (36,580   )                 (30,902  )     \n Property and equipment acquired                                                           (11,256   )                 (11,404  )     \n Acquisition of available-for-sale debt securities                                         (928      )                 (561     )     \n Payments for non-compete agreements                                                       (431      )                 (662     )     \n Proceeds from maturities of available-for-sale debt securities                            —                           1,000          \n Acquisitions, net of cash acquired                                                        (179,757  )                 —              \n Other investing activities, net                                                           3                           (151     )     \n Net cash used in investing activities                                                     (228,949  )                 (42,680  )     \n Cash flows from financing activities                                                                                                 \n Debt issuance costs                                                                       (1,276    )                 —              \n Acquisition of redeemable non-controlling interests                                       (23,098   )                 (5,167   )     \n Withholding taxes paid on share-based compensation                                        (7,385    )                 (8,918   )     \n Proceeds from issuance of long term debt                                                  184,538                     —              \n Net increase in Revolving Facility                                                        25,000                      —              \n Dividends paid to noncontrolling interest holders                                         (5,989    )                 (1,249   )     \n Dividends paid                                                                            (6,119    )                 (6,383   )     \n Repurchase of common stock                                                                (67,049   )                 (3,691   )     \n Repayment of long-term debt                                                               (11,933   )                 (11,933  )     \n Settlement activity, net                                                                  (2,498    )                 2,209          \n Other financing activities, net                                                           (6,429    )                 (5,193   )     \n Net cash provided by (used in) financing activities                                       77,762                      (40,325  )     \n Effect of foreign exchange rate on cash, cash equivalents and restricted cash             16,563                      15,205         \n Net (decrease) increase in cash, cash equivalents, restricted cash and cash               (43,933   )                 18,328         \n included in settlement assets                                                                                                        \n Cash, cash equivalents, restricted cash and cash included in settlement assets            348,129                     314,649        \n at the beginning of the period                                                                                                       \n Cash, cash equivalents, restricted cash, and cash included in settlement            $     304,196               $     332,977        \n assets at end of the period                                                                                                          \n Cash and cash equivalents                                                                 260,659                     290,578        \n Restricted cash                                                                           29,737                      23,780         \n Cash and cash equivalents included in settlement assets                                   13,800                      18,619         \n Cash, cash equivalents, restricted cash and cash included in settlement assets      $     304,196               $     332,977        \n\n                                                                                                                                                                                                                                       \n EVERTEC, Inc.                                                                                                                                                                                                                         \n Schedule 4: Unaudited Segment Information                                                                                                                                                                                             \n                                                                                                                                                                                                                                       \n                  Three Months Ended June 30, 2026                                                                                                                                                                                     \n (In thousands)   Payment                               Latin America Payments and Solutions          Merchant                Business            Total Reportable Segments         Corporate and Other ((1))            Total         \n                  \n                                                                                   \n                       \n                                                                                                        \n                  \nServices -                                                                         \nAcquiring, net         \nSolutions                                                                                               \n                  \n                                                                                                                                                                                                                    \n                  \nPuerto Rico & Caribbean                                                                                                                                                                                             \n                                                                                                                                                                                                                                       \n Revenues         $                60,869               $                    130,873                  $         52,301        $       58,825      $              302,868            $          (28,048    )              $    274,820  \n Adjusted EBITDA  $                36,894               $                    39,656                   $         21,805        $       22,556      $              120,911            $          (11,576    )              $    109,335  \n\n (1)    Corporate and Other consists of corporate overhead, certain leveraged            \n        activities, other non-operating expenses and intersegment eliminations.          \n        Intersegment revenue eliminations predominantly reflect the $16.1 million        \n        processing fee from Payments Services - Puerto Rico & Caribbean to               \n        Merchant Acquiring, intercompany software developments and                       \n        transaction-processing of $7.9 million from Latin America Payments and           \n        Solutions to both Payment Services- Puerto Rico & Caribbean and Business         \n        Solutions, and transaction-processing and monitoring fees of $4.0 million from   \n        Payment Services - Puerto Rico & Caribbean to Latin America Payments and         \n        Solutions.                                                                       \n\n                                                                                                                                                                                                                                       \n                  Three Months Ended June 30, 2025                                                                                                                                                                                     \n (In thousands)   Payment                               Latin America Payments and Solutions          Merchant                Business            Total Reportable Segments         Corporate and Other ((1))            Total         \n                  \n                                                                                   \n                       \n                                                                                                        \n                  \nServices -                                                                         \nAcquiring, net         \nSolutions                                                                                               \n                  \n                                                                                                                                                                                                                    \n                  \nPuerto Rico & Caribbean                                                                                                                                                                                             \n                                                                                                                                                                                                                                       \n Revenues         $                56,421               $                    86,055                   $         47,292        $       64,519      $              254,287            $          (24,680    )              $    229,607  \n Adjusted EBITDA  $                33,028               $                    23,350                   $         20,002        $       26,032      $              102,412            $          (9,847     )              $    92,565   \n\n (1)    Corporate and Other consists of corporate overhead, certain leveraged            \n        activities, other non-operating expenses and intersegment eliminations.          \n        Intersegment revenue eliminations predominantly reflect the $14.8 million        \n        processing fee from Payments Services - Puerto Rico & Caribbean to               \n        Merchant Acquiring, intercompany software developments and                       \n        transaction-processing of $6.4 million from Latin America Payments and           \n        Solutions to both Payment Services - Puerto Rico & Caribbean and Business        \n        Solutions, and transaction-processing and monitoring fees of $3.5 million from   \n        Payment Services - Puerto Rico & Caribbean to Latin America Payments and         \n        Solutions.                                                                       \n\n                                                                                                                                                                                                                                        \n                  Six Months Ended June 30, 2026                                                                                                                                                                                        \n (In thousands)   Payment                               Latin America Payments and Solutions          Merchant                Business             Total Reportable Segments         Corporate and Other ((1))            Total         \n                  \n                                                                                   \n                       \n                                                                                                         \n                  \nServices -                                                                         \nAcquiring, net         \nSolutions                                                                                                \n                  \n                                                                                                                                                                                                                     \n                  \nPuerto Rico & Caribbean                                                                                                                                                                                              \n                                                                                                                                                                                                                                        \n Revenues         $                119,314              $                    241,203                  $         100,706       $       118,363      $              579,586            $          (56,843    )              $    522,743  \n Adjusted EBITDA  $                71,634               $                    72,456                   $         41,323        $       44,193       $              229,605            $          (23,224    )              $    206,381  \n\n (1)    Corporate and Other consists of corporate overhead, certain leveraged            \n        activities, other non-operating expenses and intersegment eliminations.          \n        Intersegment revenue eliminations predominantly reflect the $31.8 million        \n        processing fee from Payments Services - Puerto Rico & Caribbean to               \n        Merchant Acquiring, intercompany software developments and                       \n        transaction-processing of $16.2 million from Latin America Payments and          \n        Solutions to both Payment Services - Puerto Rico & Caribbean and Business        \n        Solutions, and transaction-processing and monitoring fees of $8.9 million from   \n        Payment Services - Puerto Rico & Caribbean to Latin America Payments and         \n        Solutions.                                                                       \n\n                                                                                                                                                                                                                                        \n                  Six months ended June 30, 2025                                                                                                                                                                                        \n (In thousands)   Payment                               Latin America Payments and Solutions          Merchant                Business             Total Reportable Segments         Corporate and Other ((1))            Total         \n                  \n                                                                                   \n                       \n                                                                                                         \n                  \nServices -                                                                         \nAcquiring, net         \nSolutions                                                                                                \n                  \n                                                                                                                                                                                                                     \n                  \nPuerto Rico & Caribbean                                                                                                                                                                                              \n                                                                                                                                                                                                                                        \n Revenues         $                111,578              $                    169,830                  $         94,941        $       130,083      $              506,432            $          (48,033    )              $    458,399  \n Adjusted EBITDA  $                64,466               $                    48,245                   $         40,361        $       48,243       $              201,315            $          (19,312    )              $    182,003  \n\n (1)    Corporate and Other consists of corporate overhead, certain leveraged            \n        activities, other non-operating expenses and intersegment eliminations.          \n        Intersegment revenue eliminations predominantly reflect the $29.2 million        \n        processing fee from Payments Services - Puerto Rico & Caribbean to               \n        Merchant Acquiring, intercompany software developments and                       \n        transaction-processing of $11.9 million from Latin America Payments and          \n        Solutions to both Payment Services - Puerto Rico & Caribbean and Business        \n        Solutions, and transaction-processing and monitoring fees of $7.0 million from   \n        Payment Services - Puerto Rico & Caribbean to Latin America Payments and         \n        Solutions.                                                                       \n\n                                                                                                                                                                                   \n EVERTEC, Inc.                                                                                                                                                                     \n Schedule 5: Reconciliation of GAAP to Non-GAAP Operating Results                                                                                                                  \n                                                                                                                                                                                   \n                                                                   Three Months Ended June 30,                               Six Months Ended June 30,                             \n (Dollar amounts in thousands, except share data)                        2026                          2025                        2026                          2025              \n Revenue                                                           $     274,820                 $     229,607               $     522,743                 $     458,399           \n Currency Adjustment - Constant ((1))                                    (9,075      )                 —                           (15,831     )                 —                 \n Constant Currency Revenue                                         $     265,745                 $     229,607               $     506,912                 $     458,399           \n                                                                                                                                                                                   \n Net income                                                        $     6,877                   $     40,973                $     31,624                  $     74,064            \n Income tax expense                                                      20,274                        4,070                       24,506                        8,206             \n Interest expense, net                                                   16,537                        13,640                      30,034                        27,377            \n Depreciation and amortization                                           39,991                        28,309                      77,254                        56,782            \n EBITDA                                                                  83,679                        86,992                      163,418                       166,429           \n Equity income ((2))                                                     7,768                         (867        )               6,322                         (2,944      )     \n Compensation and benefits ((3))                                         9,481                         7,974                       22,779                        19,594            \n Transaction, refinancing and other fees ((4))                           7,709                         (186        )               9,438                         (560        )     \n Loss on foreign currency remeasurement( (5))                            698                           (1,348      )               4,424                         (515        )     \n Adjusted EBITDA                                                         109,335                       92,565                      206,381                       182,004           \n Operating depreciation and amortization ((6))                           (19,991     )                 (16,904     )               (38,895     )                 (33,524     )     \n Cash interest expense, net ((7))                                        (14,881     )                 (13,031     )               (27,098     )                 (25,995     )     \n Income tax expense ((8))                                                (6,834      )                 (4,446      )               (13,998     )                 (7,643      )     \n Non-controlling interest ((9))                                          (2,874      )                 (519        )               (5,586      )                 (917        )     \n Adjusted Net Income                                               $     64,755                  $     57,665                $     120,804                 $     113,925           \n Net income per common share (GAAP):                                                                                                                                               \n Diluted                                                           $     0.09                    $     0.62                  $     0.47                    $     1.13              \n Adjusted earnings per common share (Non-GAAP):                                                                                                                                    \n Diluted                                                           $     1.05                    $     0.89                  $     1.95                    $     1.76              \n Shares used in computing adjusted earnings per common share:                                                                                                                      \n Diluted                                                                 61,446,374                    64,870,358                  62,030,514                    64,808,817        \n\n ____________________                                                                   \n 1)    Constant currency adjustment is calculated by applying prior-year monthly        \n       average foreign currency exchange rates to current-period results.               \n 2)    Represents the elimination of non-cash equity earnings from equity               \n       investments, net of dividends received and non-recurring impairment charges.     \n 3)    Primarily represents share-based compensation and severance payments.            \n 4)    Primarily represents fees and expenses associated with corporate transactions    \n       as defined in the Credit Agreement and other non-recurring expenses.             \n 5)    Represents non-cash unrealized losses and (gains) on foreign currency            \n       remeasurement for assets and liabilities denominated in non-functional           \n       currencies.                                                                      \n 6)    Represents operating depreciation and amortization expense, which excludes       \n       amounts generated as a result of merger and acquisition activity.                \n 7)    Represents interest expense, less interest income, as they appear on the         \n       unaudited condensed consolidated statements of income and comprehensive income   \n       (loss), adjusted to exclude non-cash amortization of the debt issue costs and    \n       premiums, and accretion of discount.                                             \n 8)    Represents income tax expense calculated on adjusted pre-tax income using the    \n       applicable GAAP tax rate, adjusted for certain discrete and non-recurring tax    \n       items.                                                                           \n 9)    Represents the non-controlling equity interests, net of amortization for         \n       intangibles created as part of the acquisition.                                  \n\n                                                                                                                                        \n EVERTEC, Inc.                                                                                                                          \n Schedule 6: Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings                                                           \n per Share                                                                                                                              \n                                                                                                                                        \n                                                                           Outlook 2026                                      2025       \n (Dollar amounts in millions, except per share data)                       Low                        High                              \n Revenues (GAAP)                                                           $   1,085          to      $   1,095          $   932        \n Currency adjustment - constant ((1))                                          (18    )                   (18    )                      \n Constant currency revenues (Non-GAAP)                                         1,067                      1,077                         \n                                                                                                                                        \n Earnings per Share (EPS) (GAAP)                                           $   1.61           to      $   1.73           $   2.20       \n Per share adjustment to reconcile GAAP EPS to Non-GAAP Adjusted EPS:                                                                   \n Share-based comp, non-cash equity earnings and other ((2))                    0.93                       0.93               0.70       \n Merger and acquisition related depreciation and amortization ((3))            1.40                       1.40               0.83       \n Non-cash interest expense ((4))                                               0.10                       0.10               0.04       \n Tax effect of non-gaap adjustments ((5))                                      (0.03  )                   (0.05  )           (0.10  )   \n Non-controlling interest ((6))                                                (0.07  )                   (0.07  )           (0.05  )   \n Total adjustments                                                             2.33                       2.31               1.42       \n Adjusted EPS (Non-GAAP)                                                   $   3.94           to      $   4.04           $   3.62       \n Currency adjustment - constant ((1))                                          (0.06  )                   (0.06  )                      \n Constant Currency Adjusted EPS (Non-GAAP)                                 $   3.88                   $   3.98                          \n Shares used in computing adjusted earnings per common share                   61.6                       61.6               64.4       \n\n ____________________                                                                    \n (1)    Constant currency adjustment is calculated by applying prior-year monthly        \n        average foreign currency exchange rates to current-period results.               \n (2)    Represents share-based compensation, the elimination of non-cash equity          \n        earnings from equity investments, severance and other adjustments to reconcile   \n        GAAP EPS to Non-GAAP EPS.                                                        \n (3)    Represents depreciation and amortization expenses generated as a result of       \n        M&A activity.                                                                    \n (4)    Represents non-cash amortization of the debt issue costs and premiums and        \n        accretion of discount.                                                           \n (5)    Represents income tax expense on non-GAAP adjustments using the applicable       \n        GAAP tax rate (anticipated at approximately 11% to 12%) and adjustments from     \n        certain discrete and non-recurring tax items.                                    \n (6)    Represents the non-controlling equity interests, net of amortization for         \n        intangibles created as part of the acquisition.                                  \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260804758148/en/\n(https://www.businesswire.com/news/home/20260804758148/en/)\n\nInvestor Contact \n\nLily Arteaga\n\n(787) 773-5442\n\nIR@evertecinc.com (mailto:IR@evertecinc.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-08-04T20:05:01.312535996Z","server_sent_at_ms":1785873901312},"received_at":"2026-08-04T20:05:01.377Z","source_url":"https://www.businesswire.com/news/home/20260804758148/en/"},"analysis":{"id":"97537","press_release_id":"108531","analysis_json":{"industry":{"label":"Transaction & Payment Processing Services","sector":"Financials"},"redFlags":["GAAP Net Income dropped to $5.4 million from $40.5 million in the prior year due to impairment charges and cybersecurity incident costs","Higher income tax expense driven by discrete items and a greater proportion of income in higher-tax foreign jurisdictions"],"eventType":"earnings","narrative":"EVERTEC reported second quarter revenue of $274.8 million, up 20% year-over-year, while Adjusted EBITDA increased 18% to $109.3 million driven by organic growth and recent acquisitions.\n\nManagement raised its full-year 2026 outlook, projecting revenue growth of 16.4% to 17.5% and Adjusted EPS of $3.94 to $4.04, up from previous expectations.\n\nThe board increased the share repurchase authorization to $150 million, and the company signed strategic agreements with Transbank in Chile and Clip in Mexico to expand its Latin American footprint.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Beat-and-raise quarter with 20% revenue growth and a new $150M buyback authorization overshadow GAAP noise."},"keyFigures":{"eps":0.09,"revenue":274800000,"guidance":"FY26 Revenue $1,085M-$1,095M; Adj EPS $3.94-$4.04","revenueYoy":"20%","customDimensions":{"adjusted_eps":1.05,"adjusted_ebitda":109300000,"buyback_q2_spend":47100000,"returned_capital":50100000,"buyback_authorization":150000000}},"quotedText":"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.","namedEntities":{"people":[{"name":"Mac Schuessler","role":"President and Chief Executive Officer"},{"name":"Karla Cruz-Jusino","role":"Chief Financial Officer"}],"products":["ATH network","ATH Movil"],"companies":[{"name":"EVERTEC, Inc.","ticker":"EVTC"},{"name":"Transbank","relationship":"partner"},{"name":"Clip","relationship":"partner"},{"name":"Popular, Inc.","relationship":"client"}],"dollarAmounts":[{"amount":"$274.8 million","context":"Q2 2026 revenue"},{"amount":"$5.4 million","context":"Q2 2026 GAAP Net Income"},{"amount":"$109.3 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$50.1 million","context":"capital returned to shareholders in Q2 2026"},{"amount":"$150 million","context":"increased share repurchase authorization"},{"amount":"$1,085 million to $1,095 million","context":"FY 2026 revenue guidance"},{"amount":"$47.1 million","context":"Q2 2026 share repurchase spend"}]},"materialImpact":{"score":4,"reasoning":"Q2 revenue grew 20% year-over-year and Adjusted EBITDA increased 18%, leading the company to raise full-year guidance. The board also increased the share repurchase authorization to $150 million. While GAAP net income declined due to non-recurring items, the underlying operating metrics and strategic outlook are strong."},"tickerRelevance":{"others":[],"primary":"EVTC"},"globalImportance":25,"audienceRelevance":20,"eventTypeSecondary":["guidance_update","buyback","partnership"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings-guidance-raise","sectorWeight":"fintech-payments"}},"event_type":"earnings","event_type_secondary":["guidance_update","buyback","partnership"],"sentiment":"bullish","material_impact_score":4,"narrative":"EVERTEC reported second quarter revenue of $274.8 million, up 20% year-over-year, while Adjusted EBITDA increased 18% to $109.3 million driven by organic growth and recent acquisitions.\n\nManagement raised its full-year 2026 outlook, projecting revenue growth of 16.4% to 17.5% and Adjusted EPS of $3.94 to $4.04, up from previous expectations.\n\nThe board increased the share repurchase authorization to $150 million, and the company signed strategic agreements with Transbank in Chile and Clip in Mexico to expand its Latin American footprint.","key_figures":{"eps":0.09,"revenue":274800000,"guidance":"FY26 Revenue $1,085M-$1,095M; Adj EPS $3.94-$4.04","revenueYoy":"20%","customDimensions":{"adjusted_eps":1.05,"adjusted_ebitda":109300000,"buyback_q2_spend":47100000,"returned_capital":50100000,"buyback_authorization":150000000}},"named_entities":{"people":[{"name":"Mac Schuessler","role":"President and Chief Executive Officer"},{"name":"Karla Cruz-Jusino","role":"Chief Financial Officer"}],"products":["ATH network","ATH Movil"],"companies":[{"name":"EVERTEC, Inc.","ticker":"EVTC"},{"name":"Transbank","relationship":"partner"},{"name":"Clip","relationship":"partner"},{"name":"Popular, Inc.","relationship":"client"}],"dollarAmounts":[{"amount":"$274.8 million","context":"Q2 2026 revenue"},{"amount":"$5.4 million","context":"Q2 2026 GAAP Net Income"},{"amount":"$109.3 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$50.1 million","context":"capital returned to shareholders in Q2 2026"},{"amount":"$150 million","context":"increased share repurchase authorization"},{"amount":"$1,085 million to $1,095 million","context":"FY 2026 revenue guidance"},{"amount":"$47.1 million","context":"Q2 2026 share repurchase spend"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-05T01:37:14.888Z","global_importance":25,"audience_relevance":20,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings-guidance-raise","sectorWeight":"fintech-payments"}},"durationMs":224453,"modelName":"glm-4.7"}}