Q2 2026 Evertec Inc Earnings Call Transcript
Key Points
- Evertec Inc (EVTC) reported strong Q2 2026 results with revenue up 20% year-over-year to $275 million, driven by organic growth and acquisitions.
- The company secured a major multi-year agreement with Transbank, Chile's leading payment provider, which is expected to significantly boost revenue starting in 2027.
- Evertec Inc (EVTC) expanded its presence in Mexico with a new contract with Clip, a leading fintech serving nearly 1 million merchants, validating its competitive position in the region.
- The acquisitions of Dementia and BB Chain broaden Evertec Inc (EVTC)'s software and digital asset capabilities, enhancing its platform and long-term growth potential.
- Evertec Inc (EVTC) raised its full-year 2026 revenue guidance to $1.085-$1.095 billion, reflecting strong performance and confidence in continued growth.
- The company's Latin America segment grew 52% year-over-year, with adjusted EBITDA margin expanding 320 basis points to 30.3%.
- Evertec Inc (EVTC) continues to return capital to shareholders, with the board replenishing the share repurchase authorization to $150 million.
- The company's AI initiatives are already generating improved productivity and efficiency, with plans to incorporate benefits into financial outlook starting in 2027.
- Evertec Inc (EVTC) faced a cybersecurity incident in June, incurring remediation costs and potential reputational risk, though operations were not disrupted.
- The business solutions segment revenue declined 9% year-over-year due to the 10% contractual discount provided to Popular, impacting adjusted EBITDA margin.
- Adjusted EBITDA margin slightly declined to 39.8% from 40.3%, reflecting the increasing contribution from lower-margin Latin America businesses.
- The company's effective tax rate increased due to a greater proportion of taxable income in higher-tax jurisdictions, partially offsetting earnings growth.
- Evertec Inc (EVTC) recorded impairment charges related to exiting a joint venture in Latin America, reflecting a strategic shift but impacting GAAP results.
- Net debt increased to approximately $1 billion, with leverage rising to 2.55 times adjusted EBITDA, though still within the target range.
- The company expects certain items below adjusted EBITDA, such as higher interest expense and depreciation, to limit full translation of revenue growth into earnings.
- Evertec Inc (EVTC) noted delays in certain new business wins in the business solutions segment, contributing to a revised outlook for mid-single-digit revenue decline.
Ladies and gentlemen, thank you for standing by.
My name is Elaine and I will be your conference operator for today.
At this time, I would like to welcome everyone to Evertech second quarter 2026 earnings.
I'd like to remind everyone that all lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question-and-answer session.
If you would like to ask a question during this time.
Simply press star.
Followed by the number 1 on your telephone keypad.
To raise your hand and enter the queue.
You would like to withdraw your question?
Please pressar 1 again.
Thank you.
I will now turn the call over to Lili Arteaga.
Used to go.
Thank you and good afternoon.
With me today are Max Schusler, our President and Chief Executive Officer, and Carla Cruz Jusina, Chief Financial Officer.
Before we begin, I would like to remind
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