Q4 2025 Evertec Inc Earnings Call Transcript
Key Points
- Evertec Inc (EVTC) reported a record revenue of approximately $932 million for 2025, marking a 10% increase over the prior year.
- The company successfully closed the acquisition of Tecnobank and announced plans to acquire Dimensa, expanding its product offerings and customer base in Brazil.
- Latin America Payments and Solutions segment grew 22% year over year, driven by organic growth and recent acquisitions.
- Adjusted EBITDA increased by 10% year over year to $373.4 million, with a margin of 40.1%.
- Evertec Inc (EVTC) returned approximately $82 million to shareholders through share repurchases and dividends in 2025.
- The Business Solutions segment experienced a 7% revenue decline in Q4 2025, primarily due to a 10% discount to Banco Popular.
- Adjusted EBITDA margin for the Merchant Acquiring segment declined by approximately 250 basis points due to increased processing costs.
- The Payment Services Puerto Rico and Caribbean segment saw a 3% decline in adjusted EBITDA, impacted by higher operating expenses.
- The adjusted effective tax rate for the quarter was 8.1%, reflecting a higher tax profile from Latin America.
- The Business Solutions segment is expected to see revenue decline in the low to mid single-digits in 2026 due to the Banco Popular discount.
Good afternoon, everyone, and welcome to Evertec's fourth-quarter and full year 2025 earnings conference call. Today's conference call is being recorded.
And at this time, I'd like to turn the floor over to Loyda Montes Santiago of Investor Relations. Please go ahead.
Thank you and good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer; and Karla Cruz-Jusino, Chief Financial Officer.
Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC report.
During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as constant currency revenue, adjusted EBITDA, adjusted net income, and adjusted earnings per common share. Reconciliations to GAAP measures and certain additional information
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