EVERTEC, Inc. (EVTC): Results of Operations and Financial Condition
EVERTEC, Inc. (EVTC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 EVERTEC REPORTS SECOND QUARTER 2026 RESULTS Raises Full-Year 2026 Outlook Increases share repurchase authorization Signs strategic agreements with Transbank and Clip SAN JUAN, PUERTO RICO – August 4, 2026 – EVERTEC, Inc. (NYSE: EVTC) (“Evertec” or the “Company”) toda
How this was made
The 30-second read
Why it matters
The filing provides a fresh earnings and guidance datapoint plus a capital return update (repurchase authorization increase), which can drive repricing versus prior expectations. Traders should focus on the magnitude of the guidance raise, the implied growth rate, and whether margin guidance remains stable at 39% to 40%.
Market read
EVTC’s Q2 beat on adjusted metrics and upward guidance revision, paired with a larger buyback authorization, are the primary near-term trading drivers.
What to watch
Business Solutions revenue contracted due to a 10% discount to Popular effective in Q4 2025, and adjusted EBITDA margin dipped slightly due to higher Latin America contribution, which could pressure future profitability if mix shifts further.
EVERTEC REPORTS SECOND QUARTER 2026 RESULTS Raises Full-Year 2026 Outlook Increases share repurchase authorization Signs strategic agreements with Transbank and Clip
Revenue increased 20% to $274.8 million, Adjusted EBITDA increased 18% to $109.3 million, and the Company raised its full-year 2026 revenue and Adjusted earnings per common share outlook. GAAP net income attributable to common shareholders declined to $5.4 million from $40.5 million, reflecting impairment, cybersecurity, acquisition, interest, depreciation and tax items.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 274,820 | – | 20% |
| Constant Currency Revenuenon-GAAP | $ 265,745 | – | 16% |
| Cost of revenues, exclusive of depreciation and amortizationGAAP | $ 124,241 | – | – |
| Selling, general and administrative expensesGAAP | $ 57,310 | – | – |
| Depreciation and amortizationGAAP | $ 39,991 | – | – |
| Total operating costs and expensesGAAP | $ 221,542 | – | – |
| Income from operationsGAAP | $ 53,278 | – | – |
| Interest incomeGAAP | $ 3,727 | – | – |
| Interest expenseGAAP | $ (20,264) | – | – |
| (Loss) gain on foreign currency remeasurementGAAP | $ (698) | – | – |
| (Losses) earnings from equity investeesGAAP | $ (7,768) | – | – |
| Other (loss) income, netGAAP | $ (1,124) | – | – |
| Income before income taxesGAAP | $ 27,151 | – | – |
| Income tax expenseGAAP | $ 20,274 | – | – |
| Net incomeGAAP | $ 6,877 | – | – |
| Net income attributable to EVERTEC, Inc.’s common stockholdersGAAP | $ 5,405 | – | – |
| Net income per common share: BasicGAAP | $ 0.09 | – | – |
| Net income per common share: DilutedGAAP | $ 0.09 | – | – |
| Adjusted EBITDAnon-GAAP | $ 109,335 | – | 18% |
| Adjusted EBITDA Marginnon-GAAP | 39.8% | – | – |
| Adjusted Net Incomenon-GAAP | $ 64,755 | – | – |
| Adjusted earnings per common share: Dilutednon-GAAP | $ 1.05 | – | 18% |
| Six months ended June 30 RevenueGAAP | $ 522,743 | – | – |
| Six months ended June 30 Income from operationsGAAP | $ 97,847 | – | – |
| Six months ended June 30 Net income attributable to EVERTEC, Inc.’s common stockholdersGAAP | $ 29,156 | – | – |
| Six months ended June 30 Adjusted EBITDAnon-GAAP | $ 206,381 | – | – |
| Six months ended June 30 Adjusted Net Incomenon-GAAP | $ 120,804 | – | – |
| Six months ended June 30 Adjusted earnings per common share: Dilutednon-GAAP | $ 1.95 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Payment Services - Puerto Rico & CaribbeanRevenue benefited from higher POS transactions and growth in ATH Movil, primarily in ATH Movil Business, as well as a non-recurring volume-based benefit recognized during the quarter. | $ 60,869 | – | – |
| Latin America Payments and SolutionsRevenue benefited from the contributions of recent acquisitions and continued organic growth across the region. | $ 130,873 | – | – |
| Merchant Acquiring, netRevenue benefited from higher sales volume, higher non-transactional revenues and an improvement in spread. | $ 52,301 | – | – |
| Business SolutionsRevenue contracted mainly as a result of the 10% discount to Popular that came into effect in the fourth quarter of 2025. | $ 58,825 | – | – |
2026 outlook
- Revenue$ 1,085 to $ 1,095
- Tax rateapproximately 11% to 12%
- NoteRevenue growth of approximately 16.4% to 17.5%
- NoteConstant currency revenues (Non-GAAP): 1,067 to 1,077
- NoteConstant currency revenue growth: 14.5% to 15.6%
- NoteEarnings per Share (EPS) (GAAP): $ 1.61 to $ 1.73
- NoteAdjusted EPS (Non-GAAP): $ 3.94 to $ 4.04
- NoteAdjusted earnings per common share growth of approximately 8.8% to 11.7%
- NoteConstant Currency Adjusted EPS (Non-GAAP): $ 3.88 to $ 3.98
- NoteConstant currency Adjusted earnings per common share growth: 7.2% to 10.0%
- NoteAdjusted EBITDA margin of 39% to 40%
- NoteCapital expenditures of approximately $90 million
- NoteShares used in computing adjusted earnings per common share: 61.6
Capital returns
- During the three months ended June 30, 2026, the Company repurchased 1,907,437 shares of its common stock at an average price of $24.68 per share for a total of $47.1 million.
- Returned $50.1 million to shareholders through share repurchases and dividends.
- Dividends paid during the six months ended June 30, 2026 were $ 6,119.
- Repurchase of common stock during the six months ended June 30, 2026 was $ (67,049).
- On July 31, 2026, the Board of Directors approved an increase to the share repurchase authorization to an aggregate $150 million, while maintaining the current expiration date of December 31, 2027.
- Prior to the authorization increase, approximately $83.0 million remained available under the program.
What drove it
- Total revenue growth was driven by organic growth across most segments, contributions from recent acquisitions completed in the current and prior year, and favorable foreign currency fluctuations.
- Revenue benefited from foreign currency exchange rate fluctuations of $9.1 million, primarily in Brazil.
- The Company advanced its Latin America growth strategy through agreements with Transbank in Chile and Clip in Mexico.
- The higher contribution from the Latin America segment primarily drove the modest decline in Adjusted EBITDA margin.
Concerns
- GAAP net income attributable to common shareholders was $5.4 million, compared with $40.5 million in the prior year quarter.
- The Company recorded impairment charges associated with its strategic decision to exit an equity method investment and incurred cybersecurity incident response and remediation costs.
- Recent acquisitions contributed integration costs, higher depreciation and amortization related to acquired intangible assets, and increased interest expense from higher outstanding debt balances.
- Income tax expense was higher, primarily due to discrete tax items, including taxes associated with a dividend distribution used to partially fund the Dimensa acquisition, a valuation allowance against capital losses from the equity investment exit, and a greater proportion of taxable income in higher-tax foreign jurisdictions.
- Business Solutions revenue contracted mainly as a result of the 10% discount to Popular that came into effect in the fourth quarter of 2025.
What to watch
- Execution against revised 2026 revenue guidance of $ 1,085 to $ 1,095 and Adjusted EPS guidance of $ 3.94 to $ 4.04.
- Adjusted EBITDA margin performance against the continued 39% to 40% outlook, following the second-quarter margin of 39.8%.
- The contribution from recent acquisitions and the associated integration, depreciation and amortization, non-controlling interest and debt costs.
- Foreign currency effects, which contributed $9.1 million to second-quarter revenue and are reflected in the 2026 constant currency outlook.
- The effect of the Popular discount on Business Solutions revenue and the planned use of the $150 million repurchase authorization.
Balance sheet and cash flow
- Cash and cash equivalents as of June 30, 2026: $ 260,659.
- Restricted cash as of June 30, 2026: $ 29,737.
- Current portion of long-term debt as of June 30, 2026: $ 29,834.
- Short-term borrowings as of June 30, 2026: $ 35,000.
- Long-term debt as of June 30, 2026: $ 1,221,871.
- Total assets as of June 30, 2026: $ 2,479,618.
- Total liabilities as of June 30, 2026: $ 1,760,539.
- Net cash provided by operating activities for the six months ended June 30, 2026: $ 90,691.
- Additions to software and other intangible assets for the six months ended June 30, 2026: $ (36,580).
- Property and equipment acquired for the six months ended June 30, 2026: $ (11,256).
- Acquisitions, net of cash acquired for the six months ended June 30, 2026: $ (179,757).
- Net cash used in investing activities for the six months ended June 30, 2026: $ (228,949).
- Proceeds from issuance of long term debt for the six months ended June 30, 2026: $ 184,538.
- Net increase in Revolving Facility for the six months ended June 30, 2026: $ 25,000.
- Net cash provided by financing activities for the six months ended June 30, 2026: $ 77,762.
Analysis
Evertec reported second-quarter revenue of $274.8 million, up 20% from $229.6 million, while constant currency revenue was $265.7 million and grew 16%. Growth reflected organic gains across most segments, recent acquisitions and favorable foreign currency fluctuations. The Company identified a $9.1 million benefit from foreign currency exchange rate fluctuations, primarily in Brazil. Merchant Acquiring benefited from higher sales volume, higher non-transactional revenues and improved spread, while Payment Services - Puerto Rico & Caribbean benefited from higher POS transactions, ATH Movil growth and a non-recurring volume-based benefit.
Latin America Payments and Solutions generated $130,873 of revenue, the largest reported segment revenue figure, with contributions from recent acquisitions and continued organic growth. The release attributes the Adjusted EBITDA margin decline to 39.8% from 40.3% primarily to a higher Latin America segment contribution. Business Solutions revenue was $58,825 and contracted mainly because the 10% discount to Popular became effective in the fourth quarter of 2025. The Company also cited strategic agreements with Transbank in Chile and Clip in Mexico as advancing its Latin America growth strategy.
Underlying adjusted profitability increased, with Adjusted EBITDA of $109,335, up 18%, and Adjusted Net Income of $64,755 versus $57,665. Adjusted diluted earnings per common share increased 18% to $1.05 from $0.89, with the release citing higher Adjusted EBITDA and a lower share count from repurchases. In contrast, GAAP net income attributable to common shareholders declined to $5,405 from $40,465, and GAAP diluted EPS was $0.09 versus $0.62. The Company cited equity investment impairment, cybersecurity response and remediation, acquisition integration costs, acquired-intangible depreciation and amortization, higher interest expense, and discrete tax items.
Capital allocation included $47.1 million of second-quarter share repurchases and $50.1 million returned to shareholders through repurchases and dividends. The Board increased the repurchase authorization to an aggregate $150 million on July 31, 2026, with an expiration date of December 31, 2027. As of June 30, 2026, cash and cash equivalents were $260,659 and long-term debt was $1,221,871. For the six months ended June 30, 2026, net cash provided by operating activities was $90,691, while acquisitions, net of cash acquired, were $179,757.
Management raised 2026 revenue guidance to $ 1,085 to $ 1,095 and Adjusted EPS guidance to $ 3.94 to $ 4.04. It continued to expect Adjusted EBITDA margin of 39% to 40%, capital expenditures of approximately $90 million and an adjusted effective tax rate of approximately 11% to 12%. The guide embeds continued growth but leaves execution dependent on acquisition contributions, organic regional growth, foreign currency effects and the ability to manage the cost and earnings effects associated with higher debt and acquired assets.
Management, verbatim
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. Given our strong first-half performance and outlook for the remainder of the year, we are raising our full-year guidance and remain focused on executing our strategy.
Mac Schuessler, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Quarterly operating cash flow was not reported.
- Free cash flow was not reported.
- Prior-quarter comparisons for reported second-quarter metrics were not reported.
- Percentage growth comparisons for individual segment revenues were not reported.
- Previous-release outlook was not provided, so formal actual-versus-prior-guidance comparisons are unavailable.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
EVTC filed an SEC Form 8-K (Item 2.02) with its Q2 2026 results, strategic agreements in Latin America, and revised full-year 2026 outlook.
Ticker impact
Evertec reported Q2 2026 results and raised full-year 2026 revenue and adjusted EPS outlook, plus increased its share repurchase authorization to $150M.
Moderately positive bias for the next session and into the guidance digestion window, assuming no negative follow-through on margins or Latin America contribution.
The filing discloses specific, time-sensitive catalysts: Q2 revenue +20%, adjusted EPS +18%, and an explicit upward revision to 2026 revenue and adjusted EPS, alongside a larger repurchase authorization.
Market effects
Payments and merchant acquiring peers may see read-across on Latin America growth durability and margin stability, but this is company-specific guidance rather than a sector-wide signal.
Latin America expansion via Transbank (Chile) and Clip (Mexico) is highlighted, potentially reinforcing investor focus on regional payments consolidation and organic growth.
Limited broader macro relevance; the main market signal is EVTC’s updated 2026 financial trajectory and capital return plan.
Counterpoint
GAAP net income fell year over year due to impairment, cybersecurity remediation costs, and acquisition-related expenses, so the quality of earnings and margin sustainability could be questioned despite adjusted metrics.
Key entities
- issuerEVERTEC, Inc.
Reported Q2 2026 results, raised full-year 2026 revenue and adjusted EPS outlook, and increased share repurchase authorization to $150M.
- strategic_partnerTransbank
Agreement referenced for growth strategy in Chile.
- strategic_partnerClip
Agreement referenced for growth strategy in Mexico.
