Evertec Q3 Revenue Rises 24% on Latin America Growth

Evertec Inc. (NYSE: EVTC) reported a 24% increase in third-quarter 2026 revenue, with acquisitions and organic expansion in Latin America driving most of the growth. Adjusted earnings also rose, although the company’s consolidated adjusted EBITDA margin narrowed as lower-margin Latin American operations represented a larger share of its business.

Revenue for the quarter ended September 30 reached $283.0 million, up from $228.6 million a year earlier. On a constant-currency basis, revenue increased approximately 21%, excluding favorable foreign-exchange movements primarily related to Brazil.

Adjusted EBITDA rose 19% to $110.5 million, while the adjusted EBITDA margin declined 150 basis points to 39.0%. Evertec said the margin shift primarily reflected the growing weight and different margin profile of its Latin American operations. At constant exchange rates, the margin was 39.9%.

Adjusted net income increased 8% to $64.8 million. Higher adjusted EBITDA was partly offset by increased operating depreciation and amortization, interest expense, the non-controlling interest associated with the Tecnobank acquisition and a higher effective tax rate. Adjusted earnings per share advanced 16% to $1.07, benefiting from both earnings growth and share repurchases.

On a GAAP basis, net income declined to $31.5 million from $33.5 million in the prior-year quarter. Interest expense, net, rose to $17.3 million from $12.5 million, while depreciation and amortization increased to $43.6 million from $28.4 million.

Latin America leads segment growth

Latin America Payments and Solutions was the main growth contributor. Segment revenue climbed 59% to $143.6 million, or 52% on a constant-currency basis, reflecting the Tecnobank and Dimensa acquisitions as well as organic growth across the region. Evertec cited new and expanded client engagements, contract repricing, broader project scope and growth in value-added services such as digital recovery, analytics and cloud solutions.

The segment’s adjusted EBITDA increased 77% to $43.2 million, and its margin expanded 310 basis points to 30.1%. The improvement reflected revenue growth and a more favorable business mix, including Tecnobank’s higher-margin contribution, partly offset by continued investment in personnel and technology.

Payment Services in Puerto Rico and the Caribbean generated revenue of $60.1 million, up 9%, while adjusted EBITDA rose 14% to $34.2 million. The segment benefited from point-of-sale transaction growth in Puerto Rico, a global payments partnership, double-digit increases in ATH Móvil volumes and transactions, and higher vehicle-registration and fine-processing activity. Its adjusted EBITDA margin increased 280 basis points to 56.8%, despite a one-time operational loss and higher technology costs.

Merchant Acquiring revenue also grew 9%, reaching $51.0 million. Higher sales volumes and transaction activity among existing and new high-volume merchants, increased gasoline prices and pricing initiatives supported the result. Adjusted EBITDA rose 15% to $21.4 million, lifting the margin by 220 basis points to 42.0%.

Business Solutions was the only operating segment to report lower revenue. Sales declined 5% to $58.6 million, primarily because of a 10% contractual discount to Popular that took effect in October 2025 and the absence of prior-year hardware sales. Adjusted EBITDA fell 18% to $20.6 million, and the margin contracted 550 basis points to 35.2% due to lower revenue, higher reserves and increased technology costs.

2026 outlook and balance sheet

For full-year 2026, Evertec expects revenue of $1.088 billion to $1.096 billion, representing reported growth of 16.7% to 17.6% and constant-currency growth of 14.5% to 15.4%. The company projects an adjusted EBITDA margin of 39.5%.

GAAP diluted earnings per share are expected to range from $1.66 to $1.74. Adjusted EPS is projected at $4.00 to $4.08, equivalent to reported growth of 10.5% to 12.7% and constant-currency growth of 9.4% to 11.6%. Evertec also expects capital expenditures of $95 million and an effective tax rate of 10% to 11%.

Total debt stood at $1.30 billion at September 30, up from $1.11 billion a year earlier. Net debt increased to $1.01 billion from $631.8 million, while net debt to adjusted last-12-month EBITDA rose to 2.46 times from 1.81 times. Ending liquidity was $448.5 million.

Evertec identified several uncertainties that could affect its results, including its reliance on Popular for a significant portion of revenue, contract-renewal risk, technology or cybersecurity disruptions, foreign-exchange exposure, regulatory requirements and political or economic instability across Latin America, Puerto Rico and the Caribbean. The company also noted that higher leverage could constrain its ability to raise capital, increase interest-rate exposure and limit its flexibility in responding to economic or industry changes.