Evertec raises full-year outlook as Latin American revenue grows
The company increased its full-year 2026 revenue growth projection to as high as 17.5% following a 20% rise in quarterly sales.
Evertec (EVTC), the payment processing and technology provider, reported revenue of $274.8 million for the quarter, a 20% increase from $229.6 million in the prior year quarter. On a constant currency basis, the growth rate was 16%.
The results reflected a shift in the company's geographic mix, with significant expansion in its Latin American operations. Revenue for Latin America Payments and Solutions rose to $130.9 million from $86.1 million in the prior year quarter, fueled by a combination of organic growth and acquisitions.
Adjusted EBITDA increased 18% to $109.3 million, compared with $92.6 million in the prior year quarter. The adjusted EBITDA margin compressed slightly to 39.8% from 40.3% in the prior year quarter, due to the higher contribution from the Latin America segment.
Adjusted earnings per common share rose 18% to $1.05 from $0.89, supported by higher adjusted net income and a reduced share count resulting from repurchases. However, GAAP net income attributable to common shareholders fell to $5.4 million, or $0.09 per diluted share, from $40.5 million, or $0.62 per diluted share, in the prior year quarter.
The GAAP decline was the result of impairment charges from the exit of an equity investment, costs associated with cybersecurity responses, and integration expenses from recent acquisitions. Additionally, Business Solutions revenue contracted, primarily due to a 10% discount provided to Popular that took effect in the fourth quarter of 2025.
Evertec raised its full-year 2026 revenue growth outlook to a range of 16.4% to 17.5%, up from a previous expectation of 15.1% to 16.4%. The company also increased its full-year 2026 adjusted EPS growth outlook to between 8.8% and 11.7%, compared with the prior range of 6.6% to 9.9%.
To support its Latin American growth strategy, the company signed new strategic agreements with Transbank in Chile and Clip in Mexico. On July 31, 2026, Evertec increased its share repurchase authorization to $150 million.