Evertec 2025 Q3 Earnings Beats Expectations as Net Income Surges 32.8%

Evertec (EVTC) reported third-quarter 2025 earnings on November 7, 2025, exceeding revenue and earnings estimates. The company raised its full-year outlook amid robust organic growth and strategic acquisitions.

Revenue

Evertec’s total revenue for Q3 2025 reached $228.6 million, a 7.9% increase from $211.8 million in the prior-year period. This growth was driven by strong performance across all business segments. Payment Services in Puerto Rico & the Caribbean contributed $55.2 million, while Latin America Payments and Solutions generated $90.4 million. Merchant Acquiring, net revenue rose to $46.8 million, and Business Solutions added $61.7 million. The company attributed the increase to higher transaction volumes, non-transactional revenue, and contributions from acquisitions completed in late 2024.

Earnings/Net Income

Evertec’s net income surged 32.8% year-over-year to $32.9 million, with EPS rising 30.8% to $0.51. Adjusted EBITDA increased 6% to $92.6 million, reflecting disciplined cost management and operational efficiency. The EPS and net income growth indicate strong financial performance, driven by higher revenues and cost discipline.

Post-Earnings Price Action Review

Despite outperforming earnings estimates, Evertec’s stock price declined post-earnings, reflecting broader market sentiment. Shares fell 0.55% during the latest trading day, 4.11% over the past week, and 15.35% month-to-date. The price drop suggests investor caution, despite the company’s improved guidance and growth prospects.

CEO Commentary

Mac Schuessler, President and CEO, highlighted the company’s focus on operational excellence and strategic execution. “We are pleased with our third-quarter results, which reflect our continued focus on operational excellence and strategic execution,” he stated. The acquisition of 75% of Brazil’s Tecnobank is expected to deepen Evertec’s market presence and drive long-term growth. Schuessler emphasized the importance of innovation and expansion in Latin America’s digital payments sector.

Guidance

Evertec revised its 2025 outlook, projecting revenue between $921 million and $927 million, representing 8.9% to 9.6% growth. Adjusted EPS is expected to range from $3.56 to $3.62, reflecting 8.5% to 10.4% growth. The company maintains capital expenditures of approximately $85 million and an effective tax rate of 6% to 7%.

Additional News

Evertec’s acquisition of 75% of Brazil’s Tecnobank for $144 million underscores its expansion strategy in Latin America’s digital payments market. Concurrently, Joaquin Castrillo was promoted to COO, and Karla Cruz became CFO. The company also reiterated its commitment to shareholder returns, though no new dividend or buyback announcements were made. Analysts remain optimistic, with a median 12-month price target of $37.00, implying a 24.1% upside from recent levels.