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Did Evertec beat or miss consensus estimates last quarter?

What is Evertec's gross profit margin?

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What were the key takeaways from Evertec’s earnings call?

What were the key takeaways from Evertec's earnings call?

- **Q3 Strong Performance**: 8% revenue growth to $228.6 million, driven by 19% LatAm expansion and key wins in Chile/Peru.
- **Cybersecurity Resolution**: Brazil incident resolved with minimal client impact; no broader business disruption.
- **Leadership Refresh**: Promotions of Joaquin (COO) and Karla (CFO) signal strategic focus on LatAm growth and financial discipline.
- **2025 Guidance Beat**: Updated revenue $921-927M (8.9%-9.6% growth), EPS $3.53-3.63 (8.5%-10.4% growth).
- **2026 Outlook**: LatAm cross-sell opportunities offset $14M Popular discount headwind; 40% EBITDA margin target.

**【CEO Summary Section】**
- **Q3 2025 Revenue Growth**: $228.6 million, up 8% YoY, driven by strong organic growth across all segments. LatAm revenue increased 19% YoY, fueled by Brazil's reacceleration and acquisitions (Grandata, Nubity, Tecnobank). Key wins include Banco de Chile and Financiera Oh in Chile and Peru.
- **Cybersecurity Incident Resolution**: Unauthorized activity in Brazil's PIX system resolved with minimal client impact. Systems restored with BCB approval, and 95%+ funds recovered. No impact on other products or geographies.
- **Leadership Transition**: Joaquin Castrillo promoted to COO; Karla Cruz-Jusino becomes CFO. Both bring deep financial and operational expertise.

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted EBITDA $92.6 million (6% YoY growth), margin 40.5%. Adjusted EPS $0.92 (7% YoY). Operating cash flow $157 million; liquidity $518.6 million.
- **Segment Performance**: Merchant Acquiring (+3%), Payment Services (+5%), LatAm Payments (+19%), Business Solutions (+1%). Margins stable despite LatAm organic growth headwinds.
- **2025 Guidance Update**: Revenue $921-927 million (8.9%-9.6% growth), adjusted EPS $3.53-3.63 (8.5%-10.4% growth). 2026 outlook: LatAm growth, cross-sell opportunities, and cost efficiencies to offset Popular discount headwinds.

**【Q&A Key Highlights】**
- **LatAm Expansion**: Products scalable across region; cross-sell opportunities with Sinqia and Tecnobank. Brazil's PIX system incident did not harm commercial momentum.
- **Government Shutdown Impact**: No direct impact on Puerto Rico business; SNAP funding secured through November.
- **Margins**: 40% EBITDA margin for 2025. 2026 margin pressure from Popular discount ($14M headwind) offset by cost initiatives and debt repricing.
- **Capital Allocation**: $150M share buyback program; balanced approach to M&A and stock repurchases.

EVERTEC, Inc. (EVTC) Q3 2025 Earnings Call Transcript

Revenue

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Financing Services Revenue

Other Revenue

Cost of Revenue

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Cost of Financing Services

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Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Loss on Disposal of Assets

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Net Income

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EVTC

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