In This Article:
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Revenue: $228.8 million, up 11% year over year.
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Adjusted EBITDA: $89.4 million, up 14% year over year; margin of 39.1%.
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Adjusted EPS: $0.87, up 21% year over year.
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Operating Cash Flow: $37.6 million.
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Liquidity: Approximately $460 million as of March 31.
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Merchant Acquiring Revenue: $47.6 million, up 11% year over year.
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Payment Services Puerto Rico and Caribbean Revenue: $55.2 million, up 4% year over year.
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Latin America Payments and Solutions Revenue: $83.8 million, up 13% year over year, or 22% on a constant currency basis.
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Business Solutions Revenue: $65.6 million, up 13% year over year.
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Net Debt: $704 million; net debt to trailing 12-month adjusted EBITDA of 2.04 times.
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Capital Expenditures: $22.3 million for the quarter.
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2025 Revenue Outlook: $903 million to $911 million, constant currency growth of 6.8% to 7.7%.
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2025 Adjusted EPS Growth Outlook: 4.9% to 7.6% from $3.28 reported for 2024.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Evertec Inc (NYSE:EVTC) reported a strong start to 2025 with an 11.4% increase in revenue over the prior year, reaching $228.8 million.
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Adjusted EBITDA rose by approximately 14% year over year to $89.4 million, with a margin increase of 100 basis points to 39.1%.
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The company experienced double-digit organic growth in Latin America, driven by the GetNet Chile relationship and the reacceleration of the Brazil business.
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Evertec Inc (NYSE:EVTC) maintained strong liquidity with approximately $460 million as of March 31, 2025.
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The company returned $3.2 million to shareholders through dividends and has a robust M&A pipeline, indicating a focus on strategic growth.
Negative Points
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Currency fluctuations posed a headwind of approximately 3.3% in the quarter, impacting revenue growth.
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The Business Solutions segment saw a decrease in adjusted EBITDA by approximately 4% due to a mix shift towards lower-margin hardware and software sales.
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The company anticipates a 10% popular discount impacting revenue and adjusted EBITDA in the fourth quarter of 2025.
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Evertec Inc (NYSE:EVTC) faces potential indirect impacts from tariffs and macroeconomic uncertainties, particularly in countries reliant on exports like Brazil and Chile.
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The loss of Mercado Libre transactions is expected to impact the Payments Puerto Rico and Caribbean segment, with effects starting in Q2 2025.
Q & A Highlights
Q: Can you elaborate on the strong revenue performance this quarter and whether macroeconomic factors are included in your guidance? A: Joaquin Castrillo, CFO, explained that Evertec outperformed expectations across all segments, with strong consumer confidence and a tailwind in spread. While some macroeconomic degradation is considered in the guidance, nothing drastic is expected, and April's performance aligns with expectations.