EVERTEC, Inc. Q4 FY2025 earnings call

• Strong finish to 2025 with record revenue. • Closed acquisition of Technobank in fourth quarter and announced acquisition of Demenza in Brazil. • In production with Banco de Chile. • Latin America revenues to be over 40% of total. • AI being embedded across products in risk management, fraud monitoring, etc., driving productivity gains. • Board approved refresh of share repurchase program.

Full year 2025 revenue was approximately $932 million, a 10% increase over prior year. Latin America payments and solutions grew 22% y-o-y. Merchant acquiring revenue grew 5% y-o-y. Payment services Puerto Rico grew 4% y-o-y. Business solutions revenue grew 3% y-o-y. Fourth quarter total revenue was $244.8 million, up ~13% y-o-y. Venture and acquiring: net revenue ~$48.2 million, up ~3% y-o-y; adjusted EBITDA $19.4 million, margin 40.2%. Payment services Puerto Rico and Caribbean: revenue $56.4 million, up ~3% y-o-y; adjusted EBITDA $30.3 million, down ~3%. Latin American payments and solutions: revenue $109.3 million, up ~40% y-o-y; adjusted EBITDA $34.9 million, up ~39%. Business solutions: revenue $58.3 million, down ~7% y-o-y; adjusted EBITDA $20.6 million, down ~15%.

• 2026 reported revenue expected to be $1,024,000,000 - $1,036,000,000, growth 9.9% - 11.2% y-o-y. • Constant currency revenue growth 8.7% - 10%. • Adjusted EPS expected to grow 6.1% - 9.4% from 2025 or 4.7% - 8% on constant currency. • Adjusted EBITDA margin 39.5% - 40.5%, effective tax rate 11% - 12%. • Merchant acquiring: mid-single-digit growth. • Payments Puerto Rico and Caribbean: mid-single-digit growth. • Latin America payments and solutions: mid-20s growth, low 20s on constant currency. • Business solutions: low to mid single-digit decline, partially offset by CPI escalator.

Q: Provide additional color on Latin America pipeline, size relative to last few quarters and if it supports double-digit organic growth in 2026.

A: Pipeline is healthy, big clients like Banco de Chile and Grupo Aval are being implemented, additional opportunities in pipeline with deals booked to impact 2026 and cadence to continue.

Q: What made Demensa an attractive takeout and plan once acquired?

A: Demensa is a JV between reputable companies, gets into new vertical with insurance, has cross-sell opportunities, 15,000 clients, and potential cost synergies.

Q: Should we expect M&A pace to continue?

A: Will continue to look at M&A as opportunities exist, focus this year on integrating Demensa.

Q: Elaborate on macro trends in Puerto Rico and 2026 outlook?

A: Stable macroeconomic environment reflected in past growth and continuing with January results coming in