Evertec (EVTC 10.31%), a leading transaction processor and financial technology provider in Latin America, Puerto Rico, and the Caribbean, announced its financial results for Q2 2025 on July 30, 2025. The company reported GAAP revenue of $229.6 million, exceeding analyst projections of $223.7 million. Adjusted earnings per share were $0.89, above the estimated $0.86. Year-over-year, the business delivered material revenue and earnings growth, prompting management to raise full-year guidance. However, adjusted EBITDA margin slipped slightly. Overall, the period showed strong top-line expansion and continued execution of strategic priorities.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.89 | $0.86 | $0.83 | 7.2% |
| Revenue (GAAP) | $229.6 million | $223.7 million | $212.0 million | 8.3% |
| Adjusted EBITDA | $92.6 million | $86.1 million | 7.5% | |
| Net Income (GAAP) | $40.97 million | $31.9 million | 28.5% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About Evertec: Core Business and Growth Priorities
Evertec provides transaction processing, merchant acquiring, and payment technology services across Latin America, Puerto Rico, and the Caribbean. Its platforms run a broad range of payment transactions, connecting financial institutions, merchants, and government clients. Core offerings include the ATH network for debit transactions and solutions for both digital and in-person payments.
The company aims to capture the shift toward digital and mobile payments by expanding its digital products, such as e-wallets and mobile apps. Recent focus has been on driving organic growth, integrating cloud and analytics capabilities via acquisitions, and maintaining deep client ties with financial institutions like Popular Inc. Success depends on retaining key contract clients, adapting to evolving regulations, and quickly bringing new payment technologies to market.
Quarter Highlights: Growth, Segments, and Financial Drivers
GAAP revenue rose 8% in Q2 2025 compared to Q2 2024. Management attributed this growth to organic expansion across all business areas and contributions from acquisitions finalized in late 2024, as discussed in Q1 2025. Constant currency revenue growth outpaced reported figures at 10% in Q2 2025, reflecting continued foreign exchange headwinds in Latin America.
Segment results were broadly positive. In Latin America Payments and Solutions, revenue climbed 13% from the prior year in Q2 2025, with continued momentum in Brazil and Chile. Key performance factors included integration of cloud and data analytics providers acquired in the last year and increased payment processing volumes. The Payments Puerto Rico & Caribbean segment showed steady growth of 4% in Q2 2025, powered by a rise in transactions through ATH Movil, the company’s proprietary mobile payments service. Business Solutions revenue increased 13% in Q2 2025, but adjusted EBITDA margin slipped, likely due to a larger proportion of lower-margin IT consulting projects and increased project costs.
Merchant Acquiring revenue rose 11% to $47.6 million in Q2 2025. This business, responsible for facilitating card payments for merchants, benefited from stronger transaction volumes and prior-year pricing actions. Adjusted EBITDA in this segment also improved in Q2 2025, but commentary suggested little room for further margin gains, given stabilization in pricing and a gradual decline in average transaction values.
Profitability trends were stable but revealed some inputs to watch. GAAP net income jumped 27% in Q2 2025, driven by higher revenue, lower depreciation, and reduced interest and professional fee expenses. However, adjusted EBITDA margin edged down slightly from 40.6% to 40.3% year over year in Q2 2025 as costs for software, personnel, and cloud rose. Revenue in several areas was boosted by project completions and consulting activity.
Looking Forward: Guidance and Investor Watch Points
Management raised its full-year 2025 guidance. GAAP revenue is now expected to be between $901 million and $909 million for 2025, up from $845 million in 2024. Adjusted earnings per share are projected to range from $3.44 to $3.52 for 2025, compared to $3.28 in 2024. The company maintains its capital expenditure plan at $85 million for 2025, and the adjusted tax rate outlook remains at 6%–7%. Share repurchases are set to continue, with authorization extended to $150 million through December 2026.
Investors should monitor potential headwinds for the second half of the year. Notably, adjusted EBITDA margin narrowed slightly in Q2 2025, reflecting pressure from increased personnel and cloud spending, along with a shift in project mix. Management flagged that some revenue in the Business Solutions and Latin America segments was driven by nonrecurring project work, which could temper growth. Client attrition, including the phased roll-off of the MercadoLibre contract and a discount on Popular's contract due in Q4 2025, may impact results and segment trends going forward.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
