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DATE

Thursday, Feb. 26, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

  • President & Chief Executive Officer — Morgan M. Schuessler
  • Chief Financial Officer — Karla Cruz-Jusino

TAKEAWAYS

  • Total Revenue -- EVERTEC (EVTC 1.97%) reported $244,800,000 for the quarter, up 13%, driven by momentum in Latin America and a full-quarter contribution from the Tecnobank acquisition.
  • Adjusted EBITDA -- $98,800,000 for the quarter, increasing 11.5% with a margin of 40.3%, which declined 50 basis points as expected due to business mix.
  • Adjusted EPS -- $0.93 for the quarter, up 7%, reflecting earnings growth and a lower share count from repurchases.
  • Latin America Payments and Solutions Revenue -- $109,300,000 for the quarter, jumping 40%, with organic constant-currency revenue growth estimated at 36% and a 4 percentage point benefit from currency tailwinds.
  • Merchant Acquiring Net Revenue -- $48,200,000 for the quarter, increasing 3%, as sales volume rose 3% and transactions rose 4%; adjusted EBITDA margin fell 250 basis points to 40.2% due to increased processing costs.
  • Payment Services Puerto Rico and Caribbean Revenue -- $56,400,000 for the quarter, growing 3%, enabled by double-digit ATH Movil growth and a 7% rise in POS transactions.
  • Business Solutions Revenue -- $58,300,000 for the quarter, down 7%, as the 10% discount to Popular impacted results; CPI escalator capped at 1.5% partially offset the decline.
  • Shareholder Returns -- $82,000,000 returned in 2025 via dividends and buybacks, including $65,600,000 used to repurchase 2,200,000 shares in the quarter.
  • Full-Year Revenue -- $931,800,000, rising 10%, or 11% on a constant currency basis, with Latin America up 22% and Merchant Acquiring up 5%.
  • Liquidity -- $490,400,000 as of year end, with net debt to trailing twelve-month adjusted EBITDA at 2.08x.
  • M&A Activity -- Tecnobank acquisition completed in Q4; Demensa acquisition announced for Brazil, expected to close in Q2; both initiatives support regional expansion.
  • Fiscal 2026 Guidance -- Revenue projected at $1,024,000,000 to $1,036,000,000 (9.9%-11.2% growth), with adjusted EPS expected to rise 6.1%-9.4% and adjusted EBITDA margin of 39.5%-40.5%.
  • Business Mix Shift -- Over 40% of revenue now expected from outside Puerto Rico in 2026, while maintaining overall corporate margins and absorbing the 10% Popular discount.
  • AI Adoption -- AI embedded in risk management, fraud monitoring, and credit decisioning; over 4,500 employees upskilled in AI during 2025.
  • Share Repurchase Authorization -- Board approved a refresh allowing buybacks up to $150,000,000 through December 2027.

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RISKS

  • Business Solutions Segment Revenue -- Down 7% in the quarter, attributed to the full 10% discount to Popular that began in October and not fully offset by the capped CPI escalator.
  • Business Solutions EBITDA Margin -- Decreased by approximately 370 basis points, mainly driven by lower revenues resulting from the Popular discount, with expenses flat year over year.
  • Adjusted EBITDA Margin Pressure -- Declined by 50 basis points sequentially from the prior year in the quarter, reflecting margin impact from business mix and cost structures, notably in Latin America.
  • Guidance Constraints for Business Solutions -- Management expects revenue in the segment to decline low- to mid-single digits in 2026, with the Popular discount now fully embedded but partially offset by the capped CPI escalator.

SUMMARY

Management highlighted a significant acceleration in Latin America, where recent M&A, client pipeline wins, and consistent organic momentum underpin a strategic shift, with more than 40% of revenue soon expected from outside Puerto Rico. The company is operationalizing AI capabilities to drive efficiency, scale product innovation, and boost client engagement, supported by broad workforce upskilling. Shareholder returns were prioritized through substantial buybacks and a refreshed repurchase authorization extending through 2027. The 2026 outlook calls for double-digit reported revenue growth, with management expressly building in FX tailwinds, capital deployment for future M&A, and disciplined cost initiatives to stabilize margins despite segment dilution. Full-year liquidity and leverage improvements support sustained capital flexibility and further acquisition activity.

  • Pipeline conversion in Latin America, including Banco de Chile (NYSE: BCH) and Grupo Aval (NYSE: AVAL), is cited as an important driver for continued organic growth, with new client implementations expected to accelerate revenue contributions in the second half.
  • The Demensa acquisition is described as opening a new vertical (insurance) and providing “significant cross-sell opportunities both ways,” with 15,000 clients to be added but not yet included in guidance or projections.
  • Interest expense is projected to remain stable in 2026, balancing lower rates and successful debt repricing with incremental Tecnobank acquisition debt.
  • The adjusted effective tax rate is forecast at 11%-12% in 2026, reflecting the higher tax cost related to Latin America’s increased revenue mix.

INDUSTRY GLOSSARY

  • ATH Movil: EVERTEC’s proprietary mobile payments and peer-to-peer transaction platform, with broad adoption among Puerto Rican merchants and consumers.
  • CPI Escalator: A contractual price adjustment tied to changes in the Consumer Price Index, determining allowable annual pricing increases for service contracts.
  • MSA Discount to Popular: A contractual 10% reduction in pricing for services provided to Banco Popular under a master service agreement that commenced in Q4 2025.
  • Non-Controlling Interest: Portion of net income attributed to minority shareholders of an acquired entity (e.g., Tecnobank) not owned by EVERTEC.

Full Conference Call Transcript

Morgan M. Schuessler: Thanks, Loyda, and good afternoon, everyone. I am pleased to announce a strong finish to 2025 for EVERTEC, Inc., delivering another year of record revenue with solid execution across our core markets. We continue to execute on our strategy to grow organically, expand our capabilities through M&A, and strengthen our position in the payments and financial services market. In the fourth quarter, we closed the previously announced acquisition of Tecnobank, and earlier this month, we also announced our plans to further advance our product offering and customer base in Brazil with the acquisition of Demensa. We are also now in production with Banco de Chile providing acquiring, processing, and risk monitoring services.

These achievements position us well for 2026, with a continued focus on sustainable organic growth, disciplined capital allocation, and long-term value creation through differentiated products and successful integrations. For 2026, we are also proud that more than 40% of our revenues will now be generated outside of Puerto Rico, while maintaining overall corporate margins and absorbing the 10% MSA discount to Popular. On today's call, I will provide a brief summary of our 2025 results, including updates on our Puerto Rico and Latin America businesses, recent M&A activity, and some comments on AI.

I will then turn the call over to Karla, who will provide more details on our Q4 and full year results as well as our outlook for 2026. Starting with Slide 4, I will highlight our full year 2025 performance. Revenue for the year was approximately $931,800,000, a 10% increase over the prior year, 11% on a constant currency basis, reflecting strong execution across all segments. Latin America Payments and Solutions grew 22% year over year, benefiting from the full-year contribution of the two acquisitions closed in 2024, as well as the results from Tecnobank during 2025. Excluding M&A and the approximately $6,000,000 of foreign currency headwinds, year-over-year growth was in the double digits reflecting better-than-expected performance in Brazil.

Merchant Acquiring revenue grew 5% year over year, benefiting from higher sales volume. Payment Services Puerto Rico grew 4% year over year, reflecting strong performance from the ATH Movil business and higher transaction volumes. Business Solutions grew 3% year over year, reflecting higher network and consulting services as well as the benefit from projects completed in the current and prior year, partially offset by the 10% discount to Popular that became effective in the fourth quarter. Adjusted EBITDA was $373,400,000, up approximately 10% year over year with an adjusted EBITDA margin of 40.1% for the year.

Adjusted EPS increased 10% year over year to $3.62, driven by strong adjusted EBITDA growth and lower interest expense, partially offset by higher tax expense. For the full year, we generated approximately $227,000,000 in operating cash flows and returned approximately $82,000,000 to shareholders through share repurchases and dividends, with $66,000,000 of repurchases completed during the fourth quarter, taking advantage of the attractive share price. Liquidity remains strong at approximately $490,000,000 as of December 31. I would like to note that our Board of Directors approved a refresh of our share repurchase program authorizing the company to repurchase up to an aggregate of $150,000,000 of shares of its common stock through 12/31/2027.

Let me now provide an update on Puerto Rico beginning on Slide 5. Conditions remain favorable with positive trends in employment and tourism, and healthy sales volume and transaction growth driven by merchant acquiring and ATH Movil. Unemployment remains near historic lows, and consumer spending continues to demonstrate strength. Turning to LatAm on Slide 6. Revenue was up 22% year over year driven by organic growth and reacceleration in Brazil, as well as contributions from recent acquisitions, including Tecnobank, which closed early in the fourth quarter. On a constant currency basis, revenue increased by 24% compared to the prior year.

As an update on Sinqia and our growth opportunities in Brazil, in 2025 we continued to see reacceleration of growth driven by improved customer engagement, positive feedback on our platform modernization efforts, and the impact of contract repricing actions. These initiatives strengthened performance during the current year and position us well as we enter 2026 with meaningful opportunities to continue delivering strong organic growth through deeper penetration of our client base, continued modernization of our platforms, and the scalability benefits of the investments we have already made. Consistent with delivering on our Brazil strategy, we recently announced the acquisition of Demensa, a B2B technology provider servicing financial institutions in Brazil, which is expected to close in the second quarter.

This acquisition strengthens our product offering and expands our addressable market in the region. We expect Demensa to become an important contributor to growth as we move through 2026 and beyond. We are also entering 2026 with one of the strongest pipelines we have seen in recent years and have already begun converting that pipeline into wins, including Banco de Chile and Grupo Aval in Colombia, which we have announced over the last quarters. As we move through 2026 and beyond, we expect continued pipeline conversion to be an increasingly important driver of organic growth across Latin America.

Moving on to Slide 7, I want to comment on how EVERTEC, Inc. is positioning itself in an AI-driven landscape where innovation is accelerating. Our strategy is anchored in a governance framework with a clear focus on data security, responsible AI, and centralized oversight through regional centers of excellence. This framework enables us to scale AI deliberately while protecting our customers, our brand, and our long-term value creation. We are already embedding AI across multiple EVERTEC, Inc. products, particularly in risk management, fraud monitoring, and credit decisioning. Through brand data, we offer AI-native proprietary credit scoring models that leverage telco data to help lenders assess credit risk more effectively, particularly in underbanked markets.

Furthermore, we are working to embed AI assistants to enable self-servicing capabilities that help users resolve issues more effectively. Operationally, AI is beginning to drive productivity gains across software development, quality assurance, and internal processes, enabling faster delivery without incremental headcount. In 2025, we operationalized AI across our delivery process, and we are already seeing a reduction in core engineering task times and API development efforts. Quality Assurance AI automation has also started to shorten validation cycles and reduce review time. These improvements will continue to enhance reliability and allow us to scale delivery and capacity more efficiently as we move into 2026.

With the support of our centers of excellence and broad-based employee upskilling, which reached over 4,500 employees in 2025, we are ensuring that AI investments are prioritized, governed, and aligned with business objectives. Before turning over to Karla, I want to thank our entire team for their continued execution in 2025. Organic growth in LatAm remains strong, and strategic M&A continues to support our diversification into high-growth markets. I look forward to updating you on our progress throughout 2026. With that, I will now turn the call over to Karla, who will go over the fourth quarter and full year results in more detail and discuss our outlook for 2026.

Karla Cruz-Jusino: Thank you, Morgan, and good afternoon everyone. Turning to Slide 9, I will begin by reviewing the fourth quarter and full year results for EVERTEC, Inc. Total revenue for the quarter was $244,800,000, an increase of approximately 13% compared to the prior year, driven by the continued momentum in Latin America, including a full-quarter contribution from Tecnobank, as the acquisition closed October 1. In Puerto Rico, results benefited from higher transaction volumes, continued growth in the ATH Movil business, and increased sales volumes in merchant acquiring. On a constant currency basis, revenue growth would have been approximately 11.4% as reported results this quarter benefited from favorable FX primarily driven by the strengthening of the Brazilian real.

Adjusted EBITDA for the quarter increased to $98,800,000, up 11.5% year over year with a 40.3% margin, representing a modest 50 basis points decline consistent with our expectations. EBITDA growth was driven by revenue outperformance, including the contribution from recent M&A and the reacceleration of the Brazilian market. Results also benefited from a $7,100,000 gain related to research and development tax credits and the previously announced cost initiatives. Adjusted net income was $59,500,000, an increase of approximately 6% year over year, reflecting the higher adjusted EBITDA and lower cash interest mainly driven by the repricing of our TLB during 2025 and lower interest rates.

These were partially offset by incremental debt and the net income attributable to the non-controlling interest related to Tecnobank. The adjusted effective tax rate for the quarter was 8.1% and adjusted EPS was $0.93, an increase of approximately 7% from the prior year, driven by earnings growth and the benefit of a lower share count from repurchases completed in the fourth quarter. For the full year, total revenue was $931,800,000, an increase of approximately 10% compared to the prior year.

Morgan M. Schuessler: Or 11% on a constant currency basis.

Karla Cruz-Jusino: Growth was driven by strong performance across all segments. In Latin America, on a constant currency basis and excluding M&A, the business delivered double-digit organic growth for the year. This highlights the strength of our business and continued momentum across the region. In Puerto Rico, performance remained solid, supported by strength across both POS transactions and the ATH Movil business, as well as increased sales volumes in merchant acquiring. Business Solutions also reflected year-over-year growth despite the 10% discount that impacted Q4, demonstrating resilience and a solid underlying base for our Puerto Rico business as we enter 2026.

Adjusted EBITDA for the year was $373,400,000, an increase of approximately 10% with an EBITDA margin of 40.1%, consistent with the previous year, even as Latin America becomes a bigger part of our overall business and coming at lower margins. Adjusted net income increased approximately 9% year over year to $233,200,000 and adjusted EPS was $3.62, an increase of approximately 10% compared to the prior year. Moving to Slide 10, I will now cover our fourth quarter results by segment. Beginning with Merchant Acquiring, net revenue increased approximately 3% year over year to $48,200,000. Sales volume was up 3% and transactions grew 4%, with growth driven by new merchant wins and existing customers.

There was a slight decrease in our spread reflecting a change in the card mix. Results also benefited from higher non-transactional revenues driven by pricing initiatives implemented during Q3. Adjusted EBITDA for the segment was $19,400,000 with an adjusted EBITDA margin of 40.2%, representing a decline of approximately 250 basis points from the prior year. The margin decrease is attributed to increased processing costs driven by the higher transactions. As we enter 2026, we continue to see healthy transaction trends and stable demand across the merchant acquiring business. On Slide 11 are the results for the Payment Services Puerto Rico and Caribbean. Revenue for the quarter was $56,400,000, an increase of approximately 3% year over year.

ATH Movil, specifically the ATH Movil business, was a key contributor, delivering double-digit growth in both volumes and transactions. POS transactions also increased year over year by approximately 7%, supporting the overall segment performance. Results were partially offset by lower services provided to the Latin America segment, primarily driven by lower transactions processed and a slight negative impact from the Banco Popular discount. Adjusted EBITDA was $30,300,000, down approximately 3% from the prior year, and adjusted EBITDA margin was 53.7%, representing a decline of approximately 350 basis points. The margin decrease was driven primarily by higher operating expenses, in part by increased cloud cost and higher POS repairs costs.

On Slide 12 are the results for the Latin American Payments and Solutions segment, the largest contributor to revenue and EBITDA growth during the quarter. Revenue for the quarter was $109,300,000, an increase of approximately 40% year over year. The fourth quarter benefited from a full-quarter contribution from the Tecnobank acquisition as well as contributions from Gran Anuidade that anniversaried during the quarter. Results also reflected double-digit organic growth across the region, driven in part by the reacceleration in Brazil, where disciplined execution on modernization initiatives, favorable contract repricing tailwinds, and a strong pipeline supported growth. Currency tailwinds in the quarter positively impacted segment growth by approximately four percentage points, mainly driven by the appreciation of the Brazilian currency.

On a constant currency basis, revenue growth for the segment would have been approximately 36%. Adjusted EBITDA was $34,900,000, an increase of approximately 39% from the prior year with an adjusted EBITDA margin of 32%, a decline of approximately 30 basis points. The margin decrease was mainly driven by the Getnet gain recorded in the prior year that was 100% accretive to margin. Moving to Slide 13 are the results for our Business Solutions segment. Revenue for the quarter was $58,300,000, representing a decrease of approximately 7% from the prior year.

This decline was in line with our expectations and was primarily attributable to the 10% discount to Popular that began in October, partially offset by the benefit from the CPI, which is capped at 1.5% for 2025. As a reminder, beginning on October 2026, the CPI escalator will now allow increases above 2%, capped at a maximum of 2%. Adjusted EBITDA was $20,600,000, a decrease of approximately 15% from the prior year, and adjusted EBITDA margin declined approximately 370 basis points to 35.3%. The decrease in EBITDA margin was mainly driven by lower revenues resulting from the 10% discount to Popular as overall expenses remained consistent with the prior year.

Moving to Slide 14, we see a summary of our corporate and other expenses. Adjusted EBITDA was negative $6,500,000 for the quarter, representing 2.7% of total revenue. This was an improvement from the prior year, driven in part by the $7,100,000 gain related to research and development tax credits recognized during the quarter. Moving to Slide 15, I will now review our cash flow performance for 2025. We continued to effectively manage our working capital, resulting in net cash from operating activities of $227,000,000. Capital expenditures were $91,500,000 for the year, reflecting investments to modernize our platforms and ongoing product innovation, refresh of key hardware, and continued enhancements to our information security capabilities.

During the year, we also deployed approximately $144,000,000 toward the Tecnobank acquisition, paid down approximately $23,900,000 in debt, and returned approximately $82,000,000 to shareholders through share repurchases and dividends. We repurchased 2,200,000 shares during the fourth quarter for $65,600,000, and at year end we had approximately $85,000,000 available for future use under the company's share repurchase program, which has now been increased to $150,000,000 and extended through 12/31/2027. Our ending cash balance for 2025 was $348,100,000, an increase of approximately $33,500,000 from the prior year. Moving to Slide 16, our net debt position at year end was $806,000,000, comprised of $1,100,000,000 in total long- and short-term debt, offset by $294,000,000 of unrestricted cash.

Our weighted average interest rate was approximately 5.86%, a decrease of approximately 60 basis points from 2024, reflecting the positive impact from our debt repricing actions and lower interest rates. Our net debt to trailing twelve months adjusted EBITDA was approximately 2.08x, generally in line with the 2.06x a year ago and at the lower end of our leverage range of 2x to 3x, inclusive of the Tecnobank acquisition executed during the fourth quarter, reflecting our disciplined approach to capital allocation and balance sheet management. As of December 31, our total liquidity, which excludes restricted cash and includes available borrowing capacity, was $490,400,000, up approximately $23,000,000 from the prior year.

Now turning to Slide 17, I will provide an overview of our 2026 outlook. For 2026, we expect reported revenue to be in the range of $1,024,000,000 to $1,036,000,000, representing growth of 9.9% to 11.2% year over year. This outlook includes approximately 120 basis points of foreign currency tailwinds, resulting mainly from the current appreciation of the Brazilian real compared to the average rate for 2025. On a constant currency basis, we expect revenues for 2026 to grow between 8.7% to 10%. Adjusted EPS is expected to grow between 6.1% and 9.4% from the $3.62 reported for 2025, or between 4% to 8% on a constant currency basis.

This outlook assumes an adjusted EBITDA margin of 39.5% to 40.5% and an effective tax rate of 11% to 12%. Let me now walk you through some of the key assumptions underlying our outlook, beginning with revenue expectations by segment. For Merchant Acquiring, we anticipate mid-single-digit growth in 2026 supported by stable transactions and sales volume trends and anticipated implementation of key merchants expected to contribute more meaningfully in the second half of the year, and to a lesser extent the benefits from the recently implemented pricing initiative.

In Payments Puerto Rico and Caribbean, we expect mid-single-digit growth in 2026 supported by continued momentum in ATH Movil, including the ATH Movil business, as well as ongoing POS transaction growth across our merchant base. While the slight impact from the Banco Popular discount will continue to impact year-over-year comparisons, that headwind is now fully reflected in our expectations, and we expect underlying volume growth to drive overall revenue expansion in this segment. We remain encouraged by transaction trends entering the year and the continued adoption of digital payment solutions across Puerto Rico. For Latin America Payments and Solutions, we expect growth to be in the mid-20s in 2026, low 20s on a constant currency basis.

We expect incremental growth from key client implementations and the continued pipeline conversion as we build on the strong demand environment and customer wins we have seen over the last several quarters. As we progress through the year, we expect the implementations currently underway and our client pipeline to become more meaningful contributors in the second half. We also anticipate that Brazil will remain a key driver of growth during 2026, including the benefit from nine additional months of Tecnobank. Finally, in Business Solutions, we expect revenue to decline in the low- to mid-single digits, reflecting the anticipated reset following the 10% discount to Popular, which is now fully embedded in our run rate.

This impact is expected to be partially offset by the CPI escalator for Popular services and ongoing demand for network and consulting services. While near-term growth will be constrained by the reset, we believe the segment is positioned to benefit from more normalized comparisons as we exit the year. As we think about the cadence of 2026, we expect the first half of the year to be in line with how we exited the fourth quarter, reflecting the momentum already in the business and a steady underlying demand.

As we move into the second half of the year, we expect client wins and implementations that are currently in progress to become a more meaningful driver of growth, particularly across Latin America. This second-half acceleration reflects the strength of our pipeline and conversion capabilities, reinforcing our confidence in the full-year outlook. Turning to margins, to offset the impact of the 10% Popular discount and the lower-margin contribution from Latin American organic growth, we remain focused on executing on the targeted cost initiatives previously announced. While business mix will continue to be a factor in 2026, we expect these actions to support margin stability as we balance profitability with our continued investments in growth.

Interest expense is projected to be overall aligned with the prior year, supported by successful debt repricing and lower interest rates, offset by incremental debt related to the Tecnobank acquisition. Lastly, with respect to tax sets, we expect an adjusted effective tax rate of 11% to 12% in 2026. This reflects a higher contribution from Latin America, which has a higher tax cost. From a capital deployment perspective, our priorities remain consistent: deploying capital for growth through M&A while continuing to invest in our business and products, with a targeted CapEx of approximately $90,000,000 for 2026. We also expect to continue returning cash to shareholders via dividends and, when appropriate, share repurchases.

Before moving on, I want to clarify that our 2026 outlook does not contemplate any contribution from the Demensa acquisition, as the transaction has not yet closed. We expect to update our guidance during the earnings call following the close of the transaction. In summary, we delivered a strong fourth quarter and full year in 2025, driven by solid execution across our segments, continued momentum in Latin America, and disciplined cost management. As we enter 2026, we believe EVERTEC, Inc. is well positioned to deliver sustainable growth. Our outlook reflects the strength of our business, consistent organic trends in Latin America, a stable operating environment in Puerto Rico, and a more normalized base in Business Solutions.

With a strong balance sheet and liquidity and a proven ability to execute across diverse markets, we are confident in our ability to create long-term value for our shareholders. We appreciate the continued support, and we look forward to updating you on our progress throughout 2026. With that, operator, please open the line for questions.

Operator: Ladies and gentlemen, at this time we will begin the question-and-answer session. To withdraw your questions, you may press 2. Prior to pressing the keys, please ensure the best sound quality. Our first question today comes from Madison Sewer from Raymond James. Please go ahead with your question.

Madison Sewer: Hey, good afternoon and nice results here. I wanted to start on the pipeline commentary in Latin America. You mentioned it is a key driver for organic growth. So I was hoping you could provide some additional color, maybe just on the size of the pipeline relative to the last few quarters, if you are seeing an acceleration in sales activity, and then does this pipeline support the double-digit organic growth you are seeing in 2026, or do you think you are still reliant on new sales driving some of that growth as well for this upcoming year?

Morgan M. Schuessler: So, yeah. Hey, Madison. This is Morgan. So what I would say is, look, the pipeline is healthy and we have seen it throughout the year. So if you look at Chile, initially Chile, the big client we had was Getnet, sent in there, but we were able to sign Banco de Chile and now that is now live and operational, which is one of the best banks in Chile. You have seen these big ones; we are selling them and now implementing them. We also talk about Grupo Aval, which is one of the biggest banks in Colombia. So now it is not just Chile; we are seeing it in other countries.

So Grupo Aval we are in the process of implementing, so that should have an impact this year as well. We have additional opportunities in the pipeline. So those are—we only talk about those when, you know, we sign the deal and we have implemented it. So we will talk more about that in the future, but we booked some pretty meaningful deals last year that will have an impact in 2026, and we expect that cadence to continue given the pipeline that we have.

Madison Sewer: Okay, great. And then I did want to ask on Demensa here. What made this an attractive takeout for you guys? And, obviously, it closes here expected in the second quarter, but what is the plan once you take control of that asset? Do you see potential cross-sell opportunity or just any color on what made this an attractive asset and the plan once you acquire it?

Morgan M. Schuessler: Sure. So, look, I mean, the one thing we are very excited about is the success of Sinqia. You know, we made that acquisition about two, two and a half years ago, and we have really seen the growth reaccelerate. So we are pleased with what Claudio and the team have done there to get the growth that they are getting today. And it has been a great asset to roll up additional acquisitions. We did it with Tecnobank and now we are excited about Demensa. The thing about Demensa is it is a JV between Totvs, which is one of the big tech companies out of Brazil, and B3, which is the exchange.

So it is two very reputable companies that have built this JV. And we are excited because it has everything that you described. One is it gets us into a new vertical with insurance and also lets us have additional products and double down on some of the verticals we are in, and significant cross-sell opportunities both ways. They have 15,000 clients. We have our roll of clients. So it is a new vertical. We see cross-sell opportunities, potentially some cost synergies as well.

Madison Sewer: Okay, great. Thank you guys.

Operator: And our next question comes from Cristopher David Kennedy from William Blair. Please go ahead with your question.

Cristopher David Kennedy: Yes, good afternoon. Thanks for taking the question. Just a follow-up on the last one. I mean, M&A activity has picked up recently. Should we expect that type of pace to continue as we go forward here?

Morgan M. Schuessler: Hey, Chris. So, I mean, what I would tell you is, as you know, you have followed the story for a while, we are pretty excited because this year we will have over 40% of our revenues outside of Puerto Rico. So it creates a nice growth formula for the company as you look at how that segment grows compared to our Puerto Rican businesses. So the M&A and the organic growth has created sort of the new EVERTEC, Inc. when it comes to a formulaic perspective around growth. Demensa is meaningful.

We are going to really focus on integrating that once we make that acquisition, just like we did Sinqia, but we will continue to invest in M&A because we think there are good opportunities. The larger our presence we have in the region, the more it makes sense to buy stuff because we can identify it and then we have even more synergies around those types of deals. So we will continue to look at that. We are going to have a low leverage ratio, so we still have capacity. We will continue to look at deals. But just like we did with Sinqia, our focus this year will really be in integrating Demensa.

Cristopher David Kennedy: Understood. Thanks for that. And then just as a follow-up, ATH Movil continues to be very strong. Can you just help us size that business? Thank you.

Morgan M. Schuessler: Yeah. So, I mean, as you know, we do not break out a lot of different metrics, but ATH Movil has been a fantastic growth opportunity for us within the Payments Puerto Rico segment, and it continues to be one of the most preferred payment methods on the island. But we do not have a lot of statistics to break out on this call. I do not know, Karla, do you want to add anything?

Karla Cruz-Jusino: No, I will just add that it continues to grow good, including double-digit growth this quarter, and it is a great product that we have rolled out in the—your point now.

Morgan M. Schuessler: Look. It is a moat for—the great thing about the banks here are ATH and ATH Movil give them a unique advantage against issuers from the mainland, because these are features you have to be a Puerto Rican bank to participate. It creates differentiation for our local banks.

Cristopher David Kennedy: Great. Thanks for taking the questions.

Morgan M. Schuessler: Yeah. Thanks, Chris.

Operator: Our next question comes from Liar Rosenstein from Susquehanna. Please go ahead with your question.

Liar Rosenstein: Hi, guys. Thank you for taking the question. So I was wondering, could you please elaborate on your perspective on macro trends in Puerto Rico and how you expect this to trend in 2026?

Morgan M. Schuessler: Sure. Karla, do you want to—

Karla Cruz-Jusino: Yes. We continue to see a very stable macroeconomic environment here in the island. It has been reflected throughout the growth that we have seen this past year in 2025, and it continues to reflect well as we see January results coming in.

Liar Rosenstein: Thank you very much.

Morgan M. Schuessler: Thank you.

Operator: To withdraw your questions, you may press star and 2. I am showing no additional questions. We will end today's question-and-answer session. I would like to turn the floor back over to management for any closing remarks.

Morgan M. Schuessler: This is Morgan. I want to thank my colleagues for a successful 2025. We look forward to executing well in 2026. I look forward to seeing the investors and the analysts in the coming weeks and coming months. Thanks again for your confidence. Have a good night.

Operator: And with that, we will conclude today's conference call and presentation. We thank you for joining. You may now disconnect your lines.