EVTC · EVERTEC, Inc.

EVERTEC delivered mixed but strategically significant Q1 2026 results: top-line growth accelerated meaningfully (+8% reported, +5% constant currency) on broad-based organic strength and contributions from the Q4 2025 acquisition, while GAAP net income declined sharply (-27%) due to acquisition-related costs—including cash payments for contingent considerations and elevated depreciation/amortization—alongside higher professional fees. Notably, Adjusted EBITDA grew 9% to $97.0 million with margin held steady at 39.1%, confirming pricing power and operational discipline despite inflationary and integration pressures. Adjusted EPS rose 3% to $0.90, supported by both modest Adjusted Net Income stability ($56.0M vs $56.3M) and active share repurchases reducing the denominator. The most consequential development was the April 30, 2026 close of the Dimensa acquisition—a strategic expansion into Brazil’s B2B fintech infrastructure—which directly catalyzed an upward revision of full-year 2026 guidance: revenue now projected at $1,073–$1,085 million (15.1–16.4% growth), up from 9.9–11.2%, and Adjusted EPS raised to $3.86–$3.98 (6.6–9.9% growth). Management explicitly linked the raise to Dimensa’s strategic value and regional momentum, particularly in Latin America where strong performance in Brazil and continued ATH Movil adoption underpinned growth. With $23.1 million returned to shareholders in Q1 and capital expenditures reaffirmed at ~$90 million for the year, EVERTEC is executing a dual mandate: integrating acquisitions to expand scale and capability while maintaining disciplined capital allocation. The forward-looking statements cautioning about risks—including reliance on Popular, foreign exchange volatility, AI regulation, and Puerto Rico concentration—underscore persistent structural exposures that investors must weigh against the company’s demonstrated ability to grow through targeted M&A and regional diversification.