EVERTEC, Inc. specializes in transaction processing services, with a strong presence throughout Latin America and the Caribbean. The company's operations are divided ...
EVERTEC, Inc. is a full-service payments and financial technology provider headquartered in San Juan, Puerto Rico. The company traces its operating heritage to 1988, when its principal operating business was organized in Puerto Rico. The public holding company was incorporated in 2012 and became publicly traded on the New York ...EVERTEC, Inc. is a full-service payments and financial technology provider headquartered in San Juan, Puerto Rico. The company traces its operating heritage to 1988, when its principal operating business was organized in Puerto Rico. The public holding company was incorporated in 2012 and became publicly traded on the New York Stock Exchange in 2013. EVERTEC serves customers throughout Puerto Rico, the Caribbean, and Latin America, with operations and commercial reach extending across multiple countries in the region.
The company’s business is organized around several complementary activities. Its merchant-acquiring business enables physical stores and online merchants to accept credit, debit, prepaid, and Electronic Benefit Transfer cards. EVERTEC supports the payment lifecycle, including transaction authorization, routing, settlement, reconciliation, reporting, and fraud monitoring. Its payment-services business also helps banks and other card issuers manage credit, debit, prepaid, ATM, and EBT programs. These capabilities allow financial institutions to outsource or enhance critical parts of their card and electronic-payment infrastructure.
A strategically important asset is the ATH network, which operates as both an ATM network and a PIN-debit network. ATH provides a recognizable domestic payments platform in Puerto Rico and supports connectivity among consumers, merchants, financial institutions, and ATMs. EVERTEC states that its electronic payment networks process approximately three billion transactions annually, giving the company scale and recurring transaction-based revenue characteristics.
Beyond payments, EVERTEC offers business process management and technology services. These include core banking processing, network hosting and management, IT consulting, business-process outsourcing, item and cash processing, and fulfillment services. Customers include banks, merchants, corporate enterprises, and public-sector organizations. The company primarily distributes its services through a direct sales force and long-term institutional and commercial relationships.
The provided trailing-twelve-month data indicates approximately $1.84 billion in market capitalization and an enterprise value of about $2.90 billion at the referenced market snapshot. EVERTEC reported a 43.4% gross margin, a 36.1% EBITDA margin, a 9.8% net profit margin, and approximately $411.6 million of free cash flow to equity. Its balance sheet includes meaningful leverage, with debt-to-equity of approximately 2.07 and net debt-to-EBITDA of about 2.96. Intangible assets represent a substantial portion of total assets, which is common for a technology and payments company with acquired platforms and software-related value. The company had approximately 5,327 full-time employees at the supplied reference date. Morgan "Mac" Schuessler Jr. has served as president and chief executive officer since 2015.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$931.8M
+10.2%
+10.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$141.6M
+25.7%
-77.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+49.7%
-4.4%
+8.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+20.0%
+2.1%
+7.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+15.2%
+14.1%
-79.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$135.5M
-21.1%
+731.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+14.5%
-28.4%
+650.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
181.8%
-11.1%
+21.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.07x
+9.6%
-13.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, thank you for standing by. My name is Elaine, and I will be your conference operator for today. At this time, I would like to welcome everyone to EVERTEC's second quarter 2026 earnings. [Operator Instructions] I will now turn the call over to Lily Arteaga.
Lily Arteaga: Thank you, and good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer, and Karla Cruz-Jusino, Chief Financial Officer. Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with the cautionary statements contained in our earnings release and the company's most recent periodic SEC report. During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as constant currency revenue, adjusted EBITDA, adjusted net income, and adjusted earnings per common share. Reconciliations to GAAP measures and certain additional information are also included in today's earnings release and related supplemental slides, which are available in the investor relations section of our company's website at www.evertecinc.com. I will now hand the call over to Mac.
Morgan Schuessler: Thanks, Lily, and good afternoon, everyone. Before we begin, I'd like to officially welcome Lily Arteaga to EVERTEC. For those of you who have not yet had the opportunity to connect with her, we're excited to have Lily leading our investor relations function and look forward to working with her as we continue to strengthen our engagement with investors and the analyst community. With that, let me turn to our second quarter performance. Our results reflect solid execution across the business and progress on our long-term strategy. Starting on slide 4, our priorities remain clear and consistent. We continue to strengthen EVERTEC's position as a leading financial technology and transaction processing company across Latin America and the Caribbean through a balanced approach of organic growth, strategic acquisitions, and disciplined capital allocation. We remain focused on deepening client relationships, expanding our capabilities, and increasing our presence in attractive markets across the region. The momentum we are seeing across the business, together with strategic investments and actions we have taken over the past several years, reinforces our confidence in our ability to deliver sustainable growth and long-term value for our shareholders. Before turning to our quarterly performance, I would like to address the cybersecurity incident we disclosed in June. We responded immediately, activated our incident response protocols, engaging external cybersecurity experts, and working closely with affected clients and authorities. Based on our response efforts and findings to date, we believe our incident response procedures operated as intended. Importantly, the incident did not disrupt our operations or our …