Evertec Inc
NYSE:EVTC
Evertec Inc
Evertec Inc., a dynamic player in the financial technology sector, has woven itself into the fabric of the Caribbean and Latin American markets with a business model rooted in critical infrastructure solutions. Headquartered in San Juan, Puerto Rico, Evertec acts as a digital backbone in the regions it serves, providing an array of transaction processing services that include merchant acquiring, payment processing, and business solutions. Its primary operation is spearheaded through its proprietary network, often likened to a comprehensive circulatory system of the region’s financial framework, facilitating electronic transactions with remarkable efficiency and security. Evertec's integrated technology platforms manage the complex dance of thousands of transactions daily, from banks to retailers and direct to customers, ensuring seamless monetary exchanges vital for any thriving economy.
Evertec's revenue model hones in on three major divisions: Merchant Acquiring, Payment Processing, and Business Solutions. By capturing a distinct slice of the payment processing pie, it charges fees based on transaction value engineered through its systems, creating a robust stream of recurring revenue. For example, its merchant acquiring services offer businesses the infrastructure needed to accept card payments, collecting fees per transaction. Meanwhile, its payment processing arm handles the backend work for banks and financial institutions, earning money from the service and processing fees. On the business solutions front, Evertec provides software and consulting services that cater to entities of all sizes, delivering custom-tailored access to vital payment channels. By positioning itself as an indispensable partner in financial operations, Evertec anchors its growth in meeting the increasingly digital needs of a cash-light economy.
Evertec Inc., a dynamic player in the financial technology sector, has woven itself into the fabric of the Caribbean and Latin American markets with a business model rooted in critical infrastructure solutions. Headquartered in San Juan, Puerto Rico, Evertec acts as a digital backbone in the regions it serves, providing an array of transaction processing services that include merchant acquiring, payment processing, and business solutions. Its primary operation is spearheaded through its proprietary network, often likened to a comprehensive circulatory system of the region’s financial framework, facilitating electronic transactions with remarkable efficiency and security. Evertec's integrated technology platforms manage the complex dance of thousands of transactions daily, from banks to retailers and direct to customers, ensuring seamless monetary exchanges vital for any thriving economy.
Evertec's revenue model hones in on three major divisions: Merchant Acquiring, Payment Processing, and Business Solutions. By capturing a distinct slice of the payment processing pie, it charges fees based on transaction value engineered through its systems, creating a robust stream of recurring revenue. For example, its merchant acquiring services offer businesses the infrastructure needed to accept card payments, collecting fees per transaction. Meanwhile, its payment processing arm handles the backend work for banks and financial institutions, earning money from the service and processing fees. On the business solutions front, Evertec provides software and consulting services that cater to entities of all sizes, delivering custom-tailored access to vital payment channels. By positioning itself as an indispensable partner in financial operations, Evertec anchors its growth in meeting the increasingly digital needs of a cash-light economy.
Strong Revenue Growth: Revenue rose 8% year-over-year to $228.6 million in Q3, exceeding internal expectations with growth across all segments.
Margin Trends: Adjusted EBITDA margin was 40.5%, down 80 basis points year-over-year but in line with guidance, reflecting known one-time effects.
Latin America Momentum: Latin America revenue jumped 19% year-over-year, driven by organic growth, acquisitions, and new client wins like Banco de Chile and Financiera Oh.
Cybersecurity Incident: A cyber incident in Brazil's PIX system was contained, with most funds recovered; no impact on other geographies or commercial pipeline.
Leadership Changes: Joaquin Castrillo promoted to COO and Karla Cruz-Jusino to CFO, highlighting strong internal talent and leadership continuity.
Guidance Raised: 2025 revenue guidance increased to $921–927 million (up 8.9–9.6%), and adjusted EPS growth guidance raised to 8.5–10.4%.
M&A Activity: Closed the Tecnobank acquisition in Brazil, expanding presence and creating cross-sell opportunities.
