Key Highlights

  • Third-quarter Revenue at Evertec (NYSE:EVTC) rose 24% to USD 283.0 million, or about 21% in constant currency, from USD 228.6 million a year earlier.
  • GAAP Earnings per diluted share slipped to USD 0.49 from USD 0.51, while adjusted Earnings Per Share jumped 16% to USD 1.07.
  • Adjusted EBITDA reached USD 110.5 million, giving a 39.0% Margin against 40.5% a year earlier, as Latin America gained weight in the mix.
  • The new 2026 outlook calls for adjusted earnings per share of USD 4.00 to USD 4.08 and revenue of USD 1,088 million to USD 1,096 million.

Acquisitions and Currency Lift the Top Line

Evertec (NYSE:EVTC) released third quarter 2026 results on November 3, 2026. Revenue increased 24% to USD 283.0 million, helped by deals closed this year and last, broad organic gains and favorable currency movements. Revenue at constant currency reached USD 277.0 million, up 21%. Latin American revenue grew, including a USD 6 million currency tailwind. Payment Services gained from more point-of-sale activity and expansion of ATH Movil, a mobile payment product, while merchant acquiring benefited from higher sales volume. Business Solutions declined, largely because a 10% discount to Popular took hold in the fourth quarter of 2025. The company also completed its BBChain acquisition, adding blockchain, tokenization and digital asset infrastructure.

Why Adjusted Earnings Rose While GAAP Income Fell

GAAP Net Income for common shareholders was USD 29.9 million, down from USD 32.9 million, a fall of about 9% by simple arithmetic. The prior-year quarter held a USD 6 million net gain from Research and Development tax credits that did not recur. Interest expense rose with higher rates and acquisition-related debt, and the effective tax rate climbed, partly because of Latin American jurisdictions with higher statutory rates. Adjusted net income, a non-GAAP measure that strips out acquisition-related amortization and other items, grew USD 5.0 million to USD 64.8 million. Adjusted earnings per share of USD 1.07 also benefited from fewer shares after buybacks. Adjusted EBITDA rose 19%, yet the margin narrowed because Latin America carries a different margin profile.

Repurchases, a Revised Outlook and the Cost of Growth in Latin America

In the quarter, USD 15.4 million went to buying 500,946 shares at an average of USD 30.78, and total Shareholder payouts including dividends reached USD 18.4 million. On July 31, 2026 the board raised the repurchase authorization to USD 150 million, with about USD 135 million left at September 30, 2026. The outlook now points to revenue growth of about 16.7% to 17.6%, an adjusted EBITDA margin near 39.5%, capital expenditures near USD 95 million and an adjusted tax rate of 10% to 11%. Risks include the 10% discount granted to Popular, which already weighs on Business Solutions, higher interest costs, tax rate pressure and integrating acquisitions. Growth is tilting toward lower-margin Latin America, so expansion comes at a cost to profitability.

Where Things Stand

Evertec (NYSE:EVTC) grew revenue 24% thanks to acquisitions, organic expansion and currency, yet GAAP earnings dipped once a prior tax Credit gain, heavier interest and a higher tax rate are considered. Adjusted measures look better, with adjusted earnings per share up 16% and guidance raised, but they exclude items such as Acquisition amortization. About 21% growth in constant currency points to underlying momentum. Investors are likely to watch margin dilution from Latin America, interest expense, the Popular discount and the BBChain integration.