Key Highlights

  • 24% Revenue growth to USD 283.0 million lifted Evertec (NYSE:EVTC) in the third quarter, or about 21% in constant currency, from USD 228.6 million a year earlier.
  • USD 0.49 per diluted share was GAAP earnings, down from USD 0.51, while adjusted Earnings per share rose 16% to USD 1.07.
  • 39.0% was the adjusted EBITDA Margin on adjusted EBITDA of USD 110.5 million, compared with 40.5% a year earlier, as Latin America grew in weight.
  • USD 4.00 to USD 4.08 is the new 2026 adjusted Earnings Per Share outlook, with revenue now seen at USD 1,088 million to USD 1,096 million.

Acquisitions Drive a 24% Revenue Gain

Evertec (NYSE:EVTC) reported third quarter 2026 results on November 3, 2026. Revenue rose 24% to USD 283.0 million, helped by acquisitions completed this year and last, organic growth across most segments and favorable currency movements. Constant currency revenue was USD 277.0 million, up 21%. Latin America revenue grew, including a USD 6 million currency benefit. Payment Services rose on higher point-of-sale transactions and growth in ATH Movil, a mobile payment product, while merchant acquiring gained on higher sales volume. Business Solutions revenue fell, mainly because of a 10% discount to Popular that took effect in the fourth quarter of 2025. The company also completed the BBChain acquisition, adding blockchain, tokenization and digital asset infrastructure capabilities.

Why Adjusted Earnings Rose While GAAP Net Income Fell

GAAP net income attributable to common shareholders was USD 29.9 million, down from USD 32.9 million, a decline of about 9% (simple arithmetic). The company cited a USD 6 million net gain from Research and Development tax credits in the prior-year quarter with no equal gain this year, higher interest expense from higher rates and Debt tied to acquisitions, and a higher effective tax rate, partly from Latin American jurisdictions with higher statutory rates. Adjusted net income, a non-GAAP measure that excludes acquisition-related amortization and other items, rose USD 5.0 million to USD 64.8 million. Adjusted earnings per share of USD 1.07 also benefited from a lower share count after repurchases. Adjusted EBITDA rose 19%, but margin slipped as Latin America carries a different margin profile.

Buybacks, Outlook and the Margin Trade-Off

Evertec repurchased 500,946 shares at an average of USD 30.78 for USD 15.4 million in the quarter, and returned USD 18.4 million including dividends. On July 31, 2026 the board lifted the repurchase authorization to USD 150 million, with about USD 135 million left at September 30, 2026. The outlook now calls for revenue growth of about 16.7% to 17.6%, 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 is already weighing on Business Solutions, higher interest costs, tax rate pressure and integration of acquisitions. The mix shift toward lower-margin Latin America is a trade-off between growth and profitability.

Where Things Stand

Evertec (NYSE:EVTC) saw revenue jump 24% because acquisitions, organic growth and currency all contributed, while GAAP profit slipped on a missing tax Credit gain, higher interest costs and a higher tax rate. Adjusted measures tell a better story, with adjusted earnings per share up 16% and guidance raised, but they exclude items such as Acquisition amortization. About 21% growth in constant currency shows underlying momentum. Investors will likely watch margin dilution from Latin America, interest expense, the Popular discount and BBChain integration.