EVERTEC Reports $228.8 Million Revenue in Q1 2025, 11% Year-Over-Year Growth

EVERTEC, Inc. reported a total revenue of $228.8 million for the first quarter of 2025, marking an 11% increase from $205.3 million in the same period last year. This growth was attributed to organic expansion across all business segments and contributions from recent acquisitions, including Grandata and Nubity, which were finalized in late 2024. The company’s net income for the quarter was $33.1 million, or $0.50 per diluted share, compared to $16.4 million, or $0.24 per diluted share, in the prior year, reflecting a significant improvement in profitability.

Operating costs for the quarter rose to $179.3 million, up from $172.5 million in the previous year, primarily due to increased costs associated with hardware and software sales, personnel expenses from acquisitions, and higher professional fees. Notably, depreciation and amortization expenses decreased by 17% to $28.5 million, as certain intangible assets became fully amortized. The company’s adjusted EBITDA for the quarter was $89.4 million, compared to $78.2 million in the prior year, indicating a strong operational performance.

In terms of strategic developments, EVERTEC completed two acquisitions in late 2024: Grandata, a data analytics firm focused on credit risk insights, and Nubity, a cloud services provider. The total purchase price for Grandata was $33.3 million, while Nubity was acquired for $11 million. These acquisitions are expected to enhance EVERTEC's product offerings and expand its market presence in Latin America. The company also reported a customer concentration risk, with approximately 31% of its revenues derived from its largest customer, Popular, consistent with the previous year.

Operationally, EVERTEC continues to expand its footprint in the Latin American market, serving 26 countries and processing over ten billion transactions annually. The company reported a slight increase in its employee headcount due to the acquisitions, which is expected to support its growth strategy. As of March 31, 2025, EVERTEC had cash and cash equivalents of $265.9 million, with a significant portion held in foreign subsidiaries for operational needs and potential investments.

Looking ahead, EVERTEC anticipates continued growth driven by the ongoing shift from cash to electronic payments in its markets. The company is well-positioned to capitalize on this trend, supported by its diversified service offerings and strategic acquisitions. The management remains optimistic about future performance, although it acknowledges potential risks from economic fluctuations and market conditions. The Board of Directors has declared a quarterly cash dividend of $0.05 per share, reflecting the company's commitment to returning value to shareholders while maintaining a strong liquidity position.