EVERTEC Reports 8% Revenue Growth to $229.6 Million in Q2 2025

EVERTEC, Inc. reported a notable increase in financial performance for the second quarter of 2025, with revenues reaching $229.6 million, an 8% rise from $212.0 million in the same period last year. For the first half of 2025, total revenues amounted to $458.4 million, marking a 10% increase compared to $417.3 million in the prior year. The growth was attributed to organic expansion across all business segments and contributions from recent acquisitions, particularly in the merchant acquiring and payment services sectors. The company’s net income for the second quarter was $40.5 million, up from $31.9 million in the previous year, resulting in a diluted earnings per share of $0.62, compared to $0.49 in the same quarter of 2024.

Operating costs for the second quarter increased to $173.5 million, up from $168.6 million a year earlier, primarily due to higher costs associated with cloud services, sales, and personnel expenses linked to acquisitions. However, selling, general, and administrative expenses decreased by 8% to $35.1 million, reflecting lower professional fees. The company also reported a decrease in depreciation and amortization expenses, which fell to $28.3 million from $32.9 million, as certain intangible assets became fully amortized.

In terms of strategic developments, EVERTEC completed two acquisitions in late 2024, acquiring Grandata, a data analytics firm, and Nubity, a cloud services provider. These acquisitions are expected to enhance the company's product offerings and expand its market presence in Latin America. The company continues to leverage its relationship with Popular, Inc., which accounted for approximately 31% of its revenues in the first half of 2025, consistent with the previous year.

Operationally, EVERTEC reported a total of 64 million shares outstanding as of June 30, 2025, with a slight increase in employee headcount due to recent acquisitions. The company also noted a significant increase in transaction volumes, particularly in its digital payment solutions, which are gaining traction in the Latin American market. The company’s cash and cash equivalents stood at $290.6 million, with a significant portion held in subsidiaries outside Puerto Rico, indicating a strong liquidity position.

Looking ahead, EVERTEC anticipates continued growth driven by the ongoing shift towards electronic payments in Latin America and the Caribbean. The company plans to invest in expanding its digital payment solutions and enhancing its service offerings to capture a larger market share. However, it remains cautious of potential economic challenges, including inflation and foreign currency fluctuations, which could impact consumer spending and overall financial performance. The company has also declared a quarterly cash dividend of $0.05 per share, reflecting its commitment to returning value to shareholders while maintaining a focus on growth and operational efficiency.