EVERTEC Reports 20% Revenue Growth to $274.8 Million in Q2 2026

EVERTEC, Inc. reported significant financial results for the second quarter of 2026, with revenues reaching $274.8 million, a 20% increase from $229.6 million in the same quarter of the previous year. For the first half of 2026, total revenues amounted to $522.7 million, reflecting a 14% rise compared to $458.4 million in the first half of 2025. The growth was attributed to organic expansion across various segments, contributions from recent acquisitions, and favorable foreign currency fluctuations, particularly in Brazil. However, net income for the second quarter fell to $6.9 million, down from $41.0 million a year earlier, primarily due to increased operating costs and a higher effective tax rate.

Operating costs for the second quarter increased by 28% to $221.5 million, driven by higher personnel costs, professional fees related to acquisitions, and increased depreciation and amortization expenses. Selling, general, and administrative expenses surged by 63% to $57.3 million, reflecting costs associated with acquisitions and cybersecurity incident responses. The effective tax rate for the quarter was notably high at 74.7%, compared to 9.0% in the prior year, influenced by discrete tax items and a shift in the geographic mix of taxable income.

Strategically, EVERTEC has made significant acquisitions, including the purchase of Dimensa S.A. for approximately $199 million and Tecnobank Tecnologia Bancária S.A. for about $150 million. These acquisitions are expected to enhance the company's product offerings in Brazil and strengthen its position in the Latin American market. The company also reported a decrease in its customer concentration risk, with revenues from its largest customer, Popular, accounting for approximately 25% of total revenues in the first half of 2026, down from 31% in the previous year.

Operationally, EVERTEC continues to expand its footprint, processing over ten billion transactions annually across 26 countries. The company has also seen growth in its digital payment solutions, with increased transaction volumes in its ATH Movil platform. As of June 30, 2026, EVERTEC had cash and cash equivalents of $260.7 million, with a significant portion held in subsidiaries outside of Puerto Rico. The company anticipates that its existing cash flows and a $200 million revolving credit facility will be sufficient to meet its liquidity needs for the next twelve months.

Looking ahead, EVERTEC remains optimistic about its growth prospects, driven by the ongoing shift towards electronic payments in Latin America and the Caribbean. The company plans to leverage its diversified business model and recent acquisitions to capture additional market share and enhance its service offerings. However, it acknowledges potential risks, including economic fluctuations and regulatory changes, that could impact its operations and financial performance.