EVERTEC Reports 8% Revenue Growth to $247.9 Million in Q1 2026

EVERTEC, Inc. reported its financial results for the first quarter of 2026, revealing a revenue increase of 8% to $247.9 million, up from $228.8 million in the same period last year. The growth was attributed to organic expansion across all business segments and contributions from the Tecnobank acquisition completed in late 2025. However, net income decreased to $24.7 million, or $0.38 per diluted share, compared to $33.1 million, or $0.50 per diluted share, in the prior year. The decline in profitability was primarily driven by increased operating costs, including a 32% rise in selling, general, and administrative expenses, which reached $47.8 million.

The company's operating costs for the quarter totaled $203.4 million, reflecting a 13% increase from $179.3 million in the previous year. This rise was largely due to higher personnel costs and cloud expenses, as well as increased depreciation and amortization expenses, which surged by 31% to $37.3 million. Despite the revenue growth, the company's income from operations fell by 10% to $44.6 million, down from $49.5 million in the same quarter of 2025.

In terms of strategic developments, EVERTEC completed the acquisition of Tecnobank, a Brazilian fintech vendor, which is expected to enhance its product offerings in the digital vehicle financing sector. The company also reported a significant increase in its customer base, with transaction volumes benefiting from the continued strength of its ATH Movil platform. The company’s revenue concentration with its largest customer, Popular, decreased to approximately 26% from 31% in the previous year, indicating a diversification of its revenue sources.

Operationally, EVERTEC's segments showed varied performance. The Payment Services - Puerto Rico & Caribbean segment generated $58.4 million in revenue, up from $55.2 million, while the Latin America Payments and Solutions segment saw a substantial increase to $110.3 million from $83.8 million, bolstered by the Tecnobank acquisition. Conversely, the Business Solutions segment experienced a decline in revenue to $59.5 million, primarily due to a 10% discount to Popular that took effect in late 2025.

Looking ahead, EVERTEC remains optimistic about its growth trajectory, driven by the ongoing shift towards electronic payments in Latin America and the Caribbean. The company plans to leverage its diversified business model and expand its service offerings to capture additional market share. However, it also acknowledges potential risks, including economic fluctuations and the impact of rising interest rates on its financial performance. The company expects to continue generating sufficient cash flows to meet its liquidity needs and maintain its dividend policy, having declared a quarterly cash dividend of $0.05 per share for the upcoming quarter.