olivLaw · US equity research
EVERTEC, Inc. EVTC
Services-Computer Processing & Data Preparation · SIC 7374 · Vertical: Services-Computer Processing & Data Preparation (SIC 7374)
EVERTEC is a full-service transaction-processing and financial technology provider in Latin America, Puerto Rico and the Caribbean, offering merchant acquiring, payment services and banking solutions. In the second quarter of 2026 the company reported 20% revenue growth to 274.8 million USD and raised its full-year outlook, driven by organic growth and recent acquisitions.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, EVERTEC, Inc. (EVTC) stock was 34.73 USD (+11.10% on the day), with market capitalisation 2.1 bn USD, P/E 22.9 on diluted EPS of 1.52 USD over the last 12 months, dividend yield 0.58%, beta 0.74, 52-week range 22.34–34.73 USD. Latest reported quarter (Q3 2026): revenue of 283.0 m USD (+23.8% YoY), net income of 29.9 m USD (−9.1% YoY), diluted EPS 0.49 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 67.1
- strong (55–70)
- Bollinger (20, 2)
- 28.93 – 33.85
- above the upper band · %B 1.18 · band width 15.7%
- SMA 50 / 200
- 29.77 / 28.43
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.88 / 0.73
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +19.3% | −1.1% | +20.4 pp | — |
| 3 months | +10.9% | −0.5% | +11.4 pp | — |
| 6 months | +23.3% | +4.4% | +18.9 pp | — |
| Year to date | +19.4% | +12.3% | +7.1 pp | — |
| 1 year | +23.6% | +13.5% | +10.1 pp | −24.8% |
| 3 years | +2.8% | +76.4% | −73.6 pp | −26.9% |
| 5 years | −19.9% | +63.7% | −83.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 216.4 m | 228.8 m | 229.6 m | 228.6 m | 244.8 m | 247.9 m | 274.8 m | 283.0 m |
| SG&A | 37.6 m | 36.2 m | 35.1 m | 37.7 m | 45.2 m | 47.8 m | 57.3 m | 57.7 m |
| Operating income | 48.0 m | 49.5 m | 56.1 m | 37.7 m | 43.1 m | 44.6 m | 53.3 m | 50.6 m |
| Depreciation & amortisation | 5.4 m | 5.4 m | 5.5 m | 5.5 m | 5.8 m | 5.8 m | 6.1 m | 6.2 m |
| Interest expense | 17.4 m | 17.0 m | 16.7 m | 16.5 m | 18.0 m | 17.4 m | 20.3 m | 21.5 m |
| Pre-tax income | 42.4 m | 37.2 m | 45.0 m | 33.4 m | 38.7 m | 29.0 m | 27.2 m | 35.1 m |
| Income tax | 1.7 m | 4.1 m | 4.1 m | -31.0 k | 1.6 m | 4.2 m | 20.3 m | 3.6 m |
| Net income | 40.1 m | 32.7 m | 40.5 m | 32.9 m | 35.6 m | 23.8 m | 5.4 m | 29.9 m |
| Diluted EPS | 0.62 ≈ | 0.50 | 0.62 | 0.51 | 0.56 ≈ | 0.38 | 0.09 | 0.49 |
| Operating cash flow | 75.2 m | 37.6 m | 48.5 m ≈ | 70.9 m ≈ | 70.0 m | 31.2 m | 59.5 m ≈ | 85.6 m ≈ |
| Capex | 4.3 m | 6.4 m | 5.0 m ≈ | 5.6 m ≈ | 6.3 m | 6.3 m | 4.9 m ≈ | 6.4 m ≈ |
| Dividends paid | 3.2 m | 3.2 m | 3.2 m ≈ | 3.2 m ≈ | 3.2 m | 3.1 m | 3.0 m ≈ | 3.0 m ≈ |
| Share repurchases | 0 | 0 | 3.7 m ≈ | 0 ≈ | 65.6 m | 20.0 m | 47.0 m ≈ | 15.4 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 60 percentile of its own 40-quarter history (min 8.7, median 20.4, max 40.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 453.9 m | 487.4 m | 510.6 m | 589.8 m | 618.4 m | 694.7 m | 845.5 m | 931.8 m |
| Revenue YoY | +11.5% | +7.4% | +4.8% | +15.5% | +4.9% | +12.3% | +21.7% | +10.2% |
| Net income | 86.3 m | 103.5 m | 104.4 m | 161.1 m | 239.0 m | 79.7 m | 112.6 m | 141.6 m |
| Net income YoY | +56.7% | +19.9% | +0.9% | +54.3% | +48.3% | −66.6% | +41.3% | +25.7% |
| Diluted EPS | 1.16 | 1.41 | 1.43 | 2.21 | 3.45 | 1.21 | 1.73 | 2.20 |
| Diluted EPS YoY | +52.6% | +21.6% | +1.4% | +54.5% | +56.1% | −64.9% | +43.0% | +27.2% |
| net % | 19.0% | 21.2% | 20.5% | 27.3% | 38.6% | 11.5% | 13.3% | 15.2% |
| Free cash flow | 158.8 m | 156.9 m | 182.0 m | 203.3 m | 192.8 m | 189.8 m | 234.7 m | 203.7 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 306.0 m USD
- Financial debt
- 1.1 bn USD
- Net debt
- 757.0 m USD
- Equity
- 624.8 m USD
- Total assets
- 2.2 bn USD
- Debt / equity
- 1.70x
- Current ratio
- 2.07x
- ROE
- 25.7%
- ROA
- 6.9%
- FCF margin
- 21.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 510.6 m | 589.8 m | 618.4 m | 694.7 m | 845.5 m | 931.8 m | SEC (XBRL)· 02 Mar 2026verified |
| SG&A | 70.8 m | 68.0 m | 89.8 m | 128.2 m | 145.6 m | 154.2 m | SEC (XBRL)· 02 Mar 2026verified |
| Operating income | 141.4 m | 196.5 m | 157.4 m | 136.2 m | 165.7 m | 186.4 m | SEC (XBRL)· 02 Mar 2026verified |
| Depreciation & amortisation | 17.4 m | 17.4 m | 18.5 m | 21.6 m | 22.3 m | 22.3 m | SEC (XBRL)· 02 Mar 2026verified |
| EBITDA | 158.8 m ≈ | 213.9 m ≈ | 175.9 m ≈ | 157.8 m ≈ | 188.0 m ≈ | 208.7 m ≈ | SEC (XBRL)· 02 Mar 2026derived |
| Interest expense | 25.1 m | 22.8 m | 24.8 m | 32.3 m | 74.7 m | 68.3 m | SEC (XBRL)· 02 Mar 2026verified |
| Pre-tax income | 123.9 m | 181.7 m | 267.9 m | 85.4 m | 119.6 m | 154.4 m | SEC (XBRL)· 02 Mar 2026verified |
| Income tax | 19.0 m | 20.6 m | 29.0 m | 5.5 m | 4.8 m | 9.8 m | SEC (XBRL)· 02 Mar 2026verified |
| Net income | 104.4 m | 161.1 m | 239.0 m | 79.7 m | 112.6 m | 141.6 m | SEC (XBRL)· 02 Mar 2026verified |
| Diluted EPS | 1.43 | 2.21 | 3.45 | 1.21 | 1.73 | 2.20 | SEC (XBRL)· 02 Mar 2026verified |
| Weighted average diluted shares | 73.1 m | 72.9 m | 69.3 m | 65.8 m | 65.1 m | 64.4 m | SEC (XBRL)· 02 Mar 2026verified |
| Dividend per share | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | SEC (XBRL)· 02 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 202.6 m | 257.9 m | 185.3 m | 295.6 m | 273.6 m | 306.0 m | SEC (XBRL)· 02 Mar 2026verified |
| Receivables | 95.7 m | 113.3 m | 111.5 m | 126.5 m | 137.5 m | 164.4 m | SEC (XBRL)· 02 Mar 2026verified |
| Current assets | 359.0 m | 436.4 m | 389.1 m | 561.4 m | 529.1 m | 590.8 m | SEC (XBRL)· 02 Mar 2026verified |
| Property, plant & equipment, net | 43.5 m | 48.5 m | 56.4 m | 62.5 m | 62.1 m | 64.4 m | SEC (XBRL)· 02 Mar 2026verified |
| Goodwill | 397.7 m | 393.3 m | 423.4 m | 791.7 m | 726.9 m | 892.0 m | SEC (XBRL)· 02 Mar 2026verified |
| Intangibles (excl. goodwill) | 219.9 m | 213.3 m | 200.3 m | 518.1 m | 430.9 m | 553.1 m | SEC (XBRL)· 02 Mar 2026verified |
| Total assets | 1.1 bn | 1.1 bn | 1.1 bn | 2.1 bn | 1.9 bn | 2.2 bn | SEC (XBRL)· 02 Mar 2026verified |
| Accounts payable | 43.3 m | 28.5 m | 29.7 m | 66.5 m | 58.7 m | 63.7 m | SEC (XBRL)· 02 Mar 2026verified |
| Short-term debt | 14.3 m | 0 | 20.0 m | 0 | 0 | 10.0 m | SEC (XBRL)· 02 Mar 2026verified |
| Long-term debt | 481.0 m | 444.8 m | 389.5 m | 946.8 m | 925.1 m | 1.1 bn | SEC (XBRL)· 02 Mar 2026verified |
| Current liabilities | 153.0 m | 152.9 m | 208.4 m | 298.3 m | 279.7 m | 285.0 m | SEC (XBRL)· 02 Mar 2026verified |
| Total liabilities | 730.2 m | 674.5 m | 657.0 m | 1.4 bn | 1.3 bn | 1.5 bn | SEC (XBRL)· 02 Mar 2026verified |
| Equity | 342.4 m | 470.3 m | 474.7 m | 598.4 m | 475.8 m | 624.8 m | SEC (XBRL)· 02 Mar 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 199.1 m | 228.4 m | 219.9 m | 211.2 m | 260.1 m | 227.0 m | SEC (XBRL)· 02 Mar 2026verified |
| Capex | 17.1 m | 25.1 m | 27.1 m | 21.4 m | 25.4 m | 23.3 m | SEC (XBRL)· 02 Mar 2026verified |
| Free cash flow | 182.0 m ≈ | 203.3 m ≈ | 192.8 m ≈ | 189.8 m ≈ | 234.7 m ≈ | 203.7 m ≈ | SEC (XBRL)· 02 Mar 2026derived |
| Investing cash flow | -48.6 m | -83.8 m | -133.3 m | -507.9 m | -118.3 m | -238.2 m | SEC (XBRL)· 02 Mar 2026verified |
| Financing cash flow | -62.6 m | -81.3 m | -153.3 m | 416.4 m | -152.6 m | 28.4 m | SEC (XBRL)· 02 Mar 2026verified |
| Dividends paid | 14.4 m | 14.4 m | 13.8 m | 13.0 m | 12.9 m | 12.8 m | SEC (XBRL)· 02 Mar 2026verified |
| Share repurchases | 7.3 m | 24.4 m | 96.6 m | 36.1 m | 82.3 m | 69.3 m | SEC (XBRL)· 02 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 64 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation64
- Returns100
- Quality87
- Balance sheet33
- Growth58
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.00 – 161.91 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)82.95 – 161.91 (Mid 110.72)WACC 7.5% · starting FCFF 281.9 m USD · terminal value share of EV 80%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -22.6%
- Peers: EV/Sales0.00 – 29.95 (Mid 8.43)11 companies used · median multiple 1.4x · quartiles 0.8x – 2.6xADP, CARS, CLVT, EGHT, FA, GMHS, IBEX, OOMA, PLTK, UPWK, WDAY
- Peers: EV/EBITDA8.93 – 34.39 (Mid 17.49)8 companies used · median multiple 9.3x · quartiles 6.9x – 13.9xCARS, CLVT, EGHT, FA, GMHS, IBEX, UPWK, VRSK
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 64/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | unavailable | unavailable | — |
| EBIT margin · Quality | 18.2% | 89 (vs peers) | 10% |
| FCF margin · Quality | 21.2% | 85 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 14.6% | 59 (on a fixed band) | 19% |
| Revenue growth (YoY) · Growth | 10.2% | 56 (vs peers) | 10% |
| Net debt / EBITDA · Balance sheet | 4.5x | 15 (vs peers) | 7% |
| Current ratio · Balance sheet | 1.7x | 51 (on a fixed band) | 7% |
| EV/Sales · Valuation | 2.9x | 38 (vs peers) | 19% |
| FCF yield · Valuation | 10.8% | 100 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 7.8% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet33/100 · 2/2 factors with a value
- Growth58/100 · 2/2 factors with a value
- Quality87/100 · 2/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation64/100 · 2/2 factors with a value
Memo
EVERTEC, Inc. (EVTC). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 931.8 m USD in 2025; YoY growth 10.2%; net margin 9.0%; ROE 14.4%; net debt/EBITDA 4.5x.
The estimated value range is 8.93–34.39 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 17.49 USD, the price of 34.73 USD leaves a potential of -49.7% (value / price − 1) and a margin of safety of -98.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 64/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 18.2%
- FCF margin: 21.2%
- FCF yield: 10.8%
- Shareholder yield (distributions): 7.8%
What contradicts it
- Net debt / EBITDA: 4.5x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Gross margin.
Versus the vertical median
Services-Computer Processing & Data Preparation (SIC 7374) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ADPAutomatic Data Processing, Inc. | 119.8 bn | 27.7 | 77.0% | 20.1% | +6.7% | +19% / +32% |
| WDAYWorkday, Inc. | 44.4 bn | 40.9 | 16.0% | 12.3% | +13.1% | −6% / −25% |
| VRSKVerisk Analytics, Inc. | 25.9 bn | 30.1 | — | 29.3% | +6.6% | −12% / −18% |
| FIRYFiry Inc. | 4.3 bn | — | -63.0% | -60.2% | +12.5% | +107% / +94% |
| FAFirst Advantage Corp | 3.9 bn | 160.5 | 1.9% | 1.5% | +83.0% | +62% / +45% |
| FIVNFive9, Inc. | 2.7 bn | 52.7 | 7.9% | 4.9% | +10.3% | +86% / −52% |
| RAMPLiveRamp Holdings, Inc. | 2.3 bn | 15.8 | 16.2% | 18.7% | +9.0% | +41% / +39% |
| EVTCEVERTEC, Inc. | 2.1 bn | 22.9 | 14.4% | 9.0% | +10.2% | +24% / +3% |
| INFQInfleqtion, Inc. | 1.9 bn | — | -70.8% | — | unavailable | unavailable / unavailable |
| INODInnodata Inc | 1.5 bn | 32.8 | 37.7% | 14.7% | +47.6% | −25% / +541% |
| CLVTClarivate PLC | 1.4 bn | — | -8.2% | -15.1% | −4.0% | −44% / −73% |
| UPWKUpwork Inc. | 1.3 bn | 12.9 | 16.3% | 13.5% | +2.4% | −48% / −27% |
| LZLegalZoom.com, Inc. | 1.1 bn | 56.0 | 12.1% | 2.6% | +10.9% | −26% / −40% |
| PLTKPlaytika Holding Corp. | 808.6 m | — | — | -9.9% | +8.1% | −48% / −76% |
| NRDSNerdWallet, Inc. | 754.4 m | 13.3 | 18.2% | 7.6% | +21.7% | −21% / +1% |
| NXTTNext Technology Holding Inc. | 736.5 m | — | -59.4% | -2,356.0% | +545.3% | −99% / −100% |
| CARSCars.com Inc. | 682.5 m | 22.4 | 7.4% | 4.7% | +0.6% | +10% / −32% |
| IBEXIBEX Limited | 593.6 m | 14.3 | 30.4% | 7.2% | +15.4% | +27% / +152% |
| OOMAOoma, Inc. | 524.7 m | 49.8 | 11.7% | 3.6% | +6.5% | +69% / +64% |
| GRVYGravity Co., Ltd. | 475.7 m | 0.0 | 16.5% | 17.0% | −31.0% | +19% / −6% |
| EGHT8x8, Inc. | 326.4 m | 55.5 | 3.5% | 0.6% | +2.9% | +16% / −27% |
| TCXTucows Inc | 140.3 m | — | — | -21.2% | +7.7% | −42% / −41% |
| TRAKRepositrak, Inc. | 132.7 m | 18.7 | 14.9% | 32.5% | +3.0% | −46% / −29% |
| BIRDSmartbird, Inc. | 92.1 m | — | -164.0% | -72.8% | −19.7% | −68% / −91% |
| VERIVeritone, Inc. | 56.7 m | — | -517.7% | -117.5% | −0.5% | −87% / −73% |
1- and 3-year price returns: for EVTC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 23.77 Total return -31% · Per year -31% | 41.85 Total return 21% · Per year 21% | 62.78 Total return 82% · Per year 82% |
| 3 years | 28.02 Total return -18% · Per year -6% | 55.00 Total return 61% · Per year 17% | 89.86 Total return 162% · Per year 38% |
| 5 years | 33.02 Total return -2% · Per year -0% | 72.29 Total return 113% · Per year 16% | 128.64 Total return 277% · Per year 30% |
- Exit P/E± 13.75
- Net margin± 9.62
- Annual revenue growth± 7.20
- Annual dilution± 0.81
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).
In brief
EVERTEC is a full-service transaction-processing and financial technology provider in Latin America, Puerto Rico and the Caribbean, offering merchant acquiring, payment services and banking solutions. In the second quarter of 2026 the company reported 20% revenue growth to 274.8 million USD and raised its full-year outlook, driven by organic growth and recent acquisitions 3.
SWOT
Strengths
- The company owns the ATH network and holds a leading position in payment processing in the region, giving it brand recognition and client access 1.
- Revenue is largely recurring, and multi-year contracts provide a predictable base 1.
- The integrated end-to-end technology platform, in which the company has invested heavily over recent years, lets it serve new clients at low incremental cost 1.
Weaknesses
- Dependence on one major client is a risk, and price reductions granted to that client have already weighed on business solutions revenue 13.
- GAAP results in the second quarter of 2026 fell sharply, reflecting impairments, integration costs and cybersecurity incident response costs 3.
- Recent acquisitions increased debt and interest expense, making the company more sensitive to financing conditions 3.
Opportunities
- Low penetration of electronic payments in Latin America could drive further growth if digitisation continues 1.
- Agreements with Transbank and Clip could open new markets in Chile and Mexico through partnerships 3.
- Outsourcing of legacy banking systems at small and mid-sized banks could bring new contracts for the company's solutions 1.
Threats
- A breach of the Popular contract, or a reduction in the services it receives, could materially affect revenue 1.
- Currency swings and economic instability in the region could reduce consumer spending and financial results 1.
- Increasingly sophisticated cyberattacks pose a risk to the company's systems and data, and a major incident could carry financial and reputational costs 13.
Risks
- Dependence on Banco Popularhigh
Banco Popular accounts for a substantial share of revenue, and a contract that is not renewed or is renewed on less favourable terms could significantly reduce results 1.
- Cybersecurity incidenthigh
The company incurred costs for responding to a security incident in the second quarter of 2026, and cyber risks could continue to affect systems and reputation 3.
- Refinancing risk after acquisitionsmedium
Higher debt and interest expense after recent acquisitions could limit financial flexibility if financing conditions worsen 3.
- Currency and macroeconomic exposuremedium
Results are affected by exchange rates and economic conditions in the countries where the company operates, and changes could reduce consumption or reported revenue 13.
- Integration of acquisitionslow
Integrating acquired companies, including Dimensa, involves costs and could delay the expected benefits 3.
Investment thesis
What would need to be true (bull case)
- If the digitisation of payments in Latin America continues, transaction volumes on the ATH network and the company's platforms could grow over the coming years 1.
- The 2026 revenue outlook was raised in the second quarter, suggesting organic growth and acquisitions could support results 3.
- The recurring revenue model and high adjusted EBITDA margins could allow the company to fund growth and share repurchase programmes 3.
What would break the thesis
- Dependence on a single major client remains high, and any change in the Banco Popular relationship could significantly reduce revenue 1.
- GAAP results in the second quarter of 2026 were much weaker than a year earlier, with impairments, integration costs and a security incident 3.
- Higher debt after acquisitions and higher interest costs could limit flexibility if operating results decline 3.
What to watch
- Revenue trend from the Banco Popular relationship and the terms of the contract renewal2027
- Effect of the Transbank and Clip agreements on Latin American revenueQ3 2026
- Adjusted EBITDA margin and integration costs after acquisitionsQ3 2026
- Effect of the cybersecurity incident on costs and clientsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).
The business
EVERTEC describes itself as one of the largest transaction processors in the region, processing over ten billion transactions annually through electronic payment networks in Puerto Rico and Latin America 1. It owns and operates the ATH network, which it says is one of the leading debit networks in Latin America 1. Its services cover both front-end acceptance at point-of-sale and e-commerce and back-end clearing and settlement for card issuers 1.
The business model rests on predominantly recurring revenue from mission-critical services and multi-year contracts, which the company says allows growth without significant additional capital expenditure 1. It operates in 26 countries through 24 offices and has expanded through acquisitions, including Tecnobank in Brazil, completed in October 2025 1.
Customer concentration is significant: about 29% of fiscal 2025 revenue came from the relationship with Banco Popular, the company's most important contract 1. This makes the Popular relationship central both to revenue stability and to risk assessment.
Segments
Merchant acquiring and payment services
This segment lets merchants, both in stores and online, accept debit, credit, prepaid and EBT cards, through POS terminals and the PlacetoPay online gateway 1. Higher sales volume and non-transactional revenue supported results in the second quarter of 2026 3.
Payments in Puerto Rico and the Caribbean
In Puerto Rico and the Caribbean the company provides issuer payment processing, core banking, cash processing and the ATH network 1. In the second quarter of 2026 revenue benefited from more POS transactions and growth in ATH Movil, along with a non-recurring volume-based benefit 3.
Business solutions and Latin America
Business solutions include core bank processing, IT outsourcing and cash management, and in Latin America the company offers banking technology through Sinqia 13. Latin American revenue rose in the second quarter of 2026 on recent acquisitions and organic growth, while business solutions revenue fell because of the 10% discount granted to Popular 3.
Market context
EVERTEC operates in Latin American electronic payments, where penetration is much lower than in the United States and the unbanked population is shrinking, which could support further growth 1. The company cites a projected five-year compound growth rate of 17.4% for the region's payments market 1.
The market is also supported by banks and government outsourcing their technology, especially smaller and mid-sized institutions with legacy systems that are hard to update 1. Digital payment methods such as QR codes and e-wallets continue to replace cash, creating opportunities for the company's platform 1.
Trends
- Shift from cash to digital paymentstailwind
Consumers increasingly prefer cashless and contactless payments, and the company has expanded solutions such as PlacetoPay, ATH Movil and integration with Brazil's Pix instant payment system 1. If this trend continues, transaction volumes on the company's platforms could keep rising 1.
- Outsourcing of banking technologytailwind
Financial institutions in the region run costly legacy systems that are hard to maintain, and outsourcing them to specialised providers is an opportunity for EVERTEC 1. Demand could grow especially among small and mid-sized banks 1.
- Macroeconomic and currency conditionsmixed
Results depend on economic conditions in the regions where the company operates, and rising rates, inflation, currency swings and trade barriers could weigh on consumer spending 1. In the second quarter of 2026 a favourable exchange-rate effect, mainly in Brazil, helped reported revenue 3.
- Reliance on a single major clientheadwind
The relationship with Banco Popular represents a significant share of revenue, and in the second quarter of 2026 a discount granted to Popular reduced business solutions revenue 13. If the relationship changes at contract renewal, the effect could be negative 1.
Competitive position
The company competes with payment providers that cover only one part of the processing chain, such as merchant acquiring alone or payment services alone, though EVERTEC argues its integrated offering is an advantage 1. Locally, competition also comes from regional networks and processors, and the company relies on its knowledge of the markets and its bank relationships 1.
In Brazil and Mexico, competition comes from banking and payments technology vendors, and recent agreements with Transbank in Chile and Clip in Mexico show EVERTEC extending its reach through partnerships 3. The outcome of this competition could depend on the company's ability to hold prices and clients 1.
- Transbank
Chilean payment processor with which EVERTEC signed a strategic agreement in 2026 3.
- Clip
Mexican payments provider that partners with the company under a 2026 agreement and could also compete in the merchant segment 3.
- Regional Latin American payment networks
Debit networks and processors competing for issuers and merchants in the region 1.
- Banking technology vendors in Brazil
Firms offering banking software and outsourcing, where EVERTEC is expanding through acquisitions 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report04 Nov 2026
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Current report29 Oct 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report04 Aug 2026Results of operations · Other events · Financial statements and exhibits
- Current report23 Jul 2026Regulation FD disclosure · Financial statements and exhibits
- Current report09 Jun 2026Other events · Financial statements and exhibits
- Current report21 May 2026Shareholder vote
- Current report20 May 2026Material agreement · Financial statements and exhibits
- Quarterly report07 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / EVERTEC, Inc. · 02 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / EVERTEC, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / EVERTEC, Inc. · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.