Evertec Ups Share Repurchase Authorization and Forecasts Double-Digit Revenue Growth for 2026

Strong Revenue Momentum Continues, With Up to 11% More Growth Projected

Evertec, Inc. (NYSE: EVTC) wrapped up 2025 with robust financials, increasing full-year revenue by 10.2% to $931.82 million and setting the stage for further expansion by announcing a new share repurchase authorization of $150 million. The company's 2026 outlook projects up to 11.2% revenue growth, reflecting ongoing investments, successful acquisitions, and strong demand across its core regions in Latin America, Puerto Rico, and the Caribbean.

2025 Financials Show Broad-Based Strength Despite Acquisition Costs

Key results for the fourth quarter and full year 2025 underscore Evertec's ability to generate solid performance while integrating new businesses:

While fourth quarter GAAP net income fell 11.2% year-over-year due to increased depreciation and amortization tied to acquisitions and higher operational costs, adjusted EBITDA and earnings per share improved. Full-year adjusted EPS rose to $3.62, up 10.4% from 2024, illustrating the underlying business strength after adjusting for non-core items.

Merchant Acquiring and Latin America Payments Drive Segment Growth

Evertec's geographic and product diversification played a major role in the year's success. Merchant acquiring and the Latin America Payments and Solutions divisions led segment revenue gains, buoyed by higher sales volume, new customer wins, and integration of acquired businesses like Tecnobank. The Payments Puerto Rico & Caribbean division delivered stable growth thanks to the expansion of ATH Movil and POS transactions, offsetting a slight dip in Business Solutions tied to a mandated discount for a key client (Popular).

Capital Deployment: Increased Buyback Program and Cash Generation

Evertec returned $82.1 million to shareholders in 2025 through dividends and the repurchase of 2.33 million shares at an average price of $29.73. The newly announced $150 million buyback authorization and extension of the program until 2027 reinforce management's confidence in future cash flows and long-term value creation.

Operating cash generation remains strong, at $227 million for 2025, funding strategic acquisitions (totaling $144.45 million in outflows last year) and ongoing investments in software and technology upgrades. The company continues to maintain a healthy balance sheet, with year-end cash and equivalents at $305.99 million and total assets of $2.24 billion.

2026 Outlook: Revenue Expected to Reach $1 Billion, with Higher Adjusted EPS

Management forecasts 2026 consolidated revenue between $1,024 million and $1,036 million—representing 9.9% to 11.2% growth. Adjusted EPS is expected to come in between $3.84 and $3.96 (up from $3.62 in 2025), representing a 6.1% to 9.4% improvement. Capital expenditures are projected at $90 million, with the adjusted effective tax rate to remain low at 11% to 12%.

Key Takeaway: Expanding Platform, Shareholder Focus, and Upbeat Guidance Shape the Path Forward

Evertec's 2025 results signal healthy core business execution, with an eye toward ongoing investment and further operational leverage, particularly in Latin America. The substantial buyback authorization, double-digit revenue guidance, and expanding footprint position the company as a growth name to watch in payments and fintech for 2026. Investors and analysts should closely follow Evertec’s margin progression and the integration of recent acquisitions as management targets further shareholder returns and international scale.

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