Key Highlights

● Second-quarter revenue was $274.8 million, up 20%, or about 16% in constant currency.

● Adjusted EPS was $1.05, up 18%, while GAAP EPS was $0.09.

● Total debt was about $1,286.7 million at June 30.

● The board raised the repurchase authorization to $150 million through 2027.

Evertec (NYSE:EVTC), the Puerto Rico-based payments processor, raised its 2026 revenue and adjusted EPS outlook in August while total debt climbed by roughly $200 million over six months. The company's growth now leans increasingly on Latin America, which makes the segment mix and the funding of expansion central questions.

Latest Company Context

Second-quarter revenue was $274.8 million, up 20%, or about 16% in constant currency, with foreign exchange adding $9.1 million. Adjusted EBITDA rose 18% to $109.3 million, a 39.8% margin versus 40.3%. Adjusted EPS was $1.05, up 18%. GAAP net income attributable to common shareholders was $5.4 million, or $0.09 per diluted share, compared with $40.5 million, or $0.62, a year earlier, which the company attributed to impairment and cybersecurity costs, acquisition-related costs and higher taxes. Total debt was about $1,286.7 million at June 30, versus about $1,086.9 million at year-end 2025.

Key Business and Index Drivers

Segment revenue showed the weight of Latin America: Latin America Payments and Solutions generated $130.9 million, compared with $60.9 million for Payment Services in Puerto Rico and the Caribbean, $52.3 million for net Merchant Acquiring and $58.8 million for Business Solutions. Updated 2026 guidance calls for revenue of $1,085 million to $1,095 million, adjusted EPS of $3.94 to $4.04, an adjusted EBITDA margin of 39% to 40% and capital expenditures of about $90 million.

The company repurchased about 1.9 million shares for roughly $47.1 million in the quarter, and on July 31 the board raised the repurchase authorization to $150 million through December 31, 2027. New agreements with Transbank in Chile and Clip in Mexico were highlighted. The company has no confirmed index membership.

Approximately $184.5 million of debt issuance proceeds in the first half and a $25.0 million net revolver increase explain much of the borrowing rise, while the company says acquisition-related costs weighed on GAAP earnings. Guidance for adjusted EPS growth of about 8.8% to 11.7% is management's expectation, not a result.

What Investors Should Watch

The third-quarter report is the next scheduled disclosure, though its date is unconfirmed. Investors may monitor whether results stay on track for the revised ranges, whether the adjusted EBITDA margin holds in the 39% to 40% band despite a slight second-quarter dip, and how the Latin American segment's contribution evolves. The release did not state a leverage ratio, so further commentary on debt levels, interest costs and the use of the buyback authorization could matter. The gap between GAAP and adjusted earnings, and any further cybersecurity or acquisition costs, are also worth tracking.

Latin American Expansion and a Heavier Debt Load

Evertec's quarter combined strong top-line growth, higher guidance and an active buyback with a heavier debt load and much lower GAAP profit. The segment mix suggests expansion in Latin America is a key engine, while the Puerto Rico franchise remains a stable base. Currency moves and integration costs could affect results. Stable exchange rates and successful onboarding of new clients could support the raised ranges, while adverse currency moves, security incidents or higher interest costs might narrow them. The company's dividend and buyback activity indicate continued capital returns alongside investment.