$EVTC

EVERTEC, Inc.

CIK:0001559865|SEC Filings

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 274,820	$ 229,607	$ 522,743	$ 458,399
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization	124,241	110,060	242,486	224,669
Selling, general and administrative expenses	57,310	35,104	105,156	71,314
Depreciation and amortization	39,991	28,309	77,254	56,782
Total operating costs and expenses	221,542	173,473	424,896	352,765
Income from operations	53,278	56,134	97,847	105,634
Non-operating income (expenses)
Interest income	3,727	3,079	7,587	6,330
Interest expense	(20,264)	(16,719)	(37,621)	(33,707)
(Loss) gain on foreign currency remeasurement	(698)	1,348	(4,424)	515
(Losses) earnings from equity investees	(7,768)	867	(6,322)	2,944
Other (expenses) income, net	(1,124)	334	(937)	554
Total non-operating expenses	(26,127)	(11,091)	(41,717)	(23,364)
Income before income taxes	27,151	45,043	56,130	82,270
Income tax expense	20,274	4,070	24,506	8,206
Net income	6,877	40,973	31,624	74,064
Less: Net income attributable to non-controlling interest	1,472	508	2,468	896
Net income attributable to EVERTEC, Inc.’s common stockholders	5,405	40,465	29,156	73,168
Other comprehensive income (loss), net of tax of $740, and $(561), $1,758 and $(1,755)
Foreign currency translation adjustments	9,257	32,495	58,831	79,206
Gain (loss) on cash flow hedges	1,990	(2,160)	4,739	(6,152)
Unrealized gain on change in fair value of debt securities available-for-sale	21	2	17	10
Other comprehensive income, net of tax	11,268	30,337	63,587	73,064
Total comprehensive income attributable to EVERTEC, Inc.’s common stockholders	$ 16,673	$ 70,802	$ 92,743	$ 146,232
Net income per common share - basic attributable to EVERTEC, Inc.’s common stockholders (in usd per share)	$ 0.09	$ 0.63	$ 0.48	$ 1.15
Net income per common share - diluted attributable to EVERTEC, Inc.’s common stockholders (in usd per share)	$ 0.09	$ 0.62	$ 0.47	$ 1.13

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net income (loss)	$ 31,624,000	$ 74,064,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	77,254,000	56,782,000
Amortization of debt issue costs and accretion of discount	2,559,000	2,246,000
Operating lease amortization	2,957,000	3,522,000
Deferred tax benefit	(10,508,000)	(10,726,000)
Share-based compensation	15,736,000	14,548,000
Loss on impairment of investment in equity investee	8,910,000	0
Earnings of equity investees	(2,588,000)	(2,944,000)
Loss (gain) on foreign currency remeasurement	4,424,000	(515,000)
Other, net	3,010,000	(1,398,000)
(Increase) decrease in assets:
Accounts receivable, net	(18,696,000)	(15,616,000)
Prepaid expenses and other assets	(2,562,000)	(4,574,000)
Other long-term assets	(2,872,000)	2,783,000
(Decrease) increase in liabilities:
Accrued liabilities and accounts payable	2,805,000	(22,304,000)
Income tax payable	(9,905,000)	(3,531,000)
Contract liability	(4,446,000)	(6,862,000)
Operating lease liabilities	(4,384,000)	(3,788,000)
Other long-term liabilities	(2,627,000)	4,441,000
Total adjustments	59,067,000	12,064,000
Net cash provided by operating activities	90,691,000	86,128,000
Cash flows from investing activities
Additions to software and other intangible assets	(36,580,000)	(30,902,000)
Property and equipment acquired	(11,256,000)	(11,404,000)
Acquisition of available-for-sale debt securities	(928,000)	(561,000)
Payments for non-compete agreements	(431,000)	(662,000)
Proceeds from maturities of available-for-sale debt securities	0	1,000,000
Acquisitions, net of cash acquired	(179,757,000)	0
Other investing activities, net	3,000	(151,000)
Net cash used in investing activities	(228,949,000)	(42,680,000)
Cash flows from financing activities
Debt issuance costs	(1,276,000)	0
Acquisition of redeemable non-controlling interests	(23,098,000)	(5,167,000)
Withholding taxes paid on share-based compensation	(7,385,000)	(8,918,000)
Proceeds from issuance of long term debt	184,538,000	0
Net increase in Revolving Facility	25,000,000	0
Dividends paid to noncontrolling interest holders	(5,989,000)	(1,249,000)
Dividends paid	(6,119,000)	(6,383,000)
Repurchase of common stock	(67,049,000)	(3,691,000)
Repayment of long-term debt	(11,933,000)	(11,933,000)
Settlement activity, net	(2,498,000)	2,209,000
Other financing activities, net	(6,429,000)	(5,193,000)
Net cash provided by (used in) financing activities	77,762,000	(40,325,000)
Effect of foreign exchange rate on cash, cash equivalents and restricted cash	16,563,000	15,205,000
Net (decrease) increase in cash, cash equivalents, restricted cash and cash included in settlement assets	(43,933,000)	18,328,000
Cash, cash equivalents, restricted cash and cash included in settlement assets at the beginning of the period	348,129,000	314,649,000
Cash, cash equivalents, restricted cash, and cash included in settlement assets at end of the period	$ 304,196,000	$ 332,977,000

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 260,659	$ 305,993
Restricted cash	29,737	25,838
Accounts receivable, net	182,619	164,381
Settlement assets	28,072	26,098
Prepaid expenses and other assets	85,056	68,462
Total current assets	586,143	590,772
Debt securities available-for-sale, at fair value	4,236	3,202
Equity securities, at fair value	6,144	5,849
Investments in equity investees	18,452	30,120
Property and equipment, net	66,297	64,354
Operating lease right-of-use asset	36,584	38,218
Goodwill	1,070,494	891,992
Other intangible assets, net	610,782	553,082
Deferred tax asset	47,427	45,386
Derivative asset	1,990	0
Other long-term assets	31,069	20,321
Total assets	2,479,618	2,243,296
Current Liabilities:
Accrued liabilities	143,021	125,575
Accounts payable	58,094	63,726
Contract liability	32,770	26,573
Income tax payable	11,446	3,218
Current portion of long-term debt	29,834	23,867
Short-term borrowings	35,000	10,000
Current portion of operating lease liability	5,791	5,878
Settlement liabilities	28,343	26,202
Total current liabilities	344,299	285,039
Long-term debt	1,221,871	1,053,030
Deferred tax liability	79,884	71,356
Contract liability - long term	35,016	47,032
Operating lease liability - long-term	31,822	33,305
Derivative liability	843	5,225
Other long-term liabilities	46,804	34,317
Total liabilities	1,760,539	1,529,304
Commitments and contingencies (Note 15)
Redeemable non-controlling interests	74,171	89,155
Stockholders’ equity
Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued	0	0
Common stock, par value $0.01; 206,000,000 shares authorized; 59,752,542 shares issued and outstanding as of June 30, 2026 (December 31, 2025 - 61,756,639)	597	618
Additional paid-in capital	0	0
Accumulated earnings	643,969	687,696
Accumulated other comprehensive loss, net of tax	(3,121)	(66,708)
Total stockholders’ equity	641,445	621,606
Non-redeemable non-controlling interest	3,463	3,231
Total equity	644,908	624,837
Total liabilities and equity	$ 2,479,618	$ 2,243,296