Loading...
•
Sep 30, 2025
EVERTEC Q3 2025 Earnings Report
EVERTEC reported strong third quarter 2025 results, with significant revenue and net income growth, and raised its full-year outlook.
Key Takeaways
EVERTEC delivered a robust third quarter in 2025, with an 8% increase in revenue to $228.6 million and a 33% surge in GAAP Net Income attributable to common shareholders to $32.9 million. The company also saw a 6% rise in Adjusted EBITDA to $92.6 million and a 7% increase in Adjusted earnings per common share to $0.92. This strong performance was driven by organic growth across all segments and contributions from recent acquisitions, leading the company to raise its full-year financial outlook.
Revenue increased by 8% to $228.6 million, demonstrating strong organic growth across all segments and contributions from recent acquisitions.
GAAP Net Income attributable to common shareholders rose by 33% to $32.9 million, or $0.51 per diluted share, primarily due to higher revenues, lower depreciation and amortization, reduced interest expense, and a gain on the sale of tax credits.
Adjusted EBITDA grew by 6% to $92.6 million, although the Adjusted EBITDA margin slightly decreased to 40.5% from 41.3% in the prior year.
Adjusted earnings per common share increased by 7% to $0.92, driven by higher Adjusted EBITDA and lower cash interest expense, leading to a raised full-year outlook.
Revenue by Segment
Forward Guidance
EVERTEC has raised its full-year 2025 financial outlook, expecting higher revenue and adjusted earnings per common share than previously anticipated.
Positive Outlook
- Revenue is now expected to be between $921 million and $927 million, representing growth of approximately 8.9% to 9.6%, an increase from the previous expectation of 6.6% to 7.6%.
- Constant currency revenue growth is now expected to be between 10.0% to 11.0%.
- Adjusted earnings per common share is now expected to be between $3.56 to $3.62, representing growth of approximately 8.5% to 10.4%, an increase from the previous expectation of 4.8% to 7.0%.
- On a constant currency basis, Adjusted EPS growth is expected to be between 9.6% to 11.6%.
- Capital expenditures are still expected to be approximately $85 million, indicating continued investment in growth.
Challenges Ahead
- The adjusted effective tax rate is still expected to be approximately 6% to 7%, which could impact net income.
- No specific negative guidance was provided, but general economic conditions and foreign exchange fluctuations remain potential risks.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...