Thu, May 8, 10:22 AM (4 days ago)
**EVERTEC, Inc. (EVTC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $228.8 million, up 11% YoY, driven by organic growth and acquisitions. - **Net Income:** $33.1 million, a significant increase from $16.4 million in Q1 2024. - **Earnings per Share (EPS):** $0.51 basic, $0.50 diluted, compared to $0.25 and $0.24 respectively in Q1 2024. - **Operating Margin:** 21.6%, up from 16.0% in Q1 2024. - **Cash Flow from Operations:** $37.6 million, slightly down from $40.7 million in Q1 2024. **Segment Performance:** - **Payment Services - Puerto Rico & Caribbean:** Revenue up 4% to $55.2 million, Segment Adjusted EBITDA up 4% to $31.4 million. - **Latin America Payments and Solutions:** Revenue up 13% to $83.8 million, Segment Adjusted EBITDA up 53% to $24.9 million. - **Merchant Acquiring:** Revenue up 11% to $47.6 million, Segment Adjusted EBITDA up 25% to $20.4 million. - **Business Solutions:** Revenue up 13% to $65.6 million, Segment Adjusted EBITDA down 3% to $22.2 million. **Trends and Uncertainties:** - **Growth Drivers:** Continued migration to electronic payments, outsourcing trends, and digital payment solutions. - **Risks:** Economic uncertainty, interest rate fluctuations, foreign exchange risks, and dependence on key clients like Popular. **Future Operations and Impact:** - **Acquisitions:** Completed acquisitions of Grandata and Nubity in Q4 2024, enhancing product offerings. - **Dividends:** Declared a quarterly dividend of $0.05 per share, paid on March 21, 2025. - **Liquidity:** Strong liquidity position with $265.9 million in cash and cash equivalents, and $193.9 million available under the Revolving Facility. **Management's Outlook:** - **Growth Strategy:** Focus on organic growth, strategic acquisitions, and expanding digital payment solutions. - **Financial Strength:** Adequate liquidity and capital resources to meet operational needs and strategic initiatives. **Key Metrics:** - **Total Assets:** $1.92 billion, up from $1.86 billion in Q4 2024. - **Total Liabilities:** $1.33 billion, slightly down from $1.34 billion in Q4 2024. - **Stockholders' Equity:** $545.1 million, up from $475.8 million in Q4 2024. **Conclusion:** EVERTEC, Inc. demonstrated strong financial performance in Q1 2025, driven by organic growth and strategic acquisitions. The company's focus on digital payment solutions and expansion into new markets positions it well for continued growth. However, economic uncertainties and dependence on key clients remain as risks.