A Puerto Rico-based payment processor that helps merchants accept credit and debit cards, runs the ATH debit network used across the island, and offers core banking and cash services to banks. It began in the late 1980s as an internal division of Banco Popular de Puerto Rico before spinning off as its own publicly traded company in 2013. The ATH network takes its name from the Spanish phrase "a toda hora," meaning "at all times."
Evertec's Q2 revenue rose 20% to $274.8M on acquisitions, but net income fell 87% to $5.4M on higher costs, an impairment, and a tax charge.
rose on acquisitions, but costs and a tax charge erased nearly all profit. Revenue rose 20% to $274.8 million, driven by the Tecnobank and Dimensa deals, while fell 87% to $5.4 million as SG&A, , and an equity investment rose, and the spiked to 75%. The quarter leaves Evertec with a much larger Latin America business but a profitability profile that has sharply deteriorated.
Key takeaways
fell 87% to $5.4 million, and dropped 85% to $0.09, as a 63% increase in SG&A to $57.3 million, a 41% rise in and to $40.0 million, and an $8.9 million on an equity investment more than offset the gain.
The spiked to 74.7% from 9.0% a year ago, driven by discrete items including taxes on a foreign used to fund the Dimensa acquisition and a against capital losses.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 20% to $274.8M on acquisitions and organic growth, but net income fell sharply due to higher costs, impairment, and taxes.
⌄
Total revenues increased 20% to $274.8M, driven by , recent acquisitions (Dimensa, Tecnobank), and a $9.1M favorable FX impact, primarily in Brazil.
declined 5% to $53.3M as a 63% surge in SG&A (to $57.3M) and a 41% rise in and (to $40.0M) from acquisitions outpaced gains.
Latin America Payments and Solutions rose 52% to $130.9 million, boosted by the Tecnobank and Dimensa acquisitions, in Brazil, and a $9.1 million favorable foreign exchange impact.
Business Solutions fell 9% to $58.8 million, as a new 10% discount for Popular and the absence of non-recurring hardware and software sales from the prior-year period continued to weigh on the .
rose 34% to $1.22 billion, reflecting the $150 million draw for Tecnobank in Q4 2025 and additional financing for the Dimensa acquisition, which closed in Q2 2026 and used $179.8 million in cash.
rose 23% to $59.5 million and rose 26% to $54.6 million, reversing the working-capital-driven declines of the prior quarter.
What changed
The , which was flagged last quarter after contracting to 18.0%, improved 1.4 points to 19.4% sequentially but remains 5.1 points below the prior-year quarter's 24.4%, as the Tecnobank and Dimensa acquisitions continue to add higher and SG&A costs.
The Latin America Payments and Solutions sustained above $110 million, rising to $130.9 million from $110.3 million in Q1 2026, confirming that the Tecnobank acquisition has structurally lifted the segment's revenue base.
Business Solutions' decline of 9% repeated the Q1 2026 contraction, suggesting the new Popular discount and the absence of non-recurring sales are not a one-quarter reset but a sustained for the .
The Pix incident accrual recorded in Q3 2025 was not mentioned as a continuing factor, and rebounded from the Q1 2026 decline, rising 91% sequentially to $59.5 million.
What to watch
Whether the normalizes from the 74.7% level after the discrete items tied to the Dimensa acquisition financing and the are absorbed, and what a sustainable rate looks like with the new Latin America business mix.
The trajectory of the consolidated now that Dimensa's costs are in the base alongside Tecnobank's, and whether it can return toward the 24.4% level seen in Q2 2025 before the acquisition-driven cost increases.
The outcome of the data breach class action lawsuits filed in June 2026, and whether the incident leads to operational changes, regulatory scrutiny, or financial exposure beyond the litigation costs.
The renewal of Evertec's 4% tax grant in Puerto Rico, which expires December 31, 2026, and whether the company maintains the required 700-employee headcount amid the shifting business mix toward Latin America.
Latin America Payments and Solutions was the standout , with up 52% to $130.9M, while Business Solutions revenue contracted 9% to $58.8M due to a new 10% discount for Popular.
Non-operating expenses more than doubled to $26.1M, mainly from an $8.9M on an equity investment and higher on debt raised for the Dimensa and Tecnobank acquisitions.
The spiked to 74.7% from 9.0% due to discrete items, including taxes on a foreign to fund the Dimensa acquisition and a against capital losses.
was $90.7M for the first half, while investing activities used $228.9M primarily for the $179.8M Dimensa acquisition; the company has $260.7M in cash and $159.4M available on its revolving facility.
Quantitative and Qualitative Disclosures About Market Risk
Interest expense would rise ~$7.5M per 100bp rate increase; FX remeasurement swung to a $0.7M loss; inflation impact deemed immaterial historically.
⌄
A hypothetical 100bp rate increase above floors on floating-rate secured credit facilities would raise annual by approximately $7.5 million as of June 30, 2026.
The company uses three interest rate swaps to convert a portion of its Term Loan Facilities from variable to fixed rates, exposing it to counterparty credit risk.
Non- remeasurement swung to a $0.7 million loss in H1 2026 from a $1.3 million gain in H1 2025, while translation adjustments improved to a $4.6 million unfavorable balance from $63.4 million at year-end 2025.
Inflation has historically had a minimal net effect on operating results, but rising input costs and FX volatility could negatively impact results if not fully offset.
We are, from time to time, party to various claims and legal proceedings arising in the ordinary course of our business. Data Breach Litigation: Beginning on June 12, 2026, a series of putative class action lawsuits were filed in the United States District Court for the District…
⌄
We are, from time to time, party to various claims and legal proceedings arising in the ordinary course of our business.
Data Breach Litigation:
Beginning on June 12, 2026, a series of putative class action lawsuits were filed in the United States District Court for the District of Puerto Rico, and in the Superior Court of the Commonwealth of Puerto Rico, against the Company relating to a cybersecurity incident (the “Incident”) involving a third-party support platform that exposed certain customer data and transaction records primarily affecting financial institutions in Puerto Rico. Plaintiffs are individual consumers who allege that their personal information was impacted in the Incident, which they allege may have included their names, contact information, transaction records, and payment card numbers. Plaintiffs generally allege that the Incident occurred due to the Company’s failure to implement adequate and reasonable cybersecurity procedures and protocols, and bring claims for negligence, breach of contract, unjust enrichment on behalf of a proposed class of all individuals impacted by the Incident.
Plaintiffs have moved to consolidate the four cases pending in federal court and intend to file a consolidated complaint. The Company intends to file a motion to dismiss the consolidated complaint and intends to separately move to dismiss the pending Superior Court case. The Company believes that the lawsuits relating to the Incident are without merit and intends to vigorously defend them.
See Part I, Item 1 “Financial Statements (Unaudited) - Note 15, Commitments and Contingencies,” incorporated herein by reference, for a discussion of material legal proceedings.
There have been no material changes to the risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 2, 2026. For a discussion of the potential risks and uncertainties related to us, see "Item 1A. Risk Factors" in o…
⌄
There have been no material changes to the risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 2, 2026. For a discussion of the potential risks and uncertainties related to us, see "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025.