Evertec, Inc.

Good day and welcome to the Evertech Second Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star, then one on your touchtone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Beatrice Brown from Investor Relations. Please go ahead.

Thank you and good afternoon. With me today are Max Schuessler, our President and Chief Executive Officer, and Joaquin Castrillo, our Chief Financial Officer. Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC report. During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as constant currency revenue, adjusted EBITDA, adjusted net income, adjusted earnings per common share, and constant currency adjusted earnings per common share. Reconciliations to GAAP measures and certain additional information are also included in today's earnings release and related supplemental slides, which are available in the investor relations section of our company website at www.evertechinc.com. I will now hand the call over to Matt.

Thanks, Beatrice, and good afternoon, everyone. I'm pleased to announce second quarter results that reflect solid revenue growth across all of our segments. We delivered healthy growth over the prior year and exceeded our internal expectations as we continue to execute at a high level across all regions and business segments. I will begin today's call with a brief summary of our second quarter 2025 results, followed by a discussion of our Puerto Rico business and an update on myTAM. I will then turn the call over to Joaquin, who will provide some additional details on our Q2 results and our updated outlook for 2025. Beginning on slide four, I'll start by covering a few highlights from our second quarter results. Revenue for the second quarter was $230 million, an 8% increase over the prior year, while constant currency revenue was approximately $233 million, representing growth of 10% as we again saw growth across all of our segments. Adjusted EBITDA increased to $93 million, up approximately 8% year-over-year, and adjusted EBITDA margin was 40.3% for the quarter and aligned with our expectations. Adjusted EPS of 89 cents was up 7 percent year-over-year, driving by the strong adjusted EBITDA growth and lower interest expense, partially offset by higher tax expense and operating depreciation and amortization. We generated operating cash flow of approximately $86 million during the first half of the year and returned cash to shareholders through $6.4 million in dividends and $3.7 million of share repurchases. Our liquidity remains strong at approximately $485 million as of June 30th. Let me now provide an update on Puerto Rico, beginning on slide 5. Merchant acquiring revenue grew 4% year-over-year, driven by an improvement in spread, as we continue to benefit from pricing initiatives implemented in the prior year and sales volume growth. Payment services Puerto Rico also grew 4% year-over-year, driven by strong performance in ATH mobile, primarily ATH business, as well as POS transaction growth. AGH mobile revenue grew 17% year-over-year. Business solutions revenue also grew 4%, primarily driven by projects completed in the prior year, mainly for Popular and an increase in IT consulting services. The overall economic condition in Puerto Rico continues to remain stable. The unemployment rate remains near multi-decade lows of about 5.2%. Passenger traffic in the San Juan Airport remains strong, up approximately 11% year-over-year through April. Moving to Latin America on slide six, revenue increased 15% year-over-year or 20% on a constant currency basis, driven by continued organic growth across the region and the contribution from the Grandada and Nubidi acquisitions. Our pipeline remains as active as it's ever been, and we are confident in our ability to convert some of these opportunities into wins over the next quarters. Last quarter, I made a few comments regarding the tariff discussions, and while we still remain vigilant of the potential tariffs that might be imposed in the countries in which we operate, to date, We have not identified a direct impact on our results of operations. Before I turn the call board to Joaquin, I would like to note that our board of directors approved a refresh of our share repurchase program, authorizing the company to repurchase up to an aggregate of $150 million of shares of its common stock through December 31, 2026. I believe strongly in the opportunity ahead for Evertech, and our share repurchase program provides another avenue for capital allocation while allowing us to continue and invest in the business for long-term growth. With that, I will now turn the call over to Joaquin to provide deeper commentary around our second quarter results and discuss our increased outlook for 2025.