Evertec, Inc.

Good day and welcome to the Evertech third quarter 2025 earnings conference call. All participants will be in a listen only mode. Should you need any assistance please signal a conference specialist by pressing the star key followed by zero. After today's presentation there will be an opportunity to ask questions. To ask a question you may press star then one on your telephone keypad. 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 Lloyda Montes-Santiago, Finance Property and Investor Relations Senior Manager. Please go ahead.

Thank you and good afternoon. With me today are Max Schuessler, our President and Chief Executive Officer, Joaquin Castrillo, our Chief Operating Officer, and Carla Cruz-Busino, 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, and 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's website at www.evertechinc.com. I will now hand over the call to Mac.

Thanks, Lloyda, and good afternoon, everyone. Before we dive in, I'd like to have a moment to recognize Lloyda as our new internal point of contact for Investor Relations. In the third quarter, Evertech delivered another strong quarter of organic revenue growth and further advanced our presence and capabilities in Brazil by closing on the previously announced Technobank acquisition. On today's call, I'll provide an update of the cybersecurity incident we identified in August, give a brief summary of our third quarter results, including an update on our Puerto Rico and LATAM businesses, followed by our updated outlook for 2025. Before we dive in, I'd like to address an important leadership transition that took effect on November 1st. I'm pleased to announce that Joaquin Castillo has been promoted to Chief Operating Officer. In this extended capacity, he will be responsible for the revenue and management across all Evertex commercial areas. During his tenure as CFO, Joaquin was instrumental in establishing strong relationships with the investment community, and his strategic vision has been invaluable to the company's growth trajectory. As he transitions to the role of Chief Operating Officer, Joaquin brings with him a proven track record of financial stewardship and a deep understanding of Evertex business. ensuring continued momentum and seamless continuity in the company's leadership team. Succeeding Joaquin as CFO is Carla Cruz-Fusina, who has been promoted from Chief Accounting Officer. Carla has been a keystone to our finance and accounting organization for six years, and I'm confident that her track record, strategic vision, and dedication to Evertech's mission position her to guide the company's financial strategy through its next phase of growth. Overall, these interim promotions reflect the strength and depth of our finance organization and ensure seamless continuity in our leadership. With the transition noted, let me give a brief update on the cybersecurity incident we identified in August. As stated previously, we detected unauthorized activity in CINCIA's PICS environment in the Brazilian Central Bank, or BCB. For context, PICS is a real-time payment system in Brazil governed by the central bank, and CINCIA has services that enable financial institutions to access this payment system. Once the unauthorized activity was detected, our teams reacted promptly and, in accordance with our cyber incident protocols, were able to contain the situation. The team worked closely with both our clients and the BCB, reviewed and implemented key security enhancements to our systems, and obtained approval from the BCB that allowed our systems to be now up and running for several weeks. Additionally, our financial institution clients have now confirmed that the vast majority of the funds have been recovered, significantly limiting the original exposure. Now that our investigation has nearly concluded, we can confirm that this incident was isolated to the PICS real-time payment system in Brazil and did not impact any other Evertech products or services or geographies. Our Q3 results for GAAP purposes reflect the impact from cost incurred throughout the incident, as well as an estimate of potential claims related to client losses from funds yet to be recovered, as we continue to work with our clients and our cybersecurity insurance provider. Moving now to our third quarter results, I'm pleased to announce solid revenue performance. 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. Beginning on slide five, I'll start by covering a few highlights from our third quarter results. Revenue for the third quarter was $228.6 million, an 8% increase over the prior year, while constant currency revenue was approximately $227.9 million, representing growth of 8%. as we again saw growth across all of our segments. Adjusted EBITDA increased to $92.6 million, up approximately 6% year-over-year, and adjusted EBITDA margin was 40.5% for the quarter. Adjusted EPS of 92 cents was up 7% year-over-year, driven by the strong adjusted EBITDA growth and lower interest expense, partially offset by higher tax expense. Through the first nine months of the year, we have generated operating cash flow of approximately $157 million in return cash to shareholders through $9.6 million in dividends and $3.7 million in share repurchases. Our liquidity remains strong at approximately $518.6 million as of September 30th. Let me now provide an update on Puerto Rico, beginning on slide six. Merchant acquiring revenue grew 3% year-over-year, driven by higher sales volume. Payment services in Puerto Rico grew 5% year-over-year, driven by strong performance in ATH mobile, primarily ATH business, as well as POS transaction growth. Business solutions revenue grew 1%, primarily driven by projects completed during the quarter. Economic conditions in Puerto Rico remained favorable through the end of the third quarter, with positive trends in total employment, strong tourism performance, and other key economic indicators. The unemployment rate held steady at 5.6%, near historic lows, while consumer spending continued to demonstrate strength and stability. Moving to Latin America on slide seven, revenue increased 19% year-over-year, or 18% on a constant currency basis, as we continue to see strong organic growth across the region, fueled by the reacceleration in Brazil and the contribution from the Grandada and Nubidi acquisitions. Our pipeline in LATAM remains robust and, as anticipated, is now beginning to drive key wins. I'm excited to announce that we have signed a deal to provide acquiring, processing, and risk monitoring services to Banco de Chile, one of the largest financial institutions in Chile, known for its retail and corporate banking services and extensive national presence. With this win, we now have two of the largest banks in Chile on our acquiring platform, validating our strategy of investing in dynamic markets and positioning Evertech as one of the top processors in the country. I'm also excited to announce that we have signed a deal with Financiaria O, a leading financial services company in Peru known for its innovative credit solutions and strong retail presence. We will provide issuing, processing of debit, credit, and fraud monitoring solutions. This is a key win that also positions Evertech with a marquee name in the very attractive Peruvian market. On the M&A front, I would like to acknowledge the closing of a patrolling stake in Technobank in October. This acquisition strengthens our financial technology capabilities in Brazil and opens new avenues for growth and scale. and I would like to personally extend a warm welcome to the entire Technobank team. In summary, we delivered another quarter of strong results across Puerto Rico and Latin America. More importantly, the key wins announced in the previously mentioned win of Grupo Evol and Columbia demonstrate our ability to win in key markets where the opportunity for Evertech continues to be immense. The combination of strong organic growth in LATAM and the contribution from M&A will continue to drive our diversification in the growth markets that will lead to a faster growing Evertech over time. These are exciting times for our company. With that, I will now turn the call over to Joaquin to provide deeper commentary around our third quarter results, followed by Carlo, who will discuss our improved outlook for the remainder of 2025.