Evertec, Inc.

Good afternoon, everyone, and welcome to Evertech's fourth quarter and full year 2025 earnings conference call. Today's conference call is being recorded, and at this time, I'd like to turn the floor over to Lloyda Montes-Santiago of Investor Relations. Please go ahead.

Thank you and good afternoon. With me today are Max Schuessler, our President and Chief Executive Officer, and Carla Cruz-Husino, 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 Investors Relations section of our company's website at www.evertechinc.com. I will now hand over the call to Max.

Thanks, Lloyda, and good afternoon, everyone. I'm pleased to announce a strong finish to 2025 for Evertech, delivering another year of record revenue with solid execution across our core markets. We continue to execute on our strategy to grow organically, expand our capabilities through M&A, and strengthen our position in the payments and financial services market. In the fourth quarter, we closed the previously announced acquisition of Technobank. And earlier this month, we also announced our plans to further advance our product offering and customer base in Brazil with the acquisition of Demenza. We are also now in production with Banco de Chile, providing acquiring, processing, and risk monitoring services. These achievements position us well for 2026, with a continued focus on sustainable organic growth, disciplined capital allocation, and long-term value creation through differentiated products and successful integrations. For 2026, we are also proud that more than 40% of our revenues will now be generated outside of Puerto Rico, while maintaining overall corporate margins and absorbing the 10% MSA discount to popular. On today's call, I'll provide a brief summary of our 2025 results, including updates on our Puerto Rico and Latin America businesses, recent M&A activity, and some comments on A.I., I will then turn the call over to Carla, who will provide more details on our Q4 and full year results, as well as our outlook for 2026. Starting with slide four, I'll highlight our full year 2025 performance. Revenue for the year was approximately $932 million, a 10% increase over the prior year, 11% on a constant currency basis, reflecting strong execution across all segments. Latin America payments and solutions grew 22% year-over-year, benefiting from the full year contribution of the two acquisitions closed in the fourth quarter of 2024, as well as the results from Technobank during the fourth quarter of 2025. Excluding M&A and the approximately $6 million of foreign currency headwinds year-over-year growth was in the double digits, reflecting better than expected performance in Brazil. Merchant acquiring revenue grew 5% year-over-year, benefiting from higher sales volume. Payment services Puerto Rico grew 4% year-over-year, reflecting strong performance from ATH mobile business and higher transaction volumes. Business solutions revenue grew 3% year-over-year, reflecting higher network and consulting services, as well as the benefit from projects completed in the current and prior year, partially offset by the 10% discount to Popular that became effective in the fourth quarter. Adjusted EBITDA was $373.4 million, up approximately 10% year over year, with an adjusted EBITDA margin of 40.1% for the year. Adjusted EPS increased 10% year over year to $3.62, driven by strong adjusted EBITDA growth and lower interest expense, partially offset by higher tax expense. For the full year, we generated approximately $227 million, in operating cash flows and returned approximately $82 million to shareholders through share repurchases and dividends. With $66 million repurchases completed during the fourth quarter, taking advantage of the attractive share price. Our liquidity remains strong at approximately $490 million as of December 31st. 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, 2027. Let me now provide an update on Puerto Rico, beginning on slide five. Conditions remain favorable with positive trends in employment and tourism and healthy sales volume and transaction growth driven by merchant acquiring and ATH mobile. Unemployment remains near historic lows, and consumer spending continues to demonstrate strength. Turning to LATAM on Flight 6, revenue is up 22% year-over-year, driven by organic growth and reacceleration in Brazil, as well as contribution from recent acquisitions, including Technobank, which closed early in the fourth quarter. On a constant currency base, revenue increased by 24% compared to the prior year. As an update on Syncia and our growth opportunities in Brazil, in 2025 we continue to see reacceleration of growth driven by improved customer engagement, positive feedback on our platform modernization efforts, and the impact of contract repricing actions. These initiatives strengthen performance during the current year and position as well as we enter 2026 with meaningful opportunities to continue delivering strong organic growth through deeper penetration of our client base, continued modernization of our platforms, and the scalability benefits of the investments we have already made. Consistent with delivering on our Brazil strategy, we recently announced the acquisition of Demensa, a B2B technology provider servicing financial institutions in Brazil, which is expected to close in the second quarter. This acquisition strengthens our product offering and expands our addressable market in the region. We expect Demensa to become an important contributor to growth as we move through 2026 and beyond. We're also entering 2026 with one of the strongest pipelines we have seen in recent years and have already begun converting that pipeline into WINS, including Banco de Chile and Grupo Apal in Colombia, which we have announced over the last quarters. As we move through 2026 and beyond, we expect continued pipeline conversion to be an increasingly important driver of organic growth across Latin America. Moving on to slide seven, I want to comment on how Evertech is positioning itself in an AI-driven landscape where innovation is accelerating. Our strategy is anchored in a governance framework with a clear focus on data security, responsible AI, and centralized oversight through regional centers of excellence. This framework enables us to scale AI deliberately while protecting our customers, our brand, and our long-term value creation. We are already embedding AI across multiple Evertech products, particularly in risk management, fraud monitoring, and credit decisioning. Through Grandata, we offer AI-native proprietary credit scoring models that leverage telco data to help lenders assess credit risk more effectively, particularly in underbanked markets. Furthermore, we are working to embed AI assistance to enable self-servicing capabilities that help users resolve issues more effectively. Operationally, AI is beginning to drive productivity games across software development, quality assurance, and the internal process, enabling faster delivery without incremental headcount. In 2025, we operationalize AI across our delivery process, and we are already seeing a reduction in core engineering task times and API development efforts. Quality assurance AI automation has also started to shorten validation cycles and reduce review time. These improvements will continue to enhance reliability and allow us to scale delivery and capacity more efficiently as we move into 2026. In support of our Centers of Excellence and broad-based employee upskilling, which reached over 4,500 employees in 2025, we are ensuring that AI investments are prioritized, governed, and aligned with business objectives. Before turning over to Carla, I want to thank our entire team for their continued execution in 2025. Organic growth in LATAM remains strong, and Strategic M&A continues to support our diversification into high-growth markets. I look forward to updating you on our progress throughout 2026. With that, I will now turn the call over to Carla, who will go over the fourth quarter and full year results in more detail and discuss our outlook for 2026.