Evertec, Inc.

Good afternoon, everyone, and welcome to Evertech's first quarter 2026 earnings conference call. Today's conference call is being recorded. If it's time, I would like to turn the call over to Lourdes Montes Santiago of Investor Relations. Please go ahead.

Thank you, and good afternoon. With me today are Matt 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 gap 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 Max.

Thanks, Lloyda, and good afternoon, everyone. I'm pleased to announce strong first quarter results that demonstrate continued execution against our strategic priorities and momentum across our core markets. Today, I'll begin with an overview of our M&A framework and how it is translating into value creation across our portfolio, including the closing of the Dementia acquisition and an update on Syncia and Technobank. Each of these reflects a different phase of the same strategy, acquiring, integrating, and scaling high-quality assets. I'll then review our Q1 performance before turning the call over to Carla for a more detailed discussion of our financial results. Let me start by outlining how we think about M&A. Our framework is a disciplined approach built around a clearly defined set of criteria. First, we focus on scalable assets with transferable capabilities, which allow us to drive efficient growth while minimizing incremental costs and simplifying integration. Second, client overlap and regional footprint are also key considerations. We look to expand our services with the right financial institutions and retailers while leveraging the attractive growth characteristics of businesses with core operations across Latin America. Finally, we prioritize high-quality revenue and strong underlying economics, emphasizing profitable business models supported by recurring or volume-based revenue, with clear opportunities for accelerating growth and expanding margin over time. Consistent with that framework, I'm pleased to announce that we have successfully closed our previously announced acquisition of Demensa. Strategically, this acquisition represents an important step forward, positioning us amongst the largest financial SaaS providers in the market. Demensa adds a meaningful set of new client relationships, strengthens existing key partnerships, and significantly expands our opportunities within the region as we continue to build a comprehensive one-stop shop portfolio of services. This acquisition simultaneously supports growth and efficiency, reinforcing our leadership in existing markets while expanding our presence into new segments. From a financial perspective, Dementia is expected to be neutral to slightly accretive in 2026, reflecting integration timing and financing costs. We anticipate realizing synergies beginning in 2027, which should further enhance the earnings contribution over time. On a pro forma basis and inclusive of those synergies, The acquisition multiple compares favorably with Evertech's current valuation. Given we are only days into the acquisition, our near-term focus is integration execution and building momentum through 2026 and beyond, as we expect Dementia to become an increasingly important contributor to our growth as we move forward. Turning to Syncia, integration priorities remain focused on operational discipline, product rationalization, and go-to-market effectiveness. The commercial pipeline remains balanced between new customer wins and cross-sell opportunities, supported by our expanded product offering and modernization of existing platforms and the complementary acquisitions we have completed across Brazil. While the competitive environment remains active, our scale, local expertise, and increasingly integrated offering continue to differentiate us. As we look ahead, our focus remains on driving operational efficiency and positioning the business for sustained margin improvement over time. Lastly, Technobank continues to validate our M&A strategy in Brazil, strengthening our local scale and capabilities while demonstrating our ability to integrate founder-led platforms and position them for sustainable growth, reinforcing confidence in our ability to execute strategic acquisitions in the region. Now turning to slide seven, I'll cover some highlights from our first quarter results. Revenue for the quarter was approximately $247.9 million, an increase of 8% compared to the prior year. driven in part by the full contribution from the Technobank acquisition, as well as organic growth across most of the company's segments. On a constant currency basis, revenue also reflected the continued stability in the underlying business momentum, with approximately 5% year-over-year growth. Adjusted EBITDA for the quarter was approximately $97 million, up 9% year-over-year. Adjusted EBITDA margin was 39.1%, consistent with the prior year, despite headwinds from the 10% discount to popular and unfavorable foreign exchange dynamics. This performance reflects our continued focus on discipline cost management and operational efficiency. Adjusted EPS was approximately $0.90, an increase of 3% from the prior year, driven by strong adjusted EBITDA growth and a lower share count reflecting the impact of the share repurchases completed during the current and prior year. From a capital allocation perspective, during the quarter, we paid approximately $3.1 million in dividends and repurchased approximately 700,000 shares for a total of $20 million. We exited the quarter with approximately $130 million remaining on our share repurchase program, providing us flexibility going forward. Our liquidity remained strong at approximately $460 million as of March 31st, allowing us to execute on the dementia acquisition. Let me now provide an update on Puerto Rico, beginning on slide eight. Merchant acquiring revenue grew 2% year over year, driven by higher sales volume, despite a modest decline in spread that was consistent with our expectations. Payment services in Puerto Rico grew 6% year-over-year, driven by transaction growth and continued strength in ATH Mobile, primarily ATH Mobile business. Business solutions revenue declined approximately $6 million, or 9% year-over-year, primarily reflecting the 10% discount to Popular, as well as a one-time hardware and software sale executed during the prior year period. Overall, economic conditions in Puerto Rico continues to remain stable, with positive trends in total employment and strong tourism performance. The unemployment rate remained at 5.6% while consumer spending continued to demonstrate strength and stability. Turning to slide 9, in Latin America, revenue increased 32% year-over-year on a reported basis. Technobank delivered a strong full-quarter contribution in Q1, supporting revenue and EBITDA growth in Latin America and reinforcing the reacceleration we have been seeing in Brazil. We also benefited from the continued organic growth across the region, including contribution from recent client wins. Results also benefited from a $6.8 million foreign exchange tailwind, primarily in Brazil. On a cost-to-currency basis, our Latin America business grew 24% compared to the prior year. In summary, we're pleased with our first quarter performance and the continued progress across our strategic initiatives. Our diversification into Latin America continues to drive growth. Our Puerto Rico business remains resilient, and our disciplined M&A strategy continues to deliver tangible results. We remain focused on sustainable organic growth, disciplined capital allocation, and long-term value creation. With that, I will now turn the call over to Carla, who will provide more details on our Q1 results and discuss our updated outlook for the remainder of 2026.