EVERTEC (EVTC) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of $845.5 million in 2024, up 22% year-over-year, with strong growth across all segments and significant contributions from Sinqia, Grandata, and Nubity acquisitions, especially in Latin America.

• Adjusted EBITDA reached $340.2 million, up 17%, with a margin of 40.2%; adjusted EPS was $3.28, up 16% year-over-year.

• Operating cash flow for the year was $260 million; $95 million returned to shareholders via buybacks and dividends.

• Closed two additional tuck-in acquisitions (Grandata and Nubity) in Q4, strengthening the business pipeline in Latin America and diversifying revenue mix.

• GAAP Net Income attributable to common shareholders rose 41% for the year to $112.6 million.

Financial highlights

• Q4 2024 revenue was $216.4 million, up 11% year-over-year; full-year adjusted EBITDA was $340.2 million, up 17%, with a margin of 40.2%.

• Q4 adjusted EPS was $0.87, up 40%; full-year adjusted EPS was $3.28, up 16% year-over-year.

• Operating cash flow for the year was $260 million; capital expenditures $88.4 million; M&A spend $34 million.

• Net debt at year-end was $706.8 million, with a net debt/EBITDA ratio of 2.06x, and total liquidity of $467.5 million.

• $95 million returned to shareholders via buybacks and dividends in 2024.

Outlook and guidance

• 2025 revenue expected between $889–$899 million (5.1%–6.3% growth), with constant currency growth of 5.5%–6.7%.

• Adjusted EPS projected at $3.34–$3.45, up 1.8%–5.2% (2.6%–6% constant currency); adjusted EBITDA margin expected at 39.5%–40.5%.

• Capital expenditures projected at $85 million for 2025; effective tax rate expected at 6%–7%.

• Segment guidance: Merchant Acquiring mid-single-digit growth, Payments Puerto Rico low single-digit, Payments LatAm low double-digit (constant currency), Business Solutions low single-digit.

• 10% discount on Popular services to impact Q4 2025, with a full annual run-rate impact of $18 million in 2026.