EVERTEC, Inc.EVTC
EVERTEC, Inc. Revenue Disclosure
Revenues
Disaggregation of revenue
The Company disaggregates revenue from contracts with customers into the primary geographical markets, nature of products and services, and timing of transfer of goods and services. The Company’s operating segments are determined by the nature of the products and services that the Company provides and the primary geographical markets in which the Company operates. Revenue disaggregated by segment is discussed in Note 26 - Segment Information.
In the following table, revenue for each segment, excluding intersegment revenues, is disaggregated by timing of revenue recognition for the periods indicated.
| Year ended on December 31, 2025 | |||||||||||||||||||||||||||||
| (In thousands) | Payment Services - Puerto Rico & Caribbean | Latin America Payments and Solutions | Merchant Acquiring, net | Business Solutions | Total | ||||||||||||||||||||||||
| Timing of revenue recognition | |||||||||||||||||||||||||||||
| Products and services transferred at a point in time | $ | 215 | $ | 9,611 | $ | — | $ | 8,361 | $ | 18,187 | |||||||||||||||||||
| Products and services transferred over time | 148,707 | 333,287 | 189,913 | 241,724 | 913,631 | ||||||||||||||||||||||||
| $ | 148,922 | $ | 342,898 | $ | 189,913 | $ | 250,085 | $ | 931,818 | ||||||||||||||||||||
| Year ended on December 31, 2024 | |||||||||||||||||||||||||||||
| (In thousands) | Payment Services - Puerto Rico & Caribbean | Latin America Payments and Solutions | Merchant Acquiring, net | Business Solutions | Total | ||||||||||||||||||||||||
| Timing of revenue recognition | |||||||||||||||||||||||||||||
| Products and services transferred at a point in time | $ | 240 | $ | 4,558 | $ | — | $ | 7,773 | $ | 12,571 | |||||||||||||||||||
| Products and services transferred over time | 139,103 | 277,110 | 180,500 | 236,202 | 832,915 | ||||||||||||||||||||||||
| $ | 139,343 | $ | 281,668 | $ | 180,500 | $ | 243,975 | $ | 845,486 | ||||||||||||||||||||
| Year ended on December 31, 2023 | |||||||||||||||||||||||||||||
| (In thousands) | Payment Services - Puerto Rico & Caribbean | Latin America Payments and Solutions | Merchant Acquiring, net | Business Solutions | Total | ||||||||||||||||||||||||
| Timing of revenue recognition | |||||||||||||||||||||||||||||
| Products and services transferred at a point in time | $ | 394 | $ | 5,766 | $ | — | $ | 8,911 | $ | 15,071 | |||||||||||||||||||
| Products and services transferred over time | 135,579 | 163,644 | 162,366 | 218,049 | 679,638 | ||||||||||||||||||||||||
| $ | 135,973 | $ | 169,410 | $ | 162,366 | $ | 226,960 | $ | 694,709 | ||||||||||||||||||||
The Company has revenue concentration with Popular, revenues as a percentage of total revenues, were 29%, 31% and 35%, for the years ended December 31, 2025, 2024 and 2023, respectively. Accounts receivable from Popular as of December 31, 2025 and December 31, 2024 amounted to $41.4 million and $37.5 million, respectively.
The Company enters into collaborative arrangements aimed at growing the Company’s merchant relationships. These arrangements are accounted for under ASC 606 as required by ASC 808 Collaborative Arrangements and are included as part of the Company’s Merchant Acquiring segment and Latin America Payments and Solutions segment. For the years ended December 31, 2025, 2024 and 2023, the Company recognized revenue amounting to $142.6 million, $130.8 million, and $114.9 million, respectively, for these arrangements.
Refer to Note 26 - Segment Information for further information, including revenue by products and services the Company provides and the geographic regions in which the Company operates.
Contract balances
Contract assets of the Company arise when the Company has a contract with a customer for which revenue has been recognized (i.e., goods or services have been transferred), but the customer payment is subject to a future event (i.e., satisfaction of additional performance obligations). Contract assets will be considered a receivable when the rights to consideration of the Company becomes unconditional (i.e., the Company has a present right to payment). The current portion of contract assets is recorded as part of prepaid expenses and other assets, and the long-term portion is included in other long-term assets in the consolidated balance sheets. Contract assets at December 31, 2025 and 2024 amounted to $13.9 million and $11.4 million, respectively.
Contract liability and Contract liability- Long term, at December 31, 2025 amounted to $26.6 million and $47.0 million, respectively. Contract liability and Contract liability- Long term amounted to $25.3 million and $55.0 million at December 31, 2024, respectively. Contract liability is mainly comprised of upfront fees for implementation or set up activities, including fees invoiced in pre-production periods in connection with hosting services, as well as amounts related to contracts entered into concurrently with the close of the Popular Transaction in fiscal year 2022. Contract liability may also arise when consideration is received or due in advance from customers prior to performance. During the year ended December 31, 2025, the Company recognized revenue of $29.1 million that was included in contract liability, at December 31, 2024. During the year ended December 31, 2024, the Company recognized revenue of $28.8 million that was included in contract liability at December 31, 2023.
Transaction price allocated to the remaining performance obligations
Revenues from recurring transaction-based and processing services represent the majority of the Company’s total revenue. The Company recognizes revenues from recurring transaction-based and processing services over time at the amounts in which the Company has right to invoice, which corresponds directly to the value to the customer of the Company’s performance completed to date.
The Company has elected to apply the practical expedient permitted under ASC 606, when applicable. Under this practical expedient, the Company is not required to disclose information about remaining performance obligations if the performance obligation is part of a contract with an original expected duration of one year or less or if the Company recognizes revenue at the amount to which it has a right to invoice.
The Company also applies the practical expedient for variable consideration when the variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation.
For contracts excluded from the application of the practical expedients noted above, the estimated aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially satisfied at December 31, 2025 is $748.8 million, which is expected to be recognized over the next 6 years. The Company expects to recognize approximately 35% of the remaining performance obligations over the next 12 months, approximately 30% over the next 13 to 24 months, and the balance thereafter.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 26, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.