EVERTEC, Inc.EVTC
EVERTEC, Inc. Segments Disclosure
Segment Information
The Company has four operating and reportable segments: Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, Merchant Acquiring, and Business Solutions based upon organization of the Company by the nature of products and services provided to customers and geography.
The Payment Services - Puerto Rico & Caribbean segment revenues are comprised of revenues related to providing access to the ATH debit network and other card networks to financial institutions, including related services such as authorization, processing, management and recording of ATM and POS transactions, and ATM management and monitoring. The segment revenues also include revenues from card processing services (such as credit and debit card processing, authorization and settlement and fraud monitoring and control to debit or credit issuers), payment processing services (such as payment and billing products for merchants, businesses and financial institutions), ATH Movil (person-to-person) and ATH Business (person-to-merchant) digital transactions and EBT (which principally consist of services to the government of Puerto Rico for the delivery of benefits to participants). For ATH debit network and processing services, revenues are primarily driven by the number of transactions processed. Revenues are derived primarily from network fees, transaction switching and processing fees, and the leasing of POS devices. For card issuer processing, revenues are primarily dependent upon the number of cardholder accounts on file, transactions and authorizations processed, the number of cards embossed and other processing services. For EBT services, revenues are primarily derived from the number of beneficiaries on file.
The Latin America Payments and Solutions segment payment revenues consist of revenues related to providing access to the ATH network of ATMs and other card networks to financial institutions, including related services such as authorization, processing, management and recording of ATM and POS transactions, and ATM management and monitoring. The segment revenues also include revenues from card processing services (such as credit and debit card processing, authorization and settlement and fraud monitoring and control to debit or credit issuers), payment processing services (such as payment and billing products for merchants, businesses and financial institutions), as well as licensed software solutions for risk and fraud management and card payment processing. For network and processing services, revenues are primarily driven by the number of transactions processed. Revenues are derived primarily from transaction switching, processing fees, and the leasing of POS devices. For card issuer processing, revenues are primarily dependent upon the number of cardholder accounts on file, transactions and authorizations processed, the number of cards embossed, and other processing services. Solutions revenues consist of (a) licensing, support and maintenance (“subscription”), implementation and customization of software used to provide financial products in areas such as core banking, credit, investments, payments, foreign exchange, mutual funds, pension funds and consortium, in addition to software used to execute processes such as digital onboarding, digital signature, digital collection, and other digital transaction-related processes, including vehicle financing contract registration; and (b) outsourcing of mission critical IT services. Revenues are based on monthly fixed fees and, in several cases, variable fees based on usage.
The Merchant Acquiring segment consists of revenues from services that allow merchants to accept electronic methods of payment. In the Merchant Acquiring segment, revenues include a discount fee and membership fees charged to merchants, debit network fees and rental fees from POS devices and other equipment, net of credit card interchange and assessment fees charged by credit cards associations (such as VISA or MasterCard) or payment networks. The discount fee is generally a percentage of the transaction value. EVERTEC also charges merchants for other services that are unrelated to the number of transactions or the transaction value.
The Business Solutions segment consists of revenues from a full suite of business process management solutions in various product areas such as core bank processing, network hosting, managed services and managed security services, IT professional services, business process outsourcing, item processing, cash processing, and fulfillment. Core bank processing and network services revenues are derived in part from a recurrent fixed fee and from fees based on the number of accounts on file (i.e., savings or checking accounts, loans, etc.), server capacity usage or computer resources utilized. Revenues from other processing services within the Business Solutions segment are generally volume-based and depend on factors such as the number of accounts processed. In addition, EVERTEC is a reseller of hardware and software products and these resale transactions are generally non-recurring.
The Company’s Chief Operating Decision Maker ("CODM") is the President and Chief Executive Officer (“CEO”). The CODM uses revenue and Segment Adjusted EBITDA to evaluate segment performance and allocate resources, and regularly reviews performance at the segment level against budget and forecast when making decisions about the allocation of resources to each segment. Segment Adjusted EBITDA reviewed by the CODM is calculated as EBITDA further adjusted to exclude certain non-cash unrealized items and unusual expenses such as: share-based compensation, restructuring related expenses, fees and expenses from corporate transactions such as M&A activity and financing, equity investment income net of dividends received, and the impact from non-cash unrealized gains and losses on foreign currency remeasurement for assets and liabilities in non-functional currency. Segment Adjusted EBITDA is presented in conformity with ASC Topic 280, Segment Reporting, given that it is used by the CODM for purposes of evaluating performance and allocating resources.
The Company does not report assets or other balance sheet information to the CODM on a segment basis as the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on this information. No segment
expense information is regularly provided to the CODM and therefore the Company does not report significant segment expenses.
Expense information that is regularly provided to the CODM on a consolidated financial statement basis include personnel costs, professional fees, equipment expenses and cost of sales, adjusted primarily for the impact of share-based compensation, restructuring related expenses, and fees and expenses from corporate transactions such as M&A activity and financing.
The following tables set forth information about the Company’s operations by its four reportable segments for the periods indicated:
| December 31, 2025 | |||||||||||||||||||||||||||||
| (In thousands) | Payment Services - Puerto Rico & Caribbean | Latin America Payments and Solutions | Merchant Acquiring, net | Business Solutions | Total Reportable Segments | ||||||||||||||||||||||||
| Total revenues | $ | 148,922 | $ | 342,898 | $ | 189,913 | $ | 250,085 | $ | 931,818 | |||||||||||||||||||
| Intersegment revenues | 74,344 | 26,569 | — | — | 100,913 | ||||||||||||||||||||||||
Total segment revenues(1) | 223,266 | 369,467 | 189,913 | 250,085 | 1,032,731 | ||||||||||||||||||||||||
Less: Other segment items(2) | (98,590) | (261,853) | (111,545) | (156,149) | (628,137) | ||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 124,676 | $ | 107,614 | $ | 78,368 | $ | 93,936 | $ | 404,594 | |||||||||||||||||||
(1)Total segment revenues include intersegment revenues eliminated on a consolidated basis. Intersegment revenue eliminations predominantly reflect the $59.9 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $26.6 million from Latin America Payments and Solutions to Payment Services-Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $14.5 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.
(2)For each reportable segment, other segment items category includes: cost of revenues and selling, general and administrative expenses, exclusive of depreciation and amortization. These amounts are adjusted to exclude certain items such as: share-based compensation costs, severance payments, equity investment income net of dividends received, foreign currency remeasurement for assets and liabilities in non-functional currency, and expenses from corporate transactions as defined in the Credit Agreement to determine Segment Adjusted EBITDA.
| December 31, 2024 | |||||||||||||||||||||||||||||
| (In thousands) | Payment Services - Puerto Rico & Caribbean | Latin America Payments and Solutions | Merchant Acquiring, net | Business Solutions | Total Reportable Segments | ||||||||||||||||||||||||
| Total revenues | $ | 139,343 | $ | 281,668 | $ | 180,500 | $ | 243,975 | $ | 845,486 | |||||||||||||||||||
| Intersegment revenues | 75,406 | 21,116 | — | — | 96,522 | ||||||||||||||||||||||||
Total segment revenues(1) | 214,749 | 302,784 | 180,500 | 243,975 | 942,008 | ||||||||||||||||||||||||
Less: Other segment items(2) | (93,359) | (223,103) | (107,868) | (141,306) | (565,636) | ||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 121,390 | $ | 79,681 | $ | 72,632 | $ | 102,669 | $ | 376,372 | |||||||||||||||||||
(1)Total segment revenues include intersegment revenues eliminated on a consolidated basis. Intersegment revenue eliminations predominantly reflect the $57.6 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $21.1 million from Latin America Payments and Solutions to Payment Services-Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $17.8 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.
(2)For each reportable segment, other segment items category includes: cost of revenues and selling, general and administrative expenses, exclusive of depreciation and amortization. These amounts are adjusted to exclude certain items such as: share-based compensation costs, severance payments, equity investment income net of dividends received, foreign currency remeasurement for assets and liabilities in non-functional currency, and expenses from corporate transactions as defined in the Credit Agreement to determine Segment Adjusted EBITDA.
| December 31, 2023 | |||||||||||||||||||||||||||||
| (In thousands) | Payment Services - Puerto Rico & Caribbean | Latin America Payments and Solutions | Merchant Acquiring, net | Business Solutions | Total Reportable Segments | ||||||||||||||||||||||||
| Total revenues | $ | 135,973 | $ | 169,410 | $ | 162,366 | $ | 226,960 | $ | 694,709 | |||||||||||||||||||
| Intersegment revenues | 67,259 | 17,093 | — | — | 84,352 | ||||||||||||||||||||||||
Total segment revenues(1) | 203,232 | 186,503 | 162,366 | 226,960 | 779,061 | ||||||||||||||||||||||||
Less: Other segment items(2) | (84,966) | (126,345) | (101,374) | (140,080) | (452,765) | ||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 118,266 | $ | 60,158 | $ | 60,992 | $ | 86,880 | $ | 326,296 | |||||||||||||||||||
(1)Total segment revenues include intersegment revenues eliminated on a consolidated basis. Intersegment revenue eliminations predominantly reflect the $52.9 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $17.1 million from Latin America Payments and Solutions to Payment Services-Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $14.3 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.
(2)For each reportable segment, other segment items category includes: cost of revenues and selling, general and administrative expenses, exclusive of depreciation and amortization. These amounts are adjusted to exclude certain items such as: share-based compensation costs, severance payments, equity investment income net of dividends received, foreign currency remeasurement for assets and liabilities in non-functional currency, and expenses from corporate transactions as defined in the Credit Agreement to determine Segment Adjusted EBITDA.
The reconciliation of Segment Adjusted EBITDA to consolidated income before income taxes is as follows:
| Years ended December 31, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Segment Adjusted EBITDA | $ | 404,594 | $ | 376,372 | $ | 326,296 | |||||||||||
| Elimination of intersegment revenues | (100,913) | (96,522) | (84,352) | ||||||||||||||
Other corporate expenses(1) | 69,702 | 60,378 | 50,027 | ||||||||||||||
Compensation and benefits(2) | (36,033) | (31,644) | (29,312) | ||||||||||||||
Transaction, refinancing and other fees(3) | (9,858) | 4,217 | (53,545) | ||||||||||||||
| Earnings from equity investees, net of dividends received | 1,620 | 1,270 | 1,945 | ||||||||||||||
Gain (loss) on foreign currency remeasurement(4) | 592 | (5,198) | (8,276) | ||||||||||||||
| Interest income | 15,035 | 13,332 | 8,512 | ||||||||||||||
| Interest expense | (68,278) | (74,733) | (32,321) | ||||||||||||||
| Depreciation and amortization | (122,086) | (127,846) | (93,621) | ||||||||||||||
| Income before income taxes | $ | 154,375 | $ | 119,626 | $ | 85,353 | |||||||||||
(1)The other corporate expenses category consists of corporate overhead expenses and other non-operating expenses that are not included in the reportable segment, as well as intersegment eliminations.
(2)Primarily represents share-based compensation and severance payments.
(3)Primarily represents fees and expenses associated with corporate transactions as defined in the Credit Agreement and the elimination of unrealized earnings from equity investments, net of dividends received and multi-year non recurring gains recognized in connection with the sale of tax credits..
(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.
The geographic information below is classified based on the geographic location of the Company’s subsidiaries:
| Years ended December 31, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
Revenues (1) | |||||||||||||||||
| Puerto Rico | $ | 567,682 | $ | 543,568 | $ | 505,246 | |||||||||||
| Caribbean | 21,238 | 20,250 | 20,053 | ||||||||||||||
| Latin America | 342,898 | 281,668 | 169,410 | ||||||||||||||
| Total Revenues | $ | 931,818 | $ | 845,486 | $ | 694,709 | |||||||||||
(1)Revenues are based on subsidiaries’ country of domicile.
Major customers
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.
The Company’s next largest customer, the Government of Puerto Rico, consolidating all individual agencies and public corporations, represented 5%, 5%, and 7% of the Company’s total revenues for the years ended December 31, 2025, 2024 and 2023, respectively.
Revenues related to Popular and the Government of Puerto Rico are both related to the Payment Services - Puerto Rico & Caribbean and Business Solutions segments.
Long-lived assets
Long-lived assets, excluding goodwill and other intangible assets, by location as of December 31, 2025 and 2024 were as follows:
| Years ended December 31, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Puerto Rico | $ | 44,294 | $ | 44,563 | |||||||
| Latin America | 20,060 | 17,496 | |||||||||
| Total Property and equipment, net | $ | 64,354 | $ | 62,059 | |||||||
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 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | May 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.