Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024 or


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

COMMISSION FILE NUMBER 001-35872

EVERTEC, Inc.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


Puerto Rico		66-0783622
(State or other jurisdiction of incorporation or organization)		(I.R.S. employer identification number)

Cupey Center Building,	Road 176, Kilometer 1.3,
San Juan,	Puerto Rico	00926
(Address of principal executive offices)		(Zip Code)

(787) 759-9999

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	EVTC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

At July 25, 2024, there were 63,978,849 outstanding shares of common stock of EVERTEC, Inc.

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TABLE OF CONTENTS


		Page
Part I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	1
	Unaudited Condensed Consolidated Statements of Income and Comprehensive (Loss) Income for the three and six months ended June 30, 2024 and 2023	3
	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023	4
	Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023	5
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	39
Item 4.	Controls and Procedures	40
Part II. OTHER INFORMATION		41
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosures	41
Item 5.	Other Information	41
Item 6.	Exhibits	42
SIGNATURES		43

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FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Report”) contains “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact contained in this Report, including, without limitation, statements regarding our position as a leader within our industry; our future results of operations and financial position; our business strategies; objectives of management for future operations, including, among others, statements regarding our expected growth, international expansion and future capital expenditures; the impact of market conditions and other macroeconomic factors on our business, financial condition and results of operations; the sufficiency of our cash and cash equivalents; our future capital expenditures and debt service obligations; and the expectations, anticipated benefits of and costs associated with acquisitions, are forward-looking statements.

Words such as “believes,” “expects,” "anticipates," "intends," "projects," “estimates,” and “plans” and similar expressions of future or conditional verbs such as "will," "should," "would," "may," and "could" or the negatives of these terms or variations of them or similar terminology are generally forward-looking in nature and not historical facts. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of various factors. Among the factors that significantly impact our business and could impact our business in the future are:

•our reliance on our relationship with Popular, Inc. (“Popular”) for a significant portion of our revenues pursuant to our second Amended and Restated Master Services Agreement (“A&R MSA”) with them, and as it may impact our ability to grow our business;

•our ability to renew our client contracts on terms favorable to us, including but not limited to the current term and any extension of the MSA with Popular;

•our dependence on our processing systems, technology infrastructure, security systems and fraudulent payment detection systems, as well as on our personnel and certain third parties with whom we do business, and the risks to our business if our systems are hacked or otherwise compromised;

•our ability to develop, install and adopt new software, technology and computing systems;

•a decreased client base due to consolidations and/or failures in the financial services industry;

•the credit risk of our merchant clients, for which we may also be liable;

•the continuing market position of the ATH network;

•a reduction in consumer confidence, whether as a result of a global economic downturn or otherwise, which leads to a decrease in consumer spending;

•our dependence on credit card associations, including any adverse changes in credit card association or network rules or fees;

•changes in the regulatory environment and changes in macroeconomic, market, international, legal, tax, political, or administrative conditions, including inflation or the risk of recession;

•the geographical concentration of our business in Puerto Rico, including our business with the government of Puerto Rico and its instrumentalities, which are facing severe political and fiscal challenges;

•additional adverse changes in the general economic conditions in Puerto Rico, whether as a result of the government’s debt crisis or otherwise, including the continued migration of Puerto Ricans to the U.S. mainland, which could negatively affect our customer base, general consumer spending, our cost of operations and our ability to hire and retain qualified employees;

•operating an international business in Latin America, Puerto Rico and the Caribbean, in jurisdictions with potential political and economic instability;

•the impact of foreign exchange rates on operations;

•our ability to protect our intellectual property rights against infringement and to defend ourselves against claims of infringement brought by third parties;

•our ability to comply with U.S. federal, state, local and foreign regulatory requirements;

•evolving industry standards and adverse changes in global economic, political and other conditions;

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•our level of indebtedness and the impact of rising interest rates, restrictions contained in our debt agreements, including the secured credit facilities, as well as debt that could be incurred in the future;

•our ability to protect our IT systems and prevent a cybersecurity attack or breach to our information security;

•the possibility that we could lose our preferential tax rate in Puerto Rico;

•our ability to integrate Sinqia S.A. ("Sinqia") successfully into the Company or to achieve expected accretion to our earnings per common share;

•any loss of personnel or customers in connection with the acquisition of Sinqia; and

•any possibility of future catastrophic hurricanes, earthquakes and other potential natural disasters affecting our main markets in Latin America, Puerto Rico and the Caribbean.

These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should, therefore, be considered in light of various factors, including those set forth under Part 1, Item 1A. "Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on February 29, 2024 and in Part I, Item 2.“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Report, as may be updated in our subsequent filings with the SEC. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless it is required to do so by law.

WHERE YOU CAN FIND MORE INFORMATION

All reports we file with the SEC are available free of charge via the Electronic Data Gathering Analysis and Retrieval (EDGAR) System on the SEC’s website at www.sec.gov. We also provide copies of our SEC filings at no charge upon request and make electronic copies of our reports available for download through our website at www.evertecinc.com as soon as reasonably practicable after filing such material with the SEC.

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EVERTEC, Inc. Unaudited Condensed Consolidated Balance Sheets

(In thousands, except share information)


	June 30, 2024		December 31, 2023
Assets
Current Assets:
Cash and cash equivalents	$	257,699	$	295,600
Restricted cash	24,434		23,073
Accounts receivable, net	122,278		126,510
Settlement assets	64,922		51,467
Prepaid expenses and other assets	61,444		64,704
Total current assets	530,777		561,354
Debt securities available-for-sale, at fair value	1,725		2,095
Equity securities, at fair value	4,960		9,413
Investment in equity investees	22,860		21,145
Property and equipment, net	65,769		62,453

Operating lease right-of-use asset	12,756		14,796
Goodwill	741,645		791,700
Other intangible assets, net	451,637		518,070
Deferred tax asset	23,851		47,847
Derivative asset	7,241		4,385

Other long-term assets	26,700		27,005
Total assets	$	1,889,921	$	2,060,263
Liabilities and stockholders’ equity
Current Liabilities:
Accrued liabilities	$	114,417	$	129,160
Accounts payable	60,122		66,516
Contract liability	18,894		21,055
Income tax payable	4,222		3,402
Current portion of long-term debt	23,867		23,867


Current portion of operating lease liability	7,408		6,693
Settlement liabilities	62,041		47,620

Total current liabilities	290,971		298,313
Long-term debt	936,001		946,816
Deferred tax liability	46,148		87,916
Contract liability - long term	54,136		41,825
Operating lease liability - long-term	6,697		9,033

Other long-term liabilities	30,438		40,984
Total liabilities	1,364,391		1,424,887
Commitments and contingencies (Note 14)
Redeemable non-controlling interests	38,455		36,968
Stockholders’ equity
Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued	—		—
Common stock, par value $0.01; 206,000,000 shares authorized; 64,446,211 shares issued and outstanding as of June 30, 2024 (December 31, 2023 - 65,450,799)	644		654
Additional paid-in capital	10,777		36,527
Accumulated earnings	541,248		538,903
Accumulated other comprehensive (loss) income, net of tax	(69,239)		18,209
Total stockholders’ equity	483,430		594,293
Non-redeemable non-controlling interest	3,645		4,115
Total equity	487,075		598,408
Total liabilities and equity	$	1,889,921	$	2,060,263

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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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EVERTEC, Inc. Unaudited Condensed Consolidated Statements of Income and Comprehensive (Loss) Income

(In thousands, except per share information)


	Three months ended June 30,				Six months ended June 30,
	2024		2023			2024		2023

Revenues	$	211,978	$	167,076		$	417,296	$	326,890





Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization	97,481		80,452			199,929		156,869
Selling, general and administrative expenses	38,187		29,522			73,813		53,397
Depreciation and amortization	32,950		22,329			67,391		41,761
Total operating costs and expenses	168,618		132,303			341,133		252,027
Income from operations	43,360		34,773			76,163		74,863
Non-operating income (expenses)
Interest income	3,218		2,103			6,578		3,236
Interest expense	(18,709)		(5,640)			(38,648)		(11,283)
Gain (loss) on foreign currency remeasurement	2,404		333			(2,052)		(4,531)

Earnings from equity method investments	1,096		1,476			2,167		2,631

Other income, net	2,255		1,591			6,095		2,601
Total non-operating expenses	(9,736)		(137)			(25,860)		(7,346)
Income before income taxes	33,624		34,636			50,303		67,517
Income tax expense	1,101		6,586			1,393		9,404
Net income	32,523		28,050			48,910		58,113
Less: Net income (loss) attributable to non-controlling interest	622		(105)			1,030		(94)
Net income attributable to EVERTEC, Inc.’s common stockholders	31,901		28,155			47,880		58,207
Other comprehensive (loss) income, net of tax of $474, $(195), $631 and $(311)
Foreign currency translation adjustments	(64,351)		3,153			(90,827)		20,758
Gain on cash flow hedges	1,034		1,816			3,382		271
Unrealized loss on change in fair value of debt securities available-for-sale	—		—			(3)		(20)
Other comprehensive (loss) income, net of tax	$	(63,317)	$	4,969		$	(87,448)	$	21,009
Total comprehensive (loss) income attributable to EVERTEC, Inc.’s common stockholders	$	(31,416)	$	33,124		$	(39,568)	$	79,216
Net income per common share - basic attributable to EVERTEC, Inc.’s common stockholders	$	0.50	$	0.43		$	0.74	$	0.90
Net income per common share - diluted attributable to EVERTEC, Inc.’s common stockholders	$	0.49	$	0.43		$	0.73	$	0.89

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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EVERTEC, Inc. Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity

(In thousands, except share information)


	Number of Shares of Common Stock	Common Stock		Additional Paid-in Capital		Accumulated Earnings		Accumulated Other Comprehensive Income (Loss)		Non-Controlling Interest (excluding Redeemable Non-Controlling Interest)		Total Stockholders’ Equity
Balance at December 31, 2023	65,450,799	$	654	$	36,527	$	538,903	$	18,209	$	4,115	$	598,408
Share-based compensation recognized	—	—		7,349		—		—		—		7,349
Repurchase of common stock	(1,516,793)	(15)		(30,943)		(39,042)		—		—		(70,000)
Restricted stock units delivered	474,953	5		(9,761)		—		—		—		(9,756)
Net income	—	—		—		16,497		—		(110)		16,387
Cash dividends on common stock, $0.05 per share	—	—		—		(3,273)		—		—		(3,273)
Adjustment of redeemable noncontrolling interest to redemption value	—	—		(3,172)		—		—		—		(3,172)
Excise tax on repurchase of common stock	—	—		—		(550)		—		—		(550)
Other comprehensive loss	—	—		—		—		(24,131)		(23)		(24,154)

Balance at March 31, 2024	64,408,959	$	644	$	—	$	512,535	$	(5,922)	$	3,982	$	511,239
Share-based compensation recognized	—	—		7,660		—		—		—		7,660

Restricted stock units delivered	37,252	—		(69)		—		—		—		(69)
Net income	—	—		—		31,383		—		(73)		31,310
Cash dividends on common stock, $0.05 per share	—	—		—		(3,220)		—		—		(3,220)
Adjustment of redeemable noncontrolling interest to redemption value	—	—		3,186		—		—		—		3,186
Reversal of excise tax on repurchase of common stock	—	—		—		550		—		—		550
Other comprehensive loss	—	—		—		—		(63,317)		(264)		(63,581)

Balance at June 30, 2024	64,446,211	$	644	$	10,777	$	541,248	$	(69,239)	$	3,645	$	487,075

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	Number of Shares of Common Stock	Common Stock		Additional Paid-in Capital		Accumulated Earnings		Accumulated Other Comprehensive (Loss) Income		Non-Controlling Interest (excluding Redeemable Non-Controlling Interest)		Total Stockholders’ Equity
Balance at December 31, 2022	64,847,233	$	648	$	—	$	487,349	$	(16,486)	$	3,237	$	474,748
Share-based compensation recognized	—	—		5,557		—		—		—		5,557
Repurchase of common stock	(187,976)	(1)		—		(6,268)		—		—		(6,269)
Restricted stock units delivered	419,205	4		(5,557)		(321)		—		—		(5,874)
Net income	—	—		—		30,052		—		11		30,063
Cash dividends on common stock, $0.05 per share	—	—		—		(3,249)		—		—		(3,249)
Other comprehensive income	—	—		—		—		16,040		125		16,165

Balance at March 31, 2023	65,078,462	$	651	$	—	$	507,563	$	(446)	$	3,373	$	511,141
Share-based compensation recognized	—	—		6,499		—		—		—		6,499
Repurchase of common stock	(268,398)	(3)		(6,418)		(3,100)		—		—		(9,521)
Restricted stock units delivered	29,045	—		(81)		—		—		—		(81)
Net income (loss)	—	—		—		28,155		—		(105)		28,050
Cash dividends on common stock, $0.05 per share	—	—		—		(3,254)		—		—		(3,254)
Other comprehensive income	—	—		—		—		4,969		339		5,308
Balance at June 30, 2023	64,839,109	$	648	$	—	$	529,364	$	4,523	$	3,607	$	538,142

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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EVERTEC, Inc. Unaudited Condensed Consolidated Statements of Cash Flows

(In thousands)


	Six months ended June 30,
	2024		2023
Cash flows from operating activities
Net income	48,910		$	58,113
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	67,391		41,761
Amortization of debt issue costs and accretion of discount	2,361		791
Operating lease amortization	3,565		3,103



Deferred tax benefit	(13,324)		(3,467)
Share-based compensation	15,009		12,056

Gain on sale of equity securities	(2,599)		—

Earnings of equity method investment	(2,167)		(2,631)



Loss on foreign currency remeasurement	2,052		4,531
Other, net	(1,666)		4,124
(Increase) decrease in assets:
Accounts receivable, net	1,329		1,261

Prepaid expenses and other assets	(431)		(628)
Other long-term assets	(734)		(2,282)
Increase (decrease) in liabilities:
Accrued liabilities and accounts payable	3,101		16,392

Income tax payable	1,103		(10,027)
Contract liability	11,561		1,181
Operating lease liabilities	(1,672)		(3,035)
Other long-term liabilities	(2,449)		(592)
Total adjustments	82,430		62,538
Net cash provided by operating activities	131,340		120,651
Cash flows from investing activities

Additions to software	(39,106)		(24,151)

Property and equipment acquired	(17,226)		(11,305)




Proceeds from maturities of available-for-sale debt securities	370		—
Purchase of equity securities	(111)		—
Proceeds from sale of equity securities	5,906		—
Acquisitions, net of cash acquired	—		(22,915)
Net cash used in investing activities	(50,167)		(58,371)
Cash flows from financing activities


Withholding taxes paid on share-based compensation	(9,825)		(5,955)


Net decrease in short-term borrowings	—		(20,000)

Dividends paid	(6,493)		(6,503)

Repurchase of common stock	(70,000)		(15,790)
Repayment of long-term debt	(11,933)		(10,375)
Repayment of other financing agreements	(7,046)		—
Settlement activity, net	21,703		5,587
Other financing activities, net	(2,182)		—
Net cash used in financing activities	(85,776)		(53,036)
Effect of foreign exchange rate on cash, cash equivalents and restricted cash	(10,234)		(1,841)
Net (decrease) increase in cash, cash equivalents and restricted cash	(14,837)		7,403

Cash, cash equivalents, restricted cash and cash included in settlement assets at beginning of the period	343,724		221,244



Cash, cash equivalents, restricted cash, and cash included in settlement assets at end of the period	$	328,887	$	228,647

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Notes to Unaudited Condensed Consolidated Financial Statements


Note 1 - The Company and Basis of Presentation			8
Note 2 - Business Acquisition			8
Note 3 – Property and Equipment, net			10
Note 4 - Goodwill and Other Intangible Assets			10
Note 5 - Debt and Short-Term Borrowings			11
Note 6 - Financial Instruments and Fair Value Measurements			13
Note 7 - Redeemable Non-Controlling Interests			15
Note 8 - Equity			15
Note 9 - Share-based Compensation			16
Note 10 - Revenues			18
Note 11 - Current Expected Credit Losses			18
Note 12 - Income Tax			19
Note 13 - Net Income per Common Share			20
Note 14 - Commitments and Contingencies			21
Note 15 - Segment Information			21
Note 16 - Supplemental Statement of Cash Flows Information			25
Note 17 - Subsequent Events			25

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Note 1 – The Company and Basis of Presentation

The Company

EVERTEC, Inc. and its subsidiaries (collectively the “Company” or “EVERTEC”) is a leading full-service transaction-processing business and financial technology provider in Latin America, Puerto Rico and the Caribbean. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment services and business process management services. The Company operates across 26 countries in the region. EVERTEC owns and operates the ATH network, which we believe is one of the leading personal identification number debit networks in the Caribbean and Latin America. In addition, EVERTEC provides a comprehensive suite of services for core banking, cash processing and fulfillment in Puerto Rico and technology outsourcing in all the regions the Company serves. EVERTEC serves a broad and diversified customer base of leading financial institutions, merchants, corporations, and government agencies with solutions that are essential to their operations.

Basis of Presentation

The unaudited condensed consolidated financial statements of EVERTEC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The preparation of the accompanying unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements. Actual results could differ from these estimates.

Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted from these statements pursuant to the rules and regulations of the Securities and Exchange Commission and, accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2023, included in the Company’s 2023 Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements, prepared in accordance with GAAP, contain all adjustments necessary for a fair presentation. Intercompany accounts and transactions are eliminated in consolidation. Certain amounts from prior periods have been reclassified to conform to the current period presentation.

Change in presentation

During the second quarter of 2024, the Company elected to change the manner in which it presents cash flows associated with settlement activities from operating activities to financing activities within the condensed consolidated statements of cash flows. In connection with this change, the Company reclassified comparative amounts for the six-month period ended June 30, 2023. Settlement cash and cash equivalents represents cash received from agents, payment networks, bank partners, merchants or direct consumers. In certain cases, the amounts may be invested into short-term, highly liquid investments from the time the funds are collected until payments are made to the applicable recipients. This change does not have an impact on the condensed consolidated balance sheet, the condensed consolidated statement of income and comprehensive (loss) income or on the condensed consolidated statement of changes in stockholders’ equity.

The following table presents the effects of the change in presentation within the condensed consolidated statements of cash flows:


	For the six months ended June 30, 2023
(In Thousands)	As Previously Reported	Adjustment	As Adjusted
Cash flows from operating activities:
Accrued liabilities and accounts payable	21,979	(5,587)	16,392
Net cash provided by operating activities	126,238	(5,587)	120,651
Cash flows from financing activities:
Settlement activities, net	—	5,587	5,587
Net cash used in financing activities	(58,623)	5,587	(53,036)

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Note 2 – Business Acquisition

Acquisition of a Business

On November 1, 2023, the Company completed the acquisition of 100% of the outstanding shares of Sinqia S.A. (“Sinqia”), a publicly held company incorporated and existing in accordance with the laws of the Federative Republic of Brazil. The Company completed the acquisition through its wholly-owned subsidiary, Evertec Brasil Informática S.A (“Evertec BR”). In accordance with ASC 805-10-25-15, Evertec is allowed a period, not to exceed 12 months from the acquisition date, to adjust the provisional amounts recognized for a business combination. During 2024, the Company adjusted the operating lease right-of-use asset, goodwill, long-term deferred tax asset, operating lease liability, deferred tax liability and other intangible assets as a result of additional information that became available during the period. The preliminary purchase price allocation based on the applicable exchange rate at the date of acquisition is as follows:


	Assets/Liabilities (at fair value)
( In thousands)
Cash and cash equivalents	$	37,147
Restricted cash	2,166
Accounts receivable, net	9,989
Prepaid expenses and other assets	5,975
Property and equipment, net	3,618
Operating lease right-of-use asset	3,191
Goodwill	341,801
Equity securities, at fair value	9,035
Long-term deferred tax asset	28,758
Other intangible assets, net	289,540
Other long-term assets	5,455
Total assets acquired	$	736,675
Accounts payable	13,241
Accrued liabilities	40,775
Operating lease liability	4,114
Current portion of long-term debt	11,400
Long-term debt	57,492
Contract liability	7,356
Deferred tax liability	76,150
Other long-term liabilities	15,134
Total liabilities assumed	$	225,662
Redeemable noncontrolling interests	39,340
Additional paid-in capital	471,673
Total liabilities and equity	$	736,675

The following table details the major groups of intangible assets acquired and the weighted average amortization period for these assets:


	Amount		Weighted-average life
(Dollar amounts in thousands)
Customer relationships	$	155,876	18
Trademark	47,688		10
Software packages	85,976		10
Total	$	289,540	14

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Refer to Note 4- Goodwill and Other Intangible Assets for detail of goodwill allocated by reportable segments. The goodwill is primarily attributed to selling the Company's products and services to Sinqia's client base, exporting Sinqia's products to other markets where the Company has presence and the assembled workforce. Currently, a portion of goodwill related to previous Sinqia acquisitions is deductible for income tax purposes on a statutory basis. The Company continues to finalize the purchase price allocation and further changes to the preliminary allocation may be required.

Note 3 – Property and Equipment, net

Property and equipment, net consisted of the following:


(Dollar amounts in thousands)	Useful life in years	June 30, 2024		December 31, 2023
Buildings	30	$	2,104	$	2,193
Data processing equipment	3 - 5	198,263		187,761
Furniture and equipment	3 - 20	10,335		10,281
Leasehold improvements	5 -10	5,145		4,876
		215,847		205,111
Less - accumulated depreciation and amortization		(151,526)		(144,117)
Depreciable assets, net		64,321		60,994
Land		1,448		1,459
Property and equipment, net		$	65,769	$	62,453

Depreciation and amortization expense related to property and equipment for the three and six months ended June 30, 2024 amounted to $5.4 million and $11.1 million, respectively, compared to $5.5 million and $10.5 million for the corresponding periods in 2023.

Note 4– Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill, allocated by operating segments, were as follows (see Note 15):


(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Total
Balance at December 31, 2023	$	160,972	$	452,597	$	138,121	$	40,010	$	791,700


Adjustment to goodwill from prior year acquisition	—		(1,352)		—		—		(1,352)
Foreign currency translation adjustments	—		(48,703)		—		—		(48,703)
Balance at June 30, 2024	$	160,972	$	402,542	$	138,121	$	40,010	$	741,645

Goodwill is tested for impairment on an annual basis as of August 31, or more often if events or changes in circumstances indicate there may be impairment. The Company may test for goodwill impairment using a qualitative or a quantitative analysis. In a qualitative analysis, the Company assesses whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount. In the quantitative analysis, the Company compares the estimated fair value of the reporting units to their carrying values, including goodwill. No impairment losses were recognized for the periods ended June 30, 2024 or 2023.

The carrying amount of other intangible assets at June 30, 2024 and December 31, 2023 was as follows:

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		June 30, 2024
(Dollar amounts in thousands)	Useful life in years	Gross amount		Accumulated amortization		Net carrying amount
Customer relationships	8 - 20	$	550,381	$	(373,726)	$	176,655
Trademarks	10 - 15	88,097		(46,238)		$	41,859
Software packages	3 - 10	522,934		(292,938)		$	229,996
Non-compete agreement	5	3,555		(428)		$	3,127
Other intangible assets, net		$	1,164,967	$	(713,330)	$	451,637


		December 31, 2023
(Dollar amounts in thousands)	Useful life in years	Gross amount		Accumulated amortization		Net carrying amount
Customer relationships	8 - 20	$	568,284	$	(340,952)	$	227,332
Trademarks	1 - 15	94,203		(41,319)		52,884
Software packages	3 - 10	510,898		(274,610)		236,288
Non-compete agreement	5	1,735		(169)		1,566
Other intangible assets, net		$	1,175,120	$	(657,050)	$	518,070

Amortization expense related to other intangibles for the three and six months ended June 30, 2024 amounted to $27.6 million and $56.3 million, respectively, compared to $14.9 million and $31.2 million for the corresponding periods in 2023.

The estimated amortization expense of the other intangible balances outstanding at June 30, 2024, for the remainder of 2024 and the years thereafter is as follows:


(In thousands)
Remaining 2024	$	54,782
2025	87,631
2026	74,283
2027	61,724
2028	49,983
Thereafter	123,234

Note 5 – Debt and Short-Term Borrowings

Debt at June 30, 2024 and December 31, 2023 was as follows:


(In thousands)	June 30, 2024		December 31, 2023
2027 Term A Loan bearing interest at a variable interest rate (SOFR plus applicable margin(1)(2))	$	438,021	$	449,450


2030 Term B Loan bearing interest at a variable interest rate (SOFR plus applicable margin(1)(3))	521,847		521,233

Deferred consideration from Business Combinations	11,505		19,467

Note payable due September 1, 2030(1)	7,325		7,403
Total debt	$	978,698	$	997,553

(1)Net of unaccreted discount and unamortized debt issue costs, as applicable.

(2)Subject to a minimum rate ("SOFR floor") of 0.00% plus applicable margin of 2.00% at June 30, 2024 and 1.50% at December 31, 2023.

(3)Subject to a SOFR floor of 0.50% plus applicable margin of 3.25% at June 30, 2024 and an applicable margin of 3.50% at December 31, 2023.

Secured Credit Facilities

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On December 1, 2022, EVERTEC and EVERTEC Group, entered into a credit agreement with a syndicate of lenders and Truist Bank, as administrative agent and collateral agent, providing for (i) a $415.0 million term loan A facility that matures on December 1, 2027, and a $200.0 million revolving credit facility (the “Revolving Facility”) that matures on December 1, 2027. On October 30, 2023, Evertec, EVERTEC Group and other Loan Parties (as defined in the Existing Credit Agreement) party thereto, entered into a first amendment (the “Amendment”) to the credit agreement, dated as of December 1, 2022 (the “Existing Credit Agreement,” and as amended by the Amendment, the “Amended Credit Agreement”), with a syndicate of lenders and Truist, as administrative agent and collateral agent. Under the Amended Credit Agreement, a syndicate of financial institutions and other lenders provided (i) additional term loan A commitments in the amount of $60.0 million and (ii) a new tranche of term loan B commitments in the amount of $600.0 million (the “TLB Facility,” and together with the Incremental TLA Facility, the “Facilities”). The $600.0 million term loan B facility matures on October 30, 2030. Unless otherwise indicated, the terms and conditions detailed below apply to both the TLA facility and TLB facility. In the fourth quarter of 2023, the Company prepaid $60 million of the outstanding balance on TLB facility.

At June 30, 2024, the unpaid principal balance of the TLA Facility and TLB Facility were $441.5 million and $540.0 million, respectively. The additional borrowing capacity for the Revolving Facility at June 30, 2024 was $194.0 million, considering letters of credit issued. The Company issues letters of credit against the Revolving Facility which reduce the additional borrowing capacity of the Revolving Facility.

Deferred Consideration from Business Combinations

As part of the Company’s merger and acquisition activities, the Company may enter into agreements by which a portion of the purchase price is financed directly by the seller. At June 30, 2024 and December 31, 2023, the unpaid principal balance of these agreements amounted to $11.5 million and $19.5 million, respectively. Obligations bear interest at rates ranging from 2% to 12% with maturities ranging from October 2024 through March 2027. The current portion of the deferred consideration is included in accounts payable and the long-term portion is included in other long-term liabilities on the Company's unaudited condensed consolidated balance sheet.

Note Payable

In September 2023, EVERTEC Group entered into a non-interest bearing financing agreement amounting to $10.1 million to purchase software and maintenance which the Company recorded on a discounted basis using an implied interest of 6.9%. As of June 30, 2024, the outstanding principal balance of the note payable on a discounted basis was $7.3 million. The current portion of the note is included in accounts payable and the long-term portion is included in other long-term liabilities on the Company's unaudited condensed consolidated balance sheet.

Interest Rate Swaps

As of June 30, 2024, the Company has four interest rate swap agreements which convert a portion of the interest rate payments on the Company's Term Loan Facilities from variable to fixed. The interest rate swaps are used to hedge the market risk from changes in interest rates corresponding with the Company's variable rate debt. The interest rate swaps are designated as cash flow hedges and are considered highly effective. Cash flows from the interest rate swaps are included in the accrued liabilities and accounts payable line item in the Company's unaudited condensed consolidated statements of cash flows. Changes in the fair value of the interest rate swaps are recognized in other comprehensive (loss) income until the gains or losses are reclassified to earnings. Gains or losses reclassified to earnings are presented within interest expense in the accompanying condensed consolidated statements of income and comprehensive (loss) income.

Swap Agreement

Effective date

Maturity Date

Notional Amount

Variable Rate

Fixed Rate

2018 Swap

April 2020

November 2024

$250 million

1-month SOFR

2.929%

2023 Swap

November 2024

December 2027

$250 million

1-month SOFR

3.375%

2024 Swap

March 2024

October 2027

$150 million

1-month SOFR

4.182%

2024 Swap

March 2024

October 2027

$150 million

1-month SOFR

4.172%

At June 30, 2024, the carrying amount of the derivatives included on the Company's unaudited condensed consolidated balance sheet was an asset of $7.2 million. At December 31, 2023, the carrying amount of the derivatives included on the Company's unaudited condensed consolidated balance sheet was an asset of $4.4 million and a liability of $0.9 million, included in other long-term liabilities. The fair value of these derivatives are estimated using Level 2 inputs in the fair value hierarchy on a recurring basis. Refer to Note 8 for disclosure of gains (losses) recorded on cash flow hedging activities.

During the three and six months ended June 30, 2024, the Company reclassified gains of $2.4 million and $4.1 million, respectively, from accumulated other comprehensive (loss) income into interest expense compared to gains of $1.4 million and

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$2.4 million, respectively, for the corresponding periods in 2023. Based on current SOFR rates, the Company expects to reclassify gains of $5.7 million from accumulated other comprehensive (loss) income into interest expense over the next 12 months.

Note 6 – Financial Instruments and Fair Value Measurements

Recurring Fair Value Measurements

The following table presents assets and liabilities measured at fair value on a recurring basis at June 30, 2024 and December 31, 2023:


	June 30, 2024								December 31, 2023
(In thousands)	Level 2		Level 3		Measured at NAV		Total		Level 2		Level 3		Total
Financial assets:
Debt securities AFS	$	1,725	$	—	$	—	$	1,725	$	2,095	$	—	$	2,095
Equity securities	—		—		4,960		4,960		6,447		2,966		9,413
Interest rate swaps	7,241		—		—		7,241		4,385		—		4,385
Financial liabilities:
Interest rate swaps	—		—		—		—		900		—		900

Debt Securities Available for Sale ("AFS")

Costa Rica Government Obligations are held by a trust in the Costa Rica National Bank as a collateral requirement for settlement activities. The Company may substitute securities as needed but must maintain certain levels of collateral based on transaction volumes. No debt securities were purchased or sold during the six-month periods ended June 30, 2024 or June 30, 2023. Debt securities amounting to $0.4 million matured during the six-month period ended June 30, 2024, none in 2023. A provision for credit losses was not required for either June 30, 2024 or 2023.

The fair value of debt securities is estimated based on observable inputs through corroboration with market data at the measurement date, therefore classified as a Level 2 asset within the fair value hierarchy.

Interest rate swaps

The fair value of the Company's interest rate swaps are estimated using Level 2 inputs under the fair value hierarchy. Refer to Note 5 for additional information related to the derivative instruments.

Equity Securities

The fair value of the equity securities was calculated based on enterprise value to revenue multiples ranging from 0.4x to 8.3x, therefore classified as a Level 3 asset within the fair value hierarchy. During the six-month period ended June 30, 2024, the Company sold equity securities with a carrying value of $5.5 million classified as Level 3 assets within the fair value hierarchy. In connection with this sale, the Company realized a gain of $2.5 million, recognized through other income, net. At June 30, 2024, the Company no longer holds equity securities classified as Level 3. The fair value of the equity securities was $3.0 million at December 31, 2023. At December 31, 2023, mutual funds classified as equity securities, were registered with the securities and exchange commission in Brazil and were broker traded and therefore classified as Level 2.

The following table presents the changes in equity securities classified as Level 3 assets:


(In thousands)	Equity Securities
Balance at December 31, 2023	$	2,966
Disposition of equity securities	(5,487)
Change in fair value of equity securities, recognized through Other income, net	2,521

Balance at June 30, 2024	$	—

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There were no transfers in or out of Level 3 during the six-month periods ended June 30, 2024 or June 30, 2023.

Equity Securities Measured at Net Asset Value (NAV)

At June 30, 2024, the Company holds mutual funds classified as equity securities on the Company's unaudited condensed consolidated balance sheet that are measured at fair value using the NAV per share, or its equivalent, as a practical expedient. Mutual funds consist of investments in venture capital strategies and start-ups with a focus on privately held technology companies. The NAV is based on the fair value of the underlying net assets owned by the mutual funds and the relative interest of each participating investor in the fair value of the underlying assets.

Financial assets and liabilities not measured at fair value

The following table presents the carrying value and estimated fair value for financial instruments at June 30, 2024 and December 31, 2023:


	June 30, 2024		December 31, 2023
(In thousands)	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Financial liabilities:
2027 Term A Loan Facility	438,021	443,745	449,450	452,337
2030 Term B Loan Facility	521,847	542,700	521,240	539,325

The fair value of the term loans at June 30, 2024 and December 31, 2023 was obtained using prices provided by third party service providers. Their pricing is based on various inputs such as market quotes, recent trading activity in a non-active market or imputed prices. These inputs are considered Level 3 inputs under the fair value hierarchy. Also, the pricing may include the use of an algorithm that could take into account movements in the general high yield market, among other variants. The secured term loans are not accounted for at fair value in the balance sheet.

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Note 7 – Redeemable Noncontrolling Interests

At June 30, 2024, redeemable noncontrolling interests ("RNCI") consist of interests in consolidated subsidiaries for which the Company has entered into separate option contracts by which the Company has the right to purchase the remaining non-controlling interests through a call option and the non-controlling interest holder has the right to sell the non-controlling interest to the Company through a put option. The following table summarizes the terms of the issued options:

Percentage of redeemable noncontrolling interest

Earliest exercise date

Formula of redemption value

Homie Do Brasil Informatica

40%

April 1, 2025

Variable multiple of gross sales dependent upon EBITDA margin and gross sales attained times percentage of ownership

Rosk Software S.A.

49%

March 15, 2025

Variable multiple of gross sales dependent upon EBITDA margin attained times percentage of ownership

Compliasset Software e Solucoes Digitais LTDA.

40%

March 15, 2026

Variable multiple of net sales dependent upon EBITDA margin attained plus net debt times percentage of ownership

Lote45 Participacoes S.A.

48%

January 1, 2027

Variable multiple of net sales dependent upon EBITDA margin attained plus net debt minus BRL$10.0 million times percentage of ownership

Given certain provisions within the option contracts, the Company has classified the RNCI as mezzanine equity on the Company's unaudited condensed consolidated balance sheets. RNCI are adjusted quarterly, if necessary, to their estimated redemption value. Adjustments to the redemption value impact stockholders' equity. The following table presents changes in RNCI:


(In thousands)	Redeemable noncontrolling interests
Balance at December 31, 2023	$	36,968
Net income attributable non-controlling interests	1,213
Adjustment of redeemable non-controlling interests to redemption value	(14)

Distributions from redeemable non-controlling interests	(294)
Foreign currency translation adjustments	582
Balance at June 30, 2024	$	38,455

Note 8 – Equity

Accumulated Other Comprehensive (Loss) Income

The following table provides a summary of the changes in the balances of accumulated other comprehensive (loss) income for the six months ended June 30, 2024:


(In thousands)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Unrealized Gains (Losses) on Debt Securities AFS		Total
Balance - December 31, 2023, net of tax	$	14,847	$	3,336	$	26	$	18,209
Other comprehensive (loss) income before reclassifications	(90,827)		7,522		(3)		(83,308)
Effective portion reclassified to net income	—		(4,140)		—		(4,140)
Balance - June 30, 2024, net of tax	$	(75,980)	$	6,718	$	23	$	(69,239)

Share Repurchase

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the launch of the ASR, on March 8, 2024, the Company paid Bank of America, N.A., an aggregate of $70 million and received approximately 1.5 million shares of the Company’s common stock. The final number of shares to be received under the ASR agreement will be determined upon completion of the transaction and will be based on the total transaction value and the average of the daily volume-weighted average share price of the Company’s common stock during the term of the transaction. Final settlement of the transaction occurred on July 9, 2024, for further details refer to Note 17 - Subsequent Events. The Company accounted for this contract as an equity contract.

Note 9 – Share-based Compensation

Long-term Incentive Plan ("LTIP")

During the three months ended March 31, 2022, 2023 and 2024, the Compensation Committee (the "Compensation Committee") of the Company's Board of Directors ("Board") approved grants of restricted stock units (“RSUs”) to executives and certain employees pursuant to the 2022 LTIP, 2023 LTIP and 2024 LTIP, respectively, all under the terms of the Company's 2022 Equity Incentive Plan. Under the LTIPs, the Company granted RSUs to eligible participants as time-based awards and/or performance-based awards.

The vesting of the RSUs is dependent upon service and/or performance conditions as defined in the award agreements. Employees that received time-based awards with service conditions are entitled to receive a specific number of shares of the Company’s common stock on the vesting date if the employee provides services to the Company through the vesting date. Time-based awards generally vest over a period of three years in substantially equal installments commencing on the grant date and ending on February 25 of each year for the 2022 LTIP, February 24 of each year for the 2023 LTIP and February 28 of each year for the 2024 LTIP. In 2022 and 2023, the Company also granted time-based awards with a three year service vesting period which will cliff vest on February 25, 2025 and February 24, 2026, respectively.

For the performance-based awards under the 2022 LTIP, 2023 LTIP, and 2024 LTIP, the Compensation Committee established adjusted earnings before interest, income taxes, depreciation and amortization ("Adjusted EBITDA") as the primary performance measure while maintaining focus on total shareholder return through the use of a market-based total shareholder return ("TSR") performance modifier. The Adjusted EBITDA measure is based on annual Adjusted EBITDA targets and can result in a payout between 0% and 200%, depending on the performance level. The TSR modifier adjusts the shares earned based on the Adjusted EBITDA performance upwards or downwards (+/- 25%) based on the Company’s relative TSR at the end of the three-year performance period as compared to the companies in the Russell 2000 Index. The Adjusted EBITDA performance measure will be calculated for the one-year period commencing on January 1 of the year of the grant and ending on December 31 of the same year, relative to the goals set by the Compensation Committee for this same period. The shares earned will be subject to an additional two-year service vesting period and will vest on February 25, 2025 for the 2022 LTIP, February 24, 2026 for the 2023 LTIP and February 28, 2027 for the 2024 LTIP. Unless otherwise specified in the award agreement, or in an employment agreement, awards are forfeited if the employee voluntarily ceases to be employed by the Company prior to vesting.

The following table summarizes nonvested RSUs activity for the six months ended June 30, 2024:


Nonvested RSUs	Shares	Weighted-average grant date fair value
Nonvested at December 31, 2023	1,799,012	$	39.42
Granted	1,146,952	36.81
Vested	(778,201)	36.83
Forfeited	(63,493)	38.16
Nonvested at June 30, 2024	2,104,270	$	38.56

For the three and six months ended June 30, 2024, the Company recognized $7.7 million and $15.0 million of share-based compensation expense, compared with $6.5 million and $12.1 million for the corresponding periods in 2023.

As of June 30, 2024, the maximum unrecognized cost for RSUs was $54.9 million. The cost is expected to be recognized over a weighted average period of 2.3 years.

Note 10 – Revenues

Disaggregation of Revenue

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The Company disaggregates revenue from contracts with customers into primary geographical markets, nature of the 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 the Company provides and the primary geographical markets in which the Company operates. Revenue disaggregated by segment is discussed in Note 15, Segment Information.

In the following tables, revenue for each segment, excluding intersegment revenues, is disaggregated by timing of revenue

recognition for the periods indicated.



	Three months ended June 30, 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	$	78	$	996	$	—	$	1,653	$	2,727
Products and services transferred over time	34,735		68,514		45,319		60,683		$	209,251
	$	34,813	$	69,510	$	45,319	$	62,336	$	211,978



	Three months ended June 30, 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	$	125	$	639	$	—	$	1,930	$	2,694
Products and services transferred over time	33,983		34,110		41,248		55,041		164,382
	$	34,108	$	34,749	$	41,248	$	56,971	$	167,076


	Six months ended June 30, 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	$	110	$	1,553	$	—	$	4,128	$	5,791
Products and services transferred over time	68,647		138,104		88,418		116,336		$	411,505
	$	68,757	$	139,657	$	88,418	$	120,464	$	417,296

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	Six months ended June 30, 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	$	238	$	1,253	$	—	$	3,657	$	5,148
Products and services transferred over time	66,349		64,789		81,595		109,009		321,742
	$	66,587	$	66,042	$	81,595	$	112,666	$	326,890

Revenue concentration with a single customer, Popular, as a percentage of total revenues for the quarters ended June 30, 2024 and 2023 was approximately 32% and 37%, respectively. For the six months ended June 30, 2024 and 2023 this percentage was approximately 31% and 37%, respectively. Accounts receivable from Popular at June 30, 2024 and 2023 amounted to $37.0 million and $34.7 million, respectively.

Contract Balances

The following table provides information about contract assets from contracts with customers for the six months ended June 30, 2024 and the year ended December 31, 2023.


(In thousands)	June 30, 2024		December 31, 2023
Balance at beginning of period	$	13,917	$	4,749
Services transferred to customers	15,000		28,165
Transfers to accounts receivable	(16,510)		(18,997)
Balance at end of period	$	12,407	$	13,917

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 unaudited condensed consolidated balance sheets.

Accounts receivable, net at June 30, 2024 amounted to $122.3 million. Contract liability and contract liability - long term at June 30, 2024 amounted to $18.9 million and $54.1 million, respectively, and may arise when consideration is received or due in advance from customers prior to performance. The contract liability is mainly comprised of upfront fees for implementation or set up activities, including fees charged in pre-production periods in connection with hosting services. During the three and six months ended June 30, 2024, the Company recognized revenue of $7.2 million and $15.0 million, respectively, that was included in the contract liability at December 31, 2023. During the three and six months ended June 30, 2023, the Company recognized revenue of $4.3 million and $8.7 million, respectively, that was included in the contract liability at December 31, 2022.

Transaction price allocated to the remaining performance obligations

The estimated aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially satisfied at June 30, 2024 was $860.7 million, which is expected to be recognized over the next 1 to 6 years. This amount consists of minimums on certain master services agreements, professional service fees for implementation or set up activities related to managed services and maintenance services typically recognized over the life of the contract, and professional service fees for customizations or development of on-premise licensing agreements, which are recognized over time based on inputs relative to the total expected inputs to satisfy a performance obligation.

Note 11 – Current Expected Credit Losses

Allowance for Current Expected Credit Losses

Trade receivables from contracts with customers are financial assets analyzed by the Company under the expected credit loss model. To measure expected credit losses, trade receivables are grouped based on shared risk characteristics (i.e., the relevant

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industry sector and customer's geographical location) and days past due (i.e., delinquency status), while considering the following:

•Customers in the same geographical location share similar risk characteristics associated with the macroeconomic environment of their country.

•The Company has two main industry sectors: private and governmental. The private pool is comprised mainly of leading financial institutions, merchants and corporations, while the governmental pool is comprised of government agencies. The governmental customers possess different risk characteristics than private customers because although all invoices are due 30 days after issuance, governmental customers usually pay within 60 to 90 days after issuance (i.e., approximately 30 to 60 more days than private customers).

•The expected credit loss rate is likely to increase as receivables move to older aging buckets. The Company used the following aging categories to estimate the risk of delinquency status: (i) 0 days past due; (ii) 1-30 days past due; (iii) 31-60 days past due; (iv) 61-90 days past due; and (v) over 90 days past due.

The credit losses of the Company’s trade receivables have been low historically and most balances are collected within one year. Therefore, the Company determined that the expected loss rates should be calculated using the historical loss rates adjusted by macroeconomic factors. The historical rates are calculated for each of the aging categories used for pooling trade receivables. To determine the collected portion of each bucket, the collection time of each trade receivable is identified, to estimate the proportion of outstanding balances per aging bucket that ultimately will not be collected. This is used to determine the expectation of losses based on the history of uncollected trade receivables once the specific past due period is surpassed. The historical rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of customers to settle the receivables by applying a country risk premium as the forward-looking macroeconomic factor. Specific reserves are established for certain customers for which collection is doubtful.

Rollforward of the Allowance for Expected Current Credit Losses

The following table provides information about the allowance for expected current credit losses on trade receivables for the six months ended June 30, 2024 and the year ended December 31, 2023



(In thousands)	June 30, 2024		December 31, 2023
Balance at beginning of period	$	4,010	$	2,159
Current period provision for expected credit losses	851		2,218
Write-offs	(1,412)		(384)
Recoveries of amounts previously written-off	1		17
Balance at end of period	$	3,450	$	4,010

The Company does not have a delinquency threshold for writing-off trade receivables. The Company has a formal process for the review and approval of write-offs.

Impairment losses on trade receivables are presented as net impairment losses within cost of revenue, exclusive of depreciation and amortization in the unaudited condensed consolidated statements of income and comprehensive (loss) income. Subsequent recoveries of amounts previously written-off, when applicable, are credited against the allowance for expected current credit losses within accounts receivable, net on the unaudited condensed consolidated balance sheets.

Note 12 – Income Tax

The components of income tax expense for the three and six months ended June 30, 2024 and 2023, respectively, consisted of the following:


	Three months ended June 30,				Six months ended June 30,
(In thousands)	2024		2023		2024		2023

Current tax provision	$	8,705	$	7,845	$	14,717	$	12,871
Deferred tax benefit	(7,604)		(1,259)		(13,324)		(3,467)
Income tax expense	$	1,101	$	6,586	$	1,393	$	9,404

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The Company conducts operations in Puerto Rico, the United States, and certain countries in Latin America. As a result, the income tax expense includes the effect of taxes paid to the government of Puerto Rico as well as foreign jurisdictions. The following table presents the components of income tax expense for the three and six months ended June 30, 2024 and 2023, and its segregation based on location of operations:


	Three months ended June 30,				Six months ended June 30,
(In thousands)	2024		2023		2024		2023

Current tax provision
Puerto Rico	$	1,724	$	2,595	$	2,330	$	3,775
United States	39		47		129		58
Foreign countries	6,942		5,203		12,258		9,038
Total current tax provision	$	8,705	$	7,845	$	14,717	$	12,871
Deferred tax benefit
Puerto Rico	$	(3,666)	$	(189)	$	(7,325)	$	(424)
United States	11		29		2		3
Foreign countries	(3,949)		(1,099)		(6,001)		(3,046)
Total deferred tax benefit	$	(7,604)	$	(1,259)	$	(13,324)	$	(3,467)

Taxes payable to foreign countries by EVERTEC’s subsidiaries is paid by such subsidiary and the corresponding liability and expense will be presented in EVERTEC’s consolidated financial statements.

As of June 30, 2024, the Company had $148.4 million of unremitted earnings from foreign subsidiaries, compared to $137.0 million as of December 31, 2023. The Company has not recognized a deferred tax liability on undistributed earnings for the Company’s foreign subsidiaries because these earnings are intended to be indefinitely reinvested.

As of June 30, 2024, the gross deferred tax asset amounted to $68.6 million and the gross deferred tax liability amounted to $85.8 million, compared to $65.4 million and $100.9 million, respectively, as of December 31, 2023. As of June 30, 2024, and December 31, 2023, there is a valuation allowance against the gross deferred tax asset of approximately $5.1 million and $4.6 million, respectively.

The Company estimates that it is reasonably possible that the liability for uncertain tax position created from acquisitions in foreign jurisdictions will decrease by approximately $2.7 million in the next 12 months as a result of the expiration of the statute of limitations.

Income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following:


	Six months ended June 30,
(In thousands)	2024		2023
Computed income tax at statutory rates	$	18,864	$	25,319
Differences in tax rates due to multiple jurisdictions	2,806		2,350
Effect of income subject to tax-exemption grant	(20,095)		(16,219)

Unrecognized tax expense	(1,192)		69
Excess tax benefits on share-based compensation	(511)		(23)
Tax credits for research and development activities	—		(884)

Other, net	1,521		(1,208)
Income tax expense	$	1,393	$	9,404

Note 13 – Net Income Per Common Share

The reconciliation of the numerator and the denominator of net income per common share is as follows:

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	Three Months Ended June 30,				Six months ended June 30,
(In thousands, except per share information)	2024		2023		2024		2023
Net income available to EVERTEC, Inc.’s common shareholders	$	31,901	$	28,155	$	47,880	$	58,207
Weighted average common shares outstanding	64,420,756		65,046,328		64,800,361		65,007,528
Weighted average potential dilutive common shares (1)	729,988		463,763		899,024		563,925
Weighted average common shares outstanding - assuming dilution	65,150,744		65,510,091		65,699,385		65,571,453
Net income per common share - basic	$	0.50	$	0.43	$	0.74	$	0.90
Net income per common share - diluted	$	0.49	$	0.43	$	0.73	$	0.89

(1)Potential common shares consist of common stock issuable under RSUs awards using the treasury stock method. Shares excluded from the dilution calculation because they were anti-dilutive amounted to 0.4 million for the three and six months periods ended June 30, 2024.

On February 15, 2024 and April 18, 2024 the Company's Board declared quarterly cash dividends of $0.05 per share of common stock, which was paid on March 15, 2024 and June 7, 2024, to stockholders' of record on February 27, 2024 and April 29, 2024.

Note 14 – Commitments and Contingencies

EVERTEC is a defendant in a number of legal proceedings arising in the ordinary course of business. Based on the opinion of legal counsel and other factors, management believes that the final disposition of these matters will not have a material adverse effect on the business, results of operations, financial condition, or cash flows of the Company. The Company has identified certain claims in which a loss may be incurred, but in the aggregate the loss would be insignificant. For other claims, where the proceedings are in an initial phase, the Company is unable to estimate the range of possible loss, if any, but at this time, management believes that any loss related to such claims will not be material.

Note 15 – Segment Information

The Company operates in four business segments: Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, Merchant Acquiring, and Business Solutions.

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 point of sale ("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.

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The Latin America Payments and Solutions segment 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 and digital collection; 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 and management, 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.

In addition to the four operating segments described above, management identified certain functional cost areas that operate independently and do not constitute businesses in themselves. These areas could neither be concluded as operating segments nor could they be combined with any other operating segments. Therefore, these areas are aggregated and presented within the “Corporate and Other” category in the financial statements alongside the operating segments. The Corporate and Other category consists of corporate overhead expenses, intersegment eliminations, certain leveraged activities and other non-operating and miscellaneous expenses that are not included in the operating segments. The overhead and leveraged costs relate to activities such as:

•marketing,

•corporate finance and accounting,

•human resources,

•legal,

•risk management functions,

•internal audit,

•corporate debt related costs,

•non-operating depreciation and amortization expenses generated as a result of merger and acquisition activity,

•intersegment revenues and expenses, and

•other non-recurring fees and expenses that are not considered when management evaluates financial performance at a segment level

The Chief Operating Decision Maker ("CODM") reviews the operating segments separate financial information to assess performance and to allocate resources. Management evaluates the operating results of each of its operating segments based upon revenues and Adjusted EBITDA. Adjusted EBITDA is defined 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 unrealized gains and losses on foreign currency remeasurement for assets and liabilities in non-functional currency. Adjusted EBITDA, as it relates to operating segments, is presented in conformity with ASC Topic 280, Segment Reporting, given that it is reported to the CODM for purposes of allocating resources. Segment asset disclosure is not used by the CODM

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as a measure of segment performance since the segment evaluation is driven by revenues and Adjusted EBITDA. As such, segment assets are not disclosed in the notes to the unaudited condensed consolidated financial statements.

The following tables set forth information about the Company’s operations by its four business segments for the periods indicated:


	Three Months Ended June 30, 2024
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	54,199	$	74,669	$	45,319	$	62,336	$	(24,545)	$	211,978
Operating costs and expenses	31,733		74,353		29,481		37,663		(4,612)		168,618
Depreciation and amortization	7,496		15,051		1,409		3,750		5,244		32,950
Non-operating income	134		5,274		—		151		196		5,755
EBITDA	30,096		20,641		17,247		28,574		(14,493)		82,065
Compensation and benefits (2)	771		1,654		787		906		3,483		7,601
Transaction, refinancing and other (3)	456		(2,359)		214		289		190		(1,210)
Loss (gain) on foreign currency remeasurement (4)	35		(2,436)		—		—		(3)		(2,404)
Adjusted EBITDA	$	31,358	$	17,500	$	18,248	$	29,769	$	(10,823)	$	86,052

(1)Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $14.2 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction-processing of $5.2 million from Latin America Payments and Solutions to both Payment Services- Puerto Rico & Caribbean and Business Solutions, and transaction-processing and monitoring fees of $5.2 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.

(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, the elimination of realized gains from equity securities and the elimination of unrealized earnings from equity investments.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.


	Three Months Ended June 30, 2023
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	50,795	$	39,076	$	41,248	$	56,971	$	(21,014)	$	167,076
Operating costs and expenses	28,895		33,666		27,616		39,097		3,029		132,303
Depreciation and amortization	6,087		5,393		1,150		4,469		5,230		22,329
Non-operating income	115		2,290		1		66		928		3,400
EBITDA	28,102		13,093		14,783		22,409		(17,885)		60,502
Compensation and benefits (2)	842		999		860		965		5,035		8,701
Transaction, refinancing and other(3)	288		253		—		—		5,068		5,609
(Gain) loss on foreign currency remeasurement (4)	(49)		(285)		—		—		1		(333)
Adjusted EBITDA	$	29,183	$	14,060	$	15,643	$	23,374	$	(7,781)	$	74,479

(1)Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $13.4 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction-processing of $4.4 million from Latin America Payments and Solutions to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction-processing and monitoring fees of $3.3 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.

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(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.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.


	Six months ended June 30, 2024
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	107,230	$	148,885	$	88,418	$	120,464	$	(47,701)	$	417,296
Operating costs and expenses	62,685		150,384		58,300		78,114		(8,350)		341,133
Depreciation and amortization	14,758		31,308		2,642		8,188		10,495		67,391
Non-operating income	282		4,109		—		290		1,529		6,210
EBITDA	59,585		33,918		32,760		50,828		(27,327)		149,764
Compensation and benefits (2)	1,469		3,152		1,494		1,691		7,785		15,591
Transaction, refinancing and other fees (3)	723		(5,388)		214		289		984		(3,178)
(Gain) loss on foreign currency remeasurement (4)	(67)		2,115		—		—		4		2,052
Adjusted EBITDA	$	61,710	$	33,797	$	34,468	$	52,808	$	(18,554)	$	164,229

(1)Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $28.8 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction-processing of $9.2 million from Latin America Payments and Solutions to both Payment Services- Puerto Rico & Caribbean and Business Solutions, and transaction-processing and monitoring fees of $9.7 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.

(2)Primarily represents share-based compensation and severance payments.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.


	Six months ended June 30, 2023
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	99,224	$	74,393	$	81,595	$	112,666	$	(40,988)	$	326,890
Operating costs and expenses	56,617		62,978		54,305		78,010		117		252,027
Depreciation and amortization	11,975		8,104		2,279		8,957		10,446		41,761
Non-operating income (expenses)	480		(1,495)		308		598		810		701
EBITDA	55,062		18,024		29,877		44,211		(29,849)		117,325
Compensation and benefits (2)	1,370		1,651		1,392		1,530		8,603		14,546
Transaction, refinancing and other fees (3)	580		253		—		—		4,379		5,212
Loss (gain) on foreign currency remeasurement (4)	46		4,487		—		—		(2)		4,531
Adjusted EBITDA	$	57,058	$	24,415	$	31,269	$	45,741	$	(16,869)	$	141,614

(1)Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $26.4 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction-processing of $8.4 million from Latin America Payments and Solutions to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction-processing and monitoring fees of $6.2 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.

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(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.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies

The reconciliation of consolidated net income to EBITDA is as follows:


	Three months ended June 30,				Six months ended June 30,
(In thousands)	2024		2023		2024		2023
Net Income	$	32,523	$	28,050	$	48,910	$	58,113
Add:
Income tax expense	1,101		6,586		1,393		9,404
Interest expense, net	15,491		3,537		32,070		8,047
Depreciation and amortization	32,950		22,329		67,391		41,761
Total EBITDA	$	82,065	$	60,502	$	149,764	$	117,325

Note 16 – Supplemental Statement of Cash Flows Information

Supplemental statement of cash flows information is as follows:


	Six months ended June 30,
(In thousands)	2024	2023
Supplemental disclosure of cash flow information:
Cash paid for interest	18,264	11,056
Cash paid for income taxes	10,506	21,226
Supplemental disclosure of non-cash activities:
Payable due to vendor related to equipment and software acquired	2,856	2,930

Right-of-use assets obtained in exchange for operating lease liabilities	2,693	—
Non-cash investing activities
Trade-in of equipment	2,193	—

Reconciliation of cash, cash equivalents, restricted cash and cash included in settlement assets as presented on the cash flow statement was as follows:


	June 30,
(In thousands)	2024	2023

Cash and cash equivalents	257,699	191,620
Restricted cash	24,434	$	19,485
Cash and cash equivalents included in settlement assets	46,754	17,542
Cash, cash equivalents, restricted cash and cash included in settlement assets	328,887	228,647

Note 17 – Subsequent Events

On July 18, 2024, the Board declared a regular quarterly cash dividend of $0.05 per share on the Company’s outstanding shares of common stock. The dividend is expected to be paid on September 6, 2024 to stockholders of record as of the close of business on July 29, 2024. The Board anticipates declaring this dividend in future quarters on a regular basis; however future declarations of dividends are subject to the Board’s approval and may be adjusted as business needs or market conditions change.

On July 9, 2024, the Company completed the previously announced ASR transaction described in Note 8 - Equity. In connection with the settlement of the ASR, the Company received 467,362 shares, in addition to the 1,516,793 shares received in March. No cash was exchanged as part of the settlement of the ASR. All of the shares received as part of the ASR were retired.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) covers: (i) the results of operations for the three and six months ended June 30, 2024 and 2023 and (ii) the financial condition as of June 30, 2024. You should read the following discussion and analysis in conjunction with the audited consolidated financial statements (the “Audited Consolidated Financial Statements”) and related notes for the year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K as filed with the SEC on February 29, 2024 and with the unaudited condensed consolidated financial statements (the “Unaudited Condensed Consolidated Financial Statements”) and related notes appearing elsewhere herein. This MD&A contains forward-looking statements that involve risks and uncertainties. Our actual results may differ from those indicated in the forward-looking statements. See “Forward-Looking Statements” for a discussion of the risks, uncertainties and assumptions associated with these statements.

Except as otherwise indicated or unless the context otherwise requires, (a) the terms “EVERTEC,” “we,” “us,” “our,” “our Company” and “the Company” refer to EVERTEC, Inc. and its subsidiaries on a consolidated basis and, (b) the term “EVERTEC Group” refers to EVERTEC Group, LLC and its predecessor entities and their subsidiaries on a consolidated basis. EVERTEC Inc.’s subsidiaries include Holdings, EVERTEC Group; EVERTEC Dominicana, SAS; Evertec Chile Holdings SpA; Evertec Chile SpA; Evertec Chile Global SpA; Evertec Chile Servicios Profesionales SpA; Tecnopago España SL; Paytrue S.A.; Caleidon; S.A.; Evertec Brasil Solutions Informática S.A.; EVERTEC Panamá, S.A.; EVERTEC Costa Rica, S.A. (“EVERTEC CR”); Zunify Payments Ltda; EVERTEC Guatemala, S.A.; Evertec Colombia, SA;, EVERTEC USA, LLC; OPG Technology Corp.; Evertec Placetopay, SAS ("PlacetoPay"); BBR Chile, SpA and BBR Perú, S.A.C.,(collectively "BBR"); Paysmart Pagamentos Eletronicos Ltda, Issuer Holding Ltda. and Issuer Instituição de Pagamentos Ltda( collectively "paySmart"); EVERTEC México Servicios de Procesamiento, S.A. de C.V.; Sinqia S.A.,Torq. Inovação Digital Ltda, Sinqia Tecnologia Ltda., Homie do Brasil Informática S.A., Rosk Software S.A., Lote 45 Participações S.A., and Compliasset S.A. (collectively "Sinqia"). Neither EVERTEC nor EVERTEC Intermediate Holdings, LLC conducts any operations other than with respect to its indirect or direct ownership of EVERTEC Group.

Executive Summary

EVERTEC is a leading full-service transaction-processing business and financial technology provider in Latin America, Puerto Rico, and the Caribbean, providing a broad range of merchant acquiring, payment services and business solutions. According to the September 2022 Nilson Report, we are one of the largest merchant acquirers in Latin America based on total number of transactions and we believe we are the largest merchant acquirer in the Caribbean. We operate across 26 countries out of 20 offices, including our headquarters in Puerto Rico. We own and operate the ATH network, which we believe is one of the leading personal identification number (“PIN”) debit networks in Latin America. We process over six billion transactions annually through a system of electronic payment networks in Puerto Rico and Latin America and a comprehensive suite of services for core banking, cash processing, and fulfillment in Puerto Rico. Additionally, we offer technology outsourcing and payment transactions fraud monitoring to all the regions we serve. We serve a diversified customer base of leading financial institutions, merchants, corporations, and government agencies with “mission-critical” technology solutions that enable them to issue, process and accept transactions securely. We believe our business is well-positioned to continue to expand across the fast-growing Latin America region.

We are differentiated, in part, by our diversified business model, which enables us to provide our varied customer base with a broad range of transaction-processing services from a single source across numerous channels and geographic markets. We believe this capability provides several competitive advantages that will enable us to continue to penetrate our existing customer base with complementary new services, win new customers, develop new sales channels, and enter new markets. We believe these competitive advantages include:

•Our ability to provide competitive products;

•Our ability to provide in one package a range of services that traditionally had to be sourced from different vendors;

•Our ability to serve customers with disparate operations in several geographies with technology solutions that enable them to manage their business as one enterprise; and

•Our ability to capture and analyze data across the transaction-processing value chain and use that data to provide value-added services that are differentiated from those offered by pure-play vendors that serve only one portion of the transaction-processing value chain (such as only merchant acquiring or payment services).

Our broad suite of services spans the entire transaction-processing value chain and includes a range of front-end customer-facing solutions such as the electronic capture and authorization of transactions at the point-of-sale for both card present transactions and card not present transactions, as well as back-end support services such as the clearing and settlement of transactions and account reconciliation for card issuers. These include: (i) merchant acquiring services, which enable POS and

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e-commerce merchants to accept and process electronic methods of payment such as debit, credit, prepaid and EBT cards; (ii) payment processing services, which enable financial institutions and other issuers to manage, support and facilitate the processing for credit, debit, prepaid, automated teller machines (“ATM”) and EBT card programs; and (iii) business process management solutions, which provide “mission-critical” technology solutions such as core bank processing, as well as IT outsourcing and cash management services to financial institutions, corporations and governments. We provide these services through scalable, end-to-end technology platforms that we manage and operate in-house and that generate significant operating efficiencies that enable us to maximize profitability.

We sell and distribute our services primarily through a proprietary direct sales force with established customer relationships. We continue to pursue joint ventures and merchant acquiring alliances. We benefit from an attractive business model, the hallmarks of which are recurring revenue, scalability, significant operating margins and moderate capital expenditure requirements. Our revenue is predominantly recurring in nature because of the mission-critical and embedded nature of the services we provide. In addition, we generally enter into multi-year contracts with our customers. We believe our business model should enable us to continue to grow our business organically in the primary markets we serve without significant incremental capital expenditures.

2024 Developments

On March 4, 2024, the Board of Directors (the “Board”) of Evertec approved an increase to Evertec’s existing share repurchase authorization to permit future repurchases of up to an aggregate of $220 million worth of shares of the Company’s common stock, par value $0.01 per share, by December 31, 2025. Prior to this increase, the Company’s share repurchase program authorization had approximately $137 million remaining. Under the repurchase program, the Company may repurchase shares in the open market, through accelerated share repurchase programs, Rule 10b5-1 plans, or in privately negotiated transactions.

On March 6, 2024, the Company entered into an accelerated share repurchase agreement (the “ASR”) with Bank of America, N.A. to repurchase an aggregate of $70 million of the Company’s common stock, par value $0.01 per share. In connection with the launch of the ASR, on March 8, 2024, the Company paid Bank of America, N.A. an aggregate of $70 million and received approximately 1,516,793 shares of the Company’s common stock.

On July 9, 2024, the Company completed the ASR transaction described above. In connection with the settlement of the ASR, the Company received 467,362 shares, in addition to the 1,516,793 shares received in March. All of the shares received as part of the ASR were retired.

Factors and Trends Affecting the Results of Our Operations

The ongoing migration from cash and paper methods of payment to electronic payments continues to benefit the transaction- processing industry globally. We believe that the penetration of electronic payments in the markets in which we operate is significantly lower relative to the U.S. market, which, together with the ongoing shift from cash and paper methods of payment to electronic payments will continue to generate growth opportunities for our business. For example, currently the adoption of banking products, including electronic payments, in the Latin America and Caribbean region is lower relative to the mature U.S. and European markets. We believe that the unbanked and underbanked population in our markets will continue to shrink, and therefore drive incremental penetration and growth of electronic payments in Puerto Rico and other Latin America regions. We also benefit from the outsourcing of technology systems and processes trend for financial institutions and government. Many medium- and small-size institutions in the Latin America markets in which we operate have outdated systems and updating these IT legacy systems is financially and logistically challenging, which presents a business opportunity for us.

In recent years, consumer preference has accelerated its shift away from cash and paper payment methods, noting increased demand for omni-channel payment services that facilitate cashless and contactless transactions. The markets in which we operate, particularly Latin America and the Caribbean, continue to grow and consumer preference is driving an increase for electronic payments usage. Latin America is one of the fastest-growing mobile markets globally, with a growing base of tech-savvy customers that demonstrate a preference for credit cards, digital wallets, contactless payments, and other value-added offerings. The region's fintech sector is driving change via new contactless payment technology, which is becoming a popular alternative to cash payments. We continue to believe that the attractive characteristics of our markets and our position across multiple services and sectors will continue to drive growth and profitability in our businesses.

Our payment businesses also generally experience moderate increased activity during the traditional holiday shopping periods and around other nationally recognized holidays, which follow consumer spending patterns.

Finally, our financial condition and results of operations are, in part, dependent on the economic and general conditions of the geographies in which we operate. Rising interest rates, inflationary pressures, foreign currency fluctuations and economic

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uncertainty in the markets in which we operate may affect consumer confidence, which could result in a decrease in consumer spending and an impact to our financial results.

Relationship with Popular

On September 30, 2010, EVERTEC Group entered into a 15-year MSA, and several related agreements with Popular. On July 1, 2022, we modified and extended the main commercial agreements with Popular, including a 10-year extension of the Merchant Acquiring Independent Sales Organization Agreement (as amended, the "A&R ISO Agreement"), a 5-year extension of the ATH Network Participation Agreement and a 3-year extension of the MSA (the "A&R ISO Agreement"). The A&R ISO Agreement, which defines our merchant acquiring relationship with Popular, now includes revenue sharing provisions with Popular. The MSA modifications also include the elimination of the exclusivity requirement, the inclusion of annual MSA minimums through September 30, 2028, a 10% discount on certain MSA services beginning in October of 2025 and adjustments to the CPI pricing escalator clause. On the same date, we also sold to Popular certain assets in exchange for 4.6 million shares of EVERTEC common stock owned by Popular (collectively with the contract amendments, the "Popular Transaction"). On August 15, 2022, through a secondary offering, Popular sold its remaining shares of EVERTEC common stock. EVERTEC is no longer deemed a subsidiary of Popular under the Bank Holding Company Act. Popular continues to be the Company's largest customer and for the six months ended June 30, 2024 approximately 31% of our revenues were generated from this relationship.

Results of Operations

Comparison of the three months ended June 30, 2024 and 2023


	Three months ended June 30,
In thousands	2024		2023		Variance

Revenues	$	211,978	$	167,076	$	44,902	27	%
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization	97,481		80,452		17,029		21	%
Selling, general and administrative expenses	38,187		29,522		8,665		29	%
Depreciation and amortization	32,950		22,329		10,621		48	%
Total operating costs and expenses	168,618		132,303		36,315		27	%
Income from operations	$	43,360	$	34,773	$	8,587	25	%

Revenues

Total revenue for the quarter ended June 30, 2024 was $212.0 million, an increase of 27% compared with $167.1 million in the prior year quarter, reflecting the contribution from the Sinqia acquisition and organic growth across all of the Company's segments. Merchant acquiring revenue growth was a result of an improvement in the overall spread and strong sales volume growth. Continued growth in ATH Movil Business and increased transaction volumes drove the revenue increase in Payments Puerto Rico. Latin America revenue benefited from the contribution from the Sinqia acquisition as well as continued organic growth across the region. Business Solutions revenue reflected an increase mainly driven by a project related one-time revenue impact.

Cost of Revenues

Cost of revenues, exclusive of depreciation and amortization, for the three months ended June 30, 2024 amounted to $97.5 million, an increase of $17.0 million or 21% when compared to the same period in the prior year. The increase during the three month period was primarily related to the increase in personnel costs, mostly due to Sinqia, as well as an increase in cloud services and professional fees.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the three months ended June 30, 2024 amounted to $38.2 million, an increase of $8.7 million or 29% when compared to the same period in the prior year. This increase was mainly driven by an increase in personnel costs, primarily related to the addition of Sinqia headcount.

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Depreciation and Amortization

Depreciation and amortization expense for the three months ended June 30, 2024 amounted to $33.0 million, an increase of $10.6 million or 48% when compared to the same period in the prior year. This increase was primarily driven by an increase in amortization of intangible assets created in connection with the Sinqia acquisition, as well as an increase in software amortization for internally developed software.

Non-Operating Expenses


	Three months ended June 30,
In thousands	2024		2023		Variance

Interest income	$	3,218	$	2,103	$	1,115	53	%
Interest expense	(18,709)		(5,640)		(13,069)		232	%
Gain on foreign currency remeasurement	2,404		333		2,071		622	%

Earnings from equity method investments	1,096		1,476		(380)		(26)	%

Other income, net	2,255		1,591		664		42	%
Total non-operating expenses	$	(9,736)	$	(137)	$	(9,599)	7,007	%

Non-operating expenses for the three months ended June 30, 2024 increased by $9.6 million to $9.7 million when compared to the same period in the prior year. The increase was mainly related to an increase of $13.1 million in interest expense resulting from the incremental debt raised to finance the Sinqia acquisition, partially offset by an increase in the gain on foreign currency remeasurement of $2.1 million, an increase in interest income of $1.1 million, and an increase of $0.7 million in other income, net mostly driven by a decrease in the estimated payout of deferred consideration from business combinations.

Income Tax Expense


	Three months ended June 30,
In thousands	2024		2023		Variance
Income tax expense	$	1,101	$	6,586	$	(5,485)	(83)	%

Income tax expense for the three months ended June 30, 2024 amounted to $1.1 million, a decrease of $5.5 million when compared to the income tax expense in the same period in the prior year. The effective tax rate for the period was 3.3%, compared with 19.0% in the comparable 2023 period. The decrease in the effective tax rate was primarily driven by the higher interest expense resulting from the incremental debt raised as part of the Sinqia acquisition, coupled with the reversal of a potential liability for uncertain tax positions as a result of the expiration of the statute of limitation and a shift of the mix of the business to lower taxed jurisdictions.

Comparison of the six months ended June 30, 2024 and 2023


	Six months ended June 30,
In thousands	2024		2023		Variance

Revenues	$	417,296	$	326,890	$	90,406	28	%
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization	199,929		156,869		43,060		27	%
Selling, general and administrative expenses	73,813		53,397		20,416		38	%
Depreciation and amortization	67,391		41,761		25,630		61	%
Total operating costs and expenses	341,133		252,027		89,106		35	%
Income from operations	$	76,163	$	74,863	$	1,300	2	%

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Revenues

Total revenues for the six months ended June 30, 2024 was $417.3 million, an increase of 28% compared with $326.9 million in the same period in the prior year. The revenue increase was primarily driven by the same factors explained above for the quarter in addition to growth across several lines of business in the Business solutions segment.

Cost of Revenues

Cost of revenues for six months ended June 30, 2024 amounted to $199.9 million, an increase of $43.1 million or 27% when compared to the same period in the prior year. The increase during the six month period was primarily driven by the same factors explained above for the quarter as well as an increase in costs of sales in connection with the increase in revenues from Business Solutions.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for six months ended June 30, 2024 amounted to $73.8 million, an increase of $20.4 million or 38% when compared to the same period in the prior year. This increase was mainly driven by the same factors explained above for the quarter.

Depreciation and Amortization

Depreciation and amortization expense for the six months ended June 30, 2024 amounted to $67.4 million, an increase of $25.6 million or 61% when compared to the same period in the prior year. This increase was primarily driven by the same factors explained above for the quarter as well as amortization expense for intangibles created as part of the paySmart acquisition.

Non-Operating Expenses


	Six months ended June 30,
In thousands	2024		2023		Variance

Interest income	6,578		3,236		$	3,342	103	%
Interest expense	(38,648)		(11,283)		(27,365)		(243)	%
Loss on foreign currency remeasurement	(2,052)		(4,531)		2,479		(55)	%
Earnings of equity method investment	2,167		2,631		(464)		(18)	%
Other income, net	6,095		2,601		3,494		134	%
Total non-operating expenses	$	(25,860)	$	(7,346)	$	(18,514)	(252)	%

Non-operating expenses for the six months ended June 30, 2023 increased by $18.5 million to $25.9 million when compared to the same period in the prior year. The increase was mainly related to an increase of $27.4 million in interest expense resulting from the incremental debt raised to finance the Sinqia acquisition, partially offset by an increase in other income of $3.5 million mainly related to gain on the sale of equity securities, an increase of $3.3 million in interest income and a decrease in foreign currency losses from remeasurement of $2.5 million.

Income Tax Expense


	Six months ended June 30,
In thousands	2024		2023		Variance
Income tax expense	$	1,393	$	9,404	$	(8,011)	(85)	%

Income tax expense for the six months ended June 30, 2024 amounted to $1.4 million, a decrease of $8.0 million when compared to the same period in the prior year. The effective tax rate for the period was 2.8%, compared with 13.9% in the comparable 2023 period. The decrease in the effective tax rate is driven by the same factors explained above for the quarter.

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Segment Results of Operations

The Company operates in four business segments: Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, Merchant Acquiring, and Business Solutions.

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. Solution 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 and digital collection; and (b) outsourcing of mission critical IT services. Revenues are based on monthly fixed fees and, in several cases, variable fees based on usage.

•marketing,

•corporate finance and accounting,

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•human resources,

•legal,

•risk management functions,

•internal audit,

•corporate debt related costs,

•non-operating depreciation and amortization expenses generated as a result of merger and acquisition activity,

•intersegment revenues and expenses, and

•other non-recurring fees and expenses that are not considered when management evaluates financial performance at a segment level

The Chief Operating Decision Maker ("CODM") reviews the operating segments separate financial information to assess performance and to allocate resources. Management evaluates the operating results of each of its operating segments based upon revenues and Adjusted EBITDA. Adjusted EBITDA is defined 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. Adjusted EBITDA, as it relates to operating segments, is presented in conformity with ASC Topic 280, Segment Reporting, given that it is reported to the CODM for purposes of allocating resources. Segment asset disclosure is not used by the CODM as a measure of segment performance since the segment evaluation is driven by revenues and Adjusted EBITDA. As such, segment assets are not disclosed in the notes to the unaudited condensed consolidated financial statements.

The following tables set forth information about the Company’s operations by its four business segments for the periods indicated below.

Comparison of the three months ended June 30, 2024 and 2023

Payment Services - Puerto Rico & Caribbean


	Three months ended June 30,
In thousands	2024		2023
Revenues	$54,199		$50,795
Adjusted EBITDA	31,358		29,183
Adjusted EBITDA Margin	57.9	%	57.5	%

Payment Services - Puerto Rico & Caribbean segment revenues for the three months ended June 30, 2024 increased by $3.4 million to $54.2 million when compared to the same period in the prior year. The increase in revenues was primarily driven by an increase in POS transactions and continued strong digital payments growth from ATH Movil, primarily ATH Business, as well as increases in transaction-processing and monitoring services provided to the Latin America Payments and Solutions segment partially offset by lower issuing services revenue, mainly driven by lower active accounts. Adjusted EBITDA increased by $2.2 million to $31.4 million. This increase was primarily driven by an increase in revenue, partially offset by higher infrastructure and programming expenses and higher personnel costs.

Latin America Payments and Solutions


	Three months ended June 30,
In thousands	2024		2023
Revenues	$74,669		$39,076
Adjusted EBITDA	17,500		14,060
Adjusted EBITDA Margin	23.4	%	36.0	%

Latin America Payments and Solutions segment revenues for the three months ended June 30, 2024 increased by $35.6 million to $74.7 million when compared to the same period in the prior year. Revenues benefited from a full quarter contribution from the Sinqia acquisition as well as continued organic growth across the region and higher minimums from the processing contract with GetNet Chile. Revenues were also positively impacted by higher intercompany development services provided to the Puerto Rico segments. Adjusted EBITDA increased by $3.4 million when compared to the same period in the prior year driven by the impact from the Sinqia acquisition, which contributes at a lower margin. The prior year margin was positively impacted the reversal of one-time provisions for operational losses.

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Merchant Acquiring


	Three months ended June 30,
In thousands	2024		2023
Revenues	$45,319		$41,248
Adjusted EBITDA	18,248		15,643
Adjusted EBITDA Margin	40.3	%	37.9	%

Merchant Acquiring segment revenues for the three months ended June 30, 2024 increased by $4.1 million to $45.3 million when compared to the same period in the prior year. The revenue increase was primarily driven by an increase in sales volume and an improvement in the overall spread. Adjusted EBITDA increased by $2.6 million to $18.2 million driven by the increase in revenues partially offset by higher processing costs from the Payment Services - Puerto Rico & Caribbean segment, higher processing costs driven by the effect of a declining average ticket and an increase in the costs associated with the revenue sharing agreements.

Business Solutions


	Three months ended June 30,
In thousands	2024		2023
Revenues	$62,336		$56,971
Adjusted EBITDA	29,769		23,374
Adjusted EBITDA Margin	47.8	%	41.0	%

Business Solutions segment revenues for the three months ended June 30, 2024 increased by $5.4 million to $62.3 million as compared to the prior year period. This increase was primarily driven by a project related one-time revenue impact. Adjusted EBITDA increased by $6.4 million to $29.8 million as compared to the prior year period. This increase was primarily driven by the higher revenues, lower cost of sale and lower equipment expenses, partially offset by higher programming and professional services.

Comparison of the six months ended June 30, 2024 and 2023

Payment Services - Puerto Rico & Caribbean


	Six months ended June 30,
In thousands	2024		2023
Revenues	$107,230		$99,224
Adjusted EBITDA	61,710		57,058
Adjusted EBITDA Margin	57.5	%	57.5	%

Payment Services - Puerto Rico & Caribbean segment revenues for the six months ended June 30, 2024 increased by $8.0 million to $107.2 million when compared to the same period in the prior year. The revenue increase was primarily related to the same drivers described for the quarter. Adjusted EBITDA increased by $4.7 million to $61.7 million. This increase was primarily driven by the same factors explained above for the quarter as well as higher professional services.

Latin America Payments and Solutions


	Six months ended June 30,
In thousands	2024		2023
Revenues	$148,885		$74,393
Adjusted EBITDA	33,797		24,415
Adjusted EBITDA Margin	22.7	%	32.8	%

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Latin America Payments and Solutions segment revenues for the six months ended June 30, 2024 increased by $74.5 million to $148.9 million when compared to the same period in the prior year. The revenue increase was primarily related to the same drivers described for the quarter and the revenue contribution from the paySmart acquisition. Adjusted EBITDA increased by $9.4 million when compared to the same period in the prior year driven by the same factors explained above for the quarter.

Merchant Acquiring


	Six months ended June 30,
In thousands	2024		2023
Revenues	$88,418		$81,595
Adjusted EBITDA	34,468		31,269
Adjusted EBITDA Margin	39.0	%	38.3	%

Merchant Acquiring segment revenues for the six months ended June 30, 2024 increased by $6.8 million to $88.4 million when compared to the same period in the prior year. The revenue increase was primarily related to the same drivers described for the quarter. Adjusted EBITDA increased by $3.2 million as compared to the prior year period driven by the same factors explained above for the quarter.

Business Solutions


	Six months ended June 30,
In thousands	2024		2023
Revenues	$120,464		$112,666
Adjusted EBITDA	52,808		45,741
Adjusted EBITDA Margin	43.8	%	40.6	%

Business Solutions segment revenues for the six months ended June 30, 2024 increased by $7.8 million to $120.5 million as compared to the prior year period. This increase was primarily driven by the same factors described for the quarter in addition to an increase in several lines of business. Adjusted EBITDA increased by $7.1 million to $52.8 million as compared to the prior year period. This increase was primarily driven by the higher revenues partially offset by higher cost of sale and equipment expenses.

Liquidity and Capital Resources

As of June 30, 2024, there were no material changes to our primary short-term and long-term requirements for liquidity and capital resources as disclosed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operation” of our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024. Our principal source of liquidity is cash generated from operations, and our primary liquidity requirements are the funding of working capital needs, capital expenditures, acquisitions, dividend payments, share repurchases and debt service. We also have a $200.0 million Revolving Facility, of which $194.0 million was available for borrowing as of June 30, 2024. The Company issues letters of credit against our Revolving Facility which reduce our availability of funds to be drawn.

As of June 30, 2024, we had cash and cash equivalents of $257.7 million, of which $201.3 million resides in our subsidiaries located outside of Puerto Rico for purposes of (i) funding the respective subsidiary’s current business operations and (ii) funding potential future investment outside of Puerto Rico. We intend to reinvest these funds outside of Puerto Rico, and based on our liquidity forecast, we will not need to repatriate this cash to fund the Puerto Rico operations or to meet debt-service obligations. However, if in the future we determine that we no longer need to maintain cash balances within our foreign subsidiaries, we may elect to distribute such cash to the Company in Puerto Rico. Distributions from the foreign subsidiaries to Puerto Rico may be subject to tax withholding and other tax consequences. Additionally, our credit agreement imposes certain restrictions on the distribution of dividends from subsidiaries.

Our primary use of cash is for operating expenses, working capital requirements, capital expenditures, acquisitions, dividend payments, share repurchases, debt service, and other transactions as opportunities present themselves.

Based on our current level of operations, we believe our existing cash flows from operations and the available secured Revolving Facility will be adequate to meet our liquidity needs for at least the next twelve months from the date of this Report. However, our ability to fund future operating expenses, dividend payments, capital expenditures, mergers and acquisitions, and our ability to make scheduled payments of interest, to pay principal on or refinance our indebtedness and to satisfy any other of

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our present or future debt obligations will depend on our future operating performance, which may be affected by general economic, financial and other factors beyond our control.


	Six months ended June 30,
(In thousands)	2024		2023

Cash provided by operating activities	$	131,340	$	120,651
Cash used in investing activities	(50,167)		(58,371)
Cash used in financing activities	(85,776)		(53,036)
Effect of foreign exchange rate on cash, cash equivalents and restricted cash	(10,234)		(1,841)
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(14,837)	$	7,403

Net cash provided by operating activities for the six months ended June 30, 2024 was $131.3 million compared to $120.7 million for the same period in the prior year, an increase of $10.7 million was primarily driven by cash received for services billed but not yet recognized through revenue.

Net cash used in investing activities for the six months ended June 30, 2024 was $50.2 million compared to $58.4 million for the same period in the prior year, this decrease was primarily related to the acquisition of Paysmart completed in the first quarter of the prior year for $22.9 million partially offset by an increase in additions to software and purchases of property, plant and equipment of $20.9 million and the proceeds from the sale of equity securities of $5.9 million.

Net cash used in financing activities for the six months ended June 30, 2024 was $85.8 million compared to $53.0 million for the same period in the prior year. The increase in cash used in financing activities was primarily driven by an increase in share repurchases of $54.2 million and cash used to pay down other financing agreements of $7.0 million partially offset by settlement activity, net of $21.7 million.

Capital Resources

Our principal capital expenditures are for hardware and computer software (purchased and internally developed) and additions to our property and equipment. During the six months ended June 30, 2024 and 2023, we invested approximately $56.3 million and $35.5 million in our capital resources, respectively. Generally, we fund capital expenditures with cash generated from operations and, if necessary, borrowings under our Revolving Facility.

Dividend Payments

On April 18, 2024, the Board declared quarterly cash dividends of $0.05 per share of common stock, which were paid on June 7, 2024, to stockholders of record as of the close of business on April 29, 2024. On July 18, 2024, our Board declared a regular quarterly cash dividend of $0.05 per share on the Company’s outstanding shares of common stock. The dividend is expected to be paid on September 6, 2024 to stockholders of record as of the close of business on July 29, 2024. The Board anticipates declaring this dividend in future quarters on a regular basis; however future declarations of dividends are subject to the Board’s approval and may be adjusted as business needs or market conditions change.

Financial Obligations

Secured Credit Facilities

On December 1, 2022, EVERTEC and EVERTEC Group, entered into a credit agreement with a syndicate of lenders and Truist Bank (“Truist”), as administrative agent and collateral agent, providing for (i) a $415.0 million term loan A facility that matures on December 1, 2027, and a $200.0 million revolving credit facility (the “Revolving Facility”, and together with the Term A Loan Facility, the “2022 Credit Facilities”) that matures on December 1, 2027 (the “2022 Credit Facilities Maturity Date”). On October 30, 2023, Evertec, EVERTEC Group and other Loan Parties (as defined in the Existing Credit Agreement) party thereto, entered into a first amendment (the “Amendment”) to the credit agreement, dated as of December 1, 2022 (the “Existing Credit Agreement,” and as amended by the Amendment, the “Amended Credit Agreement”), with a syndicate of lenders and Truist, as administrative agent and collateral agent. Under the Amended Credit Agreement, a syndicate of financial institutions and other lenders provided (i) additional term loan A commitments in the amount of $60.0 million (the “Incremental TLA Facility”) and (ii) a new tranche of term loan B commitments in the amount of $600.0 million (the “New TLB Facility,” and together with the Incremental TLA Facility, the “Facilities”). The $600.0 million term loan B facility matures on October 30, 2030 (the “Term Loan B Maturity Date”). Unless otherwise indicated, the terms and conditions detailed below apply to both

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term loan A facility and term loan B (together “Term Loan Facilities”). In the fourth quarter of 2023, the Company prepaid $60 million of the outstanding balance on Term Loan B.

At June 30, 2024, the unpaid principal balance of the Term A Loan Facility and Term B Loan Facility were $441.5 million and $540.0 million, respectively. The additional borrowing capacity for the Revolving Facility at June 30, 2024 was $194.0 million, considering letters of credit issued. The Company issues letters of credit against the Revolving Facility which reduce the additional borrowing capacity of the Revolving Facility.

Deferred consideration from Business Combinations

Notes Payable

Interest Rate Swaps

As of June 30, 2024, the Company has four interest rate swap agreements, which convert a portion of the interest rate payments on the Company's Term Loan Facilities from variable to fixed. The interest rate swaps are used to hedge the market risk from changes in interest rates corresponding with the Company's variable rate debt. The interest rate swaps are designated as cash flow hedges and are considered highly effective. Cash flows from the interest rate swaps are included in the accrued liabilities and accounts payable line item in the Company's unaudited condensed consolidated statements of cash flows. Changes in the fair value of the interest rate swaps are recognized in other comprehensive (loss) income until the gains or losses are reclassified to earnings. Gains or losses reclassified to earnings are presented within interest expense in the accompanying condensed consolidated statements of income and comprehensive (loss) income.

Swap Agreement

Effective date

Maturity Date

Notional Amount

Variable Rate

Fixed Rate

2018 Swap

April 2020

November 2024

$250 million

1-month SOFR

2.929%

2023 Swap

November 2024

December 2027

$250 million

1-month SOFR

3.375%

2024 Swap

March 2024

October 2027

$150 million

1-month SOFR

4.182%

2024 Swap

March 2024

October 2027

$150 million

1-month SOFR

4.172%

As of June 30, 2024, the carrying amount of the derivatives included on the Company's unaudited condensed consolidated balance sheet was an asset of $7.2 million. As of December 31, 2023, the carrying amount of the derivatives included on the Company's consolidated balance sheet was an asset of $4.4 million and a liability of $0.9 million, included in other long-term liabilities. The fair value of these derivatives is estimated using Level 2 inputs in the fair value hierarchy on a recurring basis. Refer to Note 8 to the Unaudited Condensed Consolidated Financial Statements for disclosure of gains (losses) recorded on cash flow hedging activities.

During the three and six months ended June 30, 2024 the Company reclassified gains of $2.4 million and $4.1 million, respectively, from accumulated other comprehensive (loss) income into interest expense compared to gains of $1.4 million and $2.4 million, respectively, for the corresponding periods in 2023. Based on current SOFR rates, the Company expects to reclassify gains of $5.7 million from accumulated other comprehensive (loss) income into interest expense over the next 12 months.

Covenant Compliance

As of June 30, 2024, the total secured net leverage ratio was 2.21 to 1.00. As of the date of filing of this Report, no event has occurred that constitutes an Event of Default or Default.

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In this Report, we refer to the term “Adjusted EBITDA” to mean EBITDA as so defined and calculated in a substantially consistent manner for purposes of determining compliance with the total secured net leverage ratio based on the financial information for the last twelve months at the end of each quarter.

Net Income Reconciliation to EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per common share (Non-GAAP Measures)

The non-GAAP measures referenced in this Report are supplemental measures of the Company’s performance and are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). They are not measurements of the Company’s financial performance under GAAP and should not be considered as alternatives to total revenue, net income or any other performance measures derived in accordance with GAAP or as alternatives to cash flows from operating activities, as indicators of operating performance or as measures of the Company’s liquidity. In addition to GAAP measures, management uses these non-GAAP measures to focus on the factors the Company believes are pertinent to the daily management of the Company’s operations and believes that they are also frequently used by analysts, investors and other stakeholders to evaluate companies in our industry. These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations that are necessary to run our business. Other companies, including other companies in our industry, may not use these measures or may calculate these measures differently than as presented herein, limiting their usefulness as comparative measures.

Reconciliations of the non-GAAP measures to the most directly comparable GAAP measure are included below. These non-GAAP measures include EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per common share, each as defined below.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization.

Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash 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 unrealized gains and losses on foreign currency remeasurement for assets and liabilities in non-functional currency. This measure is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, Adjusted EBITDA, as it relates to the Company's segments, is presented in conformity with Accounting Standards Codification 280, Segment Reporting, and is excluded from the definition of non-GAAP financial measures under the Securities and Exchange Commission's Regulation G and Item 10(e) of Regulation S-K. The Company’s presentation of Adjusted EBITDA is substantially consistent with the equivalent measurements that are contained in the secured credit facilities in testing EVERTEC Group’s compliance with covenants therein such as the secured leverage ratio. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of total revenues.

Adjusted Net Income is defined as Adjusted EBITDA less: operating depreciation and amortization expense, defined as GAAP Depreciation and amortization less amortization of intangibles related to acquisitions such as customer relationships, trademarks; cash interest expense defined as GAAP interest expense, less GAAP interest income adjusted to exclude non-cash amortization of debt issue costs, premium and accretion of discount; income tax expense which is calculated on adjusted pre-tax income using the applicable GAAP tax rate, adjusted for uncertain tax positions, tax true-ups, windfall from share-based compensation, unrealized gains and losses from foreign currency remeasurement, among others; and non-controlling interests, net of amortization for intangibles created as part of the purchase.

Adjusted Earnings per common share is defined as Adjusted Net Income divided by diluted shares outstanding.

The Company uses Adjusted Net Income to measure the Company’s overall profitability because the Company believes it better reflects the comparable operating performance by excluding the impact of the non-cash amortization and depreciation that was created as a result of merger and acquisition activity. In addition, in evaluating EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per common share, you should be aware that in the future the Company may incur expenses such as those excluded in calculating them.

A reconciliation of net income to EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per common share is provided below:

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	Three months ended June 30,				Six months ended June 30,				Twelve months ended
(In thousands, except per share information)	2024		2023		2024		2023		June 30, 2024
Net income	$	32,523	$	28,050	48,910		58,113		$	70,673
Income tax expense	1,101		6,586		1,393		9,404		(2,534)
Interest expense, net	15,491		3,537		32,070		8,047		47,832
Depreciation and amortization	32,950		22,329		67,391		41,761		119,251
EBITDA	82,065		60,502		149,764		117,325		235,222

Equity income (1)	(1,096)		(1,476)		(2,167)		(2,631)		(1,481)
Compensation and benefits (2)	7,601		8,701		15,591		14,546		30,357
Transaction, refinancing and other (3)	(114)		7,085		(1,011)		7,843		44,691


Loss on foreign currency remeasurement (4)	(2,404)		(333)		2,052		4,531		5,797
Adjusted EBITDA	86,052		74,479		164,229		141,614		314,586
Operating depreciation and amortization (5)	(14,644)		(12,835)		(29,439)		(25,204)		(57,148)
Cash interest expense, net (6)	(14,422)		(3,457)		(29,841)		(7,820)		(46,307)
Income tax benefit (expense) (7)	(2,526)		(11,626)		(2,064)		(16,408)		(14,694)
Non-controlling interest (8)	(645)		80		(1,066)		46		(1,369)
Adjusted net income	$	53,815	$	46,641	$	101,819	$	92,228	$	195,068
Net income per common share (GAAP):
Diluted	$	0.49	$	0.43	$	0.73	$	0.89
Adjusted Earnings per common share (Non-GAAP):
Diluted	$	0.83	$	0.71	$	1.55	$	1.41
Shares used in computing adjusted earnings per common share:
Diluted	65,150,744		65,510,091		65,699,385		65,571,453

1)Represents the elimination of non-cash equity earnings from our equity investments.

2)Primarily represents share-based compensation and severance payments.

3)Represents fees and expenses associated with corporate transactions as defined in the Credit Agreement, recorded as part of selling, general and administrative expenses and the elimination of unrealized gains from the change in fair market value of equity securities.

4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.

5)Represents operating depreciation and amortization expense, which excludes amounts generated as a result of merger and acquisition activity.

6)Represents interest expense, less interest income, as they appear on the condensed consolidated statements of income and comprehensive (loss) income, adjusted to exclude non-cash amortization of the debt issue costs, premium and accretion of discount.

7)Represents income tax expense calculated on adjusted pre-tax income using the applicable GAAP tax rate, adjusted for certain discrete items.

8)Represents the non-controlling equity interest, net of amortization for intangibles created as part of the purchase.

Critical Accounting Estimates

Our consolidated financial statements are prepared in accordance with GAAP. In connection with the preparation of our financial statements, we are required to make estimates and assumptions about future events and apply judgments that affect the reported amounts of certain assets and liabilities, and in some instances, the reported amounts of revenues and expenses during the period. We base our assumptions, estimates, and judgments on historical experience, current events, and other factors that management believes to be relevant at the time our condensed consolidated financial statements are prepared. However, because future events are inherently uncertain and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material. For a description of the Company’s critical accounting estimates, refer to “Part II—Item 7-Management’s Discussion and Analysis of Financial Condition and Results of

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Operations-Critical Accounting Estimates” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 29, 2024.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks arising from our normal business activities. These market risks principally involve the possibility of changes in interest rates that will adversely affect the value of our financial assets and liabilities or future cash flows and earnings, foreign currency exchange risk that may result in unfavorable foreign currency translation adjustments and inflation. Market risk is the potential loss arising from adverse changes in market rates and prices. The following analysis provides quantitative and qualitative information regarding these risks.

Interest Rate Risks

Interest rate risk is highly sensitive due to many factors, including U.S. monetary and tax policies, U.S. and international economic factors and other factors beyond our control.

We issued floating-rate debt which is subject to fluctuations in interest rates. Our secured credit facilities accrue interest at variable rates and are subject to a floor or a minimum rate. Based upon a sensitivity analysis of our outstanding debt on June 30, 2024, a hypothetical 100 basis point increase in interest rates over our floor on our debt balances outstanding as of June 30, 2024, under the secured credit facilities, would increase our annual interest expense by approximately $4.3 million. The impact on future interest expense as a result of future changes in interest rates will depend largely on the gross amount of our borrowings at that time.

As of June 30, 2024, the Company has four interest rate swap agreements which convert a portion of the interest rate payments on the Company's Term Loan Facilities from variable rate debt to fixed.

The interest rate swap exposes us to credit risk in the event that the counterparty to the swap agreement does not or cannot meet its obligations. The notional amount is used to measure interest to be paid or received and does not represent the amount of exposure to credit loss. The loss would be limited to the amount that would have been received, if any, over the remaining life of the swap. The counterparties to the swaps are major U.S. based financial institution and we expect all counterparties to be able to perform its obligations under the swaps. We use derivative financial instruments for hedging purposes only and not for trading or speculative purposes.

See Note 5 of the Unaudited Condensed Consolidated Financial Statements for additional information related to the secured credit facilities.

Foreign Exchange Risk

We conduct business in certain countries in Latin America for which we have determined that the functional currency is other than the U.S. dollar. Given this, our operating results are exposed to volatility due to fluctuations in exchange rates for the countries' functional currencies. Non-functional currency transactions are remeasured into the functional currency which results in a foreign exchange gain or loss recorded through Other income (expenses). For the three and six months ended June 30, 2024, the Company recognized non-cash unrealized foreign currency remeasurement gains of $2.4 million and losses of $2.1 million, respectively, compared to gains of $0.3 million and losses of $4.5 million, respectively for the same periods in 2023. For subsidiaries whose functional currency is other than the U.S. dollar, their assets and liabilities are translated into U.S. dollars at exchange rates at the balance sheet date, and revenues and expenses are translated using average exchange rates in effect during the period. The resulting foreign currency translation adjustments are reported in accumulated other comprehensive (loss) income in the condensed consolidated balance sheets. As of June 30, 2024, the Company had $76.0 million in an unfavorable foreign currency translation adjustment as part of accumulated other comprehensive (loss) income compared with a favorable foreign currency translation adjustment of $14.8 million as of December 31, 2023.

Inflation Risk

While it is difficult to accurately measure the impact of inflation on our results of operations and financial condition, we believe the effects of inflation, if any, on our historical results of operations and financial condition have been immaterial. General inflation in the geographies in which we operate has risen to levels that have not been experienced in recent years, however, inflation has historically had a minimal net effect on our operating results given that overall inflation has been offset by sales and cost reduction actions. Rising prices for input costs, including wages and benefits, occupancy and general administrative costs, could potentially have a negative impact on our results of operations and financial condition which may not be readily

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recoverable from our customers. In addition, inflation has driven a rising interest rate environment, which has had an adverse effect on our cost of funding, as well as led to enhanced volatility on foreign currency exchange rates. While we proactively try to mitigate these rising costs, we may not be able to fully offset these impacts, which could result in negative effect on our results of operation. Thus, we cannot assure you that our results of operations and financial condition will not be materially impacted by inflation in the future.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of the Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Report. Based upon their evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that as of June 30, 2024, the Company’s disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

We completed the Sinqia acquisition on November 1, 2023 (see Note 2 of the Notes to the Unaudited Condensed Consolidated Financial Statements). We excluded Sinqia's disclosure controls and procedures that are subsumed by its internal control over financial reporting from the scope of management's assessment of the effectiveness of the Company's disclosure controls and procedures. This exclusion is in accordance with the SEC Staff’s general guidance that an assessment of a recently acquired business may be omitted from the scope of management’s assessment for one year following the acquisition. We are in and will continue with the process of integrating Sinqia into our overall internal control environment. We believe that we have taken the necessary steps to monitor and maintain appropriate internal control over financial reporting during this ongoing integration. Except as described above, there have been no changes in our internal control over financial reporting that occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are defendants in various lawsuits or arbitration proceedings arising in the ordinary course of business. Management believes, based on the opinion of legal counsel and other factors, that the aggregated liabilities, if any, arising from such actions will not have a material adverse effect on the financial condition, results of operations and the cash flows of the Company.

Item 1A. Risk Factors

There have been no material changes to the risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024. For a discussion of the potential risks and uncertainties related to us, see "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits















3.1			Third Amended and Restated Certificate of Incorporation of EVERTEC, Inc., dated as of May 25, 2023 (incorporated by reference to Exhibit 3.1 of EVERTEC, Inc.’s Current Report on Form 8-K filed on June 1, 2023, File No. 001-35872).
3.2			Amended and Restated Bylaws of EVERTEC, Inc., dated as of May 25, 2023 (incorporated by reference to Exhibit 3.2 of EVERTEC, Inc.’s Current Report on Form 8-K filed on June 1, 2023, File No. 001-35872).
10.1*+			Form of Restricted Stock Unit Award Agreement for grant of restricted stock units for directors under the EVERTEC, Inc. 2022 Incentive Award Plan, dated May 23, 2024, by and between EVERTEC, Inc. and the director (applicable to Frank G. D'Angelo, Kelly Barrett, Olga Botero, Virginia Gambale, Jorge A. Junquera, Iván Pagán, Aldo J. Polak, Alan H. Schumacher, and Brian J. Smith).
31.1*			CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*			CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**			CEO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**			CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS XBRL*			Inline Instance document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH XBRL*			Inline Taxonomy Extension Schema
101.CAL XBRL*			Inline Taxonomy Extension Calculation Linkbase
101.DEF XBRL*			Inline Taxonomy Extension Definition Linkbase
101.LAB XBRL*			Inline Taxonomy Extension Label Linkbase
101.PRE XBRL*			Inline Taxonomy Extension Presentation Linkbase
104*			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

** Furnished herewith.

# Certain exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished to the Securities and Exchange Commission upon request.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	EVERTEC, Inc. (Registrant)

Date: August 1, 2024	By:	/s/ Morgan Schuessler
		Morgan Schuessler Chief Executive Officer (Principal Executive Officer)

Date: August 1, 2024	By:	/s/ Joaquin A. Castrillo-Salgado
		Joaquin A. Castrillo-Salgado Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

EXHIBIT 10.1

EVERTEC, INC.

2022 INCENTIVE AWARD PLAN

RESTRICTED STOCK UNITS AWARD AGREEMENT - DIRECTORS

THIS RESTRICTED STOCK UNITS AWARD AGREEMENT (this “Agreement”) is made as of May 23, 2024 (the “Date of Grant”), by and between EVERTEC, Inc. (the “Company”) and you (the “Participant”). Defined terms used but not otherwise defined herein will have the meanings attributed to them in the Plan (defined below).

W I T N E S S E T H

WHEREAS, the Company maintains the EVERTEC, Inc. 2022 Incentive Award Plan (the “Plan”); and

WHEREAS, in connection with the Participant’s service as a member of the Board of Directors of the Company (the “Directorship”), and in accordance with the Company’s Independent Director Compensation Policy, the Company desires to grant Restricted Stock Units to the Participant, subject to the terms and conditions of the Plan and this Agreement.

NOW, THEREFORE, in consideration of the covenants and agreements contained herein and for other good and valuable consideration, the parties agree as follows:

1.Grant of RSUs. In consideration of the Directorship and subject to the terms, conditions and restrictions set forth herein, the Company grants to the Participant [*] shares of Restricted Stock Units (the “RSUs”). Each RSU represents the unfunded and unsecured promise of the Company to deliver to the Participant one share of common stock, par value $.01 per share, of the Company (the “Common Stock”) on the Settlement Date (as defined in Section 6 hereof).

2.Purchase Price. The purchase price of the RSUs shall be deemed to be zero U.S. Dollars ($0) per share.

3.Vesting. The RSUs shall vest and become non-forfeitable on May 31, 2025 (the “Vesting Date”), provided that the Participant was actively carrying out his or her duties in connection with the Directorship at all times from the Date of Grant through the earlier of (a) the Vesting Date or (b) the date of the Company’s next Annual Meeting of Stockholders where Directors are elected.

4.Termination.

(1)In the event of termination of the Directorship due to the Participant’s death or Disability, then as of the Termination Date all of the unvested RSUs shall become fully vested.

(2)In the event the Directorship is terminated other than as set forth in (a) above, all of the RSUs that have not become vested as of the Termination Date shall automatically be forfeited.

(3)For purposes of this Section 4:

“Disability” shall mean the Participant’s inability to perform the Directorship by reason of any medically determinable physical or mental impairment for a period of 6 months or more in any 12-month period.

“Termination Date” is the date the Participant’s Directorship is terminated under the circumstances set forth in (a) or (b) above.

5.Dividend Equivalents. If the Company pays an ordinary cash dividend on its outstanding Common Stock at any time between the Date of Grant and the Settlement Date (as defined in Section 6 below)–provided that the date on which stockholders of record are determined for purposes of paying a cash dividend on issued and outstanding shares of the Common Stock falls after the Date of Grant–the Participant shall receive on the Settlement Date or promptly thereafter (but in no event more than 75 days after the Vesting Date) either: (a) a number of Shares (as defined in Section 6 below) having a Fair Market Value (as defined below) on the Vesting Date equal to the aggregate amount of the cash dividends paid by the Company on a single share of the Common Stock, multiplied by the number of RSUs that are settled on the Settlement Date; or (b) a lump sum cash payment equal to the aggregate amount of the cash dividends paid by the Company on a single share of the Common Stock, multiplied by the number of RSUs that are settled on the Settlement Date ((a) or (b) as applicable, the “Dividend Payment”); provided, however, that in the case of (a), any partial Share resulting from the calculation will be paid in cash.

For purposes of this Agreement, “Fair Market Value” means the closing price of the Company’s Common Stock at the close of business of the applicable date.

6.Settlement. Within 75 days following the day any RSUs are vested in accordance with the terms and conditions of this Agreement (the “Settlement Date”), the Company shall (a) issue and deliver to the Participant one share of Common Stock for each vested RSU (the “Shares”) and enter the Participant’s name as a shareholder of record or beneficial owner with respect to the Shares on the books of the Company; and (b) calculate the Dividend Payment. The Participant agrees that the Company may deduct from the Dividend Payment any amounts owed by the Participant to the Company with respect to any whole Share issued by the Company to the Participant to cover any partial Share resulting from the settlement process.

7.Taxes. The Participant shall be responsible for payment of any taxes due in respect of the Shares and the Dividend Payment; and the Company shall withhold any applicable taxes in respect of the Shares and the Dividend Payment (a “Tax Payment”). In order to satisfy the Participant’s obligation to pay the Tax Payment, the Company will withhold from any Shares otherwise to be delivered to the Participant, a number of whole shares of Common Stock having a Fair Market Value equal to the Tax Payment (i.e., a “cashless exercise”); provided, however, that the Participant may elect to satisfy his or her obligation to pay the Tax Payment through a non-cashless exercise, by notifying the Company within at least 5 business days before the Settlement Date. If the Participant does not provide such notification within the established timeframe, the Company will proceed with the default method of the cashless exercise. If the Participant fails to pay any required Tax Payment, the Company may, in its discretion, deduct any Tax Payments from any amount

then or thereafter payable by the Company to the Participant and take such other action as deemed necessary to satisfy all obligations for the Tax Payment (including reducing the number of Shares delivered on the Settlement Date). The Participant agrees to pay the Company in the form of a check or cashier’s check any overage of the Tax Payment paid by the Company as a result of making whole any partial Share issued through a cashless exercise. Furthermore, the Participant acknowledges and agrees that the Participant will be solely responsible for making any Tax Payment directly to the appropriate taxing authorities should the Participant opt not to satisfy his or her Tax Payment through a cashless exercise.

8.Rights as Stockholder. Upon and following the Settlement Date (but not before), the Participant shall be the record or beneficial owner of the Shares unless and until such Shares are sold or otherwise disposed of, and, if a record owner, shall be entitled to all rights of a stockholder of the Company (including voting rights).

9.Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the Commonwealth of Puerto Rico applicable to contracts to be performed therein.

10.Notice. Every notice or other communication relating to this Agreement shall be made in writing and the notice, request or other communication shall be deemed to be received upon receipt by the party entitled thereto. Any notice, request or other communication by the Participant should be delivered to the Company’s General Counsel.

11.Miscellaneous. This Agreement and the Plan contain the entire agreement between the parties hereto with respect to the subject matter hereof and supersede all prior communications, representations and negotiations in respect thereto. No change, modification or waiver of any provision of this Agreement shall be valid unless in writing and signed (or accepted, if made electronically) by the parties hereto. This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons who shall, upon the death of the Participant, acquire any rights hereunder in accordance with this Agreement or the Plan. The terms and provisions of the Plan are incorporated herein by reference, and the Participant hereby acknowledges receiving a copy of the Plan. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Agreement, the Plan shall govern and control. Every provision of this Agreement is intended to be severable and any illegal or invalid term shall not affect the validity or legality of the remaining terms. Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Compensation Committee of the Company’s Board of Directors (the “Committee”) for review, as provided for in the Plan. The resolution of such a dispute by the Committee shall be binding on the Company and the Participant.

By clicking “I Accept” in the checkbox below, the Participant is hereby agreeing to the terms and conditions of this Agreement as of the Date of Grant set forth above, and that he or she has read the same.

EXHIBIT 31.1

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a)

I, Morgan Schuessler, certify that:

1.I have reviewed this report on Form 10-Q of EVERTEC, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: August 1, 2024						/s/ Morgan Schuessler
						Morgan Schuessler
						Chief Executive Officer

EXHIBIT 31.2

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a)

I, Joaquin A. Castrillo-Salgado, certify that:

1.I have reviewed this report on Form 10-Q of EVERTEC, Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: August 1, 2024						/s/ Joaquin A. Castrillo-Salgado
						Joaquin A. Castrillo-Salgado
						Chief Financial Officer

EXHIBIT 32.1

Certification Pursuant to 18 U.S.C. Section 1350

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002 , the undersigned officer of EVERTEC, Inc. (the “Company”), does hereby certify, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (the “Form 10-Q”) of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: August 1, 2024						/s/ Morgan Schuessler
						Morgan Schuessler
						Chief Executive Officer

EXHIBIT 32.2

Certification Pursuant to 18 U.S.C. 1350

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of EVERTEC, Inc. (the “Company”), does hereby certify, to such officer’s knowledge, that:


Date: August 1, 2024						/s/ Joaquin A. Castrillo-Salgado
						Joaquin A. Castrillo-Salgado
						Chief Financial Officer

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Jul. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-35872
Entity Registrant Name	EVERTEC, Inc.
Entity Incorporation, State or Country Code	PR
Entity Tax Identification Number	66-0783622
Entity Address, Address Line One	Cupey Center Building,
Entity Address, Address Line Two	Road 176, Kilometer 1.3,
Entity Address, City or Town	San Juan,
Entity Address, State or Province	PR
Entity Address, Postal Zip Code	00926
City Area Code	787
Local Phone Number	759-9999
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	EVTC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		63,978,849
Entity Central Index Key	0001559865
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 257,699	$ 295,600
Restricted cash	24,434	23,073
Accounts receivable, net	122,278	126,510
Settlement assets	64,922	51,467
Prepaid expenses and other assets	61,444	64,704
Total current assets	530,777	561,354
Debt securities available-for-sale, at fair value	1,725	2,095
Equity securities, at fair value	4,960	9,413
Investment in equity investees	22,860	21,145
Property and equipment, net	65,769	62,453
Operating lease right-of-use asset	12,756	14,796
Goodwill	741,645	791,700
Other intangible assets, net	451,637	518,070
Deferred tax asset	23,851	47,847
Derivative asset	7,241	4,385
Other long-term assets	26,700	27,005
Total assets	1,889,921	2,060,263
Current Liabilities:
Accrued liabilities	114,417	129,160
Accounts payable	60,122	66,516
Contract liability	18,894	21,055
Income tax payable	4,222	3,402
Current portion of long-term debt	23,867	23,867
Current portion of operating lease liability	7,408	6,693
Settlement liabilities	62,041	47,620
Total current liabilities	290,971	298,313
Long-term debt	936,001	946,816
Deferred tax liability	46,148	87,916
Contract liability - long term	54,136	41,825
Operating lease liability - long-term	6,697	9,033
Other long-term liabilities	30,438	40,984
Total liabilities	1,364,391	1,424,887
Commitments and contingencies (Note 14)
Redeemable non-controlling interests	38,455	36,968
Stockholders’ equity
Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued	0	0
Common stock, par value $0.01; 206,000,000 shares authorized; 64,446,211 shares issued and outstanding as of June 30, 2024 (December 31, 2023 - 65,450,799)	644	654
Additional paid-in capital	10,777	36,527
Accumulated earnings	541,248	538,903
Accumulated other comprehensive (loss) income, net of tax	(69,239)	18,209
Total stockholders’ equity	483,430	594,293
Non-redeemable non-controlling interest	3,645	4,115
Total equity	487,075	598,408
Total liabilities and equity	$ 1,889,921	$ 2,060,263

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock authorized (in shares)	2,000,000	2,000,000
Preferred stock issued (in shares)	0	0
Common stock par value (in usd per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	206,000,000	206,000,000
Common stock issued (in shares)	64,446,211	65,450,799
Common stock outstanding (in shares)	64,446,211	65,450,799

Unaudited Condensed Consolidated Statements of Income and Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenues	$ 211,978	$ 167,076	$ 417,296	$ 326,890
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization	97,481	80,452	199,929	156,869
Selling, general and administrative expenses	38,187	29,522	73,813	53,397
Depreciation and amortization	32,950	22,329	67,391	41,761
Total operating costs and expenses	168,618	132,303	341,133	252,027
Income from operations	43,360	34,773	76,163	74,863
Non-operating income (expenses)
Interest income	3,218	2,103	6,578	3,236
Interest expense	(18,709)	(5,640)	(38,648)	(11,283)
Gain (loss) on foreign currency remeasurement	2,404	333	(2,052)	(4,531)
Earnings from equity method investments	1,096	1,476	2,167	2,631
Other income, net	2,255	1,591	6,095	2,601
Total non-operating expenses	(9,736)	(137)	(25,860)	(7,346)
Income before income taxes	33,624	34,636	50,303	67,517
Income tax expense	1,101	6,586	1,393	9,404
Net income	32,523	28,050	48,910	58,113
Less: Net income (loss) attributable to non-controlling interest	622	(105)	1,030	(94)
Net income attributable to EVERTEC, Inc.’s common stockholders	31,901	28,155	47,880	58,207
Other comprehensive (loss) income, net of tax of $474, $(195), $631 and $(311)
Foreign currency translation adjustments	(64,351)	3,153	(90,827)	20,758
Gain on cash flow hedges	1,034	1,816	3,382	271
Unrealized loss on change in fair value of debt securities available-for-sale	0	0	(3)	(20)
Other comprehensive (loss) income, net of tax	(63,317)	4,969	(87,448)	21,009
Total comprehensive (loss) income attributable to EVERTEC, Inc.’s common stockholders	$ (31,416)	$ 33,124	$ (39,568)	$ 79,216
Net income per common share - basic attributable to EVERTEC, Inc.’s common stockholders (in usd per share)	$ 0.50	$ 0.43	$ 0.74	$ 0.90
Net income per common share - diluted attributable to EVERTEC, Inc.’s common stockholders (in usd per share)	$ 0.49	$ 0.43	$ 0.73	$ 0.89

Unaudited Condensed Consolidated Statements of Income and Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Other comprehensive income (loss), tax	$ 474	$ (195)	$ 631	$ (311)

Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Earnings	Accumulated Other Comprehensive Income (Loss)	Non-Controlling Interest (excluding Redeemable Non-Controlling Interest)
Beginning balance (in shares) at Dec. 31, 2022		64,847,233
Beginning balance at Dec. 31, 2022	$ 474,748	$ 648	$ 0	$ 487,349	$ (16,486)	$ 3,237
Changes in Stockholders’ Equity
Share-based compensation recognized	5,557		5,557
Repurchase of common stock (in shares)		(187,976)
Repurchase of common stock	(6,269)	$ (1)		(6,268)
Restricted stock units delivered (in shares)		419,205
Restricted stock units delivered	(5,874)	$ 4	(5,557)	(321)
Net income	30,063			30,052		11
Cash dividends on common stock, $0.05 per share	(3,249)			(3,249)
Other comprehensive income (loss)	16,165				16,040	125
Ending balance (in shares) at Mar. 31, 2023		65,078,462
Ending balance at Mar. 31, 2023	511,141	$ 651	0	507,563	(446)	3,373
Changes in Stockholders’ Equity
Share-based compensation recognized	6,499		6,499
Repurchase of common stock (in shares)		(268,398)
Repurchase of common stock	(9,521)	$ (3)	(6,418)	(3,100)
Restricted stock units delivered (in shares)		29,045
Restricted stock units delivered	(81)		(81)
Net income	28,050			28,155		(105)
Cash dividends on common stock, $0.05 per share	(3,254)			(3,254)
Other comprehensive income (loss)	5,308				4,969	339
Ending balance (in shares) at Jun. 30, 2023		64,839,109
Ending balance at Jun. 30, 2023	$ 538,142	$ 648	0	529,364	4,523	3,607
Beginning balance (in shares) at Dec. 31, 2023	65,450,799	65,450,799
Beginning balance at Dec. 31, 2023	$ 598,408	$ 654	36,527	538,903	18,209	4,115
Changes in Stockholders’ Equity
Share-based compensation recognized	7,349		7,349
Repurchase of common stock (in shares)		(1,516,793)
Repurchase of common stock	(70,000)	$ (15)	(30,943)	(39,042)
Restricted stock units delivered (in shares)		474,953
Restricted stock units delivered	(9,756)	$ 5	(9,761)
Net income	16,387			16,497		(110)
Cash dividends on common stock, $0.05 per share	(3,273)			(3,273)
Adjustment of redeemable noncontrolling interest to redemption value	(3,172)		(3,172)
Excise tax on repurchase of common stock	(550)			(550)
Other comprehensive income (loss)	(24,154)				(24,131)	(23)
Ending balance (in shares) at Mar. 31, 2024		64,408,959
Ending balance at Mar. 31, 2024	511,239	$ 644	0	512,535	(5,922)	3,982
Changes in Stockholders’ Equity
Share-based compensation recognized	7,660		7,660
Restricted stock units delivered (in shares)		37,252
Restricted stock units delivered	(69)		(69)
Net income	31,310			31,383		(73)
Cash dividends on common stock, $0.05 per share	(3,220)			(3,220)
Adjustment of redeemable noncontrolling interest to redemption value	3,186		3,186
Reversal of excise tax on repurchase of common stock	550			550
Other comprehensive income (loss)	$ (63,581)				(63,317)	(264)
Ending balance (in shares) at Jun. 30, 2024	64,446,211	64,446,211
Ending balance at Jun. 30, 2024	$ 487,075	$ 644	$ 10,777	$ 541,248	$ (69,239)	$ 3,645

Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) - $ / shares			3 Months Ended
	Apr. 18, 2024	Feb. 15, 2024	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends on common stock (in usd per share)	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.05

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net income	$ 48,910,000	$ 58,113,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	67,391,000	41,761,000
Amortization of debt issue costs and accretion of discount	2,361,000	791,000
Operating lease amortization	3,565,000	3,103,000
Deferred tax benefit	(13,324,000)	(3,467,000)
Share-based compensation	15,009,000	12,056,000
Gain on sale of equity securities	(2,599,000)	0
Earnings of equity method investment	(2,167,000)	(2,631,000)
Loss on foreign currency remeasurement	2,052,000	4,531,000
Other, net	(1,666,000)	4,124,000
(Increase) decrease in assets:
Accounts receivable, net	1,329,000	1,261,000
Prepaid expenses and other assets	(431,000)	(628,000)
Other long-term assets	(734,000)	(2,282,000)
Increase (decrease) in liabilities:
Accrued liabilities and accounts payable	3,101,000	16,392,000
Income tax payable	1,103,000	(10,027,000)
Contract liability	11,561,000	1,181,000
Operating lease liabilities	(1,672,000)	(3,035,000)
Other long-term liabilities	(2,449,000)	(592,000)
Total adjustments	82,430,000	62,538,000
Net cash provided by operating activities	131,340,000	120,651,000
Cash flows from investing activities
Additions to software	(39,106,000)	(24,151,000)
Property and equipment acquired	(17,226,000)	(11,305,000)
Proceeds from maturities of available-for-sale debt securities	370,000	0
Purchase of equity securities	(111,000)	0
Proceeds from sale of equity securities	5,906,000	0
Acquisitions, net of cash acquired	0	(22,915,000)
Net cash used in investing activities	(50,167,000)	(58,371,000)
Cash flows from financing activities
Withholding taxes paid on share-based compensation	(9,825,000)	(5,955,000)
Net decrease in short-term borrowings	0	(20,000,000)
Dividends paid	(6,493,000)	(6,503,000)
Repurchase of common stock	(70,000,000)	(15,790,000)
Repayment of long-term debt	(11,933,000)	(10,375,000)
Repayment of other financing agreements	(7,046,000)	0
Settlement activity, net	21,703,000	5,587,000
Other financing activities, net	(2,182,000)	0
Net cash used in financing activities	(85,776,000)	(53,036,000)
Effect of foreign exchange rate on cash, cash equivalents and restricted cash	(10,234,000)	(1,841,000)
Net (decrease) increase in cash, cash equivalents and restricted cash	(14,837,000)	7,403,000
Cash, cash equivalents, restricted cash and cash included in settlement assets at beginning of the period	343,724,000	221,244,000
Cash, cash equivalents, restricted cash, and cash included in settlement assets at end of the period	$ 328,887,000	$ 228,647,000

The Company and Basis of Presentation

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

The Company and Basis of Presentation

The Company

Basis of Presentation

Change in presentation

The following table presents the effects of the change in presentation within the condensed consolidated statements of cash flows:


	For the six months ended June 30, 2023
(In Thousands)	As Previously Reported	Adjustment	As Adjusted
Cash flows from operating activities:
Accrued liabilities and accounts payable	21,979	(5,587)	16,392
Net cash provided by operating activities	126,238	(5,587)	120,651
Cash flows from financing activities:
Settlement activities, net	—	5,587	5,587
Net cash used in financing activities	(58,623)	5,587	(53,036)

Business Acquisition

6 Months Ended

Jun. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Business Acquisition

Acquisition of a Business


	Assets/Liabilities (at fair value)
( In thousands)
Cash and cash equivalents	$	37,147
Restricted cash	2,166
Accounts receivable, net	9,989
Prepaid expenses and other assets	5,975
Property and equipment, net	3,618
Operating lease right-of-use asset	3,191
Goodwill	341,801
Equity securities, at fair value	9,035
Long-term deferred tax asset	28,758
Other intangible assets, net	289,540
Other long-term assets	5,455
Total assets acquired	$	736,675
Accounts payable	13,241
Accrued liabilities	40,775
Operating lease liability	4,114
Current portion of long-term debt	11,400
Long-term debt	57,492
Contract liability	7,356
Deferred tax liability	76,150
Other long-term liabilities	15,134
Total liabilities assumed	$	225,662
Redeemable noncontrolling interests	39,340
Additional paid-in capital	471,673
Total liabilities and equity	$	736,675

The following table details the major groups of intangible assets acquired and the weighted average amortization period for these assets:


	Amount		Weighted-average life
(Dollar amounts in thousands)
Customer relationships	$	155,876	18
Trademark	47,688		10
Software packages	85,976		10
Total	$	289,540	14

Property and Equipment, net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and equipment, net consisted of the following:


(Dollar amounts in thousands)	Useful life in years	June 30, 2024		December 31, 2023
Buildings	30	$	2,104	$	2,193
Data processing equipment	3 - 5	198,263		187,761
Furniture and equipment	3 - 20	10,335		10,281
Leasehold improvements	5 -10	5,145		4,876
		215,847		205,111
Less - accumulated depreciation and amortization		(151,526)		(144,117)
Depreciable assets, net		64,321		60,994
Land		1,448		1,459
Property and equipment, net		$	65,769	$	62,453

Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill, allocated by operating segments, were as follows (see Note 15):


(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Total
Balance at December 31, 2023	$	160,972	$	452,597	$	138,121	$	40,010	$	791,700


Adjustment to goodwill from prior year acquisition	—		(1,352)		—		—		(1,352)
Foreign currency translation adjustments	—		(48,703)		—		—		(48,703)
Balance at June 30, 2024	$	160,972	$	402,542	$	138,121	$	40,010	$	741,645

The carrying amount of other intangible assets at June 30, 2024 and December 31, 2023 was as follows:


		June 30, 2024
(Dollar amounts in thousands)	Useful life in years	Gross amount		Accumulated amortization		Net carrying amount
Customer relationships	8 - 20	$	550,381	$	(373,726)	$	176,655
Trademarks	10 - 15	88,097		(46,238)		$	41,859
Software packages	3 - 10	522,934		(292,938)		$	229,996
Non-compete agreement	5	3,555		(428)		$	3,127
Other intangible assets, net		$	1,164,967	$	(713,330)	$	451,637


		December 31, 2023
(Dollar amounts in thousands)	Useful life in years	Gross amount		Accumulated amortization		Net carrying amount
Customer relationships	8 - 20	$	568,284	$	(340,952)	$	227,332
Trademarks	1 - 15	94,203		(41,319)		52,884
Software packages	3 - 10	510,898		(274,610)		236,288
Non-compete agreement	5	1,735		(169)		1,566
Other intangible assets, net		$	1,175,120	$	(657,050)	$	518,070

The estimated amortization expense of the other intangible balances outstanding at June 30, 2024, for the remainder of 2024 and the years thereafter is as follows:


(In thousands)
Remaining 2024	$	54,782
2025	87,631
2026	74,283
2027	61,724
2028	49,983
Thereafter	123,234

Debt and Short-Term Borrowings

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt and Short-Term Borrowings

Debt at June 30, 2024 and December 31, 2023 was as follows:


(In thousands)	June 30, 2024		December 31, 2023
2027 Term A Loan bearing interest at a variable interest rate (SOFR plus applicable margin(1)(2))	$	438,021	$	449,450


2030 Term B Loan bearing interest at a variable interest rate (SOFR plus applicable margin(1)(3))	521,847		521,233

Deferred consideration from Business Combinations	11,505		19,467

Note payable due September 1, 2030(1)	7,325		7,403
Total debt	$	978,698	$	997,553

(1)Net of unaccreted discount and unamortized debt issue costs, as applicable.

(2)Subject to a minimum rate ("SOFR floor") of 0.00% plus applicable margin of 2.00% at June 30, 2024 and 1.50% at December 31, 2023.

(3)Subject to a SOFR floor of 0.50% plus applicable margin of 3.25% at June 30, 2024 and an applicable margin of 3.50% at December 31, 2023.

Secured Credit Facilities

Deferred Consideration from Business Combinations

Note Payable

Interest Rate Swaps

Swap Agreement

Effective date

Maturity Date

Notional Amount

Variable Rate

Fixed Rate

2018 Swap

April 2020

November 2024

$250 million

1-month SOFR

2.929%

2023 Swap

November 2024

December 2027

$250 million

1-month SOFR

3.375%

2024 Swap

March 2024

October 2027

$150 million

1-month SOFR

4.182%

2024 Swap

March 2024

October 2027

$150 million

1-month SOFR

4.172%

Financial Instruments and Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

Recurring Fair Value Measurements

The following table presents assets and liabilities measured at fair value on a recurring basis at June 30, 2024 and December 31, 2023:


	June 30, 2024								December 31, 2023
(In thousands)	Level 2		Level 3		Measured at NAV		Total		Level 2		Level 3		Total
Financial assets:
Debt securities AFS	$	1,725	$	—	$	—	$	1,725	$	2,095	$	—	$	2,095
Equity securities	—		—		4,960		4,960		6,447		2,966		9,413
Interest rate swaps	7,241		—		—		7,241		4,385		—		4,385
Financial liabilities:
Interest rate swaps	—		—		—		—		900		—		900

Debt Securities Available for Sale ("AFS")

Interest rate swaps

Equity Securities

The following table presents the changes in equity securities classified as Level 3 assets:


(In thousands)	Equity Securities
Balance at December 31, 2023	$	2,966
Disposition of equity securities	(5,487)
Change in fair value of equity securities, recognized through Other income, net	2,521

Balance at June 30, 2024	$	—

There were no transfers in or out of Level 3 during the six-month periods ended June 30, 2024 or June 30, 2023.

Equity Securities Measured at Net Asset Value (NAV)

Financial assets and liabilities not measured at fair value

The following table presents the carrying value and estimated fair value for financial instruments at June 30, 2024 and December 31, 2023:


	June 30, 2024		December 31, 2023
(In thousands)	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Financial liabilities:
2027 Term A Loan Facility	438,021	443,745	449,450	452,337
2030 Term B Loan Facility	521,847	542,700	521,240	539,325

Redeemable Noncontrolling Interests

6 Months Ended

Jun. 30, 2024

Redeemable Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interests

Percentage of redeemable noncontrolling interest

Earliest exercise date

Formula of redemption value

Homie Do Brasil Informatica

40%

April 1, 2025

Variable multiple of gross sales dependent upon EBITDA margin and gross sales attained times percentage of ownership

Rosk Software S.A.

49%

March 15, 2025

Variable multiple of gross sales dependent upon EBITDA margin attained times percentage of ownership

Compliasset Software e Solucoes Digitais LTDA.

40%

March 15, 2026

Variable multiple of net sales dependent upon EBITDA margin attained plus net debt times percentage of ownership

Lote45 Participacoes S.A.

48%

January 1, 2027

Variable multiple of net sales dependent upon EBITDA margin attained plus net debt minus BRL$10.0 million times percentage of ownership


(In thousands)	Redeemable noncontrolling interests
Balance at December 31, 2023	$	36,968
Net income attributable non-controlling interests	1,213
Adjustment of redeemable non-controlling interests to redemption value	(14)

Distributions from redeemable non-controlling interests	(294)
Foreign currency translation adjustments	582
Balance at June 30, 2024	$	38,455

Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Equity

Accumulated Other Comprehensive (Loss) Income

The following table provides a summary of the changes in the balances of accumulated other comprehensive (loss) income for the six months ended June 30, 2024:


(In thousands)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Unrealized Gains (Losses) on Debt Securities AFS		Total
Balance - December 31, 2023, net of tax	$	14,847	$	3,336	$	26	$	18,209
Other comprehensive (loss) income before reclassifications	(90,827)		7,522		(3)		(83,308)
Effective portion reclassified to net income	—		(4,140)		—		(4,140)
Balance - June 30, 2024, net of tax	$	(75,980)	$	6,718	$	23	$	(69,239)

Share Repurchase

Share-based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-based Compensation

Long-term Incentive Plan ("LTIP")

The following table summarizes nonvested RSUs activity for the six months ended June 30, 2024:


Nonvested RSUs	Shares	Weighted-average grant date fair value
Nonvested at December 31, 2023	1,799,012	$	39.42
Granted	1,146,952	36.81
Vested	(778,201)	36.83
Forfeited	(63,493)	38.16
Nonvested at June 30, 2024	2,104,270	$	38.56

As of June 30, 2024, the maximum unrecognized cost for RSUs was $54.9 million. The cost is expected to be recognized over a weighted average period of 2.3 years.

Revenues

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenues

Disaggregation of Revenue

In the following tables, revenue for each segment, excluding intersegment revenues, is disaggregated by timing of revenue

recognition for the periods indicated.



	Three months ended June 30, 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	$	78	$	996	$	—	$	1,653	$	2,727
Products and services transferred over time	34,735		68,514		45,319		60,683		$	209,251
	$	34,813	$	69,510	$	45,319	$	62,336	$	211,978



	Three months ended June 30, 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	$	125	$	639	$	—	$	1,930	$	2,694
Products and services transferred over time	33,983		34,110		41,248		55,041		164,382
	$	34,108	$	34,749	$	41,248	$	56,971	$	167,076


	Six months ended June 30, 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	$	110	$	1,553	$	—	$	4,128	$	5,791
Products and services transferred over time	68,647		138,104		88,418		116,336		$	411,505
	$	68,757	$	139,657	$	88,418	$	120,464	$	417,296


	Six months ended June 30, 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	$	238	$	1,253	$	—	$	3,657	$	5,148
Products and services transferred over time	66,349		64,789		81,595		109,009		321,742
	$	66,587	$	66,042	$	81,595	$	112,666	$	326,890

Contract Balances

The following table provides information about contract assets from contracts with customers for the six months ended June 30, 2024 and the year ended December 31, 2023.


(In thousands)	June 30, 2024		December 31, 2023
Balance at beginning of period	$	13,917	$	4,749
Services transferred to customers	15,000		28,165
Transfers to accounts receivable	(16,510)		(18,997)
Balance at end of period	$	12,407	$	13,917

Transaction price allocated to the remaining performance obligations

Current Expected Credit Losses

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Current Expected Credit Losses

Allowance for Current Expected Credit Losses

industry sector and customer's geographical location) and days past due (i.e., delinquency status), while considering the following:

•Customers in the same geographical location share similar risk characteristics associated with the macroeconomic environment of their country.

Rollforward of the Allowance for Expected Current Credit Losses

The following table provides information about the allowance for expected current credit losses on trade receivables for the six months ended June 30, 2024 and the year ended December 31, 2023



(In thousands)	June 30, 2024		December 31, 2023
Balance at beginning of period	$	4,010	$	2,159
Current period provision for expected credit losses	851		2,218
Write-offs	(1,412)		(384)
Recoveries of amounts previously written-off	1		17
Balance at end of period	$	3,450	$	4,010

The Company does not have a delinquency threshold for writing-off trade receivables. The Company has a formal process for the review and approval of write-offs.

Income Tax

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Tax

The components of income tax expense for the three and six months ended June 30, 2024 and 2023, respectively, consisted of the following:


	Three months ended June 30,				Six months ended June 30,
(In thousands)	2024		2023		2024		2023

Current tax provision	$	8,705	$	7,845	$	14,717	$	12,871
Deferred tax benefit	(7,604)		(1,259)		(13,324)		(3,467)
Income tax expense	$	1,101	$	6,586	$	1,393	$	9,404


	Three months ended June 30,				Six months ended June 30,
(In thousands)	2024		2023		2024		2023

Current tax provision
Puerto Rico	$	1,724	$	2,595	$	2,330	$	3,775
United States	39		47		129		58
Foreign countries	6,942		5,203		12,258		9,038
Total current tax provision	$	8,705	$	7,845	$	14,717	$	12,871
Deferred tax benefit
Puerto Rico	$	(3,666)	$	(189)	$	(7,325)	$	(424)
United States	11		29		2		3
Foreign countries	(3,949)		(1,099)		(6,001)		(3,046)
Total deferred tax benefit	$	(7,604)	$	(1,259)	$	(13,324)	$	(3,467)

Income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following:


	Six months ended June 30,
(In thousands)	2024		2023
Computed income tax at statutory rates	$	18,864	$	25,319
Differences in tax rates due to multiple jurisdictions	2,806		2,350
Effect of income subject to tax-exemption grant	(20,095)		(16,219)

Unrecognized tax expense	(1,192)		69
Excess tax benefits on share-based compensation	(511)		(23)
Tax credits for research and development activities	—		(884)

Other, net	1,521		(1,208)
Income tax expense	$	1,393	$	9,404

Net Income Per Common Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Net Income Per Common Share

The reconciliation of the numerator and the denominator of net income per common share is as follows:


	Three Months Ended June 30,				Six months ended June 30,
(In thousands, except per share information)	2024		2023		2024		2023
Net income available to EVERTEC, Inc.’s common shareholders	$	31,901	$	28,155	$	47,880	$	58,207
Weighted average common shares outstanding	64,420,756		65,046,328		64,800,361		65,007,528
Weighted average potential dilutive common shares (1)	729,988		463,763		899,024		563,925
Weighted average common shares outstanding - assuming dilution	65,150,744		65,510,091		65,699,385		65,571,453
Net income per common share - basic	$	0.50	$	0.43	$	0.74	$	0.90
Net income per common share - diluted	$	0.49	$	0.43	$	0.73	$	0.89

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies EVERTEC is a defendant in a number of legal proceedings arising in the ordinary course of business. Based on the opinion of legal counsel and other factors, management believes that the final disposition of these matters will not have a material adverse effect on the business, results of operations, financial condition, or cash flows of the Company. The Company has identified certain claims in which a loss may be incurred, but in the aggregate the loss would be insignificant. For other claims, where the proceedings are in an initial phase, the Company is unable to estimate the range of possible loss, if any, but at this time, management believes that any loss related to such claims will not be material.

Segment Information

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information

The Company operates in four business segments: Payment Services - Puerto Rico & Caribbean, Latin America Payments and Solutions, Merchant Acquiring, and Business Solutions.

•marketing,

•corporate finance and accounting,

•human resources,

•legal,

•risk management functions,

•internal audit,

•corporate debt related costs,

•non-operating depreciation and amortization expenses generated as a result of merger and acquisition activity,

•intersegment revenues and expenses, and

•other non-recurring fees and expenses that are not considered when management evaluates financial performance at a segment level

The following tables set forth information about the Company’s operations by its four business segments for the periods indicated:


	Three Months Ended June 30, 2024
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	54,199	$	74,669	$	45,319	$	62,336	$	(24,545)	$	211,978
Operating costs and expenses	31,733		74,353		29,481		37,663		(4,612)		168,618
Depreciation and amortization	7,496		15,051		1,409		3,750		5,244		32,950
Non-operating income	134		5,274		—		151		196		5,755
EBITDA	30,096		20,641		17,247		28,574		(14,493)		82,065
Compensation and benefits (2)	771		1,654		787		906		3,483		7,601
Transaction, refinancing and other (3)	456		(2,359)		214		289		190		(1,210)
Loss (gain) on foreign currency remeasurement (4)	35		(2,436)		—		—		(3)		(2,404)
Adjusted EBITDA	$	31,358	$	17,500	$	18,248	$	29,769	$	(10,823)	$	86,052

(2)Primarily represents share-based compensation and severance payments.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.


	Three Months Ended June 30, 2023
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	50,795	$	39,076	$	41,248	$	56,971	$	(21,014)	$	167,076
Operating costs and expenses	28,895		33,666		27,616		39,097		3,029		132,303
Depreciation and amortization	6,087		5,393		1,150		4,469		5,230		22,329
Non-operating income	115		2,290		1		66		928		3,400
EBITDA	28,102		13,093		14,783		22,409		(17,885)		60,502
Compensation and benefits (2)	842		999		860		965		5,035		8,701
Transaction, refinancing and other(3)	288		253		—		—		5,068		5,609
(Gain) loss on foreign currency remeasurement (4)	(49)		(285)		—		—		1		(333)
Adjusted EBITDA	$	29,183	$	14,060	$	15,643	$	23,374	$	(7,781)	$	74,479

(1)Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $13.4 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction-processing of $4.4 million from Latin America Payments and Solutions to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction-processing and monitoring fees of $3.3 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.

(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.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.


	Six months ended June 30, 2024
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	107,230	$	148,885	$	88,418	$	120,464	$	(47,701)	$	417,296
Operating costs and expenses	62,685		150,384		58,300		78,114		(8,350)		341,133
Depreciation and amortization	14,758		31,308		2,642		8,188		10,495		67,391
Non-operating income	282		4,109		—		290		1,529		6,210
EBITDA	59,585		33,918		32,760		50,828		(27,327)		149,764
Compensation and benefits (2)	1,469		3,152		1,494		1,691		7,785		15,591
Transaction, refinancing and other fees (3)	723		(5,388)		214		289		984		(3,178)
(Gain) loss on foreign currency remeasurement (4)	(67)		2,115		—		—		4		2,052
Adjusted EBITDA	$	61,710	$	33,797	$	34,468	$	52,808	$	(18,554)	$	164,229

(1)Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $28.8 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction-processing of $9.2 million from Latin America Payments and Solutions to both Payment Services- Puerto Rico & Caribbean and Business Solutions, and transaction-processing and monitoring fees of $9.7 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.

(2)Primarily represents share-based compensation and severance payments.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.


	Six months ended June 30, 2023
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	99,224	$	74,393	$	81,595	$	112,666	$	(40,988)	$	326,890
Operating costs and expenses	56,617		62,978		54,305		78,010		117		252,027
Depreciation and amortization	11,975		8,104		2,279		8,957		10,446		41,761
Non-operating income (expenses)	480		(1,495)		308		598		810		701
EBITDA	55,062		18,024		29,877		44,211		(29,849)		117,325
Compensation and benefits (2)	1,370		1,651		1,392		1,530		8,603		14,546
Transaction, refinancing and other fees (3)	580		253		—		—		4,379		5,212
Loss (gain) on foreign currency remeasurement (4)	46		4,487		—		—		(2)		4,531
Adjusted EBITDA	$	57,058	$	24,415	$	31,269	$	45,741	$	(16,869)	$	141,614

(1)Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $26.4 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction-processing of $8.4 million from Latin America Payments and Solutions to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction-processing and monitoring fees of $6.2 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.

(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.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies

The reconciliation of consolidated net income to EBITDA is as follows:


	Three months ended June 30,				Six months ended June 30,
(In thousands)	2024		2023		2024		2023
Net Income	$	32,523	$	28,050	$	48,910	$	58,113
Add:
Income tax expense	1,101		6,586		1,393		9,404
Interest expense, net	15,491		3,537		32,070		8,047
Depreciation and amortization	32,950		22,329		67,391		41,761
Total EBITDA	$	82,065	$	60,502	$	149,764	$	117,325

Supplemental Statement of Cash Flows Information

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Statement of Cash Flows Information

Supplemental statement of cash flows information is as follows:


	Six months ended June 30,
(In thousands)	2024	2023
Supplemental disclosure of cash flow information:
Cash paid for interest	18,264	11,056
Cash paid for income taxes	10,506	21,226
Supplemental disclosure of non-cash activities:
Payable due to vendor related to equipment and software acquired	2,856	2,930

Right-of-use assets obtained in exchange for operating lease liabilities	2,693	—
Non-cash investing activities
Trade-in of equipment	2,193	—

Reconciliation of cash, cash equivalents, restricted cash and cash included in settlement assets as presented on the cash flow statement was as follows:


	June 30,
(In thousands)	2024	2023

Cash and cash equivalents	257,699	191,620
Restricted cash	24,434	$	19,485
Cash and cash equivalents included in settlement assets	46,754	17,542
Cash, cash equivalents, restricted cash and cash included in settlement assets	328,887	228,647

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 18, 2024, the Board declared a regular quarterly cash dividend of $0.05 per share on the Company’s outstanding shares of common stock. The dividend is expected to be paid on September 6, 2024 to stockholders of record as of the close of business on July 29, 2024. The Board anticipates declaring this dividend in future quarters on a regular basis; however future declarations of dividends are subject to the Board’s approval and may be adjusted as business needs or market conditions change. On July 9, 2024, the Company completed the previously announced ASR transaction described in Note 8 - Equity. In connection with the settlement of the ASR, the Company received 467,362 shares, in addition to the 1,516,793 shares received in March. No cash was exchanged as part of the settlement of the ASR. All of the shares received as part of the ASR were retired.

The Company and Basis of Presentation (Policies)	6 Months Ended
The Company and Basis of Presentation (Policies)	Jun. 30, 2024
Accounting Policies [Abstract]
The Company	The Company EVERTEC, Inc. and its subsidiaries (collectively the “Company” or “EVERTEC”) is a leading full-service transaction-processing business and financial technology provider in Latin America, Puerto Rico and the Caribbean. The Company is based in Puerto Rico and provides a broad range of merchant acquiring, payment services and business process management services. The Company operates across 26 countries in the region. EVERTEC owns and operates the ATH network, which we believe is one of the leading personal identification number debit networks in the Caribbean and Latin America. In addition, EVERTEC provides a comprehensive suite of services for core banking, cash processing and fulfillment in Puerto Rico and technology outsourcing in all the regions the Company serves. EVERTEC serves a broad and diversified customer base of leading financial institutions, merchants, corporations, and government agencies with solutions that are essential to their operations.
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements of EVERTEC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The preparation of the accompanying unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements. Actual results could differ from these estimates. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted from these statements pursuant to the rules and regulations of the Securities and Exchange Commission and, accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Company for the year ended December 31, 2023, included in the Company’s 2023 Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements, prepared in accordance with GAAP, contain all adjustments necessary for a fair presentation. Intercompany accounts and transactions are eliminated in consolidation. Certain amounts from prior periods have been reclassified to conform to the current period presentation.
Change in presentation	Change in presentation During the second quarter of 2024, the Company elected to change the manner in which it presents cash flows associated with settlement activities from operating activities to financing activities within the condensed consolidated statements of cash flows. In connection with this change, the Company reclassified comparative amounts for the six-month period ended June 30, 2023. Settlement cash and cash equivalents represents cash received from agents, payment networks, bank partners, merchants or direct consumers. In certain cases, the amounts may be invested into short-term, highly liquid investments from the time the funds are collected until payments are made to the applicable recipients. This change does not have an impact on the condensed consolidated balance sheet, the condensed consolidated statement of income and comprehensive (loss) income or on the condensed consolidated statement of changes in stockholders’ equity.

The Company and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of effects of the change in presentation within cash flows

The following table presents the effects of the change in presentation within the condensed consolidated statements of cash flows:


	For the six months ended June 30, 2023
(In Thousands)	As Previously Reported	Adjustment	As Adjusted
Cash flows from operating activities:
Accrued liabilities and accounts payable	21,979	(5,587)	16,392
Net cash provided by operating activities	126,238	(5,587)	120,651
Cash flows from financing activities:
Settlement activities, net	—	5,587	5,587
Net cash used in financing activities	(58,623)	5,587	(53,036)

Business Acquisition (Tables)

6 Months Ended

Jun. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of fair value of assets acquired and liabilities assumed

The preliminary purchase price allocation based on the applicable exchange rate at the date of acquisition is as follows:


	Assets/Liabilities (at fair value)
( In thousands)
Cash and cash equivalents	$	37,147
Restricted cash	2,166
Accounts receivable, net	9,989
Prepaid expenses and other assets	5,975
Property and equipment, net	3,618
Operating lease right-of-use asset	3,191
Goodwill	341,801
Equity securities, at fair value	9,035
Long-term deferred tax asset	28,758
Other intangible assets, net	289,540
Other long-term assets	5,455
Total assets acquired	$	736,675
Accounts payable	13,241
Accrued liabilities	40,775
Operating lease liability	4,114
Current portion of long-term debt	11,400
Long-term debt	57,492
Contract liability	7,356
Deferred tax liability	76,150
Other long-term liabilities	15,134
Total liabilities assumed	$	225,662
Redeemable noncontrolling interests	39,340
Additional paid-in capital	471,673
Total liabilities and equity	$	736,675

Schedule of intangible assets acquired and weighted average amortization period

The following table details the major groups of intangible assets acquired and the weighted average amortization period for these assets:


	Amount		Weighted-average life
(Dollar amounts in thousands)
Customer relationships	$	155,876	18
Trademark	47,688		10
Software packages	85,976		10
Total	$	289,540	14

Property and Equipment, net (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Summary of property and equipment, net

Property and equipment, net consisted of the following:


(Dollar amounts in thousands)	Useful life in years	June 30, 2024		December 31, 2023
Buildings	30	$	2,104	$	2,193
Data processing equipment	3 - 5	198,263		187,761
Furniture and equipment	3 - 20	10,335		10,281
Leasehold improvements	5 -10	5,145		4,876
		215,847		205,111
Less - accumulated depreciation and amortization		(151,526)		(144,117)
Depreciable assets, net		64,321		60,994
Land		1,448		1,459
Property and equipment, net		$	65,769	$	62,453

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of changes in carrying amount of goodwill allocated by reportable segments

The changes in the carrying amount of goodwill, allocated by operating segments, were as follows (see Note 15):


(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Total
Balance at December 31, 2023	$	160,972	$	452,597	$	138,121	$	40,010	$	791,700


Adjustment to goodwill from prior year acquisition	—		(1,352)		—		—		(1,352)
Foreign currency translation adjustments	—		(48,703)		—		—		(48,703)
Balance at June 30, 2024	$	160,972	$	402,542	$	138,121	$	40,010	$	741,645

Summary of carrying amount of other intangible assets

The carrying amount of other intangible assets at June 30, 2024 and December 31, 2023 was as follows:


		June 30, 2024
(Dollar amounts in thousands)	Useful life in years	Gross amount		Accumulated amortization		Net carrying amount
Customer relationships	8 - 20	$	550,381	$	(373,726)	$	176,655
Trademarks	10 - 15	88,097		(46,238)		$	41,859
Software packages	3 - 10	522,934		(292,938)		$	229,996
Non-compete agreement	5	3,555		(428)		$	3,127
Other intangible assets, net		$	1,164,967	$	(713,330)	$	451,637


		December 31, 2023
(Dollar amounts in thousands)	Useful life in years	Gross amount		Accumulated amortization		Net carrying amount
Customer relationships	8 - 20	$	568,284	$	(340,952)	$	227,332
Trademarks	1 - 15	94,203		(41,319)		52,884
Software packages	3 - 10	510,898		(274,610)		236,288
Non-compete agreement	5	1,735		(169)		1,566
Other intangible assets, net		$	1,175,120	$	(657,050)	$	518,070

Summary of estimated amortization expenses

The estimated amortization expense of the other intangible balances outstanding at June 30, 2024, for the remainder of 2024 and the years thereafter is as follows:


(In thousands)
Remaining 2024	$	54,782
2025	87,631
2026	74,283
2027	61,724
2028	49,983
Thereafter	123,234

Debt and Short-Term Borrowings (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Summary of total debt

Debt at June 30, 2024 and December 31, 2023 was as follows:


(In thousands)	June 30, 2024		December 31, 2023
2027 Term A Loan bearing interest at a variable interest rate (SOFR plus applicable margin(1)(2))	$	438,021	$	449,450


2030 Term B Loan bearing interest at a variable interest rate (SOFR plus applicable margin(1)(3))	521,847		521,233

Deferred consideration from Business Combinations	11,505		19,467

Note payable due September 1, 2030(1)	7,325		7,403
Total debt	$	978,698	$	997,553

(1)Net of unaccreted discount and unamortized debt issue costs, as applicable.

(2)Subject to a minimum rate ("SOFR floor") of 0.00% plus applicable margin of 2.00% at June 30, 2024 and 1.50% at December 31, 2023.

(3)Subject to a SOFR floor of 0.50% plus applicable margin of 3.25% at June 30, 2024 and an applicable margin of 3.50% at December 31, 2023.

Summary of interest rate swap transaction

Swap Agreement

Effective date

Maturity Date

Notional Amount

Variable Rate

Fixed Rate

2018 Swap

April 2020

November 2024

$250 million

1-month SOFR

2.929%

2023 Swap

November 2024

December 2027

$250 million

1-month SOFR

3.375%

2024 Swap

March 2024

October 2027

$150 million

1-month SOFR

4.182%

2024 Swap

March 2024

October 2027

$150 million

1-month SOFR

4.172%

Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair value measurements for assets and liabilities at fair value on recurring basis

The following table presents assets and liabilities measured at fair value on a recurring basis at June 30, 2024 and December 31, 2023:


	June 30, 2024								December 31, 2023
(In thousands)	Level 2		Level 3		Measured at NAV		Total		Level 2		Level 3		Total
Financial assets:
Debt securities AFS	$	1,725	$	—	$	—	$	1,725	$	2,095	$	—	$	2,095
Equity securities	—		—		4,960		4,960		6,447		2,966		9,413
Interest rate swaps	7,241		—		—		7,241		4,385		—		4,385
Financial liabilities:
Interest rate swaps	—		—		—		—		900		—		900

Summary of equity securities classified as Level 3 assets

The following table presents the changes in equity securities classified as Level 3 assets:


(In thousands)	Equity Securities
Balance at December 31, 2023	$	2,966
Disposition of equity securities	(5,487)
Change in fair value of equity securities, recognized through Other income, net	2,521

Balance at June 30, 2024	$	—

Summary of carrying value and estimated fair values for financial instruments

The following table presents the carrying value and estimated fair value for financial instruments at June 30, 2024 and December 31, 2023:


	June 30, 2024		December 31, 2023
(In thousands)	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Financial liabilities:
2027 Term A Loan Facility	438,021	443,745	449,450	452,337
2030 Term B Loan Facility	521,847	542,700	521,240	539,325

Redeemable Noncontrolling Interests (Tables)

6 Months Ended

Jun. 30, 2024

Redeemable Noncontrolling Interest [Abstract]

Summary of terms and changes in redeemable noncontrolling interests

The following table summarizes the terms of the issued options:

Percentage of redeemable noncontrolling interest

Earliest exercise date

Formula of redemption value

Homie Do Brasil Informatica

40%

April 1, 2025

Variable multiple of gross sales dependent upon EBITDA margin and gross sales attained times percentage of ownership

Rosk Software S.A.

49%

March 15, 2025

Variable multiple of gross sales dependent upon EBITDA margin attained times percentage of ownership

Compliasset Software e Solucoes Digitais LTDA.

40%

March 15, 2026

Variable multiple of net sales dependent upon EBITDA margin attained plus net debt times percentage of ownership

Lote45 Participacoes S.A.

48%

January 1, 2027

Variable multiple of net sales dependent upon EBITDA margin attained plus net debt minus BRL$10.0 million times percentage of ownership

The following table presents changes in RNCI:


(In thousands)	Redeemable noncontrolling interests
Balance at December 31, 2023	$	36,968
Net income attributable non-controlling interests	1,213
Adjustment of redeemable non-controlling interests to redemption value	(14)

Distributions from redeemable non-controlling interests	(294)
Foreign currency translation adjustments	582
Balance at June 30, 2024	$	38,455

Equity (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Summary of changes in balances of accumulated other comprehensive income (loss)

The following table provides a summary of the changes in the balances of accumulated other comprehensive (loss) income for the six months ended June 30, 2024:


(In thousands)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Unrealized Gains (Losses) on Debt Securities AFS		Total
Balance - December 31, 2023, net of tax	$	14,847	$	3,336	$	26	$	18,209
Other comprehensive (loss) income before reclassifications	(90,827)		7,522		(3)		(83,308)
Effective portion reclassified to net income	—		(4,140)		—		(4,140)
Balance - June 30, 2024, net of tax	$	(75,980)	$	6,718	$	23	$	(69,239)

Share-based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of nonvested RSUs activity

The following table summarizes nonvested RSUs activity for the six months ended June 30, 2024:


Nonvested RSUs	Shares	Weighted-average grant date fair value
Nonvested at December 31, 2023	1,799,012	$	39.42
Granted	1,146,952	36.81
Vested	(778,201)	36.83
Forfeited	(63,493)	38.16
Nonvested at June 30, 2024	2,104,270	$	38.56

Revenues (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Summary of disaggregation of revenue

In the following tables, revenue for each segment, excluding intersegment revenues, is disaggregated by timing of revenue

recognition for the periods indicated.



	Three months ended June 30, 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	$	78	$	996	$	—	$	1,653	$	2,727
Products and services transferred over time	34,735		68,514		45,319		60,683		$	209,251
	$	34,813	$	69,510	$	45,319	$	62,336	$	211,978



	Three months ended June 30, 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	$	125	$	639	$	—	$	1,930	$	2,694
Products and services transferred over time	33,983		34,110		41,248		55,041		164,382
	$	34,108	$	34,749	$	41,248	$	56,971	$	167,076


	Six months ended June 30, 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	$	110	$	1,553	$	—	$	4,128	$	5,791
Products and services transferred over time	68,647		138,104		88,418		116,336		$	411,505
	$	68,757	$	139,657	$	88,418	$	120,464	$	417,296


	Six months ended June 30, 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	$	238	$	1,253	$	—	$	3,657	$	5,148
Products and services transferred over time	66,349		64,789		81,595		109,009		321,742
	$	66,587	$	66,042	$	81,595	$	112,666	$	326,890

Summary of contract balances

The following table provides information about contract assets from contracts with customers for the six months ended June 30, 2024 and the year ended December 31, 2023.


(In thousands)	June 30, 2024		December 31, 2023
Balance at beginning of period	$	13,917	$	4,749
Services transferred to customers	15,000		28,165
Transfers to accounts receivable	(16,510)		(18,997)
Balance at end of period	$	12,407	$	13,917

Current Expected Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of allowance for credit losses on trade receivables

The following table provides information about the allowance for expected current credit losses on trade receivables for the six months ended June 30, 2024 and the year ended December 31, 2023



(In thousands)	June 30, 2024		December 31, 2023
Balance at beginning of period	$	4,010	$	2,159
Current period provision for expected credit losses	851		2,218
Write-offs	(1,412)		(384)
Recoveries of amounts previously written-off	1		17
Balance at end of period	$	3,450	$	4,010

Income Tax (Tables)

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Components of income tax expense

The components of income tax expense for the three and six months ended June 30, 2024 and 2023, respectively, consisted of the following:


	Three months ended June 30,				Six months ended June 30,
(In thousands)	2024		2023		2024		2023

Current tax provision	$	8,705	$	7,845	$	14,717	$	12,871
Deferred tax benefit	(7,604)		(1,259)		(13,324)		(3,467)
Income tax expense	$	1,101	$	6,586	$	1,393	$	9,404

Segregation of income tax expense based on location of operations

The following table presents the components of income tax expense for the three and six months ended June 30, 2024 and 2023, and its segregation based on location of operations:


	Three months ended June 30,				Six months ended June 30,
(In thousands)	2024		2023		2024		2023

Current tax provision
Puerto Rico	$	1,724	$	2,595	$	2,330	$	3,775
United States	39		47		129		58
Foreign countries	6,942		5,203		12,258		9,038
Total current tax provision	$	8,705	$	7,845	$	14,717	$	12,871
Deferred tax benefit
Puerto Rico	$	(3,666)	$	(189)	$	(7,325)	$	(424)
United States	11		29		2		3
Foreign countries	(3,949)		(1,099)		(6,001)		(3,046)
Total deferred tax benefit	$	(7,604)	$	(1,259)	$	(13,324)	$	(3,467)

Schedule of income tax expense differs from computed income tax at statutory rates

Income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following:


	Six months ended June 30,
(In thousands)	2024		2023
Computed income tax at statutory rates	$	18,864	$	25,319
Differences in tax rates due to multiple jurisdictions	2,806		2,350
Effect of income subject to tax-exemption grant	(20,095)		(16,219)

Unrecognized tax expense	(1,192)		69
Excess tax benefits on share-based compensation	(511)		(23)
Tax credits for research and development activities	—		(884)

Other, net	1,521		(1,208)
Income tax expense	$	1,393	$	9,404

Net Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of reconciliation of numerator and denominator of net income per common share

The reconciliation of the numerator and the denominator of net income per common share is as follows:


	Three Months Ended June 30,				Six months ended June 30,
(In thousands, except per share information)	2024		2023		2024		2023
Net income available to EVERTEC, Inc.’s common shareholders	$	31,901	$	28,155	$	47,880	$	58,207
Weighted average common shares outstanding	64,420,756		65,046,328		64,800,361		65,007,528
Weighted average potential dilutive common shares (1)	729,988		463,763		899,024		563,925
Weighted average common shares outstanding - assuming dilution	65,150,744		65,510,091		65,699,385		65,571,453
Net income per common share - basic	$	0.50	$	0.43	$	0.74	$	0.90
Net income per common share - diluted	$	0.49	$	0.43	$	0.73	$	0.89

Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Summary of information about operations by business segments

The following tables set forth information about the Company’s operations by its four business segments for the periods indicated:


	Three Months Ended June 30, 2024
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	54,199	$	74,669	$	45,319	$	62,336	$	(24,545)	$	211,978
Operating costs and expenses	31,733		74,353		29,481		37,663		(4,612)		168,618
Depreciation and amortization	7,496		15,051		1,409		3,750		5,244		32,950
Non-operating income	134		5,274		—		151		196		5,755
EBITDA	30,096		20,641		17,247		28,574		(14,493)		82,065
Compensation and benefits (2)	771		1,654		787		906		3,483		7,601
Transaction, refinancing and other (3)	456		(2,359)		214		289		190		(1,210)
Loss (gain) on foreign currency remeasurement (4)	35		(2,436)		—		—		(3)		(2,404)
Adjusted EBITDA	$	31,358	$	17,500	$	18,248	$	29,769	$	(10,823)	$	86,052

(2)Primarily represents share-based compensation and severance payments.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.


	Three Months Ended June 30, 2023
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	50,795	$	39,076	$	41,248	$	56,971	$	(21,014)	$	167,076
Operating costs and expenses	28,895		33,666		27,616		39,097		3,029		132,303
Depreciation and amortization	6,087		5,393		1,150		4,469		5,230		22,329
Non-operating income	115		2,290		1		66		928		3,400
EBITDA	28,102		13,093		14,783		22,409		(17,885)		60,502
Compensation and benefits (2)	842		999		860		965		5,035		8,701
Transaction, refinancing and other(3)	288		253		—		—		5,068		5,609
(Gain) loss on foreign currency remeasurement (4)	(49)		(285)		—		—		1		(333)
Adjusted EBITDA	$	29,183	$	14,060	$	15,643	$	23,374	$	(7,781)	$	74,479

(1)Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $13.4 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction-processing of $4.4 million from Latin America Payments and Solutions to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction-processing and monitoring fees of $3.3 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.

(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.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.


	Six months ended June 30, 2024
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	107,230	$	148,885	$	88,418	$	120,464	$	(47,701)	$	417,296
Operating costs and expenses	62,685		150,384		58,300		78,114		(8,350)		341,133
Depreciation and amortization	14,758		31,308		2,642		8,188		10,495		67,391
Non-operating income	282		4,109		—		290		1,529		6,210
EBITDA	59,585		33,918		32,760		50,828		(27,327)		149,764
Compensation and benefits (2)	1,469		3,152		1,494		1,691		7,785		15,591
Transaction, refinancing and other fees (3)	723		(5,388)		214		289		984		(3,178)
(Gain) loss on foreign currency remeasurement (4)	(67)		2,115		—		—		4		2,052
Adjusted EBITDA	$	61,710	$	33,797	$	34,468	$	52,808	$	(18,554)	$	164,229

(1)Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $28.8 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction-processing of $9.2 million from Latin America Payments and Solutions to both Payment Services- Puerto Rico & Caribbean and Business Solutions, and transaction-processing and monitoring fees of $9.7 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.

(2)Primarily represents share-based compensation and severance payments.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.


	Six months ended June 30, 2023
(In thousands)	Payment Services - Puerto Rico & Caribbean		Latin America Payments and Solutions		Merchant Acquiring, net		Business Solutions		Corporate and Other (1)		Total

Revenues	$	99,224	$	74,393	$	81,595	$	112,666	$	(40,988)	$	326,890
Operating costs and expenses	56,617		62,978		54,305		78,010		117		252,027
Depreciation and amortization	11,975		8,104		2,279		8,957		10,446		41,761
Non-operating income (expenses)	480		(1,495)		308		598		810		701
EBITDA	55,062		18,024		29,877		44,211		(29,849)		117,325
Compensation and benefits (2)	1,370		1,651		1,392		1,530		8,603		14,546
Transaction, refinancing and other fees (3)	580		253		—		—		4,379		5,212
Loss (gain) on foreign currency remeasurement (4)	46		4,487		—		—		(2)		4,531
Adjusted EBITDA	$	57,058	$	24,415	$	31,269	$	45,741	$	(16,869)	$	141,614

(1)Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $26.4 million processing fee from Payments Services - Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction-processing of $8.4 million from Latin America Payments and Solutions to both Payment Services - Puerto Rico & Caribbean and Business Solutions, and transaction-processing and monitoring fees of $6.2 million from Payment Services - Puerto Rico & Caribbean to Latin America Payments and Solutions.

(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.

(4)Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies

Reconciliation of EBITDA to consolidated net income

The reconciliation of consolidated net income to EBITDA is as follows:


	Three months ended June 30,				Six months ended June 30,
(In thousands)	2024		2023		2024		2023
Net Income	$	32,523	$	28,050	$	48,910	$	58,113
Add:
Income tax expense	1,101		6,586		1,393		9,404
Interest expense, net	15,491		3,537		32,070		8,047
Depreciation and amortization	32,950		22,329		67,391		41,761
Total EBITDA	$	82,065	$	60,502	$	149,764	$	117,325

Supplemental Statement of Cash Flows Information (Tables)

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of supplemental cash flow information

Supplemental statement of cash flows information is as follows:


	Six months ended June 30,
(In thousands)	2024	2023
Supplemental disclosure of cash flow information:
Cash paid for interest	18,264	11,056
Cash paid for income taxes	10,506	21,226
Supplemental disclosure of non-cash activities:
Payable due to vendor related to equipment and software acquired	2,856	2,930

Right-of-use assets obtained in exchange for operating lease liabilities	2,693	—
Non-cash investing activities
Trade-in of equipment	2,193	—

Reconciliation of cash, cash equivalents, restricted cash and cash included in settlement assets as presented on the cash flow statement was as follows:


	June 30,
(In thousands)	2024	2023

Cash and cash equivalents	257,699	191,620
Restricted cash	24,434	$	19,485
Cash and cash equivalents included in settlement assets	46,754	17,542
Cash, cash equivalents, restricted cash and cash included in settlement assets	328,887	228,647

The Company and Basis of Presentation - Additional Information (Details)	Jun. 30, 2024 country
Accounting Policies [Abstract]
Number of countries where services are provided	26

The Company and Basis of Presentation - Schedule of Effects (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Accrued liabilities and accounts payable	$ 3,101	$ 16,392
Net cash provided by operating activities	131,340	120,651
Cash flows from financing activities
Settlement activity, net	21,703	5,587
Net cash used in financing activities	$ (85,776)	(53,036)
As Previously Reported
Cash flows from operating activities
Accrued liabilities and accounts payable		21,979
Net cash provided by operating activities		126,238
Cash flows from financing activities
Settlement activity, net		0
Net cash used in financing activities		(58,623)
Adjustment
Cash flows from operating activities
Accrued liabilities and accounts payable		(5,587)
Net cash provided by operating activities		(5,587)
Cash flows from financing activities
Settlement activity, net		5,587
Net cash used in financing activities		$ 5,587

Business Acquisition - Additional Information (Details)	Nov. 01, 2023
Sinqia, S.A.
Business Acquisition [Line Items]
Percentage of shares acquired	100.00%

Business Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Nov. 01, 2023
Business Acquisition [Line Items]
Goodwill	$ 741,645	$ 791,700
Sinqia, S.A.
Business Acquisition [Line Items]
Cash and cash equivalents			$ 37,147
Restricted cash			2,166
Accounts receivable, net			9,989
Prepaid expenses and other assets			5,975
Property and equipment, net			3,618
Operating lease right-of-use asset			3,191
Goodwill			341,801
Equity securities, at fair value			9,035
Long-term deferred tax asset			28,758
Other intangible assets, net			289,540
Other long-term assets			5,455
Total assets acquired			736,675
Accounts payable			13,241
Accrued liabilities			40,775
Operating lease liability			4,114
Current portion of long-term debt			11,400
Long-term debt			57,492
Contract liability			7,356
Deferred tax liability			76,150
Other long-term liabilities			15,134
Total liabilities assumed			225,662
Redeemable noncontrolling interests			39,340
Additional paid-in capital			471,673
Total liabilities and equity			$ 736,675

Business Acquisition - Intangible Assets Acquired (Details) - Sinqia, S.A. $ in Thousands	Nov. 01, 2023 USD ($)
Business Acquisition [Line Items]
Amount	$ 289,540
Weighted-average life	14 years
Customer relationships
Business Acquisition [Line Items]
Amount	$ 155,876
Weighted-average life	18 years
Trademark
Business Acquisition [Line Items]
Amount	$ 47,688
Weighted-average life	10 years
Software packages
Business Acquisition [Line Items]
Amount	$ 85,976
Weighted-average life	10 years

Property and Equipment, net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property and Equipment, net
Property and equipment, gross	$ 215,847	$ 205,111
Less - accumulated depreciation and amortization	(151,526)	(144,117)
Depreciable assets, net	64,321	60,994
Land	1,448	1,459
Property and equipment, net	$ 65,769	62,453
Buildings
Property and Equipment, net
Useful life in years	30 years
Property and equipment, gross	$ 2,104	2,193
Data processing equipment
Property and Equipment, net
Property and equipment, gross	$ 198,263	187,761
Data processing equipment \| Minimum
Property and Equipment, net
Useful life in years	3 years
Data processing equipment \| Maximum
Property and Equipment, net
Useful life in years	5 years
Furniture and equipment
Property and Equipment, net
Property and equipment, gross	$ 10,335	10,281
Furniture and equipment \| Minimum
Property and Equipment, net
Useful life in years	3 years
Furniture and equipment \| Maximum
Property and Equipment, net
Useful life in years	20 years
Leasehold improvements
Property and Equipment, net
Property and equipment, gross	$ 5,145	$ 4,876
Leasehold improvements \| Minimum
Property and Equipment, net
Useful life in years	5 years
Leasehold improvements \| Maximum
Property and Equipment, net
Useful life in years	10 years

Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense related to property and equipment	$ 5.4	$ 5.5	$ 11.1	$ 10.5

Goodwill and Other Intangible Assets - Goodwill by Segment (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Changes in the Carrying Amount of Goodwill
Beginning balance	$ 791,700
Adjustment to goodwill from prior year acquisition	(1,352)
Foreign currency translation adjustments	(48,703)
Ending balance	741,645
Payment Services - Puerto Rico & Caribbean
Changes in the Carrying Amount of Goodwill
Beginning balance	160,972
Adjustment to goodwill from prior year acquisition	0
Foreign currency translation adjustments	0
Ending balance	160,972
Latin America Payments and Solutions
Changes in the Carrying Amount of Goodwill
Beginning balance	452,597
Adjustment to goodwill from prior year acquisition	(1,352)
Foreign currency translation adjustments	(48,703)
Ending balance	402,542
Merchant Acquiring, net
Changes in the Carrying Amount of Goodwill
Beginning balance	138,121
Adjustment to goodwill from prior year acquisition	0
Foreign currency translation adjustments	0
Ending balance	138,121
Business Solutions
Changes in the Carrying Amount of Goodwill
Beginning balance	40,010
Adjustment to goodwill from prior year acquisition	0
Foreign currency translation adjustments	0
Ending balance	$ 40,010

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of goodwill			$ 0	$ 0
Amortization expense for intangible assets	$ 27,600,000	$ 14,900,000	$ 56,300,000	$ 31,200,000

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	$ 1,164,967	$ 1,175,120
Accumulated amortization	(713,330)	(657,050)
Net carrying amount	451,637	518,070
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	550,381	568,284
Accumulated amortization	(373,726)	(340,952)
Net carrying amount	$ 176,655	$ 227,332
Customer relationships \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	8 years	8 years
Customer relationships \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	20 years	20 years
Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	$ 88,097	$ 94,203
Accumulated amortization	(46,238)	(41,319)
Net carrying amount	$ 41,859	$ 52,884
Trademarks \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	10 years	1 year
Trademarks \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	15 years	15 years
Software packages
Acquired Finite-Lived Intangible Assets [Line Items]
Gross amount	$ 522,934	$ 510,898
Accumulated amortization	(292,938)	(274,610)
Net carrying amount	$ 229,996	$ 236,288
Software packages \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	3 years	3 years
Software packages \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	10 years	10 years
Non-compete agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	5 years	5 years
Gross amount	$ 3,555	$ 1,735
Accumulated amortization	(428)	(169)
Net carrying amount	$ 3,127	$ 1,566

Goodwill and Other Intangible Assets - Estimated Amortization Expenses (Details) - Finite-Lived Intangible Assets, Excluding Assets Acquired in paySmart Acquisition $ in Thousands	Jun. 30, 2024 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Remaining 2024	$ 54,782
2025	87,631
2026	74,283
2027	61,724
2028	49,983
Thereafter	$ 123,234

Debt and Short-Term Borrowings - Total Debt (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Deferred consideration from Business Combinations	$ 11,505	$ 19,467
Total debt	978,698	997,553
Note Payable
Debt Instrument [Line Items]
Note payable due September 1, 2030	7,325	7,403
Term A due on December 1, 2027 \| Credit Facility
Debt Instrument [Line Items]
2027 Term A Loan and 2030 Term B Loan bearing interest at a variable interest rate (SOFR plus applicable margin)	$ 438,021	$ 449,450
Minimum variable rate floor	0.00%	0.00%
Applicable margin interest rate	2.00%	1.50%
Term B due on October 30, 2030 \| Credit Facility
Debt Instrument [Line Items]
2027 Term A Loan and 2030 Term B Loan bearing interest at a variable interest rate (SOFR plus applicable margin)	$ 521,847	$ 521,233
Minimum variable rate floor	0.50%	0.50%
Applicable margin interest rate	3.25%	3.50%

Debt and Short-Term Borrowings - Additional Information (Details)	1 Months Ended	3 Months Ended			6 Months Ended
	Sep. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) derivative_instrument	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) derivative_instrument	Jun. 30, 2023 USD ($)	Oct. 30, 2023 USD ($)	Dec. 01, 2022 USD ($)
Debt Instrument [Line Items]
Deferred consideration for business combinations		$ 11,500,000	$ 19,500,000		$ 11,500,000
Derivative asset		7,241,000	4,385,000		7,241,000
Derivative liability		0	900,000		0
Gains (losses) reclassified from accumulated other comprehensive (loss) income into earnings		2,400,000		$ 1,400,000	4,100,000	$ 2,400,000
Gains expected to be reclassified from accumulated other comprehensive (loss) income into interest expense in the next 12 months		5,700,000			5,700,000
Level 2 \| Fair Value, Recurring
Debt Instrument [Line Items]
Derivative asset		7,241,000	4,385,000		7,241,000
Derivative liability		0	900,000		0
Level 2 \| Fair Value, Recurring \| Carrying Amount
Debt Instrument [Line Items]
Derivative asset		$ 7,200,000	4,400,000		$ 7,200,000
Derivative liability			900,000
Minimum
Debt Instrument [Line Items]
Deferred consideration for business combinations, interest rate		2.00%			2.00%
Maximum
Debt Instrument [Line Items]
Deferred consideration for business combinations, interest rate		12.00%			12.00%
Interest Rate Swap
Debt Instrument [Line Items]
Number of interest rate swaps \| derivative_instrument		4			4
Financing Agreement 2023
Debt Instrument [Line Items]
Note payable	$ 10,100,000	$ 7,300,000			$ 7,300,000
Note Payable \| Credit Agreement 2022
Debt Instrument [Line Items]
Interest rate	6.90%
Term A due on December 1, 2027 \| Credit Facility \| Credit Agreement 2022
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity								$ 415,000,000
Unpaid principal balance		441,500,000			441,500,000
Term A due on December 1, 2027 \| Credit Facility \| Credit Agreement October 2023
Debt Instrument [Line Items]
Line of credit facility, additional commitments							$ 60,000,000
Revolving Credit Facility \| Credit Facility \| Credit Agreement 2022
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity								$ 200,000,000
Additional borrowing capacity available under the revolving facility		194,000,000			194,000,000
Term B due on October 30, 2030 \| Credit Facility \| Credit Agreement 2022
Debt Instrument [Line Items]
Unpaid principal balance		$ 540,000,000.0			$ 540,000,000.0
Term B due on October 30, 2030 \| Credit Facility \| Credit Agreement October 2023
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity							$ 600,000,000
Line of credit facility, repayments			$ 60,000,000

Debt and Short-Term Borrowings - Summary of Interest Rate Swap Transaction (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
2018 Swap
Derivative [Line Items]
Notional Amount	$ 250,000,000
Fixed Rate	2.929%
2023 Swap
Derivative [Line Items]
Notional Amount	$ 250,000,000
Fixed Rate	3.375%
2024 Swap, 4.182% Fixed Rate
Derivative [Line Items]
Notional Amount	$ 150,000,000
Fixed Rate	4.182%
2024 Swap, 4.172% Fixed Rate
Derivative [Line Items]
Notional Amount	$ 150,000,000
Fixed Rate	4.172%

Financial Instruments and Fair Value Measurements - Fair Value Measurements for Assets and Liabilities at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financial assets:
Debt securities AFS	$ 1,725	$ 2,095
Equity securities	4,960	9,413
Interest rate swaps	7,241	4,385
Financial liabilities:
Interest rate swaps	0	900
Fair Value, Recurring \| Level 2
Financial assets:
Interest rate swaps	7,241	4,385
Financial liabilities:
Interest rate swaps	0	900
Fair Value, Recurring \| Level 2 \| Sinqia, S.A.
Financial assets:
Equity securities	0	6,447
Fair Value, Recurring \| Level 2 \| Debt securities AFS
Financial assets:
Debt securities AFS	1,725	2,095
Fair Value, Recurring \| Level 3
Financial assets:
Interest rate swaps	0	0
Financial liabilities:
Interest rate swaps	0	0
Fair Value, Recurring \| Level 3 \| Sinqia, S.A.
Financial assets:
Equity securities	0	2,966
Fair Value, Recurring \| Level 3 \| Debt securities AFS
Financial assets:
Debt securities AFS	0	$ 0
Fair Value, Recurring \| Measured at NAV \| Sinqia, S.A.
Financial assets:
Equity securities	$ 4,960

Financial Instruments and Fair Value Measurements - Additional Information (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Purchase of available-for sale debt securities	$ 0	$ 0
Proceeds from sale of available-for-sale debt securities	0	0
Proceeds from maturities of available-for-sale debt securities	370,000	0
Equity securities, realized gain	2,599,000	$ 0
Equity securities, at fair value	4,960,000		$ 9,413,000
Level 3 \| Sinqia, S.A. \| Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities, sold	5,500,000
Equity securities, realized gain	2,500,000
Equity securities, at fair value	$ 0		$ 2,966,000
Level 3 \| Sinqia, S.A. \| Measurement Input, Revenue Multiple \| Valuation, Enterprise Value \| Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities, measurement input	0.4
Level 3 \| Sinqia, S.A. \| Measurement Input, Revenue Multiple \| Valuation, Enterprise Value \| Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities, measurement input	8.3

Financial Instruments and Fair Value Measurements - Reconciliation of Level 3 Assets (Details) - Equity Securities $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at December 31, 2023	$ 2,966
Disposition of equity securities	(5,487)
Change in fair value of equity securities, recognized through Other income, net	2,521
Balance at June 30, 2024	$ 0

Financial Instruments and Fair Value Measurements - Carrying Value and Estimated Fair Values (Details) - Credit Facility - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Carrying Amount \| Term A due on December 1, 2027
Financial liabilities:
Loan Facility	$ 438,021	$ 449,450
Carrying Amount \| Term B due on October 30, 2030
Financial liabilities:
Loan Facility	521,847	521,240
Fair Value \| Term A due on December 1, 2027
Financial liabilities:
Loan Facility	443,745	452,337
Fair Value \| Term B due on October 30, 2030
Financial liabilities:
Loan Facility	$ 542,700	$ 539,325

Redeemable Noncontrolling Interests - Summary of Terms (Details)	Jun. 30, 2024 BRL (R$)
Homie Do Brasil Informatica
Redeemable Noncontrolling Interest [Line Items]
Percentage of redeemable noncontrolling interest	40.00%
Rosk Software S.A.
Redeemable Noncontrolling Interest [Line Items]
Percentage of redeemable noncontrolling interest	49.00%
Compliasset Software e Solucoes Digitais LTDA.
Redeemable Noncontrolling Interest [Line Items]
Percentage of redeemable noncontrolling interest	40.00%
Lote45 Participacoes S.A.
Redeemable Noncontrolling Interest [Line Items]
Percentage of redeemable noncontrolling interest	48.00%
Redeemable noncontrolling interest, redemption value criteria, value subtracted from formula	R$ 10,000,000.0

Redeemable Noncontrolling Interests - Changes in Redeemable Noncontrolling Interests (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Redeemable Noncontrolling Interest [Roll Forward]
Beginning Balance	$ 36,968
Net income attributable non-controlling interests	1,213
Adjustment of redeemable non-controlling interests to redemption value	(14)
Distributions from redeemable non-controlling interests	(294)
Foreign currency translation adjustments	582
Ending Balance	$ 38,455

Equity - Changes in Accumulated Other Comprehensive (Loss) Income (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Changes in Accumulated Other Comprehensive Income (Loss)
Beginning balance	$ 598,408
Other comprehensive (loss) income before reclassifications	(83,308)
Effective portion reclassified to net income	(4,140)
Ending balance	487,075
Foreign Currency Translation Adjustments
Changes in Accumulated Other Comprehensive Income (Loss)
Beginning balance	14,847
Other comprehensive (loss) income before reclassifications	(90,827)
Effective portion reclassified to net income	0
Ending balance	(75,980)
Cash Flow Hedges
Changes in Accumulated Other Comprehensive Income (Loss)
Beginning balance	3,336
Other comprehensive (loss) income before reclassifications	7,522
Effective portion reclassified to net income	(4,140)
Ending balance	6,718
Unrealized Gains (Losses) on Debt Securities AFS
Changes in Accumulated Other Comprehensive Income (Loss)
Beginning balance	26
Other comprehensive (loss) income before reclassifications	(3)
Effective portion reclassified to net income	0
Ending balance	23
Total
Changes in Accumulated Other Comprehensive Income (Loss)
Beginning balance	18,209
Ending balance	$ (69,239)

Equity - Additional Information (Details) - USD ($)		1 Months Ended	3 Months Ended			6 Months Ended
Equity - Additional Information (Details) - USD ($)	Mar. 08, 2024	Mar. 31, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 06, 2024	Dec. 31, 2023
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount								$ 70,000,000
Common stock par value (in usd per share)						$ 0.01		$ 0.01	$ 0.01
Payment repurchase of common stock	$ 70,000,000					$ 70,000,000	$ 15,790,000
Common Stock
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock (in shares)	1,500,000	1,516,793	1,516,793	268,398	187,976

Share-based Compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expenses	$ 7.7	$ 6.5	$ 15.0	$ 12.1
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum unrecognized cost for stocks and RSU's	$ 54.9		$ 54.9
Unrecognized compensation cost, weighted average period of recognition (in years)			2 years 3 months 18 days
Time Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years		3 years	3 years
Awards with Performance Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
Performance adjustment percent			25.00%
Performance measurement period (in years)			1 year
Requisite service period (in years)			2 years
Awards with Performance Conditions \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance payout percent			0.00%
Awards with Performance Conditions \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance payout percent			200.00%

Share-based Compensation - Nonvested Restricted Shares and RSUs Activity (Details) - Restricted Stock Units (RSUs)	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Shares
Beginning balance (in shares) \| shares	1,799,012
Granted (in shares) \| shares	1,146,952
Vested (in shares) \| shares	(778,201)
Forfeited (in shares) \| shares	(63,493)
Ending balance (in shares) \| shares	2,104,270
Weighted-average grant date fair value
Beginning balance (in usd per share) \| $ / shares	$ 39.42
Granted (in usd per share) \| $ / shares	36.81
Vested (in usd per share) \| $ / shares	36.83
Forfeited (in usd per share) \| $ / shares	38.16
Ending balance (in usd per share) \| $ / shares	$ 38.56

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 211,978	$ 167,076	$ 417,296	$ 326,890
Products and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	2,727	2,694	5,791	5,148
Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	209,251	164,382	411,505	321,742
Payment Services - Puerto Rico & Caribbean
Disaggregation of Revenue [Line Items]
Revenues	34,813	34,108	68,757	66,587
Payment Services - Puerto Rico & Caribbean \| Products and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	78	125	110	238
Payment Services - Puerto Rico & Caribbean \| Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	34,735	33,983	68,647	66,349
Latin America Payments and Solutions
Disaggregation of Revenue [Line Items]
Revenues	69,510	34,749	139,657	66,042
Latin America Payments and Solutions \| Products and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	996	639	1,553	1,253
Latin America Payments and Solutions \| Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	68,514	34,110	138,104	64,789
Merchant Acquiring, net
Disaggregation of Revenue [Line Items]
Revenues	45,319	41,248	88,418	81,595
Merchant Acquiring, net \| Products and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Merchant Acquiring, net \| Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	45,319	41,248	88,418	81,595
Business Solutions
Disaggregation of Revenue [Line Items]
Revenues	62,336	56,971	120,464	112,666
Business Solutions \| Products and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	1,653	1,930	4,128	3,657
Business Solutions \| Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	$ 60,683	$ 55,041	$ 116,336	$ 109,009

Revenues - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Product Information [Line Items]
Accounts receivable, net	$ 122,278		$ 122,278		$ 126,510
Contract liability	18,894		18,894		21,055
Contract liability - long term	54,136		54,136		$ 41,825
Revenue recognized that was included in unearned income	7,200	$ 4,300	15,000	$ 8,700
Popular
Product Information [Line Items]
Accounts receivable, net	$ 37,000	$ 34,700	$ 37,000	$ 34,700
Total Revenue \| Customer Concentration Risk \| Popular
Product Information [Line Items]
Total percentage of revenues from Popular	32.00%	37.00%	31.00%	37.00%

Revenues - Additional Information, Performance Obligation (Details) $ in Millions	Jun. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Transaction price allocated to performance obligations that are unsatisfied or partially satisfied	$ 860.7
Professional Services, All Other Contracts \| Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period of expected timing of satisfaction (in years)	1 year
Professional Services, All Other Contracts \| Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period of expected timing of satisfaction (in years)	6 years

Revenues - Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Revenue, Contract Balances [Roll Forward]
Balance at beginning of period	$ 13,917	$ 4,749
Services transferred to customers	15,000	28,165
Transfers to accounts receivable	(16,510)	(18,997)
Balance at end of period	$ 12,407	$ 13,917

Current Expected Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 4,010	$ 2,159
Current period provision for expected credit losses	851	2,218
Write-offs	(1,412)	(384)
Recoveries of amounts previously written-off	1	17
Balance at end of period	$ 3,450	$ 4,010

Income Tax - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Current tax provision	$ 8,705	$ 7,845	$ 14,717	$ 12,871
Deferred tax benefit	(7,604)	(1,259)	(13,324)	(3,467)
Income tax expense	$ 1,101	$ 6,586	$ 1,393	$ 9,404

Income Tax - Tax Expense Based on Location (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Current tax provision
Puerto Rico	$ 1,724	$ 2,595	$ 2,330	$ 3,775
United States	39	47	129	58
Foreign countries	6,942	5,203	12,258	9,038
Total current tax provision	8,705	7,845	14,717	12,871
Deferred tax benefit
Puerto Rico	(3,666)	(189)	(7,325)	(424)
United States	11	29	2	3
Foreign countries	(3,949)	(1,099)	(6,001)	(3,046)
Total deferred tax benefit	$ (7,604)	$ (1,259)	$ (13,324)	$ (3,467)

Income Tax - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Unremitted earnings from foreign subsidiaries	$ 148.4	$ 137.0
Gross deferred tax asset	68.6	65.4
Gross deferred tax liability	85.8	100.9
Gross deferred tax asset, valuation allowance	5.1	$ 4.6
Possible decrease in uncertain tax positions	$ 2.7

Income Tax - Income Tax Expense Differs from Computed Income Tax at Statutory Rates (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Computed income tax at statutory rates			$ 18,864	$ 25,319
Differences in tax rates due to multiple jurisdictions			2,806	2,350
Effect of income subject to tax-exemption grant			(20,095)	(16,219)
Unrecognized tax expense			(1,192)	69
Excess tax benefits on share-based compensation			(511)	(23)
Tax credits for research and development activities			0	(884)
Other, net			1,521	(1,208)
Income tax expense	$ 1,101	$ 6,586	$ 1,393	$ 9,404

Net Income Per Common Share - Reconciliation of Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net income available to EVERTEC, Inc.’s common shareholders	$ 31,901	$ 28,155	$ 47,880	$ 58,207
Weighted average common shares outstanding (in shares)	64,420,756	65,046,328	64,800,361	65,007,528
Weighted average potential dilutive common shares (in shares)	729,988	463,763	899,024	563,925
Weighted average common shares outstanding - assuming dilution (in shares)	65,150,744	65,510,091	65,699,385	65,571,453
Net income per common share - basic (in usd per share)	$ 0.50	$ 0.43	$ 0.74	$ 0.90
Net income per common share - diluted (in usd per share)	$ 0.49	$ 0.43	$ 0.73	$ 0.89
Share awards excluded from the diluted earnings (loss) per share calculation because they would have an anti-dilutive effect (in shares)	400,000	400,000	400,000	400,000

Net Income Per Common Share - Additional Information (Details) - $ / shares			3 Months Ended
	Apr. 18, 2024	Feb. 15, 2024	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Earnings Per Share [Abstract]
Cash dividends on common stock (in usd per share)	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.05

Segment Information - Additional Information (Details)	6 Months Ended
Segment Information - Additional Information (Details)	Jun. 30, 2024 segment
Segment Reporting [Abstract]
Number of operating segments	4

Segment Information - Operations by Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting Information [Line Items]
Revenues	$ 211,978	$ 167,076	$ 417,296	$ 326,890
Operating costs and expenses	168,618	132,303	341,133	252,027
Depreciation and amortization	32,950	22,329	67,391	41,761
Non-operating income	5,755	3,400	6,210	701
EBITDA	82,065	60,502	149,764	117,325
Compensation and benefits	7,601	8,701	15,591	14,546
Transaction, refinancing and other	(1,210)	5,609	(3,178)	5,212
Loss (gain) on foreign currency remeasurement	(2,404)	(333)	2,052	4,531
Adjusted EBITDA	86,052	74,479	164,229	141,614
Payment Services - Puerto Rico & Caribbean
Segment Reporting Information [Line Items]
Revenues	34,813	34,108	68,757	66,587
Latin America Payments and Solutions
Segment Reporting Information [Line Items]
Revenues	69,510	34,749	139,657	66,042
Merchant Acquiring, net
Segment Reporting Information [Line Items]
Revenues	45,319	41,248	88,418	81,595
Business Solutions
Segment Reporting Information [Line Items]
Revenues	62,336	56,971	120,464	112,666
Operating Segments \| Payment Services - Puerto Rico & Caribbean
Segment Reporting Information [Line Items]
Revenues	54,199	50,795	107,230	99,224
Operating costs and expenses	31,733	28,895	62,685	56,617
Depreciation and amortization	7,496	6,087	14,758	11,975
Non-operating income	134	115	282	480
EBITDA	30,096	28,102	59,585	55,062
Compensation and benefits	771	842	1,469	1,370
Transaction, refinancing and other	456	288	723	580
Loss (gain) on foreign currency remeasurement	35	(49)	(67)	46
Adjusted EBITDA	31,358	29,183	61,710	57,058
Operating Segments \| Latin America Payments and Solutions
Segment Reporting Information [Line Items]
Revenues	74,669	39,076	148,885	74,393
Operating costs and expenses	74,353	33,666	150,384	62,978
Depreciation and amortization	15,051	5,393	31,308	8,104
Non-operating income	5,274	2,290	4,109	(1,495)
EBITDA	20,641	13,093	33,918	18,024
Compensation and benefits	1,654	999	3,152	1,651
Transaction, refinancing and other	(2,359)	253	(5,388)	253
Loss (gain) on foreign currency remeasurement	(2,436)	(285)	2,115	4,487
Adjusted EBITDA	17,500	14,060	33,797	24,415
Operating Segments \| Merchant Acquiring, net
Segment Reporting Information [Line Items]
Revenues	45,319	41,248	88,418	81,595
Operating costs and expenses	29,481	27,616	58,300	54,305
Depreciation and amortization	1,409	1,150	2,642	2,279
Non-operating income	0	1	0	308
EBITDA	17,247	14,783	32,760	29,877
Compensation and benefits	787	860	1,494	1,392
Transaction, refinancing and other	214	0	214	0
Loss (gain) on foreign currency remeasurement	0	0	0	0
Adjusted EBITDA	18,248	15,643	34,468	31,269
Operating Segments \| Business Solutions
Segment Reporting Information [Line Items]
Revenues	62,336	56,971	120,464	112,666
Operating costs and expenses	37,663	39,097	78,114	78,010
Depreciation and amortization	3,750	4,469	8,188	8,957
Non-operating income	151	66	290	598
EBITDA	28,574	22,409	50,828	44,211
Compensation and benefits	906	965	1,691	1,530
Transaction, refinancing and other	289	0	289	0
Loss (gain) on foreign currency remeasurement	0	0	0	0
Adjusted EBITDA	29,769	23,374	52,808	45,741
Corporate and Other
Segment Reporting Information [Line Items]
Revenues	(24,545)	(21,014)	(47,701)	(40,988)
Operating costs and expenses	(4,612)	3,029	(8,350)	117
Depreciation and amortization	5,244	5,230	10,495	10,446
Non-operating income	196	928	1,529	810
EBITDA	(14,493)	(17,885)	(27,327)	(29,849)
Compensation and benefits	3,483	5,035	7,785	8,603
Transaction, refinancing and other	190	5,068	984	4,379
Loss (gain) on foreign currency remeasurement	(3)	1	4	(2)
Adjusted EBITDA	(10,823)	(7,781)	(18,554)	(16,869)
Payment Processing \| Corporate and Other
Segment Reporting Information [Line Items]
Revenues	14,200	13,400	28,800	26,400
Software Sale and Developments \| Corporate and Other
Segment Reporting Information [Line Items]
Revenues	5,200	4,400	9,200	8,400
Transaction Processing and Monitoring Fees \| Corporate and Other
Segment Reporting Information [Line Items]
Revenues	$ 5,200	$ 3,300	$ 9,700	$ 6,200

Segment Information - Income from Segments to Consolidated Net Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting [Abstract]
Net income	$ 32,523	$ 28,050	$ 48,910	$ 58,113
Add:
Income tax expense	1,101	6,586	1,393	9,404
Interest expense, net	15,491	3,537	32,070	8,047
Depreciation and amortization	32,950	22,329	67,391	41,761
Total EBITDA	$ 82,065	$ 60,502	$ 149,764	$ 117,325

Supplemental Statement of Cash Flows Information - Supplemental Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 18,264	$ 11,056
Cash paid for income taxes	10,506	21,226
Supplemental disclosure of non-cash activities:
Payable due to vendor related to equipment and software acquired	2,856	2,930
Right-of-use assets obtained in exchange for operating lease liabilities	2,693	0
Non-cash investing activities
Trade-in of equipment	$ 2,193	$ 0

Supplemental Statement of Cash Flows Information - Restricted Cash, and Cash Equivalents Reconciliation (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 257,699	$ 295,600	$ 191,620
Restricted cash	24,434	$ 23,073	19,485
Cash and cash equivalents included in settlement assets	46,754		17,542
Cash, cash equivalents, restricted cash and cash included in settlement assets	$ 328,887		$ 228,647

Subsequent Events (Details) - $ / shares						1 Months Ended	3 Months Ended
Subsequent Events (Details) - $ / shares	Jul. 18, 2024	Jul. 09, 2024	Apr. 18, 2024	Mar. 08, 2024	Feb. 15, 2024	Mar. 31, 2024	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Subsequent Event [Line Items]
Cash dividends on common stock (in usd per share)			$ 0.05		$ 0.05		$ 0.05	$ 0.05	$ 0.05	$ 0.05
Common Stock
Subsequent Event [Line Items]
Repurchase of common stock (in shares)				1,500,000		1,516,793		1,516,793	268,398	187,976
Subsequent Event
Subsequent Event [Line Items]
Cash dividends on common stock (in usd per share)	$ 0.05
Subsequent Event \| Common Stock
Subsequent Event [Line Items]
Repurchase of common stock (in shares)		467,362

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