Evertec's second quarter of 2026 is the financial statement of a payments company in the middle of a transformation, and the two halves of the story point in opposite directions. Total revenue rose 20 percent to $274.8 million from $229.6 million a year earlier, driven by organic growth across most segments, contributions from the Dimensa and Tecnobank acquisitions, and favorable foreign currency movement of $9.1 million, primarily in Brazil. But the income statement below the revenue line told a harder story: selling, general and administrative expense jumped 63 percent, in part on costs related to cybersecurity incident response and remediation, depreciation and amortization rose 41 percent on acquisition intangibles, operating income fell 5 percent to $53.3 million, an $8.9 million impairment on an equity investment and acquisition financing costs pushed non-operating expenses up 136 percent, and a 74.7 percent effective tax rate on discrete items crushed the bottom line. Working from the filing's own pretax income of approximately $27.2 million and its tax expense of $20.3 million, net income landed near $6.9 million against roughly $41.0 million a year earlier. The stock trades at $29.56, within a 52-week range of $21.81 to $36.52, with a market capitalization of roughly $1.8 billion, an average daily volume of about 561,000 shares, a trailing price-to-earnings ratio of 19.4x, and a dividend yield of 0.67 percent.
The revenue story is genuinely good, and the investor should not let the bottom line obscure it. Merchant acquiring revenue benefited from higher sales volume, higher non-transactional revenue, and an improved spread. Payments Puerto Rico revenue grew on higher point-of-sale transactions and growth in ATH Movil, the company's mobile payments platform, primarily in its business offering. Latin America revenue grew on both the acquisitions and continued organic expansion across the region. Business Solutions was the one contracting segment, and the filing names the cause: the 10 percent discount to Popular, the company's largest customer, that took effect in the fourth quarter of 2025. Popular accounted for approximately 25 percent of first-half revenue, and the repricing of that relationship is the single most important structural fact in the filing, because it trades near-term margin for the retention of the anchor customer. The honest read is that the top line is compounding on volume, acquisitions, and currency, and the Business Solutions contraction is a known, quantified, and already-priced event.
The investment question is whether the market will look through a quarter where the headline earnings were destroyed by items the company itself identifies as discrete, and the price suggests the market is trying. The trailing price-to-earnings ratio of 19.4x reflects depressed earnings, and the forward multiple that data providers compute at roughly 6.8x should be treated with caution because it extrapolates from a distorted base. The cleaner way to read Evertec is as a payments network with a growing Latin American software arm, a stable Puerto Rican franchise, and a balance sheet that just took on debt to finance Dimensa and Tecnobank. The cybersecurity incident adds a real and unquantified cost line, the Popular repricing adds a real and quantified revenue drag, and the acquisitions add real and unproven integration risk. At $29.56, about 19 percent below the 52-week high, the stock is pricing some of that. The honest verdict is that this is a transition quarter, and the forward case rests on whether the acquired software businesses grow fast enough to offset the Popular discount while the incident costs fade.