Gross margins contracted sharply to 37.3% in 2026Q1, deviating significantly from the 50% historical average observed throughout 2024 and 2025.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 950.95M | 931.82M | 845.49M | 694.71M | 618.41M | 589.8M | 510.59M | 487.37M | 453.87M | 407.14M | 389.51M | 372.88M | 361.13M | 357.24M | 341.68M | 321.12M |
| Revenue Growth % | 9.44% | 10.21% | 21.7% | 12.34% | 4.85% | 15.51% | 4.76% | 7.38% | 11.48% | 4.53% | 4.46% | 3.26% | 1.09% | 4.55% | 6.4% | - |
| Cost of Goods Sold | 510.03M | 469.13M | 406.42M | 336.76M | 292.62M | 250.16M | 226.87M | 213.38M | 196.96M | 200.65M | 175.81M | 167.92M | 157.54M | 162.98M | 159.67M | 155.38M |
| COGS % of Revenue | - | 50.35% | 48.07% | 48.47% | 47.32% | 42.42% | 44.43% | 43.78% | 43.4% | 49.28% | 45.14% | 45.03% | 43.62% | 45.62% | 46.73% | 48.39% |
| Gross Profit | 440.92M | 462.69M | 439.07M | 357.95M | 325.79M | 339.63M | 283.72M | 274M | 256.91M | 206.49M | 213.7M | 205.61M | 204.25M | 195.42M | 182.82M | 165.75M |
| Gross Margin % | 46.37% | 49.65% | 51.93% | 51.53% | 52.68% | 57.58% | 55.57% | 56.22% | 56.6% | 50.72% | 54.86% | 55.14% | 56.56% | 54.7% | 53.51% | 51.61% |
| Gross Profit Growth % | - | 5.38% | 22.66% | 9.87% | -4.08% | 19.71% | 3.55% | 6.65% | 24.42% | -3.37% | 3.93% | 0.67% | 4.52% | 6.89% | 10.3% | - |
| Operating Expenses | 259.41M | 276.25M | 273.4M | 221.79M | 168.39M | 143.12M | 142.33M | 129.49M | 131.78M | 120.41M | 106.55M | 102.25M | 107.26M | 109.18M | 103.18M | 103.23M |
| OpEx % of Revenue | - | 29.65% | 32.34% | 31.93% | 27.23% | 24.27% | 27.87% | 26.57% | 29.04% | 29.57% | 27.36% | 27.42% | 29.7% | 30.56% | 30.2% | 32.15% |
| Selling, General & Admin | 165.8M | 154.16M | 145.56M | 128.17M | 89.77M | 68.05M | 70.81M | 61.41M | 68.72M | 56.16M | 46.99M | 37.28M | 41.28M | 38.81M | 31.69M | 33.34M |
| SG&A % of Revenue | - | 16.54% | 17.22% | 18.45% | 14.52% | 11.54% | 13.87% | 12.6% | 15.14% | 13.79% | 12.06% | 10% | 11.43% | 10.86% | 9.27% | 10.38% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 122.09M | 127.85M | 93.62M | 78.62M | 75.07M | 71.52M | 68.08M | 63.07M | 64.25M | 59.57M | 64.97M | 65.99M | 70.37M | 71.49M | 69.89M |
| Operating Income | 181.51M | 186.44M | 165.67M | 136.16M | 157.4M | 196.51M | 141.39M | 144.5M | 125.13M | 86.08M | 107.14M | 102.78M | 97.35M | 85.76M | 79.65M | 62.52M |
| Operating Margin % | 19.09% | 20.01% | 19.59% | 19.6% | 25.45% | 33.32% | 27.69% | 29.65% | 27.57% | 21.14% | 27.51% | 27.56% | 26.96% | 24.01% | 23.31% | 19.47% |
| Operating Income Growth % | - | 12.54% | 21.67% | -13.49% | -19.9% | 38.99% | -2.15% | 15.48% | 45.36% | -19.66% | 4.25% | 5.57% | 13.51% | 7.68% | 27.4% | - |
| EBITDA | 315.66M | 308.53M | 293.51M | 229.78M | 236.02M | 271.58M | 212.91M | 212.58M | 188.19M | 150.33M | 166.71M | 167.75M | 163.34M | 156.13M | 151.14M | 132.41M |
| EBITDA Margin % | 33.19% | 33.11% | 34.72% | 33.08% | 38.17% | 46.05% | 41.7% | 43.62% | 41.46% | 36.92% | 42.8% | 44.99% | 45.23% | 43.7% | 44.23% | 41.23% |
| EBITDA Growth % | 2.58% | 5.12% | 27.74% | -2.64% | -13.1% | 27.56% | 0.15% | 12.96% | 25.19% | -9.82% | -0.62% | 2.7% | 4.62% | 3.3% | 14.15% | - |
| D&A (Non-Cash Add-back) | 134.15M | 122.09M | 127.85M | 93.62M | 78.62M | 75.07M | 71.52M | 68.08M | 63.07M | 64.25M | 59.57M | 64.97M | 65.99M | 70.37M | 71.49M | 69.89M |
| EBIT | 213.01M | 222.65M | 194.36M | 117.67M | 292.62M | 204.51M | 148.93M | 145.49M | 129.21M | 90.06M | 108.01M | 106.31M | 100.83M | 11.73M | 72.04M | 45.94M |
| Net Interest Income | -53M | -53.24M | -61.4M | -23.81M | -21.65M | -20.92M | -23.57M | -27.59M | -29.26M | -29.14M | -24.24M | -23.77M | -25.44M | -37.18M | -54.01M | -50.16M |
| Interest Income | 15.64M | 15.04M | 13.33M | 8.51M | 3.12M | 1.89M | 1.5M | 1.22M | 787K | 716K | 377K | 495K | 328K | 236K | 320K | 797K |
| Interest Expense | 68.65M | 68.28M | 74.73M | 32.32M | 24.77M | 22.81M | 25.07M | 28.81M | 30.04M | 29.86M | 24.62M | 24.27M | 25.77M | 37.42M | 54.33M | 50.96M |
| Other Income/Expense | -35.38M | -32.06M | -46.04M | -50.81M | 110.45M | -14.81M | -17.54M | -27.83M | -25.96M | -25.88M | -23.75M | -21.32M | -21.93M | -112.37M | -61.94M | -67.53M |
| Pretax Income | 146.13M | 154.38M | 119.63M | 85.35M | 267.85M | 181.71M | 123.85M | 116.67M | 99.17M | 60.2M | 83.4M | 81.46M | 75.11M | -26.61M | 17.71M | -5.01M |
| Pretax Margin % | 15.37% | 16.57% | 14.15% | 12.29% | 43.31% | 30.81% | 24.26% | 23.94% | 21.85% | 14.79% | 21.41% | 21.85% | 20.8% | -7.45% | 5.18% | -1.56% |
| Income Tax | 9.91M | 9.81M | 4.85M | 5.48M | 28.98M | 20.56M | 19M | 12.97M | 12.6M | 4.78M | 8.27M | 6.86M | 7.58M | -1.99M | -59.66M | -29.23M |
| Effective Tax Rate % | 6.78% | 6.36% | 4.05% | 6.42% | 10.82% | 11.32% | 15.34% | 11.12% | 12.7% | 7.94% | 9.92% | 8.42% | 10.09% | 7.48% | -336.9% | 583.02% |
| Net Income | 132.64M | 141.59M | 112.62M | 79.72M | 239.01M | 161.13M | 104.44M | 103.47M | 86.27M | 55.05M | 75.04M | 74.6M | 67.53M | -24.62M | 77.37M | 24.21M |
| Net Margin % | 13.95% | 15.2% | 13.32% | 11.48% | 38.65% | 27.32% | 20.45% | 21.23% | 19.01% | 13.52% | 19.26% | 20.01% | 18.7% | -6.89% | 22.64% | 7.54% |
| Net Income Growth % | 2.55% | 25.72% | 41.27% | -66.64% | 48.33% | 54.29% | 0.93% | 19.94% | 56.7% | -26.63% | 0.58% | 10.47% | 374.29% | -131.82% | 219.51% | - |
| Net Income (Continuing) | 136.22M | 144.56M | 114.78M | 79.88M | 238.87M | 161.14M | 104.85M | 103.7M | 86.57M | 55.42M | 75.13M | 85.38M | 66.16M | -25.56M | 77.37M | 24.21M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 97.52M | 92.39M | 46.74M | 41.08M | 3.24M | 4.06M | 4.69M | 4.44M | 4.15M | 3.86M | 3.5M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.12 | 2.20 | 1.73 | 1.21 | 3.45 | 2.21 | 1.43 | 1.41 | 1.16 | 0.76 | 1.01 | 0.97 | 0.84 | -0.31 | 0.94 | 0.29 |
| EPS Growth % | 4.02% | 27.17% | 42.98% | -64.93% | 56.11% | 54.55% | 1.42% | 21.55% | 52.63% | -24.75% | 4.12% | 15.48% | 370.97% | -132.98% | 224.14% | - |
| EPS (Basic) | - | 2.22 | 1.75 | 1.23 | 3.48 | 2.24 | 1.45 | 1.44 | 1.19 | 0.76 | 1.01 | 0.97 | 0.84 | -0.31 | 0.98 | 0.31 |
| Diluted Shares Outstanding | 62.58M | 64.42M | 65.08M | 65.81M | 69.31M | 72.87M | 73.05M | 73.48M | 74.42M | 72.87M | 74.47M | 77.18M | 78.89M | 78.91M | 82.3M | 82.3M |
| Basic Shares Outstanding | 61.8M | 63.7M | 64.29M | 64.93M | 68.7M | 72.05M | 71.94M | 72.1M | 72.61M | 72.48M | 74.13M | 77.07M | 78.34M | 78.91M | 79.1M | 79.1M |
| Dividend Payout Ratio | - | 9.03% | 11.43% | 16.34% | 5.76% | 8.94% | 13.77% | 13.94% | 8.43% | 39.53% | 39.58% | 41.45% | 46.44% | - | 413.57% | - |
Geographic concentration and integration
According to the provided quarterly financial data, EVTC's year-over-year revenue growth has decelerated from a peak of 28.5% in 2024Q1 to 8.4% by 2026Q1, suggesting that the initial tailwinds from recent acquisitions and market expansion are beginning to normalize across the core business segments.
The transition from double-digit growth to mid-single digits indicates that the company's reliance on the Puerto Rican market may be hitting a saturation point. Investors should monitor whether the Latin American software initiatives can offset this deceleration or if the core transactional business remains the primary growth constraint.
As reported in the income statement history, EVTC experienced a significant contraction in gross margin to 37.3% in 2026Q1, a sharp departure from the historical average of approximately 50% observed throughout 2024 and 2025, signaling potential cost pressures or unfavorable shifts in revenue mix.
This margin compression suggests that the company's high-fixed-cost infrastructure may be struggling to absorb rising operational expenses or that lower-margin software services are becoming a larger portion of the revenue base. Further investigation is required to determine if this is a temporary seasonal anomaly or a structural shift in profitability.
Based on the reported figures, operating income fell to $44.6M in 2026Q1 while SG&A expenses remained elevated at $47.8M, indicating that the company is currently failing to achieve the operating leverage typically expected from a scaled payment processing and infrastructure provider in this sector.
The inability to scale operating income faster than revenue suggests that management is currently facing difficulty in managing the cost structure following recent M&A activity. This trend implies that the company's profitability is becoming increasingly sensitive to SG&A efficiency, which warrants close monitoring in subsequent quarters.
Financial statements reveal that stock-based compensation remains a consistent expense, averaging approximately $7.4M per quarter, which continues to exert downward pressure on net income and dilutes the quality of earnings reported to shareholders during periods of stagnant top-line growth.
The persistent nature of these non-cash charges suggests that management's compensation structure is heavily reliant on equity, which may mask the true cash-generating capability of the underlying business. Investors should distinguish between GAAP net income and the actual cash flow available for debt service or capital allocation.
Quick answers to the most common questions about buying EVTC stock.
For fiscal year 2025, EVERTEC, Inc. (EVTC) reported total revenue of $931.8M. This represents a 190.2% increase compared to $321.1M in 2011.
EVERTEC, Inc. (EVTC) is profitable, generating $141.6M in net income for the fiscal year ending 2025 with a net profit margin of 15.2%.
EVERTEC, Inc. (EVTC) reported an operating income of $186.4M, resulting in an operating profit margin of 20.0%. This margin reflects the operational efficiency of the business before interest and taxes.
EVERTEC, Inc. (EVTC) generated $462.7M in gross profit for the year, representing a gross profit margin of 49.7%. This demonstrates the company's core pricing power and production efficiency.