EVERTEC, Inc. (EVTC): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how EVERTEC, Inc. is structuring its business for growth heading into late 2025, and honestly, it's a fascinating mix of legacy strength and aggressive expansion. As a former head analyst, I can tell you their blueprint-the Business Model Canvas-shows a clear pivot toward Latin America payments while defending their core, projecting revenues between $921 million to $927 million this year and earmarking $85 million for CapEx to fuel that growth. If you want to see the precise mechanics behind their proprietary ATH network, their merchant acquiring fees, and how they plan to keep those mission-critical systems humming, dive into the nine building blocks below; it's the clearest map of their strategy you'll find.

EVERTEC, Inc. (EVTC) - Canvas Business Model: Key Partnerships

You're analyzing the foundation of EVERTEC, Inc. (EVTC)'s business, and the strength of its partnerships is clearly central to its operational scale. These relationships are what allow EVERTEC, Inc. to process over ten billion transactions annually across its networks.

Popular, Inc. for long-term Master Services Agreement (MSA)

The relationship with Popular, Inc. and Banco Popular de Puerto Rico (BPPR) remains a cornerstone, even after restructuring. The Second Amended and Restated Master Services Agreement (MSA) was extended, which included a 3-year extension of the MSA itself. This agreement now includes annual MSA minimums through 2028. To be fair, there are specific financial terms tied to this relationship; a 10% discount on certain MSA services started in October 2025. Furthermore, as part of the transaction closing, Popular's voting interest in EVERTEC, Inc. is being reduced to 4.5%.

Local Financial Institutions across 26 Latin American Countries

EVERTEC, Inc. serves a diversified customer base that includes leading financial institutions across the 26 Latin American countries where it operates, plus the Caribbean. This network of partners is critical for the company's scale, which saw its Q3 2025 revenue reach $228.6 million. The core of this is the ATH network, one of the leading PIN debit networks in the region.

Here's a quick look at the scale of operations supported by these institutional partners:

Tecnobank (Brazil) as a Recently Acquired Strategic Partner

The acquisition of Tecnobank Tecnologia Bancária S.A. in Brazil significantly deepens EVERTEC, Inc.'s footprint in Latin America's largest economy. EVERTEC, Inc. completed the purchase of a 75% stake in Tecnobank on October 1, 2025. The deal value was approximately US$144 million (or BRL $787 million). Tecnobank itself is a market leader in vehicle financing contract registration, operating in 15 Brazilian states and having registered over 12M contracts, processing more than 100M data points. This move follows prior 2023 acquisitions in Brazil, Sinqia and PaySmart.

Strategic Technology Vendors for Cloud and Analytics Integration

EVERTEC, Inc. relies on technology vendor partnerships to drive modernization. The integration of cloud and data analytics providers acquired in the last year directly contributed to growth. For instance, in Q2 2025, revenue in Latin America Payments and Solutions climbed 13%, partly due to these integrations. This focus on tech advancement is also evident in their recognition from card networks.

Card Networks (Visa, Mastercard) for Payment Processing

The relationship with global card networks is essential for maintaining the integrity of the payment ecosystem. EVERTEC, Inc. recently expanded its alliance with Mastercard, focusing on digital transformation and security. This collaboration is yielding measurable results; the implementation of Mastercard's Click to Pay solution in EVERTEC, Inc.'s Placetopay gateway increased the approval rate by more than 3% compared to traditional credit card use. EVERTEC, Inc. also received the "Acceptance - Innovative Excellence" award from Mastercard in December 2025.

Key partnership extensions and achievements include:

• MSA minimums secured through 2028 with Popular, Inc..
• 10% discount on certain MSA services starting October 2025.
• Acquisition of 75% of Tecnobank for $144 million.
• Tecnobank has registered over 12 million vehicle financing contracts.
• Mastercard Click to Pay implementation boosted approval rates by over 3%.

Finance: review the impact of the 10% MSA discount on Q4 2025 revenue projections by Monday.

EVERTEC, Inc. (EVTC) - Canvas Business Model: Key Activities

You're looking at the core engine of EVERTEC, Inc. (EVTC) operations as of late 2025, based on their third-quarter performance and updated guidance. This is what they are actively doing to generate revenue across the 26 Latin American countries and the Caribbean where they operate.

Operating the ATH® PIN debit network

This activity is central to their Puerto Rico and Caribbean operations, managing one of the leading Personal Identification Number (PIN) debit networks in the region. The network supports authorization, processing, management, and recording of ATM and Point-of-Sale (POS) transactions. While the total transaction volume across all networks is over ten billion annually, the growth in digital payments is a key driver here. The Payments Puerto Rico segment revenue, which includes this network, was $214.7 million in 2024, showing the scale of this foundational activity.

Merchant acquiring and transaction processing

EVERTEC, Inc. enables merchants to accept electronic payments. This involves revenue from discount fees and leasing POS devices. The Merchant Acquiring segment generated $180.5 million in revenue in 2024, driven by sales volume growth and spread improvements, though lower gas prices presented some headwinds in mid-2025. The overall company reported Q3 2025 revenue of $228.6 million, with the full-year 2025 revenue outlook raised to between $921 million and $927 million.

Developing and integrating digital payment solutions (ATH Movil)

A major focus is on proprietary digital solutions, most notably ATH Movil in Puerto Rico. This mobile payments service shows strong momentum, with its revenue growing 17% year over year as of Q2 2025, expanding adoption from small to larger businesses. This digital growth helps offset headwinds in other areas of the business.

Providing mission-critical core banking and IT consulting services

This involves licensing, support, implementation, and outsourcing of IT services for financial products like core banking, credit, and payments. The Business Solutions segment, which includes these services, posted 2024 revenues of $244.0 million. Growth in Q2 2025 was specifically attributed to completed projects and an increase in IT consulting services.

Executing tuck-in acquisitions for regional expansion

EVERTEC, Inc. actively pursues acquisitions to bolster its platform, especially in Latin America. A concrete example from late 2025 is the completion of the purchase of a 75% stake in Tecnobank Tecnologia Bancária S.A., a fintech vendor in Brazil's digital vehicle financing sector, finalized on October 1, 2025. This follows prior acquisitions like Sinqia, paySmart, Grandata, and Nubity, which contributed significantly to the Latin America Payments and Solutions segment revenue of $302.8 million in 2024.

Here's a quick look at the financial results underpinning these activities through Q3 2025:

The company continues to focus on operational excellence, evidenced by the Q3 2025 Adjusted EBITDA of $92.6 million, even as they integrate new businesses. You can see the impact of their diversified activities in the segment revenue breakdown from their last full-year report:

• Payment Services - Puerto Rico & Caribbean: $214.7 million (2024 revenue)
• Latin America Payments and Solutions: $302.8 million (2024 revenue)
• Merchant Acquiring: $180.5 million (2024 revenue)
• Business Solutions: $244.0 million (2024 revenue)

The net cash provided by operating activities for the nine months ended September 30, 2025, reached $157 million, showing the strong cash generation from these key activities.

EVERTEC, Inc. (EVTC) - Canvas Business Model: Key Resources

You're looking at the foundational assets that let EVERTEC, Inc. (EVTC) operate and grow across the Caribbean and Latin America. These aren't just line items on a balance sheet; they are the engines driving their mission-critical technology solutions for financial institutions, merchants, and governments.

Proprietary ATH® network and payment processing platforms

The ATH network is a massive resource, being one of the leading Personal Identification Number (PIN) debit networks in the region. This network, along with EVERTEC, Inc. (EVTC)'s broader electronic payment systems, handles a staggering volume of activity. Specifically, the company manages systems that process over ten billion transactions annually in Puerto Rico alone, covering ATM, debit, and mobile payments.

The proprietary mobile offering, ATH Móvil, is a clear growth driver. In the third quarter of 2025, this service showed mid-teens growth, fueled by new merchant sign-ups and higher sales volume. This platform represents a key competitive advantage in digital adoption.

Deep, long-standing client relationships with major banks

Maintaining the trust of major financial players is non-negotiable in this business. EVERTEC, Inc. (EVTC) serves a diversified customer base, but dependency on key relationships is a reality. For instance, the company faces significant risk related to its dependency on Banco Popular, which accounts for a substantial portion of its revenue. Furthermore, revenue in the Business Solutions segment in early 2025 was driven by projects completed, mainly for Popular. These deep integrations mean high switching costs for the client, which locks in the resource for EVERTEC, Inc. (EVTC).

Specialized personnel and technology for cloud/analytics

You can't run a fintech platform processing billions of transactions without the right people and tech stack. EVERTEC, Inc. (EVTC) has a team of over 5,000 employees. The investment in talent and modern infrastructure is clear, though it impacts margins in the short term. For example, the adjusted EBITDA margin in the second quarter of 2025 saw a slight contraction due to rising costs related to personnel, software, and cloud spending. The company has also been actively integrating technology from recent acquisitions, completing the integration of cloud and data analytics providers acquired in the last year.

Projected $85 million in 2025 capital expenditures for CapEx

The commitment to maintaining and upgrading this infrastructure is quantified in the planned spending for the year. EVERTEC, Inc. (EVTC) continues to expect capital expenditures to be approximately $85 million for the full year 2025. This figure shows a clear investment priority to support future operations and growth initiatives.

Here's a look at how that CapEx was tracking mid-year:

Extensive regional data center and network infrastructure

The physical and digital footprint spans a wide geography, which is essential for serving its diverse Latin American client base. EVERTEC, Inc. (EVTC) operates in 26 Latin American countries, with 24 offices, including its headquarters in Puerto Rico. This extensive regional presence supports the delivery of its mission-critical technology solutions across the area.

The operational scope includes:

• Operating in 26 Latin American countries.
• Serving a diversified customer base of financial institutions, merchants, corporations, and government agencies.
• Managing electronic payment networks across the region.
• Leveraging infrastructure to support organic growth and recent acquisitions like Tecnobank in Brazil.

Finance: draft 13-week cash view by Friday.

EVERTEC, Inc. (EVTC) - Canvas Business Model: Value Propositions

You're looking at the core reasons why financial institutions, merchants, and governments rely on EVERTEC, Inc. (EVTC) to keep their money moving. It's about providing the digital plumbing that simply has to work, every single time.

Full-service, end-to-end transaction processing is the foundation here. This means EVERTEC, Inc. (EVTC) isn't just a piece of the puzzle; they manage the entire flow, from the moment a card is swiped or a mobile payment is initiated, all the way through to settlement. This comprehensive approach is what allows them to serve a diversified customer base of leading financial institutions, merchants, corporations, and government agencies. They offer merchant acquiring, payment services, and business process management, covering the full spectrum of electronic payments.

The value proposition hinges on mission-critical, highly reliable technology solutions. When you're handling the financial lifeblood of a region, downtime isn't an option. The scale of their operation speaks to this reliability. EVERTEC, Inc. (EVTC) manages a system of electronic payment networks that process over ten billion transactions annually. This massive throughput requires robust infrastructure, which is reflected in their strong operational performance, like the Q3 2025 Adjusted EBITDA margin of 40.5%. That margin shows they are running the operation efficiently while maintaining high standards.

Their proprietary mobile payment platform, ATH Movil, is a significant differentiator, especially in Puerto Rico. The segment benefiting from this platform saw strong results; Payments Puerto Rico revenue defintely benefited from increased revenues from ATH Movil and transaction growth in Q1 2025. This platform helps drive the digital shift, allowing individuals to transfer money instantly using just a phone number, and enabling businesses to accept those payments in real time. It's a key component in capturing the move away from cash.

The localized expertise in Latin American and Caribbean markets is crucial for navigating the regulatory and cultural landscape of the region. EVERTEC, Inc. (EVTC) isn't a distant player; they are deeply embedded, operating in 26 Latin American countries and the Caribbean. This local presence supports their growth, as seen in the Q3 2025 revenue for Latin America Payments and Solutions, which was up approximately 19% year over year. This local knowledge is what helps them integrate acquisitions like Tecnobank in Brazil effectively.

The sheer scale confirms the scalable platform supporting over ten billion transactions annually. To put that volume into the context of their 2025 financial performance, the company raised its full-year 2025 revenue outlook to be between $921 million and $927 million. This growth is supported by strong cash generation, with net cash provided by operating activities reaching $157 million year to date through Q3 2025. The platform's scalability is what allows them to absorb volume growth while maintaining profitability, as evidenced by their Q3 2025 Adjusted EBITDA of $92.6 million.

Here's a quick look at the financial scale underpinning these value propositions as of late 2025:

The value proposition is also supported by the company's commitment to shareholder returns and liquidity:

• Net cash from operating activities year to date (9 months 2025): $157 million.
• Ending cash balance (excluding settlement assets) as of Q3 2025: approximately $499.7 million.
• Q1 2025 Regular Quarterly Dividend declared: $0.05 per share.

EVERTEC, Inc. (EVTC) - Canvas Business Model: Customer Relationships

You're looking at how EVERTEC, Inc. (EVTC) locks in its core revenue streams. For their largest clients, the relationship is deep and built on mission-critical infrastructure.

Dedicated account management for large financial institutions

EVERTEC, Inc. serves a diversified customer base that includes leading financial institutions across the 26 Latin American countries and the Caribbean where it operates. These relationships are foundational, given that the company provides mission-critical technology solutions. The scale of this commitment is reflected in the sheer volume of activity they manage.

The company processes over ten billion transactions annually through its electronic payment networks. This volume is a direct indicator of the trust placed in EVERTEC, Inc. by its core banking and financial partners.

High-touch, long-term contractual relationships (MSA model)

The high-touch nature is cemented through long-term contracts, most notably with major clients like Popular, Inc. These Master Service Agreements (MSA) are the backbone of revenue stability. For instance, modifications to the main commercial agreements with Popular included specific term extensions and financial commitments.

This defintely shows a commitment to long-term partnership structures, even with built-in pricing adjustments.

Self-service and digital support for merchant acquiring

For the Merchant Acquiring segment, which generated revenues of $180.5 million in 2024, the relationship shifts toward enabling merchant self-service and digital acceptance. The focus is on driving volume through platforms that merchants use directly.

• Growth in the Payment Services - Puerto Rico and Caribbean segment, which saw 2024 revenue of $214.7 million, is tied to digital adoption.
• Key driver is the ATH Móvil business, which posted mid-teens growth in Q3 2025.
• The company focuses on expanding digital products like e-wallets and mobile apps to support merchant transaction acceptance.
• Merchant Acquiring revenue growth in Q2 2025 was attributed to higher sales volume and prior-year pricing initiatives.

Continuous service and technology upgrades for core clients

The expectation from core clients is a continuous flow of technology improvements, which is reflected in the company's raised 2025 guidance. The Business Solutions segment, which includes core bank processing and managed services, is driven by fixed fees and usage-based metrics, tying client scale directly to EVERTEC, Inc.'s revenue.

The revised 2025 revenue outlook, targeting up to $927 million, suggests that technology investments are successfully supporting client needs and driving organic growth across segments.

EVERTEC, Inc. (EVTC) - Canvas Business Model: Channels

You're looking at how EVERTEC, Inc. gets its services-from core processing to mobile payments-into the hands of its customers across Latin America and the Caribbean. The channels are a mix of direct relationship management and operating the underlying infrastructure.

The direct sales force is key for securing and maintaining relationships with large entities. EVERTEC, Inc. benefits from the trend of financial institutions and government agencies outsourcing technology systems and processes. This direct channel targets clients needing 'mission-critical' technology solutions across the 26 Latin American countries where EVERTEC, Inc. operates. The company believes it is the largest card processor and card network service provider in the Caribbean, which speaks to the depth of these direct ties with financial institutions.

The ATH® network is the foundational channel for inter-bank and debit transactions. EVERTEC, Inc. owns and operates this network, which is cited as one of the leading personal identification number (PIN) debit networks in Latin America. This infrastructure is massive; in Puerto Rico alone, the system manages services for core banking, cash processing, and fulfillment that process over ten billion transactions annually.

For merchant acquiring, the channel involves deploying and managing Point-of-Sale (POS) terminals. EVERTEC, Inc. sells transaction-processing technology solutions and also rents POS devices directly to financial institution customers for their deployment. These modern terminals are designed for omnichannel flexibility and support accepting QR Code payments directly from mobile users.

Digital platforms represent the fastest-growing channel, primarily through ATH Movil. This mobile payments service allows individuals to transfer money instantly using only a phone number. The related product, ATH Business, enables merchants to accept these payments in real time. The Payments Puerto Rico segment, which includes these digital channels, benefited from increased revenues from ATH Movil and overall transaction growth in the first half of 2025.

Here's a quick look at how the revenue streams mapped to these channel areas in the third quarter of 2025, based on segment reporting:

The growth rates show where the momentum is; for instance, the Latin America segment revenue grew 19% year-over-year in Q3 2025, driven by strong organic expansion and acquisitions like Tecnobank, which closed on October 1, 2025.

You should keep an eye on the specific growth drivers within the Puerto Rico channels:

• ATH Movil transaction and sales volume growth, primarily in ATH Business.
• The Payment Services segment in Puerto Rico and the Caribbean grew 5% year-over-year to $55.2 million in Q3 2025.
• The Merchant Acquiring segment saw higher sales volume and non-transactional revenues.
• The overall company revenue for Q3 2025 was $228.6 million, an 8% increase year-over-year.

Finance: draft 13-week cash view by Friday.

EVERTEC, Inc. (EVTC) - Canvas Business Model: Customer Segments

You're looking at the foundation of EVERTEC, Inc. (EVTC)'s revenue engine, the distinct groups of clients they serve across the Caribbean and Latin America. This isn't abstract; it's about where the money actually comes from, based on their late 2025 operational snapshot.

The customer base is segmented across four primary areas, which map directly to their reported business segments. For the full year 2024, the segment revenue breakdown provides a clear picture of scale, though Q3 2025 results show continued growth across these areas.

The financial institutions segment includes major players; for example, the Business Solutions segment saw revenue growth driven by completed projects, mainly for Popular, as reported in the 2025 10-K filing. The Payment Services - Puerto Rico & Caribbean segment, which houses ATH Movil, saw its revenue increase to $214.7 million in fiscal year 2024, benefiting from strong digital payments growth.

For merchants, the acceptance footprint is significant, especially in Puerto Rico. The ATH network supports a large number of businesses processing transactions.

• About 50,000 merchants accept ATH in P.R.
• ATH Business has around 20,000 active merchants as of the latest report.
• Merchant Acquiring revenue for Q2 2025 was $47.6 million.

Consumers are the end-users driving the massive volume through the proprietary mobile wallet and the underlying debit network.

• The ATH Movil service processes transactions instantly for consumers.
• The overall ATH network processes over ten billion transactions annually.
• Payments Puerto Rico revenue in Q3 2025 benefited from ATH Movil transaction and sales volume growth.

Geographically, EVERTEC, Inc. (EVTC) has a broad reach, which is reflected in the segment performance, with Latin America being a major growth driver.

• Operates in 26 Latin American countries.
• Latin America Payments and Solutions segment revenue reached $302.8 million in fiscal year 2024.
• Latin America revenue jumped 13% in Q1 2025 (22% constant currency).
• The company maintains offices in the Caribbean and Latin America regions.

The total consolidated revenue guidance for the full year 2025 is set between $921 million and $927 million, showing the combined scale of these customer segments.

EVERTEC, Inc. (EVTC) - Canvas Business Model: Cost Structure

You're looking at where EVERTEC, Inc. is spending its money as we head into the end of 2025. The cost structure is heavily influenced by maintaining its core technology platforms and making strategic investments.

The company continues to signal significant investment in its future capacity. EVERTEC, Inc. maintained its full-year 2025 capital expenditures (CapEx) outlook at approximately $85 million. Through the third quarter of 2025, capital expenditures totaled $67.9 million, keeping them tracking in line with that full-year plan.

Variable costs are definitely on the rise, putting some pressure on margins. For instance, the adjusted EBITDA margin narrowed slightly in the second quarter of 2025, which management pointed to as reflecting pressure from increased costs for software, personnel, and cloud services. This aligns with the Business Solutions segment seeing revenue increases due to projects completed and an increase in IT consulting services during the third quarter.

While the search results don't give a specific dollar amount for fixed technology infrastructure costs, the need for network operations and software maintenance is a constant, high-level expense. We do see evidence of personnel costs being a factor; for the full year 2024, both cost of revenues and selling, general and administrative expenses increased primarily due to higher personnel costs from acquisitions.

Here's a quick look at some of the key financial figures impacting the cost side as of late 2025:

On the debt side, EVERTEC, Inc. is seeing some relief in its interest expense. The third quarter 2025 results showed that Adjusted EPS growth was driven by strong Adjusted EBITDA growth and lower interest expense. Management explicitly noted this lower cash interest expense reflects the positive impact of repricing its debt. To manage its structure further, in late November 2025, the company amended its Credit Agreement to add a $150 million New TLB Facility, using the proceeds to repay debt outstanding under the revolving credit facility. The interest margins on this new facility match existing terms, with SOFR loans at 2.25% and base rate loans at 1.25%.

You should keep an eye on these specific cost drivers:

• Increased software maintenance and cloud expenses.
• Personnel costs tied to acquisitions and IT consulting projects.
• The impact of the recent $150 million debt shift on future interest expense.
• Operating depreciation and amortization expense, which was higher in Q3 2025 compared to the prior year.

Finance: draft 13-week cash view by Friday.

EVERTEC, Inc. (EVTC) - Canvas Business Model: Revenue Streams

You're looking at the core ways EVERTEC, Inc. brings in money as we head into the end of 2025. The company has a clear line of sight for the full year, projecting total revenue guidance between $921 million and $927 million. This guidance was actually raised following strong third quarter results, showing solid momentum across the board.

The revenue streams are deeply tied to transaction processing and technology services across Latin America and the Caribbean. To give you a concrete look at the latest figures, here is how the segments stacked up in the third quarter of 2025, which helps illustrate the current revenue mix:

As you can see, the Latin America Payments and Solutions segment is the largest contributor based on the latest reported quarterly revenue.

Diving into the specific drivers for each stream, you see how transaction economics play out:

• Merchant Acquiring fees are generated from transaction volume and spread charged to merchants for processing card payments. In the third quarter, this segment saw growth driven by higher sales volume, though it was slightly tempered by a decrease in the average spread.
• Payment Services fees are heavily reliant on the performance of the ATH network, which is central to debit transactions in Puerto Rico, and the rapidly growing ATH Movil mobile payments platform. Growth here in Q3 was fueled by strong performance in ATH Business and a 7% increase in POS transactions.
• Business Solutions revenue comes from delivering core banking technology services and IT consulting projects. The modest growth in Q3 was attributed to the completion of specific projects during the quarter and an uptick in hardware sales.

To give you a sense of scale from the prior full-year filing, the Latin America Payments and Solutions segment was already showing significant scale, reporting revenues of $302.8 million for the full year 2024, which was the largest of the four segments then. The Payment Services - Puerto Rico & Caribbean segment followed at $214.7 million. The Business Solutions segment was reported at $244.0 million in 2024, so while Q3 2025 data shows Latin America leading, the overall mix is dynamic. The company is definitely leaning into the Latin America growth story, evidenced by the 19% year-over-year revenue increase in that segment for Q3 2025.

Finance: draft 13-week cash view by Friday.