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Good day, and welcome to the EVERTEC's Third Quarter 2025 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Loyda Montes Santiago, Finance, Property and Investor Relations Senior Manager. Please go ahead.

Thank you, and good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer; Joaquin Castrillo, our Chief Operating Officer; and Karla Cruz-Jusino, Chief Financial Officer. Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC report. During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as constant currency revenue, adjusted EBITDA, adjusted net income and adjusted earnings per common share. Reconciliations to GAAP measures and certain additional information are also included in today's earnings release and related supplemental slides, which are available in the Investor Relations section of our company's website at www.evertecinc.com. I will now hand over the call to Mac.

Thanks, Joaquin, and good afternoon, everyone. Turning to Slide 18. I'll start with commentary on our updated 2025 outlook. We now expect revenues to be between $921 million and $927 million, representing growth of 8.9% to 9.6%. The updated outlook includes a Q3 overperformance and improved foreign currency expectation in Q4 and the acquisition of Tecnobank. On a constant currency basis, we now expect growth of 10% to 11% year-over-year, above our prior constant currency range of 7.8% to 8.7%. Adjusted EPS is now expected to grow between 8.5% and 10.4% from the $3.28 reported for 2024 and higher than our previous assumption of 4.8% to 7% growth. We now expect our adjusted EBITDA margin to be approximately 40%, and we continue to expect the adjusted effective tax rate to range from 6% to 7%. I will now walk you through the key underlying assumptions considered in our outlook, starting with revenue expectations across our business segments. We continue to anticipate mid-single-digit growth in Merchant Acquiring for 2025 as we expect a Q4 outlook in line with Q3 performance. In Payments Puerto Rico and Caribbean, we now expect mid-single-digit growth as we benefit from the continued momentum in ATH Móvil, partially offset by lower processing services to LatAm segment and the impact from the popular discount that began in October. For Latin America Payments and Solutions, we now expect high teens growth driven by strong organic momentum across the region and the contribution from the Tecnobank acquisition completed at the beginning of the fourth quarter partially offset by the headwind of foreign currency mainly in Brazil. On a constant currency basis, growth is not expected to be in the low 20s. As a reminder, we will anniversary both the Grandata and Nubity acquisitions in Q4. Finally, in Business Solutions, we continue to expect low single-digit revenue growth, primarily reflecting the 10% discount to Popular that became effective in October, impacting approximately $18 million annually estimated to be $4 million in Q4. Turning to overall margin. We anticipate approximately 40% for the full year. As we start to shift focus to 2026, while we are not providing guidance, I would like to share key items intended to help you frame your modeling assumptions and provide clarity on the strategic priorities driving our outlook for next year. Beginning with Puerto Rico, the 10% discount on selected MSA services with Banco Popular became effective in October 2025. As we head into 2026, this discount represents an estimated headwind of approximately $14 million, impacting mostly our Business Solutions segment with a more modest impact on our Payments Puerto Rico segment. Additionally, the CPI for September was announced at 3%. And as a reminder, this is capped at 1.5% for our MSA agreement and 2.5% for our ATH processing agreement with Popular. Beginning on October 2026, the CPI escalator will now allow increases above 2%, capped at a maximum of 2%. Specifically, as we look at our segments, while the Merchant Acquiring segment benefited from pricing initiatives through the first half of 2025, these tailwinds are expected to normalize in 2026. Additionally, the boost in transaction volumes linked to the Bad Bunny residency will create a modest headwind. Despite these factors, we remain optimistic about the segment's trajectory and are anticipating implementing key merchants that should continue to drive positive growth in 2026. For our Payments Puerto Rico, we expect a slight impact from the 10% discount to Popular to be offset by the continued strength in ATH Móvil and anticipated growth in POS transactions. In Latin America, we expect continued momentum in 2026, supported by a mix of organic growth and strategic M&A, including Tecnobank. Additionally, while we are very excited about the key wins [indiscernible], these are not expected to have a meaningful contribution to 2026 as these will be either ramping up or under implementation for most of the year. Finally, in Business Solutions, we expect a top line reset driven by the incremental $14 million impact as a result of the 10% discount to Popular that began in October, partially offset by the CPI impact already mentioned. Moving to margins. To offset the impact of the 10% popular discount and the lower margin contribution from Latin American organic growth, we remain focused on executing targeted cost efficiencies initiatives across our business segments. Interest expense is projected to decline year-over-year, supported by successful debt repricing and lower SOFR rates. However, this benefit will be partially offset by incremental debt related to the Tecnobank acquisition. Lastly, regarding taxes, we expect a higher adjusted tax rate reflected increased EBITDA contributions from LATAM and a reduction in interest expense, a key driver of tax efficiency in 2025. In summary, we delivered a strong third quarter and are well positioned to deliver strong top line growth in 2026. We remain focused on executing our strategic priorities and cost initiatives to support long-term value creation. We look forward to sharing more updates on our progress in early 2026. On behalf of Mac, Joaquin and myself, we appreciate your continued support, and I hope to connect with many of you at upcoming conferences over the next few months. Operator, please go ahead and open the line for questions.

[Operator Instructions]. Your first question comes from Jamie Friedman from Susquehanna.

Congratulations, Joaquin and Karla, on your respective promotions. And I hope we continue to work together in the future, Joaquin, I learned a lot from you over the years. So Mac, maybe I'll ask, first of all, in terms of LatAm, up 19% year-over-year. This growth seems quite durable. You're signing incremental deals, Banco Chile, et cetera. So any perspective that you could share now as to what you're finding relative to when you began the expansion in LatAm? Is it -- are you resonating? Are you gaining the mind share that you had anticipated? And what's so far surprised you down there?

Yes. So I mean, if I look at long term over the course of the company, I think what we've been able to do is build products through acquisitions so that they're now some of the best products in the region. So if you look at the deals we just announced, Banco de Chile is using our acquiring platform, which is now our second big deal in Chile. If you look in Peru, we now have this deal where they're using our issuing platform. So I think what we've done is we've built these products now that we're scaling across the region. And as you'll see, we're getting good margins. The other piece, I think, that's pretty important was the Sinqia deal. We got that deal. It's now growing at a rate that we're very happy with now that we've integrated. And it also gives us the ability to make other acquisitions like Tecnobank. So those are the 2 big things that I think we've seen is our products are now scalable across the region. We're winning business to demonstrate that. And now we have sort of a cornerstone of our strategy to continue to invest in Brazil through the Sinqia acquisition and the infrastructure we have there. We're super excited about the future, as Karla talked about 2026 and the continued growth that we think we'll see in LatAm.

You're talking about the cost of living adjustments. You're talking about the CPI adjustments on [indiscernible] contract.

CPI, what I'm trying to say, CPI, yes.

Yes. No, I got it. So yes, yes. So do you want to talk about the CPI adjustments?

Yes, we did call out that the CPI in this for September was announced at 3%, and it's now currently capped at 1.5% for our MSA agreement with Popular and at 2.5% for ATH processing agreement. Now beginning in 2026, we have mentioned in the past that, that escalator will permit an increase in the CPI above 2%, but now capped at 2%.

[Operator Instructions]. Your next question comes from Marc Feldman from William Blair.

I'll echo my congratulations to both Joaquin and Karla. I guess, first off, could you talk about potential cross-sell opportunities between Tecnobank and Sinqia's, given Sinqia's presence in the consortium model in Brazil?

Yes. So look, as we tuck in assets to the Sinqia acquisition, it's exciting to have an organization and management team that can manage these investments. Tecnobank has cross-sell opportunities because we do business with a lot of the financial institutions and the financial institutions are primarily -- and the consortiums are primarily the customers of Tecnobank. So there's tremendous cross-sell opportunities where Tecnobank customers can use other products that we already have and vice versa. So there's some Sinqia customers that don't use Tecnobank today. It's a great business on a stand-alone basis, but the cross-sell opportunities, we think are relevant.

Your next question comes from John Davis from Raymond James.

I'll add my congrats to Joaquin and Karla. Mac, just big picture here, the security incident within Sinqia. Just curious, I understand it's kind of been ring-fenced at this point, but have you seen any adverse impact on business momentum, pipeline, anything like that? I'd just be curious kind of on the state of the momentum at Sinqia more broadly as well.

Yes. At this point, we haven't seen an impact to the commercial business. It was primarily just 2 banks that were impacted. And those 2 banks, we've been able to work through all the issues with those guys. We also think that we can now demonstrate -- I also want to say just -- I don't know that everyone has perspective. This happened to multiple technology companies. So there were criminals trying to take advantage of the PIX system through multiple companies in Brazil. So if you pull the press, this didn't happen to just us. It was several. What I would say is that we believe now that we've really been able to harden our systems that we've been able to demonstrate we have better systems, and we're going to work to make this an advantage versus a disadvantage. But we haven't seen any negative commercial impact at this point.

Okay. And then last one, Mac. Just on capital allocation, balance sheet is in good shape. I know the Tecnobank deal just closed. But just curious, appetite, you thinking kind of more tuck-in deals, thoughts on potentially buying back stock with the pullback frankly across the whole space. Just curious on updated thoughts with where the stock is trading and also kind of appetite on the M&A side.

Sure. So I mean, what I would say is, look, after -- into the next quarter, we'll be above -- a little bit above 2, right, Karla?

Correct.

So I mean, we'll be between 2 and 3, but on the lower end of sort of what's tolerable. We do recognize where our stock price is, and we are sort of evaluating the pipeline. We still have a good pipeline. And every quarter, we'll take a look at capital allocation and try and make the right decision. But as you know, it's something we're very, very focused on, and we'll balance where the stock price is, but also the M&A opportunities that we have.

Mac, I would add there that we do have $150 million available still under our share repurchase program, and that ends in 2026. So this is another point.

[Operator Instructions]. There are no further questions at this time. I'll now hand the conference back to management for any closing remarks.

Again, I want to thank everybody for joining the call. Again, I want to congratulate all of my colleagues on the call with me, and we look forward to seeing you in the future at investor events. Have a good night.