Christopher Kennedy

Christopher Kennedy from William Blair asked about the recent acceleration in EVERTEC's M&A activity and whether this pace is expected to continue. He also sought to understand the size and continued strength of the ATH Móvil business.

Answer

Mac Schuessler, President and CEO of EVERTEC, stated that M&A and organic growth have diversified revenue, with over 40% now from outside Puerto Rico, creating a new growth formula. He confirmed continued M&A interest due to low leverage and regional presence but noted a focus on integrating Dimensa. For ATH Móvil, Mr. Schuessler described it as a fantastic growth opportunity and a preferred payment method, while Karla Cruz-Jusino, CFO, confirmed its double-digit growth, emphasizing its unique advantage for local Puerto Rican banks.

Christopher Kennedy with William Blair asked about the key performance indicators (KPIs) investors should track to monitor Payoneer's progress in its upmarket strategy, especially given upcoming changes in segment disclosures. He also inquired about the long-term opportunity for expanding core profitability margins.

Answer

CEO John Caplan highlighted that Payoneer already has a strong upmarket business, with customers doing over $50,000 accounting for 42% of Q4 2025 revenue. He suggested tracking ARPU growth, cross-selling product adoption, and volume per customer growth. CFO Bea Ordonez emphasized the focus on expanding ex-interest profitability, targeting $90 million in core Adjusted EBITDA for 2026, more than double the prior year. She noted that top-line growth, improved transaction-based margins, and the AI-first strategy are expected to drive continued leverage unlock beyond 2026.

Christopher Kennedy asked about the free cash flow generated in 2025 and the prospects for free cash flow in 2026.

Answer

CFO Rick Weller indicated that approximately $400 million in free cash earnings were generated in 2025, which was used for share repurchases and acquisitions. He expects free cash flow in 2026 to improve consistently with the 10%-15% EPS outlook, with capital allocation priorities focused on internal product development, digital initiatives across all segments, and strategic acquisitions that support digital growth.

Christopher Kennedy from William Blair requested more details on Euronet's merchant processing business, which is split between epay and the EFT segment, asking for color on its growth and future opportunities. He also inquired about the free cash flow generated in 2025 and the prospects for 2026.

Answer

Chairman and CEO Mike Brown highlighted the exceptional growth in the merchant processing business, with epay's merchant acquiring growing over 20% and EFT's merchant acquiring (in Greece and elsewhere) growing over 30%. He noted that the combined EBITDA for these endeavors was approximately $90 million, indicating significant size and rapid growth. CFO Rick Weller stated that Euronet essentially generated about $400 million in free cash earnings in 2025 and expected a similar rhythm of improvement in 2026, consistent with the 10%-15% EPS outlook. He emphasized deploying free cash flow to support internal product development, digital initiatives across all segments, and strategic acquisitions that extend digital growth strategies.

Christopher Kennedy asked about the drivers of Jack Henry's 'trifecta wins' (core, digital, card), specifically if it's due to vendor consolidation, changes in go-to-market strategy, or moving upmarket. He also inquired about the opportunity with the new enterprise account opening platform.

Answer

Gregory Adelson (President, CEO, and Board Member) stated that trifecta wins are a combination of improved Banno solution set (especially the business side), enhanced commercial aspects of the card platform, and a deliberate strategy to win larger deals and penetrate new opportunities. Regarding the new enterprise account opening platform, he indicated it's in 'closed beta' with some feature gaps to close, describing it as a unique single platform for consumer and commercial account opening, with more details to be shared later.

Christopher Kennedy asked about the driving factors behind Jack Henry's "trifecta wins" (core, digital, card), specifically whether they are due to financial institutions consolidating vendors, changes in go-to-market strategy, or moving upmarket. He also inquired about the opportunity presented by the new enterprise account opening platform.

Answer

Gregory Adelson, President and CEO, explained that trifecta wins are a combination of factors, including significant improvements to the Banno solution set, particularly on the business side, and enhanced commercial aspects of their card platform. He stated that these wins are by design, supporting their strategy to move upmarket and pursue new opportunities. Regarding the new enterprise account opening platform, Mr. Adelson mentioned it is still in closed beta with some feature gaps to address, but it will be a unique single platform for both consumer and commercial account opening with embedded functionality, with more details to be shared in coming months.