Madison Suhr

Madison Suhr asked about the Latin America pipeline, its size relative to previous quarters, acceleration in sales activity, and its support for 2026 double-digit organic growth, including reliance on new sales. She also inquired about the Dimensa acquisition, what made it attractive, the post-acquisition plan, and potential cross-sell opportunities.

Answer

Mac Schuessler, President and CEO of EVERTEC, described the Latin America pipeline as healthy, citing significant wins like Banco de Chile and Grupo Aval, which are now live or in implementation. He expects the current cadence of meaningful deals to continue. Regarding Dimensa, Mr. Schuessler highlighted the success of Sinqia as a roll-up asset and noted Dimensa's origin as a joint venture between TOTVS and B3. He emphasized its entry into the insurance vertical, additional product offerings, and significant cross-sell opportunities, along with potential cost synergies.

Madison Suhr from Raymond James inquired about the Latin America pipeline, its size compared to previous quarters, the acceleration of sales activity, and whether it supports the projected double-digit organic growth for 2026 or if new sales are still crucial. She also asked about the attractiveness of the Dimensa acquisition, the post-acquisition plan, and potential cross-sell opportunities.

Answer

Mac Schuessler, President and CEO of EVERTEC, highlighted a healthy Latin America pipeline, citing successful implementations like Banco de Chile and ongoing work with Grupo Aval, expecting continued strong deal cadence. Regarding Dimensa, Mr. Schuessler emphasized its strategic value as a JV between TOTVS and B3, offering entry into the insurance vertical, additional product offerings, significant cross-sell potential, and possible cost synergies, building on the success of the Sinqia acquisition.

Madison Suhr inquired about Paymentus's perspective on the potential opportunities and risks presented by Artificial Intelligence (AI) for the company's business model. She also asked for clarification on why the 2026 guidance implies a lower incremental adjusted EBITDA margin compared to recent strong performance.

Answer

CEO Dushyant Sharma explained that Paymentus views AI as a significant opportunity, believing the company is well-positioned to benefit due to its platform-as-a-service model, which charges for consumption rather than subscription fees. He highlighted the company's long-standing focus on AI and its potential to enhance customer experience and value creation across its diverse client base. CFO Sanjay Kalra added that the prudent 2026 guidance for incremental margins factors in the limited experience with newly launched large enterprise billers and planned operating expense increases for sales and marketing to capitalize on massive market opportunities and diversify into new verticals.

Madison Suhr with Raymond James asked about Paymentus's perspective on Artificial Intelligence (AI), specifically identifying potential opportunities and risks related to AI in their business model and the broader market. She also inquired about the 2026 incremental margin guidance, noting its deceleration compared to recent strong performance, and asked for insights into potential incremental investments.

Answer

CEO Dushyant Sharma explained that Paymentus views AI as a significant opportunity, positioning the company as an ultimate beneficiary due to its platform-as-a-service model where clients pay for consumption, not software fees. He highlighted the company's long-standing focus on AI and its potential to create value through customer experience innovation. CFO Sanjay Kalra clarified the prudent approach to 2026 guidance, citing limited experience with new large enterprise billers and planned operating expense increases for sales and marketing to capitalize on a massive market opportunity and diversify into new verticals.

Madison Suhr asked if the 200-300 basis point tailwind to Cross-Border from the Mastercard partnership is still the right way to think about its contribution, or if there's potential for upside given early positive indications.

Answer

Ron Clarke, Chairman and CEO, acknowledged that it's a timing call due to the longer sales cycle for financial institutions (FIs). However, he emphasized the significant potential upside, noting the 'whopper segment' and the 'crazy large' flows that banks currently manage. He highlighted that independents like Corpay only have a fraction of this business today, making the FI channel a potentially massive contributor over time if successful.

Madison Suhr inquired about the Mastercard partnership, specifically whether the previously indicated 2-300 basis point tailwind to CrossBorder is still the right expectation, or if there's potential for upside given the positive early indications.

Answer

CEO Ronald Clarke acknowledged the positive early indications and large pipeline for the Mastercard partnership. He emphasized that the financial institution (FI) segment represents a massive opportunity with significant flows, and successful penetration with a number of banks could lead to a 'big, big contribution' over time, substantially changing the long-term prospects for the cross-border business, despite the longer sales cycle.

Madison Suhr asked about the adoption and long-term opportunity for SMB products like Rapid Transfers and Tap2Local, and how their competitive set differs from traditional Jack Henry competitors. She also inquired about capital allocation priorities, appetite for buybacks, and the M&A pipeline.

Answer

Gregory Adelson (President, CEO, and Board Member) mentioned early positive anecdotes for Tap2Local and Rapid Transfers, with more data expected in May. He highlighted significant differentiation from Stripe/Square, including instant account approval, iOS/Android tap-to-pay, and patent-pending account reconciliation, noting a long roadmap for SMB products. Mimi Carsley (CFO and Treasurer) reiterated consistent capital allocation priorities: dividend policy, M&A (looking for accelerants/enhancements), internal development, and share repurchases ($125M year-to-date, comfortable with $200M+ for the year), emphasizing dynamic capital allocation with a conservative balance sheet.

Madison Suhr asked about the adoption and longer-term opportunity for Jack Henry's SMB strategy, specifically Rapid Transfers and Tap2Local, and how the competitive landscape differs from traditional Jack Henry competitors. She also inquired about the company's capital allocation priorities, appetite for buybacks, and the M&A pipeline.

Answer

Gregory Adelson, President and CEO, noted it's still early for comprehensive data on SMB product adoption, with more details expected in May, but shared an anecdote of rapid client sign-ups. He highlighted key differentiators from competitors like Stripe and Square, including instant account approval (75% instantaneous), tap-to-pay on both iOS and Android, and patent-pending account reconciliation. Mr. Adelson emphasized a long roadmap for SMB solutions. Mimi Carsley, CFO and Treasurer, outlined capital allocation priorities: a committed dividend policy, ongoing evaluation of M&A for accelerants, significant internal development, and share repurchases (with $125 million year-to-date and comfort for $200 million+ for the year), while maintaining a conservative balance sheet.