What's behind NCR Voyix's 8.79% drop despite Q2 profit?

NCR Voyix's stock experienced an 8.79% drop despite reporting a profit in Q2 2025, which can be attributed to a combination of factors:

1. **Revenue Decline**: Although NCR Voyix posted a net income of $1 million in Q2 2025, the company's total revenue decreased by 7.8% year-over-year, from $722 million to $666 million. This decline in revenue, despite the profit, may have contributed to the market's negative reaction.
2. **Hardware Sales Drop**: The company's shift towards subscription-based software and services is causing a decline in hardware sales. This transition is likely impacting the company's overall revenue and profitability, which may be causing investor concerns.
3. **Margin Gains**: Despite the revenue decline, NCR Voyix achieved a 19% rise in adjusted EBITDA, indicating improved margin performance. However, this positive aspect may not have been enough to counterbalance the negative impact of the revenue drop.
4. **Market Sentiment**: The market's sentiment towards NCR Voyix could be influenced by broader market conditions, investor sentiment towards the technology sector, or specific company-specific factors. It's important to consider these factors when analyzing the stock's performance.
5. **Debt and Cash Flow Concerns**: The company's high debt-to-equity ratio of 1.27 and cash flow issues, primarily due to outflows linked to taxes on the recent Digital Banking sale and ongoing restructuring, may be contributing to the market's negative perception.
6. **Guidance Update**: NCR Voyix updated its fiscal year 2025 guidance to an EPS range of $0.750-0.800, which may have led to concerns among investors about the company's future earnings potential.

In summary, NCR Voyix's stock drop can be attributed to a combination of revenue decline, hardware sales drop, market sentiment, debt and cash flow concerns, and guidance update. These factors, coupled with the company's strategic shift, are likely influencing investor sentiment and stock performance.