NCR Atleos 2025 Q2 Earnings Strong Performance as Net Income Surges 50%

NCR Atleos (NATL) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025, exceeding high-end guidance expectations. The company affirmed full-year 2025 guidance and highlighted strong performance driven by ATM outsourcing growth and hardware demand. Earnings metrics showed robust year-over-year improvements in both revenue and profitability, while the board announced a $200 million share repurchase program.

Revenue
Total revenue for NCR Atleos in fiscal 2025 Q2 increased by 2.2% year-over-year to $1.10 billion, with recurring revenue accounting for 70% of total revenue. This includes $773 million in recurring revenue compared to $792 million in the prior year period. The company reported $266 million in product revenue and $838 million in service revenue, contributing to the overall revenue of $1.10 billion. The Self-Service Banking segment led the way with revenue of $733 million, a 9% increase from $672 million in the prior year. The Network segment generated $320 million, a marginal 2% decrease from $326 million in the prior year. The T&T segment reported $41 million, a 20% decline from $51 million in the prior year. Other non-reportable segments and corporate functions added $10 million to the total, a 68% decrease from $31 million in the prior year.

Earnings/Net Income
NCR Atleos's GAAP diluted earnings per share increased by 46% year-over-year to $0.60, with non-GAAP diluted earnings per share rising by 9% to $0.93. Net income attributable to Atleos surged by 50% year-over-year to $45 million, or 4% of revenue, compared to $30 million, or 3% of revenue in the prior year period. The company also reported a 11% year-over-year increase in income from operations to $120 million and a 4% increase in adjusted income from operations to $159 million. Adjusted EBITDA increased by 4% year-over-year to $205 million, with an adjusted EBITDA margin of 18.6%, an expansion of 40 basis points compared to the prior year period.

Price Action
The stock price of NCR Atleos has edged up 0.49% during the latest trading day, has surged 20.46% during the most recent full trading week, and has jumped 10.02% month-to-date.

Post-Earnings Price Action Review
The strategy of buying NCR Atleos (NATL) shares after their revenue raised quarter-over-quarter on the financial report released date and holding for 30 days delivered moderate returns but underperformed the market. The strategy achieved a 33.06% return, while the benchmark returned 44.35%, resulting in an excess return of -11.29%. The strategy's CAGR was 18.22%, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.43, indicating a low-risk approach with steady growth.

CEO Commentary
Tim Oliver, President and Chief Executive Officer, highlighted strong Q2 performance with revenue and profitability at the high end of guidance, driven by ATM outsourcing growth and robust hardware demand. He emphasized strategic momentum, industry-leading service levels, and a strong order book. Oliver reiterated confidence in full-year guidance and underscored Atleos’ services-led strategy to generate more service revenue per machine. The CEO noted progress post-separation, a strengthening balance sheet, and anticipation of increased free cash flow, aligning with a shareholder return and growth-focused redeployment strategy.

Guidance
Atleos reaffirmed its full year 2025 guidance ranges and outlined a two-year $200 million share repurchase program. The company expects to balance cash returns to shareholders, growth investments, and net leverage reduction as it approaches leverage targets. While no specific financial guidance ranges are quantified beyond the reaffirmation, the CEO expressed confidence in continued execution of strategic priorities and momentum into the second half of the year.

Additional News
The company announced a $200 million share repurchase authorization, representing approximately 10% of current market capitalization. This follows strong Q2 performance with revenue and profitability at the high end of guidance, driven by ATM outsourcing services growth initiatives and robust hardware demand. Tim Oliver expressed confidence in continued execution of strategic priorities and momentum into the second half of the year. Atleos has made great progress since separating from its former parent six quarters ago, evidenced by solid financial results, a strengthening balance sheet, and continued successful execution of its services-led strategy. As the company approaches its leverage goals, it plans a redeployment strategy that balances returning cash to shareholders, accretive growth investments, and further reduction in net leverage.