NCR Atleos Q2 2025: Unpacking Contradictions in ATM-as-a-Service Growth, Profitability, and Capital Allocation

ATM-as-a-Service growth and backlog, ATM as a Service revenue and unit growth, profitability and financial model, capital allocation and shareholder returns, and network business growth drivers are the key contradictions discussed in NCR Atleos' latest 2025Q2 earnings call.



Financial Performance and Growth:
- NCR Atleos reported revenue of $1.1 billion in Q2, with core top-line growth on pace with plan, driven by traditional hardware sales and ATM as a Service bookings.
- Profitability ramped positively, with adjusted EBITDA up 4% year-over-year, partly due to profitable growth in services and higher margin hardware sales.

ATM as a Service Expansion:
- The company's ATM as a Service revenue grew 32% year-over-year to $62 million in Q2, led by 25% growth in unique customers and a favorable mix shift to high margin geographies.
- This growth was driven by strong demand from enterprise-level customers and geographic expansion into new regions like Spain.

Self-Service Banking Segment Strength:
- Revenue in the self-service banking segment increased 9% year-over-year, reaching a new quarterly high of $733 million, mainly due to 21% growth in hardware deliveries and 5% combined growth in services and software.
- The segment's adjusted EBITDA grew 20% year-over-year, with margins expanding by 240 basis points, thanks to higher hardware demand and service growth.

Network Segment Challenges and Opportunities:
- The Network segment saw a 2% year-over-year decline in revenue to $320 million, impacted by lower cash withdrawals, fewer international travelers, and changes in government policies.
- Despite this, the segment showed strength in new transaction types like cash deposits and partnerships, with plans to mitigate these challenges through partnerships and transaction expansion efforts.