NCR Voyix: Riding the Recurring Revenue Wave in 2025

The tech world is buzzing with companies pivoting toward recurring revenue models, and NCR Voyix (NYSE: FIVN) is no exception. While the company’s total revenue dipped 13% in Q1 2025, the real story lies beneath the surface: a strategic shift toward software, services, and platform adoption that could redefine its future. Let’s break down why investors should take notice—and where the risks remain.

The Numbers That Matter: Recurring Revenue Surges

NCR Voyix isn’t just surviving—it’s thriving in the recurring revenue game. Here’s the proof:
- Annual Recurring Revenue (ARR): Soared to $1.62 billion as of Q1 2025, up from $1.58 billion in 2024.
- Software ARR: Jumped to $775 million from $740 million, driven by SaaS, payments, and maintenance contracts.
- Platform Sites: Now at 77,000 locations, a 27% year-over-year surge, signaling explosive adoption of its retail and restaurant platforms.

These metrics aren’t just stats—they’re the lifeblood of a subscription-based future. With software and services revenue projected to hit $2.02 billion in 2025, up from $1.91 billion in 2024, NCR is betting big on recurring revenue as its growth engine.

Strategic Moves to Watch

1. Hardware to Software Transition:
   NCR is ditching the hardware hustle. By partnering with Ennoconn to shift to a net commission revenue model, it’s sidelining low-margin hardware sales for high-margin software and services. This isn’t just a pivot—it’s a lifeline.

2. Leadership & Innovation:
   The appointment of Nick East as Chief Product Officer sends a clear signal: NCR is doubling down on product innovation. With his focus, expect enhancements to its platform ecosystem, not just new platforms.

3. Customer Land Grab:
   CEO James G. Kelly highlighted new retail and restaurant clients and expanded relationships with existing ones. These wins aren’t flukes—they’re fuel for recurring revenue streams.

The Elephant in the Room: Risks and Realities

• Revenue Decline: Total revenue dropped to $617 million in Q1, hit hardest by a $58 million plunge in hardware sales. This isn’t a death knell—yet. But investors must ensure the shift to software isn’t leaving a cash hole.
• Tariffs and Trade: U.S. trade tariffs could squeeze margins on hardware, though NCR insists mitigation efforts are underway.
• Market Saturation: With 77,000 platform sites already deployed, can growth sustain? Competitors like Oracle and SAP loom large.

Why This Matters for Investors

NCR’s strategy is textbook Cramer: bet on the trend, not the fad. Recurring revenue models are the future of tech. Look at companies like Adobe or Microsoft—they’ve built empires on subscriptions. NCR’s 27% platform site growth and $775 million software ARR are ticking boxes in that playbook.

Plus, the company’s $573 million cash reserves and aggressive $200 million share buyback program show confidence. Even with the revenue dip, Adjusted EBITDA margins held steady at 16.3–16.8%, proving the model’s profitability.

Final Take: NCR Voyix is Worth the Ride

Here’s why investors should board this train:
1. ARR Growth: The $40 million jump in software ARR isn’t fluff—it’s recurring gold.
2. Platform Penetration: 77,000 sites is a beachhead, not a typo. With 7% growth in payment sites, the ecosystem is expanding.
3. Balance Sheet Strength: Cash and buybacks mean NCR isn’t playing with house money—it’s betting its own chips.

Sure, the revenue drop and trade risks are red flags. But in a world where software rules, NCR’s pivot isn’t just smart—it’s necessary. If you’re in for the long haul, this could be a Buy at current prices. Just keep an eye on those tariffs and the competition.

Final Verdict: NCR Voyix is steering toward a recurring revenue future—investors who hop aboard now might just catch the next wave.