Navigating Contradictions: Insights from 2025 Q1 Earnings Call on Hardware Revenue, Regional Trends, and ATM-as-a-Service Delays

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Strong Financial Performance:
- Atleos reported core revenue of $966 million for Q1 2025, in line with the prior year period on a constant currency basis.
- The growth was driven by solid performance in the Self-Service Banking segment and a healthy 4% year-over-year growth in core services and software businesses.

Hardware Demand and Revenue:
- The Self-Service Banking segment is expected to report 8% revenue growth for hardware in 2025, despite hardware revenue being slightly down in Q1.
- This trend is supported by a strong replacement cycle and competitive product offerings, particularly in the recyclers segment.

ATM-as-a-Service Expansion:
- Revenue from ATM-as-a-Service rose 24% year-over-year to $57 million in Q1 2025.
- This growth is attributed to new customer additions and an increasing number of unique customers, with a 44% increase in count from the prior year.

Network Business Stability:
- Despite a decline in LibertyX Bitcoin transaction revenue, the Network segment maintained reported revenue of $299 million for Q1 2025.
- Revenue from cash withdrawals and deposits increased, and adjusted EBITDA margin expanded by over 150 basis points year-over-year, indicating stable performance despite regulatory challenges.