NCR Atleos 2025 Q1 Earnings Profitability Rebounds with 300% Net Income Surge

NCR Atleos (NATL) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company demonstrated a significant turnaround by returning to profitability with an EPS of $0.23, reversing a previous loss of $0.11 per share in Q1 2024. The net income of $16 million marked a 300.0% positive swing from the net loss of $8 million in the same period last year. Despite the revenue decline, NCR Atleos maintained its annual guidance, forecasting core revenue growth of 3% to 6% and total revenue growth of 1% to 3% on a constant currency basis.

Revenue

NCR Atleos saw its total revenue decline by 6.7% to $980 million in Q1 2025, compared to $1.05 billion in the same quarter of the previous year. The Self-Service Banking segment generated $624 million, while the Network segment contributed $299 million. Telecommunications & Technology (T&T) added $43 million, and other revenue amounted to $14 million. Consolidated revenue reached $980 million.

Earnings/Net Income

NCR Atleos returned to profitability with an EPS of $0.23 in Q1 2025, reversing a loss of $0.11 per share in Q1 2024, which translates to a 309.1% positive change. The net income reached $16 million, a 300.0% improvement from a net loss of $8 million in the previous year. This improvement in EPS indicates a strong recovery for the company.

Post-Earnings Price Action Review

The strategy of buying NCR Atleos shares following a quarter-over-quarter revenue drop and holding for 30 days has yielded mixed results over the past five years. While there have been brief periods of positive returns, the overall trend has been negative. The immediate market reaction to declining revenue often leads to a sell-off, resulting in initial negative returns. The short-term volatility within the 30-day holding period frequently leads to further declines, driven by negative sentiment regarding the company's financial health. Although there have been occasional recoveries in the stock price, these have generally not been sufficient to offset the initial losses. Market sentiment, along with industry trends, heavily influences the performance of NATL shares. During periods of negative sentiment, the stock tends to continue its decline, making it challenging for the strategy to deliver positive returns. Overall, buying NATL shares after a revenue drop and holding for 30 days has largely resulted in negative outcomes.

CEO Commentary

“The first quarter represented a good start to 2025 for Atleos. We posted financial results that were either in line with or above our expectations despite the macroeconomic disruptions and the follow-on effects,” said Tim Oliver, President and Chief Executive Officer. “Our early execution, coupled with diligent contingency planning, has us on track to meet our objectives for the year despite the uncertain global economic environment caused by the proposed tariffs and their follow-on effects. Steady and continuous operational improvement, reinvigorated product innovation efforts, and a return to leading customer service levels have all affirmed our leading position in self-service banking solutions.”

Guidance

“We continue to believe that our original annual guidance ranges are appropriate,” Mr. Oliver stated. The company projects core revenue growth of 3% to 6% in constant currency, with total revenue guidance of 1% to 3% growth on a constant currency basis, despite an estimated foreign exchange impact of -2%.

Additional News

NCR Atleos recently announced the appointment of Traci Hornfeck as Chief Accounting Officer, enhancing its leadership team. This change is part of the company's strategy to strengthen financial management and bolster its accounting functions. Additionally, the company has been recognized as a Most Loved Workplace, demonstrating its commitment to fostering a positive work environment. This accolade reflects NCR Atleos' focus on employee satisfaction and engagement, which are critical to its operational success. Moreover, NCR Atleos has expanded its collaboration with FCTI, increasing access to self-service banking for millions of cardholders at 7-Eleven stores. This partnership aligns with Atleos' strategic goal to enhance its presence in the self-service banking industry and improve accessibility for consumers.