What does NCR Atleos do and what are its main business segments?

What were the key takeaways from NCR Atleos's earnings call?

What is NCR Atleos's gross profit margin?

What factors drove the changes in NCR Atleos's revenue and profit?

What is NCR Atleos's latest dividend and current dividend yield?

What is the market's earnings forecast for NCR Atleos next quarter?

What is the revenue and EPS growth rate for NCR Atleos year over year?

What guidance did NCR Atleos's management provide for the next earnings period?

- **Revenue Resilience**: Core revenue grew 6% despite macro headwinds, with self-service banking segment up 11% to $744 million.
- **Profit Expansion**: Adjusted EBITDA margin expanded 40 bps to 19.5%, driven by higher-margin hardware sales and cost control.
- **Tariff Mitigation**: 2025 tariff impact capped at $25 million; 2026 budget assumes 25% rate, but potential 15% reduction could save $10 million+.
- **Service Growth**: ATM-as-a-Service bookings hit $195 million in Q3, with 37% YoY growth and 40%+ ARR target for 2026.
- **Network Recovery**: Deposit volumes surge 90% YoY, offsetting 15% decline in prepaid card transactions. ARPU for utility deposits at all-time high.

**【CEO Summary Section】**
- **Revenue Growth**: Core top-line growth of 6% driven by hardware revenue and outsourced services, partially offset by lower payroll card transactions. Self-service banking segment revenue grew 11% to $744 million, with hardware deliveries up 25%.
- **Profitability**: Adjusted EBITDA increased 7% to $219 million, with margins expanding 40 basis points to 19.5%. Self-service banking segment EBITDA rose 21% to $196 million, benefiting from higher-margin hardware sales and cost efficiencies.
- **Strategic Initiatives**: ATM-as-a-Service bookings reached $195 million in Q3, with 37% year-over-year growth. AI-driven service optimization tools improved first-time repair rates in North America, set to expand to Europe in Q1 2026.
- **Leverage and Share Repurchases**: Net leverage reduced to 2.99x, targeting 2.8x by year-end. Share repurchases expected to resume in Q4 under a 10b5-1 plan.

**【CFO Financial Commentary】**
- **Financial Highlights**: Non-GAAP EPS of $1.09, up 22% YoY. Free cash flow of $124 million in Q3, supporting full-year guidance for free cash flow conversion above 30% of adjusted EBITDA.
- **Tariff Impact**: $25 million tariff impact in 2025, with 2026 budget assuming a 25% tariff rate (versus current 50%). Gross margin expansion in self-service banking offset higher cash rental costs.
- **Balance Sheet**: Unrestricted cash of $400 million, net debt of $2.5 billion. Interest expense decreased $12 million YoY due to lower rates and refinanced credit facilities.

**【Q&A Key Highlights】**
- **Network Business Challenges**: Prepaid payroll card transactions down 15-16% YoY due to policy changes, but trends stabilized in Q3. Deposit volumes grew 90% YoY, with ARPU for utility deposits at an all-time high.
- **Tariff Outlook**: CFO expects 2026 tariff rate of 25%, but optimistic about potential reductions to 15-18% post-India negotiations. 2025 tariff impact capped at $25 million.
- **Hardware Growth**: Recycler shipments up 60% YoY, driven by improved manufacturing efficiency and customer preference for cash recyclers. Hardware revenue growth expected to continue in 2026.
- **ATM-as-a-Service Momentum**: ARR for ATM-as-a-Service at $268 million, targeting $300 million+ by year-end. Gross margin expanded 700 basis points to 40%, with ARPU of $8,300 per unit.


NCR Atleos Corporation (NATL) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 revenue $1.1B, with 9% SFB growth and 32% AaaS expansion. ARPU of $8,300 in AaaS backlog.
- **Service Excellence**: Customer satisfaction +160bps, AI automating 65% of North America dispatches.
- **Share Buyback**: $200M program announced, targeting 10% of market cap.
- **Financial Strength**: Adjusted EBITDA margin 19%, free cash flow $280M annual target. Net leverage <3x by Q3.
- **Strategic Momentum**: 20% YoY increase in 2025 ATM deliveries, 177M new AaaS TCV.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue of $1.1B, with 9% growth in self-service banking (SFB) driven by 21% hardware sales and 5% services/software growth. ATM as a Service (AaaS) revenue up 32% to $62M, with $177M new total contract value (TCV) and ARPU of $8,300.
- **Service Excellence**: Customer satisfaction scores up 160bps, with AI tools automating 65% of North America dispatches. Installed base leadership extended, with 20% YoY increase in 2025 ATM deliveries.
- **Strategic Initiatives**: $200M share buyback program announced, targeting 10% of current market cap. Focus on simplifying operations, reducing tariffs impact, and expanding network partnerships (e.g., 7-Eleven, ING Spain).
- **Financial Outlook**: Full-year guidance reaffirmed, with Q3 core revenue growth in mid-single digits and adjusted EPS $0.95-$1.10. Free cash flow expected to accelerate in H2.

**【CFO Financial Commentary】**
- **Q2 Results**: GAAP net income $420M, Non-GAAP EPS $0.93 (+9% YoY). SFB EBITDA up 20% to $189M, margin 26% (vs. 23.8% YoY). Network EBITDA $86M (-12% YoY) due to $12M higher vault cash costs.
- **Margins & Cash Flow**: Adjusted EBITDA margin 19%, up 40bps YoY. Free cash flow $11M (Q2), with $280M full-year target (60% in Q4). Net leverage 3.1x, expected <3x by Q3.
- **Tariff Impact**: $5M Q2 impact from India tariffs, potential 50% rate if sustained. Solutions include diversifying manufacturing and hedging.

**【Q&A Key Highlights】**
- **AaaS Sustainability**: Backlog ARPU $9,100, with 105% YoY TCV growth. CFO expects >40% YoY AaaS growth in H2, driven by North America and Europe. 
- **Network Recovery**: Sequential improvement in Q3, with South Africa up 13% YoY and U.S. deposits +170% YoY. Challenges in U.S. cardless payroll and DCC offset by new partners (e.g., Incom).
- **Hardware Strategy**: Vertical integration and scale offset 25% India tariffs. Installed base leadership (500K+ ATMs) positions for recurring services growth.
- **Share Buyback**: 10b5-1 plan to accelerate purchases at lower prices. Management confident in undervaluation relative to peers.


NCR Atleos (NATL)-7 Aug 25-2025 Q2 Earnings call transcript

- **Revenue Resilience**: Core services growth offset hardware timing, with Q1 EBITDA margin up 270bps to 17.9%.
- **Hardware Recovery**: 2025 hardware revenue poised for 8% growth, strongest since 2019, driven by recyclers and refresh cycles.
- **As-a-Service Surge**: ATM-as-a-Service backlog +25% YoY, targeting 40% revenue growth with ARPU up 5% QoQ.
- **Tariff Mitigation**: $34M EBITDA impact expected, 80%+ offset via pricing, supply chain, and productivity.
- **Balance Sheet Strength**: Net leverage 3.2x (down 0.4x YoY), $260-300M free cash flow guidance reaffirmed.


**【CEO Overview】**
- **Revenue Growth**: Q1 revenue was in line with expectations, driven by strategic services growth offsetting non-core revenue declines. Self-Service Banking segment revenue grew 1% YoY, while Network segment revenue was flat due to U.K. transaction declines and Bitcoin business erosion.
- **Margin Expansion**: Adjusted EBITDA margin expanded 270bps to 17.9%, fueled by higher-margin services and cost productivity. Self-Service Banking segment margin rose 320bps to 24.5%.
- **Tariff Mitigation**: Tariffs on imported hardware (90% from India) are expected to impact 2025 EBITDA by ~$34M. Contingency plans include pricing adjustments, supply chain diversification, and productivity savings to offset 80%+ of the impact.
- **Hardware Momentum**: 2025 is shaping up as the strongest hardware year since 2019, with ~8% revenue growth driven by recycler demand and refresh cycles. Q1 hardware revenue was down YoY but skewed to H2 delivery.
- **As-a-Service Growth**: ATM-as-a-Service backlog increased 25% YoY, with ARPU up 5% QoQ to $8,400. The business is targeting 40% YoY revenue growth, with ~70% of 2025 bookings expected in H2.

**【CFO Financial Highlights】**
- **Top Line**: Core revenue of $966M was flat YoY (constant currency), with services/software up 4% and hardware down due to H2 delivery skew.
- **Profitability**: Adjusted EBITDA of $175M grew 9% YoY, driven by services margin expansion. Non-GAAP EPS of $0.64 rose 56% YoY due to lower interest expense and tax rate.
- **Cash Flow**: Q1 free cash outflow of $23M was used to fund H2 hardware deliveries. Expect positive free cash flow in Q2+ and $260-300M for FY25.
- **Balance Sheet**: Net leverage of 3.2x (down 0.4x YoY) is expected to drop below 3.0x by Q3. Debt principal payments of $25M were made in Q1.

**【Q&A Key Takeaways】**
- **Hardware Backlog**: ~$850M of 2025 hardware revenue is already booked, with ~70% in H2. Recycler adoption is accelerating, driving ~$100M of incremental revenue.
- **Network Optimization**: U.S. ATM count declined 2% (pharma closures) but transaction volumes remained stable. 7-Eleven partnership adds 11,000+ new locations for Allpoint network.
- **M&A Strategy**: Pipeline includes $5-100M tuck-in acquisitions to expand network scale, add complementary technologies, and fill Self-Service Banking portfolio gaps.
- **Tariff Sensitivity**: ~$225M of hardware costs are subject to tariffs (15% blended rate). Pricing pass-through and India supply chain diversification are key mitigators.


NCR Atleos Corporation (NATL) Q1 2025 Earnings Call Transcript

- **Record 2024 Performance**: $4.3B revenue, $3.22 EPS, $242M free cash flow. Services drove 400bps margin expansion. 
- **2025 Growth Engine**: ATM as a service ARR +100% to $300M, network deposit txns +240% YoY. 
- **Financial Strength**: 2025 EPS +21-27% to $3.9-4.1, free cash flow $260-300M. 
- **Key Risks**: FX (2% headwind), declining legacy revenue, limited tariff exposure. 
- **Shareholder Return**: Target 3x net leverage by mid-2025, buyback consideration post-leverage reduction. 


**【CEO Summary Section】**
- **2024 Year in Review**: Atleos achieved $4.3 billion in revenue, $3.22 in adjusted EPS, and $242 million in free cash flow, all in line or above targets. Services and software growth (9%) drove margin expansion (400bps YoY) and higher ARPU in ATM as a service. 
- **Strategic Priorities for 2025**: 
  1. **Efficient Growth**: Allocate capital to high-margin service lines (e.g., ATM as a service ARR +100% YoY to $212M). 
  2. **Service-First Culture**: Expand ATM as a service to 40%+ revenue growth in 2025, targeting $300M ARR. 
  3. **Simplicity**: Streamline operations to reduce complexity inherited from legacy NCR. 
- **Network Segment Strength**: Deposit transactions grew 240% YoY, ARPU up 7%, and EBITDA margin at 36% due to transaction volume growth. 

**【CFO Financial Commentary】**
- **2024 Financial Highlights**: 
  - Total revenue: $4.3B (+3% YoY). 
  - Adjusted EBITDA: $781M (+7% YoY), margin 18.1%. 
  - Free cash flow: $242M (+18% YoY). 
- **2025 Outlook**: 
  - Core revenue: +3-6% (constant currency). 
  - Adjusted EBITDA: +7-10% (constant currency). 
  - EPS: $3.9-4.1 (+21-27%). 
  - Free cash flow: $260-300M. 
- **Key Risks**: FX headwinds (2% YoY), declining Voyix-related revenue, and limited exposure to tariffs. 

**【Q&A Key Takeaways】**
- **ATM as a Service Backlog**: Avg. ARPU $10,000 (vs. $12,000+ in backlog), with 2025 ARR target $300M. 
- **Network Rationalization**: Unit count decline (78,000 vs. 80,000) due to pharmacy closures, but transaction volumes remain strong. 
- **Capital Allocation**: Target 3x net leverage by mid-2025, with buyback consideration post-leverage reduction. 
- **Hardware Growth**: Recycler adoption in US, 2025-2027 hardware refresh wave from 2019 installs. 
- **Free Cash Flow**: 2025 guidance $260-300M, with Q1 modestly negative due to working capital. 


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