- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NATL

NATL fundamentals

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