Company Overview - Diebold Nixdorf is a leader in transforming banking and shopping experiences, providing integrated solutions that connect digital and physical channels for consumers [3] - The company partners with the majority of the world's top 100 financial institutions and top 25 global retailers, operating in over 100 countries with approximately 21,000 employees [3] Upcoming Event - Octavio Marquez, president and CEO, along with Tom Timko, executive vice president and CFO, will participate in a fireside chat at the Goldman Sachs Communacopia and Technology Conference on September 10, 2025, at 9:30 a.m. ET [1] - The event will be accessible via webcast on Diebold Nixdorf's Investor Relations website, with a replay available after the event [2]

Core Insights - Diebold Nixdorf has selected Oracle Fusion Cloud Service and Oracle Fusion Cloud Field Service to optimize its global service operations, leveraging AI to enhance efficiency and customer satisfaction [1][2][3] Company Overview - Diebold Nixdorf is a leading provider of services, software, hardware, and security for top financial institutions and retailers globally, aiming to unify and automate its service processes to meet the needs of its expanding customer base [2][6] - The company operates in over 100 countries and employs approximately 21,000 people, connecting digital and physical channels for millions of consumers daily [6] Technology Implementation - The integration of Oracle Cloud Service and Oracle Cloud Field Service is expected to automate complex service workflows, enable predictive maintenance, and improve the scheduling and routing of mobile workers [3][4] - With embedded AI, the new cloud applications will help manage millions of service tickets annually, leading to faster resolution times and reduced operational costs [3][4] Strategic Partnership - Diebold Nixdorf has been collaborating with Oracle since March 2024, building on previous successes in streamlining finance and HR processes with Oracle Fusion Applications [5][3] - The partnership aims to create a more efficient service delivery framework, standardizing processes and optimizing field operations through the latest AI innovations [4][3]

Core Insights - Diebold Nixdorf is launching its new Branch Automation Solutions portfolio aimed at enhancing efficiency for financial institutions while providing a seamless omnichannel consumer experience [1][2] - The solutions are designed to optimize operations, reduce costs, and improve customer engagement in a digital banking environment [2][3] Product Features - The Branch Automation Solutions include managed services that leverage Diebold Nixdorf's software on a cloud-native platform, addressing the need for increased automation in branch networks and cash management [1][4] - The solutions feature four operational domains that are pre-packaged and easy to deploy, allowing financial institutions to select and scale services according to their evolving needs [4][6] Market Positioning - Joe Myers, Executive Vice President at Diebold Nixdorf, emphasized the company's commitment to delivering integrated solutions that enhance efficiency and customer value, positioning the company as a partner of choice in the financial services sector [5][6] - The Branch Automation Solutions aim to transform traditional branches into advisory-led service hubs, enhancing customer relationships and driving profitability [3][5] Event Showcase - The Branch Automation Solutions will be showcased at Intersect Nashville, a premier financial industry client event taking place from August 25-27, 2025 [1][6] Operational Benefits - The solutions set a benchmark for uptime and security across ATM and teller cash recycling fleets, improving user experience and trust [7] - Integrated cash management features allow for optimized cassette configuration and improved cash-handling services, leading to measurable cost savings [7] - The platform enables migration of up to 80% of traditional teller transactions to ATMs, simplifying operations and increasing staff productivity [7]

Core Insights - EDEKA Paschmann is the first supermarket in Germany to implement Diebold Nixdorf's Vynamic® Smart Vision I Shrink Reduction solution at self-service checkouts, aimed at reducing errors and losses in transactions [1][2] - The AI-enabled technology provides real-time analysis of customer behavior, helping to identify missed scans or incorrect operations, thereby enhancing the checkout experience [2][3] - The Vynamic® Smart Vision I Age Verification solution allows for automated age verification for restricted products, freeing up staff for other customer service tasks [3][4] Technology Implementation - The Vynamic Smart Vision I Shrink Reduction uses cameras to monitor customer activities at self-service checkouts, providing immediate feedback to customers on scanning errors [2] - The system minimizes the need for employee intervention, only alerting staff for significant errors, thus streamlining the checkout process [2][5] - Both solutions are designed to be GDPR-compliant, ensuring no facial recognition or storage of customer images [4] Company Statements - Falk Paschmann, managing director of EDEKA Paschmann, emphasized the importance of customer well-being and the goal of enhancing the shopping experience through advanced technology [5] - Leyla Feghhi, head of Retail Sales in the DACH region at Diebold Nixdorf, highlighted that the technology addresses over 20 common causes of shrink, improving employee response to customer interactions [5] Future Plans - EDEKA Paschmann plans to adopt additional Diebold Nixdorf technology, specifically the Vynamic® Smart Vision | Fresh Produce Recognition for automatic identification of fruits and vegetables [5] Company Background - EDEKA Paschmann operates 11 stores with a total sales area exceeding 20,000 m² and employs over 900 staff, being part of the larger EDEKA Group [6] - Diebold Nixdorf is a global leader in automating and digitizing banking and shopping experiences, serving top financial institutions and retailers worldwide [7][8]

Core Insights - Diebold Nixdorf is participating as one of 70 contributors in the European Central Bank's innovation platform to explore digital euro payment functionalities and use cases [1][2] - The digital euro aims to be a universally accepted form of digital cash in the European Union, complementing existing payment methods [2] - Diebold Nixdorf's Vynamic® Transaction Middleware will integrate with digital euro interfaces, allowing banks to support new services efficiently [3][4] Company Involvement - Diebold Nixdorf is collaborating with the ECB to enhance the digital euro ecosystem, benefiting both banks and customers [2][4] - The company aims to assist banking customers in offering the digital euro as a new payment method in the future [4] - Diebold Nixdorf has a global presence, serving top financial institutions and retailers, and employs approximately 21,000 people worldwide [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ Form 10-Q __________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-4879 ___________________________________ ...

Financial Data and Key Metrics Changes - The company reported a strong second quarter with product orders growing 10% year over year, reaching the highest level in three years [6] - Gross margins expanded by 50 basis points year over year and 120 basis points sequentially, driven by a favorable product mix and pricing discipline [7][22] - The company generated $13 million of free cash flow in Q2, marking the third consecutive quarter of positive free cash flow and the first time in the company's history for positive cash flow in the first half of the year [25][26] Business Line Data and Key Metrics Changes - In Banking, revenue increased by $50 million sequentially, with gross margin up 140 basis points year over year and 180 basis points sequentially, supported by favorable geographic mix and disciplined pricing [27] - In Retail, there was sequential growth in order entry, revenue, and backlog in Q2, although gross margin decreased by 70 basis points sequentially and 190 basis points year over year [28] Market Data and Key Metrics Changes - The company operates in a CHF 32 billion banking and retail automation market, with strong demand for advanced ATMs and AI-driven checkout solutions [9][10] - The North American market is showing promising growth, with a targeted pipeline of key accounts and increasing traction for AI-enabled solutions [44][47] Company Strategy and Development Direction - The company is focused on capitalizing on market opportunities through a three-year growth plan, emphasizing branch automation and AI-driven solutions [8][10] - The strategy includes local manufacturing to enhance competitiveness and service capabilities, particularly in the North American and Indian markets [14][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong operational performance in the second half of the year, supported by a robust backlog and positive market demand [6][20] - The company anticipates continued improvement in retail margins and revenue growth in Q3 and Q4, driven by a recovery in the retail business [29][60] Other Important Information - The company repurchased $30 million of shares during the quarter, reflecting a commitment to returning capital to shareholders [7][33] - The company maintains a strong balance sheet with approximately $620 million of liquidity and a net leverage ratio of 1.5x [33] Q&A Session Summary Question: Can you expand on the confidence regarding retail business inflection in the second half of the year? - Management noted a higher mix of point of sale revenue impacting margins but expressed optimism about recovery in retail, particularly with significant backlog wins expected to convert into sales [42][43] Question: What is the current status of Teller Cash Recyclers (TCR) adoption? - Management indicated that they are in the third or fourth inning of TCR adoption, with significant orders received and a strong value proposition for banks [51][53] Question: Can you discuss the opportunity in the Indian market? - The company is reentering the Indian market with compact, energy-efficient ATMs, aiming to grow its installed base and service annuity [57] Question: What are the expectations for retail and product gross margins in the second half? - Management expects improvements in retail margins and revenue growth in Q3 and Q4, driven by ongoing projects and market recovery [59][60] Question: How are tariffs impacting the company? - Management provided an updated estimate of tariff impacts, indicating successful mitigation strategies that have reduced expected costs significantly [61][66]

Financial Data and Key Metrics Changes - The company generated positive free cash flow for the third consecutive quarter, achieving $13 million in Q2, marking the first time in its history for positive cash flow in the first half of the year [26][20] - Gross margins expanded by 50 basis points year over year and 120 basis points sequentially, driven by a favorable product mix and pricing discipline [7][22] - Adjusted EBITDA for Q2 was $111 million, with a sequential margin growth of 180 basis points [25][21] Business Line Data and Key Metrics Changes - In Banking, revenue increased by $50 million sequentially, with gross margin up 140 basis points year over year and 180 basis points sequentially [27][28] - Retail saw sequential growth in order entry, revenue, and backlog in Q2, although gross margin decreased by 70 basis points sequentially and 190 basis points year over year [29][30] - The company reported a product backlog of approximately $980 million at the end of Q2, up from $900 million at the end of Q1, with a 10% year-over-year growth in product orders [21][6] Market Data and Key Metrics Changes - The company is capitalizing on the $32 billion banking and retail automation market, with strong demand for advanced ATMs and AI-driven checkout solutions [9][10] - In the Middle East, the introduction of dual power ATMs has opened new customer opportunities, while in India, compact and energy-efficient ATMs are expected to drive growth [11][12][56] Company Strategy and Development Direction - The company is focused on a three-year growth plan, emphasizing disciplined growth and profitability through branch automation and AI-driven solutions [8][9] - The strategy includes local manufacturing to enhance service capabilities and reduce costs, particularly in North America and India [14][56] - The company aims to maintain a strong balance sheet while targeting nearly doubling free cash flow generation by 2027 [34][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the higher end of revenue, adjusted EBITDA, and free cash flow guidance for the year, supported by strong demand and backlog [31][33] - The company anticipates a recovery in the retail business in the second half of the year, driven by ongoing projects and a growing pipeline in North America [30][38] - Management highlighted the importance of continuous improvement and lean operations to enhance productivity and customer satisfaction [16][18] Other Important Information - The company repurchased $30 million worth of shares during the quarter, reflecting its commitment to returning capital to shareholders [7][34] - The effective non-GAAP tax rate for the year is expected to be in the range of 40% to 45%, with a long-term goal of reducing it to the low to mid-30s by 2027 [32][75] Q&A Session Summary Question: Confidence in retail business recovery - Management noted a higher mix of point of sale revenue impacting margins but expressed optimism about sequential improvements in revenue and operating profit [43][44] Question: Teller Cash Recyclers (TCR) adoption rates - Management indicated that they are in the third or fourth inning of TCR adoption, with significant opportunities for cross-selling between ATMs and teller services [50][53] Question: Indian market opportunities - The company is confident in achieving similar margins for compact ATMs in India, with a focus on growing the installed base and service annuity [56][57] Question: Retail and product gross margin expectations - Management expects improvements in retail margins in Q3 and Q4, driven by growth efforts and new software features [58][59] Question: Impact of tariffs on costs - Management clarified that the reduction in tariff impact is due to localized manufacturing and operational efficiencies [62][64]

Core Viewpoint - Diebold Nixdorf, Incorporated reported quarterly earnings of $0.6 per share, missing the consensus estimate of $0.61 per share, and showing a decline from $1.16 per share a year ago, indicating a negative earnings surprise of -1.64% [1] Financial Performance - The company posted revenues of $915.2 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.28%, but down from $939.7 million year-over-year [2] - Over the last four quarters, Diebold Nixdorf has not surpassed consensus EPS estimates, although it has topped revenue estimates twice [2] Stock Performance - Diebold Nixdorf shares have increased approximately 30.6% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] Future Outlook - The company's earnings outlook will be crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.05 on revenues of $986.8 million, and for the current fiscal year, it is $3.57 on revenues of $3.81 billion [7] Industry Context - The Internet - Software industry, to which Diebold Nixdorf belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance & Strategy - The company generated positive free cash flow of $13 million in 2Q25 and $19 million in 1H25, maintaining a strong balance sheet with a net leverage ratio of 1.5x[10] - Backlog increased to approximately $980 million, supported by strong order entry growth of approximately 10% year-over-year[10] - The company is executing on an initial $100 million share repurchase authorization, with approximately $30 million repurchased in 2Q25, representing approximately 637,000 shares[10] - The company reaffirms its 2025 outlook and is trending toward the higher end of the range[10] - The company is targeting mid-single digit annual revenue growth rate by 2027, double-digit Adjusted EBITDA growth & ~15% margins by 2027, and plan to deliver $800 million in cumulative FCF from '25-27 and 60%+ FCF conversion in 2027[16] Segment Performance - Banking revenue increased sequentially, with total banking revenue reported as $679 million[45] - Banking gross profit increased sequentially, with total banking gross profit reported as $187 million, resulting in a gross margin of 27.5%[45,47] - Retail revenue increased sequentially, with total retail revenue reported as $236 million[51] - Retail gross profit increased sequentially, with total retail gross profit reported as $56 million, resulting in a gross margin of 23.7%[51,53] 2025 Guidance - The company reaffirms its 2025 guidance, expecting flat to low single-digit revenue growth, adjusted EBITDA between $470 million and $490 million, and free cash flow between $190 million and $210 million[56]