Financial Data and Key Metrics Changes - First quarter core revenue was $966 million, slightly less than the prior year period on a constant currency basis, in line with expectations [25] - Adjusted EBITDA grew 9% year over year to $175 million, with a margin expansion of 270 basis points to 17.9% [27] - Non-GAAP fully diluted earnings per share increased 56% year over year to $0.64 [27] Business Line Data and Key Metrics Changes - Self-service banking revenue grew 1% year over year to $624 million, driven by a 6% increase in combined software and services revenues [28] - ATM as a Service revenue grew 24% year over year to $57 million, with a 44% increase in unique customer count [30] - Network segment revenue was $299 million, down 4% year over year, with cash withdrawal transactions approximately 3.5% lower than the prior year [33] Market Data and Key Metrics Changes - The company has an installed fleet of approximately 600,000 ATMs, with about 80,000 machines owned and operated in its own network [6] - The Allpoint network signed a partnership with Seven Eleven, adding thousands of locations for cardholders [19] - Cash deposit transactions increased more than 200% year over year, indicating strong growth in this area [33] Company Strategy and Development Direction - The company aims to grow efficiently, develop a service-first culture, and embrace simplicity in operations [12][13][15] - The focus is on generating more revenue from existing machines and enhancing service offerings to financial institutions [7][8] - The company is working on mitigating tariff impacts through pricing actions and supply chain adjustments [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite external uncertainties, with over 70% of revenue coming from recurring services [11] - The company expects to generate positive free cash flow in each of the remaining quarters of 2025 [39] - Full year 2025 guidance includes core revenue growth of 3% to 6% and adjusted EBITDA growth of 7% to 10% [43] Other Important Information - The company is developing plans to mitigate potential costs from tariffs, which could impact profitability [42] - The backlog for ATM as a Service units is up 25% year over year, indicating strong demand [70] - The company is not investing further in the LibertyX business due to regulatory challenges and low profitability [98] Q&A Session Summary Question: Can you provide more color on overall backlog this year relative to last? - Management indicated that this year is expected to be the best hardware year since 2019, with strong demand and a good backlog [50][51] Question: How is leverage informing your view on potential buyback timing? - Management aims to use free cash flow to reduce leverage below three times and is considering share repurchases as a priority [55][56] Question: Can you discuss the amount of hardware impact by the segments? - Most hardware revenue will come through the self-service banking segment, with significant investments in upgrading the existing network fleet [62] Question: What is driving the strength in ATMs as a Service gross profit? - The strength is attributed to a higher number of smaller contracts in North America, which are more profitable due to scalable cost structures [86] Question: What is the game plan for LibertyX? - Management is de-emphasizing LibertyX due to regulatory changes and low profitability, focusing instead on monetizing Bitcoin at the device [98]

Financial Data and Key Metrics Changes - First quarter core revenue was $966 million, slightly less than the prior year period on a constant currency basis, in line with expectations [24] - Adjusted EBITDA grew 9% year over year to $175 million, with a margin expansion of 270 basis points to 17.9% [27] - Non-GAAP fully diluted earnings per share increased 56% year over year to $0.64 [27] Business Line Data and Key Metrics Changes - Self-service banking revenue grew 1% year over year to $624 million, driven by a 6% increase in combined software and services revenues [28] - ATM as a Service revenue grew 24% year over year to $57 million, with a 44% increase in unique customer count [30] - Network segment revenue was $299 million, down 4% year over year, with cash withdrawal transactions approximately 3.5% lower than the prior year [32] Market Data and Key Metrics Changes - The Allpoint cash withdrawals grew modestly, while cash deposits increased more than 200% year over year [32] - Adjusted EBITDA margin for the Network segment was 29%, expanding approximately 150 basis points year over year [32] Company Strategy and Development Direction - The company aims to grow efficiently, develop a service-first culture, and embrace simplicity to enhance operational efficiency [12][14] - The strategy focuses on increasing service revenue opportunities and improving customer trust through sustained excellence [13] - The company is optimistic about expanding its ATM as a Service business, particularly in North America and Europe [30][84] Management's Comments on Operating Environment and Future Outlook - Management noted that over 70% of revenue comes from recurring services, which are resilient in uncertain economic environments [10] - The company expects total core revenue to grow 3% to 6% on a constant currency basis for the full year 2025 [41] - Tariff exposure is primarily related to hardware and parts, with plans to mitigate potential costs [40] Other Important Information - The company reaffirmed its full-year 2025 guidance despite external uncertainties, expecting adjusted EBITDA to grow 7% to 10% [41] - The backlog for ATM as a Service units is up 25% year over year, indicating strong demand [66] Q&A Session Questions and Answers Question: Can you provide more color on overall backlog this year relative to last? - Management indicated that this year is expected to be the best hardware year since 2019, with strong demand and a good backlog [47][48] Question: How is the balance sheet informing your view on potential buyback timing? - The company aims to use free cash flow to reduce leverage below three times, with plans for share repurchases once cash flow stabilizes [52][54] Question: Can you comment on withdrawal transactions in North America versus the rest of the world? - Withdrawal transactions in North America were stable, while the UK experienced a high single-digit decrease [92] Question: What is the game plan for LibertyX? - Management acknowledged that LibertyX has been de-emphasized due to regulatory changes impacting profitability, and they are exploring ways to monetize Bitcoin at the device [95] Question: Are there any M&A opportunities being cultivated? - The company has a long list of potential M&A ideas, focusing on low-cost opportunities to enhance its fleet and technology [98]

Q1 2025 Financial Performance - Core revenue reached $966 million, a decrease of 2% year-over-year, or 1% on a constant currency basis[47] - Core recurring revenue was $729 million, up 1% year-over-year in constant currency[49] - Adjusted EBITDA increased by 9% year-over-year to $175 million, with core Adjusted EBITDA up 11% year-over-year[51, 54] - Adjusted EBITDA margin expanded by 270 bps from Q1 2024 to Q1 2025[21, 54] - Adjusted diluted EPS grew by 56% year-over-year to $064[52, 54] Segment Performance - Self-Service Banking segment revenue decreased by 1%, but increased by 1% in constant currency[47] - Services & Software revenue in Self-Service Banking grew by 4%, or 6% in constant currency[47] - ATM as a Service (ATMaaS) revenue increased by 24% year-over-year[31, 49] - Network segment revenue decreased by 4%, or 2% in constant currency[47] - Allpoint cash withdrawal transactions increased by 2% year-over-year[41] - Cash deposit transactions increased by 200% year-over-year, reaching an annual run rate of $1 billion in cash deposits[41] Key Strategic Metrics - ATMaaS unique customers increased by 40% year-over-year[31] - Network segment LTM ARPU increased to $16,129[34] Full Year 2025 Outlook - The company reaffirmed its full year 2025 guidance[21] - Core revenue is projected to grow by 3% to 6% in constant currency[78] - Total Adjusted EBITDA is expected to grow by 7% to 10% in constant currency[78] - Adjusted free cash flow is projected to be between $260 million and $300 million[78]

Core Viewpoint - NCR Atleos reported quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, and showing an increase from $0.41 per share a year ago, indicating an earnings surprise of 18.52% [1][2] Financial Performance - The company posted revenues of $980 million for the quarter ended March 2025, which was 2.49% below the Zacks Consensus Estimate and a decrease from $1.05 billion in the same quarter last year [2] - Over the last four quarters, NCR Atleos has surpassed consensus EPS estimates three times but has only topped revenue estimates once [2] Stock Performance - NCR Atleos shares have declined approximately 13.8% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.07 on revenues of $1.08 billion, and for the current fiscal year, it is $4.01 on revenues of $4.32 billion [7] - The trend of estimate revisions for NCR Atleos is mixed, which could change following the recent earnings report [6] Industry Context - The Internet - Software industry, to which NCR Atleos belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - The performance of NCR Atleos may also be influenced by the overall industry outlook [8]

Revenue Performance - First quarter 2025 revenue was $980 million, with 76% ($742 million) coming from recurring revenue streams, compared to $1.05 billion and 73% in the prior year period[6][7]. - Total revenue for the three months ended March 31, 2025, was $980 million, a decrease of 6.7% from $1,050 million in the same period of 2024[19]. - Product revenue decreased to $189 million, down 21.3% from $240 million year-over-year, while service revenue slightly decreased to $791 million from $810 million[19]. - The self-service banking segment generated $624 million in revenue, while the network segment contributed $299 million, reflecting a decline of 1% and 4% respectively year-over-year[9]. Profitability Metrics - GAAP net income for the first quarter was $17 million, a significant improvement from a net loss of $8 million in the prior year[6][7]. - First quarter diluted earnings per share were $0.23 on a GAAP basis, compared to $(0.11) in the prior year, while non-GAAP diluted earnings per share increased 56% to $0.64[6][7]. - Adjusted EBITDA for the first quarter grew 9% year-over-year to $175 million, with an adjusted EBITDA margin of 17.9%, up from 15.2% in the prior year[6][7]. - Total gross profit increased to $235 million, representing a gross margin of 24.0%, compared to 21.0% in the prior year[19]. - Adjusted net income attributable to Atleos was $48 million, with an adjusted diluted earnings per share of $0.64 for the three months ended March 31, 2025[33]. Cash Flow and Financial Position - Adjusted free cash flow-unrestricted for the first quarter was $(23) million, indicating a need for improved cash management strategies[7]. - Cash and cash equivalents decreased to $352 million from $419 million at the end of the previous quarter[21]. - Net cash provided by operating activities was $123 million, down from $148 million in the prior year[23]. - Adjusted free cash flow-unrestricted for Q1 2025 was $(23) million, a decline from $69 million in Q1 2024[38]. Customer Growth and Market Strategy - The number of unique customers for ATM as a Service increased by 40% year-over-year, contributing to a 24% increase in revenue from this segment[6]. - The company is focused on expanding its global installed base of 600,000 ATMs to generate incremental services revenue, emphasizing its growth strategy in self-service banking solutions[3]. Guidance and Future Outlook - The company reaffirmed its full-year 2025 guidance, expecting core revenue growth of 3% to 6% and total revenue growth of 1% to 3%[10]. Historical Comparisons - For Q1 2024, Atleos reported a GAAP net loss of $8 million, resulting in a diluted loss per share of $(0.11)[34]. - Non-GAAP adjusted net income for Q1 2024 was $30 million, with a diluted earnings per share of $0.41, reflecting a significant improvement from the GAAP results[34]. - Adjusted EBITDA for Q1 2024 was $160 million, representing 15.2% of revenue, compared to $175 million or 17.9% of revenue in Q1 2025[37]. - Gross profit for Q1 2024 was $221 million, with a gross profit margin of 21.0%[34].

Market Overview - Markets experienced significant fluctuations in April, primarily influenced by changing trade news, including new tariffs announced by President Trump, which led to a sharp stock reaction [1] - The S&P 500 has seen five consecutive days of gains but remains down over 1% for the month, with investors now focusing on a week filled with corporate earnings and key economic data such as GDP, inflation, and jobs reports [1] Value Investing - In volatile market conditions, value investing is particularly relevant as value stocks, often trading below their true worth, can provide stability [2] - Investing in solid, undervalued companies is suggested as a safer strategy, with specific stocks highlighted for their high earnings yield [3] Earnings Yield Metric - Earnings yield, calculated as annual earnings per share (EPS) divided by market price, is a useful metric for identifying attractively valued stocks [4] - A higher earnings yield indicates undervaluation compared to stocks with lower yields, which are seen as overpriced [4] Stock Screening Criteria - A primary screening criterion for stock selection is an earnings yield greater than 10%, supplemented by estimated EPS growth for the next 12 months being greater than or equal to the S&P 500 [7] - Additional criteria include an average daily volume of at least 100,000 and a current price of $5 or more [8][9] Stock Recommendations - **Equinox Gold Corp. (EQX)**: A Canadian mining company with a projected earnings growth of 355% and 30.4% for 2025 and 2026, respectively, and a Zacks Rank 1 [10][11] - **NCR Atleos Corp (NATL)**: Provides digital banking solutions with an estimated earnings growth of 24.5% and 22.4% for 2025 and 2026, respectively, also holding a Zacks Rank 1 [12][13] - **AerSale Corp (ASLE)**: Offers aviation products and services with projected earnings growth of 289% and 23% for 2025 and 2026, respectively, and a Zacks Rank 1 [14][15] - **Qifu Technology, Inc. (QFIN)**: An AI-driven Credit-Tech platform with expected earnings growth of 22.4% and 12.12% for 2025 and 2026, respectively, and a Zacks Rank 1 [16][17]

Core Viewpoint - NCR Atleos (NATL) has shown a 5.3% increase in stock price over the past four weeks, with a mean price target of $43.20 indicating a potential upside of 59.8% from the current price of $27.04 [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $14.38, where the lowest estimate is $29 (7.3% increase) and the highest is $60 (121.9% increase) [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about NATL's earnings prospects, as indicated by a strong agreement in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, one estimate has increased, leading to a 7.8% rise in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - NATL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13]

Core Viewpoint - NCR Atleos (NATL) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the changing earnings picture that impacts stock prices [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [4]. Company Performance and Outlook - The upgrade indicates an improvement in NCR Atleos' underlying business, with expectations of earnings reaching $4.01 per share for the fiscal year ending December 2025, representing a year-over-year increase of 24.5% [5][8]. - Over the past three months, the Zacks Consensus Estimate for NCR Atleos has increased by 7.8%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of NCR Atleos to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [10].

Financial Data and Key Metrics Changes - 2024 was described as an outstanding year for the company, with solid operational and financial results delivered across four consecutive quarters [6] - The company aims to exit the year with EBITDA margin rates around 20%, indicating a focus on maintaining profitability [24] Business Line Data and Key Metrics Changes - The average revenue per unit (ARPU) in the backlog was noted to have shifted from approximately $12,000-$13,000 to around $10,000, reflecting a change in the mix of units being implemented [9] - By the end of the fourth quarter, the company had 28,000 ATM as a Service units, up from 22,000 in the previous quarter, although short of the 30,000 target set for the year [15] Market Data and Key Metrics Changes - Demand for hardware and as a service offerings is increasing, particularly in India and Western Europe, with the U.S. also showing positive trends [11] - The company has a significant presence in India with over 120,000 machines, indicating a strong market scale [22] Company Strategy and Development Direction - The company is focusing on higher ARPU machines in North America and Europe while also recognizing the potential in the Indian market [21] - There is an ongoing strategy to move customers towards more comprehensive outsourcing services, with 90,000 machines currently described as managed services [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and its ability to deliver financial results that improve sequentially [6] - The recurring revenue performance is tracking close to expectations, although slightly behind initial models, with belief in future growth in service levels [46] Other Important Information - The company plans to exclude certain income and expenses from EBITDA calculations to reduce volatility, which could impact reported figures by $5 million to $10 million per quarter [32] - There is an expectation to find off-balance sheet financing solutions for ATM as a Service hardware in the near future [39] Q&A Session Summary Question: Can you talk about the ARPU in the as a service backlog? - The average ARPU in the backlog has shifted to around $10,000, with some high ARPU units being implemented in the fourth quarter [9] Question: Can you provide a geographic overview of demand trends? - Demand is strong in India, Western Europe, and the U.S. for both hardware and as a service offerings [11] Question: How many ATM as a Service units were there at the end of the quarter? - There were 28,000 units at the end of the fourth quarter, up from 22,000 in the previous quarter [15] Question: What is the outlook for gross profit margins in 2025? - The company expects variability in gross profit margins due to seasonality, with a target of around 20% EBITDA margin [24] Question: Can you comment on the change in EBITDA calculation? - The new EBITDA calculation will exclude certain income and expenses to reduce volatility, particularly from pension and FX impacts [32] Question: Is there a plan for a buyback program? - The company is considering a buyback plan, especially in light of current stock trading levels and investor preferences [44] Question: What is the outlook for free cash flow targets? - Free cash flow growth is not expected to be linear, with some recent tax breaks and accrued costs impacting the current quarter [51]

Fourth Quarter and Full Year 2024 Earnings Call Tim Oliver, President & Chief Executive Officer Andy Wamser, Chief Financial Officer Stuart Mackinnon, Chief Operating Officer 1 FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the "Act"). ...