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]

ATLANTA, May 7, 2025 - NCR Atleos Corporation (NYSE: NATL) ("Atleos") reported financial results today for the three months ended March 31, 2025. First quarter results and other recent highlights include: "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. Our performance was uniformly strong across sales, operations, product innovation, and our k ...

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]

NCR Atleos (NATL) closed the last trading session at $27.04, gaining 5.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $43.20 indicates a 59.8% upside potential.The mean estimate comprises five short-term price targets with a standard deviation of $14.38. While the lowest estimate of $29 indicates a 7.3% increase from the current price level, the most optimistic analyst expects ...

Investors might want to bet on NCR Atleos (NATL) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changi ...

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"). ...

Core Insights - NCR Atleos reported quarterly earnings of $1.11 per share, exceeding the Zacks Consensus Estimate of $1.06 per share, and showing a significant increase from $0.69 per share a year ago, resulting in an earnings surprise of 4.72% [1] - The company posted revenues of $1.11 billion for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.18%, and compared to year-ago revenues of $1.1 billion [2] - NCR Atleos shares have underperformed the market, losing about 16.2% since the beginning of the year, while the S&P 500 has gained 1.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $1.04 billion, and for the current fiscal year, it is $3.68 on revenues of $4.37 billion [7] - The estimate revisions trend for NCR Atleos is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which NCR Atleos belongs, is currently in the top 34% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, DocuSign, is expected to report quarterly earnings of $0.84 per share, reflecting a year-over-year change of +10.5%, with revenues anticipated to be $759.96 million, up 6.7% from the previous year [9][10]

Company Overview - NCR Atleos Corporation completed its separation from NCR Corporation on October 16, 2023, launching as an independent publicly-traded company[14]. - The company operates approximately 78,000 self-service banking terminal locations, including the Allpoint network, which is the largest retail surcharge-free independent network of ATMs in the U.S.[19]. - The company serves banks and credit unions in over 140 countries, with a significant presence in retail channels through long-term contracts with major merchants[35]. Revenue Generation and Business Model - The company generates diversified and largely recurring revenues across contracted software, services, and predictable transactional revenue streams, with a focus on increasing transaction levels at existing locations[23]. - The ATM as a Service (ATMaaS) model is expected to double recurring revenue compared to traditional ATM hardware and maintenance contracts, expanding the total addressable market[27]. - As of December 31, 2024, the company has ATM networks in 12 countries and generated 55% of its revenue outside the United States in 2024[27]. - The company aims to execute its ATM as a Service strategy to enhance software and services revenue, as well as recurring revenue[93]. - The company derives a significant portion of its revenues from ATM transaction fees, which could decline due to reduced ATM usage or competitive pricing pressures[102]. Strategic Initiatives and Growth Plans - The company aims to invest in international expansion, particularly in high cash jurisdictions like Italy and other EU countries[27]. - NCR Atleos intends to pursue strategic acquisitions to complement and accelerate its organic growth strategies[27]. - The company plans to grow the Allpoint network to drive high-margin incremental transaction volumes as banks reduce physical footprints[27]. - Atleos aims to expand its customer base by increasing the use of indirect sales channels and targeting the small- to medium-business market[86]. Innovation and Technology - The company is transitioning to software-led solutions, with a cloud-based software platform that integrates with customer systems, enhancing recurring revenue opportunities[21]. - Atleos is investing in data analytics to better understand ATM usage patterns and identify growth opportunities[25]. - Research and development expenses were $66 million in 2024, $77 million in 2023, and $64 million in 2022, indicating a focus on innovation and maintaining competitive position[37]. Employee and Talent Management - As of December 31, 2024, Atleos had approximately 20,000 employees globally, with 40% in Europe, Middle East and Africa, 26% in Asia Pacific, 17% in the Americas (excluding the U.S.), and 17% in the U.S.[61]. - Atleos established a university hiring program, welcoming 200 intern and graduate hires in its inaugural year[65]. - The company has launched training and development resources via LinkedIn Learning and NCRA U, enhancing employee engagement and skill development[65]. - Atleos is focused on expanding internal talent development programs to enhance employee engagement and retention[65]. Risk Management and Compliance - The Chief Risk Officer oversees enterprise risk management programs, ensuring effective identification and response to material risks[50]. - Atleos closely monitors the evolving regulatory environment, which could lead to changes in its business operations, particularly in the virtual currency space[66]. - The company is subject to various government regulations, including those related to environmental protection and anti-corruption laws, which may impact its operations[64]. - Atleos must comply with Section 404 of the Sarbanes-Oxley Act by December 31, 2024, to ensure the reliability of its financial statements, or risk a decline in stock price[172]. Financial Position and Debt - Atleos has approximately $2,994 million of outstanding indebtedness and an additional $350 million available under a senior secured revolving credit facility[128]. - The underfunded status of the U.S. pension plan was $279 million as of December 31, 2024, while the non-U.S. pension plans had a funded position of $162 million[145]. - The company plans to use debt and other financing sources to maintain and grow its business, but future access to financing is uncertain[139]. Environmental and Social Responsibility - The company is committed to environmental management, utilizing remote sensing technology to reduce maintenance visits and carbon footprint[57]. - Atleos emphasizes supplier responsibility, requiring compliance with ethical standards and environmental regulations from its suppliers[59]. - Climate change poses long-term risks to business continuity, with potential impacts from extreme weather events affecting operations in vulnerable regions[119]. Cybersecurity and Data Protection - Atleos has established an Enterprise Risk Management (ERM) program to manage cybersecurity risks alongside other business risks[199]. - The company employs various cybersecurity measures, including firewalls and encryption, to protect against cyberattacks[200]. - Data protection and cybersecurity issues are significant risks, with potential breaches leading to reputational harm and financial losses[123]. Market and Competitive Landscape - Atleos faces intense competition in the technology industry from major players like Visa, Mastercard, and Fiserv, which may affect market share and profitability[88]. - The company is exposed to risks from domestic and global economic conditions, which could adversely affect its financial performance[82]. - Recent bank failures in 2023 and 2024 have created uncertainty in the banking industry, potentially affecting sales and business operations[98].