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].

Financial Performance - Fourth quarter 2024 revenue was $1.1 billion, a 1% increase year-over-year, with core business revenue growing by 4%[4] - Full year 2024 revenue reached $4.3 billion, up 3% from the previous year, with recurring revenue of $3.1 billion growing by 5%[4] - Fourth quarter GAAP fully diluted earnings per share (EPS) was $0.61, a 126% increase, while Non-GAAP fully diluted EPS was $1.11, growing by 73%[4] - Adjusted EBITDA for the fourth quarter was $219 million, a 23% increase compared to the prior year, with a total adjusted EBITDA of $781 million for the full year, up 7%[5] - The company reported a fourth quarter net income of $46 million on a GAAP basis, a 128% increase compared to a net loss of $165 million in the prior year[5] - Full year 2025 guidance includes total revenue growth of 1% to 3% and Non-GAAP diluted EPS growth of 21% to 27%[12] - Total revenue for Q4 2024 was $1,108 million, a slight increase from $1,098 million in Q4 2023, while total revenue for the full year 2024 reached $4,317 million, up from $4,191 million in 2023[27] - Adjusted gross profit for Q4 2024 was $297 million, representing a gross margin of 26.8%, compared to 18.0% in Q4 2023; for the full year, adjusted gross profit was $1,033 million with a margin of 23.9%[27] - Income from operations for Q4 2024 was $151 million, significantly higher than $35 million in Q4 2023, with an operating margin of 13.6% compared to 3.2% in the prior year[27] - Net income attributable to Atleos for Q4 2024 was $46 million, a recovery from a loss of $165 million in Q4 2023; full year net income was $91 million compared to a loss of $134 million in 2023[27] - Basic earnings per share for Q4 2024 was $0.63, compared to a loss of $2.34 in Q4 2023; diluted earnings per share was $0.61 versus a loss of $2.34 in the same period[27] - Adjusted net income attributable to Atleos for the twelve months ended December 31, 2024, was $239 million, compared to $91 million in GAAP results[34] Revenue Segments - The Self-Service Banking segment generated $718 million in revenue for Q4 2024, an 8% increase year-over-year, and $2.7 billion for the full year, a 4% increase[7] - The Network segment reported Q4 revenue of $317 million, a 2% decrease year-over-year, but full year revenue increased by 1% to $1.3 billion[7] - Recurring revenue accounted for 71% of total revenue for both the three months ended December 31, 2024, and 2023, with recurring revenue increasing to $790 million from $777 million[32] Cost Management - The company reported a significant reduction in selling, general and administrative expenses, which decreased to $127 million in Q4 2024 from $140 million in Q4 2023[27] - Research and development expenses decreased to $19 million in Q4 2024 from $23 million in Q4 2023, indicating a focus on cost management[27] - The company incurred a loss on extinguishment of debt amounting to $20 million in Q4 2024, consistent with the previous year[27] - Interest expense for Q4 2024 was $72 million, slightly lower than $75 million in Q4 2023, reflecting improved debt management[27] Operational Efficiency - Atleos has approximately 20,000 employees globally, contributing to its operational efficiency and market expansion efforts[14] - The company aims to enhance its ATM solutions platform and improve customer service performance to support growth strategies[1] - The company plans to continue focusing on transformation and restructuring efforts, which contributed $2 million to gross profit in the latest quarter[33] Assets and Liabilities - Total assets decreased to $5,552 million as of December 31, 2024, from $5,715 million as of December 31, 2023[29] - Total liabilities decreased to $5,288 million as of December 31, 2024, from $5,466 million as of December 31, 2023[29] - Cash and cash equivalents increased to $419 million as of December 31, 2024, from $339 million as of December 31, 2023[29] - The company reported net cash provided by operating activities of $80 million for the three months ended December 31, 2024, compared to $8 million in the same period of 2023[31] Non-GAAP Measures - The company emphasized the importance of non-GAAP measures, such as Adjusted EBITDA, to provide a clearer picture of operational performance, which is crucial for investor understanding[20] - Adjusted EBITDA for Q4 2024 was $219 million, representing 19.8% of revenue, compared to $178 million or 16.2% in Q4 2023[38] - The adjusted free cash flow-unrestricted for FY 2024 was $242 million, an increase from $184 million in FY 2023[39] - Total capital expenditures for Q4 2024 were $31 million, down from $47 million in Q4 2023[39] - The company reported a loss on debt extinguishment of $20 million in FY 2024, impacting overall financial performance[38]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: NCR Atleos (NATL) - NCR Atleos currently holds a Momentum Style Score of B, indicating a favorable position in momentum investing [3]. - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4][12]. Price Performance - Over the past week, NATL shares increased by 1.77%, while the Zacks Internet - Software industry rose by 1.89% [7]. - In a longer timeframe, NATL's shares have appreciated by 12% monthly, compared to the industry's 3.37% [7]. - Over the last quarter, NATL shares have risen by 19.67%, and over the past year, they have gained 55.43%, significantly outperforming the S&P 500's increases of 9.93% and 33.15%, respectively [8]. Trading Volume - The average 20-day trading volume for NATL is 478,682 shares, which serves as a bullish indicator when combined with rising stock prices [9]. Earnings Outlook - In the past two months, one earnings estimate for NATL has increased, while none have decreased, raising the consensus estimate from $3.10 to $3.18 [11]. - For the next fiscal year, one estimate has also moved upwards with no downward revisions, indicating positive earnings momentum [11].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Investing in bargain stocks with recent price momentum may be a safer approach [2] Group 2: NCR Atleos (NATL) Stock Analysis - NCR Atleos (NATL) has shown a four-week price change of 12%, indicating growing investor interest [3] - Over the past 12 weeks, NATL's stock gained 19.7%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - NATL has a beta of 1.29, suggesting it moves 29% higher than the market in either direction [4] - NATL has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - NATL is trading at a Price-to-Sales ratio of 0.57, suggesting it is undervalued at 57 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides NATL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens to help identify potential winning stocks based on various investing styles [8]

Core Insights - Three stocks with strong value characteristics and a buy rank are highlighted for investors to consider on December 6 Group 1: NCR Atleos Corporation (NATL) - NCR Atleos Corporation is a financial technology company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 2.6% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 10.85, compared to the industry average of 15.20 [1] - NCR Atleos possesses a Value Score of A [1] Group 2: ScanSource, Inc. (SCSC) - ScanSource, Inc. is a technology distribution company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 8.3% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 15.03, compared to the industry average of 25.36 [2] - ScanSource possesses a Value Score of A [2] Group 3: Unity Bancorp, Inc. (UNTY) - Unity Bancorp, Inc. is a bank holding company for Unity Bank with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 2.6% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 11.35, compared to the industry average of 13.50 [3] - Unity Bancorp possesses a Value Score of B [3]

Financial Data and Key Metrics Changes - The company reported total revenue of $1.1 billion for Q3 2024, with adjusted EBITDA exceeding $200 million and adjusted EPS at $0.89, reflecting strong financial performance [7][29] - Year-to-date free cash flow surpassed $120 million, indicating solid cash generation capabilities [7] - Adjusted EBITDA margin improved to 19.2%, with a sequential margin expansion of 380 basis points from Q1 to Q3 [30] Business Line Data and Key Metrics Changes - Self-service banking revenue grew 3% year-over-year to $677 million, driven by a 23% increase in ATM as a service revenue and strong software revenues [34] - ATM as a service revenue reached $49 million in Q3, marking a 23% year-over-year growth, with live customer count increasing by 46% [38] - The network segment generated revenue of $332 million, up 2% sequentially, with withdrawal volumes increasing by 9% year-over-year [43] Market Data and Key Metrics Changes - The company activated TAP technology on approximately 10,000 machines, generating over 1 million transactions in Q3 [23] - Deposit volumes grew 200% year-over-year, driven by partnerships with key financial institutions [22] - The all-point transactions increased by 14% year-over-year, indicating a growing consumer preference for ATM banking [22] Company Strategy and Development Direction - The company aims to leverage its installed base of 600,000 ATMs to drive higher revenue per machine through enhanced services and transaction volumes [10][12] - A focus on asset-light business models is evident, with increasing demand for outsourcing ATM services from financial institutions [15][20] - The strategy includes a shift towards providing comprehensive solutions rather than just defined products, enhancing customer relationships and service offerings [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing out a successful 2024, with expectations for continued growth in both revenue and profitability [7][14] - The company anticipates a hardware replacement cycle, which could contribute positively to revenue in 2025 and beyond [15][63] - Management highlighted the importance of improving operational efficiencies and cost structures to enhance margins further [81] Other Important Information - The company successfully refinanced its credit facilities, resulting in lower interest expenses and improved cash flow [50][51] - The backlog for ATM as a service is strong, with expectations for continued growth in high-value units [41][70] - The company expects to exit 2024 with a net leverage ratio around 3.3 times, with plans to reduce it further in 2025 [59] Q&A Session Summary Question: What is the outlook for free cash flow in 2025? - Management indicated that free cash flow conversion is expected to improve, with a projected growth rate of 8% to 10% in EBITDA for 2025, suggesting a higher free cash flow number compared to 2024 [56] Question: How is the board considering share repurchases? - The board is focused on reducing debt to below 3 times leverage before considering returning cash to shareholders, likely around mid-2025 [60] Question: Can you discuss the refresh cycle in self-service banking? - Management noted that the refresh cycle is just beginning, with larger orders from major bank customers indicating a shift towards replacing aging machines over the next several years [62] Question: What is the situation with ARPU in ATM as a service? - Management explained that ARPU may appear lower due to the timing of new unit deployments, but they expect it to increase as the backlog consists of higher ARPU regions [66][71] Question: Are there changes in competitive dynamics in APAC? - Management clarified that pricing pressure is primarily in service components rather than hardware, with no significant changes in competitive behavior among major players [72][73] Question: What are the internal targets for ATM as a service revenue? - Management stated that guidance for 2025 will include revenue targets, with current ATM as a service revenue growing at 30% year-to-date [75] Question: How should we view incremental EBITDA margins going forward? - Management indicated that they expect to achieve a margin rate of about 20% by the end of the year, with further improvements anticipated in 2025 [80]

Core Viewpoint - NCR Atleos Corporation is set to discuss its third quarter performance and strategic progress during the earnings call, highlighting key financial results and future outlook [2]. Group 1: Company Overview - The earnings call will feature Tim Oliver, CEO, providing an overview of the third quarter performance and strategic updates, followed by Paul Campbell, CFO, who will review financial results and outlook [2]. Group 2: Financial Reporting - The company will reference non-GAAP financial measures to assess performance, which will be reconciled to GAAP measures in the presentation materials [4].

13 August 2024 | 2:44PM PDT NCR Atleos (NATL): 20 First Take: Revenue, margins and EPS at or above consensus, with ATMaaS strategy continuing to advance We expect investors to have a neutral-to-positive reaction to NCR Atleos' 2Q 2024 earnings release, its second as a standalone public entity, with EBITDA margins and EPS surpassing consensus expectations, revenue coming in line with the Street and the full-year quide reaffirmed for these metrics. Revenue increased 4% y/y and recurring revenue grew 9%, while ...

[PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis of the company's financial performance and condition [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including operations, balance sheets, cash flows, and detailed notes for the specified periods [Condensed Consolidated Statements of Operations (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) This statement outlines the company's revenues, expenses, and net income (loss) for the three months ended March 31, 2024 and 2023 Condensed Consolidated Statements of Operations (Unaudited) (in millions, except per share amounts) | In millions, except per share amounts | 2024 | 2023 | | :------------------------------------ | :--- | :--- | | Product revenue | $240 | $234 | | Service revenue | $810 | $752 | | Total revenue | $1,050 | $986 | | Income from operations | $72 | $66 | | Income (loss) before income taxes | $(4) | $62 | | Net income (loss) attributable to Atleos | $(8) | $36 | | Net income (loss) per share - basic and diluted | $(0.11) | $0.51 | - Total revenue increased by **$64 million (6.5%)** year-over-year, primarily driven by service revenue growth. However, the company reported a net loss of **$8 million** in Q1 2024, a significant decline from a net income of **$36 million** in Q1 2023, largely due to increased interest expense[10](index=10&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) This statement presents the company's net income (loss) and other comprehensive income (loss) components for the specified periods Condensed Consolidated Statements of Comprehensive Income (Unaudited) (in millions) | In millions | 2024 | 2023 | | :---------- | :--- | :--- | | Net income (loss) | $(8) | $37 | | Other comprehensive income (loss): | | Currency translation adjustments gain (loss) | $14 | $27 | | Unrealized gain (loss) on derivatives | $25 | $(11) | | (Gain) loss on derivatives arising during the period | $(21) | $(15) | | Less income tax benefit (expense) | $0 | $6 | | Other comprehensive income (loss) | $18 | $7 | | Total comprehensive income (loss) | $10 | $44 | | Comprehensive income (loss) attributable to Atleos common stockholders | $9 | $44 | - Total comprehensive income decreased significantly from **$44 million** in Q1 2023 to **$10 million** in Q1 2024, primarily due to the net loss and a reduction in currency translation adjustments, despite a positive shift in unrealized gains on derivatives[12](index=12&type=chunk) [Condensed Consolidated Balance Sheets (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) This statement provides a snapshot of the company's assets, liabilities, and equity at March 31, 2024, and December 31, 2023 Condensed Consolidated Balance Sheets (Unaudited) (in millions) | In millions | March 31, 2024 | December 31, 2023 | | :------------------------------------ | :------------- | :---------------- | | Total current assets | $1,983 | $1,895 | | Total assets | $5,776 | $5,741 | | Total current liabilities | $1,883 | $1,747 | | Long-term borrowings | $2,857 | $2,938 | | Total liabilities | $5,489 | $5,454 | | Total Stockholders' equity | $287 | $287 | - Total assets increased slightly from **$5,741 million** at December 31, 2023, to **$5,776 million** at March 31, 2024, driven by an increase in current assets. Total liabilities also increased, while total stockholders' equity remained stable[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This statement details the company's cash inflows and outflows from operating, investing, and financing activities for the specified periods Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions) | In millions | 2024 | 2023 | | :------------------------------------ | :--- | :--- | | Net cash provided by operating activities | $148 | $120 | | Net cash used in investing activities | $(31) | $(25) | | Net cash used in financing activities | $(87) | $(91) | | Increase (decrease) in cash, cash equivalents, and restricted cash | $21 | $16 | | Cash, cash equivalents and restricted cash at end of period | $607 | $515 | - Net cash provided by operating activities increased to **$148 million** in Q1 2024 from **$120 million** in Q1 2023. Net cash used in investing activities increased to **$31 million**, while net cash used in financing activities slightly decreased to **$87 million**[17](index=17&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20(Unaudited)) This statement presents the changes in the company's equity accounts, including common stock and retained earnings, for the specified periods Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (in millions) | In millions | December 31, 2023 | March 31, 2024 | | :------------------------------------ | :---------------- | :------------- | | Common Stock (Shares) | 71 | 72 | | Common Stock (Amount) | $1 | $1 | | Paid-in Capital | $16 | $14 | | Retained Earnings | $181 | $165 | | Accumulated Other Comprehensive Income (Loss) | $86 | $103 | | Noncontrolling Interests in Subsidiaries | $3 | $4 | | Total | $287 | $287 | - Total stockholders' equity remained stable at **$287 million** from December 31, 2023, to March 31, 2024. Key changes included a decrease in retained earnings due to the net loss and an increase in accumulated other comprehensive income[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1. Basis of Presentation and Summary of Significant Accounting Policies](index=9&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note describes the company's financial statement presentation, spin-off details, and key accounting policies - NCR Atleos Corporation became a standalone publicly traded company on October 16, 2023, following a spin-off from NCR Corporation (now Voyix). The financial statements for periods prior to this date are presented on a standalone basis derived from NCR's historical records[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - The company recorded adjustments in Q1 2024 related to the Separation, correcting an overstatement of total assets by **$6 million**, understatement of total liabilities by **$5 million**, overstatement of additional paid-in capital by **$4 million**, and overstatement of retained earnings by **$8 million** as of December 31, 2023. These adjustments did not impact Q1 2024 operating results, cash flows, or financial position[35](index=35&type=chunk) Cash, Cash Equivalents, and Restricted Cash Reconciliation (in millions) | Location in the Consolidated Balance Sheet | March 31, 2024 | March 31, 2023 | | :----------------------------------------- | :------------- | :------------- | | Cash and cash equivalents | $343 | $282 | | Short term restricted cash | $7 | $0 | | Long term restricted cash | $8 | $2 | | Cash included in settlement processing assets | $249 | $231 | | Total cash, cash equivalents, and restricted cash | $607 | $515 | [Note 2. Goodwill and Purchased Intangible Assets](index=13&type=section&id=Note%202.%20Goodwill%20and%20Purchased%20Intangible%20Assets) This note details the company's goodwill and identifiable intangible assets, including their carrying amounts and amortization Goodwill by Segment (in millions) | In millions | December 31, 2023 Goodwill | Additions | Other | March 31, 2024 Goodwill | | :---------- | :------------------------- | :-------- | :---- | :---------------------- | | Network | $1,696 | $0 | $(1) | $1,695 | | Self Service Banking | $256 | $0 | $0 | $256 | | Total goodwill | $1,952 | $0 | $(1) | $1,951 | Identifiable Intangible Assets (in millions) | In millions | Amortization Period (in Years) | March 31, 2024 Gross Carrying Amount | March 31, 2024 Accumulated Amortization | December 31, 2023 Gross Carrying Amount | December 31, 2023 Accumulated Amortization | | :---------- | :----------------------------- | :----------------------------------- | :---------------------------------------- | :---------------------------------------- | :----------------------------------------- | | Direct customer relationships | 1 - 15 | $388 | $(89) | $392 | $(84) | | Technology-software | 3 - 8 | $492 | $(199) | $495 | $(185) | | Tradenames | 1 - 10 | $50 | $(36) | $50 | $(33) | | Total identifiable intangible assets | | $930 | $(324) | $937 | $(302) | - Amortization expense related to identifiable intangible assets was **$25 million** for both the three months ended March 31, 2024, and 2023. The estimated aggregate amortization expense for the remainder of 2024 is **$72 million**[51](index=51&type=chunk) [Note 3. Segment Information and Concentrations](index=15&type=section&id=Note%203.%20Segment%20Information%20and%20Concentrations) This note provides financial information by operating segment and geographic area, along with recurring revenue details - The Company manages its operations in three segments: Self-Service Banking, Network, and Telecommunications & Technology (T&T). Performance is evaluated based on revenue and Adjusted EBITDA[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) Revenue and Adjusted EBITDA by Segment (in millions) | In millions | 2024 Revenue | 2023 Revenue | 2024 Adjusted EBITDA | 2023 Adjusted EBITDA | | :-------------------- | :----------- | :----------- | :------------------- | :------------------- | | Self-Service Banking | $628 | $606 | $134 | $139 | | Network | $310 | $300 | $86 | $75 | | T&T | $51 | $50 | $10 | $10 | | Total segment revenue | $989 | $956 | $230 | $224 | Recurring Revenue (in millions) | In millions | 2024 | 2023 | | :---------- | :--- | :--- | | Recurring revenue | $763 | $710 | | All other products and services | $287 | $276 | | Total revenue | $1,050 | $986 | Revenue by Geographic Area (in millions) | In millions | 2024 | 2023 | | :-------------------------- | :--- | :--- | | United States ("U.S.") | $479 | $466 | | Americas (excluding U.S.) | $138 | $119 | | Europe, Middle East and Africa | $303 | $282 | | Asia Pacific | $130 | $119 | | Total revenue | $1,050 | $986 | [Note 4. Debt Obligations](index=19&type=section&id=Note%204.%20Debt%20Obligations) This note outlines the company's short-term and long-term debt, including borrowings under credit facilities and senior secured notes Short-Term and Long-Term Debt (in millions) | In millions, except percentages | March 31, 2024 Amount | March 31, 2024 Weighted Average Interest Rate | December 31, 2023 Amount | December 31, 2023 Weighted Average Interest Rate | | :------------------------------ | :-------------------- | :------------------------------------------ | :----------------------- | :------------------------------------------ | | Short-Term Borrowings | $80 | | $76 | | | Long-Term Borrowings | $2,857 | | $2,938 | | | Total Debt | $2,937 | | $3,014 | | - As of March 31, 2024, the Company had **$1,567 million** outstanding under its Term Loan Facilities and **$93 million** outstanding under its Revolving Credit Facility. The Revolving Credit Facility had a borrowing capacity of **$382 million**[60](index=60&type=chunk) - The Company's **9.500%** senior secured notes due 2029 have an aggregate principal amount of **$1,350 million**, with interest payable semi-annually[66](index=66&type=chunk) [Note 5. Trade Receivables Facility](index=22&type=section&id=Note%205.%20Trade%20Receivables%20Facility) This note describes the company's trade receivables facility, under which certain receivables are sold and derecognized - The Company maintains a Trade Receivables Facility allowing its subsidiaries to sell certain trade receivables on a revolving basis. As of March 31, 2024, approximately **$166 million** of trade receivables had been sold and derecognized[70](index=70&type=chunk)[72](index=72&type=chunk) - The SPEs (U.S. SPE and Canadian SPE) collectively owned **$91 million** of trade receivables as of March 31, 2024, which are included in Accounts receivable, net[72](index=72&type=chunk) [Note 6. Income Taxes](index=23&type=section&id=Note%206.%20Income%20Taxes) This note provides details on the company's income tax expense and unrecognized tax benefits - Income tax expense decreased from **$25 million** in Q1 2023 to **$4 million** in Q1 2024, primarily due to lower income before taxes[78](index=78&type=chunk) - The Company estimates a potential decrease of **$2 million to $3 million** in gross unrecognized tax benefits over the next 12 months[79](index=79&type=chunk) [Note 7. Stock Compensation Plans](index=23&type=section&id=Note%207.%20Stock%20Compensation%20Plans) This note details the company's stock-based compensation expense, restricted stock unit grants, and unrecognized compensation costs Stock-based Compensation Expense (in millions) | In millions | 2024 | 2023 | | :---------- | :--- | :--- | | Restricted stock units | $10 | $5 | | Tax expense (benefit) | $(1) | $(1) | | Stock-based compensation expense (net of tax) | $9 | $4 | - On February 16, 2024, the Company granted time-based and market-based restricted stock units under the 2023 Stock Incentive Plan. Time-based RSUs have a weighted-average grant date fair value of **$21.90**, and market-based RSUs have a fair value of **$27.46** per share[82](index=82&type=chunk)[83](index=83&type=chunk) - As of March 31, 2024, the total unrecognized compensation cost related to unvested restricted stock grants is **$60 million**, expected to be recognized over approximately **2.4 years**[87](index=87&type=chunk) [Note 8. Employee Benefit Plans](index=25&type=section&id=Note%208.%20Employee%20Benefit%20Plans) This note provides information on the company's pension and postretirement benefit plans, including net periodic benefit costs Net Periodic Benefit Cost (Income) of Pension Plans (in millions) | In millions | 2024 U.S. Pension Benefits | 2023 U.S. Pension Benefits | 2024 International Pension Benefits | 2023 International Pension Benefits | 2024 Total Pension Benefits | 2023 Total Pension Benefits | | :---------- | :------------------------- | :------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------- | :-------------------------- | | Interest cost | $17 | $0 | $5 | $5 | $22 | $5 | | Expected return on plan assets | $(19) | $0 | $(9) | $(8) | $(28) | $(8) | | Net periodic benefit cost (income) | $(2) | $0 | $(4) | $(3) | $(6) | $(3) | - Atleos anticipates contributing a total of **$3 million** to its international pension plans, **$2 million** to its postretirement plan, and **$18 million** to its postemployment plan in 2024[91](index=91&type=chunk)[92](index=92&type=chunk) [Note 9. Commitments and Contingencies](index=27&type=section&id=Note%209.%20Commitments%20and%20Contingencies) This note discusses the company's legal proceedings, environmental liabilities, and other contingent obligations - The Company is subject to various legal proceedings and claims in the normal course of business, including environmental, labor, intellectual property, and regulatory compliance matters[93](index=93&type=chunk) - Under the Separation and Distribution Agreement, Atleos shares liability with Voyix for certain shared environmental matters, including the Kalamazoo River Superfund Site. Atleos' estimated contribution for Shared Environmental Matters in 2024 may be approximately **$2 million**, payable in Q4 2024[95](index=95&type=chunk)[97](index=97&type=chunk) - Voyix's total reserve for the Kalamazoo River was **$142 million** as of March 31, 2024, net of expected contributions from co-obligors and indemnitors, which are expected to range from **$70 million to $155 million**[101](index=101&type=chunk)[102](index=102&type=chunk) [Note 10. Related Parties](index=29&type=section&id=Note%2010.%20Related%20Parties) This note describes transactions and balances with related parties, particularly prior to the company's spin-off from NCR - Following the Separation on October 16, 2023, Voyix ceased to be a related party to Atleos, and no related party transactions or balances are reported subsequent to this date[107](index=107&type=chunk) NCR Allocations to the Company (in millions) for Q1 2023 | In millions | 2023 | | :------------------------------------ | :--- | | Cost of products | $7 | | Cost of services | $22 | | Selling, general and administrative expense | $44 | | Research and development expense | $6 | | Total allocated costs | $79 | - Prior to the Separation, the Company recognized **$3 million** of interest income and **$7 million** of interest expense related to related-party notes and borrowings, respectively, for the three months ended March 31, 2023[112](index=112&type=chunk)[114](index=114&type=chunk) [Note 11. Earnings Per Share](index=32&type=section&id=Note%2011.%20Earnings%20Per%20Share) This note presents the calculation of basic and diluted earnings (loss) per share for the company's common stockholders Basic and Diluted Earnings (Loss) Per Share (in millions, except per share amounts) | In millions, except per share amounts | 2024 | 2023 | | :------------------------------------ | :--- | :--- | | Net income (loss) attributable to Atleos common stockholders | $(8) | $36 | | Basic and dilutive weighted average number of shares outstanding | 71.6 | 70.6 | | Basic and diluted earnings (loss) per share | $(0.11) | $0.51 | - For Q1 2024, potential common shares (restricted stock units and stock options) totaling **5.9 million** were excluded from the diluted share count because their effect would have been anti-dilutive due to the net loss attributable to Atleos common stockholders[119](index=119&type=chunk) [Note 12. Derivatives and Hedging Instruments](index=32&type=section&id=Note%2012.%20Derivatives%20and%20Hedging%20Instruments) This note describes the company's use of derivative financial instruments to manage foreign currency and interest rate risks - Atleos uses derivative financial instruments, including foreign currency contracts and interest rate swap contracts, to manage exposures to foreign currency exchange risk and interest rate risk associated with vault cash rental obligations[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[125](index=125&type=chunk) - In March 2024, the Company terminated all open U.S. Dollar interest rate swap contracts for cash proceeds of **$13 million**. New interest rate swap contracts totaling **$2.0 billion** notional amount were executed, terminating on March 31, 2027, to hedge U.S. Dollar vault cash agreements[127](index=127&type=chunk)[128](index=128&type=chunk) Fair Values of Derivative Instruments (in millions) | In millions | March 31, 2024 Fair Value | December 31, 2023 Fair Value | | :------------------------------------ | :------------------------ | :------------------------- | | Derivatives designated as hedging instruments (Assets) | $11 | $7 | | Derivatives designated as hedging instruments (Liabilities) | $(25) | $(29) | | Derivatives not designated as hedging instruments (Assets) | $0 | $1 | | Derivatives not designated as hedging instruments (Liabilities) | $(1) | $0 | [Note 13. Fair Value of Assets and Liabilities](index=37&type=section&id=Note%2013.%20Fair%20Value%20of%20Assets%20and%20Liabilities) This note presents the fair value measurements of the company's assets and liabilities, categorized by valuation input levels Assets and Liabilities Recorded at Fair Value (in millions) | In millions | March 31, 2024 Total | March 31, 2024 Level 1 | March 31, 2024 Level 2 | March 31, 2024 Level 3 | | :---------- | :------------------- | :------------------- | :------------------- | :------------------- | | Assets: | | | | | | Deposits held in money market mutual funds | $3 | $3 | $0 | $0 | | Interest rate swap contracts | $11 | $0 | $11 | $0 | | Total assets | $14 | $3 | $11 | $0 | | Liabilities: | | | | | | Foreign exchange contracts | $1 | $0 | $1 | $0 | | Interest rate swap contracts | $25 | $0 | $25 | $0 | | Total liabilities | $26 | $0 | $26 | $0 | - Money market mutual funds are valued using Level 1 inputs (quoted market prices), while foreign exchange contracts and interest rate swap contracts are valued using Level 2 inputs (observable market transactions and income models)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) [Note 14. Accumulated Other Comprehensive Income](index=38&type=section&id=Note%2014.%20Accumulated%20Other%20Comprehensive%20Income) This note details the changes in the components of accumulated other comprehensive income (loss) for the reporting period Changes in Accumulated Other Comprehensive Income (Loss) by Component (in millions) | In millions | Currency Translation Adjustments | Changes in Employee Benefit Plans | Changes in Fair Value of Effective Cash Flow Hedges | Total | | :---------- | :------------------------------- | :-------------------------------- | :------------------------------------------------ | :---- | | Balance as of December 31, 2023 | $57 | $(5) | $34 | $86 | | Other comprehensive income (loss) before reclassifications | $13 | $0 | $19 | $32 | | Amounts reclassified from AOCI | $0 | $0 | $(15) | $(15) | | Net current period other comprehensive income (loss) | $13 | $0 | $4 | $17 | | Other | $5 | $(5) | $0 | $0 | | Balance as of March 31, 2024 | $75 | $(10) | $38 | $103 | - Total AOCI increased from **$86 million** at December 31, 2023, to **$103 million** at March 31, 2024, primarily driven by currency translation adjustments and changes in the fair value of effective cash flow hedges[140](index=140&type=chunk) [Note 15. Supplemental Financial Information](index=39&type=section&id=Note%2015.%20Supplemental%20Financial%20Information) This note provides additional financial details, including components of other income (expense), accounts receivable, and inventories Components of Other Income (Expense), Net (in millions) | In millions | 2024 | 2023 | | :------------------------------------ | :--- | :--- | | Interest income | $2 | $0 | | Foreign currency fluctuations and foreign exchange contracts | $(3) | $(3) | | Employee benefit plans | $5 | $3 | | Bank-related fees | $(2) | $0 | | Other, net | $1 | $0 | | Total other income (expense), net | $3 | $0 | Components of Accounts Receivable, Net (in millions) | In millions | March 31, 2024 | December 31, 2023 | | :-------------------------- | :------------- | :---------------- | | Trade | $668 | $638 | | Other | $93 | $90 | | Accounts receivable, gross | $761 | $728 | | Less: allowance for credit losses | $(19) | $(14) | | Total accounts receivable, net | $742 | $714 | Components of Inventories (in millions) | In millions | March 31, 2024 | December 31, 2023 | | :-------------------------- | :------------- | :---------------- | | Work in process and raw materials | $52 | $55 | | Finished goods | $80 | $72 | | Service parts | $198 | $206 | | Total inventories | $330 | $333 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for the reporting period [OVERVIEW](index=40&type=section&id=OVERVIEW) This section provides an overview of the company's business, strategic initiatives, and operational context - Atleos is a financial technology company providing self-directed banking solutions, including ATM and ITM technology, software, services, hardware, and the Allpoint network. It operates in Self-Service Banking, Network, and Telecommunications & Technology (T&T) segments[145](index=145&type=chunk)[146](index=146&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) - The Company completed its spin-off from NCR Corporation (now Voyix) on October 16, 2023, becoming a standalone publicly traded company. It expects to incur separation-related costs through at least fiscal year 2024[150](index=150&type=chunk)[151](index=151&type=chunk) - Strategic initiatives include focusing on 'ATM as a Service,' shifting to a software-led, highly recurring revenue model, and leveraging new ATM transaction types like digital currency solutions. The company continues to be exposed to macroeconomic pressures and geopolitical challenges[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[160](index=160&type=chunk) [RESULTS OF OPERATIONS](index=43&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial performance, including revenue, gross margin, and segment results for the reporting period Key Strategic Financial Metrics (in millions, except percentages) | In millions | 2024 | 2023 | 2024 % of Total Revenue | 2023 % of Total Revenue | Increase (Decrease) 2024 vs 2023 | | :------------------------------------ | :--- | :--- | :---------------------- | :---------------------- | :------------------------------- | | Recurring revenue | $763 | $710 | 72.7 % | 72.0 % | 7 % | | All other products and services | $287 | $276 | 27.3 % | 28.0 % | 4 % | | Total Revenue | $1,050 | $986 | 100.0 % | 100.0 % | 6 % | | Net income (loss) attributable to Atleos | $(8) | $36 | (0.8)% | 3.7 % | (122)% | | Adjusted EBITDA | $162 | $146 | 15.4 % | 14.8 % | 11 % | - Total revenue increased **6%** year-over-year to **$1,050 million**, primarily driven by growth in recurring service revenue streams and commercial agreements with Voyix. However, net income attributable to Atleos decreased by **122%** to a loss of **$8 million**[177](index=177&type=chunk)[168](index=168&type=chunk) - Product revenue increased **3%** to **$240 million**, mainly due to **$25 million** from commercial agreements with Voyix, partially offset by declines in non-core commerce, ATM hardware, Bitcoin-related, and ATM software license revenues. Service revenue increased **8%** to **$810 million**, driven by hardware maintenance, ATM as a Service, and transaction processing services[178](index=178&type=chunk)[179](index=179&type=chunk) - Gross margin as a percentage of revenue decreased from **22.3%** in Q1 2023 to **21.0%** in Q1 2024, primarily due to lower margins on services provided under commercial agreements with Voyix and increased interest rates on vault cash agreements[181](index=181&type=chunk) - Interest expense significantly increased to **$79 million** in Q1 2024 due to senior secured notes and credit facility borrowings, compared to no external interest expense in Q1 2023[187](index=187&type=chunk) Segment Revenue and Adjusted EBITDA (in millions) | In millions | 2024 Revenue | 2023 Revenue | 2024 Adjusted EBITDA | 2023 Adjusted EBITDA | | :-------------------- | :----------- | :----------- | :------------------- | :------------------- | | Self-Service Banking | $628 | $606 | $134 | $139 | | Network | $310 | $300 | $86 | $75 | | T&T | $51 | $50 | $10 | $10 | - Network Adjusted EBITDA increased **15%** due to higher withdrawal transaction volumes and a favorable mix of higher-margin transaction revenue, partially offset by increased interest rates on vault cash agreements and cash-in-transit costs[200](index=200&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=49&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) This section assesses the company's financial position, cash flows, and capital management strategies Summarized Cash Flow Information (in millions) | In millions | 2024 | 2023 | | :------------------------------------ | :--- | :--- | | Net cash provided by operating activities | $148 | $120 | | Net cash used in investing activities | $(31) | $(25) | | Net cash used in financing activities | $(87) | $(91) | - Net cash provided by operating activities increased by **$28 million** to **$148 million** in Q1 2024, driven by favorable movement in net working capital and increased non-cash charges, partially offset by a decline in net income[204](index=204&type=chunk) Adjusted Free Cash Flow-Unrestricted Reconciliation (in millions) | In millions | 2024 | 2023 | | :------------------------------------ | :--- | :--- | | Net cash provided by operating activities (GAAP) | $148 | $120 | | Capital expenditures for property, plant and equipment | $(24) | $(15) | | Additions to capitalized software | $(6) | $(8) | | Change in restricted cash settlement activity | $(18) | $(27) | | Pension contributions | $1 | $1 | | Temporary transfer of funds from Voyix | $(32) | $0 | | Adjusted free cash flow-unrestricted (non-GAAP) | $69 | $71 | - As of March 31, 2024, cash and cash equivalents totaled **$343 million**, and total debt was **$3,018 million**. The Company had a borrowing capacity of **$382 million** under its senior secured credit facility[211](index=211&type=chunk) [Critical Accounting Policies and Estimates](index=52&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the key accounting policies and estimates that significantly impact the company's financial reporting - Critical accounting estimates include revenue recognition, inventory valuation, goodwill and intangible assets, pension, postretirement and postemployment benefits, income taxes, and, for periods prior to the Separation, cost allocations[215](index=215&type=chunk) [Recently Issued Accounting Pronouncements](index=52&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section refers to disclosures regarding new accounting standards and their potential impact on the company - Refer to Note 1, 'Basis of Presentation and Summary of Significant Accounting Policies,' for discussion on recently issued accounting pronouncements[216](index=216&type=chunk) [Forward-Looking Statements](index=53&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements and associated risks that could affect the company's future performance - This section contains forward-looking statements regarding Atleos' plans, goals, intentions, strategies, and financial outlook, which are subject to known and unknown risks and uncertainties that could cause actual outcomes to differ materially[218](index=218&type=chunk) - Key risk factors include strategy and technology changes, business operations (e.g., economic conditions, supply chain, geopolitical challenges), data privacy and security, financial and accounting risks (e.g., indebtedness, interest rates), legal and compliance issues, governance, and risks related to the spin-off from NCR[219](index=219&type=chunk)[220](index=220&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to market risks, such as foreign exchange and interest rate fluctuations, and its mitigation strategies - Atleos is exposed to foreign currency exchange risk across approximately **40** functional currencies, which can significantly impact results. The Company uses foreign exchange contracts to hedge transactional exposures, deferring gains/losses into AOCI for highly effective cash flow hedges[222](index=222&type=chunk) - A hypothetical **10%** appreciation in the U.S. Dollar would decrease the fair value of the hedge portfolio by **$4 million**, while a **10%** depreciation would increase it by **$3 million**, with expected offsets from underlying exposures[224](index=224&type=chunk) - The Company is subject to interest rate risk from variable-rate debt (approximately **45%** of borrowings are fixed rate) and ATM vault cash rental expenses. A hypothetical **100 basis point** increase in variable interest rates would increase pre-tax interest expense by approximately **$4 million** and vault cash rental expense by **$10 million** (excluding swaps)[225](index=225&type=chunk)[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and internal control over financial reporting - Management, including the principal executive and financial officers, concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024[229](index=229&type=chunk) - There have been no changes in internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[230](index=230&type=chunk) [PART II. Other Information](index=57&type=section&id=PART%20II.%20Other%20Information) This section provides additional disclosures on legal proceedings, risk factors, equity sales, and other miscellaneous information [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to detailed information on the company's legal proceedings and contingent liabilities - Information regarding legal proceedings is incorporated by reference from Note 9, 'Commitments and Contingencies,' in the Notes to Condensed Consolidated Financial Statements[233](index=233&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) This section addresses potential risks and uncertainties that could materially impact the company's business and financial results - No material changes to the risk factors previously disclosed in Part I, Item 1A ('Risk Factors') of the Company's 2023 Annual Report on Form 10-K[234](index=234&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on unregistered equity sales and the company's policies regarding common stock repurchases - For the three months ended March 31, 2024, approximately **0.3 million** shares of vested restricted stock units were purchased at an average price of **$19.20** per share to cover withholding taxes[235](index=235&type=chunk) - The Company's repurchase of common stock is subject to restrictions under its senior secured credit facility and senior secured notes indentures, and the discretion of its Board of Directors[236](index=236&type=chunk) [Item 5. Other Information](index=57&type=section&id=Item%205.%20Other%20Information) This section provides additional disclosures, including information on director and officer trading arrangements - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended March 31, 2024[237](index=237&type=chunk) [Item 6. Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists all supplementary documents and certifications filed with the report - Exhibits include the Amended and Restated Executive Severance Plan, Forms of 2024 Restricted Stock Unit Award Agreements (Performance and Time-based), Certifications pursuant to Rules 13a-14(a) and 15d-14(a) and 18 U.S.C. Section 1350, and iXBRL formatted financial statements[239](index=239&type=chunk) [Signatures](index=59&type=section&id=Signatures) This section contains the official certifications and signatures for the filed report - The report is signed by Paul J. Campbell, Executive Vice President and Chief Financial Officer of NCR Atleos Corporation, on May 14, 2024[243](index=243&type=chunk)