Summary of NCR Voyix Conference Call Company Overview - **Company**: NCR Voyix (NYSE: VYX) - **CEO**: Jim Kelly - **Background**: The company underwent a split in October 2023, separating the ATM business into a new entity called Atleos. The company sold its digital banking asset for $2.5 billion, significantly improving its balance sheet, with current debt trailing below 2, specifically at 1.8 billion as of the last quarter [10][11][12]. Key Changes and Developments - **Leadership Transition**: Jim Kelly became CEO in February 2024, focusing on restructuring and modernizing the company [10][11]. - **Customer Engagement**: Kelly visited 80% of the company's offices and met with 80% of employees and customers to understand their needs and improve service [12]. - **Product Modernization**: The company is modernizing its technology, with a suite of new products to be showcased at the NRF event in January 2026. The modernization leverages AI and aims to enhance customer connections [12][14]. Financial Performance and Revenue Structure - **Revenue Composition**: The company anticipates $2 billion in revenue, with 75% coming from services (hardware and software maintenance) and 25% from software licenses [89]. - **Customer Base**: The company has a stable customer base with attrition rates below 1%. It serves large enterprises like Publix and Whole Foods, focusing on enterprise solutions rather than small and medium-sized businesses (SMBs) [16][51]. Technology and Product Strategy - **Voyix Commerce Platform (VCP)**: The VCP is a cloud-oriented architecture that can operate without cloud connectivity, enhancing reliability for retail and restaurant clients. It utilizes microservices technology, allowing for rapid updates and innovations [64][68]. - **New Product Development**: The company has developed new products rapidly, with some created in less than a week, demonstrating agility in product development [66][68]. Market Position and Competitive Landscape - **Enterprise vs. SMB Focus**: NCR Voyix primarily targets enterprise clients, which require different technology and service levels compared to SMBs. The company has a significant presence in the enterprise market, with 400 enterprise clients making up 80% of its revenue [75][76]. - **Competitive Advantage**: The company emphasizes its service capabilities as a differentiator in the market, with a large workforce dedicated to customer service [52][53]. Future Outlook - **Growth Potential**: The company is optimistic about revenue growth driven by new product offerings and modernization efforts. The integration of payments into its services is seen as a significant opportunity, with $1.4 trillion in payments processed through its systems [98][99]. - **Strategic Partnerships**: NCR Voyix has established connections with major fuel providers and is expanding its payment services, which could enhance its revenue streams [113][119]. Additional Insights - **Cultural Shift**: The company is undergoing a cultural transformation towards a "culture of winning," focusing on customer engagement and service excellence [23][127]. - **Market Dynamics**: The competitive landscape is evolving, with NCR Voyix aiming to win customers from competitors by leveraging its modernized platform and improved service delivery [128]. This summary encapsulates the key points discussed during the NCR Voyix conference call, highlighting the company's strategic direction, financial performance, and market positioning.

NCR Voyix (NYSE:VYX) FY Conference November 18, 2025 12:00 PM ET Company ParticipantsJim Kelly - CEOBenny Tadele - President of RestaurantsConference Call ParticipantsNone - AnalystChuck Nabhan - AnalystChuck NabhanGood morning, everyone. Thanks for joining us today. My name is Chuck Nabhan. For those that don't know me, I cover the payments and fintech space at Stephens. Today we're pleased to have the team from NCR Voyix joining us today. We have CEO Jim Kelly and President of Restaurants Benny Tadele. Ge ...

Nov 14, 2025 9:05 AM Eastern Standard Time NCR Voyix to Present at Upcoming Investor Conferences Share ATLANTA--(BUSINESS WIRE)--NCR Voyix Corporation (NYSE: VYX), a leading global provider of digital commerce solutions, today announced that James G. Kelly, CEO and President, will present at the following investor conferences: A live webcast and subsequent replay of the presentation will be available on the NCR Voyix investor relations website at https://investor.ncrvoyix.com. About NCR Voyix NCR Voyix Corp ...

Core Insights - NCR Voyix (VYX) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and a significant improvement from a loss of $0.24 per share a year ago [1] - The earnings surprise of +40.91% indicates strong performance, following a previous surprise of +35.71% in the last quarter [2] - The company generated revenues of $684 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.32%, although this represents a decline from $711 million in the same quarter last year [3] Earnings Performance - NCR Voyix has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] - The company has also topped consensus revenue estimates four times in the last four quarters, showcasing consistent revenue growth despite the year-over-year decline [3] Stock Performance and Outlook - NCR Voyix shares have decreased by approximately 17.4% since the beginning of the year, contrasting with the S&P 500's gain of 15.6%, highlighting underperformance in the market [4] - The future stock performance will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings results [4] Earnings Estimates and Industry Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29, with expected revenues of $658.5 million, and for the current fiscal year, the estimate is $0.79 on $2.61 billion in revenues [8] - The Computer - Integrated Systems industry, to which NCR Voyix belongs, is currently ranked in the top 6% of over 250 Zacks industries, suggesting a favorable industry outlook that could positively impact stock performance [9]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $684 million, a decline of 3% due to lower hardware sales and one-time software and services revenue [26] - Recurring revenue increased by 5% to $425 million, driven by 7% growth in restaurants and 4% growth in retail [26] - Adjusted EBIT was $125 million, an increase of 32%, with margin expanding 490 basis points to 18.3% [26][28] - Adjusted free cash flow was $42 million for the quarter, with capital expenditures of $38 million [28] Business Line Data and Key Metrics Changes - In the restaurant segment, total revenue was flat at $210 million, with recurring revenue increasing by 7% to $146 million [27] - In the retail segment, total revenue declined by 4% to $467 million, while recurring revenue increased by 4% to $276 million [28] - Software ARR increased by 8% and total segment ARR increased by 5% [26] Market Data and Key Metrics Changes - The restaurant business signed over 200 new software and services customers, with platform sites increasing by 6% and payment sites by 2% [19] - The retail business signed over 30 new software and services customers, with platform sites increasing by 16% and payment sites by 9% [22] Company Strategy and Development Direction - The company is focused on becoming a software-led business supported by robust payments and service capabilities, with a key milestone being the outsourcing of its hardware business [5][6] - The Voyix Commerce Platform is positioned as a platform-powered leader in unified commerce for retail and restaurants, leveraging AI-enabled development tools to accelerate innovation [13][14] - The company aims to enhance its payments presence across various verticals, strengthening recurring revenue and long-term growth [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's progress and innovation pipeline, emphasizing the importance of disciplined execution for sustainable growth [30] - The outlook for revenue is projected to be between $2.65 billion and $2.67 billion, with adjusted EBITDA expected to range between $420 and $435 million [29][30] - Management noted that customer engagement remains strong, with positive feedback on new platform solutions [9][31] Other Important Information - A new six-year exclusive agreement with Chipotle was announced, marking a significant expansion of their partnership [33][34] - The company is preparing for the NRF Show in January to showcase new software and payment innovations [17] Q&A Session Summary Question: Can we talk about the price escalators referenced? - Management indicated that the company historically did not have escalators in all agreements, but is now ensuring they are included and charged accordingly, with expected increases being modest [36][38] Question: Can you quantify the impact of new relationships on the payment side of the business? - Management highlighted the potential for significant transaction volume through the Voyix Connect platform, estimating a total addressable market of approximately $1.3 trillion in the US [40][42] Question: What is the timeline for the ODM phasing project? - The project is expected to start in January and take approximately 90 days, with a focus on ensuring a smooth transition for customers and employees [53][54] Question: How is consumer health impacting technology investments? - Management noted that customers are eager to invest in technology to enhance consumer experiences and compete effectively, despite economic pressures [56][64]

Q3 2025 Financial Performance - Revenue increased to $684 million in Q3 2025 compared to $708 million in Q3 2024[42] - Adjusted EBITDA increased by 32% to $125 million in Q3 2025 from $95 million in Q3 2024[13, 43] - Recurring revenue increased by 5% to $425 million in Q3 2025 from $405 million in Q3 2024[13] - Non-GAAP Diluted EPS was $031 in Q3 2025, compared to $001 in Q3 2024[13, 45] YTD 2025 Financial Performance - Recurring revenue increased by 4% to $1254 million YTD 2025 from $1211 million YTD 2024[26] - Adjusted EBITDA increased by 20% to $295 million YTD 2025 from $237 million YTD 2024[26] Debt and Cash Flow - Total debt as of September 30, 2025, was $1105 million[18] - Net debt was $823 million as of September 30, 2025[18, 48] - Adjusted Net Leverage Ratio is 20x, calculated as net debt divided by the last twelve months Adjusted EBITDA[18, 48] FY 2025 Outlook - Total revenue is projected to be between $2650 million and $2670 million[20] - Adjusted EBITDA is projected to be between $420 million and $435 million[20]

Financial Performance - Revenue for the third quarter of 2025 was $684 million, a decrease of 3% compared to the prior year period[168]. - Recurring revenue increased by 5% year-over-year, comprising 62% of total consolidated revenue[168]. - Net loss from continuing operations attributable to NCR Voyix was $17 million, an improvement from a net loss of $29 million in the prior year period[168]. - Adjusted EBITDA for the third quarter of 2025 was $125 million, up 32% compared to the prior year period[168]. - Total revenue for the three months ended September 30, 2025, was $684 million, a decrease of 3% compared to $708 million in 2024[175]. - Product revenue for the nine months ended September 30, 2025, was $538 million, down 21% from $683 million in 2024[175]. - Service revenue for the three months ended September 30, 2025, was $484 million, a slight decrease of 1% from $490 million in 2024[175]. - Total revenue for the nine months ended September 30, 2025, decreased by 8% to $1,967 million, with product revenue down 21% to $538 million[190]. - Service revenue for the nine months ended September 30, 2025, decreased by 2% to $1,429 million, despite an increase in payments processing revenue[190]. - Retail revenue decreased by 10% to $1.341 billion for the nine months ended September 30, 2025, compared to $1.495 billion in 2024, mainly due to declines in hardware and software license revenue[223]. - Restaurants revenue decreased by 1% to $606 million for the nine months ended September 30, 2025, compared to $614 million in 2024, attributed to lower one-time implementation services revenue[224]. Expenses and Margins - Total gross margin for the nine months ended September 30, 2025, improved to 23.1%, up from 20.1% in 2024[175]. - Selling, general and administrative expenses for the three months ended September 30, 2025, were $111 million, a decrease of 2% from $113 million in 2024[175]. - Research and development expenses for the nine months ended September 30, 2025, were $112 million, down 13% from $129 million in 2024[175]. - Total operating expenses for the three months ended September 30, 2025, remained flat at $151 million compared to 2024[175]. - Gross margin for the three months ended September 30, 2025, was 24.3%, an increase from 23.6% in the prior year, driven by improved service gross margins[192]. - Interest expense for the three months ended September 30, 2025, decreased by 63% to $15 million, primarily due to a reduction in total debt outstanding[204]. - Interest expense decreased to $44 million for the nine months ended September 30, 2025, down from $120 million in the same period of 2024, primarily due to a reduction in total debt outstanding[206][207]. Corporate Actions - The company completed the spin-off of its ATM-focused businesses into an independent company, NCR Atleos, on October 16, 2023[155]. - The sale of the Digital Banking segment was completed for $2.45 billion in cash, with potential additional contingent consideration of up to $100 million[156]. - The transition of the hardware business to an ODM model is expected to commence in January 2026, involving a commercial agreement with Ennoconn Corporation[158]. Cybersecurity and Fraud - Cumulative expenses related to a cyber ransomware incident reached $47 million, with $36 million recovered under insurance policies as of September 30, 2025[161]. - The company identified fraudulent ACH disbursements totaling $34 million, recovering approximately $16 million as of September 30, 2025[162][163]. Market Strategy - The company is focused on expanding its market share by leveraging cloud-based solutions and investing in innovative products to enhance customer satisfaction[166]. - Annualized Recurring Revenue (ARR) for Retail increased by 4% to $1,095 million, and for Restaurants increased by 7% to $584 million compared to the previous year[186]. Cash Flow and Debt - Cash and cash equivalents totaled $282 million as of September 30, 2025, with total debt at $1.1 billion[228]. - Net cash used in operating activities was $270 million for the nine months ended September 30, 2025, compared to cash provided of $38 million in 2024, primarily due to tax payments related to the Digital Banking Sale[230]. - Capital expenditures were approximately $119 million for the nine months ended September 30, 2025, down from $178 million in the same period of 2024[231]. - The adjusted free cash flow-unrestricted for the nine months ended September 30, 2025, was $(27) million, with net cash provided by operating activities (GAAP) at $(270) million[234]. - The total debt as of September 30, 2025, was $1.1 billion, with $650 million in senior unsecured notes due in 2028 and $403 million due in 2029[235]. Foreign Currency and Credit Risk - The company is exposed to foreign currency exchange risks with approximately 25 functional currencies, impacting sales, profits, and assets[249]. - A 10% depreciation in the value of the U.S. Dollar against foreign currencies would have resulted in a corresponding increase in the fair value of the hedge portfolio of $2 million as of September 30, 2025[250]. - Approximately 100% of the company's borrowings were on a fixed rate basis as of September 30, 2025, with no outstanding interest rate derivative contracts[252]. - The company utilizes interest rate swap contracts and interest rate cap agreements to manage interest rate risk and stabilize interest expenses[253]. - There is a potential concentration of credit risk related to accounts receivable and financial instruments, which includes the risk of nonperformance by counterparties[254]. - The maximum potential loss from credit risk may exceed the amounts recognized on the balance sheet, managed through credit approvals and monitoring procedures[254]. - The company does not require collateral for large transactions with customers, which could expose it to significant losses if customers default[254]. - As of September 30, 2025, there was no significant concentration of credit risk related to financial instruments[255]. - The company believes that reserves for potential losses are adequate[255].

Financial Performance - Total revenue for Q3 2025 was $684 million, a decrease of 3.4% compared to $708 million in the prior year period[6] - Net loss from continuing operations was $17 million, an improvement from a net loss of $29 million in the prior year period[6] - Adjusted EBITDA for Q3 2025 was $125 million, up 31.6% from $95 million in the prior year period[6] - Annual recurring revenue (ARR) reached $1.7 billion, an increase of 6.3% from $1.6 billion in the prior year[6] - Software ARR increased to $798 million, up 7.6% from $742 million in the prior year[6] - Total revenue for the nine months ended September 30, 2025, was $1,967 million, down 8% from $2,140 million in the same period of 2024[29] - Retail segment revenue decreased by 4% to $467 million in Q3 2025, and by 10% to $1,341 million for the nine months[29] - Adjusted EBITDA for Q3 2025 increased by 32% to $125 million, compared to $95 million in Q3 2024[29] - Income (loss) from continuing operations for Q3 2025 was $(17) million, compared to $(29) million in Q3 2024[29] - Net income (loss) attributable to NCR Voyix common stockholders for Q3 2025 was $(22) million, compared to $1,078 million in Q3 2024[29] - Net income for the nine months ended September 30, 2025, was a loss of $36 million, compared to a net income of $968 million in 2024[34] Cash Flow and Assets - Cash and cash equivalents decreased to $282 million as of September 30, 2025, from $722 million at the end of 2024[32] - Total assets decreased to $4,003 million as of September 30, 2025, from $4,452 million at the end of 2024[32] - Total liabilities decreased to $2,879 million as of September 30, 2025, from $3,245 million at the end of 2024[32] - Net cash used in operating activities was $270 million, a significant decrease from $38 million provided in the same period last year[34] - Cash and cash equivalents at the end of the period decreased to $292 million from $825 million in 2024[34] - Net cash used in investing activities was $110 million, down from $2,017 million in the previous year, primarily due to lower proceeds from divestitures[34] - Financing activities resulted in a net cash outflow of $90 million, compared to an outflow of $1,496 million in 2024[34] - The company reported a loss on divestiture of $2 million, a significant improvement from a loss of $1,560 million in the previous year[34] - Changes in other assets and liabilities resulted in a net cash outflow of $413 million, contrasting with a cash inflow of $271 million in the previous year[34] Operational Metrics - The company updated its full-year 2025 revenue outlook to $2,650 million – $2,670 million[5] - Software and services revenue is projected to be $1,980 million – $1,990 million for the full year 2025[5] - As of September 30, 2025, the company had 78 thousand platform sites, a 12% increase from the prior year[9] - Adjusted free cash flow-unrestricted is projected to be $170 million - $175 million for the full year 2025[5] - The company incurred $47 million in transformation and restructuring costs for the three months ended September 30, 2025, compared to $16 million in the same period of 2024[23] - The weighted average diluted shares outstanding for the three months ended September 30, 2025, was 138.2 million, compared to 145.4 million in the same period of 2024[24] - The company reported $6 million in acquisition-related amortization of intangibles for the three months ended September 30, 2025, down from $7 million in the same period of 2024[23] - Strategic initiatives contributed $4 million to adjusted EBITDA for the three months ended September 30, 2025, compared to $12 million in the same period of 2024[23] - The interest expense for the three months ended September 30, 2025, was $15 million, significantly lower than $40 million in the same period of 2024[23] - NCR Voyix's non-GAAP diluted EPS for the three months ended September 30, 2025, was $0.31, compared to $0.01 in the same period of 2024[24] Depreciation and Expenses - Depreciation and amortization expenses decreased to $173 million from $237 million year-over-year[34] - Stock-based compensation expense decreased to $26 million from $39 million in the prior year[34] - The company experienced a decrease in inventories by $26 million, compared to an increase of $37 million in 2024[34]

Core Insights - NCR Voyix Corporation reported a revenue of $684 million for Q3 2025, a decrease from $708 million in the same period last year [1] - The net loss from continuing operations attributable to NCR Voyix was $17 million, an improvement compared to a net loss of $29 million in the prior year period [1] Financial Performance - Revenue for the third quarter decreased by approximately 3.4% year-over-year [1] - The net loss showed a significant reduction of approximately 41.4% compared to the previous year [1]

Core Insights - NCR Voyix (VYX) is anticipated to report a year-over-year increase in earnings despite lower revenues, with earnings expected to be $0.22 per share, reflecting a +191.7% change [3][12] - The upcoming earnings report on November 6 could significantly influence the stock price depending on whether the results meet or exceed expectations [2][12] - The company has an Earnings ESP of -4.55%, indicating a bearish outlook from analysts, despite holding a Zacks Rank of 2 [12][17] Earnings Expectations - Revenues for NCR Voyix are projected to be $668.5 million, which is a 6% decline from the previous year [3] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analyst expectations [4] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of an earnings surprise, with a focus on the Most Accurate Estimate compared to the Zacks Consensus Estimate [8][9] - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [10] Historical Performance - In the last reported quarter, NCR Voyix exceeded expectations by delivering earnings of $0.19 per share against an expected $0.14, resulting in a +35.71% surprise [13] - Over the past four quarters, the company has beaten consensus EPS estimates twice [14] Industry Context - In the broader context, Advanced Micro Devices (AMD) is expected to report earnings of $1.17 per share, reflecting a +27.2% year-over-year change, with revenues projected at $8.72 billion, up 27.9% [18][19] - AMD has a positive Earnings ESP of +0.18% and a Zacks Rank of 3, suggesting a likelihood of beating consensus EPS estimates [20]