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]

Industry Overview - Mobile payments are transforming financial transactions, moving from physical cash to digital transactions through smartphones, tablets, and wearables, creating a dynamic financial ecosystem [2][3] - The global mobile payments market is projected to grow from $3.84 trillion in 2024 to $26.53 trillion by 2032, reflecting a 27% CAGR, indicating strong momentum in the sector [6] Technological Advancements - Emerging technologies like blockchain and artificial intelligence are enhancing transparency, fraud detection, and transaction speeds, while "super apps" are integrating messaging and shopping into seamless financial experiences [3][4] - Companies are leveraging advanced technologies such as Near Field Communication (NFC) and QR codes to facilitate mobile payments [2] Key Players - Capital One is enhancing its mobile payments leadership with a digital-first banking ecosystem, integrating its mobile app with digital wallets and offering a comprehensive financial hub [8][9][10] - NCR Voyix is innovating in mobile payments for retail and restaurants, introducing solutions like Aloha Pay-At-Table, which improves transaction speed and customer experience [11][12][13] - Affirm is expanding its mobile payments presence through its Buy Now, Pay Later platform, integrating with digital wallets and planning international expansion [14][15][16] - Marqeta is powering mobile payments with its card-issuing platform and has seen a 29% year-over-year increase in total payments volume, while also bridging crypto and fiat transactions [17][18][19] Market Dynamics - The rise of e-commerce and improved digital infrastructure are driving the adoption of modern payment platforms, which serve as comprehensive financial dashboards [5] - Regulatory initiatives are evolving to enhance security, data privacy, and financial inclusion, keeping pace with the rapid growth of mobile payments [6]

Core Viewpoint - NCR Voyix Corporation is set to report its financial results for Q3 2025 on November 6, 2025, before market opening [1] Company Information - NCR Voyix Corporation is a leading global provider of digital commerce solutions [1] - The management team will host a conference call to discuss the financial results at 8:00 a.m. ET on the same day [1] Conference Call Details - Date and time of the conference call: November 6, 2025, at 8:00 a.m. ET [1] - Dial-in numbers: +1 (888) 396-8049 (Toll free) and +1 (416) 764-8646 (Toll) [1]

Core Insights - James Kelly has been appointed as the CEO of NCR Voyix in February of this year, previously serving as the Executive Chair of the Board [1] - Kelly has extensive experience in the payments industry, having previously been the CEO of EVO Payments [1] Company Overview - NCR Voyix is under the leadership of James Kelly, who has a long-standing career in the payments sector [1] - The transition in leadership marks a significant change for NCR Voyix as it aims to enhance its strategic direction in the payments industry [1]

Summary of NCR Voyix Conference Call Company Overview - **Company**: NCR Voyix - **CEO**: Jim Kelly, who took over in February 2023 after serving as Executive Chair of the Board and previously CEO of EVO Payments [1][7] Key Industry Insights - **Industry**: Payments and Point-of-Sale (POS) technology - **Historical Context**: NCR Voyix has transitioned from a hardware-centric company to a platform company, focusing on cloud-native applications to replace legacy systems [10][11] Core Points and Arguments 1. **Balance Sheet Improvement**: The company has focused on addressing its balance sheet, particularly after the spin-off of its ATM business and the sale of its digital banking business [7][8] 2. **Operational Challenges**: NCR Voyix has faced operational challenges, including the impacts of COVID-19 and a failed sale process in 2021-2022, leading to a need for repositioning [8][10] 3. **Customer Retention**: The company boasts a low revenue attrition rate of 1%, indicating strong customer loyalty, primarily among enterprise clients [10] 4. **Platform Transition**: The shift to a platform model is aimed at enhancing customer experience by providing better data access and management capabilities [12][17] 5. **Payments Strategy**: NCR Voyix is focusing on integrating payments into its offerings, with an annual transaction volume of over $1.3 trillion, potentially reaching close to $2 trillion when including fuel transactions [19][20] 6. **Market Positioning**: The company aims to simplify the payment process for customers by offering an end-to-end solution, reducing the complexity of dealing with multiple vendors [20][21] 7. **Revenue Growth Timeline**: Expected revenue growth from the new payments strategy and cloud software is anticipated to begin showing results in the fourth quarter of the current year, with significant growth expected in the following year [27][28] 8. **Self-Checkout Technology**: The self-checkout segment remains important, with ongoing efforts to reduce shrinkage through technology improvements [38][40] 9. **Tariff Impact**: The company has estimated a tariff impact of $8 million to $12 million, which is expected to be a permanent price increase, and plans to pass some costs onto customers [43][48] 10. **Service Organization**: NCR Voyix has a robust service organization with 8,000 employees dedicated to customer support, which is seen as a competitive advantage [54][56] Additional Important Insights - **Customer Engagement**: The CEO has personally engaged with over 70 customers to understand their needs and expectations [11][12] - **AI and Technology**: The company is exploring AI to enhance its product offerings and improve operational efficiency [67] - **Financial Metrics**: The company has removed $240 million in costs and is focused on margin expansion through automation and efficiency improvements [75][76] - **Future Outlook**: The CEO expresses optimism about the company's future, citing a strong customer base and employee tenure as key strengths [81][82] This summary encapsulates the key points discussed during the NCR Voyix conference call, highlighting the company's strategic direction, operational challenges, and future growth opportunities.

Industry Overview - Mobile payments have evolved into a comprehensive financial ecosystem, driven by fintech innovation and smartphone adoption, with global fintech investment reaching $44.7 billion in H1 2025 despite economic challenges [2] - The global mobile payments market was valued at $3.84 trillion in 2024 and is projected to grow to $4.97 trillion in 2025, with an expected surge to $26.53 trillion by 2032, reflecting a 27% CAGR [4] Key Players - Capital One is enhancing its mobile payments capabilities through a digital-first banking platform and a robust credit card network, integrating with digital wallets like Apple Pay and Google Pay [5][7] - PayPal serves 438 million active accounts globally, leveraging unmatched transaction data to provide merchants with insights that enhance customer loyalty and sales [8] - Marqeta's next-gen card issuing platform supports businesses in embedding digital payments into their applications, with a 29% year-over-year increase in total processing volume to $91 billion in Q2 2025 [13] - NCR Voyix is innovating in mobile payments for retail and restaurant sectors, with solutions that improve speed and customer experience, achieving a 16% year-over-year growth in platform sites [16] Technological Innovations - Emerging technologies like blockchain and AI are enhancing transaction transparency, processing speed, and fraud mitigation [2] - PayPal's "Tap to Pay" feature utilizes NFC technology to convert smartphones into contactless payment terminals, facilitating seamless mobile e-commerce [10] - Marqeta's open API architecture allows for customizable payment experiences, supporting real-time processing and secure interactions [12] Market Trends - The COVID-19 pandemic accelerated the demand for contactless payment solutions, prompting regulatory responses focused on data privacy and financial inclusion [4] - The rise of "super apps" like WeChat Pay and Alipay is transforming consumer behavior by integrating various services into a single platform [2] - The growth of e-commerce and improved digital infrastructure are significant factors driving the adoption of mobile payments [3]