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]

Core Viewpoint - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify their high valuations [1] - A safer approach may involve investing in bargain stocks that have recently shown price momentum [2] Group 2: Stock Analysis - NCR Voyix (VYX) - NCR Voyix (VYX) has seen a price increase of 1.9% over the past four weeks, indicating growing investor interest [3] - VYX has gained 16.1% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.66, suggesting it moves 66% more than the market in either direction [4] - VYX has a Momentum Score of A, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - VYX is trading at a Price-to-Sales ratio of 0.68, indicating it is reasonably valued at 68 cents for each dollar of sales [6] Group 3: Investment Opportunities - VYX is identified as a strong candidate for investment, with potential for further price appreciation [7] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting more investment opportunities [7] - Zacks offers over 45 Premium Screens to help identify winning stock picks based on various investing styles [8]

Group 1: Industry Analysis - The oil and gas industry is characterized as a boom-bust, cyclical sector that requires patience and experience for successful investment [2] - The software area related to NCR Voyix is fast-moving and subject to constant innovation, indicating a need for adaptability in investment strategies [2] Group 2: Company Overview - NCR Voyix (NYSE: VYX) is currently not considered a viable investment option due to the considerable work needed before it can be deemed attractive [2] - The analysis of oil and gas companies includes a comprehensive breakdown of balance sheets, competitive positions, and development prospects [1]

Core Viewpoint - NCR Voyix (VYX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in a company's earnings picture, which is a strong predictor of near-term stock price movements [2][4]. - For NCR Voyix, the recent upgrade reflects an improvement in the company's underlying business, likely leading to an increase in stock price as investors respond positively to this trend [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for NCR Voyix - NCR Voyix is projected to earn $0.79 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for NCR Voyix has increased by 10.3%, reflecting a positive trend in earnings estimates [8].

Summary of the Conference Call Company Overview - The conference call was held at the Oppenheimer Technology Conference featuring NCR Voyex, with CEO Jim Kelly discussing the company's recent performance and strategic direction [1][4]. Key Highlights from the Quarter - The company reported slightly higher revenue than expectations, primarily driven by hardware sales, despite experiencing margin compression [5]. - Earnings met both consensus and internal expectations for the quarter [5]. - The restaurant segment underwent leadership changes following a split in 2023, with a new team now in place, including a chief revenue officer with extensive experience in the restaurant industry [6][7]. Strategic Initiatives - The company is transitioning from a hardware-centric model to a platform-based approach, focusing on software and services [11]. - An agreement with Anicom is in progress, expected to be completed by the end of the year, which will change how revenue is reported, moving from hardware sales to software services and commissions [14][15]. - The company aims to provide clearer financial reporting by separating software, services, and hardware commissions in its P&L [15]. Market Opportunities - The restaurant and retail segments are seeing strong performance, with a focus on acquiring new enterprise customers and improving existing relationships [19][30]. - The company has signed 13 customers for its new microservices cloud-native applications, with positive feedback on the platform [20][21]. - The total spend through the company's point of sale systems is approximately $1.3 trillion, presenting a significant opportunity for growth in payment processing [42][43]. Competitive Landscape - The company faces perception challenges in the SME market but has a strong position in the enterprise space due to its extensive service capabilities [34][36]. - The competitive landscape in the enterprise sector is less crowded, with few competitors able to match the company's service infrastructure [36]. Payment Solutions - The company has partnered with Global Payments to enhance its payment processing capabilities, allowing for an end-to-end solution for customers [40][41]. - The transition to this new payment system is expected to be completed by September, with significant growth potential in payment processing revenue [43][49]. Financial Performance and Capital Allocation - The company has improved its balance sheet by selling a non-core business for $2.5 billion and paying down significant debt [62]. - Future capital allocation will focus on free cash flow generation, with ongoing share buybacks and potential investments in AI to enhance operational efficiency [66][67][69]. Risks and Challenges - The company is facing higher tariffs on products, which may impact costs and pricing strategies moving forward [58][59]. - There is a need to improve billing and collection systems, which are still largely based on legacy infrastructure [63]. Conclusion - NCR Voyex is positioned for growth through strategic shifts towards software and payment solutions, with a focus on enhancing customer relationships and operational efficiency. The company is optimistic about its future prospects, particularly in the payments sector and enterprise market [50][56].

Financial Data and Key Metrics Changes - Total revenue for the quarter was $666 million, a decline of 8% due to continued softness in hardware sales [23] - Recurring revenue increased by 4% to $422 million, improving its percentage of total revenue by over 700 basis points to 63% [23] - Adjusted EBITDA was $95 million, an increase of 20% with a margin expansion of 340 basis points to 14.3% [23] - Software ARR and total segment ARR increased by 7% and 5% respectively [23] Business Line Data and Key Metrics Changes - In the restaurant segment, total revenue increased by 2% to $205 million, with recurring revenue also increasing by 4% to $143 million [24] - The retail segment saw total revenue decline by 12% to $454 million, while recurring revenue increased by 5% to $277 million [24] - Software and payment sites in the restaurant business increased by 41%, while in retail, platform and payment sites increased by 2513% [15][19] Market Data and Key Metrics Changes - The company had nearly 78,000 sites connected to the Boyd's Commerce platform, an increase of 16% year over year [10] - Consumer transaction volume through the VCP was more than 50% higher than the prior year, with over 500 million transaction API calls processed in June alone [11] - The number of consumer orders processed through the VCP increased nearly 60% in the first half of 2025 compared to the prior year [11] Company Strategy and Development Direction - The company plans to launch additional VCP capabilities starting in the fourth quarter and into next year, focusing on enhancing customer experiences and operational efficiencies [6][8] - There is a strong emphasis on integrating payment capabilities with software contracts, reflecting the intertwined nature of these industries [7] - The company is investing in cloud-native technologies and microservices architecture to create a competitive advantage in the market [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, noting no pullback from customers and a strong interest in modernizing infrastructure [30][31] - The company anticipates continued revenue growth and improved margins, particularly in the restaurant segment, which is expected to finish the year at about 32% [46] - Management acknowledged the evolving tariff situation but maintained a stable cost estimate for the year, indicating ongoing monitoring and potential adjustments [9][50] Other Important Information - The company has initiated conversations with about 10% of customers regarding expanded service offerings, including payments [7] - Adjusted free cash flow was $37 million for the quarter, with expectations for a ramp in the second half of the year [40] - The company invested $42 million in capital expenditures during the quarter, with over 80% related to software investments [24] Q&A Session Summary Question: Demand environment across retail and restaurant - Management noted no pullback from customers, with strong interest in modernizing infrastructure and a good spread of demand across product offerings [30][32][34] Question: Free cash flow visibility - Management indicated that Q2 free cash flow was in line with expectations and that they expect to generate more in the second half due to seasonal trends [40] Question: Strength in restaurant EBITDA margin - The strength was attributed to good software and services growth, with expectations for consistent margins throughout the year [45][46] Question: Tariff exposure and mitigation actions - Management confirmed the tariff cost estimate remains unchanged and indicated ongoing discussions with customers regarding shared expenses if tariffs persist [50] Question: Cost savings initiatives - The company has executed a cost program aimed at $100 million in savings, with about 40% realized in the first half and 60% expected in the second half [55] Question: Payment business progression - Management expressed optimism about the payment business, expecting significant growth as they engage with larger customers and streamline services [68][72][94] Question: ARR and backlog for implementation - Software ARR is approaching $800 million, with a positive trend expected to continue as new products are launched [101][103]