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]

Company Performance - NCR Voyix reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, compared to a loss of $0.54 per share a year ago [1] - The earnings surprise for this quarter was +35.71%, following a previous quarter where the company delivered a surprise of +350% [2] - The company posted revenues of $666 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.02%, but down from $876 million year-over-year [3] Future Outlook - The sustainability of NCR Voyix's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $666.5 million, and for the current fiscal year, it is $0.79 on revenues of $2.6 billion [8] - The estimate revisions trend for NCR Voyix was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Computer - Integrated Systems industry, to which NCR Voyix belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Part I. Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) NCR Voyix's financial statements for the period ended June 30, 2025, reflect decreased total revenue primarily from lower product sales, a shift from net loss to slight net income from continuing operations due to reduced expenses, a decrease in total assets driven by reduced cash, and negative operating cash flow heavily impacted by a large tax payment related to the Digital Banking Sale [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, total revenue decreased to $666 million from $722 million in Q2 2024, an 8% decline driven by a 24% drop in product revenue, yet the company improved its operating results to $14 million income from operations and achieved breakeven net income attributable to NCR Voyix, a significant improvement from prior-year losses Consolidated Statements of Operations Summary (Q2 & H1) | In millions, except per share data | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | **$666** | **$722** | **$1,283** | **$1,432** | | Product revenue | $185 | $244 | $338 | $465 | | Service revenue | $481 | $478 | $945 | $967 | | **Income (loss) from operations** | **$14** | **($34)** | **($6)** | **($53)** | | **Net income (loss) attributable to NCR Voyix** | **$0** | **($73)** | **($17)** | **($113)** | | **Diluted net income (loss) per common share** | **($0.03)** | **($0.53)** | **($0.18)** | **($0.84)** | - The company successfully reversed its operating loss from the prior year, achieving **$14 million in operating income** for Q2 2025, compared to a **$34 million loss** in Q2 2024, primarily due to reductions in cost of services, SG&A, and R&D expenses[12](index=12&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, NCR Voyix's total assets decreased to **$3.98 billion** from **$4.45 billion** at year-end 2024, primarily due to a significant reduction in cash and cash equivalents, while total liabilities also decreased to **$2.84 billion**, and total stockholders' equity saw a slight decline Balance Sheet Summary | In millions | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | **$1,222** | **$1,671** | | Cash and cash equivalents | $276 | $722 | | **Total assets** | **$3,984** | **$4,452** | | **Total current liabilities** | **$1,054** | **$1,420** | | **Long-term debt** | **$1,099** | **$1,098** | | **Total liabilities** | **$2,841** | **$3,245** | | **Total stockholders' equity (deficit)** | **$867** | **$931** | - The company's cash position decreased substantially by **$446 million** during the first six months of 2025[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company experienced a net cash outflow of **$284 million** from operating activities, a sharp reversal from the prior year due to a significant tax payment, with investing activities using **$75 million** and financing activities using **$86 million**, resulting in an overall **$440 million** decrease in cash, cash equivalents, and restricted cash Cash Flow Summary (Six Months Ended June 30) | In millions | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | **($284)** | **$27** | | **Net cash provided by (used in) investing activities** | **($75)** | **($81)** | | **Net cash provided by (used in) financing activities** | **($86)** | **$15** | | Effect of exchange rate changes | $5 | ($14) | | **Increase (decrease) in cash, cash equivalents, and restricted cash** | **($440)** | **($53)** | | Cash, cash equivalents and restricted cash at beginning of period | $758 | $285 | | **Cash, cash equivalents and restricted cash at end of period** | **$318** | **$232** | - Financing activities included **$69 million** for repurchases of common stock in the first half of 2025, a change from zero repurchases in the prior-year period[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant corporate actions including the completed spin-off of NCR Atleos and the sale of the Digital Banking business, both now discontinued operations, alongside the transition of its hardware business to an outsourced model, segment information for Retail and Restaurants, approximately **$1.1 billion** in debt obligations, and ongoing commitments and contingencies, notably significant environmental liabilities related to the Kalamazoo River - The company completed the spin-off of NCR Atleos on October 16, 2023, and the sale of its Digital Banking segment on September 30, 2024, with both now reported as discontinued operations[24](index=24&type=chunk)[26](index=26&type=chunk) - NCR Voyix announced a commercial agreement with Ennoconn to transition its self-checkout and point-of-sale hardware businesses to an outsourced design and manufacturing (ODM) model[27](index=27&type=chunk) - As of June 30, 2025, the company's remaining performance obligations were approximately **$1.1 billion**, with over three-quarters expected to be recognized as revenue in the next 12 months[40](index=40&type=chunk) - The company has a total reserve of **$134 million** for the Kalamazoo River environmental matter as of June 30, 2025, but notes that potential liability could more than double this amount[117](index=117&type=chunk)[118](index=118&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the 8% YoY revenue decline in Q2 2025 to **$666 million**, primarily due to lower hardware sales, offset by 4% recurring revenue growth and a 20% increase in Adjusted EBITDA to **$95 million**, while liquidity was impacted by a **$284 million** tax payment leading to negative operating cash flow, with strategic focus on an outsourced hardware model and software/services-led offerings [Overview](index=32&type=section&id=Overview) NCR Voyix, a global provider of digital commerce solutions for retail and restaurants, has undergone significant transformation, completing the spin-off of NCR Atleos and the sale of its Digital Banking business, transitioning its hardware business to an outsourced model, and continues to manage the financial impact of a 2023 cyber ransomware incident and fraudulent ACH disbursements - The company completed the spin-off of NCR Atleos on October 16, 2023, and the sale of its Digital Banking business on September 30, 2024, with both now treated as discontinued operations[153](index=153&type=chunk)[154](index=154&type=chunk) - The company is transitioning its self-checkout and point-of-sale hardware business to an outsourced design and manufacturing (ODM) model with Ennoconn, which will change its revenue recognition for hardware to a net commission basis[156](index=156&type=chunk) - As of June 30, 2025, the company has incurred **$47 million** in expenses related to a 2023 cyber ransomware incident and has recovered **$36 million** through insurance[160](index=160&type=chunk) - Fraudulent ACH disbursements totaling **$34 million** were identified in February 2024, with approximately **$16 million** recovered as of June 30, 2025[161](index=161&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) For Q2 2025, total revenue fell 8% YoY to **$666 million**, and 10% for H1 2025 to **$1.28 billion**, driven by a significant drop in product revenue, though service revenue grew 1% and recurring revenue increased 4% to 63.4% of total revenue, while gross margin improved to 23.0% and operating expenses decreased, leading to a **$14 million** operating income in Q2, reversing a prior-year loss Q2 2025 vs Q2 2024 Performance | In millions | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total revenue | $666 | $722 | (8)% | | Product revenue | $185 | $244 | (24)% | | Service revenue | $481 | $478 | 1% | | Total gross margin | $153 | $126 | 21% | | Income (loss) from operations | $14 | ($34) | n/m | - Recurring revenue grew **4%** in Q2 2025 to **$422 million** and now constitutes **63.4%** of total revenue, up from 56.2% in the prior year, highlighting the company's strategic shift[175](index=175&type=chunk) - The Retail segment's revenue decreased by **12%** in Q2 2025 due to lower hardware and software license sales, while the Restaurants segment's revenue increased by **2%**, driven by payments processing and hardware maintenance[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk) - Adjusted EBITDA for Q2 2025 was **$95 million**, a **20% increase** from **$79 million** in Q2 2024[178](index=178&type=chunk)[182](index=182&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=45&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held **$276 million** in cash and **$1.1 billion** in total debt, with liquidity significantly impacted by a **$284 million** tax payment that led to negative **$284 million** operating cash flow and negative **$40 million** adjusted free cash flow, though **$478 million** remains available under its revolving credit facility, providing sufficient liquidity for obligations Liquidity Position as of June 30, 2025 | In millions | Amount | | :--- | :--- | | Cash and cash equivalents | $276 | | Total debt | $1,100 | | Borrowing capacity under credit facility | $478 | - Operating cash flow was negative **$284 million** for the first six months of 2025, compared to a positive **$27 million** in the prior year, driven by a **$284 million** tax payment on the Digital Banking Sale[229](index=229&type=chunk) - The company repurchased **$69 million** of its common stock during the first six months of 2025 under its share repurchase program[231](index=231&type=chunk) - Adjusted free cash flow for the six months ended June 30, 2025 was negative **$40 million**[233](index=233&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is primarily exposed to market risks from foreign currency exchange rates across approximately 25 functional currencies, managed through hedging, and interest rates, with approximately 100% of borrowings at a fixed rate as of June 30, 2025, minimizing interest rate risk, while credit risk from customers is monitored with no significant concentrations reported - The company has exposure to approximately **25 functional currencies** and uses financial instruments like forward contracts to hedge its main transactional exposures[248](index=248&type=chunk) - As of June 30, 2025, approximately **100%** of the company's debt was on a fixed-rate basis, mitigating exposure to interest rate fluctuations, with no interest rate derivative contracts outstanding[251](index=251&type=chunk) - A sensitivity analysis showed that a hypothetical **10% appreciation** of the U.S. dollar would decrease the fair value of the hedge portfolio by **$2 million**, while a **10% depreciation** would increase it by **$3 million**[249](index=249&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, ensuring timely and accurate reporting of SEC-required information, with no material changes to internal control over financial reporting during the second quarter of 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[255](index=255&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[256](index=256&type=chunk) Part II. Other Information [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a pending appeal in a class-action lawsuit concerning deferred compensation plans where a court ruled against it, and manages significant environmental liabilities from historical operations, notably the Kalamazoo River, for which it holds a **$134 million** reserve, with NCR Atleos obligated to contribute **50%** of costs for certain matters after an annual threshold - A court entered a final judgment against the company in a class-action lawsuit regarding deferred compensation plans, and the company has appealed the decision and filed a **$45 million** supersedeas bond to stay the judgment[98](index=98&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - The company retains responsibility for historical environmental liabilities, with NCR Atleos obligated to contribute **50%** of costs for certain matters (including the Kalamazoo River) after an annual **$15 million** funding threshold is met[103](index=103&type=chunk) - The reserve for the Kalamazoo River environmental matter was **$134 million** as of June 30, 2025, and the company notes that the ultimate liability could potentially more than double this amount[117](index=117&type=chunk)[118](index=118&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those described in its Annual Report on Form 10-K for the year ended December 31, 2024, and investors are advised to consider the previously disclosed risk factors - The company states that there have been no material changes in its risk factors from those described in the 2024 Annual Report on Form 10-K[260](index=260&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On May 6, 2025, the Board amended the company's share repurchase program, increasing total authority to **$200 million** and expanding it to include Series A preferred stock, under which approximately **0.83 million** shares were repurchased for about **$7.3 million** during Q2 2025, with **$200 million** remaining available for future repurchases as of June 30, 2025 - On May 6, 2025, the Board amended the share repurchase program, increasing the total aggregate authority to **$200 million** and expanding it to include both common and Series A preferred stock[261](index=261&type=chunk) Share Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Remaining Authority (in millions) | | :--- | :--- | :--- | :--- | :--- | | April 2025 | 830,385 | $8.86 | 825,808 | $28 | | May 2025 | 32,456 | $10.56 | — | $200 | | June 2025 | 2,129 | $10.82 | — | $200 | - The company's ability to repurchase stock is subject to restrictions under its credit facilities and senior note indentures, which are based on formulas including consolidated net income and leverage tests[264](index=264&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) During the fiscal quarter ended June 30, 2025, no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the second quarter of 2025[266](index=266&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications by the principal executive and financial officers and the Interactive Data File (iXBRL) - The exhibits include CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and the company's financial statements formatted in iXBRL[269](index=269&type=chunk)

Q2 2025 Financial Performance - Revenue for Q2 2025 was $422 million recurring and $244 million non-recurring[14] - Adjusted EBITDA for Q2 2025 was $95 million, a 20% increase compared to Q2 2024[14] - Diluted EPS for Q2 2025 was $(0.02), while Non-GAAP Diluted EPS was $0.19[14] - Recurring revenue increased by 4% in Q2 2025[14] YTD Q2 2025 Financial Performance - YTD Q2 2025 recurring revenue was $829 million, while non-recurring revenue was $454 million[27] - YTD Q2 2025 Adjusted EBITDA was $170 million, a 20% increase compared to YTD Q2 2024[27] - YTD Q2 2025 Diluted EPS was $(0.19), while Non-GAAP Diluted EPS was $0.27[27] - Recurring revenue increased by 3% YTD Q2 2025[27] FY 2025 Outlook - The company projects total revenue between $2575 million and $2650 million for FY 2025[21] - The company projects adjusted EBITDA between $420 million and $445 million for FY 2025[21] - The company projects non-GAAP diluted EPS between $0.75 and $0.80 for FY 2025[21]

```python import urllib.parse import re def url_encode_item_id(item_id): """URL encodes the item_id for page-jump links.""" return urllib.parse.quote(item_id) def remove_trailing_period(text): """Removes a trailing period from a string if present.""" if text.endswith('.'): return text[:-1] return text def process_table_content(table_content, table_title): """ Formats Markdown table content, adding units to column headers based on title or value heuristics. """ lines = table_content.strip().split('\n') if not lines: return "" header_line = lines[0] headers = [h.strip() for h in header_line.split('|') if h.strip()] Determine if the table title explicitly states "in millions" title_specifies_millions = "(in millions)" in table_title.lower() processed_headers = [] for h in headers: Check if the header is a numeric column that should have units Exclude headers that are already percentages or specific non-numeric metrics if h.lower() not in ["metric", "segment", "account", "% change yoy", "adj. ebitda margin %", "diluted eps from continuing operations (gaap)", "non-gaap diluted eps", "gross margin %"]: if title_specifies_millions: processed_headers.append(f"{h} (millions)") else: Heuristic: if the original header is a year/quarter/range, or a monetary metric, assume it's a monetary value and add ($M) if not already specified as (millions) if any(char.isdigit() for char in h) or "range" in h.lower() or "revenue" in h.lower() or "ebitda" in h.lower() or "cash" in h.lower() or "assets" in h.lower() or "liabilities" in h.lower() or "equity" in h.lower() or "debt" in h.lower() or "income" in h.lower() or "margin" in h.lower() or "expense" in h.lower() or "costs" in h.lower() or "compensation" in h.lower(): processed_headers.append(f"{h} ($M)") else: processed_headers.append(h) else: processed_headers.append(h) processed_header_line = "| " + " | ".join(processed_headers) + " |" separator_line = lines[1] data_rows = lines[2:] return "\n".join([processed_header_line, separator_line] + data_rows) def process_insight_content(content, chunk_nums): """ Formats insight content as an unordered list, adds bolding, and appends chunk references. """ processed_lines = [] Split the content into individual logical points, assuming they are separated by newlines raw_points = [p.strip() for p in content.split('\n') if p.strip()] Determine if the chunk_nums provided are meant for individual points or the whole insight If the number of points matches the number of chunk_nums, assume 1-to-1 mapping if len(raw_points) == len(chunk_nums): for i, point_text in enumerate(raw_points): Remove any embedded (chunk_num: X) clean_point_text = re.sub(r'\s*\(chunk_num: \d+\)', '', point_text).strip() Ensure it starts with a bullet point if not clean_point_text.startswith('- '): clean_point_text = '- ' + clean_point_text clean_point_text = remove_trailing_period(clean_point_text) Append the specific chunk reference ref = f"[{chunk_nums[i]}](index={chunk_nums[i]}&type=chunk)" processed_lines.append(f"{clean_point_text}{ref}") else: If no direct 1-to-1 mapping, append all chunk_nums to each point all_refs = "".join([f"[{cn}](index={cn}&type=chunk)" for cn in sorted(chunk_nums)]) for point_text in raw_points: clean_point_text = re.sub(r'\s*\(chunk_num: \d+\)', '', point_text).strip() if not clean_point_text.startswith('- '): clean_point_text = '- ' + clean_point_text clean_point_text = remove_trailing_period(clean_point_text) processed_lines.append(f"{clean_point_text}{all_refs}") return "\n".join(processed_lines) def generate_report_outline(outline_data): """ Generates a professionally structured report outline in Markdown format. """ markdown_output = [] def process_item(item): level = item["level"] title = item["title"] summary = item["summary"] item_id = item["item_id"] start_page = item["start_page"] Determine Markdown heading level md_level_char = "" * level URL encode item_id encoded_item_id = url_encode_item_id(item_id) Construct page-jump link page_jump_link = f"[{title}](index={start_page}&type=section&id={encoded_item_id})" Add heading and link markdown_output.append(f"{md_level_char} {page_jump_link}") Add summary if available and not null if summary: Convert units in summary processed_summary = summary processed_summary = re.sub(r'\$(\d+)M', r'$\1 million', processed_summary) processed_summary = re.sub(r'\$(\d+\.\d+)B', r'$\1 billion', processed_summary) processed_summary = remove_trailing_period(processed_summary) markdown_output.append(processed_summary) Process key_points if "key_points" in item and item["key_points"]: for kp in item["key_points"]: if kp["type"] == "table": Table title as subheading (one level deeper than current item's level) table_heading_level = "" * (level + 1) markdown_output.append(f"{table_heading_level} {kp['title']}") markdown_output.append(process_table_content(kp["content"], kp["title"])) elif kp["type"] == "insight": markdown_output.append(process_insight_content(kp["content"], kp.get("chunk_num", []))) Process children recursively if "children" in item and item["children"]: for child in item["children"]: process_item(child) Start processing from the top-level item(s) for item in outline_data: process_item(item) return "\n\n".join(markdown_output) Provided outline content outline = [ {"level": 1, "title": "NCR Voyix Second Quarter 2025 Earnings Release", "item_id": "NCR Voyix Second Quarter 2025 Earnings Release", "summary": None, "children": [ {"level": 2, "title": "Financial & Business Highlights", "item_id": "Financial & Business Highlights", "summary": "In Q2 2025, NCR Voyix reported a decrease in total revenue to $666M but a significant improvement in profitability, with net income from continuing operations reaching $1M compared to a $90M loss in the prior year. Adjusted EBITDA grew to $95M. The company maintained its full-year 2025 outlook and continued strategic initiatives, including share repurchases and growing its platform and payment sites.", "children": [], "end_page": 2, "key_points": [ {"type": "table", "title": "Q2 2025 Financial Highlights vs. Q2 2024", "content": "| Metric | Q2 2025 | Q2 2024 |\n| :--- | :--- | :--- |\n| Revenue | $666M | $722M |\n| Net Income (Loss) from Continuing Operations | $1M | $(90)M |\n| Adjusted EBITDA | $95M | $79M |\n| Diluted EPS from Continuing Operations | $(0.02) | N/A |\n| Non-GAAP Diluted EPS | $0.19 | N/A |\n| Software & Services Revenue | $499M | $501M |\n| ARR | $1.68B | $1.60B |\n| Software ARR | $799M | $748M |", "chunk_num": [6]}, {"type": "table", "title": "Full-Year 2025 Outlook", "content": "| Metric | Outlook Range |\n| :--- | :--- |\n| Total Revenue | $2,575M – $2,650M |\n| Software and Services Revenue | $1,995M – $2,020M |\n| Hardware Revenue | $580M – $630M |\n| Adjusted EBITDA | $420M – $445M |\n| Non-GAAP Diluted EPS | $0.75 - $0.80 |\n| Adjusted Free Cash Flow - Unrestricted | $170M - $190M |", "chunk_num": [5]}, {"type": "insight", "content": "CEO James G. Kelly expressed encouragement with recent progress in executing key strategic initiatives, including product innovation, expanding payments capabilities, and enhancing global services.", "chunk_num": [5]}, {"type": "insight", "content": "The company grew its platform sites by 16% and payment sites by 3% year-over-year as of June 30, 2025. Additionally, it repurchased approximately 826 thousand shares for $7 million during the second quarter.", "chunk_num": [9]} ], "start_page": 1}, {"level": 2, "title": "Financial Statements", "item_id": "Financial Statements", "summary": "The consolidated financial statements detail the company's performance. The income statement shows a year-over-year revenue decline but improved gross margins and a shift to operating income in Q2. The balance sheet indicates a reduction in cash and total assets since year-end 2024. The cash flow statement reveals a significant use of cash from operations in the first half of 2025, contrasting with cash generation in the prior year.", "children": [ {"level": 3, "title": "Consolidated Statements of Operations", "item_id": "Consolidated Statements of Operations", "summary": "For Q2 2025, total revenue decreased to $666 million from $722 million in Q2 2024. However, gross margin improved from 17.5% to 23.0%, and the company swung from a $34 million operating loss to a $14 million operating income. Net income from continuing operations was $1 million, a significant turnaround from a $90 million loss in the prior-year quarter.", "end_page": 9, "key_points": [ {"type": "table", "title": "Consolidated Statements of Operations (in millions)", "content": "| Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 |\n| :--- | :--- | :--- | :--- | :--- |\n| Total Revenue | $666 | $722 | $1,283 | $1,432 |\n| Total Gross Margin | $153 | $126 | $288 | $264 |\n| Gross Margin % | 23.0% | 17.5% | 22.4% | 18.4% |\n| Income (Loss) from Operations | $14 | $(34) | $(6) | $(53) |\n| Income (Loss) from Continuing Operations | $1 | $(90) | $(19) | $(161) |", "chunk_num": [29]} ], "start_page": 9}, {"level": 3, "title": "Revenue and Adjusted EBITDA Summary by Segment", "item_id": "Revenue and Adjusted EBITDA Summary by Segment", "summary": "In Q2 2025, the Restaurants segment revenue grew 2% to $205 million with a 10% increase in Adjusted EBITDA to $68 million. The Retail segment saw revenue decline 12% to $454 million, but its Adjusted EBITDA decreased by a smaller 7% to $81 million, with its margin improving. Overall company Adjusted EBITDA increased 20% to $95 million for the quarter.", "end_page": 10, "key_points": [ {"type": "table", "title": "Q2 2025 Segment Performance (in millions)", "content": "| Segment | Revenue | % Change YoY | Adjusted EBITDA | % Change YoY | Adj. EBITDA Margin % |\n| :--- | :--- | :--- | :--- | :--- | :--- |\n| Retail | $454 | (12)% | $81 | (7)% | 17.8% |\n| Restaurants | $205 | 2% | $68 | 10% | 33.2% |\n| **Total** | **$666** | **(8)%** | **$95** | **20%** | **14.3%** |", "chunk_num": [31]} ], "start_page": 10}, {"level": 3, "title": "Consolidated Balance Sheets", "item_id": "Consolidated Balance Sheets", "summary": "As of June 30, 2025, NCR Voyix's total assets stood at $3.98 billion, down from $4.45 billion at year-end 2024, primarily driven by a decrease in cash and cash equivalents from $722 million to $276 million. Total liabilities also decreased to $2.84 billion from $3.25 billion, resulting in a slight decline in total stockholders' equity to $867 million.", "end_page": 11, "key_points": [ {"type": "table", "title": "Key Balance Sheet Items (in millions)", "content": "| Account | June 30, 2025 | Dec 31, 2024 |\n| :--- | :--- | :--- |\n| Cash and cash equivalents | $276 | $722 |\n| Total current assets | $1,222 | $1,671 |\n| Total assets | $3,984 | $4,452 |\n| Total current liabilities | $1,054 | $1,420 |\n| Long-term debt | $1,099 | $1,098 |\n| Total liabilities | $2,841 | $3,245 |\n| Total stockholders' equity | $867 | $931 |", "chunk_num": [34]} ], "start_page": 11}, {"level": 3, "title": "Consolidated Statements of Cash Flows", "item_id": "Consolidated Statements of Cash Flows", "summary": "For the six months ended June 30, 2025, the company reported a net cash outflow from operating activities of $284 million, a significant reversal from a $27 million inflow in the same period of 2024. Net cash used in investing and financing activities were $75 million and $86 million, respectively. This resulted in a decrease in cash, cash equivalents, and restricted cash of $440 million.", "end_page": 12, "key_points": [ {"type": "table", "title": "Six Months Ended June 30 Cash Flow Summary (in millions)", "content": "| Activity | 2025 | 2024 |\n| :--- | :--- | :--- |\n| Net cash provided by (used in) operating activities | $(284) | $27 |\n| Net cash provided by (used in) investing activities | $(75) | $(81) |\n| Net cash provided by (used in) financing activities | $(86) | $15 |\n| **Increase (decrease) in cash** | **$(440)** | **$(53)** |", "chunk_num": [36]} ], "start_page": 12} ], "end_page": 12, "key_points": [], "start_page": 9}, {"level": 2, "title": "Reconciliation of GAAP to Non-GAAP Measures", "item_id": "Reconciliation of GAAP to Non-GAAP Measures", "summary": "This section provides detailed reconciliations of GAAP financial figures to the non-GAAP metrics management uses to evaluate performance. Key adjustments include removing the impact of depreciation, amortization, stock-based compensation, and transformation costs. For Q2 2025, Net Income of $1 million reconciled to an Adjusted EBITDA of $95 million, and GAAP EPS of $(0.02) reconciled to a Non-GAAP EPS of $0.19.", "children": [ {"level": 3, "title": "Reconciliation to Adjusted EBITDA", "item_id": "Reconciliation to Adjusted EBITDA", "summary": "The company reconciled its Q2 2025 GAAP Net Income of $1 million to a Non-GAAP Adjusted EBITDA of $95 million. Major adjustments included adding back $51 million for depreciation and amortization, $16 million for transformation and restructuring costs, and $14 million for interest expense. This represents a year-over-year increase from an Adjusted EBITDA of $79 million in Q2 2024.", "end_page": 6, "key_points": [ {"type": "table", "title": "Adjusted EBITDA Reconciliation (in millions)", "content": "| Line Item | Q2 2025 | Q2 2024 |\n| :--- | :--- | :--- |\n| Net Income (Loss) from Continuing Operations (GAAP) | $1 | $(90) |\n| Depreciation and amortization | $51 | $52 |\n| Interest expense | $14 | $41 |\n| Transformation and restructuring costs | $16 | $50 |\n| Stock-based compensation expense | $9 | $12 |\n| Other adjustments | $4 | $4 |\n| **Adjusted EBITDA (Non-GAAP)** | **$95** | **$79** |", "chunk_num": [24]} ], "start_page": 6}, {"level": 3, "title": "Reconciliation to Non-GAAP Diluted EPS", "item_id": "Reconciliation to Non-GAAP Diluted EPS", "summary": "For Q2 2025, the GAAP Diluted EPS from continuing operations of $(0.02) was adjusted to a Non-GAAP Diluted EPS of $0.19. Significant adjustments included adding back the per-share impact of transformation and restructuring costs ($0.08), stock-based compensation ($0.05), and acquisition-related amortization ($0.03). This compares favorably to a Non-GAAP Diluted EPS of $(0.20) in Q2 2024.", "end_page": 8, "key_points": [ {"type": "table", "title": "Non-GAAP Diluted EPS Reconciliation", "content": "| Line Item | Q2 2025 | Q2 2024 |\n| :--- | :--- | :--- |\n| Diluted EPS from Continuing Operations (GAAP) | $(0.02) | $(0.65) |\n| Transformation and restructuring costs | $0.08 | $0.26 |\n| Stock-based compensation expense | $0.05 | $0.07 |\n| Acquisition-related amortization of intangibles | $0.03 | $0.04 |\n| Other adjustments | $0.05 | $(0.12) |\n| **Non-GAAP Diluted EPS** | **$0.19** | **$(0.20)** |", "chunk_num": [26]} ], "start_page": 7} ], "end_page": 8, "key_points": [], "start_page": 6}, {"level": 2, "title": "Definitions and Cautionary Statements", "item_id": "Definitions and Cautionary Statements", "summary": "This section outlines the definitions for non-GAAP financial measures and key operational terms used throughout the release, providing clarity on their calculation and management's rationale for their use. It also includes a standard safe harbor statement regarding forward-looking statements, highlighting the inherent risks and uncertainties and directing investors to the company's SEC filings for more detailed risk factors.", "children": [ {"level": 3, "title": "Non-GAAP Financial Measures and Key Terms", "item_id": "Non-GAAP Financial Measures and Key Terms", "summary": "The company defines its key non-GAAP metrics, including Adjusted EBITDA, which excludes items like restructuring costs and stock-based compensation, and Non-GAAP Diluted EPS, which removes non-operational items. It also clarifies operational terms such as 'Annual Recurring Revenue' (ARR), which is calculated as the last three months of recurring revenue multiplied by four, plus certain term-based software licenses.", "end_page": 6, "key_points": [ {"type": "insight", "content": "- **Adjusted EBITDA**: Calculated from GAAP net income by adding back interest, taxes, D&A, stock-based compensation, and other special items like restructuring costs. Used to measure ongoing business performance. (chunk_num: 16)\n- **Non-GAAP Diluted EPS**: Excludes pension adjustments and other special items like amortization of acquisition intangibles and restructuring costs from GAAP EPS to better show underlying operational performance. (chunk_num: 17)\n- **Annual Recurring Revenue (ARR)**: Defined as recurring revenue for the last three months multiplied by four, plus the rolling four quarters of term-based software license arrangements with customer termination rights. (chunk_num: 22)", "chunk_num": [16, 17, 22]} ], "start_page": 5}, {"level": 3, "title": "Forward-Looking Statements", "item_id": "Forward-Looking Statements", "summary": "The release contains forward-looking statements regarding the company's 2025 financial outlook, the impact of trade tariffs, and strategic initiatives. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties. The company cautions that actual results could differ materially and directs readers to its Form 10-K and other SEC filings for a comprehensive discussion of risk factors.", "end_page": 4, "key_points": [ {"type": "insight", "content": "This release includes forward-looking statements concerning the fiscal 2025 outlook, strategic initiatives, and other future events. These statements are subject to risks and uncertainties that could cause actual results to differ materially.", "chunk_num": [12]}, {"type": "insight", "content": "Investors are advised that these statements are made as of the date of the release and the company has no obligation to update them. For a full list of risk factors, investors should consult the company's SEC filings, including the 'Item 1A-Risk Factors' in its most recent Annual Report on Form 10-K.", "chunk_num": [12, 13]} ], "start_page": 4} ], "end_page": 6, "key_points": [], "start_page": 4} ], "end_page": 13, "start_page": 1} ] Generate the Markdown output markdown_report = generate_report_outline(outline) print(markdown_report) ``` [NCR Voyix Second Quarter 2025 Earnings Release](index=1&type=section&id=NCR%20Voyix%20Second%20Quarter%202025%20Earnings%20Release) [Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) In Q2 2025, NCR Voyix reported a decrease in total revenue to $666 million but a significant improvement in profitability, with net income from continuing operations reaching $1 million compared to a $90 million loss in the prior year. Adjusted EBITDA grew to $95 million. The company maintained its full-year 2025 outlook and continued strategic initiatives, including share repurchases and growing its platform and payment sites Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 ($M) | Q2 2024 ($M) | | :--- | :--- | :--- | | Revenue | $666M | $722M | | Net Income (Loss) from Continuing Operations | $1M | $(90)M | | Adjusted EBITDA | $95M | $79M | | Diluted EPS from Continuing Operations | $(0.02) | N/A | | Non-GAAP Diluted EPS | $0.19 | N/A | | Software & Services Revenue | $499M | $501M | | ARR | $1.68B | $1.60B | | Software ARR | $799M | $748M | Full-Year 2025 Outlook | Metric | Outlook Range ($M) | | :--- | :--- | | Total Revenue | $2,575M – $2,650M | | Software and Services Revenue | $1,995M – $2,020M | | Hardware Revenue | $580M – $630M | | Adjusted EBITDA | $420M – $445M | | Non-GAAP Diluted EPS | $0.75 - $0.80 | | Adjusted Free Cash Flow - Unrestricted | $170M - $190M | - CEO James G. Kelly expressed encouragement with recent progress in executing key strategic initiatives, including product innovation, expanding payments capabilities, and enhancing global services[5](index=5&type=chunk) - The company grew its platform sites by **16%** and payment sites by **3%** year-over-year as of June 30, 2025. Additionally, it repurchased approximately **826 thousand shares** for **$7 million** during the second quarter[9](index=9&type=chunk) [Financial Statements](index=9&type=section&id=Financial%20Statements) The consolidated financial statements detail the company's performance. The income statement shows a year-over-year revenue decline but improved gross margins and a shift to operating income in Q2. The balance sheet indicates a reduction in cash and total assets since year-end 2024. The cash flow statement reveals a significant use of cash from operations in the first half of 2025, contrasting with cash generation in the prior year [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total revenue decreased to $666 million from $722 million in Q2 2024. However, gross margin improved from 17.5% to 23.0%, and the company swung from a $34 million operating loss to a $14 million operating income. Net income from continuing operations was $1 million, a significant turnaround from a $90 million loss in the prior-year quarter Consolidated Statements of Operations (in millions) | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Six Months 2025 (millions) | Six Months 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $666 | $722 | $1,283 | $1,432 | | Total Gross Margin | $153 | $126 | $288 | $264 | | Gross Margin % | 23.0% | 17.5% | 22.4% | 18.4% | | Income (Loss) from Operations | $14 | $(34) | $(6) | $(53) | | Income (Loss) from Continuing Operations | $1 | $(90) | $(19) | $(161) | [Revenue and Adjusted EBITDA Summary by Segment](index=10&type=section&id=Revenue%20and%20Adjusted%20EBITDA%20Summary%20by%20Segment) In Q2 2025, the Restaurants segment revenue grew 2% to $205 million with a 10% increase in Adjusted EBITDA to $68 million. The Retail segment saw revenue decline 12% to $454 million, but its Adjusted EBITDA decreased by a smaller 7% to $81 million, with its margin improving. Overall company Adjusted EBITDA increased 20% to $95 million for the quarter Q2 2025 Segment Performance (in millions) | Segment | Revenue (millions) | % Change YoY | Adjusted EBITDA (millions) | % Change YoY | Adj. EBITDA Margin % | | :--- | :--- | :--- | :--- | :--- | :--- | | Retail | $454 | (12)% | $81 | (7)% | 17.8% | | Restaurants | $205 | 2% | $68 | 10% | 33.2% | | **Total** | **$666** | **(8)%** | **$95** | **20%** | **14.3%** | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, NCR Voyix's total assets stood at $3.98 billion, down from $4.45 billion at year-end 2024, primarily driven by a decrease in cash and cash equivalents from $722 million to $276 million. Total liabilities also decreased to $2.84 billion from $3.25 billion, resulting in a slight decline in total stockholders' equity to $867 million Key Balance Sheet Items (in millions) | Account | June 30, 2025 (millions) | Dec 31, 2024 (millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $276 | $722 | | Total current assets | $1,222 | $1,671 | | Total assets | $3,984 | $4,452 | | Total current liabilities | $1,054 | $1,420 | | Long-term debt | $1,099 | $1,098 | | Total liabilities | $2,841 | $3,245 | | Total stockholders' equity | $867 | $931 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company reported a net cash outflow from operating activities of $284 million, a significant reversal from a $27 million inflow in the same period of 2024. Net cash used in investing and financing activities were $75 million and $86 million, respectively. This resulted in a decrease in cash, cash equivalents, and restricted cash of $440 million Six Months Ended June 30 Cash Flow Summary (in millions) | Activity | 2025 (millions) | 2024 (millions) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(284) | $27 | | Net cash provided by (used in) investing activities | $(75) | $(81) | | Net cash provided by (used in) financing activities | $(86) | $15 | | **Increase (decrease) in cash** | **$(440)** | **$(53)** | [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP financial figures to the non-GAAP metrics management uses to evaluate performance. Key adjustments include removing the impact of depreciation, amortization, stock-based compensation, and transformation costs. For Q2 2025, Net Income of $1 million reconciled to an Adjusted EBITDA of $95 million, and GAAP EPS of $(0.02) reconciled to a Non-GAAP EPS of $0.19 [Reconciliation to Adjusted EBITDA](index=6&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA) The company reconciled its Q2 2025 GAAP Net Income of $1 million to a Non-GAAP Adjusted EBITDA of $95 million. Major adjustments included adding back $51 million for depreciation and amortization, $16 million for transformation and restructuring costs, and $14 million for interest expense. This represents a year-over-year increase from an Adjusted EBITDA of $79 million in Q2 2024 Adjusted EBITDA Reconciliation (in millions) | Line Item | Q2 2025 (millions) | Q2 2024 (millions) | | :--- | :--- | :--- | | Net Income (Loss) from Continuing Operations (GAAP) | $1 | $(90) | | Depreciation and amortization | $51 | $52 | | Interest expense | $14 | $41 | | Transformation and restructuring costs | $16 | $50 | | Stock-based compensation expense | $9 | $12 | | Other adjustments | $4 | $4 | | **Adjusted EBITDA (Non-GAAP)** | **$95** | **$79** | [Reconciliation to Non-GAAP Diluted EPS](index=7&type=section&id=Reconciliation%20to%20Non-GAAP%20Diluted%20EPS) For Q2 2025, the GAAP Diluted EPS from continuing operations of $(0.02) was adjusted to a Non-GAAP Diluted EPS of $0.19. Significant adjustments included adding back the per-share impact of transformation and restructuring costs ($0.08), stock-based compensation ($0.05), and acquisition-related amortization ($0.03). This compares favorably to a Non-GAAP Diluted EPS of $(0.20) in Q2 2024 Non-GAAP Diluted EPS Reconciliation | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Diluted EPS from Continuing Operations (GAAP) | $(0.02) | $(0.65) | | Transformation and restructuring costs | $0.08 | $0.26 | | Stock-based compensation expense | $0.05 | $0.07 | | Acquisition-related amortization of intangibles | $0.03 | $0.04 | | Other adjustments | $0.05 | $(0.12) | | **Non-GAAP Diluted EPS** | **$0.19** | **$(0.20)** | [Definitions and Cautionary Statements](index=4&type=section&id=Definitions%20and%20Cautionary%20Statements) This section outlines the definitions for non-GAAP financial measures and key operational terms used throughout the release, providing clarity on their calculation and management's rationale for their use. It also includes a standard safe harbor statement regarding forward-looking statements, highlighting the inherent risks and uncertainties and directing investors to the company's SEC filings for more detailed risk factors [Non-GAAP Financial Measures and Key Terms](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Key%20Terms) - **Adjusted EBITDA**: Calculated from GAAP net income by adding back interest, taxes, D&A, stock-based compensation, and other special items like restructuring costs. Used to measure ongoing business performance[16](index=16&type=chunk) - **Non-GAAP Diluted EPS**: Excludes pension adjustments and other special items like amortization of acquisition intangibles and restructuring costs from GAAP EPS to better show underlying operational performance[17](index=17&type=chunk) - **Annual Recurring Revenue (ARR)**: Defined as recurring revenue for the last three months multiplied by four, plus the rolling four quarters of term-based software license arrangements with customer termination rights[22](index=22&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements regarding the company's 2025 financial outlook, the impact of trade tariffs, and strategic initiatives. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties. The company cautions that actual results could differ materially and directs readers to its Form 10-K and other SEC filings for a comprehensive discussion of risk factors - This release includes forward-looking statements concerning the fiscal 2025 outlook, strategic initiatives, and other future events. These statements are subject to risks and uncertainties that could cause actual results to differ materially[12](index=12&type=chunk) - Investors are advised that these statements are made as of the date of the release and the company has no obligation to update them. For a full list of risk factors, investors should consult the company's SEC filings, including the 'Item 1A-Risk Factors' in its most recent Annual Report on Form 10-K[12](index=12&type=chunk)[13](index=13&type=chunk)

Group 1: Value Stocks Performance - Value stocks have underperformed growth peers in recent quarters, potentially making some companies in the value category more attractive due to deeper discounts relative to intrinsic value [1] - Current market volatility and economic uncertainty may present a favorable opportunity for long-term investors in value stocks [2] Group 2: Tsakos Energy Navigation (TEN) - Tsakos Energy Navigation Ltd. provides sea-based crude oil and petroleum transportation services, with a current stock price of $19.44 and a dividend yield of 6.17% [2][4] - The company reported mixed earnings for Q1, with EPS exceeding analyst predictions but revenue falling short by approximately $0.5 million; however, it has a significant backlog of $3.7 billion with an average contract duration of over 12 years [2][3] - Tsakos is on track to sell six older vessels by year-end, following the sale of 14 vessels, which will free up about $100 million for new builds and dividends [3] - The stock's P/E ratio of 4.5 is substantially lower than the transportation sector average of 13.1, indicating potential undervaluation despite a 12% increase in shares this year [4] Group 3: Gray Media (GTN) - Gray Media Inc. operates in television broadcasting and has recently engaged in a station swap with The E.W. Scripps Co., which is expected to enhance growth by creating a duopoly in certain markets [5] - The company refinanced $700 million in debt, extending maturities to 2032, alleviating near-term financial pressure [6] - GTN shares have surged by approximately 58% YTD, but with a P/E ratio of 2.3 compared to the sector average of 21.6, it may still be considered a value play [7] Group 4: NCR Voyix (VYX) - NCR Voyix Corp. specializes in digital commerce technology, reporting a 13% year-over-year revenue decline in Q1, yet still outperforming analyst expectations [9][10] - The company's annual recurring revenue (ARR) now constitutes two-thirds of total sales, indicating a positive shift towards a subscription model with the upcoming launch of its cloud-native Voyage Commerce Platform [10] - VYX shares have increased by about 9% YTD, supported by stock repurchase actions potentially totaling $200 million, while maintaining an attractive price-to-sales ratio of 0.71 [11]