Company Performance - NCR Voyix reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, but down from $0.13 per share a year ago [1] - The earnings surprise for the quarter was 350%, contrasting with a previous quarter where the company reported a loss of $0.08 against an expected earnings of $0.07, resulting in a surprise of -214.29% [2] - The company generated revenues of $617 million for the quarter, surpassing the Zacks Consensus Estimate by 2.32%, but down from $862 million in the same quarter last year [3] Stock Performance - NCR Voyix shares have declined approximately 36.8% since the beginning of the year, compared to a decline of -4.3% for the S&P 500 [4] - The current Zacks Rank for NCR Voyix is 3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $639.66 million, and for the current fiscal year, it is $0.70 on revenues of $2.57 billion [8] - The outlook for the industry, specifically the Computer - Integrated Systems sector, is currently in the bottom 39% of over 250 Zacks industries, which may impact the stock's performance [9]

Revenue Performance - Revenue for the three months ended March 31, 2025, was $617 million, down 13% compared to the prior year period[161] - Total revenue for Q1 2025 decreased by 13% to $617 million, down from $710 million in Q1 2024[176] - Retail segment revenue decreased by 14% to $420 million for the three months ended March 31, 2025, down from $491 million in 2024[192] - Restaurants segment revenue decreased by 5% to $191 million for the three months ended March 31, 2025, compared to $202 million in 2024[194] Revenue Breakdown - Recurring revenue increased by 2% year-over-year, comprising 66% of total consolidated revenue[161] - Product revenue decreased by 31% to $153 million, while service revenue decreased by 5% to $464 million[163] - Product revenue fell by 31% to $153 million in Q1 2025, primarily due to a decline in SCO and POS hardware revenues[176] - Service revenue decreased by 5% to $464 million in Q1 2025, attributed to declines in professional services and maintenance revenue[176] - Annualized recurring revenue (ARR) for Retail increased by 4% to $1,068 million, while ARR for Restaurants decreased by 1% to $551 million[174] Profitability Metrics - Adjusted EBITDA for the quarter was $75 million, up 19% compared to the prior year period[161] - Adjusted EBITDA for Q1 2025 increased by 19% to $75 million, compared to $63 million in Q1 2024, representing 12.2% of total revenue[166] - Adjusted EBITDA for the Retail segment decreased by 24% to $65 million for the three months ended March 31, 2025, compared to $86 million in 2024[195] - Adjusted EBITDA for the Restaurants segment increased by 7% to $59 million for the three months ended March 31, 2025, compared to $55 million in 2024[196] Net Income and Loss - Net loss from continuing operations attributable to NCR Voyix was $20 million, compared to a net loss of $71 million in the prior year period[161] - Net income attributable to NCR Voyix for Q1 2025 was $(20) million, a 72% improvement from $(71) million in Q1 2024[166] Expenses and Costs - Selling, general, and administrative expenses rose to $115 million in Q1 2025, up from $110 million in Q1 2024, reflecting strategic initiatives[179] - Research and development expenses decreased by 15% to $40 million in Q1 2025, compared to $47 million in Q1 2024[180] - Interest expense significantly decreased by 62% to $15 million in Q1 2025, down from $39 million in Q1 2024, due to reduced total debt[182] - Cumulative expenses related to a cyber ransomware incident reached $47 million, with $36 million recovered under insurance policies[152] Cash and Liquidity - Cash and cash equivalents totaled $573 million as of March 31, 2025, with total debt at $1.1 billion[198] - Net cash used in operating activities was $42 million for the three months ended March 31, 2025, compared to $35 million used in the same period of 2024[201] - Capital expenditures were approximately $39 million for the three months ended March 31, 2025, down from $61 million in 2024[202] - The company has a borrowing capacity of approximately $500 million under its revolving credit facility as of March 31, 2025[213] - The company believes it has sufficient liquidity to meet expected pension, postemployment, and postretirement plan contributions, as well as other material cash requirements beyond March 31, 2025[214] Market and Economic Conditions - The company is monitoring macroeconomic trends, including inflation and tariffs, which may impact revenue and profitability[158] - The company is subject to market risks primarily from changes in foreign currency exchange rates and interest rates, managing these risks through derivatives[222] - A 10% appreciation in the value of the U.S. Dollar against foreign currencies would decrease the fair value of the hedge portfolio by $6 million, while a 10% depreciation would increase it by $8 million as of March 31, 2025[224] - The company has exposure to approximately 25 functional currencies, which can significantly impact results due to foreign currency exchange rate changes[223] Strategic Initiatives - The company completed the sale of its Digital Banking segment for $2.45 billion in cash, with potential additional contingent consideration of up to $100 million[149] - The transition of the hardware business to an ODM model is expected to become effective during 2025, allowing for commission revenue from hardware sales[151] - The company expects to achieve anticipated cost savings and benefits related to the Hardware Business Transition, although challenges remain[219] - Forward-looking statements indicate expectations regarding demand for solutions and the impact on financial results in 2025, subject to various risks and uncertainties[218] Fraud and Risk Management - The company identified fraudulent ACH disbursements totaling $34 million, recovering approximately $16 million to date[153] - The company did not have any significant concentration of credit risk related to financial instruments as of March 31, 2025[229] - Approximately 100% of the company's borrowings were on a fixed rate basis as of March 31, 2025, with no outstanding interest rate derivative contracts[226]

Q1 2025 Earnings Report May 8, 2025 N Y S E : V Y X 1 Notes to Investors SPIN-OFF INFORMATION. On October 16, 2023, NCR Voyix completed the spin-off of NCR Atleos Corporation ("NCR Atleos") as an independent, publicly traded company. The historical financial results of NCR Atleos are reflected as discontinued operations in NCR Voyix's consolidated financial statements for periods prior to the completion of the spin-off. Accordingly, the financial information included in this presentation and the associated ...

NEWS RELEASE NCR Voyix Reports First Quarter 2025 Results ATLANTA, May 8, 2025 - NCR Voyix Corporation (NYSE: VYX) ("NCR Voyix" or the "Company"), a leading global provider of digital commerce solutions, reported financial results today for the three months ended March 31, 2025. First Quarter Financial Highlights 1 • Revenue was $617 million compared to $710 million in the prior year period. • Net loss from continuing operations attributable to NCR Voyix was $20 million, compared with a net loss of $71 mill ...

Company Overview - NCR Voyix (VYX) is expected to report a year-over-year decline in earnings due to lower revenues, with a consensus estimate of $0.02 per share, reflecting an 84.6% decrease [3][12] - Revenues are projected to be $603 million, down 30.1% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for May 8, 2025, and could lead to stock price movement depending on whether the results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised 83.33% higher in the last 30 days, indicating a more optimistic outlook from analysts [4][10] Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +50% for NCR Voyix, suggesting a likelihood of beating the consensus EPS estimate [11] - The stock currently holds a Zacks Rank of 3, indicating a hold position, which combined with the positive Earnings ESP suggests a potential earnings beat [11][18] Historical Performance - In the last reported quarter, NCR Voyix was expected to post earnings of $0.07 per share but instead reported a loss of $0.08, resulting in a surprise of -214.29% [12] - Over the past four quarters, the company has only beaten consensus EPS estimates once [13] Industry Comparison - Advanced Micro Devices (AMD), a peer in the Zacks Computer - Integrated Systems industry, is expected to report earnings of $0.93 per share, reflecting a year-over-year increase of 50% [17] - AMD's revenues are projected to be $7.12 billion, up 30.1% from the previous year, with a recent EPS estimate revision of 2.7% down [17][18]

As a result of discontinued operations treatment and post-2023 transfers and planned transfers of NCR Atleos-related operations in foreign countries, NCR Voyix's GAAP and non-GAAP combined segment results, segment results and consolidated results in this release may not be comparable with results and estimates previously reported. To provide enhanced comparability of combined segment results and consolidated results between periods, NCR Voyix has provided Normalized Adjusted EBITDA, which adjusts for these ...

Financial Data and Key Metrics Changes - Reported revenue for Q4 2024 was $682 million, with normalized revenue at $678 million, reflecting a decline of 14% due to expected weakness in hardware sales [36] - Software and services revenue declined 2% to $521 million, while adjusted EBITDA increased 75% to $114 million, with margin expanding 850 basis points to 16.7% [38][39] - Total adjusted free cash flow unrestricted was $72 million for the quarter, representing a conversion rate of nearly 64% when excluding restructuring [44] Business Line Data and Key Metrics Changes - In the restaurant segment, software revenue increased 3% to $91 million, while services revenue also increased 3% to $72 million, but total segment revenue declined 5% to $211 million due to hardware decline [40] - In the retail segment, software revenue declined 3% to $155 million, while services revenue increased 4% to $193 million, leading to a total segment revenue decline of 15% to $461 million [42] - Software ARR increased 4% and total segment ARR increased 5% across the company [39] Market Data and Key Metrics Changes - The company signed more than 200 new software and services customers in the restaurant segment and more than 35 customers in the retail segment during Q4 [22][28] - The platform sites increased by 26% year-over-year, reaching approximately 74,000 sites [39] Company Strategy and Development Direction - The company aims to transition to a primarily recurring software and services model, with expectations to improve recurring revenue composition from approximately 60% to 75% once the ODM is operational [33] - A five-year non-exclusive agreement with Worldpay was established to enhance payment capabilities for enterprise customers, with expectations to process over $500 billion in payments through point-of-sale systems in 2024 [19] - The company plans to launch several enterprise platform solutions in 2025, with a focus on enhancing capabilities for existing customers and attracting new ones [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in both restaurant and retail segments, highlighting strong demand for next-generation solutions and services [64][106] - The company anticipates a decline in revenue in Q1 2025 due to a significant hardware refresh from a major retail customer, but expects adjusted EBITDA to demonstrate high-teens growth compared to Q1 2024 [53] - Management acknowledged challenges in the hardware market due to customers delaying refreshes, but noted that the rate of revenue decline is expected to moderate as the year progresses [84] Other Important Information - The company repurchased 4 million shares for approximately $56 million under its share repurchase program [46] - Total inventory at year-end was $208 million, with expectations of a cash flow benefit from the ODM transition [51] Q&A Session Summary Question: Timing and benefits of the payments agreement - Management expects the new payment system to be operational by the end of summer 2025, with significant revenue potential from the agreement with Worldpay [60][61] Question: Opportunities in 2025 - Management highlighted untapped potential in next-generation solutions and recurring revenue models, with significant customer interest in upcoming product launches [64] Question: Software services outlook and licensing exposure - Management indicated that approximately $30 million to $40 million of one-time software license revenue remains, but this will diminish as the company shifts to subscription models [74][75] Question: Hardware outlook and revenue comparisons - Management noted that hardware revenue is expected to decline significantly due to customer delays in refreshes, but anticipates a moderation in revenue decline as the year progresses [84] Question: Government contract details - A longstanding relationship with the Defense Commissary Agency was expanded, with incremental revenue expected to ramp up towards the end of Q1 2025 [89] Question: Retail environment and growth expectations - Management reported active conversations and opportunities in the retail market, with a focus on improving efficiencies and addressing shrinkage issues [102][106]

Group 1: Earnings Performance - NCR Voyix reported a quarterly loss of $0.08 per share, missing the Zacks Consensus Estimate of $0.07, compared to earnings of $0.34 per share a year ago, representing an earnings surprise of -214.29% [1] - The company posted revenues of $682 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.37%, but down from $963 million in the same quarter last year [2] - Over the last four quarters, NCR Voyix has surpassed consensus EPS estimates just once, while topping consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - NCR Voyix shares have declined approximately 15.4% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.11 on revenues of $537.51 million, and $0.64 on revenues of $2.18 billion for the current fiscal year [7] Group 3: Industry Context - The Computer - Integrated Systems industry, to which NCR Voyix belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Spin-Off and Sales - On October 16, 2023, the company completed the spin-off of its ATM-focused business into NCR Atleos Corporation, with no ownership interest retained by NCR Voyix[20]. - The company sold its Digital Banking segment for $2.45 billion in cash, with potential additional contingent consideration of up to $100 million[21]. - The company completed the Spin-Off of NCR Atleos in October 2023 and the sale of its Digital Banking segment in September 2024, which may not yield the anticipated strategic and financial benefits[83]. Business Segments and Operations - Following the Digital Banking Sale, the company now operates in two reportable segments: Retail and Restaurants[23]. - The Retail segment serves enterprise and mid-market retailers, while the Restaurants segment targets various types of food service establishments, enhancing operational efficiency and customer experience[27]. - The company is focusing on small- and medium-sized businesses by increasing indirect sales channels, though the success of these initiatives remains uncertain[75]. Revenue and Financial Performance - Revenue for the year ended December 31, 2024, was $2.8 billion, a decrease of 11% compared to the prior year[214]. - Recurring revenue increased by 1% from the prior year, comprising 58% of total consolidated revenue[214]. - Adjusted EBITDA was $347 million, up 3% compared to the prior year[214]. Strategic Focus and Innovation - The company is focusing on driving subscription-based revenue and expanding its cloud solutions, aiming for improved cash flows and operational efficiency[26]. - Investments in innovative products and managed services are prioritized to enhance product quality and support customer needs[28]. - The company aims to enhance its market position by expanding its share of wallet among existing customers and attracting new customers through cloud-based solutions[213]. Risks and Compliance - The company faces risks related to cybersecurity, data privacy, and competition, which could adversely affect its business and financial condition[69]. - The company is subject to various evolving laws and regulations, which may require substantial compliance costs and could impact its operations[58]. - The company faces risks related to compliance with various international laws and regulations, including anti-corruption laws and economic sanctions, which could adversely affect its financial condition[137]. Intellectual Property and R&D - The company owns approximately 875 patents in the United States and has many pending patent applications, highlighting the value of its intellectual property portfolio[46]. - Research and development expenses increased to $157 million in 2024 from $139 million in 2023 and $116 million in 2022, indicating a focus on innovation and competitive positioning[44]. - The company faces risks related to potential challenges to its intellectual property rights, which could affect its competitive position[109]. Employee and Organizational Effectiveness - As of December 31, 2024, the company employed nearly 14,000 full-time employees globally, with a decrease in overall headcount during fiscal 2024 as part of its strategy to improve organizational effectiveness[54]. - The company’s ability to attract and retain key employees is critical for meeting its business objectives, and failure to do so may hinder growth[73]. - The company’s ability to attract and retain key employees is critical for executing its growth strategy, with a competitive labor market posing challenges[133]. Financial Health and Debt - As of December 31, 2024, the company had approximately $1.1 billion in total indebtedness and an additional $480 million available under its senior secured revolving credit facility[154]. - The company’s current level of indebtedness may limit its ability to adapt to changing economic conditions and could place it at a competitive disadvantage[156]. - The company may need to seek additional financing or restructure its debt if cash flows are insufficient to meet its obligations[161]. Cybersecurity and Data Privacy - Cybersecurity threats pose significant risks, including unauthorized access to sensitive data, which could harm the company's reputation and financial performance[97]. - A cyber ransomware incident in April 2023 impacted certain customers, but functionality was fully restored, and a new cloud environment was built[101]. - The company has incurred expenses related to the cyber incident but does not expect these costs to materially affect its financial condition[102]. Market Conditions and Competition - The company faces extensive competition in the retail and restaurant markets, with competitors having greater financial and technical resources[117]. - Economic conditions, including consumer confidence and spending trends, significantly impact the company's business, particularly in the retail and restaurant sectors[130]. - Changes in U.S. or foreign trade policies, including proposed tariffs of up to 25% on imports from Canada and Mexico, could adversely affect the company's operations and supply chain[129].

Financial Performance - Fourth quarter revenue was $682 million, down from $796 million in the prior year, representing a decrease of 14.3%[6] - Net loss from continuing operations was $9 million, significantly improved from a loss of $272 million in the prior year[6] - Adjusted EBITDA for the fourth quarter was $114 million, an increase of 75.4% compared to $65 million in the prior year[6] - Annual revenue for 2024 was $2.8 billion, down from $3.2 billion in the prior year, a decrease of 12.5%[6] - The company reported a net loss of $202 million for the full year, improved from a loss of $729 million in the prior year[6] - Total revenue for the year-to-date (YTD) 2024 was $2,826 million, down from $3,178 million in YTD 2023, representing a decrease of approximately 11.1%[27] - Total revenue for the twelve months ended December 31, 2024, was $2.826 billion, down 11% from $3.178 billion in 2023[31] - The company reported a net loss of $11 million in Q4 2024, compared to a net loss of $319 million in Q4 2023[31] - Net income for the twelve months ended December 31, 2024, was $957 million, a significant improvement from a net loss of $423 million in 2023[38] Revenue Breakdown - Annual recurring revenue (ARR) increased to $1.64 billion, up from $1.56 billion in the prior year, a growth of 5.1%[6] - Retail segment revenue decreased by 15% to $461 million in Q4 2024, while restaurant segment revenue decreased by 5% to $211 million[33] - Software & Services Revenue for Q4 2024 was $521 million, slightly down from $530 million in Q4 2023, showing a decrease of about 1.7%[28] Future Projections - The company expects total revenue for 2025 to be between $2,575 million and $2,650 million[8] - Adjusted EBITDA for 2025 is projected to be between $420 million and $445 million, representing an adjusted EBITDA margin of 16.3% to 16.8%[8] Cash Flow and Assets - Cash and cash equivalents increased to $724 million as of December 31, 2024, from $259 million a year earlier[36] - Total current assets rose to $1.671 billion, up from $1.206 billion in the previous year[36] - Net cash provided by operating activities decreased to $(132) million in 2024 from $694 million in 2023[38] - Net cash provided by investing activities increased to $2,189 million in 2024, compared to $(290) million in 2023[38] - Cash, cash equivalents, and restricted cash at the end of the period increased to $758 million in 2024 from $285 million in 2023[38] Debt and Equity - Long-term debt decreased significantly to $1.098 billion from $2.563 billion year-over-year[36] - The company completed a $100 million share repurchase, acquiring 7.3 million shares[9] - The company incurred stock-based compensation expense of $47 million in 2024, a decrease from $177 million in 2023[38] Operational Metrics - As of December 31, 2024, the company had 74,000 platform sites and 7,000 payment sites, reflecting year-over-year increases of 26% and 8%, respectively[9] - Adjusted free cash flow-unrestricted for Q4 2024 was $114 million, compared to $65 million in Q4 2023, indicating a significant increase[25] - The company’s adjusted EBITDA for the full year 2024 was $347 million, slightly up from $337 million in 2023[25] - Total gross margin for Q4 2024 was $149 million, representing 21.8% of revenue, compared to 13.9% in Q4 2023[31] Other Financial Impacts - The company reported strategic initiatives contributing $30 million to adjusted EBITDA in Q4 2024[25] - The company experienced a foreign currency devaluation impact of $0.08 on diluted earnings per share for Q4 2024[29] - The effect of exchange rate changes on cash was $(24) million in 2024, compared to $(20) million in 2023[38] - Payments on term credit facilities decreased significantly to $(200) million in 2024 from $(1,878) million in 2023[38] - The company reported a loss on divestiture of $1,544 million in 2024, contrasting with a gain of $12 million in 2023[38] - Proceeds from divestiture, net, amounted to $2,458 million in 2024, compared to $96 million in 2023[38]