Revenue Performance - First quarter 2025 revenue was $980 million, with 76% ($742 million) coming from recurring revenue streams, compared to $1.05 billion and 73% in the prior year period[6][7]. - Total revenue for the three months ended March 31, 2025, was $980 million, a decrease of 6.7% from $1,050 million in the same period of 2024[19]. - Product revenue decreased to $189 million, down 21.3% from $240 million year-over-year, while service revenue slightly decreased to $791 million from $810 million[19]. - The self-service banking segment generated $624 million in revenue, while the network segment contributed $299 million, reflecting a decline of 1% and 4% respectively year-over-year[9]. Profitability Metrics - GAAP net income for the first quarter was $17 million, a significant improvement from a net loss of $8 million in the prior year[6][7]. - First quarter diluted earnings per share were $0.23 on a GAAP basis, compared to $(0.11) in the prior year, while non-GAAP diluted earnings per share increased 56% to $0.64[6][7]. - Adjusted EBITDA for the first quarter grew 9% year-over-year to $175 million, with an adjusted EBITDA margin of 17.9%, up from 15.2% in the prior year[6][7]. - Total gross profit increased to $235 million, representing a gross margin of 24.0%, compared to 21.0% in the prior year[19]. - Adjusted net income attributable to Atleos was $48 million, with an adjusted diluted earnings per share of $0.64 for the three months ended March 31, 2025[33]. Cash Flow and Financial Position - Adjusted free cash flow-unrestricted for the first quarter was $(23) million, indicating a need for improved cash management strategies[7]. - Cash and cash equivalents decreased to $352 million from $419 million at the end of the previous quarter[21]. - Net cash provided by operating activities was $123 million, down from $148 million in the prior year[23]. - Adjusted free cash flow-unrestricted for Q1 2025 was $(23) million, a decline from $69 million in Q1 2024[38]. Customer Growth and Market Strategy - The number of unique customers for ATM as a Service increased by 40% year-over-year, contributing to a 24% increase in revenue from this segment[6]. - The company is focused on expanding its global installed base of 600,000 ATMs to generate incremental services revenue, emphasizing its growth strategy in self-service banking solutions[3]. Guidance and Future Outlook - The company reaffirmed its full-year 2025 guidance, expecting core revenue growth of 3% to 6% and total revenue growth of 1% to 3%[10]. Historical Comparisons - For Q1 2024, Atleos reported a GAAP net loss of $8 million, resulting in a diluted loss per share of $(0.11)[34]. - Non-GAAP adjusted net income for Q1 2024 was $30 million, with a diluted earnings per share of $0.41, reflecting a significant improvement from the GAAP results[34]. - Adjusted EBITDA for Q1 2024 was $160 million, representing 15.2% of revenue, compared to $175 million or 17.9% of revenue in Q1 2025[37]. - Gross profit for Q1 2024 was $221 million, with a gross profit margin of 21.0%[34].
NCR Atleos (NATL) - 2025 Q1 - Quarterly Results