Q2 2025 Earnings Release Performance Highlights & Management Commentary Atleos reported strong Q2 2025 results, meeting or exceeding guidance, driven by robust demand for self-service banking technology and ATM outsourcing, reaffirming full-year guidance and announcing a $200 million share repurchase program - Management highlighted a strong quarter with strategic momentum, robust demand for self-service banking technology, and accelerating interest in ATM outsourcing, leading to a strong order book and backlog2 - The Board of Directors authorized a $200 million share repurchase program with a two-year duration, representing approximately 10% of the current market capitalization35 Q2 2025 Key Highlights | Metric | Value | Growth (YoY) | | :--- | :--- | :--- | | Revenue | $1,100 million | 2% | | Recurring Revenue % | 70% | N/A | | GAAP Net Income | $45 million | 50% | | Adjusted EBITDA | $205 million | 4% | | GAAP Diluted EPS | $0.60 | 46% | | Non-GAAP Diluted EPS | $0.93 | 9% | Financial Results The company's Q2 2025 financial performance showed overall revenue growth driven by the Self-Service Banking segment, offsetting declines in Network and T&T segments Consolidated Financial Performance In Q2 2025, Atleos generated $1.10 billion in revenue, a 2% year-over-year increase, with GAAP net income up 50% to $45 million and Adjusted EBITDA rising 4% to $205 million Q2 2025 Consolidated Operating Results (YoY Comparison, $ in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | 1,100 | 1,080 | 2% | | GAAP Gross Profit | 253 | 251 | 1% | | Adjusted Gross Profit | 275 | 274 | 0% | | GAAP Income from Operations | 120 | 108 | 11% | | Adjusted Income from Operations | 159 | 153 | 4% | | Net Income Attributable to Atleos | 45 | 30 | 50% | | Adjusted EBITDA | 205 | 197 | 4% | | GAAP Diluted EPS | 0.60 | 0.41 | 46% | | Non-GAAP Diluted EPS | 0.93 | 0.85 | 9% | - Net cash used by operating activities was $23 million, while Adjusted free cash flow-unrestricted was $15 million6 Segment Performance The Self-Service Banking segment was the primary growth driver, with revenue increasing 9% and Adjusted EBITDA up 20%, while Network and T&T segments saw mixed revenue and EBITDA changes Q2 2025 Revenue by Segment (YoY Comparison, $ in millions) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Self-Service Banking | 733 | 672 | 9% | | Network | 320 | 326 | (2)% | | T&T | 41 | 51 | (20)% | Q2 2025 Adjusted EBITDA by Segment (YoY Comparison, $ in millions) | Segment | Q2 2025 Adj. EBITDA | Q2 2024 Adj. EBITDA | % Change | | :--- | :--- | :--- | :--- | | Self-Service Banking | 189 | 157 | 20% | | Network | 86 | 101 | (15)% | | T&T | 9 | 8 | 13% | Full Year 2025 Guidance The company reaffirmed its full-year 2025 guidance, projecting total revenue growth of 1% to 3%, Adjusted EBITDA growth of 7% to 10%, and Adjusted free cash flow between $260 million and $300 million Full Year 2025 Guidance | Metric | 2025 Guidance | 2024 Base | | :--- | :--- | :--- | | Core Revenue (constant currency) | 3% to 6% growth | $4,175 million | | Total Revenue (constant currency) | 1% to 3% growth | $4,317 million | | Total Adjusted EBITDA (constant currency) | 7% to 10% growth | $794 million | | Non-GAAP Diluted EPS | 21% to 27% growth | $3.22 | | Adjusted free cash flow-unrestricted | $260 - $300 million | $242 million | Financial Statements The condensed consolidated financial statements detail the company's performance, showing increased net income, growth in assets and liabilities, and a shift to net cash used in operations for Q2 2025 Condensed Consolidated Statements of Operations For Q2 2025, total revenue was $1.104 billion, up from $1.080 billion in the prior year, with net income attributable to Atleos increasing to $45 million from $30 million Statement of Operations Highlights (Three Months Ended June 30, $ in millions) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total revenue | 1,104 | 1,080 | | Total gross profit | 253 | 251 | | Income from operations | 120 | 108 | | Net income attributable to Atleos | 45 | 30 | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $5.814 billion from $5.544 billion at year-end 2024, with total liabilities also rising to $5.462 billion and equity growing to $352 million Balance Sheet Highlights ($ in millions) | ($ in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | 1,976 | 1,758 | | Total assets | 5,814 | 5,544 | | Total current liabilities | 1,887 | 1,707 | | Total liabilities | 5,462 | 5,293 | | Total stockholders' equity | 352 | 251 | Condensed Consolidated Statements of Cash Flows Net cash used by operating activities was $23 million in Q2 2025, a shift from $9 million provided in the prior-year, with no net cash used in investing activities and $17 million used in financing Cash Flow Highlights (Three Months Ended June 30, $ in millions) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | (23) | 9 | | Net cash used in investing activities | 0 | (40) | | Net cash provided by (used in) financing activities | (17) | 57 | Non-GAAP Financial Measures & Reconciliations This section reconciles GAAP results to non-GAAP measures, adjusting GAAP net income to non-GAAP net income, and reconciling to Adjusted EBITDA and Adjusted Free Cash Flow Q2 2025 GAAP to Non-GAAP EPS Reconciliation | Metric | Value ($) | | :--- | :--- | | GAAP Diluted EPS | 0.60 | | Adjustments (Transformation, Stock Comp, etc.) | +0.33 | | Non-GAAP Adjusted Diluted EPS | 0.93 | Q2 2025 Net Income to Adjusted EBITDA Reconciliation ($ in millions) | ($ in millions) | Value | | :--- | :--- | | Net income attributable to Atleos (GAAP) | 45 | | Adjustments (Interest, Taxes, D&A, etc.) | +160 | | Adjusted EBITDA (Non-GAAP) | 205 | Q2 2025 Operating Cash Flow to Adjusted Free Cash Flow Reconciliation ($ in millions) | ($ in millions) | Value | | :--- | :--- | | Net cash (used in) operating activities | (23) | | Adjustments (Capex, Restricted Cash, etc.) | +38 | | Adjusted free cash flow-unrestricted | 15 | Notes to Investors & Other Metrics The company revised prior financial statements for immaterial misstatements and changed its Non-GAAP diluted EPS definition, with Self-Service Banking Annualized Recurring Revenue at $1.685 billion and total recurring revenue mix at 70% - The company revised previously issued financial statements for immaterial misstatements impacting pre-tax income in fiscal years 2023, 2024, and Q1 20259 - Beginning in Q2 2025, the definition of Non-GAAP diluted EPS was changed to exclude gains and losses on remeasurement of foreign currency in hyper-inflationary countries, with historical periods recast to reflect the change10 Other Performance Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Self-Service Banking | | | | Annualized recurring revenue | $1,685 million | $1,664 million | | Network | | | | LTM ARPU (in thousands) | $16.2 | $15.8 | | Network Managed Units (in thousands) | 77.0 | 80.8 | | Total Company | | | | Recurring revenue as a % of revenue | 70% | 73% |
NCR Atleos (NATL) - 2025 Q2 - Quarterly Results