Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1.1 billion, with core top line growth in line with expectations, primarily driven by hardware revenue and service growth backlog [7][26] - Adjusted EBITDA grew 4% year over year to $205 million, with an adjusted EBITDA margin of almost 19%, expanding approximately 40 basis points from the prior year [27][36] - Non-GAAP fully diluted earnings per share increased 9% year over year to $0.93 [28] Business Line Data and Key Metrics Changes - The Self-Service Banking segment reported revenue growth of 9% year over year, reaching $733 million, driven by a 21% increase in hardware deliveries [29] - The ATM as a Service business saw a 32% revenue increase year over year, with gross profit up 72% and gross margin expanding to 40% [32] - The Network segment revenue was $320 million, down 2% year over year, primarily due to lower cash withdrawal transactions [34] Market Data and Key Metrics Changes - The company has over 500,000 ATMs in its global installed base, with a significant increase in demand for outsourced services [8][9] - Cash deposit transactions grew 170% year over year in the U.S. retail portfolio, indicating strong market demand [16] - The company anticipates a return to growth in the Network segment, particularly with new partnerships and transaction types being added [34][88] Company Strategy and Development Direction - The company aims to grow efficiently, prioritize service, and embrace simplicity, focusing on enhancing service levels and reducing inefficiencies [6][10] - The strategic focus includes expanding the installed base of ATMs and increasing revenue from each device supported [18][19] - A $200 million share repurchase program has been authorized, reflecting confidence in the company's valuation and future cash flow generation [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance despite challenges such as tariffs and macroeconomic headwinds [8][44] - The company expects to generate significant free cash flow in the upcoming quarters, with net leverage projected to drop below three times [41][43] - Management highlighted the importance of customer satisfaction and service performance improvements, which have led to increased service revenue [12][54] Other Important Information - The company has streamlined its sales process and improved conversion rates, resulting in record bookings for ATM as a Service [12][81] - The impact of tariffs on hardware revenue is expected to be manageable, with ongoing adjustments to manufacturing and supply chain strategies [73][78] Q&A Session Summary Question: Can you talk about the as a service business, average ARPU, and backlog quantification? - The average ARPU in the as a service backlog is over $9,100, with a backlog growth of 105% year over year [46][50] Question: Can you quantify the service performance improvements? - Service levels have improved significantly, with customer health scores increasing by 160 basis points [51][54] Question: What is the company's vision for the next two to three years? - The company aims to leverage its unique capabilities to provide both shared financial utility and bank-specific fleet solutions, focusing on sustainable growth and profitability [62][66] Question: How does the company view the impact of tariffs on hardware? - Hardware revenue is $800 million, and while tariffs are a concern, the company has strategies in place to mitigate their impact [72][74]