Financial Data and Key Metrics Changes - The company reported total revenue of approximately $1.3 billion, reflecting a 4% increase, with 5% organic growth partially offset by currency fluctuations [22] - Adjusted EBITDA increased by 3% in total and 5% on a constant currency basis to $232 million, with record operating margins of 12.6% [22][6] - Earnings per share (EPS) was $1.79, flat compared to the prior year, with a diluted share count reduction of 6% year over year [22][7] Business Line Data and Key Metrics Changes - The ATM Managed Services and Digital Retail Solutions (AMS DRS) segment experienced 16% organic growth, while the North America segment saw a 5% increase, marking the fastest growth rate in nine quarters [5][6] - The Cash and Valuables Management (CVM) business had stable organic growth of 1% year over year, impacted by the conversion of traditional customers to AMS DRS [18][19] Market Data and Key Metrics Changes - The company noted record transactions and cash dispensed in major geographies, including North America, contributing to the strong performance in AMS [12] - The total addressable market for AMS and DRS is estimated to be two to three times the existing traditional market, indicating significant growth potential [17] Company Strategy and Development Direction - The company is focused on delivering organic revenue growth primarily from higher margin subscription-based services of AMS and DRS, with expectations for margin expansion in the second half of the year [8][9] - Strategic investments, including a partnership with KAL, aim to enhance AMS capabilities and expand the customer base [12][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver accelerating margin expansion and EBITDA growth, supported by strong performance in AMS and DRS [33][31] - The company anticipates continued robust growth in the second half of the year, with expectations for revenue and EBITDA increases for the full year [8][29] Other Important Information - The company has allocated $130 million year to date for share repurchases, with a remaining capacity of $166 million under the program [10][11] - Free cash flow generation improved, with $102 million delivered in Q2, and a year-to-date increase of $36 million [7][9] Q&A Session Summary Question: What factors contributed to the adjusted EBITDA margin exceeding guidance? - Management highlighted strong organic growth, productivity improvements, and a favorable revenue mix as key contributors, with adjustments for fewer workdays and lapping of previous equipment sales [38][40][43] Question: How does the company expect AMS and DRS growth to trend in the second half of the year? - Management indicated that while growth may be lumpy due to large customer rollouts, they expect acceleration in both AMS and DRS, aligning with the upper end of their guidance [46][47][70] Question: How did the Cash and Valuables Management (CVM) business perform in Q2? - The CVM segment saw a moderate growth rate, reverting to mid-single digits, with expectations for continued performance in line with this range [49][71] Question: What internal initiatives are being taken to push customers towards AMS and DRS? - The company is focusing on enhancing value propositions and improving communication to attract customers to AMS and DRS, while still maintaining a strong CVM business [56][58] Question: What are the expectations for the North America segment in the second half of the year? - Management expects continued upward trajectory in North America, supported by a robust pipeline in AMS and DRS, along with healthy performance in Global Services [64]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $1.3 billion, an increase of 4% with 5% organic growth, partially offset by currency effects [23] - Adjusted EBITDA was up 3% in total and 5% on a constant currency basis to $232 million, with record operating margins of 12.6% [23][24] - Earnings per share (EPS) of $1.79 was flat compared to the prior year, with a diluted share count reduction of 6% year over year [24][26] - Free cash flow for Q2 was $102 million, a year-to-date increase of $36 million, with a conversion rate of 48% of adjusted EBITDA [7][10] Business Line Data and Key Metrics Changes - The ATM Managed Services and Digital Retail Solutions (AMS DRS) segment experienced 16% organic growth, while the North America segment grew by 5%, marking the fastest growth rate in nine quarters [5][6] - The Cash and Valuables Management (CVM) business saw stable organic growth of 1% year over year, impacted by the conversion of traditional customers to AMS DRS [19][20] - The company expects continued strong growth in AMS and DRS, with a robust pipeline and record installations in the quarter [21][60] Market Data and Key Metrics Changes - The total addressable market for AMS is estimated to be around $8 billion, with potential for significant expansion if banks outsource their ATM networks [17][18] - The company noted that the current cash logistics market is valued at $28 billion, indicating substantial growth opportunities in both AMS and DRS [17] Company Strategy and Development Direction - The company is focused on delivering organic revenue growth primarily from higher margin subscription-based services of AMS and DRS, with expectations for margin expansion in the second half of the year [8][9] - Strategic investments, including a partnership with KAL, aim to enhance AMS capabilities and expand the customer base [13][28] - The company is committed to maximizing shareholder value through disciplined capital allocation, including a share repurchase program [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver accelerated margin expansion and EBITDA growth, supported by strong performance in AMS and DRS [32][31] - The company anticipates a strong second half of the year, with expectations for revenue and EBITDA increases based on first half performance [30][31] Other Important Information - The company has reduced its share count by 4% year to date through its share repurchase program, with remaining capacity of $166 million [12][28] - The effective tax rate increased to 28%, primarily due to the lapping impact of one-time tax benefits from the prior year [26] Q&A Session Summary Question: Adjusted EBITDA margin performance - Management noted that strong organic growth and productivity improvements contributed to the higher adjusted EBITDA margin, exceeding guidance [37][38] Question: AMS DRS growth expectations - Management indicated that while they are guiding for high teens growth, they expect acceleration in the second half due to large customer rollouts and previous equipment sales lapping [46][47] Question: BGS performance and tariff impact - The BGS business moderated to mid-single digit growth in Q2, with expectations for similar performance in the near term due to tariff-related volatility [50] Question: Internal initiatives for AMS and DRS - The company is focusing on pulling customers towards AMS and DRS by enhancing value propositions, rather than pushing them away from CVM [55][57] Question: North America segment expectations - Management expects continued upward trajectory in the North America segment, supported by a strong pipeline in AMS and DRS [63] Question: Differentiation in growth between AMS and DRS - Management stated that both segments are expected to grow at balanced rates, with visibility into booked business and sales velocity supporting this outlook [67][69] Question: CVM growth rate catalysts - Management noted that the BGS business could drive CVM growth, while conversions to AMS DRS could also positively impact overall growth rates [71][72]