Financial Data and Key Metrics Changes - First quarter core revenue was $966 million, slightly less than the prior year period on a constant currency basis, in line with expectations [25] - Adjusted EBITDA grew 9% year over year to $175 million, with a margin expansion of 270 basis points to 17.9% [27] - Non-GAAP fully diluted earnings per share increased 56% year over year to $0.64 [27] Business Line Data and Key Metrics Changes - Self-service banking revenue grew 1% year over year to $624 million, driven by a 6% increase in combined software and services revenues [28] - ATM as a Service revenue grew 24% year over year to $57 million, with a 44% increase in unique customer count [30] - Network segment revenue was $299 million, down 4% year over year, with cash withdrawal transactions approximately 3.5% lower than the prior year [33] Market Data and Key Metrics Changes - The company has an installed fleet of approximately 600,000 ATMs, with about 80,000 machines owned and operated in its own network [6] - The Allpoint network signed a partnership with Seven Eleven, adding thousands of locations for cardholders [19] - Cash deposit transactions increased more than 200% year over year, indicating strong growth in this area [33] Company Strategy and Development Direction - The company aims to grow efficiently, develop a service-first culture, and embrace simplicity in operations [12][13][15] - The focus is on generating more revenue from existing machines and enhancing service offerings to financial institutions [7][8] - The company is working on mitigating tariff impacts through pricing actions and supply chain adjustments [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite external uncertainties, with over 70% of revenue coming from recurring services [11] - The company expects to generate positive free cash flow in each of the remaining quarters of 2025 [39] - Full year 2025 guidance includes core revenue growth of 3% to 6% and adjusted EBITDA growth of 7% to 10% [43] Other Important Information - The company is developing plans to mitigate potential costs from tariffs, which could impact profitability [42] - The backlog for ATM as a Service units is up 25% year over year, indicating strong demand [70] - The company is not investing further in the LibertyX business due to regulatory challenges and low profitability [98] Q&A Session Summary Question: Can you provide more color on overall backlog this year relative to last? - Management indicated that this year is expected to be the best hardware year since 2019, with strong demand and a good backlog [50][51] Question: How is leverage informing your view on potential buyback timing? - Management aims to use free cash flow to reduce leverage below three times and is considering share repurchases as a priority [55][56] Question: Can you discuss the amount of hardware impact by the segments? - Most hardware revenue will come through the self-service banking segment, with significant investments in upgrading the existing network fleet [62] Question: What is driving the strength in ATMs as a Service gross profit? - The strength is attributed to a higher number of smaller contracts in North America, which are more profitable due to scalable cost structures [86] Question: What is the game plan for LibertyX? - Management is de-emphasizing LibertyX due to regulatory changes and low profitability, focusing instead on monetizing Bitcoin at the device [98]

Financial Data and Key Metrics Changes - First quarter core revenue was $966 million, slightly less than the prior year period on a constant currency basis, in line with expectations [24] - Adjusted EBITDA grew 9% year over year to $175 million, with a margin expansion of 270 basis points to 17.9% [27] - Non-GAAP fully diluted earnings per share increased 56% year over year to $0.64 [27] Business Line Data and Key Metrics Changes - Self-service banking revenue grew 1% year over year to $624 million, driven by a 6% increase in combined software and services revenues [28] - ATM as a Service revenue grew 24% year over year to $57 million, with a 44% increase in unique customer count [30] - Network segment revenue was $299 million, down 4% year over year, with cash withdrawal transactions approximately 3.5% lower than the prior year [32] Market Data and Key Metrics Changes - The Allpoint cash withdrawals grew modestly, while cash deposits increased more than 200% year over year [32] - Adjusted EBITDA margin for the Network segment was 29%, expanding approximately 150 basis points year over year [32] Company Strategy and Development Direction - The company aims to grow efficiently, develop a service-first culture, and embrace simplicity to enhance operational efficiency [12][14] - The strategy focuses on increasing service revenue opportunities and improving customer trust through sustained excellence [13] - The company is optimistic about expanding its ATM as a Service business, particularly in North America and Europe [30][84] Management's Comments on Operating Environment and Future Outlook - Management noted that over 70% of revenue comes from recurring services, which are resilient in uncertain economic environments [10] - The company expects total core revenue to grow 3% to 6% on a constant currency basis for the full year 2025 [41] - Tariff exposure is primarily related to hardware and parts, with plans to mitigate potential costs [40] Other Important Information - The company reaffirmed its full-year 2025 guidance despite external uncertainties, expecting adjusted EBITDA to grow 7% to 10% [41] - The backlog for ATM as a Service units is up 25% year over year, indicating strong demand [66] Q&A Session Questions and Answers Question: Can you provide more color on overall backlog this year relative to last? - Management indicated that this year is expected to be the best hardware year since 2019, with strong demand and a good backlog [47][48] Question: How is the balance sheet informing your view on potential buyback timing? - The company aims to use free cash flow to reduce leverage below three times, with plans for share repurchases once cash flow stabilizes [52][54] Question: Can you comment on withdrawal transactions in North America versus the rest of the world? - Withdrawal transactions in North America were stable, while the UK experienced a high single-digit decrease [92] Question: What is the game plan for LibertyX? - Management acknowledged that LibertyX has been de-emphasized due to regulatory changes impacting profitability, and they are exploring ways to monetize Bitcoin at the device [95] Question: Are there any M&A opportunities being cultivated? - The company has a long list of potential M&A ideas, focusing on low-cost opportunities to enhance its fleet and technology [98]