Financial Data and Key Metrics Changes - Total revenue for the quarter was $684 million, a decline of 3% due to lower hardware sales and one-time software and services revenue [26] - Recurring revenue increased by 5% to $425 million, driven by 7% growth in restaurants and 4% growth in retail [26] - Adjusted EBIT was $125 million, an increase of 32%, with margin expanding 490 basis points to 18.3% [26][28] - Adjusted free cash flow was $42 million for the quarter, with capital expenditures of $38 million [28] Business Line Data and Key Metrics Changes - In the restaurant segment, total revenue was flat at $210 million, with recurring revenue increasing by 7% to $146 million [27] - In the retail segment, total revenue declined by 4% to $467 million, while recurring revenue increased by 4% to $276 million [28] - Software ARR increased by 8% and total segment ARR increased by 5% [26] Market Data and Key Metrics Changes - The restaurant business signed over 200 new software and services customers, with platform sites increasing by 6% and payment sites by 2% [19] - The retail business signed over 30 new software and services customers, with platform sites increasing by 16% and payment sites by 9% [22] Company Strategy and Development Direction - The company is focused on becoming a software-led business supported by robust payments and service capabilities, with a key milestone being the outsourcing of its hardware business [5][6] - The Voyix Commerce Platform is positioned as a platform-powered leader in unified commerce for retail and restaurants, leveraging AI-enabled development tools to accelerate innovation [13][14] - The company aims to enhance its payments presence across various verticals, strengthening recurring revenue and long-term growth [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's progress and innovation pipeline, emphasizing the importance of disciplined execution for sustainable growth [30] - The outlook for revenue is projected to be between $2.65 billion and $2.67 billion, with adjusted EBITDA expected to range between $420 and $435 million [29][30] - Management noted that customer engagement remains strong, with positive feedback on new platform solutions [9][31] Other Important Information - A new six-year exclusive agreement with Chipotle was announced, marking a significant expansion of their partnership [33][34] - The company is preparing for the NRF Show in January to showcase new software and payment innovations [17] Q&A Session Summary Question: Can we talk about the price escalators referenced? - Management indicated that the company historically did not have escalators in all agreements, but is now ensuring they are included and charged accordingly, with expected increases being modest [36][38] Question: Can you quantify the impact of new relationships on the payment side of the business? - Management highlighted the potential for significant transaction volume through the Voyix Connect platform, estimating a total addressable market of approximately $1.3 trillion in the US [40][42] Question: What is the timeline for the ODM phasing project? - The project is expected to start in January and take approximately 90 days, with a focus on ensuring a smooth transition for customers and employees [53][54] Question: How is consumer health impacting technology investments? - Management noted that customers are eager to invest in technology to enhance consumer experiences and compete effectively, despite economic pressures [56][64]