Ncr Atleos Corporation · NYSE:NATL
Ncr Atleos — Q2 2025 Earnings Presentation
41 slides from Ncr Atleos's earnings presentation, Aug 7, 2025
Slide 1: Second Quarter 2025 Earnings Call
Second Quarter 2025 Earnings Call Thursday, August 7th, 2025 Tim Oliver, President & Chief Executive Officer Andy Wamser, Chief Financial Officer Stuart Mackinnon, Chief Operating Officer 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigat
Slide 3: Notes to Investors
NOTES TO INVESTORS NON-GAAP MEASURES. While Atleos reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, comments made during this conference call and in these materials will include or make reference to certain “non-GAAP” measures, including,
Slide 4: Business Update
Business Update Tim Oliver President and Chief Executive Officer 4
Slide 5: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights STRATEGY HIGHLIGHTS FINANCIAL RESULTS ▪ Increased monetization of our 4% Grow Efficiently: Prioritize growth global installed base initiatives with high-potential returns and strategic value ▪ ATM as a Service revenue increased 32% y/y, Backlog up 105% y/y Core Revenue
Slide 6: Self-Service Banking Segment
2 Self-Service Banking Segment Financial Results Grow Efficiently • Revenue +9% y/y • Ended Q2 with a robust ATMaaS backlog +105% y/y • Adj. EBITDA +20% y/y • ~240 bps of margin expansion across service, • Growth in high return and asset light software and hardware outsourcing services deals • Impro
Slide 7: Network Segment
2 Network Segment Financial Results Grow Efficiently • Revenue +7% q/q • Cash deposit transactions +170% y/y for 1H • ARPU +3% y/y and reached another new high • New partnerships expanded presence in digital payments • Solid Adj. EBITDA margin of ~27%, after absorbing higher vault cash costs • Activ
Slide 8: Industry Leading Self-Service Banking Solutions Platform
2 Industry Leading Self-Service Banking Solutions Platform #1 Cross-sell Leading Install Base of #1 Drive Network Solutions Add new ATMaaS and adoption Largest Independent 500K+ banking of incremental partners to Managed outsourcing Network ATM Network Self Service Services ATMs Provider ARPU Enhanc
Slide 9: Investment Thesis
2 Investment Thesis 1 World’s most comprehensive and scalable solutions offering 2 Leading global installed base and industry-best service levels Outsourcing of physical transactions and cash management by banks and retailers 3 accelerating Building a track record of transparency and consistent fina
Slide 10: Financial Review
Financial Review Andy Wamser Chief Financial Officer 10
Slide 11: Results at High-end or Exceed Expectations
Consolidated Consolidated Adjusted Non-GAAP Revenue/Recurring EBITDA & Margin Diluted EPS +4% y/y Core +4% y/y +9% y/y +6% y/y Core $1,080 $1,108 $1,104 $1,078 $229 $1.19 $979 $209 $205 $1,094 $197 $1,049 $1,055 $1,081 $172 $0.90 $0.93 $965 $0.85 Results at $0.64 High-end or 70% 74% 74% 72% 76% 70%
Slide 12: Self-Service Banking Performance
Revenue Adjusted EBITDA & Margin +9% y/y +20% y/y Self-Service $189 $718 $733 $181 Banking $672 $677 $157 $167 $153 $624 Key Financial Metrics Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Margin $ in millions 23.4% 24.7% 25.2% 24.5% 25.8% Recurring Revenue Mix % ARR Key $1,800 70% $1,
Slide 13: ATMaaS Key Performance
Revenue Gross Profit(1) +32% y/y +72% y/y ATMaaS $57 $62 $24.8 $21.4 $52 $47 $49 $17.4 $16.1 Financial $14.4 Metrics $ in millions, Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 except ARPU ARR (in millions) LTM ARPU (in thousands) Key $249 $260 $12.0 Performance $8.8 $8.3 $188 $200 $8
Slide 14: Network Key Financial Metrics
Revenue Adjusted EBITDA -2% y/y -15% y/y $114 Network $326 $332 $317 $320 $101 $102 $298 $86 $86 Key Financial Metrics $ in millions, except Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 ARPU and Network Margin Managed Units 31.0% 30.7% 36.0% 28.9% 26.9% Key LTM ARPU (in thousands) Net
Slide 15: Services & Software and Hardware Fuels Topline & Profit Growth
Revenue Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Services & Software $539 $542 $557 $523 $556 Transactional (Network segment) 319 324 309 292 312 Hardware 191 189 215 150 226 Services & Total Core Revenues $1,049 $1,055 $1,081 $965 $1,094 Software and 31 23 27 14 10 Other – Voyix Hardware Fuels $1,08
Slide 16: Strong Financial Position
Free Cash Flow Q2 2025 Adjusted EBITDA(4) $205 Capital Expenditures ($35) Inventory Capitalized ($11) Adjusted Capital Expenditures ($46) Maintenance capital expenditures(1) ($11) Growth capital expenditures(1) ($23) ATMaaS capital expenditures(1) ($12) Strong Cash paid for Taxes ($49) Cash paid for
Slide 17: FY 2025 Outlook Reaffirmed
FY 2025 Outlook Reaffirmed $ in millions, except percentages and per share amounts FY 2025 Targets 2025 Initial Guidance 2024 Base(3) 3% to 6% growth constant currency Core Revenue (excludes Voyix) $4,175 (est. FX impact -2%) 1% to 3% growth constant currency Total Revenue (est. FX impact -2%) $4,31
Slide 18: Supplementary Materials
SUPPLEMENTARY MATERIALS NCR Atleos Confidential 18
Slide 19: Certain Terms & Key Performance Indicators (KPIs)
Certain Terms & Key Performance Indicators (KPIs) Recurring revenue - all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, processing r
Slide 20: Non-GAAP Measures
NON-GAAP MEASURES While Atleos reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, comments made during this conference call and in these materials will include non-GAAP measures. Atleos’ definitions and calculations of these non-GAAP measur
Slide 21: Non-GAAP Measures
NON-GAAP MEASURES Adjusted Free Cash Flow-Unrestricted (FCF) is calculated as net cash provided by operating activities less capital expenditures, less additions to capitalized software, plus/minus the change in restricted cash settlement activity, plus/minus net reductions or reinvestment in the tr
Slide 22: Non-GAAP Measures
NON-GAAP MEASURES Net Leverage Ratio is calculated by dividing Net Debt by trailing twelve-month Adjusted EBITDA. Management believes this ratio provides useful information to investors because it is an indicator of the Company's ability to meet its future financial obligations. In addition, the net
Slide 23: Q2 2025 GAAP Results
Q2 2025 GAAP RESULTS $ in millions, except per share amounts Q2 2025 Q2 2024 % Change Revenue $1,104 $1,080 2% Gross Margin 253 251 1% Gross Margin Rate 22.9% 23.2% Operating Expenses 133 143 (7)% % of Revenue 12.0% 13.2% Operating Income 120 108 11% % of Revenue 10.9% 10.0% Interest and other expen
Slide 24: Q2 2025 Operational Results (Non-GAAP)
Q2 2025 OPERATIONAL RESULTS (Non-GAAP) $ in millions, except per share amounts Q2 2025 Q2 2024 % Change Revenue $1,104 $1,080 2% Adjusted Gross Margin (non-GAAP) 275 274 —% Adjusted Gross Margin Rate (non-GAAP) 24.9% 25.4% Adjusted Operating Expenses (non-GAAP) 116 121 (4)% % of Revenue 10.5% 11.2%
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q2 2025 % of Revenue Q2 2024 % of Revenue Net Income Attributable to Atleos (GAAP) $45 4.1% $30 2.8% Interest Expense 69 6.3% 79 7.2% Interest Income (1) (0.1)% (2) (0.2)% Income Taxes 19 1.7% 4 0.4% Depreciation and amortization expense 45 4.1% 43 4.0%
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions % of % of % of Q1 2025 Revenue Q4 2024 Revenue Q3 2024 Revenue Net Income Attributable to Atleos (GAAP) $15 1.5% $48 4.3% $22 2.0% Interest Expense 67 6.9% 72 6.5% 79 7.3% Interest Income (1) (0.1)% (2) (0.2)% (1) (0.1)% Income Taxes 10 1.0% 25 2.3% 14 1
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q2 2025 Q2 2024 Income from Operations (GAAP) $120 $108 Transformation and restructuring costs — 6 Stock-based compensation expense 8 9 Acquisition-related amortization of intangibles 24 23 Acquisition-related costs 1 1 Separation costs 6 6 Depreciation
Slide 28: GAAP to Non-GAAP Reconciliation Q2 2025
GAAP TO NON-GAAP RECONCILIATION Q2 2025 $ in millions Interest & Gross Gross Operating Income from Other Income Tax Effective Net Income Margin Margin rate Expenses operations Expenses, Expense Income attributable (Benefit) Tax Rate to Atleos Net GAAP Results $253 22.9% $133 $120 $(57) $19 30.2% $45
Slide 29: GAAP to Non-GAAP Reconciliation Q2 2024
GAAP TO NON-GAAP RECONCILIATION Q2 2024 $ in millions Interest & Gross Gross Operating Income from Other Income Tax Effective Net Income Margin Margin rate Expenses operations Expenses, Expense Income attributable Net (Benefit) Tax Rate to Atleos GAAP Results $251 23.2% $143 $108 $(75) $4 12.1% $30
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Q2 2025(1) Q1 2025(1) Q4 2024(1) Q3 2024(1) Q2 2024(1) GAAP Diluted Earnings per Share $0.60 $0.20 $0.64 $0.30 $0.41 Plus: Special Items Transformation and restructuring costs (0.12) 0.01 0.09 0.09 0.07 Stock-based compensation expense 0.09 0.12 0.13 0.11 0.11 Acquisi
Slide 31: Q2 2025 Segment Results - GAAP
Q2 2025 SEGMENT RESULTS - GAAP* $ in millions Self-Service Network T&T Other(1) Corporate(2) Total Banking Unallocated Product Revenue $250 $14 $2 $— $— $266 Service Revenue $483 $306 $39 $10 $— $838 Total Revenue $733 $320 $41 $10 $— $1,104 Cost of Products $191 $13 $1 $1 $11 $217 Cost of Services
Slide 32: Q2 2025 Segment Results - Non-GAAP
Q2 2025 SEGMENT RESULTS - NON-GAAP $ in millions Self-Service Network T&T Other(1) (4) Corporate(2) (4) Total(4) Banking Unallocated Product Revenue $250 $14 $2 $— $— $266 Service Revenue $483 $306 $39 $10 $— $838 Total Revenue $733 $320 $41 $10 $— $1,104 Adjusted Cost of Products (non-GAAP) $189 $1
Slide 33: Q2 2025 GAAP to Non-GAAP Segment Reconciliation
Q2 2025 GAAP TO NON-GAAP Segment Reconciliation $ in millions Transformation Stock Based Acquisition Related Corporate GAAP* Costs Compensation Amortization of Acquisition-Related Separation Costs Non-GAAP Intangibles Costs Self Service Banking $191 $(1) $— $(1) $— $— $189 Network 13 — — — — — 13 T&
Slide 34: Q2 2024 GAAP to Non-GAAP Segment Reconciliation
Q2 2024 GAAP TO NON-GAAP Segment Reconciliation $ in millions Transformation Stock Based Acquisition Related Corporate GAAP* Costs Compensation Amortization of Acquisition-Related Separation Costs Non-GAAP Intangibles Costs Self Service Banking $160 $— $— $— $— $— $160 Network 13 — — — — — 13 T&T 4
Slide 35: Q2 2025 GAAP to Non-GAAP Product Reconciliation
Q2 2025 GAAP TO NON-GAAP Product Reconciliation $ in millions Stock Based Acquisition Related GAAP* Transformation Costs Compensation Amortization of Non-GAAP Intangibles GROSS PROFIT(1) Software and Services $187 $— $— $— $187 Transactional 57 (1) — 19 75 Hardware 43 2 — 1 46 Corporate unallocated
Slide 36: Q1 2025 GAAP to Non-GAAP Product Reconciliation
Q1 2025 GAAP TO NON-GAAP Product Reconciliation $ in millions Stock Based Acquisition Related GAAP* Transformation Costs Compensation Amortization of Non-GAAP Intangibles GROSS PROFIT(1) Software and Services $175 $— $— $— $175 Transactional 62 1 — 19 82 Hardware 25 — — 1 26 Corporate unallocated (3
Slide 37: Q4 2024 GAAP to Non-GAAP Product Reconciliation
Q4 2024 GAAP TO NON-GAAP Product Reconciliation $ in millions Acquisition GAAP* Transformation Stock Based Related Separation Costs Non-GAAP Costs Compensation Amortization of Intangibles GROSS PROFIT(1) Software and Services $198 $— $— $— $— $198 Transactional 88 — — 19 — 107 Hardware 44 — — — — 44
Slide 38: Q3 2024 GAAP to Non-GAAP Product Reconciliation
Q3 2024 GAAP TO NON-GAAP Product Reconciliation $ in millions Acquisition GAAP* Transformation Stock Based Related Costs Compensation Amortization of Separation Costs Non-GAAP Intangibles GROSS PROFIT(1) Software and Services $183 $1 $— $— $— $184 Transactional 78 — — 20 — 98 Hardware 30 — — — — 30
Slide 39: Q2 2024 GAAP to Non-GAAP Product Reconciliation
Q2 2024 GAAP TO NON-GAAP Product Reconciliation $ in millions Transformation Stock Based Acquisition Related GAAP* Costs Compensation Amortization of Non-GAAP Intangibles GROSS PROFIT(1) Software and Services $169 $— $— $(1) $168 Transactional 75 — — 20 95 Hardware 37 — — — 37 Corporate unallocated
Slide 40: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Cash provided by operating activities $(20) $123 $80 $107 $9 Capital expenditures $(24) $(29) $(18) $(22) $(23) Additions to capitalized software $(14) $(12) $(13) $(11) $(9) Restricted cash settlement activity $37
Slide 41: Thank You
THANK YOU NCR Atleos Confidential 41