Ncr Atleos Corporation · NYSE:NATL
Ncr Atleos — Q1 2025 Earnings Presentation
41 slides from Ncr Atleos's earnings presentation, May 7, 2025
Slide 1: First Quarter 2025 Earnings Call
1 First Quarter 2025 Earnings Call Tim Oliver, President & Chief Executive Officer Andy Wamser, Chief Financial Officer Stuart Mackinnon, Chief Operating Officer Thursday, May 8th, 2025
Slide 2: Forward-Looking Statements
2 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 Litigation Reform Act of 1995 (t
Slide 3: Non-GAAP Measures, Trademarks and Use of Terms
3 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, but not limited
Slide 4: Business Update
Tim Oliver President and Chief Executive Officer Business Update 4
Slide 5: NCR Atleos Industry Leading Self-Service Banking Solutions Platform
5 NCR ATLEOS Industry Leading Self-Service Banking Solutions Platform +600K Global installed base of serviced ATMs ~80K Largest independent network of owned and operated ATMs +140 Countries ~20K Employees Largest Independent ATM Network Transaction Processing Device Design & Production Extensive Har
Slide 6: A Strong Start to 2025
First quarter results at or above expectations Recurring revenue mix reached a new high of 76% Adj. EBITDA margin expanded 270 bps y/y on advantageous revenue mix and cost productivity Strategic growth across services and in expanded transaction types 6 A Strong Start to 2025 Very Successful Q1 Buil
Slide 7: Self-Service Banking Segment Q1 2025 Results
7 Self-Service Banking Segment Q1 2025 Results • Revenue mix, direct cost programs, and service efficiencies drove performance • ATMaaS revenue +24% y/y • ATMaaS unique customers +40% y/y • Unit backlog +87% y/y • Adj. EBITDA grew 14% y/y with margin up 320 bps y/y • Service expansion drove underlyi
Slide 8: Network Segment Q1 2025 Results
8 Network Segment Q1 2025 Results • Allpoint cash withdrawal transactions +2% y/y • Cash deposit transactions increased 200% y/y and reached an annual run rate of $1B in cash deposits • Another new high for ARPU of $16,129; up q/q and y/y on fleet optimization • Adjusted EBITDA margin expanded 170 b
Slide 9: Financial Review
Financial Review Andy Wamser Chief Financial Officer 9
Slide 10: Solid Underlying Topline Trends in our Key Businesses
Consolidated Revenue/Recurring Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Recurring Core Non-Recur Core Non-Core 10 Solid Underlying Topline Trends in our Key Businesses $ in millions $1,050 $1,055 $989 $966 $1,081 • Q1 ‘25 Core Revenue of $966, -2% y/y, -1% CC y/y • Q1 ‘25 Core Recurring Revenue of $729, +1% CC
Slide 11: Adjusted EBITDA and Earnings Exceeded Expectations
11 Adjusted EBITDA and Earnings Exceeded Expectations $ in millions, except per share amounts $793 $790$763 Non-GAAP Diluted EPS • Q1 above the high-end of our guidance range • +56% y/y Adjusted EPS growth Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 $0.81 $0.89 $0.41 $1.11 $0.64 Consolidated Adj. EBITDA & Margin
Slide 12: Self-Service Banking Key Financial Metrics and KPIs
12 Self-Service Banking Key Financial Metrics and KPIs $ in millions Revenue Adjusted EBITDA Key Strategic Metrics Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 $673 $677 $628 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 $167$158 $134 21.3% 23.5% 24.7% $153 $181 25.2% 24.5% Up 200 bps y/y • 13 consecutive quarters of y/y growth i
Slide 13: ATMaaS Financial Metrics and KPIs
13 ATMaaS Financial Metrics and KPIs $ in millions, except ARPU Revenue Gross Profit(1) Key Strategic Metrics Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 $49$47$46 $52 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 $16.1$14.4 $17.4 Up 26% y/y • Customer count increased 44% y/y • Launched 1 new market in Q1 Down 2% y/y • Continued
Slide 14: Network Key Financial Metrics and KPIs
14 Network Key Financial Metrics and KPIs $ in millions, except ARPU and Network Managed Units Revenue Adjusted EBITDA Key Strategic Metrics Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 $326 $332 $310 $299 $317 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 $103$101 $86 27.7% 31.0% 31.0% $88 $114 29.4% 36.0% Up 5% y/y • Allpoint W
Slide 15: Services & Software Momentum Drives Topline and Profit Growth
15 Services & Software Momentum Drives Topline and Profit Growth $ in millions Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Revenue $523$557$542$540 $514 Services & Software 293309324 319 303Transactional (Network segment) 150215189191 172Hardware $966$1,081$1,055 $1,050 $989 Total Core Revenues 142723 31 61O
Slide 16: Strong Financial Position
16 Strong Financial Position $ in millions (1) Reflects management’s assessment for Q1 2025 capital expenditures. (2) Cash and cash equivalents as presented in our Condensed Consolidated Balance Sheet. (3) Refer to the definitions in the supplementary section of the presentation. March 31, 2025Balan
Slide 17: FY 2025 Outlook Reaffirmed
17 FY 2025 Outlook Reaffirmed $ in millions, except percentages and per share amounts 2024 Base2025 GuidanceFY 2025 Targets $4,1753% to 6% growth constant currency (est. FX impact -2%)Core Revenue (excludes Voyix) $4,317 1% to 3% growth constant currency (est. FX impact -2%) - Assumes Voyix related
Slide 18: Supplementary Materials
SUPPLEMENTARY MATERIALS NCR Atleos Confidential 18
Slide 19: Definitions: Recurring Revenue, ARR, Core Revenue
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 revenue, interchange and network revenue, Bitcoin-r
Slide 20: Non-GAAP Measures Definitions
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 measures may differ from
Slide 21: Net Debt and Adjusted EBITDA Definitions
Net Debt is based on Atleos' total debt less cash and cash equivalents, with total debt being defined as total short-term borrowings plus total long-term debt as presented on the face of the Condensed Consolidated Balance Sheets. Atleos believes that Net Debt provides useful information to investors
Slide 22: Forward-Looking Non-GAAP Guidance Reconciliation Note
With respect to our Adjusted EBITDA, adjusted free cash flow-unrestricted and non-GAAP diluted earnings per share forward-looking guidance, we do not provide a reconciliation of the respective GAAP measures because we are not able to predict with reasonable certainty the reconciling items that may a
Slide 23: Q1 2025 GAAP Results
% Change Q1 2024Q1 2025 (7)%$1,050$980Revenue 6%221235Gross Margin 21.0%24.0%Gross Margin Rate (7)%149139Operating Expenses 14.2%14.2%% of Revenue 33%7296Operating Income 6.9%9.8%% of Revenue (8)%(76)(70)Interest and other expense, net 410Income Tax Expense (100.0)%38.5%Effective Income Tax Rate 313
Slide 24: Q1 2025 Operational Results (Non-GAAP)
% ChangeQ1 2024Q1 2025 (7)%$1,050$980Revenue 5%244257Adjusted Gross Margin (non-GAAP) 23.2%26.2%Adjusted Gross Margin Rate (non-GAAP) (2)%128125Adjusted Operating Expenses (non-GAAP) 12.2%12.8%% of Revenue 14%116132Adjusted Income from Operations (non-GAAP) 11.0%13.5%% of Revenue (Adjusted Operating
Slide 25: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA
% of RevenueQ1 2024% of RevenueQ1 2025 (0.8)%$(8)1.7%$17Net Income (loss) Attributable to Atleos (GAAP) 7.5%796.9%67Interest Expense (0.2)%(2)(0.1)%(1)Interest Income 0.4%41.0%10Income Taxes 4.2%444.3%42Depreciation and amortization 2.3%252.3%23Acquisition-related amortization of intangibles 1.0%100
Slide 26: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA Q2-Q4 2024
% of RevenueQ2 2024% of RevenueQ3 2024% of RevenueQ4 2024 2.7%$292.2%$244.2%$46Net Income Attributable to Atleos (GAAP) 7.3%797.3%796.5%72Interest Expense (0.2)%(2)(0.1)%(1)(0.2)%(2)Interest Income 0.4%41.3%142.2%25Income Taxes 4.0%434.2%454.0%44Depreciation and amortization expense 2.1%232.2%242.1%
Slide 27: GAAP to Non-GAAP Reconciliation: Income from Operations to Adjusted EBITDA
Q1 2024Q1 2025 $72$96Income from Operations (GAAP) 12Transformation and restructuring costs 109Stock-based compensation expense 2523Acquisition-related amortization of intangibles 82Separation costs 4442Depreciation and Amortization —1Non-controlling interest $160$175Adjusted EBITDA (non-GAAP) GAAP
Slide 28: GAAP to Non-GAAP Reconciliation Q1 2025
GAAP TO NON-GAAP RECONCILIATION $ in millions Net Income attributable to Atleos Effective Income Tax Rate Income Tax Expense (Benefit) Interest & Other Expenses, Net Income from operations Operating Expenses Gross Margin rateGross Margin $1738.5%$10$(70)$96$13924.0%$235GAAP Results Plus: Special Ite
Slide 29: GAAP to Non-GAAP Reconciliation Q1 2024
GAAP TO NON-GAAP RECONCILIATION $ in millions Net Income (Loss) attributable to Atleos Effective Income Tax Rate Income Tax Expense (Benefit) Interest & Other Expenses, Net Income from operations Operating Expenses Gross Margin rateGross Margin $(8)(100.0)%$4$(76)$72$14921.0%$221GAAP Results Plus: S
Slide 30: GAAP to Non-GAAP Reconciliation: Diluted EPS
GAAP TO NON-GAAP RECONCILIATION Q1 2024(2)Q2 2024(1)Q3 2024(1)Q4 2024(1)Q1 2025(1) $(0.11)$0.39$0.32$0.61$0.23GAAP Diluted Earnings per Share Plus: Special Items 0.010.070.090.090.01Transformation and restructuring costs 0.120.110.110.130.12Stock-based compensation expense 0.250.230.250.270.23Acquis
Slide 31: Segment Information
* Figures presented in this table are calculated in accordance with U.S. GAAP. In accordance with ASC 280, Segment Reporting, the Company uses Adjusted EBITDA to assess segment performance and allocate the Company resources. No other measures, including income from operations, are considered by mana
Slide 32: Q1 2025 Segment Results - Non-GAAP
Total(4)Corporate(2) (4) UnallocatedOther(1) (4)T&TNetworkSelf-Service Banking $189$—$1$1$11$176Product Revenue $791$—$13$42$288$448Service Revenue $980$—$14$43$299$624Total Revenue $159$10$1$1$10$137Adjusted Cost of Products (non-GAAP) $564$20$11$29$202$302Adjusted Cost of Services (non-GAAP) $125$
Slide 33: Q1 2025 GAAP to Non-GAAP Segment Reconciliation
Non-GAAPSeparation Costs Acquisition Related Amortization of Intangibles Stock Based CompensationTransformation CostsGAAP* $137$—$(1)$—$—$138Self Service Banking 10————10Network 1————1T&T 1————1Other 10————10Corporate Unallocated $159$—$(1)$—$—$160Total Cost of Products $302$—$—$—$—$302Self Service
Slide 34: Q1 2025 GAAP to Non-GAAP Product Reconciliation
Non-GAAP Acquisition Related Amortization of Intangibles Stock Based CompensationTransformation CostsGAAP* GROSS PROFIT(1) $176$—$—$1$175Software and Services 8319——64Transactional 261——25Hardware (30)—1—(31)Corporate unallocated 2552011233Total Core Gross Profit(1) 2———2Other - Voyix $257$20$1$1$23
Slide 35: Q4 2024 GAAP to Non-GAAP Product Reconciliation
Non-GAAPSeparation Costs Acquisition Related Amortization of Intangibles Stock Based Compensation Transformation CostsGAAP* GROSS PROFIT(1) $198$—$—$—$—$198Software and Services 107—19——88Transactional 44————44Hardware (33)(1)—22(36)Corporate unallocated 316(1)1922294Total Core Gross Profit(1) 3————
Slide 36: Q3 2024 GAAP to Non-GAAP Product Reconciliation
Non-GAAPSeparation Costs Acquisition Related Amortization of Intangibles Stock Based Compensation Transformation CostsGAAP* GROSS PROFIT(1) $184$—$—$—$1$183 Software and Services 99—20——79 Transactional 30————30 Hardware (30)1—11(33) Corporate unallocated 28312012259Total Core Gross Profit(1) 3————3
Slide 37: Q2 2024 GAAP to Non-GAAP Product Reconciliation
Non-GAAP Acquisition Related Amortization of Intangibles Stock Based Compensation Transformation CostsGAAP* GROSS PROFIT(1) $169$(1)$—$—$170Software and Services 9620——76Transactional 37———37Hardware (30)—13(34)Corporate unallocated 2721913249Total Core Gross Profit(1) 4———4Other $276$19$1$3$253Tota
Slide 38: Q1 2024 GAAP to Non-GAAP Product Reconciliation
Non-GAAP Acquisition Related Amortization of Intangibles Stock Based CompensationGAAP* GROSS PROFIT(1) $163$1$—$162Software and Services 8321—62Transactional 29——29Hardware (37)—1(38)Corporate unallocated 238221215Total Core Gross Profit(1) 6——6Other $244$22$1$221Total Atleos Gross Profit(1) Q1 2024
Slide 39: GAAP to Non-GAAP Reconciliation: Adjusted Free Cash Flow
Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025 $148$9$107$80$123Cash provided by operating activities $(24)$(23)$(22)$(18)$(29)Capital expenditures $(6)$(9)$(11)$(13)$(12)Additions to capitalized software $1$—$1$1$1Pension contributions $(18)$7$(37)$69$(106)Restricted cash settlement activity $(32)$32$—$—$—Tem
Slide 40: Reconciliation of Constant Currency
% Change Adjusted Constant Currency Favorable (Unfavorable) FX Impact % Change as ReportedQ1 2024Q1 2025 1%(2)%(1)%$628$624Self-Service Banking Revenue 6%(2)%4%$458$475Services & Software 5%(2)%3%$392$402Services & Software Recurring (11)%(1)%(12)%$170$149Hardware (2)%(2)%(4)%$310$299Network Revenue
Slide 41: Thank You
THANK YOU NCR Atleos Confidential 41