NCR Atleos Corporation Reports Third Quarter 2025 Results

ATLANTA–(BUSINESS WIRE)–NCR Atleos Corporation (NYSE: NATL):

• Total Revenue of $1.12 billion, an increase of 4% y/y, with 70% from recurring revenue streams.

• Core Revenue, excluding Voyix, of $1.11 billion, an increase of 6% y/y.

• ATMaaS revenue growth accelerated to 37% y/y; greater than 40% growth expected in Q4.

• Net Income Attributable to Atleos of $26 million, an increase of 24% y/y; Adjusted EBITDA of $219 million, an increase of 7% y/y.

• Diluted Earnings per Share of $0.34 and Adjusted Diluted Earnings per Share of $1.09, an increase of 21% and 22%, respectively, from the prior year period.

• Net Cash Flow provided by operating activities of $27 million; Adjusted Free Cash Flow was $124 million.

• Full year 2025 guidance ranges reaffirmed.

Tim Oliver, NCR Atleos Chief Executive Officer said, “NCR Atleos delivered another strong quarter with financial results at the higher end of expectations as financial institutions and retailers continue to select our differentiated and comprehensive self-service banking offering. ATM hardware revenue grew an exceptional 24% year over year, further extending our leading global installed base and driving meaningful, multi-year recurring revenue from attached services and licensed software. Our ATMaaS business increased nearly 40% and added its first customers in Latin America and the Middle East.

We continue to set the benchmark for service excellence with industry-leading service metrics and our customers have rewarded that performance with both a 30% improvement to our most recent Net Promoter Score and more of their business. Whether financial institutions and retailers choose to join our shared financial utility network or to outsource their self-service banking services, Atleos offers the most efficient, most comprehensive, and most reliable solution for customers.”

NCR Atleos Corporation (NYSE: NATL): (“Atleos”), a leader in expanding self-service financial access for financial institutions, retailers and consumers, today reported third quarter 2025 financial results. For the quarter ended September 30, 2025, Net Income Attributable to Atleos increased 24% to $26 million, or 2% of revenue, compared to Net Income Attributable to Atleos of $21 million, or 2% of revenue in the prior year period. GAAP Diluted EPS of $0.34 increased 21% from $0.28 in the prior year period. Adjusted EBITDA was $219 million in the third quarter of 2025, an increase of 7%, when compared to $205 million in the prior year period. Adjusted Diluted Earnings per share of $1.09 increased 22% from $0.89 in the prior year period.

Andy Wamser, Chief Financial Officer, added, “Despite the unanticipated challenges presented by tariff volatility and immigration-related payroll changes, Atleos continues to deliver on our financial commitments while making solid strategic progress. Diligent contingency planning, incremental cost productivity and a resilient team have allowed us to stay on pace for 2025. We anticipate beginning share repurchases this quarter and closing the year with net leverage of 2.8x.”

Third Quarter 2025 Operating Results

Revenue

Total Revenue increased 4% or $48 million, to $1.12 billion in the third quarter of 2025, including $783 million of recurring revenue, compared to $1.07 billion and $785 million, respectively, in the prior year period. Core Revenue, which excludes business with Voyix, improved 6% to $1.11 billion, compared to $1.05 billion in the prior year period, driven by continued growth in ATMaaS and stronger hardware demand. Results were partially offset by more muted network transaction volumes which have been impacted by U.S. immigration policy.

Gross Profit and Gross Margin

Gross Profit for the third quarter of 2025 increased 6% to $271 million, compared to $256 million in the prior year period. Gross Margin of 24.2% increased 30 basis points from the prior year period. Adjusted Gross Profit was $297 million, an increase of 6% when compared to $280 million in the prior year period. Results were driven by an improved mix in hardware as well as ATMaaS growth and were partially offset by higher cash vault interest expense. Adjusted gross margin increased 40 basis points to 26.5%, compared to 26.1% in the prior year period.

Net Income and Net Income Margin

Net income attributable to Atleos increased 24% to $26 million, or 2% of revenue, compared to $21 million, or 2% of revenue in the prior year period.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA in the third quarter of 2025 increased 7% to $219 million. Adjusted EBITDA margin of 19.5% expanded 40 basis points from 19.1% in the prior year period.

Other Results

Net cash provided by operating activities was $27 million. Adjusted free cash flow-unrestricted was $124 million.

Full Year 2025 Guidance

Adjusted Gross Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Earnings Per Share, and Adjusted Free Cash Flow – unrestricted are non-GAAP financial measures. A discussion of these non-GAAP measures, including a reconciliation to the most closely correlated GAAP measure, is attached to this release. With respect to our Adjusted EBITDA, Adjusted Free Cash Flow-unrestricted and Adjusted Diluted Earnings Per Share guidance, we do not provide a reconciliation to the most closely correlated GAAP measures because we are not able to predict with reasonable certainty the reconciling items that may affect net income, cash flow from operating activities and diluted earnings per share without unreasonable effort. The reconciling items are primarily the future impact of special tax items, capital structure transactions, restructuring, pension mark-to-market transactions, acquisitions or divestitures, or other events. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures.

Notes to Investors

Revision. During the second and third quarters of 2025, the Company identified immaterial misstatements in its previously issued financial statements. These misstatements resulted in an overstatement of previously reported pre-tax income during fiscal year 2023 of approximately $18 million, an overstatement of pre-tax income of approximately $14 million during fiscal year 2024, and overstatements of pre-tax income of approximately $4 million and $6 million during the first and second quarter of fiscal year 2025, respectively, as well as an impact to the previously-reported amounts in each of the interim periods within fiscal years 2023 and 2024.

The Company evaluated the impact of these misstatements to the previously issued annual and interim financial statements and determined that they were not material to any period. However, the Company is revising the previously-issued financial statements for impacted periods. The financial information included in this release reflects the revision.

2025 Third Quarter Earnings Conference Call

A conference call is scheduled for November 6, 2025 at 8:30 a.m. Eastern Time to discuss the third quarter 2025 results. Access to the conference call and accompanying slides, as well as a replay of the call, are available on Atleos’ web site at http://investor.ncratleos.com. Additionally, the live call can be accessed by dialing 800-330-6710 (United States/Canada Toll-free) or +1 646-307-1072 (International Toll) and entering the participant passcode 7681169. References to Atleos’ website and/or other social media sites or platforms in this release do not incorporate by reference the information on such websites, social media sites, or platforms, and Atleos disclaims any such incorporation by reference.

More information on Atleos’ third quarter earnings, including additional financial information and analysis, is available on Atleos’ Investor Relations website at https://investor.ncratleos.com/.

About Atleos

Atleos (NYSE: NATL) is the leader in expanding self-service financial access, with industry-leading ATM expertise and experience, unrivalled operational scale including the largest independently-owned ATM network, always-on global services and constant innovation. Atleos improves operational efficiency for financial institutions, drives footfall for retailers and enables digital-first financial self-service experiences for consumers. Atleos is ranked #12 in Newsweek’s prestigious 2025 Top 100 Global Most Loved Workplaces® list. Atleos is headquartered in Atlanta, Ga., with approximately 20,000 employees globally. For more information, visit www.ncratleos.com.

Forward-Looking Statements

This release 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 (the “Act”). Forward-looking statements use words such as “expect,” “anticipate,” “outlook,” “intend,” “plan,” “confident,” “believe,” “will,” “should,” “would,” “potential,” “positioning,” “proposed,” “planned,” “objective,” “likely,” “could,” “may,” and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to Atleos’ plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in this release, including but not limited to net leverage in Q4, revenue acceleration in ATMaaS business, 2025 total Revenue, Adjusted EBITDA, Adjusted Diluted EPS, Adjusted Free Cash Flow-restricted, cash flow and liquidity, timing of capital return and share repurchase, impact from tariffs and interest rates, constitute “forward-looking statements’ as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company’s present expectations. These risk and uncertainties include, but are not limited to, strategy and technology transforming our business model, our ability to integrate acquisitions and manage alliance activities, domestic and global economic and credit conditions, ability to properly assess expenses related to tariffs and other expenses, key employee retention and ability to attract talented employees, our relationships with third parties and any failures of our third-party suppliers, our level of indebtedness and our cash flow sufficiency to service our indebtedness or fund our share repurchase program, interest rate risks, terms governing our trade receivables liabilities, allegations or clams by third parties that our products and services infringe on intellectual property rights of others, our separation from parent Company, the impact of, and our ability to remediate, any current or future material weaknesses in our internal control over financial reporting and the perceived reliability of Atleos’ financial statements if Atleos is unable to satisfy requirements of Section 404 of the Sarbanes Oxley Act, that failure of NCR Voyix Corporation (“Voyix”) to perform under various transactions agreements, Atleos’ obligation to indemnify Voyix pursuant to the agreements entered into in connection with the spin-off (including with respect to material taxes), the risk that Voyix may not fulfill any obligations to indemnify Atleos under such agreements, currency movements and other risks of conducting business internationally and the impact of regulatory and litigation matters.

Additional information concerning these and other factors can be found in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s annual report on Form 10-K and subsequently filed reports. Any forward-looking statement speaks only as of the date on which it is made. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements.

Reconciliation of Non-GAAP Financial Measures

We supplement the reporting of our financial information determined under generally accepted accounting principles (“GAAP”) with certain non-GAAP adjusted financial measures. Management views and evaluates business performance on both a GAAP basis and by excluding costs and benefits associated with these non-GAAP adjusted financial measures. As a result, we believe the presentation of these non-GAAP adjusted financial measures better enables users of our financial information to view and evaluate underlying business performance from the same perspective as management.

Non-GAAP adjusted financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our non-GAAP adjusted financial measures do not represent a comprehensive basis of accounting and therefore may not be comparable to similarly titled measures reported by other companies.

Non-GAAP Adjusted Gross Profit and Adjusted Gross Margin, Non-GAAP Adjusted Income from Operations, and Non-GAAP Adjusted Diluted Earnings per Share exclude, as applicable, acquisition-related costs; pension mark-to-market adjustments and other one-time pension-related costs; separation-related costs; amortization of acquisition-related intangibles; stock-based compensation expense; transformation and restructuring charges (which includes integration, severance, divestiture and other exit and disposal costs); Voyix legal and environmental indemnification expense; foreign currency remeasurement impacts in hyper-inflationary countries; and other non-recurring or unusual items. Management uses these non-GAAP measures to evaluate performance consistently over various periods.

Non-GAAP Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) and Adjusted EBITDA Margin are determined by taking Net income (loss) attributable to Atleos and adding back interest expense, net; income tax expense (benefit); depreciation and amortization; acquisition-related costs; pension mark-to-market adjustments and other one-time pension-related costs; separation-related costs; transformation and restructuring charges (which includes integration, severance, divestiture and other exit and disposal costs); stock-based compensation expense; Voyix legal and environmental indemnification expense; and other amounts included in Other income (expense), net.

Contacts

News Media Contact
Scott Sykes

NCR Atleos Corporation

[email protected]

Investor Contact
Melanie Skijus

NCR Atleos Corporation

[email protected]

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