NCR Atleos Corporation (NYSE: NATL) (“Atleos”) reported financial results today for the three months ended June 30, 2024. Second quarter results and other recent highlights include:

• Strong second quarter financial results were at or above the high-end of guidance ranges

• Revenue grew 4% year-over-year to $1.08 billion; Recurring revenue grew 9% to $793 million

• GAAP net income of $29 million; Adjusted EBITDA of $193 million

• Operating cash flow of $9 million; Adjusted free cash flow ⁽¹⁾ of $16 million

• GAAP fully diluted income per share of $0.39; Non-GAAP fully diluted earnings per share of $0.81

• Company reaffirms and narrows ranges for full year 2024 targets; Issues third quarter guidance

“The second quarter capped a highly successful first half of the year for NCR Atleos. We delivered strong financial results that were at the high-end or above our guidance ranges, continued to elevate execution across our businesses, and advanced our strategic initiatives,” said Tim Oliver, President and Chief Executive Officer. “Our intensified focus on product and service quality, coupled with our differentiated ATM outsourcing capabilities drove increased interest in our solutions that enable financial institutions and retail partners to offer more efficient, high quality, and flexible banking experiences to consumers.” Mr. Oliver continued, “Given the strong first-half financial results, a robust sales pipeline, and building commercial momentum, we believe the Company is on track to achieve its goals this year and we reaffirm and narrow consolidated guidance ranges for full year 2024 targets.”

Second Quarter 2024 Operating Results

The core business segments continue to deliver strong results:

• Second quarter revenue was $1.08 billion, including $793 million of recurring revenue, compared to $1.04 billion and $730 million, respectively, in the prior year period.

• Second quarter gross profit was $253 million with a gross profit rate of 23.4% on a GAAP basis, compared to $247 million and 23.8%, respectively, in the prior year period. Second quarter adjusted gross profit (non-GAAP) was $276 million with an adjusted gross profit rate of 25.5%, compared to $270 million and 26.0%, respectively, in the prior year period.

• Second quarter income from operations was $107 million on a GAAP basis, compared to $79 million in the prior year period. Second quarter adjusted income from operations (non-GAAP) was $152 million compared to $161 million in the prior year period.

• Second quarter net income attributable to Atleos was $29 million on a GAAP basis, compared to net income attributable to Atleos of $53 million in the prior year period.

• Second quarter Adjusted EBITDA was $193 million compared to $198 million in the prior year period.

Notes to Investors

On October 16, 2023, NCR Atleos Corporation (“Atleos”, the “Company”, “we” or “us”) became a standalone publicly traded company, and its financial statements are now presented on a consolidated basis. Prior to the separation from NCR Voyix Corporation (“NCR” or “Voyix”), the Company’s historical combined financial statements were prepared on a standalone carve-out basis and were derived from Voyix’s consolidated financial statements and accounting records. Therefore, financial results for the three and six months ended June 30, 2024 and 2023 may not be meaningfully comparable.

In this release, we use certain non-GAAP measures. These non-GAAP measures include “Adjusted EBITDA,” and others with the words “non-GAAP” or “adjusted” in their titles. These non-GAAP measures are listed, described and reconciled to their most directly comparable GAAP measures under the heading “Non-GAAP Financial Measures” later in this release.

With respect to our Adjusted EBITDA, adjusted free cash flow-unrestricted and non-GAAP diluted earnings per share 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 affect the GAAP net income, GAAP cash flow from operating activities and GAAP 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. Refer to the heading “Non-GAAP Financial Measures” for additional information regarding our use of non-GAAP financial measures.

Third Quarter and Full Year 2024 Guidance

2024 Second Quarter Earnings Conference Call

A conference call is scheduled for August 14, 2024 at 8:30 a.m. Eastern Time to discuss the second quarter 2024 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 800-753-0725 (United States/Canada Toll-free) or 786-460-7170 (International Toll) and entering the participant passcode 8004782. 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’ second quarter earnings, including additional financial information and analysis, is available on Atleos’ Investor Relations website at https://investor.ncratleos.com/.