NCR Atleos Corporation Reports Third Quarter 2025 Results
Tuesday, November 11th, 2025
NCR Atleos Corporation (NYSE: NATL):
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Total Revenue of $1.12 billion, an increase of 4% y/y, with 70% from recurring revenue streams.
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Core Revenue, excluding Voyix, of $1.11 billion, an increase of 6% y/y.
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ATMaaS revenue growth accelerated to 37% y/y; greater than 40% growth expected in Q4.
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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.
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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.
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Net Cash Flow provided by operating activities of $27 million; Adjusted Free Cash Flow was $124 million.
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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 $124 million.
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REVENUE AND ADJUSTED EBITDA SUMMARY (Unaudited) |
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For the Periods Ended September 30 |
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Three Months |
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($ in millions) |
2025 |
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2024 |
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% Change |
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Revenue by segment |
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Self-Service Banking |
$ |
744 |
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$ |
672 |
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11 % |
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Network |
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328 |
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332 |
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(1) % |
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T&T |
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40 |
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46 |
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(13) % |
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Total segment revenue |
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1,112 |
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1,050 |
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6 % |
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Other (1) |
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9 |
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23 |
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(61) % |
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Consolidated revenue |
$ |
1,121 |
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$ |
1,073 |
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4 % |
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Adjusted EBITDA by segment |
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Self-Service Banking |
$ |
196 |
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$ |
162 |
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21 % |
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Self-Service Banking Adjusted EBITDA margin % |
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26.3 % |
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24.1 % |
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Network |
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93 |
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102 |
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(9) % |
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Network Adjusted EBITDA margin % |
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28.4 % |
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30.7 % |
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T&T |
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8 |
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9 |
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(11) % |
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T&T Adjusted EBITDA margin % |
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20.0 % |
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19.6 % |
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Other (1) |
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— |
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3 |
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(100) % |
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Corporate (2) |
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(78) |
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(71) |
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10 % |
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Total Adjusted EBITDA |
$ |
219 |
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$ |
205 |
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7 % |
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Total Adjusted EBITDA margin % |
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19.5 % |
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19.1 % |
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(1) |
Represents certain other immaterial business operations that do not represent a reportable segment, including commerce-related operations in countries that Voyix exited that are aligned to Atleos. Other also includes revenues from commercial agreements with Voyix. |
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(2) |
Includes income and expenses related to corporate functions not specifically attributable to an individual reportable segment. |
Full Year 2025 Guidance
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FY 2025 Targets |
2025 Initial Guidance |
2024 Base (3) |
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Core Revenue |
3% to 6% growth constant currency (est. FX impact -2%) |
$4,175 million |
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Total Revenue |
1% to 3% growth constant currency (est. FX impact -2%) Assumes Voyix-related revenue down ~$100M |
$4,317 million |
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Total Adjusted EBITDA (1) |
7% to 10% growth constant currency (est. FX impact -1%) |
$794 million |
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Adjusted Diluted EPS (2) |
21% to 27% growth |
$3.22 |
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Adjusted free cash flow-unrestricted |
$260 - $300 million |
$242 million |
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(1) Adjusted EBITDA previously included certain amounts reported in Other income (expense), net. Beginning in 2025, we exclude total Other income (expense), net from Adjusted EBITDA, which in 2024 would have resulted in Adjusted EBITDA of $794 million, not including the impact of the revision to our 2024 financial statements discussed in the section entitled "Notes to Investors". (2) Incorporates consensus average SOFR rates for the year in interest expense. (3) Does not reflect the impact of the revision to our 2024 financial statements or change in our definition of Non-GAAP Adjusted Diluted EPS set forth in "Notes to Investors", as those changes do not impact the guided ranges previously communicated. |
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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/.
