NCR Atleos, LLC ((NATL)) has held its Q3 earnings call. Read on for the main highlights of the call.
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NCR Atleos, LLC recently held its Q3 2025 earnings call, presenting a generally positive sentiment despite some challenges. The company highlighted significant achievements in financial performance, segment growth, and strategic initiatives, while also acknowledging hurdles such as tariffs and a decline in prepaid payroll card transactions.
Separation from Legacy NCR Completed
NCR Atleos successfully completed its separation from Legacy NCR, a monumental task involving the bifurcation or duplication of 140 years of IT systems and hardware. This process included the separation of hundreds of global locations, the establishment of dozens of new legal entities, and the migration of over 700 critical customer connections.
Solid Financial Performance
The company reported a robust financial performance with a 6% core top-line growth, a 7% increase in EBITDA, and an impressive 22% growth in earnings per share for Q3 2025. These figures underscore the company’s strong financial health and operational efficiency.
Self-Service Banking Segment Success
NCR Atleos’s self-service banking segment demonstrated remarkable success, with revenue growing 11% year-over-year. The segment saw a 25% increase in hardware deliveries and a 5% growth in services and software, highlighting its expanding market presence.
ATM-as-a-Service Growth
The ATM-as-a-Service segment experienced substantial growth, with a 37% year-over-year increase and $195 million in total contract value bookings. The company expects the annual recurring revenue (ARR) to exceed $300 million by the end of the year.
Network Segment Expansion
The network segment expanded its machine count to approximately 81,000 units, achieving a 2% year-over-year increase in average revenue per user (ARPU). This growth reflects the segment’s ongoing expansion and customer base strengthening.
Tariffs Impact
Tariffs pose a potential challenge, with an estimated impact of $25 million on the business this year. The uncertainty surrounding future tariff rates continues to affect the company’s forecasts and strategic planning.
Challenges in Network Segment
The network segment faced challenges due to lower prepaid payroll card transactions, resulting in a 1% year-over-year decline in segment revenue. This issue highlights the need for strategic adjustments to counteract declining transaction volumes.
Forward-Looking Guidance
Looking ahead, NCR Atleos emphasized its commitment to maintaining consistent financial performance and strategic capital allocation to ensure growth. The company has achieved a targeted leverage level of 3x and aims to reduce it to about 2.8x by year-end. Despite restrictions on share repurchases in Q3, they plan to resume in the upcoming trading window. Atleos anticipates substantial free cash flow conversion improvement in 2026, approaching 35% of adjusted EBITDA.
In conclusion, NCR Atleos’s Q3 2025 earnings call reflected a positive outlook with strong financial performance and strategic growth initiatives. Despite challenges such as tariffs and declining prepaid payroll card transactions, the company remains focused on achieving its financial targets and expanding its market presence.