8-K: NCR Voyix Reports First Quarter 2025 Results: Revenue Declines, but Adjusted EBITDA Improves

NCR Voyix reported a decrease in revenue for Q1 2025, but saw an increase in adjusted EBITDA and maintained its full-year outlook.

Summary

• NCR Voyix Corporation reported its financial results for the first quarter of 2025.
• Revenue was $617 million, down from $710 million in the prior year period.
• Net loss from continuing operations attributable to NCR Voyix was $20 million, compared to a net loss of $71 million in the prior year period.
• Adjusted EBITDA was $75 million, compared to $63 million in the prior year period.
• Diluted EPS from continuing operations was $(0.17), while non-GAAP diluted EPS was $0.09.
• Software & Services Revenue was $479 million, compared to $515 million in the prior year period.
• ARR was $1.62 billion, compared to $1.58 billion in the prior year period.
• Software ARR was $775 million, compared to $740 million in the prior year period.
• The company is maintaining its full-year 2025 outlook, with total revenue expected to be between $2,575 million and $2,650 million.
• Software and Services Revenue is projected to be between $1,995 million and $2,020 million.
• Hardware Revenue is expected to be between $580 million and $630 million.
• Adjusted EBITDA is projected to be between $420 million and $445 million.
• Non-GAAP Diluted EPS is expected to be between $0.75 and $0.80.
• Adjusted Free Cash Flow Unrestricted is projected to be between $170 million and $190 million.
• As of March 31, 2025, the Company had more than 77 thousand platform sites and 8 thousand payment sites, an increase of 27% and 7%, respectively, year-over-year.
• During the first quarter, the Company completed $62 million of common share repurchases, repurchasing approximately 5 million shares under its share repurchase program.
• In April 2025, the Company completed an additional $7 million of common share repurchases, repurchasing an additional approximately 1 million shares.
• On May 6, 2025, the Company's board of directors adopted an amended share repurchase program which increased the total aggregate repurchase authority under the Company's share repurchase program to $200 million and also expanded the program to include the ability to repurchase the Company's Series A preferred stock in addition to common shares.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While revenue declined, the company improved its net loss and increased adjusted EBITDA. The reaffirmation of the full-year outlook provides some confidence, but the challenges of the economic environment and market volatility remain.

Positives

• Adjusted EBITDA increased to $75 million from $63 million in the prior year period.
• Net loss from continuing operations improved to $20 million from $71 million in the prior year period.
• ARR increased to $1.62 billion from $1.58 billion in the prior year period.
• Software ARR increased to $775 million from $740 million in the prior year period.
• The company completed $62 million in share repurchases during Q1 2025 and an additional $7 million in April 2025.
• The board increased the share repurchase program to $200 million and expanded it to include Series A preferred stock.
• Platform sites increased by 27% year-over-year, reaching more than 77 thousand sites.
• Payment sites increased by 7% year-over-year, reaching 8 thousand sites.

Negatives

• Revenue decreased to $617 million from $710 million in the prior year period.
• Software & Services Revenue decreased to $479 million from $515 million in the prior year period.
• Diluted EPS from continuing operations was $(0.17).

Risks

• The company's outlook considers the current estimated impact for the trade tariffs that have been imposed or announced by the U.S. government as well as the offsetting mitigations the Company is undertaking as a result.
• The company's outlook assumes foreign currency exchange rates remain consistent with rates as of March 2025.
• The company's ability to realize the anticipated cost savings or other benefits related to the Hardware Business Transition with Ennoconn on a timely basis or at all.
• Potential indemnification obligations to NCR Atleos or a refusal of NCR Atleos to indemnify us pursuant to agreements executed in the spin-off.
• Risks related to evolving global laws and regulations relating to data privacy, data protection and information security.

Future Outlook

For the full year 2025, the Company is maintaining its outlook for total revenue between $2,575 million and $2,650 million, Software and Services Revenue between $1,995 million and $2,020 million, Hardware Revenue between $580 million and $630 million, Adjusted EBITDA between $420 million and $445 million, Non-GAAP Diluted EPS between $0.75 and $0.80, and Adjusted Free Cash Flow Unrestricted between $170 million and $190 million.

Management Comments

• Our first quarter performance was in line with our expectations despite the softer economic environment and ongoing market volatility, said James G. Kelly, Chief Executive Officer.
• We signed new customers in both our retail and restaurants segments, expanded key existing relationships and signed customers to the platform, and progressed on the implementation of our payments and hardware ODM agreements.

Industry Context

NCR Voyix operates in the competitive digital commerce solutions market, serving the retail and restaurant industries. The results reflect the challenges of a 'softer economic environment' and 'ongoing market volatility', which are impacting many companies in the technology sector. The company's focus on recurring revenue streams and platform growth aligns with industry trends towards SaaS and subscription-based models.

Comparison to Industry Standards

• It's difficult to provide a precise comparison without knowing the specific mix of NCR Voyix's business segments and the exact definitions of their non-GAAP metrics.
• However, companies like Block (formerly Square) and Shopify also focus on providing commerce solutions to restaurants and retailers.
• Block's focus on small businesses and Shopify's e-commerce platform make them relevant comparators.
• NCR Voyix's ARR of $1.62 billion is a key metric to watch, as it indicates the predictability of future revenue.
• Comparing this to the ARR or subscription revenue of companies like Block and Shopify would provide a better sense of NCR Voyix's competitive position.

Stakeholder Impact

• Shareholders: The share repurchase program and improved profitability could be viewed positively.
• Employees: The company's performance and outlook could impact employee morale and job security.
• Customers: The company's ability to innovate and provide high-quality service is crucial for customer satisfaction.
• Suppliers: The company's financial health impacts its ability to meet its obligations to suppliers.

Next Steps

• The company will continue to execute its growth strategy.
• The company will continue to develop new solutions that achieve market acceptance and keep pace with technological developments.
• The company will continue to focus on maintaining a consistently high level of customer service.
• The company will continue to focus on achieving some or all of the expected benefits of its cost reduction initiatives.
• The company will continue to focus on its strategic relationships with third parties and its ability to integrate with third-party applications and software.

Key Dates

Keywords

financial results, NCR Voyix, EBITDA, revenue, ARR, share repurchase, Q1 2025