10-Q · May 7, 2026
NCR Atleos Corporation reported Q1 2026 earnings with a revenue of $1.04 billion, marking a 7% increase year-over-year, though it fell short of estimates. The diluted EPS was $0.65, missing the expected $0.88, and…
Earnings analysis · 10-Q
NATL earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
NCR Atleos delivered flat Q2 revenue of $1.103 billion but substantially improved profitability, with gross margin up 510 basis points to 28.0%, operating income up 31% to $156 million, and GAAP diluted EPS of $0.86.…
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NCR Atleos delivered flat Q2 revenue of $1.103 billion but substantially improved profitability, with gross margin up 510 basis points to 28.0%, operating income up 31% to $156 million, and GAAP diluted EPS of $0.86. Growth in ATMaaS, software, and recurring revenue offset weaker hardware sales and softer crypto-related Network demand. The principal offset is cash conversion: six-month operating cash flow fell to $21 million from $98 million, while debt remained $2.829 billion. Management provided no financial outlook because of the pending Brink's merger, expected to close early in Q1 2027.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.86
What stood out
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Profit rose despite flat year-over-year revenue
Q2 revenue was $1.103 billion, essentially flat versus $1.102 billion a year earlier, but up from $1.04 billion in Q1 2026. GAAP diluted EPS was $0.86, versus $0.60 in Q2 2025 and $0.29 in Q1 2026.
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Material gross and operating-margin expansion
Gross margin increased 510 basis points year over year to 28.0%, while operating income rose 31% to $156 million, implying a 14.1% operating margin versus 10.8% a year ago. Management cited tariff refunds, software/services mix, productivity, and favorable Network settlement processing.
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Recurring SSB offerings offset hardware decline
Self-Service Banking revenue increased 1% to $741 million and adjusted EBITDA increased 13% to $212 million. Services revenue rose 5% to $389 million and software revenue rose 15% to $156 million, with ATMaaS revenue up to $77 million from $62 million.
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Network profitability outpaced revenue
Network adjusted EBITDA increased 23% to $106 million despite segment revenue declining 1% to $316 million. Positive settlement processing and lower vault-cash costs supported earnings, while managed units held at 77.0 thousand.
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Recurring revenue base continued to expand
Recurring revenue rose to $776 million from $772 million and represented 70.4% of revenue, versus 70.1% a year ago. Self-Service Banking ARR increased to $1.721 billion from $1.679 billion.
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Lower interest expense aided earnings growth
Interest expense fell $7 million year over year to $62 million, helping net income attributable to Atleos increase 67% to $65 million. Adjusted EBITDA rose 25% to $254 million, or 23.0% of revenue.
What to watch
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Working capital sharply reduced operating cash flow
Cash conversion weakened: six-month operating cash flow fell to $21 million from $98 million, and adjusted free cash flow-unrestricted was only $3 million versus negative $10 million. Management attributed the $77 million operating-cash-flow decline to merchant settlement timing, contract liabilities, and other working-capital requirements.
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Hardware, crypto demand and T&T remain weak
Hardware revenue in Self-Service Banking declined 13% to $196 million, Network revenue declined 1% to $316 million amid lower crypto-transaction demand and mix pressure, and T&T adjusted EBITDA fell 22% to $7 million.
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Input-cost and leveraged-balance-sheet exposure
Management anticipates fuel and memory-chip costs could remain elevated for the rest of 2026 and pressure future gross margin. Liquidity is constrained by $2.829 billion of total debt, including $1.350 billion of 9.500% secured notes due 2029 and $1.243 billion of term loans; Item 1A reports no material changes to previously disclosed risk factors.
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Merger execution limits outlook and capital returns
The pending Brink's deal is expected to close early in Q1 2027, but remains subject to regulatory and customary conditions. Consideration is $30.00 cash plus 0.1574 Brink's shares per Atleos share, and the company has suspended its repurchase program after spending $15 million on roughly 0.4 million shares during the first half.
Management's outlook
The company did not provide a financial outlook because of the pending Brink's transaction. Management expects the merger to close early in the first quarter of 2027, subject to regulatory approvals and other customary closing conditions.
Earlier filings 4
10-K · February 27, 2026
NCR Atleos Corporation reports a 1% increase in total revenue to $4.35 billion for the year ended December 31, 2025, compared to 2024, driven mainly by a 7% increase in the Self-Service Banking segment. The company…
10-Q · November 6, 2025
NCR Atleos Corporation reported stronger than expected financial performance for Q3 2025, achieving a revenue of $1.12 billion, surpassing estimates. Their EPS also exceeded consensus forecasts at $1.09, reflecting a…
10-Q · August 7, 2025
NCR Atleos Corporation reported strong Q2 2025 results with revenues at $1.104 billion and EPS at $0.93, beating estimates by 2.1% and 19.2% respectively. The company experienced a notable growth in its Self-Service…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.