VYX earnings analysis
What we found in VYX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
NCR Voyix reported Q2 revenue of $523 million, down 21% year over year, primarily because the Hardware Business Transition shifted hardware sales from gross product revenue to net commission revenue beginning April 1, 2026. Mix improvement supported a 710-basis-point increase in gross margin to 29.8%, operating income of $14 million versus $13 million, and 5% Adjusted EBITDA growth to $98 million. Cash flow improved sharply, but Restaurants weakened and the company retains $1.1 billion of debt versus $237 million of cash; GAAP EPS was not disclosed in the provided filing text.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue declined YoY but improved sequentially
- Q2 revenue was $523 million, down 21% from $660 million a year earlier, but increased sequentially from an implied $606 million in Q1 2026. The year-over-year decline largely reflects the April 1, 2026 move to net hardware commission accounting.
- Material gross-margin expansion
- Gross margin expanded 710 basis points to 29.8% from 22.7%, with gross profit rising 4% to $156 million from $150 million despite the $137 million revenue reduction. Service gross margin increased to 30.2% from 28.2%.
- Profitability improved despite lower revenue
- Operating income increased to $14 million from $13 million, lifting operating margin to 2.7% from 2.0%. Adjusted EBITDA rose 5% to $98 million and represented 18.7% of revenue, versus $93 million and 14.1%.
- Revenue mix shifted toward recurring software/services
- Recurring revenue increased 3% to $435 million and reached 83.2% of revenue, versus $421 million and 63.8% a year ago. Software and services revenue grew 1% to $497 million, comprising 95.0% of sales.
- Cash generation turned positive
- Six-month operating cash flow turned positive at $59 million from an outflow of $284 million, while adjusted free cash flow-unrestricted was $56 million after $77 million of capital expenditures. Capex equaled 6.8% of six-month revenue of $1.129 billion.
- Retail earnings resilience
- Retail adjusted EBITDA rose 20% to $97 million on favorable software mix and cost actions, although revenue fell 20% to $365 million. Retail recurring revenue increased 6%.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Hardware transition depresses reported revenue
- Reported Q2 revenue fell 21% to $523 million, including an 85% decrease in product revenue to $27 million. Effective April 1, 2026, hardware sales are recognized as net commissions rather than gross revenue, reducing reported sales comparability.
- Restaurants segment contracted materially
- Restaurants revenue declined 23% to $158 million and segment Adjusted EBITDA declined 15% to $58 million. Management cited lower SaaS, software-license, software-maintenance, and non-recurring installation-services revenue.
- Leverage remains substantial
- Liquidity includes $237 million of cash against $1.1 billion of total debt, plus approximately $207 million of Series A preferred-stock redemption value. Interest expense increased to $15 million from $14 million.
- No formal risk-factor update; macro risks persist
- The filing reports no material changes to risk factors from the 2025 Form 10-K, but identifies evolving tariffs, geopolitical conflicts, inflation, currency fluctuations and technology-component shortages as macro uncertainties. A 10% U.S.-dollar appreciation would decrease hedge-portfolio fair value by less than $21 million.
- Restructuring and transition costs remain elevated
- Transformation and restructuring costs were $20 million in Q2 and $43 million for the first six months, while strategic-initiative costs were $20 million year to date. These costs continue to weigh on GAAP earnings and cash conversion.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 29.8%
- Operating margin
- 2.7%
- Segment
- Retail revenue: $365 million, down 20% year over year; segment Adjusted EBITDA: $97 million, up 20%.
- Segment
- Restaurants revenue: $158 million, down 23% year over year; segment Adjusted EBITDA: $58 million, down 15%.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management states it expects to contribute $12 million to international pension plans and $23 million to its postemployment plan during 2026, and believes existing liquidity is sufficient to meet expected obligations.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 7, 2026
- NCR Voyix reported Q1 2026 with revenue of $606 million, slightly below the estimate of $582 million, and an EPS of $(0.04) against expectations of $0.06. Total revenue decreased by 1% compared to the prior year, driven…
- 10-K · February 26, 2026
- NCR Voyix (VYX) is executing a strategic shift toward a microservices-based Voyix Commerce Platform, SaaS, payments and services while outsourcing hardware production to Ennoconn. Fiscal 2025 shows a return to…
- 10-Q · November 6, 2025
- NCR Voyix reported Q3 revenue of $684.0M, down $24.0M (-3.4%) versus Q3 2024, while gross margin improved to ~24.3% from ~23.6%. Operating income was $15M (operating margin ~2.2%) and continuing-operations diluted EPS…
- 10-Q · May 8, 2025
- NCR Voyix reported Q1 revenue of $617.0M, down $93.0M (-13.1%) versus Q1 2024; gross margin improved to ~21.9% from 19.4% but the company remained operating loss-making at $(20)M. Cash and working capital declined (cash…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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