Diebold Nixdorf (DBD) investor relations material

Executive summary

• Q3 non-GAAP revenue was $990.9M, up 5% YoY, and adjusted EBITDA was $127.8M, up 5%; retail growth was offset by mix, memory costs and project timing.

• Retail revenue grew 16.1% for a fourth consecutive quarter of double-digit growth; Banking revenue increased modestly.

• GAAP operating profit fell to $38.8M from $73.8M and net income attributable to shareholders fell to $6.6M from $41.1M.

• FY26 adjusted EBITDA, free cash flow and EPS guidance were reduced; revenue guidance narrowed slightly.

Financial highlights

• GAAP net sales were $994.3M versus $945.2M; non-GAAP revenue was $990.9M versus $945.2M.

• Adjusted EBITDA was $127.8M, with a 12.9% margin, flat YoY; non-GAAP operating profit rose 7% to $92.6M.

• Non-GAAP EPS was $1.34, down 4% YoY; GAAP diluted EPS was $0.19 versus $1.11.

• Non-GAAP gross margin was 25.3%, down 90 bps YoY; product gross margin fell 530 bps to 22.1%, primarily on mix.

• Q3 free cash flow was a $45.9M use excluding discrete tax payments; adjusted OpEx declined for a third consecutive quarter.

Outlook and guidance

• FY26 non-GAAP revenue guidance narrowed to $3.86B–$3.90B from $3.86B–$3.94B; Turkey revenue is excluded from non-GAAP guidance.

• Adjusted EBITDA guidance fell to $490M–$510M from $510M–$535M; adjusted EPS guidance fell to $4.50–$4.85 from $5.25–$5.75.

• Free cash flow guidance fell to $190M–$210M from $255M–$270M; FY26 excludes ~$50M of German cash taxes attributable to 2024 and 2025.

• Q4 adjusted EBITDA, EPS and free cash flow are expected to grow sequentially; full-year operating expenses are expected to decline at least 2% YoY.

• Q4 service gross margin is expected at 26.7% and product gross margin near 24%; 2027 guidance is under annual planning, with an update expected in February.