NCR Atleos (NATL) Q1 2026 earnings summary

Executive summary

• Revenue grew 7% year-over-year to $1.04 billion, with 72% from recurring revenue streams, driven by Self-Service Banking hardware and ATMaaS growth.

• Net income rose to $22 million, up 69% or 57% depending on calculation, with EPS of $0.30 basic and $0.29 diluted, reflecting gains from divestitures and improved defined benefit plan income.

• Self-Service Banking revenue grew 12% year-over-year, with hardware up 23% and ATMaaS revenue up 29–30%.

• Gross margin compressed to 22.4% from 23.7% due to higher tariffs, increased vault cash costs, and component price inflation.

• A merger agreement with Brink's was signed, with closing expected by end of Q1 2027, subject to regulatory and shareholder approvals.

Financial highlights

• Product revenue increased 17% to $221 million; service revenue rose 4% to $822 million.

• Recurring revenue accounted for 72.3% of total revenue, up 2 percentage points year-over-year.

• Net income: $22 million (+57% y/y); adjusted EBITDA: $172 million (flat y/y); adjusted EBITDA margin: 16.5%, down from 17.6%.

• Net cash used in operating activities was $9 million, down from $123 million provided in the prior year, mainly due to working capital changes.

• $15 million was spent on share repurchases, with $157 million remaining under the program.

Outlook and guidance

• Management expects elevated component costs and macroeconomic pressures to continue impacting gross margin for the remainder of the year.

• No formal financial outlook provided due to pending transaction with The Brink's Company.

• Anticipates no further share repurchases in 2026.

• Expects to recognize revenue on three-quarters of $2.3 billion in remaining performance obligations over the next 12 months.

• Management anticipates continued sequential growth in earnings and free cash flow, with improved net leverage through the year.