NCR Atleos (NATL) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong financial and operational results, with core revenue up 4% year-over-year and adjusted EBITDA margin at 18.6%, driven by robust hardware and ATM outsourcing demand.

• Net income rose 50% to $45 million, with diluted EPS up 46% to $0.60 and non-GAAP EPS up 9% to $0.93.

• 70% of revenue came from recurring streams, reflecting a successful shift to a service-first, recurring revenue model.

• Completed separation from legacy NCR, now operating as a pure-play, independent company.

• $200 million share repurchase program authorized, representing about 10% of market cap, to be executed over two years.

Financial highlights

• Q2 2025 revenue reached $1.1 billion, up 2–4% year-over-year; hardware revenue up 18–20%, services/software up 1–3%.

• Adjusted EBITDA was $205 million, up 4% year-over-year, with margin expanding 40 bps to 18.6%.

• GAAP net income was $45 million, and GAAP diluted EPS was $0.60, both up 50% and 46% year-over-year, respectively.

• Free cash flow for Q2 was $15 million, with significant ramp expected in H2 2025.

• Gross margin for Q2 was 22.9% GAAP, with adjusted gross margin at 24.9%.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: core revenue growth of 3–6% constant currency, adjusted EBITDA growth of 7–10%, and non-GAAP EPS growth of 21–27%.

• Adjusted free cash flow (unrestricted) guidance is $260–$300 million, with a 40%/60% split between Q3 and Q4.

• Adjusted EPS for Q3 expected in the $0.95–$1.10 range.

• Net leverage targeted below 3x by Q3, with continued focus on debt reduction and share repurchases.