NCR Voyix (VYX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $617 million, down 13% year-over-year, with recurring revenue up 2% and now 66% of total revenue; platform sites grew 27% and payment sites 7% year-over-year.

• Adjusted EBITDA rose 19% to $75 million, reflecting cost reduction initiatives and improved service margins.

• Net loss from continuing operations narrowed to $20 million from $71 million in Q1 2024; non-GAAP diluted EPS improved to $0.09 from $(0.15).

• Major portfolio changes included the completed spin-off of NCR Atleos and the sale of the Digital Banking segment for $2.45 billion.

• Strategic focus on transitioning to recurring, subscription-based revenue, with new cloud-native platform and payment solutions launching in the second half of 2025.

Financial highlights

• Product/hardware revenue fell 31% to $153 million, while software & services revenue was $479 million, down from $515 million year-over-year.

• Recurring revenue increased 2% to $407 million, now 66% of total revenue.

• Adjusted EBITDA margin improved to 12.2% from 8.9% year-over-year.

• Net cash used in operating activities was $42 million; cash and equivalents at quarter-end were $573 million.

• Adjusted free cash flow was a use of $20 million, impacted by seasonality and timing of cash receipts.

Outlook and guidance

• 2025 revenue guidance: $2.575 billion–$2.65 billion; software & services: $1.995 billion–$2.02 billion; hardware: $580 million–$630 million.

• Adjusted EBITDA guidance is $420 million–$445 million (16.3%–16.8% margin); non-GAAP diluted EPS: $0.75–$0.80.

• Adjusted free cash flow for the year expected at $170 million–$190 million, excluding restructuring and certain tax payments.

• Guidance assumes current FX rates and considers tariff impacts and mitigations.

• Tariff-related costs estimated at $8–$12 million for the remainder of the year, up to $20 million if all suppliers implement surcharges.