Diebold Nixdorf — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP revenue increased 5% year-over-year to $994.3 million; non-GAAP revenue was $990.9 million.
• GAAP gross profit increased to $247.2 million from $245.1 million; non-GAAP gross profit increased to $250.4 million from $247.9 million.
• GAAP net income was $7.1 million; adjusted EBITDA (non-GAAP) was $127.8 million.
• GAAP EPS was $0.19 compared to $1.11 in the prior year; adjusted EPS (non-GAAP) was $1.34 compared to $1.39 in the prior year.
• Net cash used in operating activities (GAAP) was $(47.4) million; free cash flow (non-GAAP) was $(45.9) million, excluding discrete tax payments.
• Nine-month GAAP revenue was $2,816.8 million (up 4.3%); nine-month non-GAAP revenue was $2,806.7 million (up 3.9%).
• Nine-month GAAP net income was $28.9 million; nine-month adjusted EBITDA was $347.5 million (up 8.5%).
• Nine-month GAAP EPS was $0.77; nine-month adjusted EPS was $3.06 (calculated from $103.9M non-GAAP net income / 34.4M shares).
• Deferred revenue decreased to $254.1 million from $325.8 million as of December 31, 2025.
• Long-term debt increased to $949.3 million from $938.5 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue outlook narrowed to $3.86 billion – $3.90 billion (previously $3.86 billion – $3.94 billion).
• Full-year 2026 adjusted EBITDA outlook lowered to $490 million – $510 million (previously $510 million – $535 million).
• Full-year 2026 free cash flow outlook lowered to $190 million – $210 million (previously $255 million – $270 million).
• Full-year 2026 adjusted earnings per share outlook lowered to $4.50 – $4.85 (previously $5.25 – $5.75).
• Outlook updates reflect changes in revenue mix, cost pressures in raw materials, and working capital requirements.
• Management expects to pay approximately $50 million in discrete German cash taxes attributable to 2024 and 2025 tax years during 2026, excluded from free cash flow.

Business Segments and Product Lines:

• Retail revenue grew 16% year-over-year, driven by double-digit growth.
• Banking segment showed improvement and broader automation opportunities.
• Signed a contract for more than 500 DN Series® cash recyclers with a large North American bank.
• Achieved a large Branch Automation Solutions win in Latin America for 360 in-branch DN Series cash recyclers.
• Won a competitive deal for 1,450 ATMs and expanded the install base for a major customer in Asia.
• Secured a new customer win with a North American regional grocer for approximately 1,200 point-of-sale lanes across 200 stores.
• Refreshed 6,000 self-checkout units for a large European grocery chain.
• Signed a new services agreement valued at more than $25 million to support electronic shelf label technology for a U.K.-based multinational retailer.

Market and Competitive Landscape:

• Strategic wins in Banking and Retail reinforce long-term growth opportunities.
• Continued strong momentum in Europe with leadership position in retail solutions.
• Expansion in North America Retail contributes to revenue growth.

Risks and Challenges:

• Cost pressures in raw materials impact profitability.
• Working capital requirements and timing of VAT refunds affect cash flow.
• Discrete German tax liabilities for 2024 and 2025 tax years impact free cash flow.
• Potential risks include geopolitical instability, trade policy changes, tariffs, and currency exchange rate fluctuations.
• Risks related to the impact of payment options other than cash reducing ATM usage.
• Risks associated with cybersecurity incidents, operational failures, and regulatory changes regarding data protection.
• Reliance on suppliers and availability of raw materials.
• Potential for additional pension liability or expense.

Management Commentary and Tone:

• Octavio Marquez, President and CEO, described the quarter as "solid" with growth in revenue and adjusted EBITDA.
• Management highlighted continued strength in Retail, improvement in Banking, and disciplined operating expense management.
• Tone remains focused on improving profitability and cash conversion while investing in opportunities for sustainable growth.
• Management acknowledges encouraging underlying business performance but notes the need to update outlook due to mix changes and cost pressures.

Other Key Points:

• The Board authorized a new $250 million share repurchase program.
• Conference call and webcast held on Oct. 28, 2026, at 8:30 a.m. ET with Octavio Marquez and Tom Timko.
• Company operates in more than 100 countries with approximately 20,000 employees worldwide.
• Non-GAAP measures exclude non-core Turkey entity revenue of approximately $10 million year-to-date in 2026.
• Free cash flow excludes discrete tax payments to better reflect underlying operating cash generation.