NCR Atleos Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the first nine months of 2026 was $3.2 billion, up 1% year-over-year; Q3 total revenue was $1.1 billion, down 2% year-over-year.
• Net income attributable to Atleos for the first nine months was $184 million, up 133% year-over-year; Q3 net income was $97 million, up 273% year-over-year.
• Adjusted EBITDA for the first nine months was $667 million, up 12% year-over-year; Q3 Adjusted EBITDA was $241 million, up approximately 10% year-over-year.
• Q3 Adjusted EBITDA margin was 21.9% compared to 19.5% in the prior year period.
• Q3 diluted earnings per share (EPS) were $1.27, up 274% year-over-year; Adjusted diluted EPS were $1.35, up 24% year-over-year.
• Q3 net cash from operating activities was $198 million; Q3 Adjusted Free Cash Flow-unrestricted was $156 million.
• Net leverage ratio decreased to 2.47x as of September 30, 2026, from 2.99x in the prior year period.
• There were no borrowings on the revolving credit facility as of the reporting period.

Business Segments and Product Lines:

• Self-Service Banking revenue for the first nine months increased 3% year-over-year; Q3 revenue declined 2% due to lower hardware volumes, partially offset by growth in Software and Services.
• Self-Service Banking Adjusted EBITDA for the first nine months grew 8%; Q3 Adjusted EBITDA increased 7%, led by ATM as a Service (ATMaaS), Software, and productivity initiatives.
• Network revenue was flat for the first nine months; Q3 revenue declined 2% driven by lower demand in crypto transactions.
• Network Adjusted EBITDA for the first nine months grew 6%; Q3 Adjusted EBITDA decreased 2% year-over-year due to the timing of other initiatives.
• Recurring revenue streams accounted for 71% of Q3 total revenue.
• Annualized recurring revenue (ARR) for the Self-Service Banking segment was $1.742 billion as of September 30, 2026, compared to $1.712 billion in the prior year period.
• Revenue from ATMaaS arrangements in Q3 was $83 million, up from $67 million in the prior year period.

Risks and Challenges:

• Revenue challenges were attributed to the war in the Middle East and customers delaying buying decisions in anticipation of the combined companies' new solutions.
• Higher memory and fuel costs impacted the Self-Service Banking segment, though these were offset by productivity initiatives.
• Lower demand in crypto transactions negatively impacted Network segment revenue.
• The pending transaction with The Brink's Company involves risks related to regulatory approvals, integration planning, and potential business disruption.

Management Commentary and Tone:

• CEO Tim Oliver stated the company made meaningful progress on regulatory approvals and integration planning for the pending combination with The Brink's Company.
• Management expressed confidence that the merger will expand financial access and provide innovative solutions, confirming the rationale for the combination.
• CFO Andy Wamser highlighted disciplined execution, noting strong financial results with year-over-year Adjusted EBITDA and EPS growth of 10% and 24%, respectively.
• Management emphasized that service and software business paced growth and that productivity efforts pushed profit margins higher.

Other Key Points:

• Atleos is proceeding with the pending transaction with The Brink's Company, which is on track to close in early January 2027.
• Due to the pending transaction, Atleos will not host an earnings conference call or provide a financial outlook for the period.
• The company reported a reduction in net leverage and higher free cash flow, enabling further net leverage reduction ahead of the anticipated transaction.
• Total segment revenue for Q3 was $1.094 billion, while consolidated revenue was $1.099 billion.
• Gross margin for Q3 was 25.8%, compared to 24.2% in the prior year period.
• Income from operations for Q3 was $183 million, up from $110 million in the prior year period.