8-K
NCR Atleos Corp (NATL)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2025
NCR ATLEOS CORPORATION
(Exact name of registrant as specified in its charter)
Commission File Number 001-41728
| Maryland | 92-3588560 |
|---|---|
| (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. Employer<br>Identification No.) |
864 Spring Street NW
Atlanta, GA 30308
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (832) 308-4999
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.01 per share | NATL | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On August 6, 2025, NCR Atleos Corporation (the “Company”) issued a press release setting forth its second quarter 2025 financial results and certain other financial information. A copy of the press release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.
Item 7.01. Regulation FD Disclosure.
On August 7, 2025, the Company will hold its previously announced conference call to discuss its second quarter 2025 financial results. A copy of supplementary materials that will be referred to in the conference call, and which were posted to the Company's website, is attached hereto as Exhibit 99.2.
The information in this report (including Exhibits 99.1 and 99.2) is being furnished pursuant to Item 2.02 and Item 7.01 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits:
The following exhibits are attached with this current report on Form 8-K:
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release issued by the Company dated August 6, 2025 |
| 99.2 | Supplemental materials, dated August 6, 2025 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NCR Atleos Corporation | |
|---|---|
| By: | /s/ Andrew Wamser |
| Andrew Wamser | |
| Executive Vice President and Chief Financial Officer |
Date: August 6, 2025
Document
NEWS RELEASE
NCR Atleos Corporation Reports Second Quarter 2025 Results
ATLANTA, August 6, 2025 - NCR Atleos Corporation (NYSE: NATL) (“Atleos”) reported financial results today for the three months ended June 30, 2025. Second quarter results and recent highlights include:
•Second quarter profit and earnings met or exceeded high-end of previously provided guidance ranges, led by ATM outsourcing services growth initiatives and robust hardware demand
•Revenue of $1.10 billion with 70% from recurring revenue streams
•GAAP net income of $45 million; Adjusted EBITDA of $205 million
•GAAP diluted earnings per share of $0.60 grew 46% y/y; Non-GAAP diluted earnings per share of $0.93 grew 9% y/y
•Growth outlook and full year 2025 guidance reaffirmed
•$200 million share repurchase authorization announced, representing approximately 10% of current market capitalization
“NCR Atleos posted another strong quarter and carries strategic momentum into the second half of 2025. Once again, our team delivered revenue and profitability at the high-end of our expectations, all while driving industry-leading service levels, executing productivity initiatives and advancing strategic growth efforts. Robust demand for our self-service banking technology coupled with accelerating interest in ATM outsourcing resulted in a strong order book and backlog. We continue to believe that our full year guidance ranges are appropriate and remain confident that our simple strategy to generate more service revenue from every machine across our leading global installed base will create significant shareholder value,” said Tim Oliver, President and Chief Executive Officer.
“Atleos has made great progress since separating from our former parent six quarters ago as evidenced by solid financial results, a strengthening balance sheet and the continued successful execution of our services-led strategy. As we approach the leverage goals we identified at the time of separation, and in anticipation of steadily increasing free cash flow, we expect a redeployment strategy that balances returning cash to shareholders, accretive growth investments and further reduction in net leverage. To that end, I am pleased to announce that our Board of Directors has authorized a $200 million share repurchase program with a two year duration,” Mr. Oliver concluded.
Second Quarter 2025 Operating Results
•Revenue increased 2% year-over-year to $1.10 billion, including $773 million of recurring revenue, compared to $1.08 billion and $792 million, respectively, in the prior year period.
•Gross profit increased 1% year-over-year to $253 million on a GAAP basis, compared to $251 million in the prior year period. Adjusted gross profit (non-GAAP) was flat year-over-year at $275 million, compared to $274 million in the prior year period.
•Gross margin decreased 30 basis points year-over-year to 22.9% on a GAAP basis, compared to 23.2% in the prior year period. Adjusted gross margin (non-GAAP) decreased 50 basis points year-over-year to 24.9%, compared to 25.4% in the prior year period.
•Income from operations increased 11% year-over-year to $120 million on a GAAP basis, compared to $108 million in the prior year period. Adjusted income from operations (non-GAAP) increased 4% year-over-year to $159 million, compared to $153 million in the prior year period.
•Net income attributable to Atleos increased 50% year-over-year to $45 million, or 4% of revenue on a GAAP basis, compared to net income attributable to Atleos of $30 million, or 3% of revenue in the prior year period.
•Adjusted EBITDA increased 4% year-over-year to $205 million, compared to $197 million in the prior year period. Adjusted EBITDA margin expanded 40 basis points year-over-year to 18.6% from 18.2% in the prior year period.
•Diluted earnings per share increased 46% year-over-year to $0.60 on a GAAP basis, compared to $0.41 in the prior year period. Non-GAAP diluted earnings per share increased 9% year-over-year to $0.93, compared to $0.85 in the prior year period.
•Net cash used by operating activities was $23 million. Adjusted free cash flow-unrestricted was $15 million.
| NCR ATLEOS CORPORATION<br>REVENUE AND ADJUSTED EBITDA SUMMARY<br>(Unaudited)<br>(in millions) | | --- || | For the Periods Ended June 30 | | | | | | --- | --- | --- | --- | --- | --- | | | Three Months | | | | | | ($ in millions) | 2025 | | 2024 | | % Change | | Revenue by segment | | | | | | | Self-Service Banking | $ | 733 | $ | 672 | 9% | | Network | 320 | | 326 | | (2)% | | T&T | 41 | | 51 | | (20)% | | Total segment revenue | 1,094 | | 1,049 | | 4% | | Other (1) | 10 | | 31 | | (68)% | | Consolidated revenue | $ | 1,104 | $ | 1,080 | 2% | | Adjusted EBITDA by segment | | | | | | | Self-Service Banking | $ | 189 | $ | 157 | 20% | | Self-Service Banking Adjusted EBITDA margin % | 25.8% | | 23.4% | | | | Network | 86 | | 101 | | (15)% | | Network Adjusted EBITDA margin % | 26.9% | | 31.0% | | | | T&T | 9 | | 8 | | 13% | | T&T Adjusted EBITDA margin % | 22.0% | | 15.7% | | | | Other (1) | (1) | | 3 | | (133)% | | Corporate (2) | (78) | | (72) | | 8% | | Total Adjusted EBITDA | $ | 205 | $ | 197 | 4% | | Total Adjusted EBITDA margin % | 18.6% | | 18.2% | | |
(1)Other represents certain other immaterial business operations, including commerce-related operations in countries that Voyix exited that are aligned to Atleos, that do not represent a reportable segment. Other also includes revenues from commercial agreements with Voyix.
(2)Corporate includes income and expenses related to corporate functions that were not specifically attributable to an individual reportable segment.
Notes to Investors
Revision. During the second quarter of 2025, management identified immaterial misstatements in the previously issued financial statements of the Company. These misstatements resulted in an overstatement of previously reported pre-tax income during fiscal year 2023 of approximately $15 million, an understatement of pre-tax income of approximately $2 million during fiscal year 2024, and an overstatement of pre-tax income of approximately $2 million during the first quarter of fiscal year 2025, as well as an impact to the previously reported amounts in each of the interim periods within fiscal years 2023 and 2024. The Company evaluated the impact of these misstatements to the previously issued annual and interim financial statements and determined that they are not material to any period; however, the Company elected to revise the previously issued financial statements for impacted periods to improve the quality of financial reporting and due to the nature of the adjustments. The financial information included in this release reflects the revision.
Non-GAAP diluted EPS definition change. The Company recognizes foreign currency gains and losses as a result of remeasuring the local currency denominated monetary assets and liabilities for countries designated as hyper-inflationary economies. Beginning in the second quarter of 2025, we exclude from our Non-GAAP diluted EPS the gains and losses on remeasurement of foreign currency in hyper-inflationary countries. Management believes excluding these gains or losses is useful as it allows investors to evaluate our performance for different periods on a more comparable basis. Historical periods in this release have been recast to reflect the change in definition.
Full Year 2025 Guidance
| FY 2025 Targets | 2025 Initial Guidance | 2024 Base (3) |
|---|---|---|
| Core Revenue (excludes Voyix) | 3% to 6% growth constant currency<br><br>(est. FX impact -2%) | $4,175 million |
| Total Revenue | 1% to 3% growth constant currency<br><br>(est. FX impact -2%)<br><br>Assumes Voyix-related revenue down ~$100M | $4,317 million |
| Total Adjusted EBITDA (1) | 7% to 10% growth constant currency<br><br>(est. FX impact -1%) | $794 million |
| Non-GAAP Diluted EPS (2) | 21% to 27% growth | $3.22 |
| Adjusted free cash flow-unrestricted | $260 - $300 million | $242 million |
(1) Our Adjusted EBITDA calculation previously included certain amounts reported in Other income (expense), net. Beginning in 2025, we exclude total Other income (expense), net from our Adjusted EBITDA calculation, which in 2024 would have resulted in Adjusted EBITDA of $794 million, not including the impact of the revision to our 2024 financial statements discussed in the section entitled “Notes to Investors” above.
(2) Incorporates consensus average SOFR rates for the year in interest expense.
(3) The 2024 base does not reflect the impact of the revision to our 2024 financial statements or change in our definition of Non-GAAP diluted EPS discussed in the section entitled “Notes to Investors” above, as those changes do not impact the guided ranges we have previously communicated.
Core revenue refers to the results of our reportable segments (Self-Service Banking, Network and T&T). With respect to our Adjusted EBITDA, adjusted free cash flow-unrestricted and non-GAAP diluted earnings per share guidance, we do not provide a reconciliation of the respective GAAP measures because we are not able to predict with reasonable certainty the reconciling items that may affect the GAAP net income, GAAP cash flow from operating activities and GAAP diluted earnings per share without unreasonable effort. The reconciling items are primarily the future impact of special tax items, capital structure transactions, restructuring, pension mark-to-market transactions, acquisitions or divestitures, or other events. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures. Refer to the heading “Non-GAAP Financial Measures” for additional information regarding our use of non-GAAP financial measures.
2025 Second Quarter Earnings Conference Call
A conference call is scheduled for August 7, 2025 at 8:30 a.m. Eastern Time to discuss the second quarter 2025 results. Access to the conference call and accompanying slides, as well as a replay of the call, are available on Atleos’ web site at http://investor.ncratleos.com. Additionally, the live call can be accessed by dialing 800-753-0725 (United States/Canada Toll-free) or 786-460-7170 (International Toll) and entering the participant passcode 2958329. References to Atleos’ website and/or other social media sites or platforms in this release do not incorporate by reference the information on such websites, social media sites, or platforms, and Atleos disclaims any such incorporation by reference.
More information on Atleos’ second quarter earnings, including additional financial information and analysis, is available on Atleos’ Investor Relations website at https://investor.ncratleos.com/.
News Media Contact
Scott Sykes
NCR Atleos Corporation
scott.sykes@ncratleos.com
Investor Contact
Melanie Skijus
NCR Atleos Corporation
melanie.skijus@ncratleos.com
About Atleos
Atleos (NYSE: NATL) is a leader in expanding self-service financial access, with industry-leading ATM expertise and experience, unrivalled operational scale including the largest independently-owned ATM network, always-on global services and constant innovation. Atleos improves operational efficiency for financial institutions, drives footfall for retailers and enables digital-first financial self-service experiences for consumers. Atleos was ranked #12 in Newsweek’s prestigious 2025 Top 100 Global Most Loved Workplaces® list. Atleos is headquartered in Atlanta, Ga., with approximately 20,000 employees globally. For more information, visit www.ncratleos.com.
Cautionary Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements use words such as “expect,” “anticipate,” “outlook,” “intend,” “plan,” “confident,” “believe,” “will,” “should,” “would,” “potential,” “positioning,” “proposed,” “planned,” “objective,” “likely,” “could,” “may,” and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to Atleos’ plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in this release include, without limitation, statements regarding: our business and financial strategy; expectations regarding our cash flow generation and liquidity; our expectations of demand for our solutions and execution and the impact thereof on our financial results; our focus on advancing our strategic growth initiatives and transforming Atleos into a software-led as a service company with a higher mix of recurring revenue streams; and our expectations of Atleos’ ability to deliver increased value to customers and stockholders. Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of Atleos’ control. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including those factors relating to:
•Strategy and Technology: transforming our business model, development and introduction of new solutions; competition in the technology industry, integration of acquisitions and management of alliance activities; and our multinational operations;
•Business Operations: domestic and global economic and credit conditions; tariffs and other trade measures; risks and uncertainties from the payments-related business and industry; maintenance of a significant amount of vault cash involves risk of loss and is subject to cost fluctuations based on interest rate movements; retention and attraction of key employees; defects, errors, installation difficulties or development delays; failure of third-party suppliers; a major natural disaster or catastrophic event, including the impact of pandemics and geopolitical and macroeconomic challenges; environmental exposures from historical and ongoing manufacturing activities and climate change; and the impact of data protection, cybersecurity and data privacy including any related issues;
•Finance and Accounting: our level of indebtedness; the terms governing our indebtedness; incurrence of additional debt or similar liabilities or obligations; access or renewal of financing sources; our cash flow sufficiency to service our indebtedness or fund our share repurchase program; interest rate risks; the terms governing our trade receivables facility; any lowering or withdrawal of the ratings assigned to our debt securities by rating agencies; our pension liabilities; and the write down of the value of certain significant assets;
•Law and Compliance: allegations or claims by third parties that our products or services infringe on intellectual property rights of others, including claims against our customers and claims by our customers to defend and indemnify them with respect to such claims; changes to our tax rates and additional income tax liabilities; uncertainties regarding regulations, lawsuits and other related matters; changes to cryptocurrency regulations;
•Separation: the perceived reliability of Atleos’ financial statements if Atleos is unable to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act; the failure of NCR Voyix Corporation (“Voyix”) to perform under various transaction agreements; Atleos’ obligation to indemnify Voyix pursuant to the agreements entered into in connection with the spin-off (including with respect to material taxes) and the risk Voyix may not fulfill any obligations to indemnify Atleos under such agreements; that under applicable tax law, Atleos may be liable for certain tax liabilities of Voyix following the spin-off if Voyix were to fail to pay such taxes; that agreements binding on Atleos restrict it from taking certain actions after the distribution that could adversely impact the intended U.S. federal income tax treatment of the distribution and related transactions; potential liabilities arising out of state and federal fraudulent conveyance laws; the fact that Atleos may receive worse commercial terms from third-parties for services it previously received from Voyix; and that after the spin-off, certain of Atleos’ executive officers and directors may have actual or potential conflicts of interest because of their previous positions at Voyix; and
•Our Common Stock: Atleos’ stock price may fluctuate significantly; substantial sales in the public market may cause the price of Atleos’ common stock to decline; dilution of ownership percentages; certain provisions in
Atleos’ governing documents may prevent or delay an acquisition; changes in, or the elimination of, our share repurchase program could affect our stock price and increase its volatility; the exclusive forum provision in Atleos’ bylaws could limit a stockholder’s ability to bring a claim against Atleos; and actions or proposals from stockholders that do not align with our business strategies or the interests of our other stockholders.
Additional information concerning these and other factors can be found in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements.
| NCR ATLEOS CORPORATION<br>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<br>(Unaudited) | | --- || | For the Periods Ended June 30 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Three Months | | | | | | Six Months | | | | | | | ($ in millions, except per share amounts) | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | Revenue | | | | | | | | | | | | | | Product revenue | $ | 266 | | $ | 247 | | $ | 455 | | $ | 487 | | | Service revenue | 838 | | | 833 | | | 1,628 | | | 1,642 | | | | Total revenue | 1,104 | | | 1,080 | | | 2,083 | | | 2,129 | | | | Cost of products | 217 | | | 210 | | | 377 | | | 422 | | | | Cost of services | 634 | | | 619 | | | 1,220 | | | 1,235 | | | | Total gross profit | 253 | | | 251 | | | 486 | | | 472 | | | | % of Revenue | 22.9 | | % | 23.2 | | % | 23.3 | | % | 22.2 | | % | | Selling, general and administrative expenses | 116 | | | 132 | | | 238 | | | 264 | | | | Research and development expenses | 17 | | | 11 | | | 34 | | | 28 | | | | Income from operations | 120 | | | 108 | | | 214 | | | 180 | | | | % of Revenue | 10.9 | | % | 10.0 | | % | 10.3 | | % | 8.5 | | % | | Interest expense | (69) | | | (79) | | | (136) | | | (158) | | | | Other income (expense), net | 12 | | | 4 | | | 9 | | | 8 | | | | Total interest and other expense, net | (57) | | | (75) | | | (127) | | | (150) | | | | Income before income taxes | 63 | | | 33 | | | 87 | | | 30 | | | | % of Revenue | 5.7 | | % | 3.1 | | % | 4.2 | | % | 1.4 | | % | | Income tax expense | 19 | | | 4 | | | 29 | | | 8 | | | | Net income | 44 | | | 29 | | | 58 | | | 22 | | | | Net loss attributable to noncontrolling interests | (1) | | | (1) | | | (2) | | | (1) | | | | Net income attributable to Atleos | $ | 45 | | $ | 30 | | $ | 60 | | $ | 23 | | | Net income per share attributable to Atleos common stockholders | | | | | | | | | | | | | | Basic | $ | 0.61 | | $ | 0.42 | | $ | 0.82 | | $ | 0.32 | | | Diluted | $ | 0.60 | | $ | 0.41 | | $ | 0.80 | | $ | 0.31 | | | Weighted average common shares outstanding | | | | | | | | | | | | | | Basic | 73.5 | | | 72.2 | | | 73.3 | | | 71.9 | | | | Diluted | 74.9 | | | 73.7 | | | 75.1 | | | 73.5 | | | | CONDENSED CONSOLIDATED BALANCE SHEETS<br>(Unaudited) | | --- | | ($ in millions, except per share amounts) | June 30, 2025 | | December 31, 2024 | | | --- | --- | --- | --- | --- | | Assets | | | | | | Current assets | | | | | | Cash and cash equivalents | $ | 357 | $ | 419 | | Accounts receivable, net of allowances of $15 and $15 as of June 30, 2025 and December 31, 2024, respectively | 669 | | 591 | | | Inventories | 400 | | 307 | | | Restricted cash | 279 | | 210 | | | Other current assets | 271 | | 231 | | | Total current assets | 1,976 | | 1,758 | | | Property, plant and equipment, net | 480 | | 474 | | | Goodwill | 1,953 | | 1,950 | | | Intangibles, net | 534 | | 550 | | | Operating lease right of use assets | 153 | | 144 | | | Prepaid pension cost | 261 | | 227 | | | Deferred income tax assets | 305 | | 285 | | | Other assets | 152 | | 156 | | | Total assets | $ | 5,814 | $ | 5,544 | | Liabilities and stockholders’ equity | | | | | | Current liabilities | | | | | | Short-term borrowings | $ | 81 | $ | 81 | | Accounts payable | 593 | | 562 | | | Payroll and benefits liabilities | 119 | | 145 | | | Contract liabilities | 395 | | 316 | | | Settlement liabilities | 273 | | 171 | | | Other current liabilities | 426 | | 432 | | | Total current liabilities | 1,887 | | 1,707 | | | Long-term borrowings | 2,816 | | 2,855 | | | Pension and indemnity plan liabilities | 342 | | 343 | | | Postretirement and postemployment benefits liabilities | 83 | | 81 | | | Income tax accruals | 34 | | 37 | | | Operating lease liabilities | 120 | | 110 | | | Deferred income tax liabilities | 50 | | 40 | | | Other liabilities | 130 | | 120 | | | Total liabilities | $ | 5,462 | $ | 5,293 | | Stockholders’ equity | | | | | | Atleos stockholders’ equity: | | | | | | Preferred stock: par value $0.01 per share, 50.0 shares authorized, no shares issued | — | | — | | | Common stock: par value $0.01 per share, 350.0 shares authorized, 73.5 and 72.7 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 1 | | 1 | | | Paid-in capital | 55 | | 47 | | | Retained earnings | 276 | | 215 | | | Accumulated other comprehensive income (loss) | 18 | | (16) | | | Total Atleos stockholders’ equity | 350 | | 247 | | | Noncontrolling interests in subsidiaries | 2 | | 4 | | | Total stockholders’ equity | 352 | | 251 | | | Total liabilities and stockholders’ equity | $ | 5,814 | $ | 5,544 | | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<br>(Unaudited) | | --- || | For the Periods Ended June 30 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Three Months | | | | Six Months | | | | | ($ in millions) | 2025 | | 2024 | | 2025 | | 2024 | | | Operating activities | | | | | | | | | | Net income | $ | 44 | $ | 29 | $ | 58 | $ | 22 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | Depreciation and amortization expense | 72 | | 71 | | 141 | | 144 | | | Stock-based compensation expense | 8 | | 9 | | 17 | | 19 | | | Deferred income taxes | 2 | | (12) | | 3 | | (12) | | | (Gain) loss on divestiture and disposal of assets, net | (24) | | 2 | | (27) | | 4 | | | Bargain purchase gain from acquisition | — | | (5) | | — | | (5) | | | Loss (earnings) from equity investments | 1 | | — | | 1 | | — | | | Changes in assets and liabilities: | | | | | | | | | | Receivables | (2) | | 25 | | (64) | | (11) | | | Inventories | (47) | | (19) | | (107) | | (49) | | | Current payables and accrued expenses | 38 | | 95 | | 1 | | 100 | | | Contract liabilities | (15) | | (21) | | 69 | | (20) | | | Employee benefit plans | (9) | | (4) | | (14) | | (20) | | | Settlement assets and liabilities, net | 2 | | 10 | | 95 | | 9 | | | Other assets and liabilities | (93) | | (171) | | (73) | | (24) | | | Net cash provided by (used in) operating activities | $ | (23) | $ | 9 | $ | 100 | $ | 157 | | Investing activities | | | | | | | | | | Capital expenditures | $ | (21) | $ | (23) | $ | (50) | $ | (47) | | Additions to capitalized software | (14) | | (9) | | (26) | | (15) | | | Purchase of intellectual property | — | | (8) | | — | | (8) | | | Proceeds from sale of property, plant, and equipment | 24 | | — | | 24 | | — | | | Proceeds from divestiture | 11 | | — | | 11 | | — | | | Sale (purchase) of investments, net | — | | — | | 4 | | — | | | Other investing activities, net | — | | — | | — | | (1) | | | Net cash used in investing activities | $ | — | $ | (40) | $ | (37) | $ | (71) | | Financing activities | | | | | | | | | | Payments on term credit facilities | $ | (20) | $ | (18) | $ | (59) | $ | (36) | | Borrowings on revolving credit facilities | 290 | | 459 | | 440 | | 533 | | | Payments on revolving credit facilities | (290) | | (376) | | (425) | | (512) | | | Payments on other financing arrangements | | | | | | | | | | Proceeds from employee stock plans | 7 | | 1 | | 7 | | 1 | | | Tax withholding payments on behalf of employees | (1) | | (7) | | (8) | | (13) | | | Payments on acquisition holdback | — | | — | | (16) | | — | | | Principal payments for finance lease obligations | (1) | | (1) | | (2) | | (1) | | | Other financing activities | (2) | | (1) | | (3) | | (2) | | | Net cash provided by (used in) financing activities | $ | (17) | $ | 57 | $ | (66) | $ | (30) | | Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 8 | | (3) | | 12 | | (12) | | | Increase (decrease) in cash, cash equivalents, and restricted cash | $ | (32) | $ | 23 | $ | 9 | $ | 44 | | Cash, cash equivalents, and restricted cash at beginning of period | 682 | | 607 | | 641 | | 586 | | | Cash, cash equivalents, and restricted cash at end of period | $ | 650 | $ | 630 | $ | 650 | $ | 630 |
Non-GAAP Financial Measures
Non-GAAP Financial Measures. While Atleos reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, in this release Atleos also uses the non-GAAP measures listed and described below. Atleos’ definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. Atleos believes these measures are useful for investors because they provide a more complete understanding of Atleos’ underlying operational performance, as well as consistency and comparability with Atleos’ past reports of financial results.
Adjusted Gross Profit (Non-GAAP), Adjusted Income from Operations (Non-GAAP), and Diluted Earnings per Share (Non-GAAP) are calculated as GAAP gross profit, income from operations, and diluted earnings per share, respectively, excluding, as applicable, acquisition-related costs; pension mark-to-market adjustments and other one-time pension-related costs; separation-related costs; amortization of acquisition-related intangibles; stock-based compensation expense; transformation and restructuring charges (which includes integration, severance, divestiture and other exit and disposal costs); Voyix legal and environmental indemnification expense; foreign currency remeasurement gain/loss of hyper-inflationary countries; and other non-recurring or unusual items. Management uses these non-GAAP measures to compare performance consistently over various periods.
Adjusted Gross Margin (Non-GAAP) is calculated based on Adjusted Gross Profit (Non-GAAP) as a percentage of total revenue. Management uses this non-GAAP measure to compare performance consistently over various periods.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) is calculated as GAAP Net income (loss) attributable to Atleos plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus acquisition-related costs; plus pension mark-to-market adjustments and other one-time pension-related costs; plus separation-related costs; plus transformation and restructuring charges (which includes integration, severance, divestiture and other exit and disposal costs); plus stock-based compensation expense; plus Voyix legal and environmental indemnification expense; plus other amounts included in Other income (expense), net. Management uses this non-GAAP measure to compare performance consistently over various periods.
Adjusted EBITDA margin is calculated based on Adjusted EBITDA as a percentage of total revenue. Adjusted EBITDA margin by segment is calculated based on segment Adjusted EBITDA divided by the related segment component of revenue. Management uses this non-GAAP measure to compare performance consistently over various periods.
Adjusted free cash flow-unrestricted is calculated as net cash provided by operating activities less capital expenditures, less additions to capitalized software, plus/minus the change in restricted cash settlement activity, plus/minus net reductions or reinvestment in the trade receivables facility due to fluctuations in the outstanding balance of receivables sold, plus proceeds from sale-leaseback transactions of owned ATMs used in ATM as a Service and certain Network arrangements, plus pension contributions and settlements, and plus legal and environmental indemnification payments made to Voyix. Restricted cash settlement activity represents the net change in amounts collected on behalf of, but not yet remitted to, certain of the Company’s merchant customers or third-party service providers that are pledged for a particular use or restricted to support these obligations. These amounts can fluctuate significantly period to period based on the number of days for which settlement to the merchant has not yet occurred or day of the week on which a reporting period ends. We believe Adjusted free cash flow-unrestricted information is useful for investors because it indicates the amount of cash available after these adjustments for, among other things, investments in Atleos’ existing businesses, strategic acquisitions, and repayment of debt obligations. Adjusted free cash flow-unrestricted does not represent the residual cash flow available, since there may be other non-discretionary expenditures that are not deducted from the measure.
Constant Currency excludes the effects of foreign currency translation by translating prior period results at current period monthly average exchange rates. Due to the overall variability of foreign exchange rates from period to period, management uses constant currency measures to compare performance consistently over various periods.
Use of Certain Terms
Recurring revenue. All revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, processing revenue, interchange and network revenue, Bitcoin-related revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights.
Annualized Recurring Revenue (“ARR”) is calculated as recurring revenue, excluding software licenses sold as a subscription, for the last three months times four, plus the rolling four quarters for term-based software license arrangements that include customer termination rights. Management believes this metric may be useful to investors in evaluating the Company’s achievement of strategic goals related to the conversion of the self-service banking business to recurring revenue streams over time. ARR is an operating metric and does not necessarily reflect the pattern of revenue recognition in accordance with GAAP and should not be considered a substitute for GAAP revenue. ARR does not have a uniform definition and, therefore, Atleos’ definitions may differ from other companies’ definitions of this measure.
Last twelve months average revenue per unit (“LTM ARPU”) is calculated, for the Network segment, as total segment revenue for the previous twelve months divided by the average Network Managed Units for the previous twelve months. Atleos believes this metric may be useful to investors in evaluating the Company’s achievement of strategic goals related to the improved monetization of our ATM fleet over a specified period, excluding the impact of seasonality. LTM ARPU is an operating metric and does not represent revenue generated solely by our Network Managed Units, as total Network segment revenue includes revenue generated from other sources besides the Network Managed Units. LTM ARPU does not have a uniform definition and, therefore, Atleos’ definitions may differ from other companies’ definitions of this measure.
Network Managed Units is all transacting ATMs as of period end, whether Company-owned or Merchant-owned, other than those for which we only provide third party processing services and those under legacy managed services arrangements. This metric is used in the calculation of Network segment LTM ARPU.
Other performance metrics
| Three months ended June 30, | ||||||
|---|---|---|---|---|---|---|
| ($ in millions, unless otherwise noted) | 2025 | 2024 | ||||
| Self-Service Banking | ||||||
| Annualized recurring revenue(1) | $ | 1,685 | $ | 1,664 | ||
| Recurring revenue(1) as a % of SSB revenue | 57 | % | 63 | % | ||
| Revenue from ATMaaS arrangements | $ | 62 | $ | 47 | ||
| Network | ||||||
| LTM ARPU(1) (in thousands) | $ | 16.2 | $ | 15.8 | ||
| Network Managed Units(1) (in thousands) | 77.0 | 80.8 |
(1) Refer to our definitions of Annualized recurring revenue, Recurring revenue, LTM ARPU and Network Managed Units in the section entitled “ Use of Certain Terms” above.
The following table presents the recurring revenue and all other products and services revenue that is recognized at a point in time:
| ( in millions) | Three months ended June 30, | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | |||||||
| Recurring revenue | $ | 773 | $ | 792 | |||
| All other products and services | 331 | 288 | |||||
| Total revenue | $ | 1,104 | $ | 1,080 | |||
| Recurring revenue as a percent of revenue | 70 | % | 73 | % |
All values are in US Dollars.
Reconciliation of Net Income (Loss) Attributable to Atleos (GAAP) to Adjusted Net Income Attributable to Atleos (Non-GAAP) and Diluted Earnings Per Share (Non-GAAP)
| Three months ended June 30, 2025 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions, except per share amounts) | Gross profit | Gross margin | Income from operations | Net income (loss) attributable to Atleos | Weighted average dilutive shares outstanding | Diluted earnings (loss) per share | |||||
| GAAP Results | $ | 253 | 22.9 | % | $ | 120 | $ | 45 | 74.9 | $ | 0.60 |
| Plus: | |||||||||||
| Transformation and restructuring | — | — | % | — | (9) | (0.12) | |||||
| Stock-based compensation expense | 2 | 0.2 | % | 8 | 7 | 0.09 | |||||
| Acquisition-related amortization of intangibles | 20 | 1.8 | % | 24 | 18 | 0.25 | |||||
| Acquisition-related costs | — | — | % | 1 | 1 | 0.01 | |||||
| Separation costs | — | — | % | 6 | 6 | 0.08 | |||||
| Voyix environmental indemnification expense | — | — | % | — | 1 | 0.01 | |||||
| Hyperinflationary foreign currency adjustment (1) | — | — | % | — | 1 | 0.01 | |||||
| Non-GAAP Adjusted Results | $ | 275 | 24.9 | % | $ | 159 | $ | 70 | 74.9 | $ | 0.93 |
(1)Beginning in the second quarter of 2025, we exclude from our Non-GAAP diluted EPS the gain/loss on remeasurement of foreign currency in hyper-inflationary countries. All periods presented have been recast to reflect the new definition.
Reconciliation of Net Income Attributable to Atleos (GAAP) to Adjusted Net Income Attributable to Atleos (Non-GAAP) and Diluted Earnings Per Share (Non-GAAP)
| Three months ended June 30, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions, except per share amounts) | Gross profit | Gross profit margin | Income from operations | Net income (loss) attributable to Atleos | Weighted average shares outstanding | Diluted earnings (loss) per share | |||||
| GAAP Results | $ | 251 | 23.2 | % | $ | 108 | $ | 30 | 73.7 | $ | 0.41 |
| Plus: | |||||||||||
| Transformation and restructuring | 3 | 0.3 | % | 6 | 5 | 0.07 | |||||
| Stock-based compensation expense | 1 | 0.1 | % | 9 | 8 | 0.11 | |||||
| Acquisition-related amortization of intangibles | 19 | 1.8 | % | 23 | 17 | 0.23 | |||||
| Acquisition-related costs | — | — | % | 1 | (3) | (0.04) | |||||
| Separation costs | — | — | % | 6 | 4 | 0.05 | |||||
| Hyperinflationary foreign currency adjustment (1) | — | — | % | — | 2 | 0.02 | |||||
| Non-GAAP Adjusted Results | $ | 274 | 25.4 | % | $ | 153 | $ | 63 | 73.7 | $ | 0.85 |
(1) Beginning in the second quarter of 2025, we exclude from our Non-GAAP diluted EPS the gain/loss on remeasurement of foreign currency in hyper-inflationary countries. All periods presented have been recast to reflect the new definition.
Reconciliation of Net Income (Loss) Attributable to Atleos (GAAP) to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (Non-GAAP)
| ($ in millions) | Q2 2025 | % of Revenue | Q2 2024 | % of Revenue | ||||
|---|---|---|---|---|---|---|---|---|
| Net income attributable to Atleos (GAAP) | $ | 45 | 4.1 | % | $ | 30 | 2.8 | % |
| Interest expense | 69 | 6.3 | % | 79 | 7.2 | % | ||
| Interest income | (1) | (0.1) | % | (2) | (0.2) | % | ||
| Income tax expense | 19 | 1.7 | % | 4 | 0.4 | % | ||
| Depreciation and amortization expense | 45 | 4.1 | % | 43 | 4.0 | % | ||
| Acquisition-related amortization of intangibles | 24 | 2.2 | % | 23 | 2.1 | % | ||
| Stock-based compensation expense | 8 | 0.7 | % | 9 | 0.8 | % | ||
| Separation costs | 6 | 0.5 | % | 6 | 0.6 | % | ||
| Acquisition-related costs | 1 | 0.1 | % | (4) | (0.4) | % | ||
| Transformation and restructuring | (11) | (1.0) | % | 6 | 0.6 | % | ||
| Voyix environmental indemnification expense | 1 | 0.1 | % | — | — | % | ||
| Other (income) expense items, net (1) | (1) | (0.1) | % | 3 | 0.3 | % | ||
| Adjusted EBITDA (Non-GAAP) | $ | 205 | 18.6 | % | $ | 197 | 18.2 | % |
(1) Includes certain income and expense items reported within Other income (expense), net on the Condensed Consolidated Statements of Operations, such as bank fees, the components of pension, postemployment and postretirement expense other than service cost, and the impact of foreign currency fluctuations. Prior to 2025, our calculations of Adjusted EBITDA did not exclude the other (income) expense line item. All periods presented have been recast to reflect the new definition. Additional amounts reported in Other income (expense), net are separately captured in this reconciliation. Therefore, Other (income) expense items, net shown here will not agree to total Other income (expense), net on the Condensed Consolidated Statements of Operations.
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Adjusted Free Cash Flow-Unrestricted (Non-GAAP)
| ($ in millions) | Q2 2025 | Q2 2024 | ||
|---|---|---|---|---|
| Net cash (used in) provided by operating activities | $ | (23) | $ | 9 |
| Capital expenditures | (21) | (23) | ||
| Additions to capitalized software | (14) | (9) | ||
| Change in restricted cash settlement activity | 37 | 7 | ||
| Pension contributions | 6 | — | ||
| Voyix environmental indemnification payments | 6 | — | ||
| Proceeds from ATM sale-leaseback transactions | 24 | — | ||
| Transfer of temporary funds back to Voyix(1) | — | 32 | ||
| Adjusted free cash flow-unrestricted | $ | 15 | $ | 16 |
(1) As of March 31, 2024, cash provided by operating activities included approximately $32 million of cash related to a temporary transfer of funds from Voyix in March 2024, which was remitted back to Voyix in April 2024.
11
exhibit992-q22025callsli
1 Second Quarter 2025 Earnings Call Tim Oliver, President & Chief Executive Officer Andy Wamser, Chief Financial Officer Stuart Mackinnon, Chief Operating Officer Thursday, August 7th, 2025
2 This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements use words such as “estimate,” “expect,” “target,” “anticipate,” “outlook,” “intend,” “plan,” “confident,” “believe,” “will,” “would,” “potential,” “positioned,” “may,” and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to NCR Atleos Corporation’s (“NCR Atleos,” “Atleos” or the “Company”) plans, targets, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in these materials include, without limitation, statements regarding the future commercial or financial performance of the Company; the expected financial performance of the Company for 2025; our expected areas of focus and strategy to drive growth and profitability and create long-term stockholder value, including key performance indicator targets and expectations for 2025; the Company's focus on advancing strategic growth initiatives and transforming the Company into a software-led ATM as a service company with a higher mix of recurring revenue streams; our expected free cash flow for 2025; our expectations to begin returning cash to stockholders; and our expectations of NCR Atleos' ability to deliver increased value to customers and stockholders. Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of the Company's control, including the failure of NCR Atleos to achieve some or all of the strategic benefits or opportunities expected from the spin-off; NCR Atleos' obligation to indemnify NCR Corporation (“Voyix” or “NCR Voyix”) pursuant to the agreements entered into connection with the spin-off (including with respect to material taxes) and the risk NCR Voyix may not fulfill any obligations to indemnify NCR Atleos under such agreements; that under applicable tax law, NCR Atleos may be liable for certain tax liabilities of NCR Voyix following the spin-off if NCR Voyix were to fail to pay such taxes; that agreements binding on NCR Atleos restrict it from taking certain actions after the distribution that could adversely impact the intended U.S. federal income tax treatment of the distribution and related transactions, potential liabilities arising out of state and federal fraudulent conveyance laws; the fact that NCR Atleos may receive worse commercial terms from third-parties for services it presently receives from NCR Voyix; that after the spin-off, certain of NCR Atleos' executive officers and directors may have actual or potential conflicts of interest because of their previous positions at NCR Voyix; our ability to retain key employees; our ability to protect our systems and data from cybersecurity threats or other technological risks; extensive competition in our markets; risks related to our level of indebtedness; and risks related to evolving global laws and regulations relating to data privacy, data protection and information security. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements. As you read and consider this presentation, you should understand that these statements are not guarantees of performance or results. Although the Company believes that assumptions underlying the forward-looking statements contained herein are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, any of these statements included herein may prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. Additional information concerning these and other factors identified in “Risk Factors,” “Management Discussion and Analysis of Financial Condition and Results of Operations,” and “Business,” in the Company’s most recent report on Form 10-K, quarterly reports on Form 10-Q and other filings with the U.S. Securities and Exchange Commission (“SEC”) are available at https://www.sec.gov. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements. FORWARD-LOOKING STATEMENTS
3 NON-GAAP MEASURES. While Atleos reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, comments made during this conference call and in these materials will include or make reference to certain “non-GAAP” measures, including, but not limited to: amounts in constant currency or CC, adjusted gross margin rate; diluted earnings per share (non-GAAP); adjusted free cash flow- unrestricted; adjusted gross margin (non-GAAP); gross profit; net debt; core revenues; adjusted EBITDA; core adjusted EBITDA; adjusted EBITDA margin; and the ratio of net debt to adjusted EBITDA or net leverage ratio. These measures are included to provide additional useful information regarding Atleos’ financial results and are not a substitute for their comparable GAAP measures. Explanations of these non-GAAP measures, and reconciliations of these non-GAAP measures to their directly comparable GAAP measures are included in the accompanying “Supplementary Materials” and are available on the Investor Relations page of Atleos’ website at www.ncratleos.com. Descriptions of many of these non- GAAP measures are also included in Atleos’ SEC reports. REVISION. During the second quarter of 2025, management identified immaterial misstatements in the previously issued financial statements of the Company. The Company evaluated the impact of these misstatements to the previously issued annual and interim financial statements and determined that they are not material to any period; however, the Company elected to revise the previously issued financial statements for impacted periods to improve the quality of financial reporting and due to the nature of the adjustments. The financial information included in this presentation reflects the revision. TRADEMARKS. All trademarks, service marks and trade names appearing in this presentation are, to our knowledge, the property of their respective owners. We do not intend our use or display of other companies’ trademarks, service marks, copyrights or trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies. USE OF CERTAIN TERMS. As used in these materials: (i) the term "recurring revenue" includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, processing revenue, interchange and network revenue, Bitcoin-related revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights. (ii) the term "annualized recurring revenue" or "ARR" is recurring revenue, excluding software license sold as a subscription, for the last three months times four, plus the rolling four quarters for term-based software license arrangements that include customer termination rights. (iii) the term "LTM" means last twelve months. (iv) the term "ARPU" means average revenue per unit. (v) the term "ATMaaS" means ATM as a Service, our turnkey, end-to-end ATM platform solution. (iv) the terms “Core Revenue“ and “Core Adjusted EBITDA” are defined in the accompanying “Supplementary Materials.” These presentation materials and the associated remarks made during this conference call are integrally related and are intended to be presented and understood together. Websites referenced in this presentation are not incorporated by reference into the presentation. NOTES TO INVESTORS
4 Business Update Tim Oliver President and Chief Executive Officer
Second Quarter 2025 Highlights R E A F F I R M I N G F Y 2 0 2 5 O U T L O O K S T R A T E G Y H I G H L I G H T S Continuous improvement drove incremental savings Improved production and supply chain efficiency Increased monetization of our global installed base ATM as a Service revenue increased 32% y/y, Backlog up 105% y/y 5 Grow Efficiently: Prioritize growth initiatives with high-potential returns and strategic value Prioritize Service: Focus on best- in-class performance and availability Embrace Simplicity: Invest in people, systems and processes to become nimbler and easier for customers to conduct business with F I N A N C I A L R E S U L T S 4% Core Revenue Growth 18.6% Adjusted EBITDA Margin $0.93 Adjusted Diluted EPS +9% y/y Growth ATM service levels hit another new high Customer satisfaction scores improve 160 bps YTD
Self-Service Banking Segment 2 6 • Ended Q2 with a robust ATMaaS backlog +105% y/y • Growth in high return and asset light outsourcing services deals • Improved ATMaaS onboarding process contributed to 3x increase in activations vs. Q1 • Revenue +9% y/y • Adj. EBITDA +20% y/y • ~240 bps of margin expansion across service, software and hardware Financial Results Grow Efficiently Prioritize Service Embrace Simplicity • Launched our AI-driven diagnostics and service tools for service techs • Continuous improvement initiatives drove incremental productivity savings and improved sales efficiency • Reached another new high for service levels across key KPIs • Customer health scores improved 160 bps YTD • Launched cloud-based auto-scheduling and routing solution in North America
Network Segment 2 7 Grow Efficiently Embrace SimplicityPrioritize Service Financial Results • Revenue +7% q/q • ARPU +3% y/y and reached another new high • Solid Adj. EBITDA margin of ~27%, after absorbing higher vault cash costs • Strengthened ATM branding offerings and value proposition to bank partners • Expanded cash deposit enabled locations • Improved uptimes across our owned and operated portfolio • Cash deposit transactions +170% y/y for 1H • New partnerships expanded presence in digital payments • Activated first phase of ~1,000 locations for partnership with FCTI • Enabled rapid utility network expansion • Activated recycling-capable ATMs which will reduce cash inventory requirements/costs • Enhanced self-service portal allowing partners to activate features and customize screen flows independently
8 2 Leveraging world-class Atleos infrastructure and unmatched scale #1 Largest Independent ATM Network500K+ Leading Install Base of Self Service ATMs ARPU & Profit Cross-sell Network Solutions Add new banking partners to Network Enhance retail partners in the Network Add new transaction sets Expand to new markets Continuous improvement productivity Lead with innovative devices & solutions Drive adoption of incremental outsourcing #1 ATMaaS and Managed Services Provider Industry Leading Self-Service Banking Solutions Platform
1 2 3 4 5 Investment Thesis 2 Building a track record of transparency and consistent financial performance; separation transaction now behind us Leading global installed base and industry-best service levels Outsourcing of physical transactions and cash management by banks and retailers accelerating Predictable free cash flow, steadily improving balance sheet, and a plan to begin returning cash to stockholders 9 World’s most comprehensive and scalable solutions offering
10 Financial Review Andy Wamser Chief Financial Officer
11 Results at High-end or Exceed Expectations $ in millions, except per share amounts 70% +4% y/y Core Consolidated Adjusted EBITDA & Margin Non-GAAP Diluted EPS Consolidated Revenue/Recurring +4% y/y +6% y/y Core +9% y/y Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $229 $209 $205 $172 $197 19.4%18.2% 17.6%20.7% Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $0.90 $1.19 $0.85 $0.64 $0.93 • Q2 ’25 Adjusted EBITDA of $205 million was at the high end of our guidance range • +19% q/q Adjusted EBITDA growth 18.6% • Q2'25 EPS was above the high- end of our guidance range • +9% y/y Adjusted EPS growth • Q2 ‘25 Core Revenue of $1,094 grew 4% y/y, in line with our outlook • Q2 ‘25 Core Recurring Revenue mix of 70%; ~72% excluding hardware-related growth Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Recurring Core Non-Recur Core Non-Core $1,049 $1,055 $965 $1,081 74%74% 72% 76% $1,080 $1,078 $1,108 $979 $1,094 $1,104 70% Margin
12 Key Financial Metrics $ in millions Revenue Recurring Revenue Mix % ARR Key Performance Metrics Adjusted EBITDA & Margin Self-Service Banking +9% y/y +20% y/y Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $672 $677 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $167$157 $153 $181 24.7%23.4% 25.8%24.5%25.2% 40% 50% 60% 70% Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 • Revenue growth of 9% was at the high-end of our outlook • Recurring revenue mix averaged 61% for 1H; decline in Q2 driven by significant step-up in hardware $1,200 $1,400 $1,600 $1,800 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $718 $624 $733 $189 63% 57% $1,664 $1,685 • Strong EBITDA growth y/y with 240 bps of margin expansion • ARR increased y/y and q/q Margin
13 Financial Metrics ARR (in millions) LTM ARPU (in thousands) Revenue Gross Profit(1) Key Performance Metrics $ in millions, except ARPU ATMaaS +32% y/y +72% y/y $140 $200 $260 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $4.0 $8.0 $12.0 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $52 $49$47 $57 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $16.1$14.4 $17.4 $188 $249 $8.8 $8.3 • Revenue grew 32% y/y on strong increase in unique customers and high ARPU geographies • ARR on pace to meet our goal for the year • Gross Profit increased significantly, 72% y/y • ARPU reflects continued growth in asset light deals $62 $24.8 $21.4 (1) Gross Profit includes management’s estimate of certain cost allocations.
14 Key Financial Metrics Key Performance Metrics $ in millions, except ARPU and Network Managed Units Revenue Adjusted EBITDA LTM ARPU (in thousands) Network Managed Units (in thousands) Network -2% y/y -15% y/y Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $326 $332 $320 $298 $317 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $102$101 $86$86 $114 $14.5 $15.5 $16.5 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 55 70 85 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 $15.8 $16.2 81 77 30.7%31.0% 26.9%28.9%36.0% Margin • Revenue increased 7% q/q; consistent with typical seasonality • LTM ARPU increased 3% y/y and reached another new high • Adjusted EBITDA and margin decreases were primarily driven by anticipated higher vault cash costs
15 Services & Software and Hardware Fuels Topline & Profit Growth $ in millions (1) Refer to definitions in the supplementary section of the presentation. Adjusted gross profit (non-GAAP) for the product lines include management’s estimates of certain cost allocations. Supplementary product information provided on this slide is for modeling purposes only and is not considered by Company management in assessing segment performance. Revenue Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Services & Software $539 $542 $557 $523 $556 Transactional (Network segment) 319 324 309 292 312 Hardware 191 189 215 150 226 Total Core Revenues $1,049 $1,055 $1,081 $965 $1,094 Other – Voyix 31 23 27 14 10 Total Atleos Revenue $1,080 $1,078 $1,108 $979 $1,104 Gross Profit (Non-GAAP)(1) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Services & Software $168 $184 $198 $175 $187 Transactional (Network Segment) 95 98 107 82 75 Hardware 37 30 44 26 46 Corporate unallocated (30) (31) (32) (30) (33) Total Core Gross Profit (Non-GAAP) $270 $281 $317 $253 $275 Other – Voyix 4 3 3 2 - Total Atleos Gross Profit (Non-GAAP) $274 $284 $320 $255 $275
16 Strong Financial Position $ in millions (1) Reflects management’s assessment for Q2 2025 capital expenditures. (2) Cash and cash equivalents as presented in our Condensed Consolidated Balance Sheet. (3) Refer to the definitions in the supplementary section of the presentation. (4) Refer to the supplementary section for a reconciliation of Net Income to Adjusted EBITDA and Cash from Operating activities to Adjusted Free Cash Flow-Unrestricted. Balance Sheet & Liquidity June 30, 2025 Liquidity $691 Revolving Credit Availability $334 Cash (unrestricted)(2) $357 Total Debt $2,897 Net Debt(3) $2,540 Net Leverage Ratio(3) 3.1X Free Cash Flow Q2 2025 Adjusted EBITDA(4) $205 Capital Expenditures ($35) Inventory Capitalized ($11) Adjusted Capital Expenditures ($46) Maintenance capital expenditures(1) ($11) Growth capital expenditures(1) ($23) ATMaaS capital expenditures(1) ($12) Cash paid for Taxes ($49) Cash paid for Interest ($99) Change in Working Capital $4 Adj. Free Cash Flow – Unrestricted(4) $15
17 FY 2025 Outlook Reaffirmed $ in millions, except percentages and per share amounts FY 2025 Targets 2025 Initial Guidance 2024 Base(3) Core Revenue (excludes Voyix) 3% to 6% growth constant currency (est. FX impact -2%) $4,175 Total Revenue 1% to 3% growth constant currency (est. FX impact -2%) - Assumes Voyix related revenue down ~$100M $4,317 Total Adjusted EBITDA(1) 7% to 10% growth constant currency (est. FX impact -1%) $794 Fully Diluted EPS (non-GAAP) (2) 21% to 27% growth $3.22 Adj. Free Cash Flow – Unrestricted $260 - $300 million $242 (1) Our Adjusted EBITDA calculation previously included certain amounts reported in Other income (expense), net. Beginning in 2025, we exclude total Other income (expense), net from our Adjusted EBITDA calculation, which in 2024 would have resulted in Adjusted EBITDA of $794 million, not including the impact of the revision to our 2024 financial statements discussed in the section entitled “Notes to Investors.” (2) Incorporates consensus average SOFR rates for the year in interest expense. (3) The 2024 base does not reflect the impact of the revision to our 2024 financial statements discussed in the section entitled “Notes to Investors,” or the change in our definition of Non-GAAP diluted EPS discussed in the supplementary section of this presentation, as those changes do not impact the guided ranges we have previously communicated.
SUPPLEMENTARY MATERIALS NCR Atleos Confidential 18
Recurring revenue - all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, processing revenue, interchange and network revenue, Bitcoin-related revenue, and certain professional services arrangements, as well as term- based software license arrangements that include customer termination rights. Annualized recurring revenue or "ARR"- recurring revenue, excluding software licenses sold as a subscription, for the last three months times four, plus the rolling four quarters for term-based software license arrangements that include customer termination rights. Core revenue - refers to the results of our reportable segments (Self-Service Banking, Network, and T&T). We use the term "core" to describe our total segment results excluding revenue related to our "Other" (or "Non-Core") business operations, including commerce-related operations in countries that Voyix exited that are aligned to Atleos and revenues from commercial agreements with Voyix. These non-core revenues are excluded because they are not part of Atleos' ongoing planned business operations. Core Adjusted EBITDA - refers to the results of our reportable segments (Self-Service Banking, Network, and T&T) plus Corporate income and expenses not allocated to segments. We use the term "core" to describe our results excluding "Other" (or "Non-Core") business operations, including commerce-related operations in countries that Voyix exited that are aligned to Atleos and revenues from commercial agreements with Voyix. These non-core results are excluded because they are not part of Atleos' ongoing planned business operations. LTM - Last twelve months ARPU - average revenue per unit ATM - Automated teller machine ATM as a Service (“ATMaaS”) - our turnkey, end-to-end ATM platform solution, whereby we provide comprehensive managed services solutions to financial institutions. As of June 30, 2025, we had 31.1 thousand ATMaaS units. Liquidity - Borrowing capacity under our senior secured Revolving Credit Facility plus unrestricted cash and cash equivalents Hardware revenue - revenue related to ATM and other hardware sales Services revenue - revenue related to hardware and software maintenance, professional services, and ATMaaS Software revenue - revenue related to software license, software maintenance and professional installation services Transactional revenue - revenue related to payment transaction processing services, interchange and other network revenue as well as Bitcoin-related revenue Certain Terms & Key Performance Indicators (KPIs) 19
While Atleos reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, comments made during this conference call and in these materials will include non-GAAP measures. Atleos’ definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. Atleos believes these measures are useful for investors because they provide a more complete understanding of Atleos’ underlying operational performance, as well as consistency and comparability with Atleos’ past reports of financial results. Adjusted Gross Profit (Non-GAAP), Adjusted Operating Expenses (non-GAAP), Adjusted Income from Operations (Non-GAAP), Adjusted Interest and Other Income (Expense) (non-GAAP), Adjusted Income Tax Expense (non-GAAP), Adjusted Net Income from Continuing Operations Attributable to Atleos (non- GAAP) and Diluted Earnings per Share (Non-GAAP) are calculated as GAAP gross profit, operating expenses, income from operations, interest and other income (expense), income taxes, net income attributable to Atleos, and diluted earnings per share, respectively, excluding, as applicable, acquisition-related costs; pension mark-to-market adjustments and other one-time pension-related costs; separation-related costs; amortization of acquisition-related intangibles; stock-based compensation expense; transformation and restructuring charges (which includes integration, severance, divestiture and other exit and disposal costs); Voyix legal and environmental indemnification expense; foreign currency remeasurement gain/loss of hyper-inflationary countries; and other non- recurring or unusual items. Management uses these non-GAAP measures to compare performance consistently over various periods. Diluted Earnings per Share (Non-GAAP) definition change The Company recognizes foreign currency gains and losses as a result of remeasuring the local currency denominated monetary assets and liabilities for countries designated as hyper-inflationary economies. Beginning in the second quarter of 2025, we exclude from our Non-GAAP diluted EPS the gains and losses on remeasurement of foreign currency in hyper-inflationary countries. Management believes excluding these gains or losses is useful as it allows investors to evaluate our performance for different periods on a more comparable basis. Historical periods in this release have been recast to reflect the change in definition. Adjusted Gross Margin (Non-GAAP) and Adjusted Operating Margin Rate (non-GAAP) are calculated based on Adjusted Gross Profit (Non-GAAP) and Adjusted Income from Operations (Non-GAAP), respectively, as a percentage of total revenue. Management uses these non-GAAP measures to compare performance consistently over various periods. Adjusted Effective Income Tax Rate (non-GAAP) is calculated based on Adjusted Income Tax Expense (non-GAAP) divided by adjusted pre-tax income (Adjusted Income from Operations (non-GAAP) less Adjusted Interest and Other Income (Expense) (non-GAAP)). Management uses this non-GAAP measure to compare performance consistently over various periods. NON-GAAP MEASURES 20
Adjusted Free Cash Flow-Unrestricted (FCF) is calculated as net cash provided by operating activities less capital expenditures, less additions to capitalized software, plus/minus the change in restricted cash settlement activity, plus/minus net reductions or reinvestment in the trade receivables facility due to fluctuations in the outstanding balance of receivables sold, plus proceeds from sale-leaseback transactions of owned ATMs used in ATM as a Service and certain Network arrangements, plus pension contributions and settlements, and plus legal and environmental indemnification payments made to Voyix. Restricted cash settlement activity represents the net change in amounts collected on behalf of, but not yet remitted to, certain of the Company’s merchant customers or third-party service providers that are pledged for a particular use or restricted to support these obligations. These amounts can fluctuate significantly period to period based on the number of days for which settlement to the merchant has not yet occurred or day of the week on which a reporting period ends. We believe Adjusted free cash flow- unrestricted information is useful for investors because it indicates the amount of cash available after these adjustments for, among other things, investments in Atleos’ existing businesses, strategic acquisitions, and repayment of debt obligations. Adjusted free cash flow-unrestricted does not represent the residual cash flow available, since there may be other non-discretionary expenditures that are not deducted from the measure. Net Debt is based on Atleos' total debt less cash and cash equivalents, with total debt being defined as total short-term borrowings plus total long-term debt as presented on the face of the Condensed Consolidated Balance Sheets. Atleos believes that Net Debt provides useful information to investors because Atleos’ management reviews Net Debt as part of its management of overall liquidity, financial flexibility, capital structure and leverage. In addition, certain debt rating agencies, creditors and credit analysts monitor Atleos’ Net Debt as part of their assessments of Atleos’ business. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) is calculated as GAAP Net income (loss) attributable to Atleos plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus acquisition-related costs; plus pension mark-to-market adjustments and other one-time pension-related costs; plus separation-related costs; plus transformation and restructuring charges (which includes integration, severance, divestiture and other exit and disposal costs); plus stock-based compensation expense; plus Voyix legal and environmental indemnification expense; plus other amounts included in Other income (expense), net. Management uses this non-GAAP measure to compare performance consistently over various periods. Adjusted EBITDA margin is calculated based on Adjusted EBITDA as a percentage of total revenue. Adjusted EBITDA margin by segment is calculated based on segment Adjusted EBITDA divided by the related segment component of revenue. Management uses this non-GAAP measure to compare performance consistently over various periods. NON-GAAP MEASURES 21
Net Leverage Ratio is calculated by dividing Net Debt by trailing twelve-month Adjusted EBITDA. Management believes this ratio provides useful information to investors because it is an indicator of the Company's ability to meet its future financial obligations. In addition, the net leverage ratio is a measure frequently used by investors and credit rating agencies. Constant Currency (CC) excludes the effects of foreign currency translation by translating prior period results at current period monthly average exchange rates. Due to the overall variability of foreign exchange rates from period to period, management uses constant currency measures to compare performance consistently over various periods. With respect to our Adjusted EBITDA, adjusted free cash flow-unrestricted and non-GAAP diluted earnings per share forward-looking guidance, we do not provide a reconciliation of the respective GAAP measures because we are not able to predict with reasonable certainty the reconciling items that may affect the GAAP net income, GAAP cash flow from operating activities and GAAP diluted earnings per share without unreasonable effort. The reconciling items are primarily the future impact of special tax items, capital structure transactions, restructuring, pension mark-to-market transactions, acquisitions or divestitures, or other events. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures. These non-GAAP measures are reconciled to their corresponding GAAP measures in the following slides and elsewhere in these materials. These reconciliations and other information regarding these non-GAAP measures are also available on the Investor Relations page of Atleos' website at www.ncratleos.com. NON-GAAP MEASURES 22
$ in millions, except per share amounts Q2 2025 GAAP RESULTS Q2 2025 Q2 2024 % Change Revenue $1,104 $1,080 2% Gross Margin 253 251 1% Gross Margin Rate 22.9% 23.2% Operating Expenses 133 143 (7)% % of Revenue 12.0% 13.2% Operating Income 120 108 11% % of Revenue 10.9% 10.0% Interest and other expense, net (57) (75) (24)% Income Tax Expense 19 4 Effective Income Tax Rate 30.2% 12.1% Net Income (Loss) attributable to Atleos $45 $30 50% Diluted EPS attributable to Atleos $0.60 $0.41 46% 23
$ in millions, except per share amounts Q2 2025 OPERATIONAL RESULTS (Non-GAAP) Q2 2025 Q2 2024 % Change Revenue $1,104 $1,080 2% Adjusted Gross Margin (non-GAAP) 275 274 — % Adjusted Gross Margin Rate (non-GAAP) 24.9% 25.4% Adjusted Operating Expenses (non-GAAP) 116 121 (4)% % of Revenue 10.5% 11.2% Adjusted Income from Operations (non-GAAP) 159 153 4% % of Revenue (Adjusted Operating Margin Rate) 14.4% 14.2% Adjusted Interest and other expense (non-GAAP) (66) (78) (15)% Adjusted Income Tax Expense (non-GAAP) 24 13 85% Adjusted Effective Income Tax Rate (non-GAAP) 25.8% 17.3% Adjusted Net Income attributable to Atleos (non-GAAP) $70 $63 11% Diluted EPS attributable to Atleos (non-GAAP)(1) $0.93 $0.85 9% 24 (1) Beginning in the second quarter of 2025, we exclude from our Non-GAAP diluted EPS the gain/loss on remeasurement of foreign currency in hyper-inflationary countries. All periods presented have been recast to reflect the new definition.
$ in millions GAAP TO NON-GAAP RECONCILIATION Q2 2025 % of Revenue Q2 2024 % of Revenue Net Income Attributable to Atleos (GAAP) $45 4.1% $30 2.8% Interest Expense 69 6.3% 79 7.2% Interest Income (1) (0.1)% (2) (0.2)% Income Taxes 19 1.7% 4 0.4% Depreciation and amortization expense 45 4.1% 43 4.0% Acquisition-related amortization of intangibles 24 2.2% 23 2.1% Stock-based compensation expense 8 0.7% 9 0.8% Separation costs 6 0.5% 6 0.6% Acquisition-related Costs 1 0.1% (4) (0.4)% Transformation and restructuring costs (11) (1.0)% 6 0.6% Voyix environmental indemnification expense 1 0.1% — —% Other income (expense) items, net(1) (1) (0.1)% 3 0.3% Adjusted EBITDA (non-GAAP) $205 18.6% $197 18.2% Other (Voyix-related) income and expenses not allocated to segments 1 0.1% (3) (0.3%) Core Adjusted EBITDA (non-GAAP) $206 18.7% $194 17.9% (1) Includes certain income and expense items reported within Other income (expense), net on the Condensed Consolidated Statements of Operations, such as bank fees, the components of pension, postemployment and postretirement expense other than service cost, and the impact of foreign currency fluctuations. Prior to 2025, our calculations of Adjusted EBITDA did not exclude these items. All periods presented have been recast to reflect the new definition. Additional amounts reported in Other income (expense), net are separately captured in this reconciliation. Therefore, Other (income) expense items, net shown here will not agree to total Other income (expense), net on the Condensed Consolidated Statements of Operations. 25
$ in millions GAAP TO NON-GAAP RECONCILIATION Q1 2025 % of Revenue Q4 2024 % of Revenue Q3 2024 % of Revenue Net Income Attributable to Atleos (GAAP) $15 1.5% $48 4.3% $22 2.0% Interest Expense 67 6.9% 72 6.5% 79 7.3% Interest Income (1) (0.1)% (2) (0.2)% (1) (0.1)% Income Taxes 10 1.0% 25 2.3% 14 1.3% Depreciation and amortization expense 41 4.3% 44 4.0% 45 4.2% Acquisition-related amortization of intangibles 23 2.3% 23 2.1% 24 2.2% Stock-based compensation expense 9 0.9% 10 0.9% 9 0.8% Separation costs 2 0.2% (1) (0.1)% 5 0.5% Acquisition-related Costs — —% — —% (1) (0.1)% Transformation and restructuring costs 1 0.1% 8 0.7% 7 0.7% Voyix environmental indemnification expense 4 0.4% 12 1.1% 2 0.2% Pension mark-to-market adjustments — — (38) (3.4)% — —% Loss on Debt Extinguishment — — 20 1.8% — —% Other income (expense) items, net(1) 1 0.1% 8 0.7% 4 0.4% Adjusted EBITDA (non-GAAP) $172 17.6% $229 20.7% $209 19.4% (1) Includes certain income and expense items reported within Other income (expense), net on the Condensed Consolidated Statements of Operations, such as bank fees, the components of pension, postemployment and postretirement expense other than service cost, and the impact of foreign currency fluctuations. Prior to 2025, our calculations of Adjusted EBITDA did not exclude these items. All periods presented have been recast to reflect the new definition. Additional amounts reported in Other income (expense), net are separately captured in this reconciliation. Therefore, Other (income) expense items, net shown here will not agree to total Other income (expense), net on the Condensed Consolidated Statements of Operations. 26
$ in millions GAAP TO NON-GAAP RECONCILIATION Q2 2025 Q2 2024 Income from Operations (GAAP) $120 $108 Transformation and restructuring costs — 6 Stock-based compensation expense 8 9 Acquisition-related amortization of intangibles 24 23 Acquisition-related costs 1 1 Separation costs 6 6 Depreciation and Amortization 45 43 Non-controlling interest 1 1 Adjusted EBITDA (non-GAAP) $205 $197 27
$ in millions GAAP TO NON-GAAP RECONCILIATION Q2 2025 28 Gross Margin Gross Margin rate Operating Expenses Income from operations Interest & Other Expenses, Net Income Tax Expense (Benefit) Effective Income Tax Rate Net Income attributable to Atleos GAAP Results $253 22.9% $133 $120 $(57) $19 30.2% $45 Plus: Special Items Transformation and restructuring costs — —% — — (11) (2) (9) Stock-based compensation expense 2 0.2% (6) 8 — 1 7 Acquisition-related amortization of intangibles 20 1.8% (4) 24 — 6 18 Acquisition-related costs — —% (1) 1 — — 1 Separation costs — —% (6) 6 — — 6 Voyix environmental indemnification expense — —% — — 1 — 1 Hyperinflationary countries (1) — —% — — 1 — 1 Non-GAAP Adjusted Results $275 24.9% $116 $159 $(66) $24 25.8% $70 (1) Beginning in the second quarter of 2025, we exclude from our Non-GAAP Adjusted Net Income attributable to Atleos the gain/loss on remeasurement of foreign currency in hyperinflationary countries. All periods presented have been recast to reflect the new definition.
$ in millions GAAP TO NON-GAAP RECONCILIATION Q2 2024 29 Gross Margin Gross Margin rate Operating Expenses Income from operations Interest & Other Expenses, Net Income Tax Expense (Benefit) Effective Income Tax Rate Net Income attributable to Atleos GAAP Results $251 23.2% $143 $108 $(75) $4 12.1% $30 Plus: Special Items Transformation and restructuring costs 3 0.3% (3) 6 — 1 5 Stock-based compensation expense 1 0.1% (8) 9 — 1 8 Acquisition-related amortization of intangibles 19 1.8% (4) 23 — 6 17 Acquisition-related costs — —% (1) 1 (5) (1) (3) Separation costs — —% (6) 6 — 2 4 Hyperinflationary countries(1) — —% — — 2 — 2 Non-GAAP Adjusted Results $274 25.4% $121 $153 $(78) $13 17.3% $63 (1) Beginning in the second quarter of 2025, we exclude from our Non-GAAP Adjusted Net Income attributable to Atleos the gain/loss on remeasurement of foreign currency in hyperinflationary countries. All periods presented have been recast to reflect the new definition.
30 GAAP TO NON-GAAP RECONCILIATION Q2 2025(1) Q1 2025(1) Q4 2024(1) Q3 2024(1) Q2 2024(1) GAAP Diluted Earnings per Share $0.60 $0.20 $0.64 $0.30 $0.41 Plus: Special Items Transformation and restructuring costs (0.12) 0.01 0.09 0.09 0.07 Stock-based compensation expense 0.09 0.12 0.13 0.11 0.11 Acquisition-related amortization of intangibles 0.25 0.23 0.27 0.25 0.23 Acquisition-related costs 0.01 — — (0.01) (0.04) Separation costs 0.08 0.01 — 0.07 0.05 Voyix environmental indemnification expense 0.01 0.04 0.12 0.03 — Valuation allowance and other tax adjustments — — — 0.03 — Loss on debt extinguishment — — 0.27 — — Pension mark-to-market adjustments — — (0.38) — — Hyperinflationary countries(2) 0.01 0.03 0.05 0.03 0.02 Non-GAAP Diluted Earnings per Share $0.93 $0.64 $1.19 $0.90 $0.85 (1) Based upon the weighted average diluted shares of 74.9 million, 75.2 million, 75.0 million, 74.5 million, and 73.7 million for three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively. (2) Beginning in the second quarter of 2025, we exclude from our Non-GAAP diluted EPS the gain/loss on remeasurement of foreign currency in hyperinflationary countries. All periods presented have been recast to reflect the new definition
$ in millions Q2 2025 SEGMENT RESULTS - GAAP* 31 * Figures presented in this table are calculated in accordance with U.S. GAAP. In accordance with ASC 280, Segment Reporting, the Company uses Adjusted EBITDA to assess segment performance and allocate the Company resources. No other measures, including income from operations, are considered by management in assessing performance nor does the chief operating decision maker use income from operations when assessing performance. Therefore, Adjusted EBITDA is considered the Company's GAAP measure of segment profit or loss. The supplementary segment-level information included on this slide is provided for modeling purposes only. (1) Other represents certain other immaterial business operations, including commerce-related operations in countries that Voyix exited that are aligned to Atleos, that do not represent a reportable segment. Other also includes revenues from commercial agreements with Voyix. (2) Corporate includes income and expenses related to corporate functions that are not specifically attributable to an individual reportable segment. (3) Selling, general and administrative expenses is presented as "SG&A" and research and development expenses is presented as "R&D" above. Self-Service Banking Network T&T Other(1) Corporate(2) Unallocated Total Product Revenue $250 $14 $2 $— $— $266 Service Revenue $483 $306 $39 $10 $— $838 Total Revenue $733 $320 $41 $10 $— $1,104 Cost of Products $191 $13 $1 $1 $11 $217 Cost of Services $328 $245 $28 $10 $23 $634 SG&A and R&D Expenses(3) $43 $24 $4 $1 $61 $133 Income from Operations $171 $38 $8 $(2) $(95) $120
$ in millions Q2 2025 SEGMENT RESULTS - NON-GAAP 32 Self-Service Banking Network T&T Other(1) (4) Corporate(2) (4) Unallocated Total(4) Product Revenue $250 $14 $2 $— $— $266 Service Revenue $483 $306 $39 $10 $— $838 Total Revenue $733 $320 $41 $10 $— $1,104 Adjusted Cost of Products (non-GAAP) $189 $13 $1 $1 $11 $215 Adjusted Cost of Services (non-GAAP) $328 $227 $28 $9 $22 $614 Adjusted SG&A and R&D Expenses(3) (non-GAAP) $42 $20 $4 $1 $49 $116 Adjusted Income from Operations (non-GAAP) $174 $60 $8 $(1) $(82) $159 Adjusted EBITDA(4) $189 $86 $9 $(1) $(78) $205 (1) Other represents certain other immaterial business operations, including commerce-related operations in countries that Voyix exited that are aligned to Atleos, that do not represent a reportable segment. For periods after the separation from Voyix, Other also includes revenues from commercial agreements with Voyix. (2) Corporate includes income and expenses related to corporate functions that are not specifically attributable to an individual reportable segment. (3) Selling, general and administrative expenses is presented as "SG&A" and research and development expenses is presented as "R&D" above. (4) In accordance with ASC 280, Segment Reporting, the Company uses Adjusted EBITDA to measure segment performance. Therefore, Adjusted EBITDA for the reportable segments is considered its GAAP measure of segment profit or loss. We have provided Adjusted EBITDA for Other, Corporate and Total Company on a supplementary basis in order to facilitate a reconciliation of total Adjusted EBITDA to consolidated net income. Supplementary segment-level information provided on this slide is for modeling purposes only and is not considered by Company management in assessing segment performance.
$ in millions Q2 2025 GAAP TO NON-GAAP Segment Reconciliation 33 GAAP* Transformation Costs Stock Based Compensation Acquisition Related Amortization of Intangibles Corporate Acquisition-Related Costs Separation Costs Non-GAAP Self Service Banking $191 $(1) $— $(1) $— $— $189 Network 13 — — — — — 13 T&T 1 — — — — — 1 Other 1 — — — — — 1 Corporate Unallocated 11 — — — — — 11 Total Cost of Products $217 $(1) $— $(1) $— $— $215 Self Service Banking $328 $— $— $— $— $— $328 Network 245 1 — (19) — — 227 T&T 28 — — — — — 28 Other 10 (1) — — — — 9 Corporate Unallocated 23 1 (2) — — — 22 Total Cost of Services $634 $1 $(2) $(19) $— $— $614 Self Service Banking $43 $— $— $— $— $(1) $42 Network 24 — — (3) (1) — 20 T&T 4 — — — — — 4 Other 1 — — — — — 1 Corporate Unallocated 61 — (6) (1) — (5) 49 Total SG&A and R&D Expenses $133 $— $(6) $(4) $(1) $(6) $116 Self Service Banking $171 $1 $— $1 $— $1 $174 Network 38 (1) — 22 1 — 60 T&T 8 — — — — — 8 Other (2) 1 — — — — (1) Corporate Unallocated (95) (1) 8 1 — 5 (82) Total Income from Operations $120 $— $8 $24 $1 $6 $159 *Figures presented in this column are calculated in accordance with U.S. GAAP. This reconciliation is provided to facilitate an understanding of the supplementary segment-level information provided on the preceding slides and the adjustments to arrive at the non-GAAP amounts.
$ in millions Q2 2024 GAAP TO NON-GAAP Segment Reconciliation 34 GAAP* Transformation Costs Stock Based Compensation Acquisition Related Amortization of Intangibles Corporate Acquisition-Related Costs Separation Costs Non-GAAP Self Service Banking $160 $— $— $— $— $— $160 Network 13 — — — — — 13 T&T 4 — — — — — 4 Other 14 — — — — — 14 Corporate Unallocated 19 (1) — — — — 18 Total Cost of Products $210 $(1) $— $— $— $— $209 Self Service Banking $324 $— $— $1 $— $— $325 Network 234 — — (20) — — 214 T&T 33 — — — — — 33 Other 13 — — — — — 13 Corporate Unallocated 15 (2) (1) — — — 12 Total Cost of Services $619 $(2) $(1) $(19) $— $— $597 Self Service Banking $44 $— $— $(1) $— $— $43 Network 27 — — (3) — — 24 T&T 7 — — — — — 7 Other 2 — — — — — 2 Corporate Unallocated 63 (3) (8) — (1) (6) 45 Total SG&A and R&D Expenses $143 $(3) $(8) $(4) $(1) $(6) $121 Self Service Banking $144 $— $— $— $— $— $144 Network 52 — — 23 — — 75 T&T 7 — — — — — 7 Other 2 — — — — — 2 Corporate Unallocated (97) 6 9 — 1 6 (75) Total Income from Operations $108 $6 $9 $23 $1 $6 $153 *Figures presented in this column are calculated in accordance with U.S. GAAP. This reconciliation is provided to facilitate an understanding of the supplementary segment-level information provided on the preceding slides and the adjustments to arrive at the non-GAAP amounts.
$ in millions Q2 2025 GAAP TO NON-GAAP Product Reconciliation 35 GAAP* Transformation Costs Stock Based Compensation Acquisition Related Amortization of Intangibles Non-GAAP GROSS PROFIT(1) Software and Services $187 $— $— $— $187 Transactional 57 (1) — 19 75 Hardware 43 2 — 1 46 Corporate unallocated (34) (1) 2 — (33) Total Core Gross Profit(1) 253 — 2 20 275 Other - Voyix — — — — — Total Atleos Gross Profit(1) $253 $— $2 $20 $275 *Figures presented in this column are calculated in accordance with U.S. GAAP. This reconciliation is provided to facilitate an understanding of the supplementary product-level information provided in this presentation and the adjustments to arrive at the non-GAAP amounts. Supplementary product-level information provided on this slide is for modeling purposes only and is not considered by Company management, including the chief operating decision maker, in assessing segment performance. (1) Product level adjusted gross profit (non-GAAP) includes management's estimates of certain cost allocations among the product categories.
$ in millions Q1 2025 GAAP TO NON-GAAP Product Reconciliation 36 GAAP* Transformation Costs Stock Based Compensation Acquisition Related Amortization of Intangibles Non-GAAP GROSS PROFIT(1) Software and Services $175 $— $— $— $175 Transactional 62 1 — 19 82 Hardware 25 — — 1 26 Corporate unallocated (31) — 1 — (30) Total Core Gross Profit(1) 231 1 1 20 253 Other - Voyix 2 — — — 2 Total Atleos Gross Profit(1) $233 $1 $1 $20 $255 *Figures presented in this column are calculated in accordance with U.S. GAAP. This reconciliation is provided to facilitate an understanding of the supplementary product-level information provided in this presentation and the adjustments to arrive at the non-GAAP amounts. Supplementary product-level information provided on this slide is for modeling purposes only and is not considered by Company management, including the chief operating decision maker, in assessing segment performance. (1) Product level adjusted gross profit (non-GAAP) includes management's estimates of certain cost allocations among the product categories.
$ in millions Q4 2024 GAAP TO NON-GAAP Product Reconciliation 37 GAAP* Transformation Costs Stock Based Compensation Acquisition Related Amortization of Intangibles Separation Costs Non-GAAP GROSS PROFIT(1) Software and Services $198 $— $— $— $— $198 Transactional 88 — — 19 — 107 Hardware 44 — — — — 44 Corporate unallocated (35) 2 2 — (1) (32) Total Core Gross Profit(1) 295 2 2 19 (1) 317 Other - Voyix 3 — — — — 3 Total Atleos Gross Profit(1) $298 $2 $2 $19 $(1) $320 *Figures presented in this column are calculated in accordance with U.S. GAAP. This reconciliation is provided to facilitate an understanding of the supplementary product-level information provided in this presentation and the adjustments to arrive at the non-GAAP amounts. Supplementary product-level information provided on this slide is for modeling purposes only and is not considered by Company management, including the chief operating decision maker, in assessing segment performance. (1) Product level adjusted gross profit (non-GAAP) includes management's estimates of certain cost allocations among the product categories.
$ in millions Q3 2024 GAAP TO NON-GAAP Product Reconciliation 38 GAAP* Transformation Costs Stock Based Compensation Acquisition Related Amortization of Intangibles Separation Costs Non-GAAP GROSS PROFIT(1) Software and Services $183 $1 $— $— $— $184 Transactional 78 — — 20 — 98 Hardware 30 — — — — 30 Corporate unallocated (34) 1 1 — 1 (31) Total Core Gross Profit(1) 257 2 1 20 1 281 Other 3 — — — — 3 Total Atleos Gross Profit(1) $260 $2 $1 $20 $1 $284 *Figures presented in this column are calculated in accordance with U.S. GAAP. This reconciliation is provided to facilitate an understanding of the supplementary product-level information provided in this presentation and the adjustments to arrive at the non-GAAP amounts. Supplementary product-level information provided on this slide is for modeling purposes only and is not considered by Company management, including the chief operating decision maker, in assessing segment performance. (1) Product level adjusted gross profit (non-GAAP) includes management's estimates of certain cost allocations among the product categories.
$ in millions Q2 2024 GAAP TO NON-GAAP Product Reconciliation 39 GAAP* Transformation Costs Stock Based Compensation Acquisition Related Amortization of Intangibles Non-GAAP GROSS PROFIT(1) Software and Services $169 $— $— $(1) $168 Transactional 75 — — 20 95 Hardware 37 — — — 37 Corporate unallocated (34) 3 1 — (30) Total Core Gross Profit(1) 247 3 1 19 270 Other 4 — — — 4 Total Atleos Gross Profit(1) $251 $3 $1 $19 $274 *Figures presented in this column are calculated in accordance with U.S. GAAP. This reconciliation is provided to facilitate an understanding of the supplementary product-level information provided in this presentation and the adjustments to arrive at the non-GAAP amounts. Supplementary product-level information provided on this slide is for modeling purposes only and is not considered by Company management, including the chief operating decision maker, in assessing segment performance. (1) Product level adjusted gross profit (non-GAAP) includes management's estimates of certain cost allocations among the product categories.
$ in millions GAAP TO NON-GAAP RECONCILIATION 40 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Cash provided by operating activities $(20) $123 $80 $107 $9 Capital expenditures $(24) $(29) $(18) $(22) $(23) Additions to capitalized software $(14) $(12) $(13) $(11) $(9) Restricted cash settlement activity $37 $(106) $69 $(37) $7 Pension contributions $6 $1 $1 $1 $— Environmental indemnification payments to Voyix $6 $— $— $— $— Sale-leaseback transaction $24 $— $— $— $— Temporary transfer of funds from/to Voyix(1) $— $— $— $— $32 Adjusted Free Cash Flow-Unrestricted $15 $(23) $119 $38 $16 (1) As of March 31, 2024, cash provided by operating activities included approximately $32 million of cash related to a temporary transfer of funds from Voyix in March, which was remitted back to Voyix in April 2024.
THANK YOU NCR Atleos Confidential 41