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01/11 07:36
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary reveals mixed signals. While the restaurant segment shows growth, the retail segment faces declines, impacting overall financial health. The Q&A session provides limited clarity on new payment relationships and revenue impact, suggesting uncertainty. Positive factors include recurring revenue growth and new partnerships. However, the lack of guidance on financial details and previous challenges in retail weigh on sentiment. Without market cap data, the overall prediction remains neutral due to balanced positives and negatives, with no strong catalysts to drive significant short-term price changes.
Total Revenue $684 million, declined 3% year-over-year due to lower hardware sales and one-time software and services revenue.
Recurring Revenue $425 million, increased 5% year-over-year driven by 7% growth in restaurants and 4% growth in retail.
Software ARR Increased 8% year-over-year.
Total ARR Increased 5% year-over-year.
Platform Sites Increased 12% year-over-year to 78,000.
Payment Sites Increased 3% year-over-year to nearly 8,500.
Adjusted EBITDA $125 million, increased 32% year-over-year as margin expanded 490 basis points to 18.3%, primarily driven by larger-than-anticipated hardware margins and cost actions.
Restaurants Segment Revenue $210 million, flat year-over-year. Recurring revenue increased 7% to $146 million, driven by payments growth and ramping of a new large customer agreement.
Restaurants Segment Adjusted EBITDA Increased 12% year-over-year to $74 million as margin expanded nearly 400 basis points to 35.2%, driven by revenue mix and cost actions.
Retail Segment Revenue $467 million, declined 4% year-over-year due to declines in hardware sales and one-time software and services revenue. Recurring revenue increased 4% to $276 million.
Retail Segment Adjusted EBITDA Declined 17% year-over-year to $90 million, driven by lower revenue and customer adjustments tied to prior year delayed software implementations. Adjusted EBITDA margin decreased 290 basis points year-over-year to 19.3%.
Adjusted Free Cash Flow $42 million for the quarter before considering $23 million of restructuring cash expenditures and $3 million of accelerated product investments.
Capital Expenditures $38 million during the quarter.
Net Leverage Position 2x at the end of the third quarter based on net debt as of September 30 and the last 12 months adjusted EBITDA.
Voyix Commerce Platform (VCP): Accelerated innovation with AI-enabled development tools, enabling faster delivery of applications across markets and formats. Showcased new capabilities at the NACS show and plans to introduce more at the NRF show.
Aloha Next-Generation Point-of-Sale: Edge-enabled microservices architecture for restaurants, with lab testing in early 2026 and broad availability by Q3 2026. Signed a 6-year exclusive agreement with Chipotle for implementation across 4,000 restaurants.
Modernized Point-of-Sale Application: Three grocery brands in the U.S. and Europe migrated to this application, with state-wide rollouts planned for 2026.
Voyix Loyalty: Launched a next-generation loyalty solution, signing a multiyear agreement with HEB for promotion execution across 400 stores.
Geographic Expansion: Marco's Pizza to expand globally, starting in Mexico, supported by NCR Voyix's platform.
Fuel Payments Market: Expanded domestic fuel offering with agreements for commercial fleet card acceptance, targeting $1.4 trillion in U.S. payment volume.
Hardware Outsourcing: Transitioning hardware business to Ennoconn starting January 2026 to reduce capital intensity and focus on high-margin software and services.
Pricing Initiatives: Introduced price escalators for software and payments contracts to align pricing with delivered value.
Shift to Software-Led Business: Repositioning as a software-led company with robust payments and service capabilities, reducing reliance on hardware.
AI Integration: AI integrated into the development and deployment of customer environments, accelerating innovation and scaling capabilities.
Outsourcing of hardware business: The transition to outsourcing the hardware business to Ennoconn, while aimed at reducing capital intensity and streamlining operations, carries risks such as potential disruptions in supply chain, integration challenges, and customer support readiness during the phased transition.
Modernizing legacy commercial structures: Introducing price escalators in multiyear software and services contracts may face resistance from customers, potentially impacting contract renewals and customer satisfaction.
Migration from JetPay front end: The migration process, while aimed at scaling payments, could encounter technical challenges or delays, impacting the company's ability to expand its payments presence.
Expansion of Voyix Commerce platform: Accelerating innovation and extending the platform to additional verticals and geographic markets may face challenges such as market acceptance, competition, and execution risks in deploying new solutions.
AI-enabled development: While AI integration accelerates development, it may introduce risks related to data security, system reliability, and potential over-reliance on AI-driven processes.
Customer adoption of new solutions: The adoption of new cloud-native microservices-based architectures and applications may face resistance or slower uptake from customers accustomed to legacy systems.
Economic uncertainties: Economic conditions, such as inflation or market downturns, could impact customer spending and the company's revenue growth.
Restructuring and transformation costs: The ongoing restructuring and transformation initiatives, including headcount reductions and TSA exits, may lead to short-term operational disruptions and employee morale issues.
Dependence on large enterprise customers: The company's reliance on large enterprise brands for platform site growth could lead to revenue fluctuations based on the timing of customer onboarding and contract renewals.
Regulatory and compliance risks: Operating in multiple countries and expanding into new markets may expose the company to varying regulatory requirements and compliance challenges.
Revenue Outlook: The company expects revenue to be between $2.65 billion and $2.67 billion for the full year 2025. Hardware revenue is anticipated to exceed prior expectations, while software and services revenue will be slightly below due to customer adjustments tied to prior year delayed software implementations.
Adjusted EBITDA: Adjusted EBITDA is projected to range between $420 million and $435 million for the full year 2025.
Non-GAAP Diluted EPS: Non-GAAP diluted EPS is expected to be between $0.85 and $0.90 for the full year 2025.
Adjusted Free Cash Flow: Adjusted free cash flow is forecasted to be between $170 million and $175 million, excluding restructuring and transformation costs and accelerated product investments.
Capital Expenditures: Capital expenditures for 2025 are expected to be approximately $160 million, inclusive of accelerated product investments.
Strategic Growth Drivers: The company plans to accelerate innovation across the Voyix Commerce platform, leveraging AI-enabled development to expand into additional vertical and geographic markets. This is expected to increase higher-margin software and connected payments revenue as a proportion of total revenue.
Product Launches and Market Expansion: The company will introduce a broader suite of software and payment innovations at the NRF show in January 2026, targeting additional retailers and restaurants. The Aloha next-generation point-of-sale system will begin lab testing in Q1 2026, with broad availability by Q3 2026.
Customer Engagement and Partnerships: A new 6-year exclusive agreement with Chipotle was signed, making Chipotle the first to implement the Aloha next-generation point-of-sale system across 4,000 restaurants worldwide. This reflects the company's focus on strengthening enterprise relationships and expanding its market presence.
The selected topic was not discussed during the call.
The earnings call reveals a decline in revenue and attendance, impacted by macroeconomic headwinds and reliance on premium formats. Despite some positive indicators, such as international growth and a share buyback plan, the overall financial performance is weak. The Q&A highlights potential future opportunities but does not offset current challenges. Given the absence of strong positive catalysts and the market's sensitivity to economic conditions, the stock is likely to experience a negative reaction in the short term.
The earnings call summary reveals mixed signals. While the restaurant segment shows growth, the retail segment faces declines, impacting overall financial health. The Q&A session provides limited clarity on new payment relationships and revenue impact, suggesting uncertainty. Positive factors include recurring revenue growth and new partnerships. However, the lack of guidance on financial details and previous challenges in retail weigh on sentiment. Without market cap data, the overall prediction remains neutral due to balanced positives and negatives, with no strong catalysts to drive significant short-term price changes.
Earnings call summary shows strong financial performance with increased EBITDA and recurring revenue, despite a decline in hardware sales. The Q&A section highlights positive demand across sectors, strong cost-saving initiatives, and growth in the payment business. Management's optimistic guidance and increased share repurchase authority further support a positive outlook. However, some uncertainty remains due to tariff exposure and unclear responses on certain topics, keeping the sentiment from reaching 'strong positive.' Overall, the stock is likely to see a positive movement in the next two weeks.
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