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01/11 03:34
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
Total Revenue $666 million, declined 8% year-over-year due to continued softness in hardware sales.
Recurring Revenue $422 million, increased 4% year-over-year and as a percent of total revenue improved over 700 basis points to 63%.
Software ARR Increased 7% year-over-year.
Total Segment ARR Increased 5% year-over-year.
Platform Sites Increased 16% year-over-year to 78,000 sites.
Payment Sites Increased 3% year-over-year to 8,400 sites.
Adjusted EBITDA $95 million, increased 20% year-over-year as margin expanded 340 basis points to 14.3%, largely driven by cost actions.
Restaurants Recurring Revenue $143 million, increased 4% year-over-year.
Restaurants Total Segment Revenue $205 million, increased 2% year-over-year due to an increase in payments and recurring services revenue.
Restaurants Segment Adjusted EBITDA $68 million, increased 10% year-over-year as margin expanded 240 basis points to 33.2%, driven by efficiency initiatives and software and services sales mix.
Retail Recurring Revenue $277 million, increased 5% year-over-year, driven primarily by the ramp of a new large customer agreement and platform revenue growth.
Retail Total Segment Revenue $454 million, declined 12% year-over-year due to a decline in hardware sales.
Retail Segment Adjusted EBITDA $81 million, decreased 7% year-over-year, primarily due to declines in hardware revenue, but absolute EBITDA improved sequentially from the first quarter. Adjusted EBITDA margin expanded 100 basis points year-over-year to 17.8%.
Corporate and Other Expenses Decreased 23% year-over-year to $54 million, reflecting cost initiatives.
Adjusted Free Cash Flow $37 million for the quarter before considering $24 million of restructuring cash expenditures, $284 million of cash taxes related to the sale of digital banking, and $5 million of accelerated product investments.
Capital Expenditures $42 million during the quarter and $81 million for the first half of 2025, with over 80% related to software investments.
Voyix Commerce Platform (VCP): Connected nearly 78,000 sites, a 16% year-over-year increase. Processed over 500 million transaction API calls in June 2025, with consumer orders increasing by 60% in the first half of 2025.
Picklist Assist: AI-enabled computer vision capability implemented in over 22,000 checkout lanes worldwide, improving speed, accuracy, and efficiency.
Edge Virtualization Solution: Adopted by major retailers to improve store outcomes, enabling faster application deployment and bypassing lengthy certification processes.
Geographic Expansion: Enabled acquiring in the U.K., Canada, and Latin America. Expanded services for a global coffee chain in the U.S. and Canada, and completed rollout for a fast-food chain in the U.K.
Retail Market Penetration: Signed contracts with grocery and drugstore chains in Japan, and supermarket chains in the U.K. Expanded agreements with over 10 grocery, fuel, and convenience customers across North America, Europe, and Japan.
Restaurant Market Expansion: Focused on Latin America for restaurant software adoption, leveraging strong retail presence in Mexico, Chile, Peru, and Argentina.
Recurring Revenue Growth: Increased recurring revenue by 4% to $422 million, now 63% of total revenue. Software ARR grew by 7%, and total ARR by 5%.
Cost Efficiency: Adjusted EBITDA increased by 20% to $95 million, with a margin expansion of 340 basis points to 14.3%, driven by cost actions.
Payment Integration Strategy: All new software contracts to include payment capabilities, reducing vendor management complexity and enhancing revenue opportunities.
ODM Agreement: Implementation progressing, with pilots underway in European markets and testing in Nashville for Americas and Asia Pacific.
Tariff-related costs: The company continues to face tariff-related costs estimated between $8 million and $12 million for the year. This could impact profitability and requires ongoing monitoring and potential reassessment of mitigation strategies.
Decline in hardware sales: Total revenue declined 8% due to continued softness in hardware sales, which also led to a 12% decline in retail segment revenue. This poses a challenge to overall revenue growth and profitability.
Economic uncertainties in hardware market: The decline in hardware sales reflects broader economic uncertainties, which could continue to impact the company's financial performance.
Global expansion challenges: Efforts to expand enterprise restaurant offerings internationally, particularly in Latin America, may face challenges due to varying market conditions and competition.
Customer retention and contract renewals: The company has initiated conversations with only 10% of customers regarding expanded service offerings, which could pose a risk to customer retention and revenue growth if not managed effectively.
Supply chain and implementation risks: The implementation of the ODM agreement and pilots in European and other markets could face delays or issues, impacting timelines and operational efficiency.
Competitive pressures: The company faces competitive pressures in markets like Japan and the U.K., where it is displacing competitors but must maintain its edge to secure long-term contracts.
Cost management and restructuring: While cost initiatives have improved margins, restructuring cash expenditures and accelerated product investments could strain financial resources in the short term.
Revenue Expectations: The company expects revenue to range from $2.575 billion to $2.65 billion for the full year 2025.
Adjusted EBITDA: Adjusted EBITDA is projected to range from $420 million to $445 million for the full year 2025.
Non-GAAP Diluted EPS: Non-GAAP diluted EPS is expected to be between $0.75 and $0.80 for the full year 2025.
Adjusted Free Cash Flow: Adjusted free cash flow is anticipated to be between $170 million and $190 million for the full year 2025.
Product Launches: The company plans to launch additional VCP capabilities in Q4 2025 and into 2026. In retail, enterprise grocery and convenience point-of-sale, self-checkout, and fuel solutions will be launched at the NRF show in January 2026. In restaurants, a new all-in-one application for labor, inventory, reporting, and scheduling will launch in Q4 2025, and a centralized menu management solution will launch in early 2026.
Payments Expansion: The company completed its pilot for Voyix Pay in the U.S. in July 2025 and aims to migrate its existing SME portfolio and sign new customers to the processing platform by mid-September 2025. Additionally, acquiring solutions will be enabled in the U.K., Canada, and Latin America.
Hardware Implementation: The implementation of the ODM agreement is expected to commence by year-end 2025, with pilots for the Americas and Asia Pacific beginning next month.
Market Trends and Technology: The company is focusing on cloud-native technologies and microservices architecture, which are becoming a competitive advantage in transforming brick-and-mortar stores to mirror digital channels.
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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