Ncr . 5.5% Pfd Conv Ser A Stock Earnings Reports

Key points for investors:

- Financial performance: Q1 2026 revenue was $606M (down 1% YoY). Adjusted EBITDA rose 5% to $78M (12.9% margin). Non‑GAAP EPS was $0.10 (up 25%); GAAP EPS was a $0.04 loss due to ODM implementation costs. Adjusted free cash flow before restructuring was $71M. Net leverage was 2.1x at quarter end.

- Voyix Commerce Platform (VCP) traction: Management reported early commercial momentum for the VCP applications: 21 new platform contracts signed through Q1 2026 with ~$293M remaining contract value (RCV), ~13% from new logos. VCP sales represented <5% of the ~400 enterprise customers but are ramping in the U.S. and Europe. Platform and payment sites grew (platform sites +7% to ~83k; payment sites +3% to ~8.5k).

- Product & AI progress: Company emphasized AI-enabled features and data advantages (Picklist Assist live in ~60,000 self-checkout lanes; example customer processed ~115–150M transactions/month). Plan to scale embedded AI, payments attachment, and third‑party integrations (300+ integrations).

- Hardware / ODM shift: As of April 1, NCR Voyix implemented the Ennoconn ODM agreement and now recognizes net commission revenue on hardware rather than hardware revenue on a gross basis — a strategic step toward a software-and-services-led model.

- Portfolio simplification & capital returns: Announced sale of Japan banking business for $32M (to be reflected in discontinued operations) and ~ $2.5B in net proceeds realized since the ATM spin. Management has returned capital via share repurchases (~9M common shares repurchased in Q1) and reduced debt; expect to return ~10% of proceeds to shareholders by year-end.

- Business segmentation: Retail showed strength (Retail revenue +2%; Retail adjusted EBITDA +20% to $78M) driven by software & payments. Restaurants revenue declined (–6%) driven by SMB softness and lower hardware; enterprise/mid-market restaurants grew and Aloha Next traction is building (100 new restaurant customers in Q1; ~60 demos this year). SMB restaurant recovery expected with Aloha Next (restaurant-in-a-box) later this year/into next.

- Guidance: Updated 2026 outlook (pro forma excluding Japan banking): revenue $2.188B–$2.303B (≈ –2% to +3% pro forma YoY) and adjusted EBITDA $432M–$447M (≈ +3% to +7% pro forma YoY). Management expects adjusted EBITDA growth weighted more to Q4 as sales and cost initiatives take hold.

- Cost actions and cash flow: Ongoing cost initiatives contributed to margin expansion (~80 bps). Cost reduction program (~$90M in 2026) largely implemented; company has materially reduced payroll since the spin. CapEx ~similar to 2025.

- Sales pipeline & go‑to‑market: Nearly 200 product demos year-to-date across retail and restaurants; notable customers/wins include Pilot (5-year agreement), Stater Brothers, Marco’s Pizza international rollouts, Lidl services expansion, and others. Management highlights faster deployment velocity and the ability to run VCP on existing hardware to ease customer transitions.

- Risks & timing: Large enterprise transitions have lengthy deployment cycles (9–24 months ramp). VCP subscription revenue recognizes over time as deployments ramp; the business remains in early stages of recurring subscription conversion.

Overall takeaways: NCR Voyix is executing a strategic shift from hardware to software-and-services with early but meaningful traction in its Voyix Commerce Platform, improving margins via cost actions, returning capital to shareholders, and providing pro forma guidance that implies modest growth in EBITDA for 2026 while revenue re‑profiles as platform subscription revenue ramps.