- Total Revenue: $617 million, a decline of 13%.
- Recurring Revenue: Increased 2% to $407 million, representing 66% of total revenue.
- Adjusted EBITDA: Increased 19% to $75 million, with a margin expansion of 330 basis points to 12.2%.
- Software ARR: Increased 5%.
- Total Segment ARR: Increased 2%.
- Platform Sites: Increased 27% to 77,000 sites.
- Restaurants Segment Revenue: Declined 5% to $191 million.
- Restaurants Segment Adjusted EBITDA: Increased 7% to $59 million, with a margin expansion of 370 basis points to nearly 31%.
- Retail Segment Revenue: Declined 14% to $420 million.
- Retail Segment Adjusted EBITDA: Decreased 24% to $65 million.
- Corporate and Other Expenses: Decreased 37% to $49 million.
- Adjusted Free Cash Flow: Use of $20 million before $33 million of cash expenditures related to restructuring and strategic initiatives.
- Share Repurchases: Approximately 5 million shares for $62 million in Q1; total of 10 million shares for $125 million since November 2024.
- Tariff-Related Costs: Estimated between $8 million and $12 million, potentially up to $20 million.
- 2025 Revenue Guidance: $2.575 billion to $2.65 billion, reflecting a 6% to 9% decline.
- 2025 Adjusted EBITDA Guidance: $420 million to $445 million, representing a 21% to 28% increase.
- Adjusted EBITDA Margin Guidance: Expected to improve 400 to 450 basis points, ranging between 16.3% and 16.8%.
- Non-GAAP EPS Guidance: Between $0.75 and $0.80.
- Adjusted Free Cash Flow Guidance: Expected between $170 million and $190 million, excluding certain costs.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NCR Voyix Corp (VYX, Financial) signed new mid-market and enterprise customers in both restaurant and retail segments, expanding key existing relationships.
- The company is progressing on implementing its hardware ODM and new card acquiring capabilities, with plans to launch cloud-native platform and payment initiatives in the second half of the year.
- Recurring revenue increased by 2% to $407 million, now representing 66% of total company revenue.
- The company completed an additional $25 million of share repurchases, increasing the total aggregate purchase authority to $200 million.
- NCR Voyix Corp (VYX) is launching the Voyix commerce platform (VCP) to transform physical locations into digital experience channels, enhancing customer engagement and loyalty.
Negative Points
- Total revenue declined by 13% due to continued softness in hardware sales and exiting one-time software and services revenue.
- The company is facing tariff-related costs, estimated to be between $8 million and $12 million for the year, with potential to reach $20 million.
- Adjusted free cash flow was a use of $20 million for the quarter, reflecting normal seasonality and timing of certain cash receipts.
- The retail segment experienced a 14% decline in total segment revenue, primarily due to declines in hardware revenue and gross profit.
- The company is undergoing restructuring and transformation efforts, with costs expected to be higher than initially estimated, now at about $65 million.
Q & A Highlights
Q: Can you provide an update on the demand for self-checkout solutions and any related software and services?
A: Darren Wilson, Executive Vice President, President, Retail and Payments, noted that despite tough times for retailers, there is continued interest in self-checkout solutions across all markets. Retailers are looking to drive cost efficiency and optimize operations through automation. The self-checkout is part of a broader platform strategy that includes data collection and personalized pricing initiatives. Nick East, Chief Product Officer, added that NCR Voyix's platform is hardware agnostic, allowing the use of existing self-checkout hardware from competitors, which helps in delivering value without requiring new capital investments.
Q: What are the latest developments regarding the Voyix restructuring plan and tariff mitigation actions?
A: Brian Webb-Walsh, Chief Financial Officer, stated that the cost program for the year is sized at $100 million, with restructuring costs now estimated at $65 million. The company is looking at cost programs to mitigate tariff impacts by sourcing suppliers from lower or non-tariff markets. James Kelly, Chairman of the Board, mentioned that while the restructuring is mostly complete, they are continuously assessing the situation and have conveyed to suppliers their preference to avoid passing on tariff costs.
Q: Can you elaborate on the progress and strategy for integrating Worldpay's payment processing capabilities?
A: James Kelly explained that the integration with Worldpay is on track, with expectations to be operational by the end of the summer. The company is converting existing JetPay customers to Worldpay. Conversations with customers have been positive, with interest in having a single relationship for payments and point-of-sale solutions. Darren Wilson added that the pitch to customers is about providing a total value solution, integrating payments with point-of-sale for better data and insights.
Q: How is the macroeconomic environment affecting NCR Voyix's business, particularly in terms of customer spending and recurring revenue?
A: James Kelly noted that despite macroeconomic uncertainties, NCR Voyix's B2B relationships remain strong, with low revenue attrition. Customers are eager to upgrade to new platforms and products, and there has been no significant pullback in spending. The company is maintaining its guidance, supported by long-standing customer relationships and ongoing demand for platform upgrades.
Q: What is the outlook for the retail and restaurant segments, and where do you see the most growth potential?
A: James Kelly expressed high expectations for growth in both the retail and restaurant segments. The retail segment, particularly in fuel and grocery, is expected to drive significant transaction volumes. Beimnet Tadele, Executive Vice President, President of Restaurants, highlighted the potential for growth in the restaurant segment through global services, platform rollouts, and a transformed sales organization. The company is optimistic about expanding its market presence and increasing recurring revenue streams.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
