Q2 2026 NCR Voyix Corp Earnings Call Transcript
Key Points
- Recurring revenue grew 3% year-over-year, with software revenue up 6% and services up 1%, driven by strategic pricing and new product adoption.
- Adjusted EBITDA increased 5% to $98 million, with margin expansion of 460 basis points (80 basis points excluding hardware transition), reflecting cost efficiencies.
- Strong momentum in VOIX Commerce platform: 25 signed contracts, 10 customers live across 2,000+ lanes, and 16 active customer labs in seven countries.
- Innovative AI-driven deployment tools, including remote installations and migration agents, reduce implementation time and cost, enhancing scalability and customer value.
- Retail segment showed robust performance: revenue up 4% (ex-hardware), recurring revenue up 6%, and adjusted EBITDA margin expanded 350 basis points (ex-hardware), driven by new customer wins and payments initiatives.
- Restaurant segment signed over 100 new customers, with AlohaNext gaining traction, including a major win with Pizza Ranch (200+ locations) and an international agreement with a top APAC operator.
- Payments gateway strategy progressing: conversions to Voyix Connect in US and Latin America, with new agreements (e.g., Voyager) expanding fleet card acceptance and future revenue potential.
- Strong balance sheet: net leverage at 2.0x, adjusted free cash flow of $56 million, and continued share repurchases ($11 million in Q2).
- Total revenue declined 21% to $523 million due to the hardware transition, with restaurant revenue down 6% (ex-hardware) from lower installations and SMB softness.
- Restaurant adjusted EBITDA decreased 15% to $58 million, with margin contraction of 380 basis points (ex-hardware) due to revenue decline and mix.
- SMB segment remains a headwind, with continued softness and price sensitivity, though expected to moderate with the launch of Store-in-a-Box.
- Customers are delaying hardware refreshes, likely into next year, due to macroeconomic pressures and higher memory chip costs, impacting near-term revenue.
- Non-GAAP EPS was flat at $0.17 due to a higher tax rate, while GAAP EPS was a loss of $0.03, reflecting restructuring and transformation costs.
- RCV for VCP contracts declined sequentially to $286 million (up 65% YoY), indicating lumpy sales and revenue recognition that may not be linear.
- Corporate expenses remained elevated at $57 million, with expectations to stay consistent, and prior-year benefits from TSA completion will not repeat.
- International expansion of the payments gateway is delayed, with Europe and APAC not expected until 2027, limiting near-term revenue upside.
Thank you for standing by. My name is Carly and I will be your conference operator today. At this time, I would like to welcome everyone to the NCR Boyks Corporation Second Quarter 2026 Earnings Conference Call.
All lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question-and-answer session.
If you would like to ask a question during this time, simply press star followed by the number. On your telephone keypad.
If you would like to withdraw your question, press *1 again.
Thank you. I would now like to turn the call over to Sarah Jane Snyder, Vice President of Investor Relations. Please go ahead.
Good morning, and thank you for joining our second quarter 2026 earnings conference call.
This morning, we issued our earnings release, reporting financials for the quarter ended June 30, 2026.
A copy of the earnings release that we will reference during this
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