NCR Voyix (NYSE:VYX) reported its first quarter 2025 financial results on May 8, showing continued improvement in profitability metrics despite ongoing revenue challenges. The company’s strategic shift toward recurring revenue streams and platform growth appears to be gaining traction, with platform sites increasing 27% year-over-year.
Quarterly Performance Highlights
NCR Voyix reported Q1 2025 revenue of $617 million, down from $710 million in the same period last year. Despite the revenue decline, the company demonstrated improved profitability with Adjusted EBITDA reaching $75 million (12.2% margin), up from $63 million (8.9% margin) in Q1 2024. Non-GAAP Diluted EPS turned positive at $0.09, compared to a loss of $(0.17) in the prior-year period.
The company added more than 215 new customers during the quarter while continuing its business transformation following the October 2023 spin-off of NCR Atleos and the September 2024 sale of its Digital Banking segment for $2.45 billion.
As shown in the following overview of Q1 2025 results, NCR Voyix is successfully shifting toward recurring revenue streams, which grew to $407 million from $310 million in the prior year:
A key highlight is the significant growth in platform sites, which increased 27% year-over-year, while payment sites grew by 7%. Annual recurring revenue (ARR) showed modest growth of 2%, reflecting the company’s ongoing transition toward subscription-based models.
Segment Analysis
In the Restaurants segment, NCR Voyix reported mixed results with platform sites increasing 5% and payment sites growing 6%, while ARR declined slightly by 1%. The segment added more than 185 new customers during the quarter.
Despite lower overall revenue, the Restaurants segment improved its profitability with Adjusted EBITDA margin expanding to 30.9% ($59 million) from 27.2% ($55 million) in Q1 2024, as illustrated in the following segment breakdown:
The Retail segment demonstrated even stronger platform site growth at 48%, with payment sites increasing 14% and ARR growing 4%. The segment added more than 30 new customers in Q1 2025.
However, the Retail segment’s Adjusted EBITDA margin contracted to 15.5% ($65 million) from 17.5% ($86 million) in the prior year period, as shown in the following segment results:
The contrasting performance between segments highlights the varying pace of transformation across NCR Voyix’s business units, with Restaurants showing margin improvement despite revenue challenges, while Retail delivers stronger platform growth but faces near-term margin pressure.
Financial Position and Capital Allocation
NCR Voyix maintained a solid financial position with $289 million in available cash and total debt of $1,105 million as of March 31, 2025, resulting in an adjusted net debt of $816 million. The company’s adjusted net leverage ratio stood at 1.9x, based on its 2025 adjusted EBITDA outlook of $433 million.
The company’s debt structure is 100% fixed-rate with a weighted average rate of 5.06% and an average maturity of 3.8 years, providing stability in the current interest rate environment. The following chart details the company’s financial position and capital allocation strategy:
NCR Voyix continued to return capital to shareholders with $62 million in share repurchases during Q1 2025 and an additional $7 million in April. Since November 2024, the company has repurchased $125 million in shares. In May 2025, the Board authorized an amended repurchase program, increasing the total aggregate repurchase authority to $200 million, signaling confidence in the company’s financial outlook.
Capital expenditures totaled $39 million in Q1 2025, with the company expecting to invest approximately $150 million throughout 2025, including $20 million in accelerated investments to support growth initiatives.
Forward-Looking Statements
For fiscal year 2025, NCR Voyix provided a positive outlook despite anticipated revenue challenges. The company expects total revenue between $2,575 million and $2,650 million, with software and services revenue of $1,995-$2,020 million and hardware revenue of $580-$630 million.
The company projects continued margin expansion with adjusted EBITDA margin of 16.3-16.8%, translating to $420-$445 million in adjusted EBITDA. Non-GAAP diluted EPS is expected to range from $0.75 to $0.80, with adjusted free cash flow between $170-$190 million.
The following table details the company’s full-year 2025 outlook:
This guidance assumes full implementation of the hardware business transition with Ennoconn, estimated impacts from trade tariffs, and consistent foreign currency exchange rates. The outlook reflects management’s confidence in continued profitability improvement despite ongoing revenue headwinds as the company completes its business transformation.
The reconciliation of GAAP to non-GAAP measures provides additional insight into the company’s improved profitability, with adjusted EBITDA increasing from $63 million to $75 million year-over-year:
While free cash flow was negative in Q1 2025, the company expects significant improvement throughout the year, with full-year adjusted free cash flow projected at $170-$190 million:
NCR Voyix’s Q1 2025 results demonstrate the company’s ability to improve profitability metrics while navigating a complex business transformation. With platform sites growing significantly across segments and a shift toward recurring revenue, the company appears well-positioned to deliver on its full-year guidance despite near-term revenue challenges.
Full presentation:
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