NCR Voyix Corporation

08/05/2026 | Press release | Distributed by Public on 08/05/2026 05:32

Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ("MD&A")
The following discussion should be read in conjunction with the Condensed Consolidated Financial Statements and notes thereto included under Item 1. Financial Statements of this Quarterly Report and our Consolidated Financial Statements and notes thereto and related Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K").
Our discussion within MD&A is organized as follows:
•Overview. This section contains background information on the Company, a summary of significant events for the quarter, and information regarding strategic initiatives and trends in order to provide context for management's discussion and analysis of our financial condition and results of operations.
•Results of operations. This section contains an analysis of our results of operations presented in the accompanying condensed consolidated statements of income by comparing the results for the three and six months ended June 30, 2026 to the results for the three and six months ended June 30, 2025.
•Liquidity and capital resources. This section provides an analysis of our cash flows and a discussion of our contractual obligations at June 30, 2026.
OVERVIEW
EXECUTIVE OVERVIEW
NCR Voyix is a global platform-powered leader in unified commerce for shopping and dining, empowering our customers to deliver quality experiences to consumers through our cloud-based platform, microservices-based applications and comprehensive service offerings.
Completion of NCR Atleos Spin-Off Transaction
On October 16, 2023, the Company completed the spin-off ("Spin-Off") of its ATM-focused businesses, including our self-service banking, payments & network, and telecommunications and technology businesses, into an independent, publicly traded company, NCR Atleos. Accordingly, the historical financial results of NCR Atleos are reflected as discontinued operations in the Company's consolidated financial statements. Refer to Note 2, "Discontinued Operations", in the Notes to Consolidated Financial Statements in Item 1 of this Report, for additional information.
Sale of Digital Banking Business
On September 30, 2024, the Company completed the sale of its Digital Banking segment businesses (the "Digital Banking Sale") to an affiliate of The Veritas Capital Fund VIII, L.P. (the "Buyer"). The historical financial results of the Digital Banking segment businesses are reflected as discontinued operations in the Company's consolidated financial statements.
Transition of Hardware Business to ODM Model
In August 2024, the Company announced its entry into a commercial agreement with Ennoconn Corporation ("Ennoconn") to transition its self-checkout and point-of-sale hardware businesses to an outsourced design and manufacturing model, including the sale of certain assets relating to these businesses (the "Hardware Business Transition"). Under the terms of the agreement, Ennoconn designs, manufactures, warrants, supplies, and ships self-checkout and point-of-sale hardware directly to the Company's customers and the Company sells hardware to its customers as a sales agent for Ennoconn and continues to provide its point-of-sale and self-checkout software as well as key support and maintenance services. During the six months ended June 30, 2026, the Company sold inventory to Ennoconn as part of the Hardware Business Transition, and beginning on April 1, 2026, the Company began recording commission revenue from point-of-sale and self-checkout hardware sales as an agent for Ennoconn on a net basis, excluding the costs paid to Ennoconn.
Our Segments
Following the Spin-Off and Digital Banking Sale, we now manage and operate in two reportable segments: Retail and Restaurants.
•Retail - Our Retail segment serves enterprise and mid-market retailers primarily in the convenience, fuel & retail, grocery, drug & mass merchandise, and department & specialty retail industries. Our retail solutions, including software, services, payments, and hardware offerings, provide end-to-end connectivity within a customer's operations, including, point-of-sale ("POS"), self-checkout ("SCO"), inventory and supply chain management, fraud and loss prevention, loyalty and consumer engagement.
•Restaurants - Our Restaurants segment is focused on serving restaurants and food service establishments, including quick-service, table-service and fast casual restaurants of all sizes. Our restaurant solutions include, software, payments, hardware, installation, maintenance, and managed and professional services. These solutions are designed to help streamline order and transaction processing, increase consumer engagement, manage the supply chain, increase kitchen productivity and reduce operating costs.
Corporate and Other includes income and expenses related to corporate functions that are not specifically attributable to either of our two reportable segments, along with certain non-strategic businesses that are considered immaterial operating segment(s), as well as commercial agreements with NCR Atleos in the prior year.
FINANCIAL HIGHLIGHTS
The following were highlights for the second quarter of 2026:
•Recurring revenue increased 3% as compared to the prior year period and comprised 83% of total consolidated revenue
•Software and services revenue increased 1% compared to the prior year period and comprised 95% of total consolidated revenue
•Adjusted EBITDA increased 5% compared to the prior year period
STRATEGIC INITIATIVES AND TRENDS
Our strategy is to advance our position as the platform-powered leader in unified commerce for shopping and dining at a time when consumer expectations for seamless, personalized and frictionless experiences continue to rise across both retail and restaurant environments. Today's consumers expect to shop, order, pay and receive service effortlessly, whether online, in store, curbside or through mobile channels. They increasingly favor brands that deliver speed, consistency and convenience at every interaction. These heightened expectations have placed pressure on retailers and restaurants to modernize their operations and adopt technologies that can support real-time engagement and continuous innovation across digital and physical touchpoints. Guided by our mission to make the consumer experience seamless, we focus on delivering integrated, scalable solutions that enable restaurants and retailers to differentiate their brands and operate more efficiently in a rapidly evolving commerce landscape. By combining hardware, software, services and payments into a unified suite of offerings, we can deliver to customers an end-to-end value proposition that we believe is difficult to match. As the adoption of our platform and solutions accelerates, we expect to strengthen customer relationships, enhance recurring revenue streams and broaden monetization opportunities across our Voyix Commerce Platform. To achieve our goals, we are focused on: (i) delivering a modern suite of
Software-as-a-Service ("SaaS") solutions, (ii) expanding adoption of our integrated payment solutions, (iii) scaling our differentiated services offerings and (iv) investing in innovation to further expand our platform capabilities.
Macroeconomic Trends
Global Trade, Macroeconomic Environment
The U.S. and other global markets currently are experiencing increased volatility due to the effects of, among other things, recent changes in imposed or threatened tariffs and other trade policy changes by the U.S. and other countries, escalating geopolitical and civil conflicts, including, but not limited to, Eastern Europe and the Middle East, inflationary pressures, such as increasing prices for goods and services (including fuel), changing fiscal and/or monetary policies in the U.S. and elsewhere, and fluctuating currency exchange rates, elevated unemployment rates, global shortages of microchips and other technology components, primarily driven by the adoption of artificial intelligence technologies, and, in some locations around the world, decreased economic conditions that indicate the potential for near-term recessions or slowdowns.
Given our geographic presence and the multinational composition of our customer base, our business and financial performance could be impacted by the evolving global economic landscape. We are subject to a variety of risks posed by the current macroeconomic environment, and we are continuously monitoring the direct and indirect impacts of these circumstances. Economic pressures on retail and restaurant businesses and on consumers could negatively affect our revenue and profitability in future periods. In addition, U.S. foreign trade policy continues to evolve under the current presidential administration, including the announcement of a number of new tariffs subsequent to the U.S. Supreme Court's February 2026 decision to uphold a ruling that invalidated certain tariffs previously imposed. It is currently unknown if these tariffs will remain in place, be expanded or be removed, and we do not know whether foreign countries will adopt retaliatory trade policies in response to these new tariffs. The current trade policy environment is expected to continue to evolve, but we cannot anticipate the impact that these or other changes will have on our business and financial performance. As a result of these uncertainties, we may be impacted in the future within the markets in which we operate.
As we continue to execute on our strategy to shift to recurring revenue, our revenues and earnings will become more predictable; however, the broader implications of these macroeconomic events on our business, results of operations and overall financial position, particularly in the short term, remain uncertain.
For further discussion of trends, uncertainties and other factors that could affect our operating results, refer to Part I, Item 1A, "Risk Factors", contained in our 2025 Form 10-K and subsequent filings we make with the SEC.
Results from Operations
For the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025
Consolidated Results
The following tables show our results for the three and six months ended June 30, 2026 and 2025, respectively, the relative percentage that those amounts represent to revenue, and the change in those amounts year-over-year.
Three months ended June 30
Percentage of Revenue (1)
Increase (Decrease)
In millions 2026 2025 2026 2025 2026 vs 2025
Product revenue $ 27 $ 185 5.2 % 28.0 % (85) %
Service revenue 496 475 94.8 % 72.0 % 4 %
Total revenue 523 660 100.0 % 100.0 % (21) %
Product gross margin 6 16 22.2 % 8.6 % (63) %
Service gross margin 150 134 30.2 % 28.2 % 12 %
Total gross margin 156 150 29.8 % 22.7 % 4 %
Selling, general and administrative expenses 112 105 21.4 % 15.9 % 7 %
Research and development expenses 30 32 5.7 % 4.8 % (6) %
Total operating expenses 142 137 27.2 % 20.8 % 4 %
Income (loss) from operations $ 14 $ 13 2.7 % 2.0 % 8 %
Six months ended June 30
Percentage of Revenue (1)
Increase (Decrease)
In millions 2026 2025 2026 2025 2026 vs 2025
Product revenue $ 176 $ 337 15.6 % 26.5 % (48) %
Service revenue 953 935 84.4 % 73.5 % 2 %
Total revenue 1,129 1,272 100.0 % 100.0 % (11) %
Product gross margin 13 23 7.4 % 6.8 % (43) %
Service gross margin 273 261 28.6 % 27.9 % 5 %
Total gross margin 286 284 25.3 % 22.3 % 1 %
Selling, general and administrative expenses 222 220 19.7 % 17.3 % 1 %
Research and development expenses 69 72 6.1 % 5.7 % (4) %
Total operating expenses 291 292 25.8 % 23.0 % - %
Income (loss) from operations $ (5) $ (8) (0.4) % (0.6) % n/m
(1) The percentage of revenue is calculated for each line item divided by total revenue, except for product gross margin and service gross margin, which are divided by the related component of revenue.
Key Strategic Financial Metrics
The following tables show our key strategic financial metrics for the three and six months ended June 30, 2026 and 2025, respectively, the relative percentage that those amounts represent to total revenue, and the change in those amounts year-over-year.
Recurring revenue as a percentage of total revenue
Three months ended June 30 Percentage of Total Revenue Increase (Decrease)
2026 2025 2026 2025 2026 vs 2025
Recurring revenue(1)
$ 435 $ 421 83.2 % 63.8 % 3 %
All other products and services 88 239 16.8 % 36.2 % (63) %
Total Revenue $ 523 $ 660 100.0 % 100.0 % (21) %
Six months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 vs 2025
Recurring revenue (1)
$ 854 $ 825 75.6 % 64.9 % 4 %
All other products and services 275 447 24.4 % 35.1 % (38) %
Total Revenue $ 1,129 $ 1,272 100.0 % 100.0 % (11) %
(1) Recurring revenue includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, cloud revenue, payment processing revenue and certain professional services arrangements as well as term-based software license arrangements that include customer termination rights.
Revenue by type
Three months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 vs 2025
Software and services revenue $ 497 $ 493 95.0 % 74.7 % 1 %
Hardware-related revenue(2)
26 167 5.0 % 25.3 % (84) %
Total Revenue $ 523 $ 660 100.0 % 100.0 % (21) %
Six months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 vs 2025
Software and services revenue $ 969 $ 968 85.8 % 76.1 % - %
Hardware-related revenue(2)
160 304 14.2 % 23.9 % (47) %
Total Revenue $ 1,129 $ 1,272 100.0 % 100.0 % (11) %
(2) Hardware-related revenue includes hardware revenue and hardware commission revenue beginning in the second quarter of 2026.
Net income (loss) from continuing operations attributable to NCR Voyix and Adjusted EBITDA(3) as a percentage of total revenue
Three months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 vs 2025
Net income (loss) from continuing operations attributable to NCR Voyix $ (1) $ - (0.2) % - % n/m
Adjusted EBITDA $ 98 $ 93 18.7 % 14.1 % 5 %
Six months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 vs 2025
Net income (loss) from continuing operations attributable to NCR Voyix $ (3) $ (21) (0.3) % (1.7) % n/m
Adjusted EBITDA $ 176 $ 167 15.6 % 13.1 % 5 %
(3) Refer to our definition of Adjusted EBITDA in the section entitled "Non-GAAP Financial Measures and Use of Certain Terms."
Non-GAAP Financial Measures and Use of Certain Terms:
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") Our management uses the non-GAAP measure Adjusted EBITDA because it provides useful information to investors as an indicator of strength and performance of the Company's ongoing business operations, including funding discretionary spending such as capital expenditures, strategic acquisitions, and other investments. We determine Adjusted EBITDA based on GAAP net income (loss) from continuing operations attributable to NCR Voyix plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization (excluding acquisition-related amortization of intangibles); plus stock-based compensation expense; plus pension mark-to-market adjustments and other special items, including amortization of acquisition-related intangibles, acquisition-related costs, loss (gain) on disposal of businesses, loss (gain) on extinguishment of debt, separation-related costs, cyber ransomware incident recovery costs net of insurance recoveries, fraudulent ACH disbursements costs net of recoveries, foreign currency devaluation, transformation and restructuring charges (which includes integration, severance and other exit and disposal costs), strategic initiative costs and litigation costs, among others. The special items are considered non-operational or non-recurring in nature, so are excluded from the Adjusted EBITDA metric utilized by our chief operating decision maker in evaluating segment performance and are separately delineated to reconcile back to total reported income (loss) from continuing operations attributable to NCR Voyix. This format is useful to investors because it allows analysis and comparability of operating trends. It also includes the same information that is used by our management to make decisions regarding the segments and to assess our financial performance. Refer to the table below for the reconciliations of net income (loss) from continuing operations attributable to NCR Voyix (GAAP) to Adjusted EBITDA (non-GAAP).
Our definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP.
Three months ended June 30 Six months ended June 30
In millions 2026 2025 2026 2025
Net income (loss) from continuing operations attributable to NCR Voyix (GAAP) $ (1) $ - $ (3) $ (21)
Depreciation and amortization (excluding acquisition related amortization of intangibles) 47 51 93 101
Acquisition-related amortization of intangibles 6 6 13 12
Interest expense 15 14 30 29
Interest income (1) (1) (1) (7)
Income tax expense (benefit) (1) (4) (40) (11)
Stock-based compensation expense 11 9 19 18
Transformation and restructuring costs(1)
20 16 43 37
Strategic initiatives(2)
2 2 20 9
Litigation costs(3)
- - 2 -
Adjusted EBITDA (non-GAAP) $ 98 $ 93 $ 176 $ 167
(1)Represents integration, severance, and other exit and disposal costs which are considered non-operational in nature.
(2)Represents professional fees related to strategic initiatives which are considered non-operational in nature, as well as certain costs incurred related to the Hardware Business Transition.
(3)Represents costs related to certain litigation matters, reflecting the costs of the indemnity and associated legal fees, net of expected indemnity recoveries from NCR Atleos, as discussed in Note 9, "Commitments and Contingencies".
Adjusted free cash flow-unrestricted NCR Voyix management uses the non-GAAP measure called "adjusted free cash flow-unrestricted" to assess the financial performance of the Company. We define adjusted free cash flow-unrestricted as net cash provided by (used in) operating activities less capital expenditures for property, plant and equipment and capitalized software, plus/minus collections of previously sold trade receivables purchased from third parties, restricted cash settlement activity, cash activity related to environmental discontinued operations, collections on non-operating receivables related to inventory sold for the Hardware Business Transition, plus acquisition-related items, and pension contributions and settlements.
We believe adjusted free cash flow-unrestricted information is useful for investors because it relates the operating cash flows from the Company's operations to the capital that is spent to continue and improve business operations. In particular, adjusted free cash flow-unrestricted indicates the amount of cash available after capital expenditures for, among other things, investments in the Company's existing businesses, strategic acquisitions, and repayment of debt obligations. Adjusted free cash
flow does not represent the residual cash flow available for discretionary expenditures, since there may be other non-discretionary expenditures that are not deducted from the measure. Adjusted free cash flow-unrestricted does not have a uniform definition under GAAP, and therefore the Company's definition may differ from other companies' definitions of this measure. These non-GAAP measures should not be considered a substitute for, or superior to, cash flows from operating activities under GAAP.
Refer to the section titled "Financial Condition, Liquidity and Capital Resources" in Item 2 of this Form 10-Q for additional information.
Revenue
Three months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 vs 2025
Product revenue $ 27 $ 185 5.2 % 28.0 % (85) %
Service revenue 496 475 94.8 % 72.0 % 4 %
Total revenue $ 523 $ 660 100.0 % 100.0 % (21) %
Product revenue includes our hardware and software license revenue streams. Service revenue includes SaaS solutions, software maintenance, professional services, installation services, payment processing and hardware maintenance, as well as hardware commission revenue beginning in the second quarter of 2026.
For the three months ended June 30, 2026 compared to the three months ended June 30, 2025
Total revenue decreased 21% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Product revenue for the three months ended June 30, 2026 decreased 85% compared to the three months ended June 30, 2025 due to the Hardware Business Transition. Effective April 1, 2026, the Company transitioned from recognizing hardware revenue sales on a gross basis within Product revenue to recognizing net hardware commission revenue as an agent for Ennoconn, reported within Service revenue. Accordingly, the decrease in Product revenue primarily reflects the change in presentation resulting from the Hardware Business Transition. Service revenue for the three months ended June 30, 2026 increased 4% compared to the three months ended June 30, 2025 due to the net hardware commission revenue recognized in the second quarter of 2026 from the Hardware Business Transition, as previously discussed, as well as increases in payments processing revenue, hardware maintenance revenue and software maintenance revenue, offset by a decrease in SaaS solutions and non-recurring installation services revenues as compared to the prior year period. Recurring revenue increased 3% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily driven by payments processing, software license and hardware maintenance revenues.
Six months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 vs 2025
Product revenue $ 176 $ 337 15.6 % 26.5 % (48) %
Service revenue 953 935 84.4 % 73.5 % 2 %
Total revenue $ 1,129 $ 1,272 100.0 % 100.0 % (11) %
For the six months ended June 30, 2026 compared to the six months ended June 30, 2025
Total revenue decreased 11% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Product revenue for the six months ended June 30, 2026 decreased 48% compared to the six months ended June 30, 2025 due to the Hardware Business Transition. Effective April 1, 2026, the Company transitioned from recognizing hardware revenue sales on a gross basis within Product revenue to recognizing net hardware commission revenue as an agent for Ennoconn, reported within Service revenue. Accordingly, the decrease in Product revenue primarily reflects the change in presentation during the second quarter resulting from the Hardware Business Transition. Service revenue for the six months ended June 30, 2026 increased 2% compared to the six months ended June 30, 2025 due to the net hardware commission revenue recognized in the second quarter of 2026 from the Hardware Business Transition, as previously discussed, as well as increases in payments processing revenue, hardware maintenance revenue and software maintenance revenue, offset by a decrease in SaaS solutions and non-recurring installation services revenues as compared to the prior year period. Recurring revenue increased 4% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily driven by payments processing, hardware maintenance revenues and software license revenues.
Gross Margin
Three months ended June 30
Percentage of Revenue (1)
Increase (Decrease)
In millions 2026 2025 2026 2025 2026 v 2025
Product gross margin $ 6 $ 16 22.2 % 8.6 % (63) %
Service gross margin 150 134 30.2 % 28.2 % 12 %
Total gross margin $ 156 $ 150 29.8 % 22.7 % 4 %
(1) The percentage of revenue is calculated for each line item divided by the related component of revenue.
For the three months ended June 30, 2026 compared to the three months ended June 30, 2025
Gross margin as a percentage of revenue in the three months ended June 30, 2026 was 29.8% compared to 22.7% in the three months ended June 30, 2025. Product gross margin for the three months ended June 30, 2026 was impacted by the Company's Hardware Business Transition. Beginning April 1, 2026, the Company transitioned from recognizing hardware revenue sales on a gross basis within Product revenue to recognizing net commission revenue as an agent for Ennoconn within Service revenue. As a result, hardware revenue and the related cost of product revenue were largely excluded from Product gross margin in the 2026 period. The remaining Product gross margin benefited from an improved mix of higher-margin software license revenue compared to the prior-year period. Service gross margin increased due to hardware commission gross margin related to the Hardware Business Transition, as well as increases in hardware maintenance, professional services, software maintenance and payments processing gross margin, offset by declines in gross margin for SaaS solutions and installation services in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.
Six months ended June 30
Percentage of Revenue (1)
Increase (Decrease)
In millions 2026 2025 2026 2025 2026 v 2025
Product gross margin $ 13 $ 23 7.4 % 6.8 % (43) %
Service gross margin 273 261 28.6 % 27.9 % 5 %
Total gross margin $ 286 $ 284 25.3 % 22.3 % 1 %
For the six months ended June 30, 2026 compared to the six months ended June 30, 2025
Gross margin as a percentage of revenue in the six months ended June 30, 2026 was 25.3% compared to 22.3% in the six months ended June 30, 2025. Product gross margin for the six months ended June 30, 2026 was impacted by the Company's Hardware Business Transition. Beginning April 1, 2026, the Company transitioned from recognizing hardware revenue sales on a gross basis within Product revenue to recognizing net commission revenue as an agent for Ennoconn within Service revenue. As a result, hardware revenue and the related cost of product revenue were largely excluded from Product gross margin in the second quarter 2026 period. The remaining Product gross margin benefited from an improved mix of higher-margin software license revenue compared to the prior-year period. Also included in product gross margin were strategic initiative costs of $5 million for the six months ended June 30, 2026 compared to $2 million for the six months ended June 30, 2025. These one-time strategic initiative costs relate to expense incurred for the Hardware Business Transition. Service gross margin increased due to hardware commission gross margin related to the Hardware Business Transition, as well as improved margins for hardware maintenance, professional services, payments processing and software maintenance, offset by declines in gross margin for SaaS solutions and installation services in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
Selling, General and Administrative Expenses
Three months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 v 2025
Selling, general and administrative expenses $ 112 $ 105 21.4 % 15.9 % 7 %
For the three months ended June 30, 2026 compared to the three months ended June 30, 2025
Selling, general, and administrative expenses were $112 million in the three months ended June 30, 2026, compared to $105 million in the three months ended June 30, 2025. As a percentage of revenue, selling, general and administrative expenses were 21.4% and 15.9% in the three months ended June 30, 2026 and 2025, respectively. The increase in selling, general and administrative expenses for the three months ended June 30, 2026 compared to the prior year period is due to an increase in employee related costs during the current period, as well as the impact of the now terminated transition services agreement related to the Digital Banking Sale.
Six months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 vs 2025
Selling, general and administrative expenses $ 222 $ 220 19.7 % 17.3 % 1 %
For the six months ended June 30, 2026 compared to the six months ended June 30, 2025
Selling, general, and administrative expenses were $222 million compared to $220 million in the six months ended June 30, 2026 and 2025, respectively. As a percentage of revenue, selling, general and administrative expenses were 19.7% and 17.3% in the six months ended June 30, 2026 and 2025, respectively. The overall increase in selling, general and administrative expenses during the six months ended June 30, 2026 compared to the prior year period is related to an increase in employee related costs during the current period, as well as the impact of the now terminated transition services agreement related to the Digital Banking Sale.
Research and Development Expenses
Three months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 v 2025
Research and development expenses $ 30 $ 32 5.7 % 4.8 % (6) %
For the three months ended June 30, 2026 compared to the three months ended June 30, 2025
Research and development expenses were $30 million in the three months ended June 30, 2026, compared to $32 million in the three months ended June 30, 2025. As a percentage of revenue, research and development costs were 5.7% and 4.8% in the three months ended June 30, 2026 and 2025, respectively. Research and development expenses in the three months ended June 30, 2026 have decreased compared to the prior year period due to cost reduction initiatives implemented during the period, including the use of artificial intelligence as a software development tool.
Six months ended June 30 Percentage of Total Revenue Increase (Decrease)
In millions 2026 2025 2026 2025 2026 v 2025
Research and development expenses $ 69 $ 72 6.1 % 5.7 % (4) %
For the six months ended June 30, 2026 compared to the six months ended June 30, 2025
Research and development expenses were $69 million compared to $72 million in the six months ended June 30, 2026 and 2025, respectively. As a percentage of revenue, these costs were 6.1% and 5.7% in the six months ended June 30, 2026 and 2025, respectively. The overall decrease in research and development expenses in the six months ended June 30, 2026 compared to the prior year period is due to cost reduction initiatives implemented during the year, including the use of artificial intelligence as a software development tool.
Interest Expense
Three months ended June 30 Increase (Decrease)
In millions 2026 2025 2026 v 2025
Interest expense $ 15 $ 14 7 %
For the three months ended June 30, 2026 compared to the three months ended June 30, 2025
Interest expense was $15 million and $14 million for the three months ended June 30, 2026 and 2025, respectively. Interest expense is primarily related to our senior unsecured notes and borrowings under the Senior Secured Credit Facility.
Six months ended June 30 Increase (Decrease)
In millions 2026 2025 2026 v 2025
Interest expense $ 30 $ 29 3 %
For the six months ended June 30, 2026 compared to the six months ended June 30, 2025
Interest expense was $30 million compared to $29 million for the six months ended June 30, 2026 and 2025, respectively. Interest expense is primarily related to our senior unsecured notes and borrowings under the Senior Secured Credit Facility.
Other Income (Expense), net
Other income (expense), net was expense of $1 million and $3 million for the three months ended June 30, 2026 and 2025, respectively, and expense of $8 million and income of $5 million for the six months ended June 30, 2026 and 2025, respectively, with the components reflected in the following table:
Three months ended June 30 Six months ended June 30
In millions 2026 2025 2026 2025
Interest income $ 1 $ 1 $ 1 $ 7
Foreign currency fluctuations and foreign exchange contracts (1) (1) (1) (1)
Bank-related fees (1) (1) (2) (2)
Employee benefit plans (1) (1) (2) (2)
Other, net 1 (1) (4) 3
Other income (expense), net $ (1) $ (3) $ (8) $ 5
Included in Other, net for the three and six months ended June 30, 2026 are strategic initiative costs of $3 million and $15 million, respectively, related to the Hardware Business Transition. Additionally, included in Other, net for the three and six months ended June 30, 2026 is income related to the sale of IP addresses of $3 million and $6 million, respectively.
Income Taxes
Three months ended June 30 Six months ended June 30
In millions 2026 2025 2026 2025
Income tax expense (benefit) $ (1) $ (4) $ (40) $ (11)
For the three months ended June 30, 2026 compared to the three months ended June 30, 2025
Income tax provisions for interim (quarterly) periods are based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent, or unusual items. Income tax benefit from continuing operations was $1 million for the three months ended June 30, 2026 compared to an income tax benefit of $4 million for the three months ended June 30, 2025. The decrease in the income tax benefit was primarily driven by an unfavorable change in discrete tax expenses and benefits for the three months ended June 30, 2026 compared to the prior year.
For the six months ended June 30, 2026 compared to the six months ended June 30, 2025
Income tax benefit was $40 million for the six months ended June 30, 2026 compared to an income tax benefit of $11 million for the six months ended June 30, 2025. The increase in the income tax benefit was primarily driven by changes to the estimated full-year valuation allowance and withholding taxes, changes in the geographic earnings mix, and a higher loss from continuing operations before taxes for the six months ended June 30, 2026. These benefits were partially offset by an unfavorable change in discrete tax expenses and benefits for the six months ended June 30, 2026 compared to the prior year.
Income (Loss) from Discontinued Operations
Three months ended June 30 Six months ended June 30
In millions 2026 2025 2026 2025
Income (loss) from discontinued operations, net of tax $ 3 $ - $ - $ 4
For the three months ended June 30, 2026 compared to the three months ended June 30, 2025
The Company recognized income from discontinued operations, net of tax, of $3 million for the three months ended June 30, 2026, consisting of $1 million of income from discontinued operations related to the sale of the Japan Bank Technology Solutions business and $2 million of income from discontinued operations related to the Company's environmental remediation matters.
The Company recognized no income or loss from discontinued operations, net of tax, for the three months ended June 30, 2025, consisting of $1 million of income related to the sale of the Japan Bank Technology Solutions business and $1 million of loss from discontinued operations related to the Company's environmental remediation matters.
For the six months ended June 30, 2026 compared to the six months ended June 30, 2025
The Company recognized no income or loss from discontinued operations, net of tax, for the six months ended June 30, 2026, consisting of $1 million of loss from from discontinued operations related to the sale of the Japan Bank Technology Solutions business and $1 million of income from discontinued operations related to the Company's environmental remediation matters.
The Company recognized income from discontinued operations, net of tax, of $4 million for the six months ended June 30, 2025, consisting of $2 million of income related to the sale of the Japan Bank Technology Solutions business and $2 million of income from discontinued operations related to the Company's environmental remediation matters.
Refer to Note 2, "Discontinued Operations" of the Notes to Condensed Consolidated Financial Statements, for additional information.
Revenue and Adjusted EBITDA by Segment
The Company manages and reports its businesses in the following two segments: Retail and Restaurants. Segments are measured for profitability by the Company's chief operating decision maker based on revenue and segment Adjusted EBITDA. Refer to the section above entitled "Non-GAAP Financial Measures and Use of Certain Terms" for our definition of Adjusted EBITDA and the reconciliation of net income (loss) from continuing operations attributable to NCR Voyix (GAAP) to Adjusted EBITDA (non-GAAP).
Corporate and Other includes income and expenses related to corporate functions that are not specifically attributable to any of our two individual reportable segments along with certain non-strategic businesses that are considered immaterial operating segment(s) and commercial agreements with NCR Atleos.
The following tables show our segment revenue and Adjusted EBITDA for the three and six months ended June 30, the relative percentage that those amounts represent to segment revenue, and the change in those amounts year-over-year.
Three months ended June 30
Percentage of Revenue (1)
Increase (Decrease)
In millions 2026 2025 2026 2025 2026 v 2025
Revenue
Retail $ 365 $ 454 69.8 % 68.8 % (20) %
Restaurants 158 205 30.2 % 31.1 % (23) %
Total segment revenue $ 523 $ 659 100.0 % 99.9 % (21) %
Other - 1 - % 0.1 % (100) %
Total revenue $ 523 $ 660 100.0 % 100.0 % (21) %
Adjusted EBITDA by Segment
Retail $ 97 $ 81 26.6 % 17.8 % 20 %
Restaurants $ 58 $ 68 36.7 % 33.2 % (15) %
(1) The percentage of revenue is calculated for each line item divided by total revenue, except for Adjusted EBITDA, which are divided by the related component of revenue.
Six months ended June 30
Percentage of Revenue (1)
Increase (Decrease)
In millions 2026 2025 2026 2025 2026 v 2025
Revenue
Retail $ 792 $ 874 70.2 % 68.7 % (9) %
Restaurants 337 396 29.8 % 31.1 % (15) %
Total segment revenue $ 1,129 $ 1,270 100.0 % 99.8 % (11) %
Other - 2 - % 0.2 % (100) %
Total revenue $ 1,129 $ 1,272 100.0 % 100.0 % (11) %
Adjusted EBITDA by Segment
Retail $ 175 $ 146 22.1 % 16.7 % 20 %
Restaurants $ 112 $ 127 33.2 % 32.1 % (12) %
(1) The percentage of revenue is calculated for each line item divided by total revenue, except for Adjusted EBITDA, which are divided by the related component of revenue.
Segment Revenue
For the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025
Retail revenue decreased 20% and 9% for the three and six months ended June 30, 2026, respectively, compared to the prior year periods. The decrease in revenue was primarily attributable to the Company's Hardware Business Transition. As previously disclosed, effective April 1, 2026, the Company transitioned from recognizing hardware sales on a gross basis to recognizing net commission revenue as an agent for Ennoconn. The decrease in revenue was also due to a decline in non-recurring installation service revenues, offset by an increase in payment processing, software license, software maintenance, hardware maintenance and professional services revenues. Retail recurring revenue grew by 6% when comparing both the three and six months ended June 30, 2026 to the three and six months ended June 30, 2025.
Restaurants revenue decreased 23% and 15% for the three and six months ended June 30, 2026, respectively, compared to the prior year periods. The decrease in revenue was primarily attributable to the Company's Hardware Business Transition. As previously disclosed, effective April 1, 2026, the Company transitioned from recognizing hardware sales on a gross basis to recognizing net commission revenue as an agent for Ennoconn. The decrease in revenue was also due to a decline in SaaS solutions, software license, software maintenance and non-recurring installation service revenues. These decreases in revenue were partially offset by an increase in hardware maintenance and payment processing revenues, as well as the new net hardware
commission revenue recognized in the second quarter of 2026. Restaurants recurring revenue was flat when comparing the six months ended June 30, 2026 to the six months ended June 30, 2025.
Segment Adjusted EBITDA
For the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025
Retail Adjusted EBITDA increased 20% for both the three and six months ended June 30, 2026 compared to the prior year periods, mainly due to a favorable software revenue mix and the Company's cost reduction initiatives implemented during the year.
Restaurants Adjusted EBITDA decreased 15% and 12% for the three and six months ended June 30, 2026, respectively, compared to the prior year periods, due to the decrease in revenue, as discussed above.
Financial Condition, Liquidity and Capital Resources
Our primary liquidity needs in the ordinary course of business are: (i) normal operating expenses; (ii) interest and principal requirements of our outstanding indebtedness; (iii) capital expenditures and lease payments; (iv) remediation payments related to environmental matters; (v) pension and postemployment plan contributions; and (vi) transformation and restructuring initiatives. We believe these needs will be satisfied in both the short and long term based on our current cash position, cash flows generated by our operations, and existing financing arrangements.
As of June 30, 2026, our cash and cash equivalents totaled $237 million and our total debt was $1.1 billion. Our borrowing capacity under our senior secured credit facilities was $474 million as of June 30, 2026. Our ability to generate positive cash flows from operations is dependent on general economic conditions, and the competitive environment in our industry, and is subject to business and other risk factors, including as detailed in our filings with the SEC. If we are unable to generate sufficient cash flows from operations, or otherwise comply with the terms of our credit facilities, we may be required to seek additional financing alternatives.
The following table summarizes our cash flows from operating activities, investing activities and financing activities for both of the six months ended June 30, 2026 and 2025. The Consolidated Statements of Cash Flows include the results of continuing and discontinued operations.
Six months ended June 30
In millions 2026 2025
Net cash provided by (used in) operating activities $ 59 $ (284)
Net cash provided by (used in) investing activities (9) (75)
Net cash provided by (used in) financing activities (39) (86)
Operating Activities Cash provided by operating activities was $59 million in the six months ended June 30, 2026, compared to cash used in operating activities of $284 million in the six months ended June 30, 2025. The increase in cash provided by operating activities was driven by the payment of taxes related to the Digital Banking Sale of $284 million during the three months ended June 30, 2025, as well as movement in the net working capital accounts.
Capital Expenditures and Other Investing Activities Our principal capital expenditures are for software (purchased and internally developed) and additions to property and equipment. We invested approximately $77 million and $81 million in capital expenditures during the six months ended June 30, 2026 and 2025, respectively. We expect to continue investing in property and equipment, purchased software and internally developed software to support our business. Additionally, $67 million of cash was collected on the non-operating receivables with Ennoconn from the Hardware Business Transition during the six months ended June 30, 2026.
Financing Activities Cash used in financing activities was $39 million in the six months ended June 30, 2026, compared to cash used in financing activities of $86 million in the six months ended June 30, 2025. During the six months ended June 30, 2026, the Company repurchased $20 million under our share repurchase program, compared to $69 million in the six months ended June 30, 2025. Additional financing activities included dividends paid on the Series A preferred stock, proceeds from employee stock plans as well as payments made for share repurchases and tax withholding payments on behalf of employees for stock based awards that vested. Financing activities also includes borrowings and repayments under our senior secured credit facilities as well as our unsecured senior notes.
Net cash provided by or used in operating activities of discontinued operations related to the Japan bank technology solutions business was cash provided by operating activities of $1 million and $5 million for the six months ended June 30, 2026 and 2025, respectively. Net cash provided by or used in operating activities of discontinued operations related to environmental obligations was cash used in operating activities of $7 million and $11 million for the six months ended June 30, 2026 and 2025, respectively.
Adjusted free cash flow NCR Voyix management uses a non-GAAP measure called "adjusted free cash flow-unrestricted" to assess the financial performance of the Company. We define adjusted free cash flow-unrestricted within the section titled "Non-GAAP Financial Measures and Use of Certain Terms" in Item 2 of this Form 10-Q. The table below reconciles net cash provided by operating activities to NCR Voyix's non-GAAP measure of adjusted free cash flow-unrestricted for the six months ended June 30, 2026:
In millions
Six months ended June 30, 2026
Net cash provided by (used in) operating activities (GAAP) $ 59
Capital expenditures (77)
Restricted cash settlement activity (6)
Pension contributions 5
Collections on purchased trade receivables 1
Cash activity related to environmental discontinued operations 7
Collections on non-operating receivables 67
Adjusted free cash flow-unrestricted (non-GAAP) $ 56
Long Term Borrowings The senior secured credit facilities include a term loan facility in an initial aggregate principal amount of $200 million, of which the Company repaid in full as of June 30, 2026. Additionally, the senior secured credit facilities include a five-year revolving credit facility with an aggregate principal amount of $500 million, of which zero was outstanding as of June 30, 2026. The revolving credit facility also contains a sub-facility to be used for letters of credit, and as of June 30, 2026, there were $26 million letters of credit outstanding.
As of June 30, 2026, we had outstanding $650 million aggregate principal balance of 5.000% senior unsecured notes due in 2028, $403 million in aggregate principal balance of 5.125% senior unsecured notes due in 2029 and $52 million in aggregate principal balance of 5.250% senior unsecured notes due in 2030.
Refer to Note 5, "Debt Obligations", of the Notes to Condensed Consolidated Financial Statements, for additional information regarding debt transactions.
Employee Benefit Plans In 2026, we expect to make contributions of $12 million to our international pension plans and $23 million to our postemployment plan. For additional information, refer to Note 8, "Employee Benefit Plans", of the Notes to Condensed Consolidated Financial Statements.
Series A Convertible Preferred Stock As of June 30, 2026, the redemption value of the Series A Preferred Stock was approximately $207 million. Holders of Series A Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5% per annum, payable quarterly in arrears. Beginning in the first quarter of 2020, dividends are payable in cash or in-kind at the option of the Company. During the three months ended June 30, 2026 and 2025, the Company paid cash dividends of $3 million and $4 million, respectively.
Prior to the close of business on October 17, 2023, the Series A Convertible Preferred Stock was convertible at the option of the holders at any time into shares of common stock at a conversion price of $30.00 per share, or a conversion rate of 33.333 shares of common stock per share of Series A Convertible Preferred Stock. As a result of the Spin-Off, the conversion rate of the Series A Convertible Preferred Stock was adjusted pursuant to its terms to 57.5601 shares of common stock per share of Series A Convertible Preferred Stock. As of June 30, 2026, the maximum number of common shares that could be required to be issued upon conversion of the outstanding shares of the Series A Convertible Preferred Stock was 11.9 million shares, which would represent approximately 10% of our outstanding common stock as of June 30, 2026, including the preferred shares on an as-converted basis.
Cash and Cash Equivalents Held by Foreign Subsidiaries Cash and cash equivalents held by the Company's foreign subsidiaries at June 30, 2026 and December 31, 2025 were $115 million and $120 million, respectively. Under current tax laws and regulations, if cash and cash equivalents and short-term investments held outside the U.S. are distributed to the U.S. in the form of dividends or otherwise, we may be subject to additional U.S. income taxes and foreign withholding taxes, which could be significant.
Summary As of June 30, 2026, our cash and cash equivalents totaled $237 million and our total debt was $1.1 billion, excluding deferred fees. As of June 30, 2026, our borrowing capacity under the revolving credit facility was approximately $474 million. Our ability to generate positive cash flows from operations is dependent on general economic conditions, the competitive environment in our industry, and is subject to the business and other risk factors described in Item 1A of Part I of the Company's 2025 Annual Report on Form 10-K and Item 1A of Part II of this Quarterly Report on Form 10-Q (as applicable). If we are unable to generate sufficient cash flows from operations, or otherwise comply with the terms of our credit facilities, we may be required to seek additional financing alternatives.
We believe that we have sufficient liquidity based on our current cash position and existing financing to meet our expected pension, postemployment, and postretirement plan contributions, remediation payments related to environmental matters, debt servicing obligations, payments related to separation, transformation and restructuring initiatives, and in the long-term (i.e., beyond June 30, 2027) to meet our material cash requirements.
Material Cash Requirements from Contractual and Other Obligations
There have been no significant changes in our contractual and other commercial obligations as described in our Form 10-K for the year ended December 31, 2025.
Critical Accounting Policies and Estimates
Critical accounting policies are those that are most important to the portrayal of our financial position and results of operations. These policies require highly subjective or complex judgments, often employing the use of estimates about the effect of matters that are inherently uncertain. Our most critical accounting estimates pertain to revenue recognition, inventory valuation, goodwill and intangible assets, pension, postretirement and postemployment benefits, environmental and legal contingencies, and income taxes, which are described in Item 7 of our 2025 Form 10-K.
New Accounting Pronouncements
See discussion in Note 1, "Basis of Presentation and Summary of Significant Accounting Policies", of the Notes to Condensed Consolidated Financial Statements for new accounting pronouncements.
Forward-Looking Statements
This Quarterly Report on Form 10-Q (this "Quarterly Report") contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking statements may appear throughout this Quarterly Report and can generally be identified by words such as "expect," "target," "anticipates," "outlook," "guidance," "intend," "plan," "believe," "will," "should," "would," "potential," "forecast," "proposed," "planned," "objective," "estimate," "expected," "likely," "could," "may," and similar expressions referencing future events, conditions or circumstances. We intend for these forward-looking statements to be covered by the safe harbor provisions contained in the Act that are applicable to forward-looking statements. Examples of forward-looking statements include, without limitation, the Company's plans, strategies, projections, future financial or operational results, events, trends, and economic and other future conditions. Forward-looking statements in this Quarterly Report include, without limitation, statements regarding: the Company's plans, strategies, projections, future financial or operational results, events, trends, and economic and other future conditions; the Company's plans, strategies, or objectives for future operations and offerings, including the Company's suite of microservices-based applications, and its Voyix Commerce Platform; the expected benefits resulting from the Hardware Business Transition; the estimated or anticipated future results and benefits of the Company's plans and operations; the expected timing for the closing of the Japan bank technology solutions sale; the Company's expectations of demand for its solutions and service offerings; and statements regarding the Company's ability to deliver increased value to customers and stockholders. Forward-looking statements are based solely on management's current beliefs, expectations and assumptions, whether express or implied, regarding the future, which may prove to be inaccurate. Actual results could differ materially from expectations expressed or implied by such forward-looking statements due to a number of factors, such as the risks and uncertainties, including, but not limited to, the following: our ability to successfully execute our growth strategy; our ability to successfully
develop new solutions that achieve market acceptance and keep pace with technological developments; our ability to maintain a consistently high level of customer service; our ability to achieve some or all of the expected benefits of our cost reduction initiatives; the success of our strategic relationships with third parties and our ability to integrate with third-party applications and software; risks related to tariffs, sanctions and trade barriers, and the related impact on macroeconomic conditions; the availability or applicability of tariff and duty exemptions to our products; the failure of our past or future acquisitions, divestitures and other strategic transactions to produce the anticipated results; potential indemnification obligations to NCR Atleos or a refusal of NCR Atleos to indemnify us pursuant to agreements executed in the spin-off; our ability to protect our systems and data from cybersecurity threats (including artificial intelligence) or other technological risks; risks related to evolving global laws and regulations relating to data privacy, data protection and information security; our ability to protect our intellectual property; extensive competition in our markets; disruptions in our data center hosting and public cloud facilities; risks related to defects, errors, installation difficulties or development delays; the failure of our artificial intelligence capabilities to operate as anticipated; our ability to maintain and update our information technology systems; changes in U.S. or foreign trade policies and domestic and global economic and credit conditions; risks related to geopolitical or armed conflicts in a region where we operate; our ability to retain key employees, or to recruit, develop and retain qualified employees; the inability of third party suppliers to fulfill our needs; risks related to our level of indebtedness; our ability to continue to access or renew financing sources and obtain capital; our failure to maintain effective internal control over financial reporting; and other factors included in "Item 1A-Risk Factors" of our most recent Annual Report on Form 10-K and in other documents that we file with the U.S. Securities and Exchange Commission ("SEC"), which we advise you to review.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and should not be relied upon as representing our plans and expectations as of any subsequent date. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
NCR Voyix Corporation published this content on August 05, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 05, 2026 at 11:32 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]