NCR Atleos Reports $980 Million Revenue in Q1 2025, Net Income Turnaround to $17 Million

NCR Atleos Corporation reported a total revenue of $980 million for the first quarter of 2025, a decrease of 7% compared to $1.05 billion in the same period last year. The decline was primarily attributed to a reduction in revenues from commercial agreements with NCR Voyix Corporation, as well as a shift from one-time ATM hardware sales to recurring ATM as a Service (ATMaaS) solutions. Product revenue fell by 21% to $189 million, while service revenue decreased by 2% to $791 million. The company also noted a negative impact of 2% from foreign exchange fluctuations on its revenue.

In terms of profitability, NCR Atleos achieved a net income of $17 million, a significant turnaround from a net loss of $8 million in the prior year. This improvement was driven by a 33% increase in income from operations, which rose to $96 million, and a reduction in interest expenses from $79 million to $67 million. The company’s gross margin increased to 24% from 21% year-over-year, reflecting cost mitigation efforts and a favorable mix of higher-margin software and services revenue.

Strategically, NCR Atleos is focusing on expanding its ATMaaS offerings and enhancing its software capabilities. The company reported an increase in annualized recurring revenue to $1.606 billion, with ATMaaS units growing to 29,100 from 20,800. The company is also pursuing opportunities for geographic expansion and customer acquisition, aiming to leverage its leadership in self-service banking and ATM networks.

Operationally, NCR Atleos has seen a slight decrease in its workforce, with employee headcount remaining stable at approximately 5,000. The company continues to manage its debt effectively, with total debt standing at $2.968 billion as of March 31, 2025. The company has a borrowing capacity of $336 million under its senior secured credit facility, which provides liquidity for ongoing operations and strategic initiatives.

Looking ahead, NCR Atleos anticipates continued challenges from macroeconomic pressures, including rising interest rates and foreign currency fluctuations. The company is committed to navigating these challenges while focusing on its strategic initiatives to drive growth and enhance shareholder value. Management expects to maintain a strong cash flow position, supported by its transition to a recurring revenue model, which is expected to provide stability in the face of market volatility.