NCR Voyix Q2 2025 slides: platform growth drives margin expansion, EPS turns positive

Introduction & Market Context

NCR Voyix (NYSE:VYX) released its Q2 2025 earnings presentation on August 7, 2025, revealing strong platform adoption and improved profitability metrics despite mixed revenue performance. The company, which completed the spin-off of NCR Atleos Corporation in October 2023 and sold its Digital Banking segment in September 2024, continues to focus on its core restaurant and retail segments.

The presentation comes after a strong Q1 performance that exceeded analyst expectations, with the stock trading at $13.26 as of August 6, 2025, significantly higher than the $9.47 level reported after the Q1 earnings release.

Quarterly Performance Highlights

NCR Voyix reported notable growth across several key performance indicators for Q2 2025, including a 16% increase in platform sites, 3% growth in payment sites, and 5% growth in annual recurring revenue (ARR). The company also added over 250 new customers during the quarter.

Revenue for the quarter totaled $666 million, with software contributing $167 million, services $258 million, and hardware $241 million. While total revenue showed some pressure compared to the $722 million reported in Q2 2024, the company’s strategic shift toward recurring revenue streams showed positive results.

As shown in the following chart of quarterly performance metrics, recurring revenue increased 4% year-over-year to $406 million, representing a growing portion of total revenue:

Profitability metrics showed significant improvement, with adjusted EBITDA increasing 20% year-over-year to $95 million, resulting in an adjusted EBITDA margin of 14.3%, up from 10.9% in the same period last year. Non-GAAP diluted earnings per share turned positive at $0.19, compared to $(0.02) in Q2 2024, marking an important milestone in the company’s financial performance.

Segment Analysis

The Restaurants segment, a core business for NCR Voyix, demonstrated steady growth with platform sites increasing 4%, payment sites up 1%, and ARR growing 3%. The segment added over 200 new customers during the quarter.

Revenue in the Restaurants segment was relatively stable, with software revenue of $47 million, services revenue of $69 million, and hardware revenue of $89 million. The segment’s profitability improved significantly, with adjusted EBITDA margin expanding to 33.2% from 30.8% in the prior year.

The following chart illustrates the Restaurants segment’s performance metrics:

The Retail segment showed even stronger platform adoption, with platform sites surging 25% and payment sites increasing 13%. ARR grew 6%, and the segment added over 45 new customers during the quarter.

Revenue in the Retail segment showed a mixed picture with software revenue of $120 million (down from $174 million in Q2 2024), services revenue of $186 million (slightly down from $187 million), and hardware revenue of $148 million (down from $156 million). Despite the revenue pressure, the segment’s adjusted EBITDA margin improved to 17.8% from 16.8% in the prior year.

The Retail segment’s performance is illustrated in the following chart:

Financial Position and Outlook

NCR Voyix maintained a solid financial position with total debt of $1,105 million and cash and cash equivalents of $276 million, resulting in net debt of $829 million. The company’s adjusted net leverage ratio stood at 1.9x, indicating a manageable debt level relative to its earnings potential.

The debt maturity profile is well-structured, with no significant maturities until 2028, as shown in the following chart:

For the full year 2025, NCR Voyix provided guidance that aligns with its strategic focus on profitability and recurring revenue growth. The company expects total revenue between $2,575 million and $2,650 million, with software and services revenue accounting for $1,995 million to $2,020 million of that total.

Adjusted EBITDA is projected to be between $420 million and $445 million, representing a margin improvement over 2024. Non-GAAP diluted EPS is expected to be in the range of $0.75 to $0.80, with adjusted free cash flow-unrestricted between $170 million and $190 million.

The company’s full-year outlook is summarized in the following table:

Forward-Looking Statements

NCR Voyix’s Q2 2025 results demonstrate the company’s successful execution of its strategy to grow platform adoption and shift toward recurring revenue streams. The significant improvements in profitability metrics, particularly the 20% growth in adjusted EBITDA and the positive turn in non-GAAP EPS, highlight the effectiveness of this approach.

The strong growth in platform sites across both segments, especially the 25% increase in retail platform sites, indicates that the company’s technology solutions are gaining traction in the market. This platform growth, combined with the steady increase in payment sites, positions NCR Voyix well for future recurring revenue expansion.

While there are some pressures on top-line revenue, particularly in the software category within the Retail segment, the company’s focus on margin expansion and recurring revenue appears to be yielding positive results. The year-to-date performance follows similar trends, with platform sites up 16%, payment sites up 3%, and ARR growing 5% across the company.

As NCR Voyix continues to execute its strategy of platform-powered growth, investors will likely focus on the company’s ability to maintain the positive momentum in profitability metrics while accelerating revenue growth in future quarters.

Full presentation:

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