NCR Voyix Second Quarter 2026 Earnings Call - Recurring Revenue Hits 83% as VCP Adoption Accelerates and AI Slashes Deployment Costs

Carly, Conference Operator: 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 Voyix 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 1 on your telephone keypad. If you would like to withdraw your question, press star 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.

Sarah Jane Snyder, Vice President of Investor Relations, NCR Voyix Corporation: 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 30th, 2026. A copy of the earnings release that we will reference during this call is available on the investor relations section of our website, which can be found at www.ncrvoyix.com, and has been filed with the SEC. With me on the call today are James Kelly, our Chief Executive Officer, Nick East, our Chief Product Officer, Darren Wilson, President, Retail and Payments, Benny Tadele, President, Restaurants, and Brian Webb-Walsh, our Chief Financial Officer. This call is being recorded and the webcast is available on the investor relations section of our website. Before we begin, please be advised that remarks today will contain forward-looking statements.

These forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For additional information on these factors, please refer to our earnings release and our other reports filed with the SEC. We caution you not to place undue reliance on these statements. Forward-looking statements during this call speak only as of the date of this call, and we undertake no obligation to update them. In addition, we will be discussing or providing certain non-GAAP financial measures today, which we believe will provide additional clarity regarding our ongoing performance.

For a full reconciliation of the non-GAAP financial measures discussed in this call to the most comparable GAAP measure in accordance with SEC regulations, please see our press release furnished as an exhibit to our Form 8-K filed this morning and our supplemental materials available on the investor relations section of our website. With that, I would now like to turn the call over to Jim. Jim?

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Good morning, and thank you for joining us. For the second quarter, revenue increased 1%, adjusting for the ODM transaction. Recurring revenue increased 3%, and Adjusted EBITDA increased 5% compared to the prior year. These results reflect continued progress across the business, driven by the commercial actions we took last year to strengthen our installed base, combined with continued growth in software services and payments. We are seeing improved operating performance while building momentum behind our Voyix Commerce Platform. Our product portfolio is now modernized, creating an integrated cloud-native software, payments, and services offering that resonates with customers. We now have 10 of the 25 signed VCP customers live across more than 2,000 lanes and expect another 1,000 lanes live in production by the end of September. Customer engagement continues to strengthen. Increasingly, conversations are centered on enterprise-wide platform transformation rather than individual products.

Customers are looking for solutions that simplify operations, improve security, and provide greater speed and flexibility. We believe our integrated platform is well-positioned to meet those needs. Enterprise technology decisions take time. Customers typically move through phases with demonstrations, customer labs, and finally, commercial agreements. Given the scale of replacing a point-of-sale environment that has often been in place for decades, the timeline of this process can vary based upon the size and complexity of the customer. Execution doesn’t end with a signed contract. Accelerating deployments while reducing implementation cost remains another top priority. During the quarter, we completed our first fully remote Voyix POS installation with a large European grocery retailer in roughly half the time of a traditional deployment. We expect to reduce remote installation time to less than one hour per store, lowering cost for our customers while significantly increasing our deployment capacity.

Nick will discuss how automation and AI are helping us scale even further. In summary, we continue to make solid progress across our strategic priorities, increasing customer adoption, expanding recurring revenue, and positioning NCR Voyix for sustainable long-term growth. With that, I will turn the call over to Nick.

Nick East, Chief Product Officer, NCR Voyix Corporation: Thanks, Jim. Earlier this year, we reached an important milestone with the successful launch of our embedded Voyix Commerce Platform application portfolio. Our focus has shifted from building the core VCP applications for each of our industry verticals to scaling customer adoption through targeted innovation and the rapid delivery of customer-specific capabilities. Since mid-2025, we have signed 25 VCP contracts, reflecting strong demand from both existing and new customers. We also have 16 active customer labs across seven countries, where customers are evaluating our VCP applications as they progress toward commercial agreements. Development of Aloha Next remains on schedule and is expected to begin initial pilots by year-end. Our store-in-a-box solution for small and mid-market restaurants will be available for customer labs by the end of the third quarter, followed by pilots in the first quarter of next year.

These milestones further expand our deployment pipeline and support future recurring software revenue growth. For existing customers, AI agents dramatically simplify software upgrades to the VCP by analyzing existing environments and seamlessly migrating configurations, application settings, and operational data to the platform. The result is faster deployments, lower implementation costs, greater consistency, and a highly scalable migration model. After deployment, those same AI agents continue optimizing customer environments, delivering ongoing operational value. Beyond deployments, our innovation strategy is increasingly centered on intelligent automation and agentic AI. At the next show coming this October, we’ll participate in a fireside discussion with one of the industry’s largest fuel retailers on how AI and next-generation commerce technologies are reshaping convenience retail and the future of commerce. The event will also showcase the latest innovations across the VCP.

We first introduced these AI features at the NRA show in May, demonstrating how computer vision can monitor inventory in real time and automatically trigger actions across point of sale, digital ordering, and marketing systems. Since then, we’ve expanded these capabilities into retail while extending AI across inventory management, supply chain operations, merchandising, and back-office workflows. Our industry is evolving beyond systems that simply record transactions. Customers increasingly expect software that understands what’s happening across their business, recommends actions, and executes them autonomously. Our role is to help retailers and restaurants automate their operations, make informed decisions, operate more efficiently, and improve performance across the enterprise to delight their customers. With that, I’ll turn the call over to Darren.

Darren Wilson, President, Retail and Payments, NCR Voyix Corporation: Thanks, Nick. Our retail business signed more than 40 new customers during the quarter, primarily in the mid-market. Platform and payment sites increased 8% and 13% respectively, while recurring revenue grew 6%, driven by 15% growth in recurring software revenue. In the U.S., we recently signed a Voyix supply chain agreement with LC Foods, extending our grocery and CFR capabilities into food distribution. This win demonstrates the versatility of our VCP applications and further expands our reach into this large adjacent market. As interest from food and beverage distributors continues to build, we are focused on converting that momentum into additional sales. In Europe, we signed a recurring services agreement in Germany with a leading reverse vending provider, further diversifying our service business. In Latin America, we signed a Voyix POS agreement with a large home improvement retailer in Colombia and Chile, further expanding our platform footprint in the region.

In Australia, we secured a large equipment refresh across approximately 350 stores for an existing grocery customer. Following the ODM transaction, we continue to support the hardware needs of our customers. Turning to payments. This quarter, we continued executing our gateway strategy, converting customers in the U.S. and Latin America to Voyix Connect at market pricing. As certifications continue, we expect to expand this strategy across Canada, Europe, and Asia Pacific. Additionally, we signed a new agreement with Voyager to expand fleet card acceptance through Voyix Connect. We now have direct integrations with Voyager, Corpay, and WEX, strengthening our convenience and fuel offering. With that, I turn the call over to Benny.

Benny Tadele, President, Restaurants, NCR Voyix Corporation: Thanks, Darren. In the second quarter, our restaurant business signed over 100 new customers. Platform size increased 12% and payment size decreased 1%. Enterprise and mid-market recurring revenue increased 6%, driven by 9% growth in services revenue and 3% growth in software revenue when excluding last year’s Nemcor Brazil divestiture. Offsetting the performance of our mid-market and enterprise business was a continued softness in SMB. Market interest in Aloha Next continues to build. During the quarter, we signed an agreement with Pizza Ranch, making them the first new enterprise customer to adopt Aloha Next. The agreement includes Aloha Next and Voyix Pay across more than 200 locations. Winning in one of the industry’s most operationally demanding restaurant segments continues to validate the market-leading technology and related benefits of our cloud-native platform.

Internationally, we signed an agreement with one of the largest restaurant operators in Asia Pacific to modernize its Aloha point-of-sale environment and centralize data management across multiple countries and brands. This established a foundation for future adoption of Aloha Next while expanding our footprint across the region. The National Restaurant Association show marked the formal launch of Aloha Next, our modernized restaurant application. Customer reaction was very positive, generating strong engagement that continues to translate into active customer labs and a growing pipeline. Finally, our services business continues to strengthen our revenue base.

This quarter, we renewed our relationship with a leading global coffee chain and secured a new engagement with a major global QSR brand to support their technology in the U.S. and Canada. Together, these wins reinforce our position as a trusted partner for many of North America’s largest restaurant operators. With that, I’ll turn the call over to Brian.

Brian Webb-Walsh, Chief Financial Officer, NCR Voyix Corporation: Thank you, Benny. Good morning. For the quarter, total revenue decreased 21% to $523 million, reflecting the transition of the hardware business at the end of Q1. Excluding this impact, total revenue increased 1%, driven by recurring revenue growth of 3%. Within recurring revenue, software increased 6% and services increased 1%, supported by actions taken last year to correct efficiencies and legacy agreements, in addition to our payments initiatives and new product sales. Platform sites increased 10% to 85,000, and payment sites increased 2% to 8,500. Importantly, our platform site metric primarily represents legacy point-of-sale applications tied to subscription contracts. Beginning in 2027, we’ll provide updated site metrics that reflect the sale of our modernized point-of-sale and related solutions. This, along with our remaining contract value, will be more indicative of future financial performance.

Adjusted EBITDA of $98 million increased 5%, driven by revenue growth coupled with our cost actions. Adjusted EBITDA margin expanded 460 basis points to 18.7%, reflective of the hardware transition, revenue growth, and efficiency actions. Excluding the hardware impact, adjusted EBITDA margin expanded 80 basis points. Non-GAAP EPS of $0.17 per share was flat year-over-year due to a higher tax rate, as the prior year period benefited from a one-time tax benefit. GAAP EPS was a loss of $0.03 per share in the quarter, primarily due to restructuring and transformation, in addition to stock-based compensation and amortization of intangibles. In the second quarter, we signed four mid-market contracts for our embedded VCP applications, bringing our total customers to 25. Our VCP contracts represent $286 million of remaining contract value, up 65% year-over-year.

Turning to our segment results, reported retail revenue decreased 20% to $365 million, which reflects the hardware transition. Excluding this impact, retail revenue increased 4%, driven by 6% growth in recurring revenue from VCP application sales and payments pricing initiatives. Retail adjusted EBITDA increased 20% to $97 million, driven by revenue growth coupled with our cost initiatives. Adjusted EBITDA margin increased 880 basis points year-over-year to 26.6% due to a combination of the hardware transition, revenue growth, and our efficiency actions. Excluding the hardware impact, retail margin increased 350 basis points. Turning to restaurants, reported revenue declined 23% to $158 million, reflective of the hardware transition. Excluding this impact, restaurant revenue declined $10 million or 6% in the quarter. The decline was driven by lower than anticipated hardware installations as customers have delayed refreshes, likely into next year, declines in SMB, and the divestiture in Brazil.

We expect the SMB trend to moderate as we launch our store-in-a-box solution, which Nick outlined in his remarks. Restaurant adjusted EBITDA decreased 15% to $58 million, driven by lower revenue and mix. Adjusted EBITDA margin was 36.7%, an increase of 350 basis points year-over-year due to the hardware transition. Excluding this impact, restaurant margin decreased 380 basis points. Lastly, corporate expenses were $57 million for the quarter, and we expect this to remain relatively consistent for the balance of the year. As a reminder, in the third quarter of 2025, corporate expenses benefited from the completion of the Atleos and Condescent transition service agreements, resulting in lower prior year expenses. Adjusted free cash flow was $56 million for the quarter before restructuring. This quarter benefited from working capital improvements, including cash inflows related to the hardware transition.

Restructuring outflows of $30 million were lower than expected due to a delayed $24 million payment for litigation, which was subsequently paid in July. We invested $41 million in capital expenditures and continue to expect our CapEx for the year to be similar to 2025. We repurchased approximately $11 million of common shares during the quarter. We ended the quarter with a net leverage position of 2x based on our net debt as of June 30th and the last 12 months adjusted EBITDA. Turning to our full year 2026 outlook. We are maintaining the guidance we provided in May and expect revenue to be between $2.188 billion and $2.303 billion, and adjusted EBITDA to be between $432 million and $447 million, with adjusted EPS between $0.89 and $0.92. I’ll now turn the call over to the operator for Q&A.

Carly, Conference Operator: At this time, if you would like to ask a question, press star followed by the number one on your telephone keypad. We’ll pause for a moment to compile the Q&A roster. Your first question is from Kartik Mehta with Northcoast Research.

Kartik Mehta, Analyst, Northcoast Research: Hey, good morning. Jim, last quarter you said you had, I think, 22 wins for the VCP. I’m wondering, as you talk to customers, are you seeing the adoption accelerate? Just what you’re seeing or hearing from your customers as regards to their desire to adopt the new platform.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Good morning, Kartik. Thank you. Actually, I was at dinner last night with Darren and Benny and Nick with a customer. I think I saw six customers last week, all of which are either already in a pilot or one of them is a pilot. The rest of them are coming here to see the new CEC that we’ve talked about before. I would say the feedback across all the customers I’ve seen, which is well over 100, are very excited about the fact that NCR has this new application based on their existing infrastructure, not having to change a point of sale since we’re essentially giving them the same one, just modernized, and not having to retrain their staff and all the other stuff that we’ve said in the past has been very positive.

I think they recognize, though, for restaurants, we only launched it officially in May, January for retail. While we did have some sales early last year, kind of pre-sales of the product, these are very large enterprise organizations. Many of them are multinational, you’re dealing with organizations spread around the world. My expectation is we’ll continue to see that number move up. I don’t know that this is the RCV. I don’t know that it’ll ever be completely linear. It’s not a revenue growth. This is selling multi-year contracts to existing customers. Even on the new side, if you just do a count of customers, over 20% of what we’ve signed to date reflects new relationships for the company. I think we feel as positive as ever in the trajectory and the acceptance of the product.

Recognizing that in some of the markets, like we are, I think now at 2,000 lanes predominantly in grocery. CFR Restaurant, we just sold a supply chain, which was the first one, which is a segment we’ve never talked about before, but we have a pretty significant place in supply chain as well. This is still early days, and I’m extremely optimistic about the trajectory where we’re going.

Kartik Mehta, Analyst, Northcoast Research: Hey, Jim, I think Nick talked about this too, which is using AI and automation for installs. Does that, in the future, quicken booking to revenue because you’re able to install these so much quicker?

James Kelly, Chief Executive Officer, NCR Voyix Corporation: I’ll let Nick cover. As I said in my comments, as did Nick, I think that’s a big differentiator for the future, which is using agents to be able to read the legacy and for existing customers and install, I’ll let him give you more color.

Nick East, Chief Product Officer, NCR Voyix Corporation: Kartik, the rate at which you can get a customer live after adoption, either migrated from our existing software or moving to as a net new customer moving to our platform, really depends on the customer size and complexity. We talked about store-in-a-box, restaurant-in-a-box. At the bottom end of the market, the idea is that we get them installed immediately. You ship it out, you unbox it’s pre-configured, and you’re up and running straight away. The gap between bookings and then driving the go live is virtually zero. For the really large, complex multinational customers, there’s a project to do, and that’s where we’ve been working really hard on AI agents to do exactly what you say. Imagine you’ve got a customer with a complicated menu catalog, a whole set of pricing and promotion.

What AI agents are helping us to do with our migration blueprint tools is analyze the existing, create the capability to automate the configuration over to the new platform. That’s part of it. What we’ve also been able to do this quarter is also accelerate deployment through remote installation, even in some of the most complex environments. I think it’s also surprised the IT teams of our largest customers, that we can convert, for example, a very large grocery store from the old to the new in a couple of hours overnight without a single person on site. I think the combination of AI tools and some of the automation we’ve built into the platform means that we are definitely accelerating the rate at which customers can go live.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Yeah. The way I would describe it, Kartik, simplistically for me, I’m not as sophisticated in this as Nick, is just like when you get a new iPhone out of the box. You put one against the other, and it transfers all the existing information over to the new. We’re able to do that even with an on-prem application. For the cloud applications that we already have, we’ve already perfected that process. It’s important to the customers because the way it’s been done historically takes a long period of time and a lot of resources. This is short on resources, and it’s going to be a lot less expensive for them. I mean, it’ll be profitable for us because it’s predominantly a software application.

I think that’s part of the pitch to the customers as well, as they come in, and they say, "What’s the effort to be able to move it over?" I think the last thing is, as you know, the contracts we’re signing are multi-year contracts. These are traditional subscription. It’s different what the company has done historically, which more is a, as they open a store, it drives revenue. That’s no longer the model for the company.

Kartik Mehta, Analyst, Northcoast Research: Perfect. Thank you both. I appreciate it.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Thanks, Kartik.

Carly, Conference Operator: Your next question comes from Mayank Tandon with Needham & Company.

Brandon, Analyst, Needham & Company: Hi, guys. This is Brandon on for Mayank. Thanks for taking my question. To kind of build off the last question, I’m just wondering if you can talk about the overall visibility in the guide as you enter the back half of the year, taking into account the macro, as well as the new product ramps in RCV.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Yeah. I think as you follow the company, our install base, half of it is services. These are, today, multi-year contracts. Visibility is generally pretty strong relative to the primary drivers, which is software and services today. Payments is a much smaller piece, at least currently. Since hardware is not being reported, that’s been historically the area that’s very lumpy. It still has an impact. I think it did this quarter for restaurants, delayed purchases. There’s some impact to us, I guess, relative to economy. Generally, as we said in the guidance, that we are maintaining the guidance we gave at the beginning of the year.

Brandon, Analyst, Needham & Company: Okay, thanks. I was wondering if you can talk about the demand for the new platform. I know it’s early, but in terms of verticals, are you seeing anything different on the go-to-market side, versus restaurant and retail, and SME and enterprise? Thanks.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Yeah, I’ll let some of the other guys add to this. Just coming back to what I said earlier, traditionally, I think we talk about grocery and CFR predominantly, the company has, and I guess restaurant, but we have other verticals that have not been getting any attention in the past. As a result of our Project F1, where we’ve modernized those primary applications, we’ve modernized the entire suite of what the company’s owned over the years. That’s one of the reasons, as I mentioned, we just had a press release out, I believe we did, for supply chain. That’s a vertical we’ve not spoken on these calls yet, or we will have a release out. I think the strength of each of the verticals look very good, as I mentioned earlier.

I don’t know, Darren, do you want to add to that?

Darren Wilson, President, Retail and Payments, NCR Voyix Corporation: Yeah, sure. I think we’re seeing consistent demand across the verticals. As I put in my prepared remarks, we signed more than 40 customers in the mid-market, spanning all the verticals, kind of referenced all our core focal area, adding on supply chain, as Jim said. Equally, as also announced, we’re starting to get that traction on payments as well with the Voyix Connect signings that are referenced. Good, healthy trends across all our existing customers, but also new logos, as Jim touched on with the 20% of the business being from new logos. Yeah, good go-to-market traction. We’re very focused on demoing the new product, both at shows but also through our customer experience centers around the world. That is receiving very positive feedback. Pass over to Benny.

Benny Tadele, President, Restaurants, NCR Voyix Corporation: Yeah. On the restaurant side, I would describe the market as cautiously optimistic. I think the pressure on cost, like Jim described, continues for them. There’s a lot of focus on bottom-line improvement and efficiencies. Traffic largely back, is what we’re seeing, but at the same time, consumer spend is still stretched. You hear from restaurants, costs on food, on even insurance and energy, things like that. It’s doing a couple of things for us. As you look at the mid-market and enterprise segment, that is now a very heavy focus on ROI buying journey. Not necessarily a spending freeze, but what does create return on investment from efficiency on the operation side, AI, automation, ease of training and onboarding of resources, augmentation resources.

On that side, what we see is maybe a tad longer of a buying journey as the buying committee have more scrutiny on what returns the best for their investment. It aligns very well with our value proposition on Aloha Next and the wider platform strategy. In fact, since we launched Aloha Next at NRA, I feel very encouraged by the momentum we’re seeing. Similar to what Darren described, we’ve had a number of demos that I talked about in the prepared remarks. We have a number of labs going on, and in some, having contractual discussions. Also on track to go live at the end of this year. All of that is very encouraging, in terms of what we’re seeing in the market.

On the SMB end of the market, it’s a very different buying journey, a very cost sensitive and economic sensitive, as well as simplicity of deployment and in management of the solution. Hence, why we’re bringing the Aloha Next restaurant-in-a-box solution to really align with that segment’s buying behavior as well as operational behavior. As we launch that, I feel very good about that as well.

Nick East, Chief Product Officer, NCR Voyix Corporation: I’ll maybe add one thing, Brandon. If I look across retail and restaurants, there’s some very specific customer conversations we’ve had recently. Exactly what Darren and Benny have both said. The advantage we have with customers who have both retail and restaurants, there are a lot of them, right? There’s a real convergence, particularly in the convenience market, between food offerings and convenience. What they’re looking to do under this sort of slightly pressurized consumer market is reduce cost and find synergies, also find ways of driving revenue up and loyalty and value for each of those customers up.

One of the things there, in fact, we had a customer last week who was so interested in our ability to do that across the new platform, because the technology stack allows us to combine our retail and restaurant operations and drive synergy, that they’re flying here tomorrow to delve into that so that we can drive that cost synergy for them, but also be able to do more cross-sell and upsell. I think there are some, you often say there’s some compression in the market, there’s also opportunity to help use technology to drive down cost and drive up customer value, and we’re getting a lot of interest from customers in that market to do that.

Brian Webb-Walsh, Chief Financial Officer, NCR Voyix Corporation: All right. Thanks, guys. That’s super helpful.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Thank you.

Carly, Conference Operator: Your next question is from Matt Summerville with D.A. Davidson.

Matt Summerville, Analyst, D.A. Davidson: Thanks. Just 2 questions. I know you touched on RCV. I want to double back to that. How should we expect RCV, that metric, to play out from here? We saw a year-on-year deceleration in Q2 relative to the growth you saw in Q1. We saw a little bit of a sequential decline. What conclusions should we be drawing from this newer metric you’re providing? How should that metric evolve from here?

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Yeah. The metric will grow over time. As I mentioned earlier, it’s not completely linear. If I sign 4 customers that are relatively small, compared to some of the largest customers that we’ve already signed, then the number either stagnates or, in this case, goes down because RCV also represents his revenue. That’s the earnings that are going to start coming into the company because they start immediately on signing of the contract. That has a natural tendency to decline. It goes up by signing additional contracts. It represents less than maybe 6% of our installed base. It’s still in its infancy. I don’t know that you can expect, I’d like to expect. I know you can expect every quarter it’s going to go up sequentially the exact same way. These are very large organizations.

They’re multinational, most of them, or at least a large segment of them. The conversations are early. I think as this year progresses and into next year, those numbers will continue to rise. At the same time, there’s a downward pressure because that represents the revenue that we will start recording, the software part of the revenue. It does not include the services, it does not include payments, obviously does not include hardware sales. This is just isolating software under long-term, multi-year contracts. I have no doubt you’ll continue to see it move up. I just don’t know every single quarter it’ll be linear or it’ll be a compare that makes logical sense, because if you think about it, these are specific companies that are moving to this contract, to these for our existing base, moving to these new applications.

As I mentioned earlier as well, Matt, we’ve got, I think 20% of what we’ve signed thus far in terms of customers are new to NCR entirely.

Matt Summerville, Analyst, D.A. Davidson: Got it. As a follow-up, how should we be thinking about the remaining sort of revenue and EBITDA cadence across the two businesses in Q3, in Q4? I say that in the sense that I know there’s some timing on product launches, et cetera. How does the rest of the year play out in the businesses? Thank you.

Brian Webb-Walsh, Chief Financial Officer, NCR Voyix Corporation: Matt, it’s Brian. What I would say is that, obviously in my prepared remarks, we’re maintaining the guidance for the year-end revenue, -2% to 3%. That implies sequential improvement in Q3 and Q4. Q4 is from a seasonal perspective, it’s usually our strongest quarter, we continue to see it that way. We’d expect contribution from both segments, sequentially to see improvements. On EBITDA, same thing, EBITDA maintaining the 3% to 7% growth. We operated in the first half in line with that. We see consistent performance in the second half growth-wise, which implies, again, sequential improvement in Adjusted EBITDA and in margins, and we would see that contribution across both segments.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Matt, just to add to what Brian said, as more of our customers convert to the new application, there’s obviously additional value to us, because there’s some cost savings and enhancements through the product to our customers. We’d anticipate as well the margins going into next year will continue to improve as a result. I’d also mention that the conversations around payments have all been very constructive as well. While we, I think for all our SME restaurants and many of the small retail, we provide almost 100% penetration on for new customers with payments. Even for the large enterprise that have signed up or in the process of signing up for the new application, payments is front and center. Our expectation, my expectation is a very high percentage of those customers will begin using us for payments.

Matt Summerville, Analyst, D.A. Davidson: Appreciate the color. Thank you.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Yep. Thanks Matt.

Carly, Conference Operator: Your next question is from Jack Evans with Goldman Sachs.

Jack Evans, Analyst, Goldman Sachs: Hey, guys. Congratulations on the results. Just a couple of quick ones. Of course, we’ve been spending a lot of time with the higher memory cost, taking a look at the hardware environment. Brian, I appreciate the comments on the push out. Any color you could provide on how that’s impacting broader discussions with current customers and future customers, and where that may be impacting the P&L in the near term and the confidence that you guys have in kind of seeing that rebalance in 2027?

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Go ahead.

Brian Webb-Walsh, Chief Financial Officer, NCR Voyix Corporation: Yeah. If I look at the quarter, in Q2, hardware was relatively flat, down a little bit, on a net basis.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: We did see the pressure that we talked about on the install revenue inside of the restaurant business. We are seeing a little bit of cautiousness on project work from customers and a little bit on hardware, as the memory chip cost is an issue for customers. As we’ve said before, that’s a $20 million-$30 million issue for us that we’re passing on through price. We do see a little bit of pullback because of that. We think the balance of the year into next year, we probably stay pretty consistent to the operating environment we’re currently in. Yeah, they can delay only generally for so long. At some point they have to refresh. Either parts aren’t available or the product is no longer available to continue in its current form.

I would expect, while we’ve seen some delays, and that’s one of the things that Benny highlighted, I’m expecting that’ll get itself sorted out.

Nick East, Chief Product Officer, NCR Voyix Corporation: Yeah. I’d make one other comment. When we look at the software side of the business, what we are able to do, the hardware that has life in it still and the customer wants to be able to push out their refresh cycle, our new platform is able to leverage and sweat those assets. We’ve done quite a lot of work to make sure they’re not forced to an upgrade. For example, there’s sort of a well-known cycle where a new upgrade to Microsoft Windows as an operating system on a point of sale or a self-checkout device requires an upgrade to a newer chipset. With our new platform, we’ll be able to avoid that, so we can keep the customer current, keep them secure, without them having to upgrade an asset that still has life.

I think the swings and roundabouts to that, customers are looking for sweating their assets. The customers who are looking to sweat their assets a little bit longer, we have a software solution for them, that means they’re adopting the software faster. That price pressure can be quite positive to accelerate the software discussion for us.

Jack Evans, Analyst, Goldman Sachs: Got it. That makes a lot of sense. Seems like there’s a lot of flexibility, which is good to hear. I guess in terms of the second question, any color you could provide on the competitive environment? Extending that question, also into kind of the go-to-market as well. It seems like you guys have signed several distribution partnerships. Seems like those seem to be working out well. Any color on both competitive environment and kind of the updated distribution strategy, particularly with the recent launch of VCP?

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Yeah. Sorry. I don’t know that there’s been any significant change relative to the competitors. I would say, back to my earlier comment, when I meet with customers, that is not really the discussion, especially since changing out a point of sale is difficult, and changing to somebody else is even more difficult. I’m not finding that as any more or necessarily less than what we’ve seen over the last year. We still see RFPs. I would say the restaurant side probably sees a little bit more than we see on the retail side. Just the number of players that are trying to move into enterprise space. For SME, obviously, you know that well, that’s a very competitive space and puts pressure on where we are. Connor, do you have any?

Darren Wilson, President, Retail and Payments, NCR Voyix Corporation: No, to echo that, no significant change through the year, and nothing on the sites either in terms of significant changes. What we’ve certainly seen from the shows we’ve been to recently is an incredible interest in our platform solution, and VCP, as you outlined. The story, the modernization, the demos, the labs are all proof points, the 20% of new logos are all proof points of the story, the message, the solution is really starting to resonate and win as a differentiator. We can’t be complacent, of course. We’re continuing to gear up on proactively sharing the continued development of the product solution, the reference clients and proof points of as we’re rolling out the expanded lanes and sites. It goes really in terms of the competitive environment.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: I’m going to add one more piece. I would tell a story of a customer that was just in last week. I went to dinner with them. It’s kind of the routine. We have dinner the night before they come in, and they spend pretty much the entire day here talking about, especially if it’s an existing customer, you talk about their existing applications, and then we go and show them a demo of the new one. This customer I had not seen. It was in the DSR space. They had not seen the product yet. I would say at dinner, I think they were fairly skeptical that they were going to see something that much different. I would say halfway through the demonstration, the CIO stopped the conversation and said he’s never seen anything like this, and he’s ready to move forward on this and on payments.

I think the competition is always going to be out in any of the spaces we are, but I think we have something clearly differentiating for us, but I think it’s also differentiating the architecture of how it’s designed from cloud to edge and microservices. The speed at which this product enables customers to make changes, plus, as Nick was saying, saves them a bunch of money on Microsoft and other cost of running their stores. I think we’re in a really good position. It’s still early days. We’re talking about the first six months of launching this product, so we’re very optimistic about the future.

Jack Evans, Analyst, Goldman Sachs: Great. Thank you. Really appreciate you taking the questions.

Darren Wilson, President, Retail and Payments, NCR Voyix Corporation: Thank you.

Carly, Conference Operator: Your next question is from Parker Lane with Stifel.

Jack McShane, Analyst, Stifel: Yeah. Hi, this is Jack McShane on for Parker. Thanks for taking the questions today.

Yeah.

My first question is on the restaurant side of the house. Last quarter it seemed like you were calling out SMB as more of the key headwind. This quarter it seems to be a little bit more focused on macro and consumer traffic in the quarter. How much do you feel like is in your control, which I would presume would be the SMB portion, versus out of your control, which would be the macro?

Benny Tadele, President, Restaurants, NCR Voyix Corporation: I’ll get started. Thank you, Jack. If you stand back and look at the macroeconomics, I described a couple of trends, right? First of all, there is definitely continued pressure on the bottom line of restaurants. Last year, this year, there is pressure on labor costs, food costs, like I said, even insurance and energy costs are coming up. They are feeling the cost pressure, no doubt about that. I don’t see that as having a spend freeze for restaurant technology spend. Particularly when you think about Aloha Next and the platform strategy that’s coming to market, it actually aligns to the buying desire right now. In fact, there’s a study that was out earlier this year that indicated, most CIOs, about 50%, are looking to increase spend in technology, but aligned very specifically to improved efficiency, improved operational simplification, AI, automation, data and insights.

A data-driven operational management. All of these things quite nicely align with what we’re bringing to market and, hence, why I’m very encouraged with the momentum that we’re seeing with our conversations since the launch of Aloha Next. In that dynamics, that is in our control. The buying committees, like I said, more scrutinous. The buying cycles could be a tad longer, but it really is resonating, and I believe that is, to a large extent, the buying habits are in our control. The second dynamic though is the SMB segment that you talked about. The buying habits of that specific segment is very price oriented and simplification of deployment and management, and rolling out the solution for SMB specifically is going to help us address, and that’s why we’re focused on that. Maybe the third one, you’re right.

In this quarter, we talked about the deferred refreshment installment, which is largely on the one-time side of our revenue mix, not on the recurring, not on the software side, but these are store refresh, hardware upgrades and things like that. We will see some deferment. That’s what we’ve seen this quarter. That would have been impacted by macroeconomic, but largely on the recurring revenue on the software and the launch of Aloha Next, we feel pretty good about.

Jack McShane, Analyst, Stifel: Great. Yeah, thank you. That was very helpful. I wanted to ask Brian, just for an update on the non-recurring share of the business. You’ve been taking portions off the income statement for some time now. In a pretty material way with hardware, you guys have been talking about moving more and more services to recurring models. Can you just give us an update on what remains in the business that’s non-recurring, and the level of urgency to get any sort of non-recurring business out of the model? Thank you.

Brian Webb-Walsh, Chief Financial Officer, NCR Voyix Corporation: Yep. Thanks for the question. The really good news is 83% of our revenue was recurring in Q2. It’s a significant improvement with the new hardware model. We do have 17% that’s still non-recurring, and that’s going to be one-time install work that’s project-based within services. That will still stay there and be a revenue source over time. In software, we have a couple one-time streams. One-time software licenses, which has gotten a lot smaller. It’s going to be down probably close to $20 million this year. That’s been coming down over the last five years as the company shifted to subscription. That will eventually go to zero. We have one-time professional services that will become recurring and over time come down. There may be still a little bit of that, but it should come down from where it is today.

We will still have some one-time revenue in the model, but we can improve on that 83% as we get into the next year and the year beyond, with some of those dynamics.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Just to add to that, everything that we’re signing now are a different structure of contract. It’s a multi-year fixed agreement with CPI or CPI plus in each one of them. What you see today in the company is kind of an amalgamation of what was at one point one-time licenses for software maintenance, and then a lot of professional services, probably about a quarter of our revenue represents what’s called professional services, which is software, updates or changes that the customers are asking for the on-prem application. Over time, that’s all going to atrophy, and what it’s going to be replaced with is the Voyix Commerce Platform applications. As people want to enhance that, it has the ability for us to do the upgrades, or it has extensions where they can actually do it themselves.

Benny Tadele, President, Restaurants, NCR Voyix Corporation: It’ll move in a different direction, but again, we’re really early in the cycle. The percentage that Brian mentioned, that will continue to move up, but it’s not going to move up materially early. It’s going to take some time.

Jack McShane, Analyst, Stifel: Great. Thanks, guys.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Yep. Thank you.

Carly, Conference Operator: Your final question is from Matt Inglis with RBC.

Matthew Inglis, Analyst, RBC: Hey, good morning. This is Matthew Inglis on for Dan at RBC. You mentioned an expansion of the gateway strategy in Canada, Europe, and APAC. How should we think about that timeline and just the size of that opportunity? Can you remind us of the uplift in the economics of those international payment volumes, once converted?

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Yeah. Thank you. The gateway is the same as we talk about here for the U.S., the Voyix Connect, I’m sorry, is what we call it. Today, it processes or runs through it $800 billion in volume domestically. As we move to the Voyix Commerce Platform, which is obviously cloud, the connection point will be Voyix Connect in all markets that we’re in. From that entry point, we will connect to third parties, local acquiring companies, some of which, I mean, and Darren may have worked at in the past, but whatever’s best for the local market. It will represent a new revenue source for us that we don’t currently enjoy in the existing base, but it’s going to apply to the new applications. It’s not being retrofitted to the legacy. None of this is looking backwards.

It’s all looking forward because the effort, the cost to retrofit to legacy applications, honestly, it’s not worth it to the customers today or us. Going forward, we want better control and security around connecting to our platform, so it’s all going to go through Connect.

Matthew Inglis, Analyst, RBC: Got it. Thanks. What’s the timeline for expanding into those new regions?

James Kelly, Chief Executive Officer, NCR Voyix Corporation: The timeline also correlates with when the customers sign up, as they sign up in those markets and they ultimately get past pilot and go live. You could say 2027 for Europe and Asia. It’s already live for, obviously, the U.S. and Latin America. They’re working on standing it up in Europe and Japan and Southeast Asia next year.

Matthew Inglis, Analyst, RBC: Excellent. Thank you very much.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: Thank you.

Carly, Conference Operator: There are no further questions at this time. I will now turn the call back to James Kelly for any closing remarks.

James Kelly, Chief Executive Officer, NCR Voyix Corporation: All right. Thank you, operator, and thank you all for your continued interest in NCR Voyix.

Carly, Conference Operator: Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect.