NCR Voyix Q2 2026 Earnings Call Transcript

On Wednesday, NCR Voyix (NYSE: VYX ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. This content is powered APIs. For comprehensive financial data and transcripts, visit The full earnings call is available at Summary NCR Voyix reported a 1% increase in revenue and a 5% rise in adjusted EBITDA for Q2 2026, highlighting growth in recurring revenue and software services.

The company continues to make progress with its Voyix Commerce Platform, with 10 of 25 signed customers live and significant interest in its AI-driven automation and deployment capabilities. , Europe, Latin America, and Asia Pacific, and is seeing strong adoption of its Voyix Connect payment solutions. Despite a 21% decline in total revenue due to the hardware business transition, the company maintained its full-year guidance for revenue and adjusted EBITDA, anticipating sequential improvement in the latter half of the year.

Management expressed optimism about the long-term growth prospects and the strategic shift towards a cloud-native software platform, emphasizing the importance of its AI and automation capabilities in differentiating its offerings. Full Transcript Carli, Operator Thank you for standing by. My name is Carli 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, please simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one 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 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 30, 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 and have been filed with the SEC. With me on the call today are Jim 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 Kelly, Chief Executive Officer 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, EVP, Chief Product Officer 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 11X remains on schedule and is expected to begin initial pilots by year end. Our store-in-a-box solutions 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 NACS 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 that delights their customers.

With that, I'll turn the call over to Darren. Darren Wilson, President, Retail and Payments 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.

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. Finally, 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. S. and Latin America to Voyix Connect at market pricing. Our 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 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 noncore 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. 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 Thank you, Benny, and 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 will 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. 7% reflective of the hardware transition, revenue growth, and efficiency actions.

Excluding the hardware impact, adjusted EBITDA margin expanded 80 basis points. 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. 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.

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 the Box solution, which Nick outlined in his remarks. Restaurant adjusted EBITDA decreased 15% to $58 million driven by lower revenue and mix. 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 Alios and Condescension 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. 92. I'll now turn the call over to the operator for Q&A. Carli, 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 at Northcoast Research Hey, good morning, Jim. Last quarter you said you had, I think, 22 wins for the VC platform.