NCR Voyix Corp. 10-Q Summary: Quarter Ended June 30, 2026
Business Context and Reporting Period
This filing covers the quarterly period ended June 30, 2026. NCR Voyix operates as a global platform-powered leader in unified commerce for shopping and dining, reporting through two primary segments: Retail and Restaurants. The company has completed the spin-off of NCR Atleos (2023) and the sale of its Digital Banking segment (2024), both reported as discontinued operations. A significant operational shift occurred on April 1, 2026, with the transition of its hardware business to an outsourced design and manufacturing (ODM) model with Ennoconn Corporation, changing revenue recognition from gross to net commission basis.
Key Financial Metrics
| Metric (in millions) | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|
| Total Revenue | $523 | $660 | $1,129 | $1,272 |
| Recurring Revenue | $435 | $421 | $854 | $825 |
| Operating Income (Loss) | $14 | $13 | $(5) | $(8) |
| Net Income (Loss) - Continuing Ops | $(1) | $(0) | $(3) | $(21) |
| Net Income (Loss) - Total | $2 | $(0) | $(3) | $(17) |
| Adjusted EBITDA | $98 | $93 | $176 | $167 |
| Cash from Operations (6M) | $59 | $(284) | $59 | $(284) |
| Total Debt | $1,101 | $1,100 | $1,101 | $1,100 |
| Cash & Equivalents | $237 | $276 | $237 | $276 |
Material Changes vs. Prior Period
- Revenue Decline: Total revenue decreased 21% in Q2 and 11% for the six months ended June 30, 2026, compared to the prior year. This is primarily due to the Hardware Business Transition, where hardware sales shifted from gross product revenue to net commission service revenue starting April 1, 2026.
- Product vs. Service Mix: Product revenue plummeted 85% in Q2 ($27M vs $185M) due to the accounting change, while Service revenue increased 4% ($496M vs $475M) as it now includes hardware commissions.
- Profitability: Operating income improved slightly to $14M in Q2 from $13M in Q2 2025. Adjusted EBITDA increased 5% year-over-year to $98M in Q2, driven by cost reduction initiatives and a favorable software revenue mix.
- Cash Flow: Operating cash flow turned positive ($59M for 6M 2026) compared to a significant outflow ($284M for 6M 2025), largely due to a one-time tax payment of $284M related to the Digital Banking Sale in the prior year period.
Guidance, Outlook, and Risks
- Strategic Outlook: Management expects to strengthen recurring revenue streams and broaden monetization through the Voyix Commerce Platform. The company aims to deliver a modern suite of SaaS solutions and expand integrated payment solutions.
- Discontinued Operations: The company signed an agreement to sell its Japan bank technology solutions business for approximately $32M, expected to close by the end of 2026. Results are reported as discontinued operations.
- Legal and Environmental Contingencies:
- Deferred Compensation Litigation: A settlement of $48M was reached in April 2026 regarding a class action lawsuit; NCR Atleos is contributing 50% ($24M).
- Environmental Remediation: The reserve for the Kalamazoo River matter stands at $99M (net of expected contributions). The Fox River remediation obligations are complete, though final reconciliation with indemnitors is pending.
- Risks: Key risks include macroeconomic volatility, geopolitical conflicts, supply chain challenges, and the impact of tariffs. The company also faces risks related to the successful execution of the hardware transition and integration of AI tools.
Investor Verification Checklist
- Hardware Transition Impact: Verify the long-term margin impact of shifting from gross hardware sales to net commission revenue with Ennoconn.
- Recurring Revenue Quality: Confirm the sustainability of the 3% recurring revenue growth amidst the overall revenue decline.
- Environmental Reserves: Monitor the Kalamazoo River reserve ($99M) for potential increases as remediation phases progress and indemnity recoveries from AT&T/Nokia are finalized.
- Debt Covenants: Review compliance with the Senior Secured Credit Facility leverage ratio (max 4.25:1) given the current debt load of $1.1B.
- Share Repurchases: Note the remaining $280M repurchase authority and the company's commitment to returning capital despite current GAAP losses.