NCR Voyix Corp. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 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 continues to execute a strategic shift away from banking and hardware manufacturing, highlighted by the completed spin-off of NCR Atleos (2023), the sale of its Digital Banking segment (2024), and an ongoing transition of its hardware business to an outsourced design and manufacturing (ODM) model with Ennoconn.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $606 million | $612 million |
| Recurring Revenue | $419 million (69% of total) | $404 million (66% of total) |
| Net Income (Loss) from Continuing Ops | $(2) million | $(21) million |
| Net Income (Loss) Attributable to Common Stockholders | $(8) million | $(21) million |
| Adjusted EBITDA | $78 million | $74 million |
| Operating Cash Flow | $42 million | $(42) million |
| Cash and Cash Equivalents | $232 million | $573 million |
| Total Debt | $1.1 billion | $1.1 billion |
| Adjusted Free Cash Flow (Unrestricted) | $30 million | N/A |
Material Changes vs. Prior Period
- Revenue: Total revenue declined 1% year-over-year. Product revenue fell 2% due to lower self-checkout (SCO) and POS hardware sales, while service revenue decreased 1% due to lower non-recurring installation and SaaS revenues, partially offset by growth in payments processing and maintenance.
- Profitability: Net loss from continuing operations improved significantly from $(21) million to $(2) million, driven by a higher income tax benefit ($39 million vs. $7 million) and cost reduction initiatives. Adjusted EBITDA increased 5% to $78 million.
- Cash Flow: Operating cash flow swung from a $(42) million outflow in Q1 2025 to a $42 million inflow in Q1 2026, primarily due to favorable movements in net working capital accounts.
- Segment Performance: Retail revenue grew 2% with Adjusted EBITDA up 20%. Conversely, Restaurants revenue declined 6% with Adjusted EBITDA down 8%.
- Discontinued Operations: The company reported a $(3) million loss from discontinued operations, primarily related to the sale of its Japan bank technology solutions business and environmental remediation costs.
Outlook, Risks, and Unusual Items
- Hardware Transition: The company sold $101 million of inventory to Ennoconn in Q1 2026, recording a $12 million loss. Starting April 1, 2026, hardware revenue will be recorded on a net commission basis.
- Legal and Contingencies:
- Retirement Plan Litigation: A settlement of $48 million was reached regarding a class action lawsuit over nonqualified deferred compensation plans. The company expects a 50% indemnity contribution from NCR Atleos.
- Environmental Matters: The reserve for the Kalamazoo River remediation remains at $110 million. The company is pursuing indemnity claims against AT&T and Nokia.
- Cybersecurity: Cumulative expenses related to the 2023 ransomware incident total $47 million, with $37 million recovered via insurance.
- Fraudulent ACH: $34 million in fraudulent disbursements were identified; $16 million has been recovered from banks, with insurance recoveries ongoing.
- Capital Allocation: The Board replenished the share repurchase program to $300 million in February 2026. The company repurchased $9 million of common stock in Q1 2026.
- Risks: Management cites macroeconomic volatility, including tariffs, geopolitical conflicts, and inflation, as key risks. The company also faces uncertainty regarding the final scope and cost of environmental remediation.
Investor Verification Checklist
- Recurring Revenue Mix: Verify the sustainability of the 4% growth in recurring revenue (now 69% of total) as the company transitions away from hardware sales.
- Environmental Reserves: Monitor the $110 million Kalamazoo River reserve and the status of indemnity recoveries from AT&T and Nokia, as costs could potentially double under different assumptions.
- Hardware Transition Impact: Assess the financial impact of the shift to the Ennoconn ODM model, specifically the reduction in gross margin from hardware sales versus the stability of commission-based revenue.
- Liquidity Position: Review the $232 million cash balance against the $1.1 billion debt load and upcoming pension/postemployment contributions ($33 million expected in 2026).
- Legal Settlements: Confirm the final court approval of the $48 million retirement plan settlement and the actual receipt of the 50% indemnity from NCR Atleos.