NCR Atleos Corporation

What they do

Atleos supplies financial institutions, retailers and other businesses with self-directed banking solutions, including ATM and ITM technology, software, services, hardware and its Allpoint network, which it describes as the largest retail surcharge-free independent ATM network in the U.S. It operates three reportable segments: Self-Service Banking, Network, and Telecommunications and Technology (T&T). The company also offers a turnkey 'ATM as a Service' platform and operates approximately 78,000 self-service banking terminal locations including Allpoint.

Revenue drivers

• Self-Service Banking — Largest segment, generating $741 million in Q2 2026 (about 67% of total quarterly revenue), offering ATM hardware and software, installation, maintenance, managed and professional services, and ATM as a Service.
• Network — Generated $316 million in Q2 2026 (about 29% of total revenue), providing financial institutions, fintechs and retailers access to the Allpoint network, ATM branding, ATM management for retailers, and the LibertyX bitcoin solution.
• Telecommunications and Technology (T&T) — Smallest segment at $41 million in Q2 2026 (about 4% of total revenue), offering managed network and infrastructure services to enterprise clients through relationships with communications service providers and technology manufacturers.
• Recurring revenue streams — Approximately 70% of total Q2 2026 revenue was recurring, reflecting the mix of ATMaaS, subscription software, network access and managed services.

Recent performance

For the first six months of 2026, total revenue was $2.1 billion, up 3% year-over-year, with net income attributable to Atleos of $87 million, up 64%, and Adjusted EBITDA of $426 million, up 14%. Q2 2026 total revenue was $1.10 billion, flat year-over-year, with net income of $65 million, up 67%, and Adjusted EBITDA of $254 million, up approximately 25%. Self-Service Banking Q2 revenue rose 1% to $741 million and Adjusted EBITDA increased 13%, while Network revenue declined 1% to $316 million with Adjusted EBITDA up 23%. Q2 diluted EPS was $0.86, and Q2 net cash from operating activities was $30 million with Adjusted Free Cash Flow-unrestricted of $16 million.

Strategy

Atleos is pursuing service-led growth and investment in product innovation, with focus on ATM as a Service, subscription-based software, and expanding Allpoint network volumes. Management highlighted AI-powered diagnostics, intelligent dispatch systems and fleet-level performance management to improve ATM availability. The company is also advancing its proposed merger with The Brink's Company, which stockholders approved on June 30, 2026. Management expects higher earnings and cash flow conversion in the remainder of 2026 to reduce net leverage ahead of the transaction.

Risks

• Merger completion risk — The proposed merger with The Brink's Company, announced February 26, 2026, remains subject to customary closing conditions and regulatory approvals and is expected to close early in the first quarter of 2027.
• Cost inflation and tariffs — Management noted elevated fuel and memory chip costs and expects these could remain elevated for the remainder of the year, impacting gross margin in future quarters.
• Crypto transaction demand — Network revenue decreased in Q2 2026 partly due to lower demand for crypto transactions, which may continue to pressure that segment.
• Geopolitical exposure — The company warned that further conflict with Iran or similar geopolitical conflicts could negatively impact its ability to deliver products and services in certain markets and increase fuel costs.

Outlook

Management said the regulatory and administrative processes for the Brink's merger are progressing and now anticipates an accelerated timeline to close early in the first quarter of 2027, after both companies' stockholders approved the transaction in June 2026. For the rest of 2026, the company expects higher earnings and cash flow conversion, which it intends to use to further reduce net leverage ahead of the anticipated transaction. Management also expects elevated fuel and memory chip costs could persist for the remainder of the year, impacting gross margin.