NCR Corporation 5.5% PFD CNV A

What they do

NCR Voyix provides cloud-based, microservices-based software applications for unified commerce in shopping and dining. Its solutions include point-of-sale, self-checkout, inventory management, loyalty, and payments, supported by services such as installation, maintenance, and managed services. The company operates in two segments: Retail and Restaurants, serving enterprise and mid-market customers across convenience, grocery, mass merchandise, and various restaurant types.

Revenue drivers

• Retail segment — Serves retailers with software, services, payments, and hardware. Revenue includes POS, self-checkout, inventory, and loyalty solutions. This segment is one of the two reportable segments.
• Restaurants segment — Provides software, payments, hardware, and services to quick-service, table-service, and fast casual restaurants. Solutions streamline order processing, kitchen productivity, and consumer engagement.
• Recurring revenue — Comprised 83% of total consolidated revenue in Q2 2026 and increased 3% year-over-year. This includes software subscriptions, services, and payments, which are key to the SaaS transition.
• Hardware sales (as agent) — After completing the Ennoconn ODM transition on April 1, 2026, NCR Voyix records commission revenue from POS and self-checkout hardware sales on a net basis. This reduces gross revenue but maintains a stream from hardware sales.

Recent performance

For the first quarter of 2026, total revenue was $606 million, down from $612 million in the prior year. Net loss from continuing operations was $2 million, improved from a loss of $21 million. Adjusted EBITDA was $78 million, up from $74 million, and non-GAAP diluted EPS was $0.10 versus $0.08. Recurring revenue grew to $419 million from $404 million, and recurring software revenue grew to $199 million from $192 million.

Strategy

NCR Voyix is advancing its position as a platform-powered leader in unified commerce, focusing on delivering a modern microservices-based SaaS suite on its cloud-based Voyix Commerce Platform. The company is leveraging AI tools to accelerate development. It completed the transition of hardware to an ODM model with Ennoconn, expects to sell its Japan bank technology business by end of 2026, and aims to strengthen recurring revenue streams and broaden monetization.

Risks

• SaaS adoption risk — If the company fails to achieve successful adoption of its cloud platform and modernized SaaS solutions, revenue and financial condition could be negatively impacted.
• Cost reduction initiative risk — The company may not achieve some or all of the expected benefits of its cost reduction initiatives, which could adversely affect operating results.
• Strategic transaction risk — The company may not realize anticipated benefits of past or future acquisitions, divestitures, or strategic transactions, including the Ennoconn hardware transition and the Japan sale, and could experience unintended negative consequences.
• Competition and technology risk — If the company fails to develop capabilities that differentiate its solutions and keep pace with technological advancements, its business and operating results may be harmed.

Outlook

For full-year 2026, management updated its outlook to reflect the expected divestiture of its Japan bank technology business, which is now in discontinued operations. Revenue is expected to be $2,188-$2,303 million, reflecting an 18% to 13% decline year-over-year, including the impact of hardware transition on revenue recognition. On a pro forma basis, revenue is expected to grow 2%-3% or decline 2%. Adjusted EBITDA is expected to be $432-$447 million, and non-GAAP diluted EPS of $0.89-$0.92. The company also expects adjusted free cash flow of $190-$220 million.