NATL · NCR Atleos Corporation

NCR Atleos reported strong Q1 2026 results, with total revenue of $1.04 billion, up 7% year-over-year, driven by 12% growth in Self-Service Banking. Within that segment, ATM as a Service (ATMaaS) surged approximately 30%, and hardware revenue grew 23%, reflecting market adoption of recycling technology and expansion in Europe and Latin America. Network revenue grew modestly at 1%, supported by robust Allpoint transaction volumes. Net income attributable to Atleos rose 57% to $22 million, while Adjusted EBITDA remained flat at $172 million, as the company absorbed approximately $11 million in net tariff and higher memory costs. Gross margin declined to 22.4% from 23.7% due to tariffs and higher costs, partially offset by a favorable mix of higher-margin software and services. Management noted results met internal plans despite a volatile backdrop. The company is progressing with its proposed transaction with The Brink's Company, targeting a close by the end of Q1 2027, and did not provide forward guidance or host an earnings call due to the pending deal. Cash flow was negative in the quarter, with operating cash flow of -$9 million and adjusted free cash flow of -$13 million. Overall, the results demonstrate continued momentum in service-led growth initiatives, particularly ATMaaS, while the pending Brink's transaction represents a significant strategic event.