10-Q: NCR Voyix Reports Q1 2026 Results, Revenue Down 1%

NCR Voyix Corporation reported first quarter 2026 results with total revenue of $606 million, a 1% decrease year-over-year, while recurring revenue saw a 4% increase.

Summary

• Total revenue for the first quarter of 2026 was $606 million, a 1% decrease compared to the same period in 2025.
• Recurring revenue increased by 4% year-over-year to $419 million, representing 69% of total revenue.
• Software and services revenue slightly decreased by 1% to $472 million, making up 78% of total revenue.
• Adjusted EBITDA was $78 million, an increase of 5% compared to the prior year period.
• The company reported a net loss from continuing operations attributable to NCR Voyix of $2 million, an improvement from a loss of $21 million in the prior year.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, with improvements in operational profitability and recurring revenue offset by a continued decline in overall revenue and a net loss.

Positives

• Recurring revenue increased by 4% to $419 million, indicating a growing base of predictable income.
• Adjusted EBITDA increased by 5% to $78 million, showing improved operational profitability.
• Net loss from continuing operations improved significantly to $2 million from $21 million in the prior year.
• Retail segment Adjusted EBITDA increased by 20% due to favorable software mix and cost initiatives.
• The company generated $42 million in cash from operating activities, a significant improvement from negative $42 million in the prior year.

Negatives

• Total revenue decreased by 1% to $606 million.
• Product revenue decreased by 2% due to lower SCO and POS hardware sales.
• Service revenue decreased by 1% due to lower installation services, SaaS solutions, and professional services.
• Restaurants segment revenue decreased by 6%.
• Restaurants segment Adjusted EBITDA decreased by 8%.

Risks

• Global economic volatility due to tariffs, geopolitical conflicts, inflation, and potential recessions could impact business and financial performance.
• Evolving U.S. foreign trade policy and potential retaliatory measures from other countries create uncertainty.
• Economic pressures on retail and restaurant businesses and consumers could negatively affect revenue and profitability.
• Cybersecurity threats, including the ongoing impact of a past ransomware incident, pose risks.
• The company faces risks related to defects, errors, installation difficulties, or development delays in its products and services.

Future Outlook

The company expects to continue investing in property and equipment, purchased software, and internally developed software to support its business. Management believes they have sufficient liquidity to meet expected pension, postemployment, and postretirement plan contributions, remediation payments, debt servicing obligations, and transformation/restructuring initiatives.

Management Comments

• Our strategy is to advance our position as the platform-powered leader in unified commerce for shopping and dining at a time when consumer expectations for seamless, personalized and frictionless experiences continue to rise across both retail and restaurant environments.
• By combining hardware, software, services and payments into a unified suite of offerings, we can deliver to customers an end-to-end value proposition that we believe is difficult to match.
• As the adoption of our platform and solutions accelerates, we expect to strengthen customer relationships, enhance recurring revenue streams and broaden monetization opportunities across our Voyix Commerce Platform.
• The U.S. and other global markets currently are experiencing increased volatility due to the effects of, among other things, recent changes in imposed or threatened tariffs and other trade policy changes by the U.S. and other countries, escalating geopolitical and civil conflicts, including, but not limited to, Eastern Europe and the Middle East, inflationary pressures, such as increasing prices for goods and services, changing fiscal and/or monetary policies in the U.S. and elsewhere, and fluctuating currency exchange rates, elevated unemployment rates, global shortages of microchips and other technology components, primarily driven by the adoption of artificial intelligence technologies, and, in some locations around the world, decreased economic conditions that indicate the potential for near-term recessions or slowdowns.

Industry Context

StockSavvy.ai notes that NCR Voyix's focus on unified commerce for retail and restaurants aligns with the industry trend of increasing consumer demand for seamless digital and physical experiences. The company's strategy to combine hardware, software, services, and payments addresses this trend, aiming to differentiate itself in a competitive market.

Comparison to Industry Standards

• NCR Voyix's recurring revenue as a percentage of total revenue (69%) is a key metric for software and service-oriented businesses. Industry benchmarks for recurring revenue vary significantly by sub-sector, but a strong recurring revenue base is generally viewed positively.
• The company's Adjusted EBITDA margin of 12.9% for Q1 2026 (calculated as $78M / $606M) should be compared against industry peers in the unified commerce, POS, and payment processing sectors to assess its relative performance.
• The reported net loss from continuing operations of $2 million for the quarter indicates a challenging profitability profile compared to companies with more mature, high-margin software businesses. Further analysis against peers is needed to determine if this is an industry-wide trend or company-specific.

Legal Proceedings

• A putative class action lawsuit regarding nonqualified deferred compensation plans resulted in a final judgment against the company, with a settlement of $48 million reached in April 2026, subject to court approval. NCR Atleos has an indemnity obligation to contribute 50% of this settlement.
• Environmental matters include ongoing remediation at the Fox River and Kalamazoo River sites. The company has a receivable of $54 million related to the Fox River funding agreement and is involved in litigation and discussions with indemnitors (AT&T, Nokia, BAT) for both sites. The reserve for the Kalamazoo River was $110 million as of March 31, 2026.
• The company is involved in various other proceedings, lawsuits, claims, and other matters related to environmental and health/safety, labor, employee benefits, intellectual property, data privacy, product liability, commercial disputes, and regulatory compliance.

Related Party Transactions

• The company continues to provide and receive certain limited services from NCR Atleos pursuant to a master services agreement post-spin-off.
• NCR Atleos has an indemnity obligation to contribute 50% of the settlement amount for the nonqualified deferred compensation plans lawsuit ($24 million receivable recorded).
• NCR Atleos has an indemnity obligation to contribute 50% of the costs of certain environmental liabilities after an annual $15 million funding threshold is met.

Stakeholder Impact

• Shareholders: Continued net losses and revenue decline may impact stock valuation, though improvements in recurring revenue and Adjusted EBITDA are positive indicators.
• Employees: Cost reduction initiatives and use of AI in R&D may impact workforce dynamics. Stock-based compensation expense was $8 million.
• Customers: The company's focus on unified commerce aims to improve customer experience. The transition of hardware business to an ODM model with Ennoconn means NCR Voyix acts as a sales agent for hardware.
• Creditors: The company has $1.1 billion in long-term debt, with a consolidated leverage ratio covenant of 4.25 to 1.00 as of September 30, 2025.

Next Steps

• Continue to execute on the strategy to advance position as a platform-powered leader in unified commerce.
• Focus on delivering a modern suite of SaaS solutions.
• Expand adoption of integrated payment solutions.
• Scale differentiated services offerings.
• Invest in innovation to further expand platform capabilities.
• Monitor and mitigate impacts of global macroeconomic trends and trade policies.
• Continue to pursue insurance recoveries for the cyber ransomware incident and ACH disbursements.

Key Dates

Recommendation

The company shows signs of operational improvement with increased Adjusted EBITDA and positive operating cash flow, alongside growth in recurring revenue. However, the overall revenue decline and continued net loss from continuing operations suggest caution. The ongoing legal and environmental liabilities also present significant risks. A 'hold' recommendation reflects a balanced view of these factors, awaiting more consistent top-line growth and sustained profitability.

Keywords

NCR Voyix, 10-Q, Quarterly Report, Unified Commerce, Retail, Restaurants, Financial Results, Adjusted EBITDA