NCR Atleos (NATL) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $1.10 billion, flat year-over-year, with 70% from recurring streams; year-to-date revenue rose 3% to $2.15 billion, driven by software, services, and ATMaaS growth, offset by lower hardware and network revenues.

• Gross margin improved to 28.0% for Q2 2026 (up 510 bps), aided by favorable product mix, tariff refunds, and productivity gains, partially offset by higher fuel and memory chip costs.

• Net income attributable to shareholders increased 67% year-over-year to $65 million for Q2 and 64% to $87 million for the first half; diluted EPS was $0.86 and $1.15, respectively.

• Adjusted EBITDA rose 25% to $254 million for Q2 and 14% to $426 million year-to-date, with margin expansion to 23.0% and 19.9%, respectively.

• Shareholders and regulators approved the merger with Brink's Company, expected to close in early Q1 2027, with each share to be exchanged for $30.00 in cash and 0.1574 Brink's shares.

Financial highlights

• Q2 2026 product revenue declined 6% year-over-year to $248 million, while service revenue grew 2% to $855 million.

• Gross margin for Q2 2026 was $309 million (28.0% of revenue), up from $252 million (22.9%) in Q2 2025; adjusted gross margin rose to 30.2%.

• Operating income for Q2 2026 increased 31% to $156 million; year-to-date operating income rose 13% to $240 million.

• Interest expense decreased 10% to $62 million in Q2 2026 due to lower rates and reduced debt.

• Net cash provided by operating activities for the first half was $21 million, down from $98 million in the prior year, mainly due to working capital changes; Q2 net cash from operating activities was $30 million.

Outlook and guidance

• No formal financial outlook provided due to the pending Brink's transaction.

• Management anticipates continued cost pressures from fuel and memory chips, which may impact gross margin in future quarters.

• Macroeconomic risks, including interest rates, currency fluctuations, and geopolitical tensions, are expected to persist.

• Management expects higher earnings and cash flow conversion in the second half of 2026, aiming to further reduce net leverage.

• The merger with Brink's is expected to close in Q1 2027, pending regulatory approvals.