NCR Voyix (VYX) Q2 FY26 earnings call: guidance and Q&A

Are you seeing VCP adoption accelerate, and how do AI and automation for installs quicken booking to revenue?

Management confirmed strong customer excitement for VCP, noting 20% of signed customers are new logos. AI agents analyze existing environments to automate configuration migration, significantly accelerating deployments and reducing costs, especially for large, complex customers. Remote installations are now possible, reducing deployment times dramatically.

“The rate at which you can get a customer live after adoption, either migrated from our existing software or moving to the new -- net new customers moving to our platform really depends on the customer size and complexity.”

asked by Kartik Mehta · answered by Nick East

What is the overall visibility in the guide for the back half, and what are the demand trends for the new platform across different verticals?

Visibility is strong due to the installed base and multiyear contracts, with guidance maintained. Demand for the new platform is consistent across verticals, including new areas like supply chain. Demos and customer experience centers are generating positive feedback, with 20% of VCP contracts from new logos.

“I think we're seeing consistent demand across the verticals. As I put in my prepared remarks, we signed more than 40 customers in the mid-market spanning all the verticals kind of referenced or that are core focal area, adding on supply chain, as Jim said.”

asked by Unknown Analyst · answered by Darren Wilson

How should we expect the RCV metric to play out, given its deceleration and sequential decline this quarter?

RCV will grow over time but not linearly, as it depends on the size of new contracts and also declines as revenue is recognized. It represents less than 6% of the installed base, indicating it's still in its infancy. The company expects it to rise as more large, multinational organizations convert to the new applications.

“So that has a natural tendency to decline. It goes up by signing additional contracts. It represents less than maybe 6% of our installed base. So it's still in its infancy.”

asked by Matt Summerville · answered by James Kelly

How should we think about the remaining revenue and EBITDA cadence for Q3 and Q4, considering product launches?

The company expects sequential improvement in revenue and adjusted EBITDA in Q3 and Q4, with Q4 typically being the strongest quarter. This implies consistent performance in line with the maintained full-year guidance. Margins are also expected to improve into next year as more customers convert to the new applications, leading to cost savings and enhancements.

“So we see consistent performance in the second half growth wise, which implies again, sequential improvement in adjusted EBITDA and in margins, and we would see that contribution across both segments.”

asked by Matt Summerville · answered by Brian Webb-Walsh

How are higher memory costs impacting hardware discussions and the P&L, and what is the competitive environment like, especially with VCP's launch?

Hardware sales are seeing cautiousness and project delays due to memory chip costs, impacting install revenue. However, the new platform allows customers to extend the life of existing hardware, accelerating software adoption. The competitive environment hasn't significantly changed, but VCP's modernization, architecture, and cost-saving benefits are proving to be strong differentiators, attracting new logos and positive customer feedback.

“Our new platform is able to leverage and sweat those assets. So we've done quite a lot of work to make sure they're not forced to do an upgrade.”

asked by Jack Evans · answered by Nick East

How much of the restaurant business's headwinds are controllable (SMB) versus uncontrollable (macro)?

Macroeconomic pressures (labor, food, energy costs) are driving a focus on ROI for technology spend, leading to longer buying cycles but aligning with NCR Voyix's value proposition for efficiency and automation. The SMB segment's cost-sensitive nature is being addressed with the 'store-in-a-box' solution. Deferred hardware refreshes are largely a one-time, macro-impacted issue, but recurring software revenue remains strong.

“So on that side, what we see is maybe a tad longer of buying journey as the buying committee have more scrutiny on what returns the best for their investment. But it aligns very well with our value proposition on Aloha Next and the wider platform strategy.”

asked by John McShane · answered by Beimnet Tadele

Can you update on the nonrecurring share of the business, what remains, and the urgency to convert it?

83% of Q2 revenue was recurring, a significant improvement. The remaining 17% nonrecurring includes one-time install work in services, declining one-time software licenses (expected to go to zero), and professional services that will become recurring over time. The company is actively structuring all new contracts as multiyear fixed agreements to further increase the recurring revenue percentage.

“So the really good news is 83% of our revenue was recurring in Q2. So it's a significant improvement with the new hardware model. And we do have 17% that's still nonrecurring, and that's going to be onetime install work that's project-based within services.”

asked by John McShane · answered by Brian Webb-Walsh

What is the time line and opportunity for expanding the gateway strategy (Voyix Connect) into Canada, Europe, and APAC?

Voyix Connect, currently processing $800 billion domestically, will be the connection point for all markets as customers adopt the cloud-based VCP. It will connect to local acquiring companies, representing a new revenue source not currently enjoyed in legacy systems. Expansion into Europe and Japan/Southeast Asia is expected in 2027, correlating with customer sign-ups and go-lives in those markets.

“So as they sign up in those markets and they ultimately get past pilot and go live, so you can say '27 for Europe and Asia would be -- it's already live for, obviously, the U.S. and Latin America. They're working on standing it up in Europe and Japan in Southeast Asia next year.”

asked by Matthew Inglis · answered by James Kelly