DIEBOLD NIXDORF Inc

Results of Operations. The following discussion of the Company’s financial condition and results of operations provides information that will assist in understanding the financial statements and the changes in certain key items in those financial statements. The following discussion should be read in conjunction with the condensed consolidated financial statements and the accompanying notes that appear elsewhere in this Quarterly Report on Form 10-Q.

(1)The Company calculates constant currency by translating the prior-year period results at the current year exchange rate. The Company calculates constant currency by translating the prior-year period results at the current year exchange rate.

Net sales decreased $54.3, or 6.1 percent, including a net unfavorable currency impact of $23.3 primarily related to the Brazilian real and the euro. After excluding the unfavorable currency impact, net sales decreased by $31.0. Banking net sales decreased $19.3 or 3.0 percent, including a net unfavorable currency impact of $18.3, related primarily to the Brazilian real and the euro. After excluding the unfavorable currency impact, and non-recurrence of a $9.7 tax recovery in Brazil, net sales increased $8.7, driven by higher ATM unit sales volume. Banking net sales represented 74.8 percent of total net sales for the three months ended March 31, 2025. Retail net sales decreased $35.0, including a net unfavorable currency impact of $5.0 primarily related to the euro. After excluding the unfavorable currency impact, net sales decreased $30.0 primarily due to market headwinds as a result of the current spend environment of retailers. Retail net sales represented 25.2 percent of total net sales for the three months ended March 31, 2025.

Services gross margin increased 90 basis points in the three months ended March 31, 2025 primarily due to North America service operations improvement. Product gross margin increased 60 basis points in the three months ended March 31, 2025 primarily due to favorable geographic mix of ATM machines in the period as well as pricing. This offset the non-recurrence of a tax recovery in Brazil.

Selling and administrative expense decreased $9.8 in the three months ended March 31, 2025 compared to the corresponding period in 2024. This decrease is the result of lower spending related to refinancing activities and increased efficiency as a result of continuous improvement initiatives. Research and development costs reflect the Company's ongoing investment in hardware and software innovations and enhancements in service offerings.

Interest expense decreased $22.1 in the three months ended March 31, 2025 due to the refinancing of the Company's debt completed on December 18, 2024. Foreign exchange gain (loss), net includes realized gains and losses, primarily related to the unfavorable impact of a strengthening Brazilian real and euro against the U.S. dollar and a broader weakening of the U.S. dollar during the first quarter of 2025.

Changes in net loss were a result of the fluctuations outlined in the previous sections and impacted by income tax benefit. The change in net loss is also impacted by a decrease in income tax benefit for the three months ended March 31, 2025 compared with the prior year period. Refer to Note 3 to our condensed consolidated financial statements for additional information regarding tax benefit.