NCR Atleos Corp
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
NATL$47.18+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001974138-26-000009
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001974138-26-000016
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 84 previous paragraphs and 89 current paragraphs.
45 unchanged; 29 reworded; 15 added; 10 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
On a year-to-date basis, consolidated revenue increased due to an increase in ATMaaS, subscription-based software offerings, and hardware sales during the first quarter. Year-to-date gross margin increased as a result of shifts in product mix and tariff refunds in the second quarter of the year.
Current report
•Total revenue of $1.10 billion for the three months ended June 30, 2026 was flat year over year, including $776 million of recurring revenue ($772 million of recurring revenue in the prior year period). For the six months ended June 30, 2026, total revenue increased 3% to $2.15 billion, including $1.53 billion of recurring revenue, compared to $2.08 billion and $1.51 billion, respectively, in the comparative prior year period. Revenue growth for the three and six months ended June 30, 2026 was driven by software and services revenues, including ATMaaS, while revenue in our network business decreased due to lower demand for crypto transactions. Hardware sales and associated installation services also contributed an offset to revenue growth in the three months ended June 30, 2026 due to the timing of delivery in the prior year, with overall growth for the six months ended June 30, 2026. Other revenues declined due to an expected reduction in commercial agreements and commerce-related contracts with Voyix.
Current report
•For the three months ended June 30, 2026, gross margin increased 510 basis points to 28.0% and adjusted gross margin increased 530 basis points to 30.2%. For the six months ended June 30, 2026, gross margin increased 200 basis points to 25.3% and adjusted gross margin increased 200 basis points to 27.4%. These increases were driven by net tariff refunds, favorable product mix in software and services, productivity initiatives, and positive settlement processing and lower vault cash costs in the network business, offset by an increase in other costs, including fuel and memory chips.
Current report
•Income before income taxes increased to $90 million and $123 million for the three and six months ended June 30, 2026, respectively, compared to $57 million and $79 million in the prior year periods as the impact of lower interest costs on our debt was offset by reduced gains from business disposals relative to the prior year period.
Current report
(1) Refer to our definition of Recurring revenue in the section entitled “Key Financial and Performance Metrics.”
Current report
Other performance metrics
Current report
Consolidated revenue for the three months ended June 30, 2026 was flat compared to the three months ended June 30, 2025, with increases in software and services offset by lower demand for crypto transactions and less favorable revenue mix.
Current report
Gross margin increased to 28.0% and 25.3% for the three and six months ended June 30, 2026, respectively, compared with 22.9% and 23.3%, respectively, for the corresponding comparative prior year periods. Adjusted gross margin for the three and six months ended June 30, 2026 increased from 24.9% and 25.4% to 30.2% and 27.4%, respectively.
Current report
These increases were driven by tariff refunds, favorable product mix in software and services, productivity initiatives, and positive settlement activity and lower vault cash costs in the network business, offset by an increase in other costs, including fuel and memory chips.
Current report
Revenue for the three and six months ended June 30, 2026 increased 1% and 6%, respectively, compared to the prior year period. Software and services revenues increased, primarily due to the continued shift toward recurring ATMaaS arrangements and subscription-based software offerings. Hardware sales and associated installation services contributed an offset to revenue growth in the three months ended June 30, 2026 due to the timing of delivery in the prior year, with overall growth for the six months ended June 30, 2026.
Current report
Adjusted EBITDA for the three and six months ended June 30, 2026 increased 13% and 9%, respectively, compared to the prior year periods due to net tariff refunds, productivity initiatives and favorable product mix, offset by increases in the costs of fuel and memory chips.
Current report
Revenue remained relatively flat for the three and six months ended June 30, 2026 compared to the prior year periods due to lower demand for crypto transactions and less favorable revenue mix.
Current report
Adjusted EBITDA for the three and six months ended June 30, 2026 increased 23% and 10%, respectively, compared to the prior year periods resulting from positive settlement processing and lower vault cash costs.
Current report
Adjusted EBITDA for the three and six months ended June 30, 2026 decreased 22% and 18%, respectively, compared to the prior year periods, primarily reflecting the revenue trends discussed above.
Current report
Net cash used in financing activities for the six months ended June 30, 2026 decreased $60 million year over year, driven by additional net borrowings under our revolving credit facility of $95 million. This was partially offset by an increase in repayments on our term loan facilities of $13 million and year-to-date payments of $16 million for share repurchases. Additionally, cash inflows from employee stock plans decreased $7 million due to the timing of employee stock options exercises.
Removed paragraphs (10)
Previous report
•Total revenue increased 7% or $64 million, to $1.04 billion, including $754 million of recurring revenue, compared to $979 million and $741 million, respectively, in the prior year period, driven by continued growth in ATMaaS and stronger demand for hardware and associated installation services.
Previous report
•Gross margin decreased, due to the impact of higher tariffs and increases in vault cash cost and the cost of certain components used in manufacturing. Gross margin decreased 130 basis points to 22.4%, and adjusted gross margin decreased 140 basis points to 24.5%.
Previous report
•Income before income taxes increased to $33 million compared to $22 million in the prior year period, driven by a gain on divestiture of a non-core business, higher income related to our company-sponsored defined benefit plan and lower interest costs.
Previous report
Gross margin for the three months ended March 31, 2026 decreased to 22.4% compared to 23.7% for the three months ended March 31, 2025. The decrease was primarily due to the impact of higher tariffs and increases in vault cash expense and the cost of certain components used in manufacturing, partially offset by a favorable mix of higher margin software and services revenue, including ATMaaS growth. Adjusted gross margin decreased from 25.9% to 24.5% as a result of the factors discussed above.
Previous report
Self-Service Banking revenue for the three months ended March 31, 2026 increased 12% compared to the prior year period. Hardware revenue increased 23%, driven by the industry refresh cycle and business growth. Together with a favorable shift in customer mix, this contributed to a 37% increase in transaction services. ATMaaS revenue increased 29% as we continued to pursue our customer conversion strategy.
Previous report
Adjusted EBITDA for the three months ended March 31, 2026 increased 5% compared to the prior year period. Adjusted EBITDA increased less than revenue due to net tariff impacts and higher costs of certain components used in manufacturing of approximately $11 million, partially offset by favorable product mix.
Previous report
Network revenue for the three months ended March 31, 2026 was relatively flat year over year as lower transactional volume driven by unfavorable macroeconomic trends was offset by the impact of a business acquisition.
Previous report
Adjusted EBITDA for the three months ended March 31, 2026 decreased 2% compared to the prior year period, driven by an increase in vault cash cost as the amortization of gains on terminated derivatives expired.
Previous report
Adjusted EBITDA for the three months ended March 31, 2026 decreased 13% compared to the prior year period due to the decrease in revenue described above.
Previous report
Net cash used in financing activities for the three months ended March 31, 2026 decreased by $38 million relative to the prior year period. We increased net borrowings under our term loan facilities by $52 million and paid $8 million less in acquisition holdback payments. These impacts were partially offset by payments for share repurchases of $16 million in the current quarter, which may vary from the amounts included in equity due to the timing of settlements, and $8 million of additional lease payments and other financing activities.
Reworded paragraphs (29)
Previous wording
The following discussion should be read in conjunction with the Condensed Consolidated Financial Statements and notes thereto included under Item 1. Financial Statements of this Form 10-Q and our Consolidated Financial Statements and notes thereto and related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”). This quarterly report contains forward-looking statements. See the sections of the Form 10-Q titled “Cautionary Statement about Forward-Looking Statements” and “Risk Factors” for a discussion of the uncertainties, risks and assumptions associated with these forward-looking statements that could cause future results to differ materially from those reflected in this section.
Current wording
The following discussion should be read in conjunction with the Condensed Consolidated Financial Statements and notes thereto included under Item 1. Financial Statements of this Form 10-Q, our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026, including the risk factors set forth therein, and our Consolidated Financial Statements and notes thereto and related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”). This quarterly report contains forward-looking statements. See the sections of the Form 10-Q titled “Cautionary Statement about Forward-Looking Statements” and “Risk Factors” for a discussion of the uncertainties, risks and assumptions associated with these forward-looking statements that could cause future results to differ materially from those reflected in this section.
Previous wording
Revision. In connection with the preparation of our second and third quarter 2025 financial statements, we identified misstatements in our previously-issued financial statements. Although not materially impacting any previously-reported periods, the misstatements resulted in immaterial misstatements in our historical financial statements and the revision of the first and second quarters of 2025. The figures in this MD&A reflect the impact of such revisions. Refer to Note 1, “Basis of Presentation and Summary of Significant Accounting Policies”, and Note 13, “Revisions of Previously Issued Financial Statements”, in Item 1 of this Quarterly Report for additional information.
Current wording
Revision. In connection with the preparation of our second and third quarters 2025 financial statements, we identified misstatements in our previously-issued financial statements. Although not materially impacting any previously-reported periods, the misstatements resulted in immaterial misstatements in our historical financial statements and the revision of the first and second quarters of 2025. The figures in this MD&A reflect the impact of such revisions. Refer to Note 1, “Basis of Presentation and Summary of Significant Accounting Policies”, and Note 13, “Revisions of Previously Issued Financial Statements”, in Item 1 of this Quarterly Report for additional information.
Previous wording
During the first quarter, we continued to pursue our focus on customer service, leveraging AI-powered diagnostics, intelligent dispatch systems and fleet-level performance management to improve ATM availability. We experienced revenue growth in our Self-Service Banking segment, driven by increased hardware sales and associated installation services, as well as continued growth in our ATM as a Service (“ATMaaS”) business. Network segment revenues were flat year over year, with growth in certain international markets offset by declines in domestic transaction volumes. Gross margin compressed slightly year over year, due to the impact of higher tariffs and increases in the cost of certain components used in manufacturing, as well as higher vault cash cost in our Network segment. We anticipate that component costs could remain elevated for the remainder of the year, which could affect gross margin in future quarters.
Current wording
During the second quarter of 2026, we continued to pursue our focus on customer service, leveraging AI-powered diagnostics, intelligent dispatch systems and fleet-level performance management to improve ATM availability. Within Self-Service Banking, continued revenue growth in our ATM as a Service (“ATMaaS”) business and subscription-based software offerings was offset by a reduction in revenue from hardware sales. Revenue in our Network segment decreased slightly quarter over quarter, due to lower demand for crypto transactions and less favorable revenue mix. Total gross margin increased year over year, due to favorable shifts in product mix in software and services, the impact of tariff refunds, productivity initiatives and positive settlement processing in the network business. These benefits were partially offset by increases in the costs of fuel and memory chips. We anticipate that these costs could remain elevated for the remainder of the year, impacting gross margin in future quarters.
Previous wording
We are exposed to macroeconomic factors such as interest rates, foreign currency fluctuations, geopolitical tensions and shifts in global trade policies. While the impact to our first quarter results was not material, we anticipate that a prolonged conflict with Iran could negatively impact our ability to deliver products and services in certain markets, and result in an increase in transportation costs.
Current wording
We are exposed to macroeconomic factors such as interest rates, foreign currency fluctuations, geopolitical tensions and shifts in global trade policies. We anticipate that further conflict with Iran or similar geopolitical conflicts could negatively impact our ability to deliver products and services in certain markets, and continue to result in increases in fuel costs.
Previous wording
On February 20, 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were not valid, and on March 4, 2026, the Court of International Trade ruled that U.S. Customs and Border Protection (“CBP”) was required, subject to applicable procedures, to refund the IEEPA tariffs it had collected. On April 20, 2026, CBP began accepting submissions for certain IEEPA tariff refunds. To date, a portion of our refund claims have been accepted, and we have accrued an immaterial net receivable related to this. We continue to submit claims in anticipation of receiving a refund of the full amount we previously paid.
Current wording
On February 20, 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were not valid, and on March 4, 2026, the Court of International Trade ruled that U.S. Customs and Border Protection (“CBP”) was required, subject to applicable procedures, to refund the IEEPA tariffs it had collected. On April 20, 2026, CBP began accepting submissions for certain IEEPA tariff refunds, and on June 29, 2026, it further expanded eligible refund submissions. The majority of our refund claims have been accepted, and we have accrued a net receivable related to these claims. We have received payment for a portion of our receivables.
Previous wording
On February 26, 2026, we entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among Atleos, The Brink’s Company, a Virginia corporation (“Brink’s”), Novus Merger Sub, Inc., a Maryland corporation and wholly owned subsidiary of Brink’s (“Merger Sub I”) and Novus Merger Sub II, LLC, a Maryland limited liability company and wholly owned subsidiary of Brink’s (“Merger Sub II”). Pursuant to the Merger Agreement, (i) Merger Sub I will merge with and into Atleos (the “First Merger”), with Atleos surviving the First Merger as a direct wholly owned subsidiary of Brink’s, and (ii) immediately following the First Merger, Atleos will merge with and into Merger Sub II (the “Second Merger” and, together with the First Merger, the “Mergers”), with Merger Sub II surviving the Second Merger as a wholly owned subsidiary of Brink’s. Pursuant to the Merger Agreement, Brink’s will acquire each outstanding share of Atleos stock for $30.00 in cash, without interest, and 0.1574 shares of validly issued, fully paid and nonassessable shares of Brink’s common stock. The Mergers are currently expected to close in the first quarter of 2027, subject to customary closing conditions, including regulatory approvals and the approval of both companies’ shareholders. In connection with the Mergers, on March 11, 2026, we received the requisite consents from holders of our 9.500% Senior Secured Notes due 2029 (the “Notes”) and entered into a supplemental indenture to amend the defined term “Change of Control” to provide that the Mergers will not constitute a Change of Control and to add or amend certain other defined terms related to the
Current wording
On February 26, 2026, we entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among Atleos, The Brink’s Company, a Virginia corporation (“Brink’s”), Novus Merger Sub, Inc., a Maryland corporation and wholly owned subsidiary of Brink’s (“Merger Sub I”) and Novus Merger Sub II, LLC, a Maryland limited liability company and wholly owned subsidiary of Brink’s (“Merger Sub II”). Pursuant to the Merger Agreement, (i) Merger Sub I will merge with and into Atleos (the “First Merger”), with Atleos surviving the First Merger as a direct wholly owned subsidiary of Brink’s, and (ii) immediately following the First Merger, Atleos will merge with and into Merger Sub II (the “Second Merger” and, together with the First Merger, the “Mergers”), with Merger Sub II surviving the Second Merger as a wholly owned subsidiary of Brink’s. Pursuant to the Merger Agreement, Brink’s will acquire each outstanding share of Atleos stock for $30.00 in cash, without interest, and 0.1574 shares of validly issued, fully paid and nonassessable shares of
Previous wording
Change of Control put provisions contained in the indenture governing the Notes (collectively, the “CoC Put Waiver”). As a result of the CoC Put Waiver, we are not required to repurchase any portion of the Notes as a result of the consummation of the Mergers. The supplemental indenture became effective immediately upon execution, but the CoC Put Waiver will not become operative until immediately prior to the effective time of the First Merger and will cease to be operative if the First Merger is not consummated or we do not pay the consent fee to the paying agent on behalf of the holders.
Current wording
Brink’s common stock. On June 30, 2026, the stockholders of both companies approved the Mergers. The Mergers are currently expected to close early in the first quarter of 2027, subject to customary closing conditions, including regulatory approvals. In connection with the Mergers, on March 11, 2026, we received the requisite consents from holders of our 9.500% Senior Secured Notes due 2029 (the “Notes”) and entered into a supplemental indenture to amend the defined term “Change of Control” to provide that the Mergers will not constitute a Change of Control and to add or amend certain other defined terms related to the Change of Control put provisions contained in the indenture governing the Notes (collectively, the “CoC Put Waiver”). As a result of the CoC Put Waiver, we are not required to repurchase any portion of the Notes as a result of the consummation of the Mergers. The supplemental indenture became effective immediately upon execution, but the CoC Put Waiver will not become operative until immediately prior to the effective time of the First Merger and will cease to be operative if the First Merger is not consummated or we do not pay the consent fee to the paying agent on behalf of the holders.
Previous wording
•Income from operations decreased 10% driven by costs incurred in connection with our workforce optimization and strategic initiatives.
Current wording
•Income from operations increased 31% and 13% for the three and six months ended June 30, 2026, respectively, driven by the factors described above. Operating expenses increased due to costs incurred in connection with our workforce optimization and strategic initiatives, as well as acquisition-related costs.
Previous wording
The following tables show our key financial and performance metrics for the three months ended March 31, the relative percentage that those amounts represent to total revenue, and the change in those amounts year over year.
Current wording
The following tables show our key financial and performance metrics for the three and six months ended June 30, the relative percentage that those amounts represent to total revenue, and the change in those amounts year over year.
Previous wording
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(non-GAAP) and Adjusted EBITDA margin (non-GAAP) are calculated as GAAP Net income (loss) attributable to Atleos plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus acquisition-related costs, including costs related to the Brink’s transaction; plus pension mark-to-market adjustments and other one-time pension-related costs; plus separation-related costs; plus transformation and restructuring charges, which include integration, severance, divestiture and other exit and disposal costs; plus stock-based compensation expense; plus Voyix legal and environmental indemnification expense; plus other amounts included in Other income (expense), net. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenue, and Adjusted EBITDA margin by segment is calculated based on segment Adjusted EBITDA divided by the related segment revenue. We use these non-GAAP measures to evaluate performance consistently from period to period.
Current wording
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(non-GAAP) and Adjusted EBITDA margin (non-GAAP) are calculated as GAAP Net income (loss) attributable to Atleos plus interest expense; plus income tax expense (benefit); plus depreciation and amortization; plus acquisition-related costs, including costs related to the Brink’s transaction; plus pension mark-to-market adjustments and other one-time pension-related costs; plus separation-related costs; plus transformation and restructuring charges, which include integration, severance, divestiture and other exit and disposal costs; plus stock-based compensation expense; plus Voyix legal and environmental indemnification expense; plus other amounts included in Other income (expense), net. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenue, and Adjusted EBITDA margin by segment is calculated based on segment Adjusted EBITDA divided by the related segment revenue. We use these non-GAAP measures to evaluate performance consistently from period to period.
Previous wording
Adjusted free cash flow-unrestricted (non-GAAP) is calculated as net cash provided by operating activities less capital expenditures, less additions to capitalized software, plus/minus the change in restricted cash settlement activity, plus proceeds from certain sale-leaseback transactions, plus pension contributions and settlements, and plus legal and environmental indemnification payments made to Voyix. Restricted cash settlement activity represents the net change in amounts collected on behalf of, but not yet remitted to, certain of our merchant customers or third-party service providers that are pledged for a particular use or restricted to support these obligations. These amounts can fluctuate significantly period to period based on the number of days for which settlement has not yet occurred or day of the week on which a reporting period ends. We believe Adjusted free cash flow-unrestricted is useful for investors because it indicates the amount of cash available for, among other things, investments in our existing businesses, strategic acquisitions and repayment of our debt obligations. Adjusted free cash flow-unrestricted does not represent the residual cash flow available, since there may be other non-discretionary expenditures that are not deducted from the measure.
Current wording
Adjusted free cash flow-unrestricted (non-GAAP) is calculated as net cash (used in) provided by operating activities less capital expenditures, less additions to capitalized software, plus/minus the change in restricted cash settlement activity, plus proceeds from certain sale-leaseback transactions, plus pension contributions and settlements, plus legal and environmental indemnification payments made to Voyix, and plus certain significant acquisition-related payments. Restricted cash settlement activity represents the net change in amounts collected on behalf of, but not yet remitted to, certain of our merchant customers or third-party service providers that are pledged for a particular use or restricted to support these obligations. These amounts can fluctuate significantly period to period based on the number of days for which settlement has not yet occurred or day of the week on which a reporting period ends. We believe Adjusted free cash flow-unrestricted is useful for investors because it indicates the amount of cash available for, among other things, investments in our existing businesses, strategic acquisitions and repayment of our debt obligations. Adjusted free cash flow-unrestricted does not represent the residual cash flow available, since there may be other non-discretionary expenditures that are not deducted from the measure.
Previous wording
Consolidated revenue for the three months ended March 31, 2026 increased 7% compared to the three months ended March 31, 2025, driven by Self-Service Banking, with increases in hardware sales and related installation revenues, software, and continued growth in ATMaaS. This growth was slightly offset by the impact of lower volumes in T&T and an expected reduction in other revenues as commercial agreements and commerce-related contracts with Voyix continued to wind down.
Current wording
Consolidated revenue for the six months ended June 30, 2026 increased 3% compared to the six months ended June 30, 2025. Revenue growth for the six months ended June 30, 2026 was driven by software and services revenues, including ATMaaS. Hardware sales and associated installation services contributed an offset to revenue growth in the three months ended June 30, 2026 due to timing of delivery in the prior year, with overall growth for the six months ended June 30, 2026. Other revenues for both the three and six months ended June 30, 2026 declined due to an expected reduction in commercial agreements and commerce-related contracts with Voyix.
Previous wording
Selling, general, and administrative expenses for the three months ended March 31, 2026 increased $8 million compared to the three months ended March 31, 2025. The increase was primarily due to higher severance costs and professional fees incurred in connection with our workforce optimization and other strategic initiatives. Adjusted selling, general and administrative expenses decreased from 11.1% to 10.5% of revenue as a result of adjusting for the items discussed above.
Current wording
Selling, general, and administrative expenses increased $17 million and $25 million for the three and six months ended June 30, 2026, respectively, compared to the corresponding prior year periods. The increases were primarily due to higher severance costs and professional fees incurred in connection with our workforce optimization and other strategic initiatives. On an adjusted basis, selling, general and administrative expenses as a percentage of revenue increased from 9.1% to 9.5% for the three months ended June 30, 2026. For the six months ended June 30, 2026 and 2025, adjusted selling, general and administrative expenses as a percentage of revenue remained flat at 10.0%.
Previous wording
Research and development expenses for the three months ended March 31, 2026, increased $3 million compared to the three months ended March 31, 2025 due to an increase in employee-related costs.
Current wording
Research and development expenses increased year over year by $3 million and $6 million for the three and six months ended June 30, 2026, respectively, due to increases in employee-related costs.
Previous wording
Interest expense decreased $4 million for the three months ended March 31, 2026 relative to the prior year period due to lower interest rates on our term loan facilities as well as a reduction in the outstanding balance on these facilities.
Current wording
Interest expense decreased $7 million and $11 million for the three and six months ended June 30, 2026, respectively, compared to the prior year due to lower interest rates on certain debt obligations as well as a reduction in the outstanding balance on the term loan facilities.
Previous wording
We recorded income of $12 million for the three months ended March 31, 2026, compared to expense of $4 million in the comparative period. The favorable change was driven by the gain on divestiture of a non-core business, an increase in income related to our company-sponsored defined benefit plans due to the higher asset base resulting from contributions and prior year asset performance, and the amortization of actuarial gains on certain of our postemployment plans. These favorable impacts were partially offset by an increase in losses from foreign currency exchange rate movements.
Current wording
We recorded expense of $4 million for the three months ended June 30, 2026 compared to income of $7 million in the comparative prior year period. The unfavorable year-over-year change was primarily attributable to gains recognized on the divestiture of a business in the prior year period that did not repeat. This was partially offset by an increase in income related to our company-sponsored defined benefit plans resulting from contributions and favorable prior year asset performance, and the amortization of actuarial gains associated with certain postemployment plans. On a year-to-date basis, Other income increased $5 million as the increase in income related to our company-sponsored defined benefit plans more than offset a decrease in gains recognized from business disposals.
Previous wording
Income tax expense was $11 million for the three months ended March 31, 2026 compared to the income tax expense of $9 million for the three months ended March 31, 2025. The change in the three months ended March 31, 2026 compared to the prior year period was primarily driven by higher income before income taxes in the current quarter partially offset by lower effective tax rate. We did not recognize any material discrete tax expenses or benefits in either the three months ended March 31, 2026 or 2025.
Current wording
Income tax expense was $25 million and $36 million for the three and six months ended June 30, 2026, respectively, compared to $19 million and $28 million in the prior year periods. The changes were primarily driven by higher income before income taxes, partially offset by a lower annual effective tax rate. We did not recognize any material discrete tax expenses or benefits in the three and six months ended June 30, 2026 or 2025.
Previous wording
Services revenues include hardware maintenance revenue, transaction services revenue and ATMaaS revenue. Software revenues include cloud revenue, software license and maintenance revenues, as well as professional services revenues. Transactional revenue includes payments processing revenue, interchange and network revenue and Bitcoin-related revenue. Hardware revenue is primarily comprised of sales of ATM hardware.
Current wording
Services revenues include hardware maintenance revenue, transaction services revenue and ATMaaS revenue. Software revenues include cloud revenue, software license and maintenance revenues, as well as professional services revenues. Transactional revenues include payments processing revenue, interchange and network revenue and Bitcoin-related revenue. Hardware revenue is primarily comprised of sales of ATM hardware.
Previous wording
T&T revenue for the three months ended March 31, 2026 decreased 7% compared to the prior year period, driven by a decline in customer projects.
Current wording
Revenue for the three months ended June 30, 2026 was flat year over year, while for the six months ended June 30, 2026 revenue decreased 4% due to a decline in customer projects.
Previous wording
Summarized cash flow information for the three months ended March 31, is as follows:
Current wording
Summarized cash flow information for the six months ended June 30, is as follows:
Previous wording
Net cash provided by operating activities decreased $132 million for the three months ended March 31, 2026 relative to the comparative period, primarily driven by an increase in working capital requirements, including timing of cash settlement to our merchant partners.
Current wording
Net cash provided by operating activities for the six months ended June 30, 2026 decreased $77 million relative to the comparative prior year period, driven by the timing of cash settlement to our merchant partners, increases in contract liabilities and other working capital requirements.
Previous wording
Net cash used in investing activities decreased for the three months ended March 31, 2026 relative to the comparative period due to proceeds from a previously divested business.
Current wording
Net cash used in investing activities increased $15 million for the six months ended June 30, 2026 relative to the comparative prior year period, primarily due to a reduction in sale-leaseback transactions on our ATM units.
Previous wording
Long Term Borrowings As of March 31, 2026, we had $1,350 million of outstanding 9.500% senior secured notes due in 2029 and $1,263 million outstanding under our term loan facilities. In addition, we had $205 million outstanding under our revolving credit facility and $29 million of letters of credit issued.
Current wording
Long Term Borrowings As of June 30, 2026, we had $1,350 million of outstanding 9.500% senior secured notes due in 2029 and $1,243 million outstanding under our term loan facilities. In addition, we had $235 million outstanding under our revolving credit facility and $30 million of letters of credit issued.
Previous wording
Employee Benefit Plans In 2026, we expect to make contributions of $4 million to our international pension plans, $48 million to our U.S. pension plan, $8 million to our post-employment plans, and no material contributions to our U.S. postretirement plan.
Current wording
Employee Benefit Plans In 2026, we expect to make contributions of $4 million to our international pension plans, $48 million to our U.S. pension plan, $16 million to our postemployment plans, and immaterial contributions to our U.S. postretirement plan.
Previous wording
Cash and Cash Equivalents Held by Foreign Subsidiaries Cash and cash equivalents held by our foreign subsidiaries at March 31, 2026 and December 31, 2025 was $278 million and $299 million, respectively. Under current tax laws and regulations, if cash and cash equivalents and short-term investments held outside the U.S. are distributed to the U.S. in the form of dividends or otherwise, we may be subject to additional U.S. income taxes and foreign withholding taxes, which could be significant.
Current wording
Cash and Cash Equivalents Held by Foreign Subsidiaries Cash and cash equivalents held by our foreign subsidiaries at June 30, 2026 and December 31, 2025 was $291 million and $299 million, respectively. Under current tax laws and regulations, if cash, cash equivalents and short-term investments held outside the U.S. are distributed to the U.S. in the form of dividends or otherwise, we may be subject to additional U.S. income taxes and foreign withholding taxes, which could be significant.
Previous wording
Share Repurchase Program During the three months ended March 31, 2026, we repurchased approximately 0.4 million shares under our stock repurchase program for an aggregate purchase price of $15 million, including commissions and fees. The repurchases were funded primarily though cash generated from operations and available liquidity. We do not anticipate repurchasing any additional shares during the remainder of the year.
Current wording
Share Repurchase Program During the six months ended June 30, 2026, we repurchased approximately 0.4 million shares under our stock repurchase program for an aggregate purchase price of $15 million, including commissions and fees. The repurchases were funded primarily through cash generated from operations and available liquidity. In connection with the Mergers, we have suspended our share repurchase program.
Previous wording
As of March 31, 2026, our cash and cash equivalents totaled $433 million, our debt totaled $2,820 million and our borrowing capacity under our Revolving Credit Facility was $366 million.
Current wording
As of June 30, 2026, our cash and cash equivalents totaled $429 million, our debt totaled $2,829 million and our borrowing capacity under our Revolving Credit Facility was $335 million.
Previous wording
Our ability to generate positive cash flows from operations is dependent on general economic conditions and the competitive environment in our industry, and is subject to the business and other risk factors described in Item 1A of Part I of our 2025 Annual Report on Form 10-K and Item 1A of Part II of this Quarterly Report on Form 10-Q (as applicable). If we are unable to generate sufficient cash from operations, or otherwise comply with the terms of our credit facilities, we may be required to seek additional financing alternatives. However, there can be no assurance that we will be able to obtain additional debt or equity financing on acceptable terms in the future.
Current wording
Our ability to generate positive cash flows from operations is dependent on general economic conditions and the competitive environment in our industry, and is subject to the business and other risk factors described in Item 1A of Part I of our 2025 Annual Report on Form 10-K, Item 1A of Part II of our Quarterly Report on Form 10-Q filed on May 7, 2026, and Item 1A of Part II of this Quarterly Report on Form 10-Q (as applicable). If we are unable to generate sufficient cash from operations, or otherwise comply with the terms of our credit facilities, we may be required to seek additional financing alternatives. However, there can be no assurance that we will be able to obtain additional debt or equity financing on acceptable terms in the future.
Previous wording
Our most critical accounting estimates pertain to revenue recognition, inventory valuation, goodwill, pension, postretirement and post-employment benefits, and income taxes. These are described in Part II, Item 7 of our 2025 Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
Our most critical accounting estimates pertain to revenue recognition, inventory valuation, goodwill, pension, postretirement and postemployment benefits, and income taxes. These are described in Part II, Item 7 of our 2025 Annual Report on Form 10-K for the year ended December 31, 2025.