NCR Atleos Reports Strong Second Quarter 2026 Results with Higher Profitability and Continued Growth in Self-Service Banking
NCR Atleos Corporation has announced strong financial results for the second quarter and first half of 2026, highlighting solid revenue performance, significant earnings growth, and continued momentum in its self-service banking and financial access solutions business. The company, which provides self-service financial technology for financial institutions, retailers, and consumers, reported improved profitability driven by growth in software and services, operational efficiencies, and expanding recurring revenue streams.
The company generated $1.10 billion in total revenue during the second quarter of 2026, maintaining a stable performance compared with the same period last year. A notable feature of Atleos’ business continues to be its recurring revenue model, with approximately 70% of quarterly revenue coming from recurring sources, including software, managed services, and ATM as a Service (ATMaaS). This predictable revenue base continues to strengthen the company’s financial foundation while supporting long-term growth.
For the first six months of 2026, total revenue reached $2.1 billion, representing a 3% increase year over year. The company’s ability to sustain revenue growth despite challenging market conditions demonstrates the resilience of its diversified business model and the increasing demand for self-service financial solutions across global markets.
Strong Profit Growth Highlights Operational Excellence
One of the strongest aspects of Atleos’ quarterly performance was its significant improvement in profitability. Net income attributable to Atleos increased to $65 million during the second quarter, representing a 67% increase compared with the same period in 2025. The company’s net income margin also improved, rising to approximately 6% of revenue, up from 4% in the prior-year quarter.
For the first half of 2026, net income attributable to the company totaled $87 million, marking an impressive 64% year-over-year increase. The results reflect successful cost management initiatives, improved operating efficiencies, and higher-margin revenue generated from software and service offerings.
Adjusted EBITDA also demonstrated strong momentum. During the second quarter, Adjusted EBITDA reached $254 million, an increase of approximately 25% compared with the previous year. For the first six months of 2026, Adjusted EBITDA totaled $426 million, up 14% year over year, reflecting continued improvements in profitability across the business.
Diluted earnings per share further underscored the company’s financial progress. Second-quarter diluted EPS increased 65% to $0.86, while adjusted diluted EPS rose 67% to $1.49, highlighting the effectiveness of Atleos’ operational strategy and disciplined financial management.
Self-Service Banking Business Continues to Expand
The company’s Self-Service Banking segment remained one of its strongest growth drivers throughout the first half of 2026.
Revenue from the segment increased 6% during the first six months of the year, while Adjusted EBITDA for the business rose 9%, demonstrating improving operational leverage.
During the second quarter alone, Self-Service Banking revenue increased 1%, despite comparisons against exceptionally strong ATM hardware sales recorded during the previous twelve months. Although hardware sales moderated from record levels, the company’s expanding software portfolio and managed services business continued to support overall growth.
Adjusted EBITDA for the Self-Service Banking segment increased 13% year over year during the quarter. Growth was primarily driven by expanding ATM as a Service (ATMaaS) deployments, higher software revenues, productivity improvements, and net tariff refunds. These gains more than offset increased operating expenses associated with higher fuel prices and elevated memory chip costs.
The company’s continued investment in software-enabled services reflects its strategic shift toward recurring revenue and long-term customer relationships rather than dependence on one-time hardware sales.
Network Business Delivers Margin Improvement
Atleos also reported resilient performance from its Network segment.
For the first six months of 2026, Network revenue remained relatively flat compared with the prior year, while Adjusted EBITDA increased 10%, indicating improved operating efficiency.
Second-quarter Network revenue declined slightly by 1%, primarily due to lower demand for cryptocurrency-related transactions. However, this decline was largely offset by strong transaction volume growth in key international markets, particularly South Africa and Australia, where customer activity continued to expand.
Despite the slight revenue decline, profitability within the Network business improved significantly. Network Adjusted EBITDA increased 23% year over year, benefiting from favorable settlement processing, lower vault cash costs, and ongoing productivity initiatives.
The company’s Allpoint network also continued to deliver encouraging performance. Core transaction volumes remained strong throughout the quarter, while deposit transactions exceeded one million during Q2. Growth was supported by expanded relationships with one of the world’s largest convenience retail chains and the renewal of a major prepaid financial services program.
Gross Margin Improves Significantly
Atleos achieved meaningful improvements in gross profitability during the quarter.
Gross margin increased to 28.0%, compared with 22.9% during the second quarter of 2025. On an adjusted basis, gross margin improved even further, rising from 24.9% to 30.2%.
Several factors contributed to the stronger margin performance. The company benefited from net tariff refunds, a more favorable mix of higher-margin software and services revenue, productivity initiatives across operations, and improved settlement processing within the transaction business. Lower vault cash costs also supported profitability.
These positive developments helped offset inflationary pressures resulting from increased fuel costs and higher prices for memory chips and other components.
Cash Flow and Financial Position
Net cash generated from operating activities totaled $30 million during the second quarter. Adjusted unrestricted free cash flow reached $16 million, reflecting continued investment in business operations while maintaining financial discipline.
Management indicated that the company expects stronger earnings generation and improved cash flow conversion during the remainder of 2026. These improvements are expected to support additional debt reduction and strengthen the company’s balance sheet ahead of its planned merger transaction.
Leadership Highlights Strategic Progress
Chief Executive Officer Tim Oliver described the quarter as another strong performance that demonstrates the success of Atleos’ long-term strategy.
According to Oliver, service-led growth initiatives and continued investment in innovative products are encouraging financial institutions and retailers to adopt Atleos’ integrated self-service banking solutions. He noted that software and services continued to lead growth during the first half of the year, while ATM hardware revenue remained at historically strong levels established during 2025.
Oliver also highlighted that operational productivity programs successfully offset geopolitical pressures and higher operating costs, allowing the company to significantly improve profit margins.
Brink’s Merger Moves Closer to Completion
Management also provided an update regarding the company’s proposed merger with The Brink’s Company.
Regulatory and administrative approval processes continue to progress, with the companies now expecting the transaction to close early in the first quarter of 2027, earlier than previously anticipated.
A significant milestone was achieved at the end of June when shareholders of both companies overwhelmingly approved the proposed transaction. Management believes the combination will strengthen financial access services, expand innovation opportunities, enhance customer offerings, and create long-term value for employees and shareholders.
Chief Financial Officer Andy Wamser stated that the company has successfully completed several important regulatory milestones while continuing to make steady progress toward closing the transaction. He emphasized that Atleos remains focused on improving earnings, increasing cash flow generation, and reducing net leverage before the merger is finalized.
About Atleos
Atleos (NYSE: NATL) is a leader in expanding self-service financial access, with industry-leading ATM expertise and experience, unrivaled operational scale including the largest independently-owned ATM network, always-on global services and constant innovation. Atleos improves operational efficiency for financial institutions, drives footfall for retailers and enables digital-first financial self-service experiences for consumers. Atleos is ranked #12 in Newsweek’s prestigious 2025 Top 100 Global Most Loved Workplaces® list.
