NCR Atleos Corporation, headquartered in Atlanta, Georgia, operates in the financial technology sector, focusing on self-directed banking solutions, including ATM and ITM technology. The company was spun off from NCR Corporation (now NCR Voyix Corporation) on October 16, 2023, and has since reported its financial performance on a consolidated basis in accordance with GAAP.

For the three months ended September 30, 2024, Atleos reported total revenue of $1,078 million, reflecting a 1% increase year-over-year. This growth was primarily driven by a rise in recurring service revenue, which accounted for 73.3% of total revenue, up 3% from the previous year. However, product revenue decreased by 7% to $235 million, attributed to declines in non-core commerce-related revenue, ATM and hardware revenue, and Bitcoin-related revenues. Service revenue increased by 3%, bolstered by growth in core self-service banking and network offerings.

Net income attributable to Atleos for the third quarter was $24 million, a significant increase of 141% compared to the same period last year. For the nine months ended September 30, 2024, total revenue reached $3,209 million, a 4% increase from $3,093 million in the prior year, with net income rising 45% to $45 million.

Adjusted EBITDA for the nine months ended September 30, 2024, was $562 million, representing 17.5% of total revenue, a slight increase from the previous year. The company’s gross margin for the third quarter was $262 million, down from $268 million in 2023, with gross margin as a percentage of revenue decreasing to 24.3%. Factors impacting gross margin included lower margins from commercial agreements and increased rental and labor costs.

In terms of strategic developments, Atleos has increased its revolving credit commitments by $100 million to a total of $600 million and established new Term A-2 loans amounting to $300 million. The proceeds from these loans are intended for prepayment of existing debt and general corporate purposes. The company has also made significant adjustments to its financial statements due to errors identified in separation accounting entries, impacting its balance sheet and stockholders' equity.

As of September 30, 2024, Atleos had total debt of $3,067 million, with cash and cash equivalents totaling $395 million. The company continues to face macroeconomic pressures, including higher interest rates and increased logistics costs, which may impact its business in the short term.