Atleos Profit Gains Slow as Revenue Turns Lower

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue was $1.10 billion, down 2% from a year earlier, while net income attributable to Atleos was $97 million, up 273%.

NCR Atleos Corporation (NATL), a provider of self-service financial access for banks, retailers and consumers, reported third-quarter revenue of $1.10 billion, down 2% from a year earlier, after a second quarter that was flat year over year and a first quarter that rose 7%.

The Atlanta-based company said 71% of that revenue came from recurring streams. Consolidated Adjusted EBITDA was $241 million, up 10% year over year, a slower pace than the 25% increase recorded in the second quarter. Adjusted EBITDA margin expanded to 21.9% from 19.5% a year earlier.

Net income attributable to Atleos was $97 million, up 273% from a year earlier. Diluted earnings were $1.27 a share, up 274% from the year-ago quarter; adjusted diluted earnings were $1.35 a share, up 24%. Chief Financial Officer Andy Wamser said the company delivered year-over-year Adjusted EBITDA and EPS growth of 10% and 24%, respectively.

Self-Service Banking, the largest reportable segment, generated $731 million of revenue, down 2% year over year, after a 1% increase in the second quarter. The company attributed the third-quarter decline to lower hardware volumes in certain markets, partially offset by growth in software and services. Self-Service Banking Adjusted EBITDA rose 7% to $209 million, after a 13% year-over-year increase in the second quarter. The company said ATM as a Service, software and productivity initiatives more than offset higher memory and fuel costs. Self-Service Banking Adjusted EBITDA margin was 28.6%, compared with 26.3% a year earlier. ATMaaS arrangements contributed $83 million of segment revenue, up from $67 million a year earlier.

Network revenue declined 2% year over year to $322 million, after a 1% decline in the second quarter. The company said the third-quarter drop was driven by lower demand in crypto transactions. Network Adjusted EBITDA decreased 2% to $91 million, after a 23% year-over-year increase in the second quarter, which the company attributed to timing of other initiatives. Network Adjusted EBITDA margin held at 28.3%. Network Managed Units were 77.0 thousand, down from 80.9 thousand a year earlier, and last-twelve-months average revenue per unit was $16.1 thousand, down from $16.2 thousand.

Chief Executive Officer Tim Oliver said Atleos delivered strong third-quarter profit growth and a very good first nine months of 2026 despite revenue challenges from the war in the Middle East and some customers delaying buying decisions in anticipation of the combined companies’ new solutions. He said service and software paced growth in the first nine months and that productivity efforts more than offset fuel and memory costs.

Cash generation improved from the second quarter. Net cash from operating activities was $198 million, versus $30 million in the second quarter. Adjusted free cash flow-unrestricted was $156 million, versus $16 million in the second quarter. Wamser said the company had no borrowings on its revolving credit facility and further reduced net leverage. The net leverage ratio was 2.47 times at September 30, 2026, versus 2.99 times a year earlier.

The company said it continues to make progress toward completing the pending transaction with The Brink’s Company, with regulatory approvals and integration planning processing as planned. Oliver said the combination is now expected to close in early January 2027. In light of the pending transaction, Atleos said it will not host an earnings conference call or provide a financial outlook.