Revenue growth has stalled at -0.1% YoY in Q2 2026, while gross margin improved to 28.0% from 22.4% in Q1, but operating margin swung from -10.9% to 14.1% over the past year, indicating volatility.
NCR Atleos Corporation (NATL) annual income statement — 5-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 4.42B | 4.35B | 4.32B | 4.19B | 4.13B | 3.55B |
| Revenue Growth % | 3.49% | 0.86% | 3.01% | 1.45% | 16.4% | - |
| Cost of Goods Sold | 3.3B | 3.29B | 3.28B | 3.26B | 3.21B | 2.66B |
| COGS % of Revenue | - | 75.63% | 76.07% | 77.74% | 77.75% | 74.87% |
| Gross Profit | 1.12B | 1.06B | 1.03B | 933M | 919M | 892M |
| Gross Margin % | 25.35% | 24.37% | 23.93% | 22.26% | 22.25% | 25.13% |
| Gross Profit Growth % | - | 2.71% | 10.72% | 1.52% | 3.03% | - |
| Operating Expenses | 614M | 583M | 584M | 662M | 650M | 644M |
| OpEx % of Revenue | - | 13.39% | 13.53% | 15.8% | 15.73% | 18.15% |
| Selling, General & Admin | 538M | 513M | 458M | 585M | 649M | 537M |
| SG&A % of Revenue | - | 11.78% | 10.61% | 13.96% | 15.71% | 15.13% |
| Research & Development | 76M | 70M | 66M | 77M | 64M | 107M |
| R&D % of Revenue | - | 1.61% | 1.53% | 1.84% | 1.55% | 3.01% |
| Other Operating Expenses | 0 | 0 | 60M | 0 | -63M | 0 |
| Operating Income | 506M | 478M | 449M | 271M | 269M | 248M |
| Operating Margin % | 11.45% | 10.98% | 10.4% | 6.47% | 6.51% | 6.99% |
| Operating Income Growth % | - | 6.46% | 65.68% | 0.74% | 8.47% | - |
| EBITDA | 784M | 755M | 450M | 525M | 528M | 407M |
| EBITDA Margin % | 17.74% | 17.34% | 10.42% | 12.53% | 12.78% | 11.47% |
| EBITDA Growth % | 47.92% | 67.78% | -14.29% | -0.57% | 29.73% | - |
| D&A (Non-Cash Add-back) | 278M | 277M | 1M | 254M | 259M | 159M |
| EBIT | 504M | 459M | 448M | 197M | 188M | 300M |
| Net Interest Income | -257M | -264M | -317M | -90M | -31M | -49M |
| Interest Income | 6M | 6M | 10M | 0 | 0 | 0 |
| Interest Expense | 263M | 270M | 327M | 90M | 31M | 49M |
| Other Income/Expense | -273M | -289M | -310M | -164M | -112M | 3M |
| Pretax Income | 233M | 189M | 139M | 107M | 157M | 251M |
| Pretax Margin % | 5.27% | 4.34% | 3.22% | 2.55% | 3.8% | 7.07% |
| Income Tax | 35M | 27M | 47M | 239M | 50M | 64M |
| Effective Tax Rate % | 15.02% | 14.29% | 33.81% | 223.36% | 31.85% | 25.5% |
| Net Income | 196M | 162M | 91M | -134M | 108M | 186M |
| Net Margin % | 4.44% | 3.72% | 2.11% | -3.2% | 2.61% | 5.24% |
| Net Income Growth % | 48.48% | 78.02% | 167.91% | -224.07% | -41.94% | - |
| Net Income (Continuing) | 198M | 162M | 92M | -132M | 107M | 187M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | -1M | 4M | 3M | -1M | 3M |
| EPS (Diluted) | 2.59 | 2.14 | 1.23 | -1.90 | -4.15 | 2.66 |
| EPS Growth % | 282.09% | 73.98% | 164.74% | 54.22% | -256.01% | - |
| EPS (Basic) | - | 2.20 | 1.26 | -1.90 | -4.15 | 2.66 |
| Diluted Shares Outstanding | 75.8M | 75.6M | 74.2M | 70.6M | 68.4M | 69.8M |
| Basic Shares Outstanding | 73.8M | 73.5M | 72.2M | 70.6M | 68.4M | 69.8M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Quick answers to the most common questions about buying NATL stock.
For fiscal year 2025, NCR Atleos Corporation (NATL) reported total revenue of $4.35B. This represents a 22.7% increase compared to $3.55B in 2021.
NCR Atleos Corporation (NATL) is profitable, generating $162.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.7%.
NCR Atleos Corporation (NATL) reported an operating income of $478.0M, resulting in an operating profit margin of 11.0%. This margin reflects the operational efficiency of the business before interest and taxes.
NCR Atleos Corporation (NATL) generated $1.06B in gross profit for the year, representing a gross profit margin of 24.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
EPS miss and margin volatility
Metrics are mathematically derived from official filings.
Revenue Growth Stalls Near Flat
NATL's revenue growth has decelerated to roughly flat, with Q2 2026 showing a -0.1% YoY change, according to the latest quarterly report. This suggests a mature market with limited organic expansion.
Revenue has hovered around $1.1B for the past two years, with growth rates oscillating between -6.7% and +6.4% on a quarterly basis. The most recent quarter's near-zero growth indicates that the company is struggling to find new revenue streams, possibly due to the secular decline in cash usage and the lumpy nature of hardware sales. The lack of acceleration in revenue, despite management's commentary on service-led growth, suggests that the transition to AaaS may not yet be offsetting the decline in hardware sales.
Gross Margin Recovery Remains Uneven
Gross margin improved to 28.0% in Q2 2026 from 22.4% in Q1, but remains below the 26.8% peak seen in Q4 2024, as per financial statements. This volatility reflects the mix of hardware and services.
The gross margin has fluctuated between 21.0% and 28.0% over the last ten quarters, with no clear upward trend. The Q2 2026 improvement appears to be driven by a favorable product mix, but the sustainability is questionable given the high fixed costs associated with the ATM fleet. Compared to software peers like Fiserv (59.4% gross margin), NATL's margin is structurally lower, indicating a heavy reliance on hardware and services. Investors should monitor whether the AaaS model can consistently lift gross margins above the 25% threshold.
Operating Leverage Shows Signs of Strain
Operating margin swung from -10.9% in Q2 2025 to 14.1% in Q2 2026, but the recent quarter's SG&A increase of 17.7% YoY suggests limited operating leverage, based on reported figures.
Operating income has been highly volatile, with two quarters of negative operating income in the past ten. The Q2 2026 operating margin of 14.1% is above the historical average, but SG&A expenses rose to $133M from $113M a year earlier, indicating that overhead costs are not scaling down with revenue. The company's high fixed-cost structure, including field service and logistics, means that revenue declines can disproportionately impact operating income. The lack of consistent operating leverage is a concern for margin expansion.
EPS Miss Raises Earnings Quality Concerns
Q2 2026 EPS of $0.86 missed consensus by 28%, despite a 43.3% YoY increase, as reported in the latest earnings release. This discrepancy suggests potential one-time items or tax benefits inflating reported earnings.
Net income in Q2 2026 was $65M, up from $45M in Q2 2025, but the EPS growth of 43.3% is partly due to a lower share count. The significant miss versus consensus indicates that analysts expected higher profitability, possibly due to the company's own guidance or historical trends. The absence of guidance and the lack of detail on the miss's drivers raise questions about the quality of earnings. Additionally, stock-based compensation of $17M in Q2 2026 is higher than the $8M in the prior year, which could be diluting EPS more than reported.
COGS Dominates Cost Structure
COGS consistently accounts for over 70% of revenue, with Q2 2026 COGS at $794M, representing 72.1% of sales, as per income statement data. This highlights the hardware-heavy nature of the business.
The cost of goods sold is the largest expense line, driven by hardware manufacturing and field service operations. While COGS as a percentage of revenue has improved slightly from 75% in Q1 2026 to 72.1% in Q2, it remains high compared to software peers. SG&A and R&D are relatively small, but SG&A has shown variability, with Q2 2026 at $133M versus $113M in Q2 2025. The company's ability to manage COGS is critical, as any increase in component costs or labor could compress margins further.
Spin-Off Marks Operational Inflection
The spin-off from NCR in late 2023 created a pure-play ATM company, but the subsequent quarters show volatile profitability, with Q2 2025 operating loss of $120M, according to SEC filings.
The most significant inflection point is the separation from NCR, which allowed NATL to focus solely on ATM services. However, the financials since then have been erratic, with two quarters of negative operating income (Q2 2025 and Q2 2024) and a wide range of net margins from -0.8% to 7.2%. This volatility suggests that the company is still adjusting to its standalone cost structure and may be facing integration challenges. The lasting impact of the spin-off is a more focused but less diversified business, which increases sensitivity to ATM market dynamics.
Short Thesis: Margin Compression and Cash Decline
The bear case centers on the secular decline in cash usage, which could erode transaction volumes and hardware demand, while the 28% EPS miss in Q2 2026 signals potential margin pressure, as per earnings data.
Short-sellers would argue that NATL's revenue is stagnating and that the company's high fixed-cost structure makes it vulnerable to any downturn in ATM usage. The recent EPS miss, combined with no guidance, suggests that management may not have a clear line of sight to profitability. Additionally, the company's gross margin of 28% is far below software peers, and the transition to AaaS may not be enough to offset the decline in hardware sales. If cash usage continues to fall, NATL could face a structural decline in its core business, making its current valuation appear stretched.