Segment Information and Concentrations

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

SEGMENT INFORMATION AND CONCENTRATIONS

4. SEGMENT INFORMATION AND CONCENTRATIONS

Subsequent to the Digital Banking Sale and the Spin-Off, as described in Note 1, “Basis of Presentation and Summary of Significant Accounting Policies”, the Company manages and reports the following two segments:

•Retail - We offer software-led solutions to customers in the retail industry, leading with digital to connect retail operations end to end to integrate all aspects of a customer’s operations in indoor and outdoor settings from point-of-sale (“POS”), to payments, inventory management, fraud and loss prevention applications, loyalty and consumer engagement. These solutions include retail-oriented technologies such as comprehensive API-point of sale retail software platforms and applications, hardware terminals, self-service kiosks including self-checkout (“SCO”), payment processing and merchant acquiring solutions, and bar-code scanners.

•Restaurants - We offer technology solutions to customers in the restaurant industry, including table-service, quick-service and fast casual restaurants of all sizes, that are designed to improve operational efficiency, increase customer satisfaction, streamline order and transaction processing and reduce operating costs. Our solutions include POS hardware and software solutions, payment processing and merchant acquiring services, installation, maintenance, as well as managed and professional services.

Corporate and Other includes income and expenses related to corporate functions that are not specifically attributable to any of our two individual reportable segments along with certain non-strategic businesses that are considered immaterial operating segment(s), as well as commercial agreements with NCR Atleos.

These segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the chief operating decision maker (“CODM”), the CEO. The CODM considers the budget-to-actual and forecast-to-actual variances for revenue and segment Adjusted EBITDA on a periodic basis in assessing segment performance and in allocating the Company’s resources. Adjusted EBITDA is defined as GAAP net income (loss) from continuing operations attributable to NCR Voyix plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus stock-based compensation expense; plus pension mark-to-market adjustments and other special items, including amortization of acquisition-related intangibles, acquisition-related costs, separation-related costs, cyber ransomware incident recovery costs net of insurance recoveries, fraudulent ACH disbursements costs net of recoveries, foreign currency

devaluation, transformation and restructuring charges (which includes integration, severance and other exit and disposal costs), and strategic initiative costs, among others. The special items are considered non-operational or non-recurring in nature, so are excluded from the Adjusted EBITDA metric utilized by our CODM in evaluating segment performance and are separately delineated to reconcile back to total reported GAAP net income (loss) from continuing operations attributable to the Company.

Assets are not allocated to segments, and thus are not included in the assessment of segment performance. Consequently, we do not disclose total assets by reportable segment. The accounting policies used to determine the results of the operating segments are the same as those utilized for the condensed consolidated financial statements as a whole. Intersegment sales and transfers are not material.

The following table presents summarized financial information for the Company’s reportable segments for the three months ended March 31, 2025:

In millions	Retail		Restaurants		Total
Revenue by Segment	$	420	$	191	$	611
Other					6
Total Revenue					$	617
Cost of Revenue	301		99
Other segment items(1)	54		33
Segment Adjusted EBITDA	$	65	$	59	$	124

The following table presents summarized financial information for the Company’s reportable segments for the three months ended March 31, 2024:

In millions	Retail		Restaurants		Total
Revenue by Segment	$	491	202		$	693
Other					17
Total Revenue					$	710
Cost of Revenue	354		107
Other segment items(1)	51		40
Segment Adjusted EBITDA	$	86	$	55	$	141

(1)Other segment items primarily includes selling, general and administrative expenses and research and development expenses.

The following table reconciles Segment Adjusted EBITDA to Net income (loss) from continuing operations attributable to NCR Voyix:

In millions	Three months ended March 31
	2025		2024
Segment Adjusted EBITDA	$	124	$	141
Corporate and other income and expenses not allocated to reportable segments	49		78
Depreciation and amortization	50		48
Acquisition-related amortization of intangibles	6		7
Interest expense	15		39
Interest income	(6)		(2)
Income tax expense (benefit)	(7)		(5)
Stock-based compensation expense	9		11
Transformation and restructuring costs(1)	21		24
Separation costs(2)	—		5
Loss (gain) on disposal of businesses	—		(7)
Foreign currency devaluation(3)	—		15
Fraudulent ACH disbursements(4)	—		(1)
Strategic initiatives(5)	7		—
Net income (loss) from continuing operations attributable to NCR Voyix	$	(20)	$	(71)

(1)Represents integration, severance, and other exit and disposal costs which are considered non-operational in nature.

(2)Represents costs incurred as a result of the Spin-Off.

(3)Represents gains and losses recognized during the three months ended March 31, 2024 due to changes in valuation of the Lebanese pound and the Egyptian pound.

(4)Represents Company identified fraudulent ACH disbursements from a Company bank account, net of recoveries. Additional details regarding this item are discussed in Note 1, “Basis of Presentation and Summary of Significant Accounting Policies”.

(5)Represents professional fees related to strategic initiatives which are considered non-operational in nature, as well as certain costs incurred related to the Hardware Business Transition.

Revenue is attributed to the geographic area to which the product is delivered or in which the service is provided. The following table presents revenue by geographic area for the Company:

In millions	Three months ended March 31
	2025		2024
United States	$	383	$	440
Americas (excluding United States)	43		64
Europe, Middle East and Africa	132		133
Asia Pacific	59		73
Total revenue	$	617	$	710

The following table presents the recurring revenue and all other products and services revenue that is recognized at a point in time for the Company:

In millions	Three months ended March 31
	2025		2024
Recurring revenue(1)	$	407	$	400
All other products and services	210		310
Total revenue	$	617	$	710

(1) Recurring revenue includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, cloud revenue, payment processing revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights.