Total Revenue

~1.5% increase (from $1,245.6M to $1,264.2M)

Total revenue grew modestly as the strong performance of DRS and AMS (which grew 18.8% YoY) helped offset regional underperformance, particularly in Latin America. This reflects a continuation of prior trends where high-margin services boosted overall revenue despite currency headwinds and mixed regional performance. " "

DRS and AMS

18.8% increase (from $266.3M to $316.3M)

The robust growth in DRS and AMS illustrates ongoing momentum driven by increased customer demand and continued market penetration, consistent with previous quarters where these segments achieved double-digit organic growth. This strong performance is a key driver behind overall revenue expansion. " "

Latin America

~5.7% decline (from $343.3M to $323.6M)

Revenue in Latin America declined due to significant currency headwinds—primarily related to the Argentine and Mexican pesos—exacerbating challenges despite underlying organic gains from inflation-based price increases and AMS/DRS expansion seen in earlier periods. " " "

Europe

~5.6% increase (from $294.4M to $310.8M)

European revenue increased owing to favorable contributions from organic growth, acquisitions, and price increases that build on prior Q3 trends in the region. Enhanced performance in tech-enabled solutions and operational efficiencies further supported the upward trend observed in previous periods. " " "

Organic Growth

FY 2025

no prior guidance

Total organic growth in the mid-single digits; AMS and DRS organic growth in the mid- to high teens " "

no prior guidance

Adjusted EBITDA Margin Expansion

FY 2025

no prior guidance

Expected margin expansion of 30 to 50 basis points " "

no prior guidance

Free Cash Flow Conversion

FY 2025

no prior guidance

Targeting 40% to 45% of EBITDA converted into free cash flow "

no prior guidance

Shareholder Returns

FY 2025

no prior guidance

At least 50% of free cash flow allocated to shareholder returns, including share repurchases at a similar level to 2024 "

no prior guidance

FX Impact

FY 2025

no prior guidance

FX rates are expected to create a less than 5% headwind for the full year "

no prior guidance

Tax Rate

FY 2025

no prior guidance

Expected to normalize at 28%, up from 23% in 2024 "

no prior guidance

CapEx

FY 2025

no prior guidance

CapEx as a percentage of revenue is expected to remain below 3.5% "

no prior guidance

Revenue

Q1 2025

no prior guidance

Expected to be $1.225 billion at the midpoint, reflecting mid-single-digit organic growth and a 6% currency headwind "

no prior guidance

Adjusted EBITDA

Q1 2025

no prior guidance

Expected to be between $190 million and $210 million "

no prior guidance

EPS

Q1 2025

no prior guidance

Expected to be between $1.10 and $1.40 "

no prior guidance

Segment Margins

Q1 2025

no prior guidance

Year-over-year margin expansion expected in all segments except Latin America, where restructuring actions are planned to improve margins "

no prior guidance

AMS & DRS Growth Performance and Conversion Trends

In Q1, AMS/DRS grew 18% organically with an emphasis on converting legacy accounts. " " " In Q2, they delivered 26% organic growth driven by a mix of new business, competitive wins, and conversions. " " " In Q3, the segments sustained 26% organic growth with robust backlogs and improved revenue execution. " "

In Q4, AMS/DRS achieved 23% organic growth, highlighted significant wins (such as BP and Western Union deployments) and refined conversion focus—continuing a long streak of double-digit growth. " " " "

Steady growth with evolving conversion strategies. The performance remains strong with consistent organic growth, though targets and conversion mixes adjust as new wins supplement legacy conversion efforts.

Global Services Business Performance and Rebound Dynamics

Q1 showed signs of stabilization and rebound (notably, a 4% growth in non–North America segments). " " Q2 noted cyclical softness driven by precious metals and currency flows despite maintaining healthy margins. " " " Q3 experienced challenges from subdued precious metals volatility and market softness. " " "

Q4 marked a turnaround with Global Services emerging as a bright spot driven by increased precious metals market volatility and an improved revenue outlook into early 2025. " " " "

From softness to rebound. The segment shifted from cyclical challenges to a positive rebound due to external market dynamics, indicating a potential long-term uplift.

Margin Expansion and Operational Efficiency in North America

Q1 reported record margin improvement (a 570 bp increase over two years to 16.9%) driven by pricing and cost productivity. " Q2 showed a 360 bp improvement and investments in automation and facility improvements. " " Q3 featured 120 bp improvements tempered by short-term integration delays in new routing systems. " "

In Q4, the company is targeting a near-term 20% EBITDA margin through further route optimization, technology investments, and notable direct labor cost reductions. " "

Consistently positive and accelerating. Ongoing investments and operational initiatives continue to drive margin expansion with evolving technology and process improvements.

Foreign Exchange Headwinds and Currency Volatility in Latin America

Q1 experienced an 8% FX impact, partly offset by pricing strategies. " " " Q2 faced significant FX headwinds—primarily from the Mexican peso and Brazilian real—with potential revenue impacts estimated at $50–75 million. " " " Q3 saw an 11% headwind with a notable cash settlement and a revised $100 million annual impact. " "

Q4 reported a $123 million FX headwind driven by multiple currencies (Argentine, Mexican, Brazilian) and a 10% impact in high‐margin geographies, with expectations of continued challenges into 2025. " " "

Increasing pressure and sustained volatility. FX headwinds have grown in magnitude over the periods, consistently challenging margins and revenue despite mitigation efforts.

Leadership Changes and Organizational Restructuring Initiatives

Q1 did not mention leadership changes. Q2 referenced restructuring activities in Latin America and Europe as part of operational right-sizing. " " Q3 introduced a new global leader for Global Services (Nader Antar) and initiated broader restructuring measures. " "

Q4 expanded the leadership refresh with three newly appointed global executives to head key segments, reinforcing efforts in growth, continuous improvement, and compliance. "

Emerging and intensifying. Initially absent, leadership and restructuring discussions gained prominence to support strategic growth and operational improvements across regions.

Technology Investments and Sales Cycle Optimization

Q1 emphasized integrated investments in AMS/DRS and initiatives to shorten the sales cycle (e.g. reducing time from contract to revenue). " " " " " Q2 mentioned technology investments in cash processing automation and IT system enhancements for route density. " Q3 focused on deploying new routing systems, cloud migration, and a centralized control tower while also noting improvements in sales cycle timing. " "

In Q4, the focus remains on further technology investments—such as route optimization technology, cloud migration to address legacy tech debt—and continued efforts to optimize the sales cycle in DRS through shortening time to revenue. " "

Consistently evolving. Ongoing investments in digital and operational technology, along with enhancements in sales cycle efficiency, reflect a strategic priority to drive revenue and margin improvements.

Risk Management and Security Concerns

Q1 did not include risk management discussions. Q2 noted a previous increase in security losses (a $12 million impact) from a major event in BGS. " " Q3 detailed a $10 million security loss in Latin America due to theft—with insurance coverage mitigating further impacts. " " "

Q4 did not specifically mention risk management or security incidents.

Intermittent focus. While a significant security event was detailed in Q3, the topic was not highlighted in Q4, suggesting it remains a sporadic, event-driven concern rather than a continuous focal point.

Impact of Precious Metals Market Volatility on Global Services

Q1 did not address precious metals volatility. Q2 described market softness associated with precious metals and currency flows as a drag on growth. " " " Q3 reported that limited volatility in precious metals contributed to subdued demand for movement and storage. " " "

Q4 presented a reversal, noting that increased volatility in precious metals markets is now beneficial—boosting activity and profit conversion in Global Services due to their fixed-cost infrastructure and established relationships. " " "

Reversing sentiment. Initially a headwind, precious metals volatility has shifted to a positive catalyst, potentially having a major impact on future Global Services performance.

Capital Allocation Strategies and Free Cash Flow Conversion Targets

Q1 described a disciplined approach with share repurchases, dividend increases, and a 46% free cash flow conversion target. " " " Q2 reinforced this focus with refinancing achievements and a strong repurchase capacity, targeting 42–50% free cash flow conversion. " " Q3 continued with consistent shareholder returns, maintaining leverage below 3x and setting long-term free cash flow goals near 50% conversion. " "

Q4 reiterated a robust capital allocation framework—over 60% of 2024 cash was allocated to shareholder returns, with increased share repurchases and clear 2025 free cash flow conversion guidelines (40–45%), reinforcing a target of enhanced capital efficiency. " " " "

Steady and disciplined. The company’s capital allocation and free cash flow initiatives have been consistently prioritized and refined, underpinning long-term shareholder value creation.

Evolving Market Uncertainties in Early-Stage AMS/DRS Segmentation

Q1 acknowledged that AMS/DRS markets are in the early stages, highlighting both significant growth potential and inherent uncertainties in market quantification. " " " " Q2 referenced the early innings of AMS/DRS growth without focusing deeply on uncertainties. " " "

In Q3 and Q4, there was no explicit discussion about evolving market uncertainties in early-stage AMS/DRS segmentation, with the focus shifting toward strong organic growth and operational execution.

Reduced emphasis. Initial caution around early-stage market uncertainties has receded as strong organic growth and execution have taken center stage, suggesting increased confidence in the segments’ maturity and potential.