Executive Summary

Q4 revenue declined to $682M from $796M YoY as hardware softened, but Adjusted EBITDA rose 75% to $114M (16.7% margin) on cost actions; non-GAAP diluted EPS was $0.22 and GAAP diluted EPS was $(0.08) .
Platform transition and mix improved quality: Software & Services revenue was $521M (vs $530M YoY), ARR grew to $1.64B (+5% YoY), Software ARR to $765M, and platform sites reached ~74k (+26% YoY) .
2025 outlook introduced: total revenue $2.575–$2.650B, Adjusted EBITDA $420–$445M (16.3–16.8% margin), non-GAAP EPS $0.75–$0.80, and Adjusted FCF-Unrestricted $170–$190M with 40–43% conversion; guidance assumes gross hardware recognition until ODM cutover later in 2025 .
Catalysts/overhangs: execution on Ennoconn ODM transition (hardware shift to commissions), rollout of Worldpay-enabled enterprise payments later in 2025, and tariff exposure—management expects pass-through where contracts allow; ODM and payments timing were key discussion points on the call .

What Went Well and What Went Wrong

What Went Well

Material margin expansion: Q4 Adjusted EBITDA up to $114M with margin 16.7% vs 8.2% last year, driven by ~$120M in-year cost actions and mix; normalized Adjusted EBITDA was $112M vs $71M .
Platform and ARR momentum: Platform sites up ~26% YoY to ~74k; ARR rose to $1.64B (+5%) and Software ARR to $765M (+4%) .
Strong Restaurants profitability and Retail margin uplift: Restaurants Adj. EBITDA rose to $68M (32.2% margin), Retail to $102M (22.1% margin) despite hardware declines .

Management quote: “In the fourth quarter, we delivered revenue and adjusted EBITDA in-line with our expectations... significant improvements to our cost structure and balance sheet” – CEO Jim Kelly .

What Went Wrong

Top-line pressure from hardware: Total revenue fell to $682M (from $796M YoY), with segment revenue declines in Retail (−15%) and Restaurants (−5%) given expected hardware weakness .
Software revenue modestly lower: Software revenue decreased 3% to $251M due to lower one-time licenses, partly offset by platform and payments; Services flat due to terminated Atleos commercial agreements .
ODM cutover delay: Hardware ODM transition later than originally expected (technical/logistics issues with DC systems), implying most of 2025 will still reflect gross hardware and pushing working capital benefits to 2026 .

Financial Results

Headline P&L and EPS (Reported)

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($M)	$796	$711	$682
Adjusted EBITDA ($M)	$65	$93	$114
Adjusted EBITDA Margin (%)	8.2%	13.1%	16.7%
GAAP Diluted EPS	$(1.95)	$(0.24)	$(0.08)
Non-GAAP Diluted EPS	—	$0.00	$0.22

Notes:

Non-GAAP diluted EPS excludes amortization, stock comp, transformation/restructuring, strategic initiatives, and other items per reconciliation .
Management disclosed significant Q4 adjusting items including transformation and restructuring ($35M) and strategic initiatives ($30M) .

Segment Breakdown (Revenue and Adjusted EBITDA)

Segment	Q3 2024 Revenue ($M)	Q4 2024 Revenue ($M)	Q3 2024 Adj. EBITDA ($M)	Q4 2024 Adj. EBITDA ($M)
Retail	$487	$461	$108	$102
Restaurants	$211	$211	$66	$68
Corporate & Other (Rev)	$13	$10
Corporate & Other (Adj. EBITDA)	$(81)	$(56)
Total	$711	$682	$93	$114

KPIs and Mix

KPI	Q3 2024	Q4 2024
Total ARR	$1.60B	$1.64B
Software ARR	$742M	$765M
Platform Sites	~70k	~74k
Payment Sites	~7.1k	~7k
Software & Services Revenue ($M)	$517	$521

Non-GAAP and definitions, including ARR composition and “Software & Services,” are detailed in the release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY 2025	—	$2,575–$2,650M	New
Software & Services Revenue	FY 2025	—	$1,995–$2,020M	New
Hardware Revenue	FY 2025	—	$580–$630M (gross; to shift to net commissions post-ODM)	New
Adjusted EBITDA	FY 2025	—	$420–$445M (16.3–16.8%)	New
Non-GAAP Diluted EPS	FY 2025	—	$0.75–$0.80	New
Adjusted FCF - Unrestricted	FY 2025	—	$170–$190M (40–43% conversion)	New

Context:

Guidance assumes gross hardware recognition until the ODM agreement becomes operational; outlook excludes potential tariff impacts and assumes FX at Jan 2025 levels .
Q1 2025 color: revenue to decline mid-teens YoY (tough hardware comp), with adjusted EBITDA up high-teens vs Q1 2024 and sequential improvement through 2025 .

Earnings Call Themes & Trends

Topic	Q2 2024 (8/6)	Q3 2024 (11/7)	Q4 2024 (2/27)	Trend
Strategic portfolio actions	Announced Digital Banking sale; ODM agreement with Ennoconn; cost reductions underway	Completed Digital Banking sale; major debt reduction; maintained FY24 guide	Emphasis shifts to execution and 2025 outlook; leverage ~1.6x pro forma	From planning to execution
Hardware ODM transition	Plan to move to net commission revenue post-implementation	Reiterated pro forma framework and guidance methodology	Delay into 2H25; detailed root cause (systems/DC); working capital benefit mainly 2026	Timing pushed; risk managed
Payments strategy	—	—	New 5-year Worldpay agreement to address enterprise retail; US POS processed ~$500B in 2024; ramp from spring/summer 2025	New growth vector
Mix/recurring	Drive recurring S&S; exiting one-time licenses/services	Normalized revenue/EBITDA used for comparability	Recurring to ~80% post-ODM and exits; residual $30–$40M one-time licenses by YE25	Recurrence rising
Tariffs/macro	—	—	Tariff risk acknowledged; plan to pass through where possible; excluded from guide	Watchlist item
Retail/Restaurant demand	Platform/site growth; new logos and conversions	Retail sites +47% YoY; multiple large wins	Retail services growth; Restaurants margin strength; pipeline healthy	Improved quality/mix

Management Commentary

Strategic focus and platform: “We have approximately 74,000 sites on our platform, an increase of 26% from the prior year... high teens revenue growth in the enterprise platform customers” – Jim Kelly, CEO .
Services-to-subscription shift: “We are now bundling services and software into a multiyear subscription... mutually beneficial” – Jim Kelly .
Exiting one-time revenue to tilt recurring: “Exiting certain one-time software licenses and services ($60M in 2024) … recurring composition to ~80%” – Brian Webb-Walsh, CFO .
ODM timing and rationale: “We expect to continue to recognize hardware revenue for most of 2025 … Ennoconn needs to fully replicate our infrastructure and technology” – CFO ; “All-or-nothing approach to avoid customer disruption” – CEO .
Payments expansion: “Entered a 5-year nonexclusive agreement with Worldpay… US customers processed over $500B in payments through POS in 2024… live by end of summer” – CEO .

Q&A Highlights

Enterprise payments ramp and magnitude: Worldpay integration targeted to be operational for new US retail customers as early as spring; migration by end of summer; represents a “completely new revenue source,” leveraging ~$500B US POS volume and 12B transactions processed by customers in 2024 .
One-time software licensing wind-down: Residual $30–$40M of one-time licenses by year-end 2025 if execution follows plan; strategy is subscription-first for new and existing customers .
ODM transition explanation: Delay rooted in system/logistics (SAP vs Oracle, Nashville DC readiness); decision not to split regions to avoid confusion and risk; still committed with partner .
Government contract: 5-year, $335M total contract value with defense commissary agency; incremental revenue begins ramping late Q1 .
Tariffs: Company expects to pass through where contracts allow; guidance excludes tariff effects given uncertainty .

Estimates Context

We attempted to retrieve S&P Global consensus for Q4 2024 and FY2025 (EPS, revenue, EBITDA), but the request could not be completed due to daily limits. As a result, beat/miss vs. Wall Street consensus cannot be shown at this time. When available, we anchor estimate comparisons on S&P Global consensus.

Key Takeaways for Investors

Mix improving: Despite revenue pressure from hardware, Q4 showcased meaningful margin expansion (Adj. EBITDA to 16.7%) on cost discipline and a shift toward recurring Software & Services; sustainability depends on executing the exit from one-time licenses/services and maintaining services profitability .
Execution watch: Successful Ennoconn ODM implementation (timely cutover, limited disruption) is pivotal for cash and margin—working-capital benefit now more 2026-weighted; any further delays could pressure 2025 optics .
Payments as upside optionality: Worldpay-enabled enterprise retail payments could open a large, previously underpenetrated revenue stream; initial commercialization timing (spring/summer) and attach rates will be key catalysts .
Pipeline and platform traction: ARR and platform sites continue to grow with expanding enterprise deployments across Retail and Restaurants; track platform conversions and site growth as lead indicators .
2025 framework achievable if cost program and demand hold: Guide implies EBITDA +21–28% YoY and 40–43% FCF conversion; monitor Q1 mid-teens revenue decline (tough comp), sequential EBITDA build, and any tariff-driven adjustments .
Balance sheet significantly de-risked: Post Digital Banking sale and debt paydown, pro forma net leverage ~1.6x, enabling reinvestment and opportunistic buybacks (7.3M shares repurchased by Feb) .

Additional data and reconciliations, including non-GAAP definitions and detailed schedules, are available in the company’s Q4 2024 8-K press release and exhibits .

NCR Voyix Corp (VYX)·Q4 2024 Earnings Summary