Q3 2025 NCR Voyix Corp Earnings Call

Speaker #3: Good morning , ladies and gentlemen , and welcome to the NCR Voyix Corp third quarter , 2020 Earnings Conference call . At this time , all lines are in .

Speaker #3: Listen only mode . Following the presentation , we will conduct a question and answer session . If at any time during this call , you require immediate assistance , please press star zero .

Speaker #3: For the operator . This call is being recorded on Thursday , November 6th , 2025 , and I would now like to turn the conference over to Sarah Schneider .

Speaker #3: Thank you . Please go ahead .

Speaker #4: Good morning , and thank you for joining our third quarter 2020 earnings conference call . This morning . We issued our earnings release reporting financials for the quarter ended September 30th , 2025 .

Speaker #4: A copy of the earnings release and the presentation that we will reference during this call are available on the Investor Relations section of our website , which can be found at NCR Voyix Corp and have been filed with the SEC .

Speaker #4: With me on the call today are Jim Kelly , our Chief Executive Officer , Nick East , our Chief Product Officer , Benny , President , Restaurants , Darren , president , retail and Brian Webb Walsh , our chief Financial officer .

Speaker #4: This call is being recorded and the webcast is available on the Investor Relations section of our website . Before we begin , please be advised that remarks today will contain forward looking statements .

Speaker #4: These forward looking statements are subject to risks , uncertainties and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements .

Speaker #4: For additional information on these factors , please refer to our earnings release and our other reports filed with the SEC . We caution you not to play undue reliance on these statements .

Speaker #4: Forward looking statements during this call speak only as of the date of this call , and we undertake no obligation to update them .

Speaker #4: In addition , we will be discussing our providing certain non-GAAP financial measures today , which we believe will provide additional clarity regarding our ongoing performance for full reconciliation of the non-GAAP financial measures discussed in this call to the most comparable GAAP measure , in accordance with SEC regulations .

Speaker #4: Please see our press release . Furnished as an exhibit to our form 8-K filed this morning and our supplemental materials available on the Investor Relations section of our website .

Speaker #4: With that , I would now like to turn the call over to Jim .

Speaker #5: Thanks , Sarah , and good morning , everyone . Thank you for joining us for our third quarter earnings call . Beginning with our performance , we are pleased with our third quarter results , which reflect continued progress toward the financial and operational objectives we set at the beginning of the year .

Speaker #5: I previously outlined a clear strategy to reposition the company as a software led business , supported by robust payments and service capabilities . We remain focused on executing against each of our strategic initiatives and driving profitable growth for the company .

Speaker #5: A key milestone in our strategic shift to becoming a platform powered software and services provider is the outsourcing of our hardware business . The ODM implementation remains on revised schedule with a phase transition to Entercom beginning in January .

Speaker #5: Cross-functional teams across engineering , supply chain and technical operations are actively finalizing readiness activities , validating integrations and preparing customer support processes to ensure a smooth transition .

Speaker #5: This shift will reduce capital intensity , streamline our operating model , and enable greater focus on our high margin software and services businesses .

Speaker #5: We are also modernizing legacy commercial structures across our installed base as multiyear software and services contracts come up for renewal . We are introducing price escalators to better align pricing with the value we deliver .

Speaker #5: We are applying the same disciplined approach to our payments contracts . This , coupled with the completion of the migration from the former jet front end , will provide us a foundation to scale payments more broadly .

Speaker #5: Our focus on expanding our payments presence across the enterprise , grocery , fuel and restaurant verticals will further strengthen recurring revenue and enhance our long term growth profile .

Speaker #5: Looking ahead , the company's primary growth driver will be the acceleration of innovation across the commerce platform , NCR Voyix Corp has the advantage of deep domain experience , and nearly three decades of enterprise software development , backed by more than 50 proprietary applications and thousands of purpose built features created in direct response to customer needs .

Speaker #5: We understand how retailers and restaurants operate and what they require to run their stores efficiently , serve their customers , and scale their businesses .

Speaker #5: We have now paired that industry experience and extensive application library with AI enabled development significantly accelerating the time to market for our microservices architecture and new platform capabilities .

Speaker #5: Further , this approach enables us to extend the VCP to additional vertical and geographic markets as at a faster pace and with greater precision .

Speaker #5: As the new solutions are deployed across our customer base , we expect higher margin software and connected payments revenue to represent a greater portion of our total revenue .

Speaker #5: Revenue and enhance our growth profile . Customer engagement continues to reinforce our strategy and product direction . At the next show . Last month , we previewed only our next generation platform solutions and the feedback was overwhelmingly positive .

Speaker #5: We demonstrated our ability to deliver the cloud capabilities customers have been asking for to align with their modernization priorities and validate the relevance of our platform roadmap .

Speaker #5: We expect this momentum to continue as we prepare for the NRF show in January , where we will introduce a broader suite of software and payment innovations for additional retailers .

Speaker #5: On January 9th , we will have the honor of ringing the closing bell at the New York Stock Exchange to commemorate 100 years since our initial public offering in 1926 , a milestone achieved by only 40 public companies in the NYSE history .

Speaker #5: This achievement reflects both the longevity and our ability to adapt and lead through market change . As we celebrate a century of progress , we remain guided by the same commitment to innovate and a disciplined execution that has defined our success for generations .

Speaker #5: With that , I will turn the call over to Nick , who will discuss our product acceleration initiatives and the formal introduction of the VCP and microservices architecture at the NRF .

Speaker #5: Show .

Speaker #6: Thanks , Jim , and good morning . Our software journey began 15 years ago with strategic investments and acquisitions to build a portfolio of category leading retail and restaurant applications .

Speaker #6: Today , these solutions power a significant share of global commerce , serving retailers and restaurants across more than 35 countries and representing approximately $1.4 trillion in transaction volume .

Speaker #6: Our software constitutes a significant portion of the industry's business logic library , a comprehensive brain trust that represents a massive collection of codified industry wisdom that software value , and the transaction volumes it powers every day is undeniable .

Speaker #6: But it's also trapped within a prior generation architecture , making it slower to update and harder to integrate the kind of friction modern architectures eliminate .

Speaker #6: And our customers have demanded . Beginning in 2018 , we initiated a push for modernization that is now reaching a tipping point . First , we built a SaaS based microservices platform in the cloud , which today connects nearly 78,000 of our retail and restaurant sites and enables online and in-store transactions .

Speaker #6: 24 by seven for some of the largest operators in the world . Second , we re-architected our powerful monolithic applications into microservices , unified them on a modern code base with open APIs and secure , resilient operations .

Speaker #6: Baked in . And third , we acquired the industry's only edge native application engine designed to meet the runtime challenges of modern retail and restaurant environments , enabling customers to deliver change in their physical locations at the pace of their best digital channels and without a dependency on any specific hardware manufacturer , consumer expectations continue to rise as technology cycles accelerate our customers are seeing us as a partner who will help them move faster , innovate confidently and scale profitably , NCR Voyix Corp positioned to be the platform powered leader in unified commerce for retail and restaurants .

Speaker #6: Our mission is simple: to enable our customers to accelerate new possibilities, to make every experience seamless so they keep their customers coming back.

Speaker #6: Our domain and technology experts are leveraging our extensive software footprint , together with the modern architecture of the commerce platform to accelerate the delivery of our next generation applications across our entire portfolio .

Speaker #6: Now , with the added advantage of AI enabled development tools , AI is not merely layered on top of our platform . Rather , it is integrated into the build , deployment and support of our customer environments .

Speaker #6: AI is enabling us to accelerate the availability of our application across markets and formats . As an example of bringing innovations to market , this quarter , three grocery brands went live in the US and Europe with our new modernized point of sale application .

Speaker #6: Each migrated from an older on premise point of sale and began a statewide rollouts that will accelerate in 2026 . The go live exceeded customer expectations , underscoring the agility and reliability of our platform and its role in delivering improved customer experiences .

Speaker #6: We expect this momentum to build in 2026 with more customers migrating from our current solutions and new customers adopting our platform applications for their differentiated market capabilities .

Speaker #6: We are also seeing increasing demand for cloud native microservices based architectures in the restaurant space , driven by the same forces we've experienced in retail .

Speaker #6: The need for faster innovation , easier integration and more flexible deployments , given our deep expertise and proven success modernizing retail technology , we have chosen to bring our market leading restaurant point of sale application onto the same VCP architecture .

Speaker #6: This creates a unified , modern foundation across our businesses , accelerating our roadmap and enhancing value for retailers and restaurants , and an increasing number of brands that operate combined retail and restaurant formats .

Speaker #6: As an illustration into how this modern architecture has been received , we showcase the integration of our cloud native microservices . Kitchen application with convenience store environments at the show last month in Chicago .

Speaker #6: Customers would be able to place food orders directly from a modern pump interface and pick them up inside the store , enhancing convenience while creating new in-store revenue opportunities .

Speaker #6: The integration of our kitchen application into the retail point of sale was completed in less than a week , as both were built on the microservices architecture .

Speaker #6: The validate our expansion efforts . We recently completed a comprehensive competitive market analysis supported by a third party research firm with engagements from industry analysts to assess our positioning .

Speaker #6: The results of this six month review were clear . Our strategy is aligned with that of our existing customers and the broader market .

Speaker #6: The VCP enables retailers and our restaurants to simplify their ability to accelerate their business . Additionally , our product roadmap delivers solutions that both enhance the consumer experience and optimize operational efficiencies .

Speaker #6: While our proprietary domain assets are highly differentiated . As we now shift into activation mode , rolling out our commercial programs and scaling our production environments , we remain excited about the outcomes our initiatives will drive for both our customers and our business .

Speaker #6: We look forward to showcasing our latest innovations at the National Retail Federation show in New York this January . This will be followed by six additional conferences across the markets we serve .

Speaker #6: We invite investors to join us at the Javits Center to experience the solutions firsthand and engage with our teams and customers . With that , I'll turn the call over to Benny to discuss our restaurants performance .

Speaker #6: Thanks .

Speaker #5: Nick .

Speaker #6: In the third quarter .

Speaker #7: Our restaurant business signed more than 200 new software and services customers . Our platform and payment sites increased 6% and 2% , respectively .

Speaker #7: Software IRR increased 3% and total IRR increased 7% in the quarter . In our enterprise division , we signed a multiyear platform and point of sale agreement with Marcos Pizza , one of the fastest growing pizza chains in the United States , to support its global expansion efforts .

Speaker #7: The initial phase of this rollout will commence in Mexico before the end of the year , followed by subsequent international locations . This partnership reflects the strength of our global footprint and offering , and we anticipate further growth in our enterprise business worldwide .

Speaker #7: As Jim and Nick mentioned , the company recently made the decision to leverage our edge enabled microservices architecture to bring our Aloha next generation point of sale to market , beginning with enterprise restaurants , the customer response to the initial previews of our edge enabled microservices architecture has been incredibly positive , validating our strategy and reinforcing the depth of our enterprise relationships .

Speaker #7: We plan to begin lab testing the Aloha next generation point of sale for targeted formats in the first quarter of 2026 , with broad availability across all segments .

Speaker #7: By the third quarter . I'm excited about the significant growth opportunity as we deploy our edge enabled dual cloud microservices applications and continue transforming the future of restaurant operations in payments , customer adoption of our payments Gateway solution continues to grow .

Speaker #7: This quarter , one of our existing software customers , a Mexican fast casual restaurant , with nearly 600 sites , selected , Voice Connect as their payment gateway interface .

Speaker #7: Additionally , we continue to execute on our pricing initiatives , moving to a model based on transaction volume , which provides a solid foundation for our business and is in line with the market .

Speaker #7: I will now turn the call over to Darren to discuss our retail performance .

Speaker #8: Thanks , Benny . Good morning . In the quarter , our retail business signed over 30 software and services customers . Our platform and payment sites increased 16% and 9% , respectively .

Speaker #8: Software RR increased 11% and total RR increased 4% in the quarter . Over the last two years , we have signed more than 15 mid-market and enterprise customers for our point of sale and self-checkout solutions , which will be implemented over the coming months .

Speaker #8: We continue to enhance the voice commerce platform with value added applications and direct integrations that serve both new and existing retail customers . Most recently , we significantly expanded our domestic fuel offering , signing long term agreements for commercial fleet card acceptance with two of North America's largest providers .

Speaker #8: These agreements will enable us to serve as both the point of sale provider and full service payments processor for both consumer and commercial fuel transactions .

Speaker #8: At over 18,000 locations . By managing the entire transaction lifecycle , we are enhancing the value of our integrated payments capabilities and strengthening our overall value proposition .

Speaker #8: This also materially expands our addressable market for payments in the US , with nearly $600 billion in volume running through our fuel payment gateway and $800 billion in consumer card volume .

Speaker #8: We now have the ability to target approximately $1.4 trillion in US payment volume . We also launched our next generation loyalty solution , Voyage's Loyalty .

Speaker #8: The delivery of this cloud native and microservices based application facilitated a multi year agreement with HEB , the largest grocer in Texas , and a new NCR Voyix Corp customer .

Speaker #8: We will enable promotion execution across Heb's nearly 400 store footprint to a direct integration into Heb's in-house point of sale software , demonstrating the agnostic design of the VCP and its edge enabled microservices applications .

Speaker #8: Additionally , we signed an expanded multi-year agreement with a regional grocery store alliance accompanying nearly 300 stores across three brands in the Northeastern United States .

Speaker #8: Through this partnership , we will now deliver a full suite of next generation platform solutions , including point of sale and self-checkout , loyalty and hardware maintenance across their entire estate .

Speaker #8: Finally , in services , we expanded our long standing relationship with a large multinational wholesale grocer , becoming the exclusive service integrator for over 20,000 lanes across 2000 stores in Belgium and the Netherlands .

Speaker #8: In addition to providing hardware maintenance . We will now provide vendor management and be the sole point of contact for all the brands , technology related services .

Speaker #8: This large scale expansion demonstrates the strength of our services division and its ability to meet the complex needs of our global customers . With that , I'll turn the call over to Bryan .

Speaker #5: Thank you Darren .

Speaker #9: And good morning . For the quarter , total revenue of 684 million declined 3% due to lower hardware sales and one time software and services revenue .

Speaker #9: Recurring revenue increased 5% to $425 million, driven by 7% growth in restaurants and 4% growth in retail software. RR and total segment RR increased 8% and 5%, respectively.

Speaker #9: Platform sites increased 12% to 78,000 , and payment sites increased 3% to nearly 8500 . It's important to note that the majority of our customer base consists of large enterprise brands , whose entire store or restaurant footprint is converted to the platform .

Speaker #9: Once connected in its entirety . As such , platform site growth can fluctuate depending on the timing of a complete onboarding . Adjusted EBITDA of 125 million increased 32% as margin expanded 490 basis points to 18.3% .

Speaker #9: This was primarily driven by larger than anticipated hardware margins and the previously announced cost actions . Turning to our segment results , beginning with restaurants , total segment revenue of 210 million was flat , which reflects an increase in recurring revenue , offset by declines in one time services revenue .

Speaker #9: Recurring revenue increased 7% to 146 million , driven by payments growth and the ramping of a new large customer agreement segment . Adjusted EBITDA increased 12% to 74 million as margin expanded nearly 400 basis points to 35.2% .

Speaker #9: This improvement was driven by revenue mix , coupled with a previously announced cost actions . Turning to retail total segment revenue declined 4% to 467 million , primarily due to declines in hardware sales .

Speaker #9: A one time software and services revenue . Recurring revenue increased 4% to 276 million , driven by the ramp of a new large customer agreement and platform revenue growth .

Speaker #9: Segment . Adjusted EBITDA declined 17% to 90 million , driven by lower revenue and customer adjustments tied to prior year delayed software implementations .

Speaker #9: Now resolved along with favorable expenses in the prior year period . Adjusted EBITDA margin decreased 290 basis points year over year to 19.3% , but increased 150 basis points sequentially as expected .

Speaker #9: Lastly , net corporate and other expenses improved to 39 million , which reflects the previously discussed cost initiatives . Adjusted free cash flow was 42 million for the quarter .

Speaker #9: Before considering 23 million of restructuring , cash expenditures and 3 million of accelerated product investments . We invested 38 million in capital expenditures during the quarter .

Speaker #9: For the full year , we expect CapEx to be approximately 160 million , inclusive of accelerated product investments , restructuring , cash outflows totaled 23 million for the quarter .

Speaker #9: We have now exited all of our remaining tessas with NCR at Leo's . Our winding down , our SSAs with Candescent and our approaching the ODM implementation in connection with these initiatives , we have taken incremental cost actions , including headcount reductions in the third quarter .

Speaker #9: Therefore , we now expect transformation and restructuring cash outflows for 2025 to be approximately 100 million . Our net leverage position was two times at the end of the third quarter , based on our net debt .

Speaker #9: As of September 30th and the last 12 months , adjusted EBITDA . Turning to the outlook , we now expect revenue to be between 2.65 billion and 2.67 billion .

Speaker #9: Hardware revenue is anticipated to be above prior expectations , while software and services revenue will be slightly below the lower software and services revenue is primarily due to customer adjustments tied to prior year delayed software implementations , which have now been resolved .

Speaker #9: Adjusted EBITDA is now expected to range between 420 and 435 million , and non-GAAP diluted EPs is expected to be between 85 and $0.90 .

Speaker #9: We expect adjusted free cash flow to be between 170 and 175 million , excluding restructuring and transformation costs , and accelerated product investments .

Speaker #9: With that , I will turn the call back over to Jim for closing remarks .

Speaker #5: We are encouraged by the progress across the business , our innovation engine is accelerating . Our pipeline is strengthening , and customer engagement remains constructive and aligned with our strategy .

Speaker #5: We are focused on disciplined execution and positioning the company for sustainable , profitable growth . I will now turn the call over to the operator to begin the question and answer session .

Speaker #5: Operator .

Speaker #3: Before I begin the Q&A portion , the company has an additional item to announce .

Speaker #5: Thank you . Thank you . Operator . I'd like to highlight an additional update this morning . A new six year exclusive agreement with Chipotle deepening a trusted partnership that spans more than 25 years with signed this morning .

Speaker #5: Under this agreement , Chipotle will expand the relationship with NCR Voyix Corp and become the first to implement our Aloha next generation point of sale and supporting app .

Speaker #5: Supporting applications across 4000 restaurants worldwide . Built on the commerce platform , dual cloud edge enabled microservices architecture . This first of its kind solution in the restaurant industry reflects our multi-year investment in microservices technology .

Speaker #5: And I'll add to that , that this work dates back for a number of months . We would have liked to had it at the start of the call , but we only finished it early this morning and I would like to thank the team at Chipotle to , in addition to Benny , Miguel and their teams and our GC , Kelly Starrett and Laura and the rest .

Speaker #5: This was a big effort and I think for the company , this is a very big event . I think it's a clear indication that there's a change at the company .

Speaker #5: I don't think there's a better way to see it than have a relationship that's 25 years renew for another six years with us , and it's really based on the product set that Nick has been talking about in the company has mentioned on a number of calls since I've been involved , and also our ability to execute at a level that we are our customers are expecting .

Speaker #5: So with that , I'll turn it back over to the operator and let's go to questions . Operator .

Speaker #3: We will .

Speaker #10: Now .

Speaker #3: We will now begin the question and answer session . Should you have a question , please press star , followed by the one on your telephone keypad .

Speaker #3: You will hear a three tone prompt . Acknowledging your request . And should you wish to cancel your request , please press star for two .

Speaker #3: If you are using a speaker phone , please lift your handset before pressing any keys . One moment please , for your first question .

Speaker #3: Thank you. And your first question comes from the line of Matt Summerville from DA Davidson. Please go ahead.

Speaker #11: Thanks . Congrats on that win , by the way . We talk about the price escalators . You referenced the magnitude . We should be sort of expecting how much revenue is ultimately impacted by that .

Speaker #11: And would be , you know , set benefit from what you're doing there . And maybe more importantly , can you talk about how this may be differs from Voyatzis historical practice ?

Speaker #11: And then I'll have a follow up ?

Speaker #5: Sure . Good morning . Matt . I think if you go back to whether it was the year end call or the first quarter , it was , I think I mentioned this before , but the company historically had not had escalators in all of its agreements .

Speaker #5: In some areas it did , but typically did not . And even if it did , it was unclear if if they were actually billing them accordingly .

Speaker #5: So we've just gone back to make sure the ones that were actually in the agreements are there , and we're charging accordingly . And then the secondly , where there absent as the contracts renew .

Speaker #5: So on the retail side , it tends to be every five years as a general rule . And restaurant tends to be three years .

Speaker #5: I don't think we've scoped the order of magnitude . I mean , these are not extreme increases . This is more cost of living plus something as opposed to some material increase .

Speaker #5: So I think what we'll see , and we've already started to see it . It's relatively small since it's just gotten started . But we are seeing increases on the revenue and earnings line as a result of this .

Speaker #5: And this is really the value that we're providing supporting . These are very tired old legacy applications that are continuing to operate at our at our customers .

Speaker #5: And for the company to be able to continue to invest in its business , keeping a five year contract flat over a five year time period , just degrades its value in years two , three , four and five .

Speaker #5: Because obviously we experienced cost escalators as well . And that's not the primary focus . Our primary focus is to sign new customers and then ultimately to launch all the products that Nick , that Nick outlined on the call , which we expect to see or we will have at NRF in January for the market .

Speaker #11: Thank you for that . And then just to talk about the payment side of the business , I would think these new relationships and fueling convenience have to be more needle moving in nature .

Speaker #11: Is there a way for you to to somehow quantify or directionally quantify what that maybe adds to the payment side of the business and maybe when we can expect to get a little bit more granular financial detail on on the payments performance ?

Speaker #5: Sure . I think it's a good question because a lot of what I've been outlining since I stepped into this role are the opportunities , kind of the Tam for the company , that it's not taking advantage of in the past .

Speaker #5: So just because , you know , as your last question about the opportunities on escalating prices appropriately for contract renewals , etc. , these are these are early days .

Speaker #5: I mean , this is a company that's been around for 145 years . This is not like the credit card industry where you just decide to raise prices and you raise prices across the board , either in concert with the brands or on your own initiative .

Speaker #5: That's what this is . These are long standing , important relationships for us . We're just kind of equaling the table . But I think on the on the if you're referencing the commercial side , I think we've already given the opportunity domestically .

Speaker #5: We touched 800 billion in the US alone today on our voyage Connect platform . But what we announced right after , during or right before and after next the convenience show in Chicago , a few weeks ago was two very important relationships .

Speaker #5: One for Bay and the second one , Wex . It the that enables us even though we're in the business in the sense that our point of sales support commercial fuel , we've never been on the commercial fuel payment side .

Speaker #5: And as a result , it's more difficult to do the retail forecourts if you're not really providing a complete relationship for the customer .

Speaker #5: And that's what the future holds for us is that for our large relationships on commercial fuel or just fuel in general , we're not just the point of sale any longer , we're the point of sale and we're a payments solution for both commercial and retail .

Speaker #5: So to give you an order of magnitude and these are estimates best we , you know , our data . We don't touch the payments today .

Speaker #5: But we see it flowing through through the point of sale . It's 17 billion transactions domestically . And roughly 500 billion in volume .

Speaker #5: So the US combined between what's on our connect and what's on another application called Epsilon . You're talking about 1.3 or so trillion dollars in the US .

Speaker #5: That's our Tam opportunity to now have the ability to go to customers and say , hey , we're not just the point of sale .

Speaker #5: We can also provide payments . And in this area , on commercial , we can provide it that together with the retail that you would see at at a gas station , 18,000 gas stations , it was something that Nick and I who were at next in last month .

Speaker #5: I mean , we this was a very well received because the alternative is our customers have us where the point of sale . They have somebody generally as an intermediary and then they have somebody who's doing the payments .

Speaker #5: So this gives us the opportunity to provide one solution which takes a lot of noise out of the out of the system . Now some people say , well , they like multiple players , but the problem with multiple players is we have to integrate to multiple players .

Speaker #5: We have to manage multiple players and things always slip through the cracks . There's changes that are not well coordinated . So for us to provide a single solution all the way to the actual receipt of , of of payments is , in my view .

Speaker #5: And I think what we've heard from our customers customers is going to be very well accepted . This is not just for our new next generation voice .

Speaker #5: Point of sale , but in terms of timing , I think was your other question . This can also get retrofitted onto our existing applications because those already do commercial fuel at the point of sale as well as as well as just fuel .

Speaker #5: More generally . You know , our preference is to to launch this together with our next gen . And that's that was the push at at Nacs .

Speaker #5: And that's also going to be what we're going to be focused on between now and January . And then also at NRF .

Speaker #11: Thanks , Jeff .

Speaker #12: Yep .

Speaker #3: You once again , should you have a question , please press star . Then the number one on your telephone keypad . Your next question comes from the line of Dan Perlin from RBC Capital Markets .

Speaker #3: Please go ahead .

Speaker #13: Thanks . Good morning and congratulations on that . Chipotle expansion that that's obviously very significant for you guys . And clearly a showcase win for for the Aloha platform .

Speaker #13: The question I had yeah . And that's that's huge . The the question I had is you know you've obviously had an opportunity to have conversations and actually implement the payment gateway strategy in terms of pricing .

Speaker #13: I'm just wondering what those conversations are like . I know you're talking about , you know , the value that you provide . And now that that's in motion , I'm just wondering what what the market is kind of absorbing there .

Speaker #13: And then secondarily , it sounds like global and Worldpay is closing now in the first quarter . So a little bit sooner than expected .

Speaker #13: I'm just wondering what that might offer you potentially in terms of potential accelerants , so to speak , with opportunities around Worldpay . Thank you .

Speaker #5: Okay . Look , we have a really good obviously , I worked at global . We have a really good relationship , as I do with Cameron and other people there .

Speaker #5: And I do I think the combination of the two actually works very favorably to us because global is global more so than Worldpay .

Speaker #5: And Worldpay has some capabilities that that global doesn't . So I think the combination will be additive for us . I didn't know that it was accelerating in terms of its close .

Speaker #5: We're at the tail end of migrating on both sides , getting off of the legacy jet pay application . I think in terms of the reaction from customers , I think they're all very positive , I actually have a large customer coming in next week .

Speaker #5: We're going to talk specifically on payments . I think they all like the conversation . From what I was mentioning in my or my comments with Matt having multiple intermediaries , especially in the technology world , just generally provides something that's going to break .

Speaker #5: Somebody doesn't update , it doesn't flow all the way through and presents issues . So I haven't seen any pushback as everybody just dropped their existing relationship and switched to us .

Speaker #5: No . That's going to take time . And I think people appreciate that . It's as I said earlier in my comments , you know , all this what I've been laying out are the opportunities ahead .

Speaker #5: There's huge opportunities on payments . There's huge opportunities on our next gen application , on services , etc. , so that you understand where the future of the company lies , not within just our existing customers , but new customers .

Speaker #5: I mean , it's a big organization . It's going to take some time to turn the organization , but , you know , our attrition is still at 1% .

Speaker #5: So it's not as though we're losing customers . We just have to execute and again , Chipotle I think is a very good kind of watershed event for us where a relationship when I first joined in February , was not nearly as strong as it is today , I've gotten to know both Scott and and Kurt through the process .

Speaker #5: And as our team has gotten to know them , we did some innovation work for them during their RFP process that they were very pleased with .

Speaker #5: So I think the the notion of selling other services into our customers that wasn't that weren't wasn't core to us previously . Like payments .

Speaker #5: It's not as though we're additive in terms of cost . If anything , we might be able to reduce costs for them and definitely reduce complexity , because in the end .

Speaker #5: That's what the customers are looking for . They're looking for cost savings . They're looking for efficiency , and they're looking for a solid relationship that they can rely on , which they do with us .

Speaker #13: That's great . Thank you so much .

Speaker #5: Thanks .

Speaker #12: Dan .

Speaker #3: Thank you . And your next question comes from the line of Parker Lane from Stifel . Please go ahead .

Speaker #14: Hey guys . Good morning . Thanks for taking the question , Jim . You mentioned the ODM phasing project is going to kick off in January .

Speaker #14: Just wondering if you can give an update on on how long you expect that to take place and what the phasing of that project actually looks like ?

Speaker #12: Sure . So .

Speaker #5: I think , you know , again , on the background on this , we had earlier expectations that it would go faster . There was some technology challenges on their side .

Speaker #5: And so we pulled back obviously hardware remains important to us and to our obviously to our customers . But this is a bet , I think , where we're moving as a company , this is still the the right direction .

Speaker #5: The , the expectation . There's effectively three major facilities that have to switch over . So we are intending to start that . The first , not the first day , but the first week or second week of January , start moving it in pieces .

Speaker #5: I believe we'll retain our employees that would otherwise transfer across , that have already been alerted to this . During the roughly 90 day period , I think the expectation is 90 days and could it extend beyond that ?

Speaker #5: You know , anything's possible , but we're trying to to do this in a way that has zero impact to our customers and as well makes it an easy transition for our employees .

Speaker #5: During the first quarter , we'll continue to report gross revenue as we have today . But my current expectation is that by the beginning of the second quarter , that will be on a net accounting basis , as we've outlined from the beginning .

Speaker #14: Got it . And then in your conversation , in your salespeople's conversations with your customers , I was wondering if there's any insights they're sharing on the health of the consumer and how that's informing their willingness to spend into 26 .

Speaker #14: And I guess, more importantly, as a backdrop, what sort of cyclicality have you historically seen around technology investments in response to consumer sentiment?

Speaker #14: There ?

Speaker #5: Okay . Well , I'm going to let everybody have something to say on this call . So I'll say a little bit and then I'll let Darren and Benny , who deal with the customers on that basis , probably more than I do .

Speaker #5: I mean , my , you know , Chipotle is an example . You know , this is a significant investment on their side .

Speaker #5: They're looking for the technology that we have to offer that we haven't . You know , we have we offer this on the retail side , the restaurant side historically has gone a different direction .

Speaker #5: It was more of a monolithic application than Aloha Cloud , which was being built out to replace the legacy application , which we refer to as essentials or version 19 .

Speaker #5: So I think where you're able to add value together with lowering costs , I have not seen a reluctance to customers in terms of buying , and I can use an example .

Speaker #5: When I was at the show , I was the first time I attended actually a trade show in this industry . We had three brand new products .

Speaker #5: We had no legacy products in the booth . Two of the products had only been only come together in three weeks before the show .

Speaker #5: That's how fast we're innovating . There were lines for one of them in particular , which is around our commercial fuel or fuel replacement application , and the major players in that space were very interested in what we had to show , because it looked very similar to what they had today .

Speaker #5: And I think that's a key that we have . And Nick said this in his comments , we have a library of over 50 existing applications .

Speaker #5: We know what our customers want because we're servicing it today , so we can modernize what they want . They're not having to transition to something new or reformat the way their organizations work .

Speaker #5: And in the end , it does lower the cost because we have the ability to manage the store as opposed to and you're not using third party operating systems that that provide cost updates , etc.

Speaker #5: . It's just easier . I'll stop talking and let Darren and Benny give you their view .

Speaker #8: Thanks , Jim . Hey , Parker . Yeah , the the conversations with our customers through the shows or one on one around the globe continue on a very healthy nature .

Speaker #8: You know , many of our enterprise customers are are looking at infrastructure or capability upgrades , be that on new or existing hardware solutions .

Speaker #8: But but ultimately , therefore , our microservices play and our open API models are having real appeal in terms of either elongating or sweating their existing hardware assets or coming with new hardware propositions .

Speaker #8: But bolting onto that , there's a real appeal about enhancing the servicing or the services solutions for them . As a , you know , added value feature .

Speaker #8: So those there are very healthy conversations globally on that basis . And there's a there's a real appetite for a unified commerce type model .

Speaker #8: And therefore , as Jim has outlined , bolting on the payments gateway and our payment solution is having universal appeal . Now , these are long term contracts with ourselves and with payments providers .

Speaker #8: So there's been a lot of questions about the timing of this I think as Jim's alluded to previously , that the typical contract duration in retail is , is five years in restaurant .

Speaker #8: It's shorter in terms of three . So that gives you the kind of renewal cycle of the materiality of the contract . But bolting on the additional capabilities in the interim is is coming .

Speaker #8: And typically a payments contract would , would normally be a three year cycle in both verticals . So that opens up the scale of the conversations and opportunities to switch on that unified commerce capability into our customers .

Speaker #8: In terms of the health of consumer , as we see various earnings releases from many of our retailers around the globe , I think universally it's steady .

Speaker #8: I think some in some markets , grocery supermarkets are saying , you know , they're having probably the best consumer stability or growth record for many years , and others are reporting kind of steady , low single digit performance .

Speaker #8: I think we're starting to see a trend to that unified commerce model in terms of consumer behavior . Looking at the multiplicity of channels into the retail , the retailers , we support .

Speaker #8: And I think , again , we're well positioned for that . So , you know , I don't think there's any massive revolution coming in terms of growth potential .

Speaker #8: Otherwise . But I think the steady evolution is is encouraging as we speak today , today . So I'll pass over to to Benny or Nick .

Speaker #6: Yeah . I mean , I'd add to that I speak to customers a lot and and I mentioned in my prepared remarks I was also in we've taken some grocery chains live on our new stack this quarter .

Speaker #6: And I visited those customers and was in store . I can tell you they were extremely busy and I don't think I can recall a single conversation with a customer that's grounded in a lack of consumer confidence .

Speaker #6: In fact , what I would say is making our customers hungrier to compete for their consumer business . So the key conversation is , how do they ensure they deliver the right experience ?

Speaker #6: So consumers keep returning to them . And that's really the technology conversation . They want to be able to deliver faster experiences . They want to be able to make sure that those customers have a competing offer .

Speaker #6: And that's where that's why they want to invest in technology , because technology enables them to do that . Technology enables them to be more loyal and also to be able to offer competing offers more quickly .

Speaker #6: That's the main conversation . It's like , how can we more quickly bring better competitive experiences to our customers ? And those are technology investments that they're not just willing to make .

Speaker #6: And talk about it this morning , they are making that's really about speed . Being able to accelerate the journey for their own consumers .

Speaker #6: There are specific cases where they're also investing . I would say things like loss and waste . So it's important for our customers .

Speaker #6: They do have a focus on on cost control amongst rising costs . So we do have offers and discussions about making sure that we reduce loss and waste for for our customers in both retail and restaurants .

Speaker #6: But yeah , I would say the core theme is actually looking to invest in technology in order to attract and remain loyal to their consumer base and compete over those .

Speaker #12: Customers .

Speaker #7: Yeah , I agree , I similar in restaurants . It's the same . The same trend . Acknowledge that there is economic pressure on a lot of restaurants , logistics , food costs , labor costs , labor shortage , etc.

Speaker #7: That has actually an opposite effect in terms of looking at technology restaurants. When we have conversations that are having more and more conversations on how can I leverage technology to create either the revenue acceleration, which Nick talked about, how can I get more consumers into the door?

Speaker #7: How do I understand on a 1 to 1 basis , my diners , so that I can , you know , provide the service required and repeat customers same store sales growth , etc.

Speaker #7: , but also efficiency efficiency in terms of automation . So technology that can easily integrate so that you can manage the , the journey of the consumer from online ordering , coming to the restaurant , understanding what is available in the restaurant so that you can actually offer up and make that 1 to 1 offer , etc.

Speaker #7: , all the way to automation so that I can transfer some of the things that required heavy labor from employees , store managers , and free them up and have less labor costs .

Speaker #7: All of those things are technology conversations . So we're having those conversations , whether it's in the super cycle that I refer to , that we're in , we're actually seeing a lot of RFPs looking at innovations and creations like Chipotle example that Jim , Jim provided around the innovation during the cycle .

Speaker #7: One of the key things is the ability to innovate , the ability to to capture revenue and the ability to create automation inside the restaurant .

Speaker #7: So we're having healthy conversation . Pretty good pipeline . I think that's what we're seeing .

Speaker #5: Thanks , Benny .

Speaker #14: Great . That's a great feedback . Thanks , guys .

Speaker #12: Thanks .

Speaker #3: Thank you . And there are no further questions at this time . I will now hand the call back to Jim Kelly for any closing remarks .

Speaker #12: Thank you .

Speaker #5: Operator . And thank you all for your continued interest in the company .