Oct 28, 2026 earnings call — Updated outlook and large share repurchase program
Updated full-year revenue guidance to $3.86 billion to $3.9 billion.
Revenue $1.0B (est $1.0B) · EPS $1.34 (est $1.31)
Key quotes
"We are excited to announce we are in the early stages of developing a strategic collaboration with Euronet."
"And we remain on track to exceed 1 thousand deployments by year end."
"While our third quarter performance was solid, we continue to navigate elevated component costs, particularly around memory, and unfavorable product mix and timing of certain large banking projects."
Analyst Q&A 3
2027 outlook and Q4 margins
Q (Matt Summerville · DA Davidson): Analyst asked how management is thinking about profitability for 2027 and whether current performance implies missing analyst-day targets. He also asked for detail on fourth-quarter product and service gross margins.
A: Management said they are still completing the annual planning process and will update guidance in February. They said banking is stable, Europe retail faces tough comparisons, North America retail has opportunities, and they are working on known headwinds like the $30 million of higher cash taxes in Germany. For Q4 margins they said service margins should be in the range of 26.7 and product margins closer to 24% for the quarter.
"We would expect service margins in Q4 be in the range of 26.7." — Thomas S. Timko
working capital and Middle East demand
Q (Justin Ages · CJS): Analyst asked what else is driving working capital pressure besides memory and inventory and whether receivables improvements continue. He also asked about demand in the Middle East for fit-for-purpose devices.
A: Management said working capital is affected by slightly lower prepayments, but that is offset by better collections and DIO improvements. They said net working capital has impacted free cash flow for the year by about $30 million higher. On the Middle East, they said some fast-growth markets are severely impacted but India demand for fit-for-purpose devices is growing and they will launch a recycler specific for the Indian market.
"So I mean, net working capital, have impacted our free cash flow for the year by about $30 million higher." — Thomas S. Timko
memory cost impact and timing
Q (Matthew Bryson · Wedbush): Analyst asked when management can be certain memory price shifts are fully accounted for and no longer a concern.
A: Management said they saw about $15 million of memory pricing headwinds in the first half, largely offset by tariffs, and about $10 million of headwinds in the second half. They said all in for the year it is about $25 million of a net headwind, and that the majority of retail contracts (95% to 98%) should be done by the time they exit Q4 with escalators and pricing provisions, so the vast majority should be behind them beginning in Q1.
"So all in for the year, it is about $25 million of a net headwind for us." — Thomas S. Timko