NCR Voyix CorpVYX
NCR Voyix Corp Revenue Disclosure
Revenue Recognition The Company derives its revenues from both products and services:
•Product revenue comprises sales of hardware and on-premise software licenses.
•Service revenue comprises sales of software-as-a-service (“SaaS”) solutions, software maintenance, professional services, installation services, payment processing and hardware maintenance.
Revenue is recognized, net of sales tax, when the Company transfers control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Accordingly, the Company follows the five-step revenue recognition model in accordance with ASC 606 Revenue from Contracts with Customers:
•identification of the contract, or contracts, with a customer;
•identification of the performance obligations in the contract;
•determination of the transaction price;
•allocation of the transaction price to the performance obligations in the contract; and
•recognition of revenue when or as the Company satisfies the performance obligations.
Product revenue
For hardware products, control is generally transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the products, which generally coincides with when the customer has assumed title and risk of loss of the products sold. Title and risk of loss typically transfer to the customer upon shipment or delivery to the customer, depending on the terms of the contract. The Company’s customers may request that delivery and passage of title and risk of loss occur on a bill and hold basis. For the periods ending December 31, 2025, 2024, and 2023, the revenue recognized from bill and hold transactions approximated less than 2% of total revenue.
The Company accounts for shipping and handling activities related to hardware deliveries as costs to fulfill the promise to transfer the associated products, rather than as a separate performance obligation. Accordingly, amounts billed for shipping and handling costs are recorded as a component of net product sales and associated costs are classified as a component of cost of products.
Software licenses may be sold as perpetual licenses or term-based licenses as part of subscription offerings. Perpetual software license revenue is recognized at a point in time when control transfers to the customer. Control is typically transferred when the customer takes possession of, or has access to, the software. Term-based license revenue is recognized at a point in time upon the commencement of the committed term of the subscription, concurrent with the possession of the license. The committed term of the contract can vary due to customer termination rights, when offered.
Service revenue
SaaS revenue primarily consists of subscription fees for providing customers access to the Company’s platform and cloud-based applications. SaaS revenue is recognized either as variable consideration directly allocated to periods based on customer usage or on a ratable basis over the contract beginning on the date that the service is made available to the customer.
The Company also sells subscriptions that include a combination of cloud-based services and on-premise term-based software licenses for a specified contract term. Significant judgment is required to determine if the products and services represent distinct promises to the customer or if they should be combined into one performance obligation. When they are combined into one performance obligation, revenue is recognized ratably over the contract term for which the service is provided.
Payment processing revenue primarily includes processing solutions for credit cards and debit cards. Under these contracts, the Company provides its customers continuous access to processing services, standing ready to process as many transactions as required over the contract term. As such, revenue is recognized daily as the services are performed. The Company follows the requirements of ASC 606-10, Principal Agent Considerations in determining whether the Company is acting as principal or as agent. Based on this analysis, revenue for these processing services is recorded net of interchange fees and assessments charged by card issuers and payment networks, as these are pass-through charges collected on their behalf.
All other services revenue consists of software maintenance, professional services, installation services and hardware maintenance. When the Company stands ready to perform these services, control is transferred and revenue is recognized ratably over the contractual period, or if applicable, after customer acceptance. Otherwise, the Company applies the ‘right to invoice’ practical expedient, for performance obligations satisfied and recognized as the services are provided and the Company invoices correspond directly with the value of the Company’s performance to date.
The Company periodically offers extended warranties, in addition to standard product warranties, in the form of product maintenance services and recognizes revenue over the service term.
Other revenue considerations
The Company enters into contracts that include multiple distinct performance obligations consisting of both products and services. For these arrangements, the Company allocates the transaction price, at contract inception, to each distinct performance obligation on a relative standalone selling price basis. The primary method used to determine standalone selling price is the price that the Company charges for that good or service when the Company sells it separately in similar circumstances to similar customers.
The nature of these arrangements can give rise to several types of variable consideration, including service level agreement credits, stock rotation rights, trade-in credits and volume-based rebates. At contract inception, the Company estimates variable consideration and includes it in the transaction price when there is a basis to reasonably estimate the amount of the fee and it is probable there will not be a significant reversal. These estimates are reassessed at each reporting date. Otherwise, variable consideration is constrained and revenue is recognized as control is transferred and it is probable that a significant revenue reversal will not occur.
Standard payment terms with customers are established based on industry and regional practices and are generally 30 days. When the period between the Company’s transfer of a product or service and when the customer payment does not exceed 12 months, we do not adjust for the effects of a significant financing component.
Remaining Performance Obligations Remaining performance obligations represent the transaction price of contracts for which products have not been delivered or services have not been performed. As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $1.3 billion. The Company expects to recognize revenue on approximately three-quarters of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. The majority of our professional services are expected to be recognized over the next 12 months but this is contingent upon a number of factors, including customers’ needs and schedules.
The Company has made three elections which affect the value of remaining performance obligations described above. We do not disclose remaining performance obligations for contracts where variable consideration is directly allocated based on usage or when the original expected duration is one year or less. Additionally, we do not disclose remaining performance obligations for contracts where we recognize revenue from the satisfaction of the performance obligation in accordance with the ‘right to invoice’ practical expedient.
Contract Assets and Liabilities Contract assets include unbilled amounts where the right to payment is not solely subject to the passage of time. Amounts may not exceed their net realizable value. Contract liabilities consist of advance payments, billings in excess of revenue recognized and deferred revenue.
Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. If the net position is a contract asset, the current portion is included in Prepaid and other current assets and the non-current portion is included in Other assets in the Consolidated Balance Sheet. If the net position is a contract liability, the current portion is included in Contract liabilities and the non-current portion is included in Other liabilities in the Consolidated Balance Sheet. As of December 31, 2025 and 2024, no contracts were in a net asset position.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2018 | Feb 28, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.