VYX

VYX is the post-spin remnant of NCR after the Atleos separation (Oct 2023) and the $2.45B Digital Banking sale to Veritas (Sept 2024), now positioned as a 'platform-powered leader in unified commerce for shopping and dining.' The strategic story is real: recurring revenue grew 3% to $1.68B and now represents 62.4% of total revenue (up from 50.9% in 2023), while software & services is 73.9% of mix. Management highlights Adjusted EBITDA of $425M (+22% YoY, 15.8% margin) and continuing-ops net income swung to +$42M from -$201M and -$733M in 2023. Trading at 0.4x sales and ~2.5x Adjusted EBITDA, the optical valuation is undemanding.

The GAAP numbers tell a harsher story. Reported FY2025 revenue fell 4.6% to $2.69B and net income collapsed 93.5% to $62M (FY2024's $958M was inflated by the Digital Banking gain). More concerning: operating cash flow was -$210M, cash dropped 68% to $231M, and current assets fell 34% — yet the company still spent $74M on buybacks and carries $1.10B of long-term debt against $948M of equity (2.92x liabilities/equity). Operating margin of 1.0% is razor-thin on a GAAP basis, and the gap between Adjusted EBITDA ($425M) and operating income ($26M) is enormous, reflecting heavy 'special items' including separation costs, cyber-ransomware expenses ($47M cumulative, $37M recovered), and restructuring.