Q3 FY2026
Filed Oct 28, 2026Diebold Nixdorf Reports Third Quarter Revenue and Adjusted EBITDA Growth
Third-quarter revenue and adjusted EBITDA increased year over year, led by Retail growth, but GAAP profitability, gross margin, operating cash flow and free cash flow declined, and full-year adjusted EBITDA, free cash flow and adjusted EPS outlooks were reduced.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total net salesGAAP | $994.3M | – | 5.2% |
| Q3 2026 total net salesnon-GAAP | $990.9M | – | 4.8% |
| Q3 2026 Services net salesGAAP | $565M | – | 3.8% |
| Q3 2026 Services net salesnon-GAAP | $562.6M | – | 3.4% |
| Q3 2026 Products net salesGAAP | $429.3M | – | 7.1% |
| Q3 2026 Products net salesnon-GAAP | $428.3M | – | 6.8% |
| Q3 2026 gross profitGAAP | $247.2M | – | 0.9% |
| Q3 2026 gross profitnon-GAAP | $250.4M | – | 1.0% |
| Q3 2026 gross marginGAAP | 24.9% | – | (100) bps |
| Q3 2026 gross marginnon-GAAP | 25.3% | – | (90) bps |
| Q3 2026 operating expenses, netGAAP | $208.4M | – | 21.7% |
| Q3 2026 operating expenses, netnon-GAAP | $157.8M | – | (2.1)% |
| Q3 2026 operating profitGAAP | $38.8M | – | (47.4)% |
| Q3 2026 operating profitnon-GAAP | $92.6M | – | 6.8% |
| Q3 2026 operating marginGAAP | 3.9% | – | (390) bps |
| Q3 2026 operating marginnon-GAAP | 9.3% | – | 10 bps |
| Q3 2026 net incomeGAAP | $7.1M | – | – |
| Q3 2026 net income attributable to Diebold NixdorfGAAP | $6.6M | – | (83.9)% |
| Q3 2026 net income attributable to Diebold Nixdorfnon-GAAP | $46.2M | – | (9.2)% |
| Q3 2026 net income marginGAAP | 0.7% | – | (360) bps |
| Q3 2026 net income marginnon-GAAP | 4.7% | – | (70) bps |
| Q3 2026 diluted earnings per shareGAAP | $0.19 | – | – |
| Q3 2026 adjusted diluted earnings per sharenon-GAAP | $1.34 | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $127.8M | – | 4.8% |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 12.9% | – | – |
| Q3 2026 net cash provided by (used in) operating activitiesGAAP | −$47.4M | – | (226.7)% |
| Q3 2026 free cash flow (use)non-GAAP | −$60.3M | – | (346.1)% |
| Q3 2026 free cash flow (use), excluding discrete tax paymentsnon-GAAP | −$45.9M | – | (287.3)% |
| Nine months ended September 30, 2026 total net salesGAAP | $2.82B | – | 4.3% |
| Nine months ended September 30, 2026 total net salesnon-GAAP | $2.81B | – | 3.9% |
| Nine months ended September 30, 2026 gross profitGAAP | $699.8M | – | 2.7% |
| Nine months ended September 30, 2026 gross profitnon-GAAP | $721.2M | – | 2.5% |
| Nine months ended September 30, 2026 gross marginGAAP | 24.8% | – | (40) bps |
| Nine months ended September 30, 2026 gross marginnon-GAAP | 25.7% | – | (30) bps |
| Nine months ended September 30, 2026 operating profitGAAP | $128.8M | – | (19.3)% |
| Nine months ended September 30, 2026 operating profitnon-GAAP | $235.7M | – | 13.5% |
| Nine months ended September 30, 2026 net income attributable to Diebold NixdorfGAAP | $27.1M | – | (39.8)% |
| Nine months ended September 30, 2026 net income attributable to Diebold Nixdorfnon-GAAP | $103.9M | – | 36.9% |
| Nine months ended September 30, 2026 adjusted EBITDAnon-GAAP | $347.5M | – | 8.5% |
| Nine months ended September 30, 2026 net cash provided by (used in) operating activitiesGAAP | −$29.3M | – | (135.2)% |
| Nine months ended September 30, 2026 free cash flow (use), excluding discrete tax paymentsnon-GAAP | −$36.2M | – | (183.6)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 BankingSigned a contract for more than 500 DN Series® cash recyclers with one of the largest banks in North America; achieved a Latin America Branch Automation Solutions win for 360 in-branch DN Series cash recyclers; won a competitive deal for 1,450 ATMs in Asia. | $698.2M | – | – |
| Q3 2026 RetailNew North America regional grocer win for ~1,200 point-of-sale lanes across 200 stores; European win to refresh 6,000 self-checkout units; services agreement valued at more than $25 million for electronic shelf label technology. | $296.1M | – | 16% revenue growth YoY |
Full-year 2026 outlook
- RevenueNon-GAAP Revenue – $3.86B - $3.90B
- NoteAdjusted EBITDA: $490M - $510M
- NoteFree Cash Flow: $190M - $210M
- NoteAdjusted Earnings Per Share: $4.50 - $4.85
- NoteGAAP Revenue prior guidance: $3.86B - $3.94B
- NoteCurrent revenue guidance excludes non-core Turkey entity revenue of approximately $10 million year-to-date in 2026.
Capital returns
- Board authorizes new $250 million share repurchase program.
- Treasury share activity for the nine months ended September 30, 2026: $(154.9) million.
- Treasury share activity for the nine months ended September 30, 2025: $(79.6) million.
What drove it
- Retail revenue grew 16% year over year, supported by expansion in North America and European leadership position.
- Q3 GAAP Services net sales were $565.0 million and Products net sales were $429.3 million.
- Management cited continued strength in Retail, improvement in Banking and disciplined operating expense management.
- The company is winding down a non-core Turkey operation, expected to be completed by the end of 2026.
- The company cited productivity improvements and operating expense discipline as partial offsets to product mix and raw-material cost pressures.
Concerns
- Q3 GAAP gross margin was 24.9%, compared with 25.9% in the prior year; non-GAAP gross margin was 25.3%, compared with 26.2%.
- Q3 GAAP operating profit was $38.8 million, compared with $73.8 million, and GAAP net income attributable to Diebold Nixdorf was $6.6 million, compared with $41.1 million.
- Q3 operating cash flow was $(47.4) million and free cash flow excluding discrete tax payments was $(45.9) million, compared with $37.4 million and $24.5 million, respectively.
- Management updated the outlook to reflect a change in revenue mix, raw-material cost pressures, lower expected earnings and working capital requirements.
- The company expects to remit additional discrete German estimated tax payments during Q4 2026 for the 2024 and 2025 tax years.
What to watch
- Execution against full-year non-GAAP revenue guidance of $3.86B - $3.90B.
- Delivery of full-year adjusted EBITDA of $490M - $510M and adjusted earnings per share of $4.50 - $4.85.
- Free cash flow performance against the $190M - $210M outlook and the impact of German cash tax payments.
- Retail growth and the margin profile of the product mix.
- Raw-material cost pressures, productivity improvements, inventory efficiency and operating expense discipline.
- Timing and amount of repurchases under the new $250 million authorization.
Balance sheet and cash flow
- Cash, cash equivalents, and restricted cash as of September 30, 2026: $184.9 million; December 31, 2025: $387.3 million.
- Long-term debt as of September 30, 2026: $949.3 million; December 31, 2025: $938.5 million.
- Debt instruments as of September 30, 2026: $(976.4) million; December 31, 2025: $(970.7) million.
- Net debt as of September 30, 2026: $(791.5) million; December 31, 2025: $(554.3) million.
- Inventories as of September 30, 2026: $561.7 million; December 31, 2025: $521.0 million.
- Trade receivables, net of allowances as of September 30, 2026: $577.4 million; December 31, 2025: $609.4 million.
- Nine-month capital expenditures: $(19.0) million; prior year: $(22.6) million.
- Nine-month capitalized software development: $(20.2) million; prior year: $(17.3) million.
- Nine-month change in cash, cash equivalents and restricted cash: $(202.4) million; prior year: $(48.7) million.
Analysis
Diebold Nixdorf reported Q3 2026 GAAP net sales of $994.3 million, up 5.2%, while non-GAAP net sales were $990.9 million, up 4.8%. Services sales were $565.0 million and product sales were $429.3 million. Retail was the principal reported growth engine, with 16% revenue growth year over year and Q3 GAAP sales of $296.1 million. Banking revenue was $698.2 million. The company highlighted banking wins for cash recyclers, branch automation and ATMs, alongside North American and European retail awards.
Profit growth was stronger on an adjusted operating measure than under GAAP. Adjusted EBITDA increased 4.8% to $127.8 million, with adjusted EBITDA margin unchanged at 12.9%. However, GAAP gross margin fell to 24.9% from 25.9%, and non-GAAP gross margin fell to 25.3% from 26.2%. GAAP operating profit declined to $38.8 million from $73.8 million, while non-GAAP operating profit increased to $92.6 million from $86.7 million. GAAP net income attributable to Diebold Nixdorf declined to $6.6 million from $41.1 million, and diluted EPS was $0.19 versus $1.11.
Cash conversion was the main weakness in the quarter. Net cash used in operating activities was $(47.4) million, compared with $37.4 million provided in the prior year, while free cash flow use excluding discrete tax payments was $(45.9) million compared with free cash flow of $24.5 million. The company attributed the result to the timing of a VAT refund and working capital requirements. It also disclosed discrete German tax payments and expects additional estimated payments in Q4 2026 for the 2024 and 2025 tax years. Cash, cash equivalents and restricted cash were $184.9 million at September 30, 2026, while net debt was $(791.5) million.
For the first nine months, GAAP sales increased 4.3% to $2,816.8 million and adjusted EBITDA increased 8.5% to $347.5 million. GAAP operating profit declined 19.3% to $128.8 million, while non-GAAP operating profit increased 13.5% to $235.7 million. The company disclosed restructuring and other savings initiative expenses, non-core Turkey operation activity, impairment of an unconsolidated subsidiary and other adjustments in arriving at non-GAAP results.
The revised full-year outlook narrows revenue guidance to $3.86B - $3.90B on a non-GAAP basis and reduces adjusted EBITDA to $490M - $510M, free cash flow to $190M - $210M and adjusted EPS to $4.50 - $4.85. Management said the changes reflect product mix, raw-material cost pressures, lower expected earnings and working capital requirements, partly offset by productivity improvements and operating expense discipline. The board also authorized a new $250 million share repurchase program.
Management, verbatim
We delivered a solid third quarter, growing both revenue and adjusted EBITDA, supported by continued strength in Retail, improvement in Banking and disciplined operating expense management. Our strategic priorities are translating into tangible progress, including new customer wins, expanding opportunities in North America Retail and continued improvements in our Services business.
Octavio Marquez, president and chief executive officer
While our underlying business performance remains encouraging, we are updating our full-year outlook to reflect a change in revenue mix and cost pressures in raw materials. We remain focused on improving profitability and cash conversion while continuing to invest in the opportunities that position Diebold Nixdorf for sustainable growth and long-term shareholder value creation.
Octavio Marquez, president and chief executive officer
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the key Q3 operating metrics.
- Full-year 2026 guidance for gross margin, operating expenses and tax rate was not reported.
- A separate previous-release outlook section was not provided; therefore, no actual-versus-prior-guidance comparison is included.
- Q3 total segment revenue year-over-year percentage changes for Banking were not reported.
- Dividend declaration or payment information was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.