Diebold Nixdorf, Incorporated (DBD) Q3 2026 Earnings Call Transcript

Operator: Hello. Good day, and welcome to Diebold Nixdorf third quarter 26 earnings call. My name is Melissa, and I will be coordinating today's call. Following our speakers' remarks, there will be a question-and-answer session. In order to ask a question, please press *1 to raise your hand. I would now like to turn the call over to our host, Maynard, Vice President of Investor Relations. Maynard, please go ahead.

Maynard Um: Hello and welcome to our third quarter 2 thousand 26 Earnings Call. To accompany our prepared remarks, we posted our slide presentation in the Investor Relations section of our website. Before we start, I will remind all participants that you will hear forward looking statements during this call. These statements reflect the expectations and beliefs of our management team at the time of the call, they are subject to risks that could cause actual results to differ materially from these statements. You can find additional information on these risks in the company's periodic and annual filings with the SEC. Participants should be mindful that subsequent events may render this information to be out of date. We will also discuss certain non GAAP financial measures on today's call. As noted on slide 3, reconciliations between GAAP and non GAAP financial measures can be found in the supplemental schedules of the presentation. With that, I will turn the call over to Octavio, who will begin on slide 4.

Octavio Marquez: Thank you, Maynard and good morning, everyone. Before discussing the quarter, I want to highlight today's announcement of a new $250 million share repurchase authorization. Our largest to date. Following our previous $200 million program. This reflects our confidence in the long term outlook of the business, the strength of our balance sheet, and our commitment to delivering value to shareholders. Turning to the third quarter. We delivered solid performance, with continued revenue and earnings growth. Good business activity, and further progress against our strategic priorities. Revenue increased 5% year-over-year to $991 million. While adjusted EBITDA also grew 5% to $128 million. Year to date, our book to bill ratio stands at 1x. In banking, we saw growth across nearly every region. In North America and Europe. We continue to see encouraging opportunities as financial institutions modernize their branches and invest in automation, software, and services. We recently hosted our largest ever banking customer event in Nashville, Tennessee. Where a consistent theme emerged. The physical branch, continues to play an important role but how banks use their branches is evolving. Financial institutions are increasingly focused on automating routine transactions and allowing employees to dedicate more time to higher value customer interactions. These trends align well with the breadth of our portfolio. In retail, we delivered another quarter of double digit growth, supported by continued strength in Europe and increasing momentum in North America. We are winning new customers, expanding existing relationships, and building a stronger foundation for future growth in the market where we see substantial opportunity. We also continue to make progress in services, and operational efficiency. Both of which are critical to improving profitability and cash generation over time. 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. We have taken pricing and operational actions that have partially mitigated these pressures but their combined effect has led us to revise our expectations for the full year outlook. Which Tom will discuss in more detail. Overall, with a strong balance sheet, continued progress against our strategic priorities, significant opportunities across banking and retail, we remain confident in our long-term outlook and focused on translating our business momentum into sustainable growth, stronger profitability and improved cash generation. Let's turn to slide 5. We are excited to announce we are in the early stages of developing a strategic collaboration with Euronet. To deliver integrated ATM outsourcing solutions globally. By combining our cash-recycling technology, software, and global service capabilities, with Euronet's ATM operations and transaction processing expertise, we can help banks improve operational efficiency, expand self-service capabilities, and create new revenue opportunities. We believe this combination of efficiency, revenue generation, and flexibility would create a differentiated value proposition for our customers. Turning to review banking on slide 6. We delivered growth in 3 of the 4 regions we serve. In North America and Europe, our 2 largest markets, as well as Latin America. The Asia-Pacific, Middle East, and Africa region faced a difficult year over year comparison. Following significant shipments of high capacity ATMs last year, along with a more complex operating environment in the Middle East. Nevertheless, we continue to see attractive opportunities across our banking portfolio in this region. In our core ATM business, we secured several important wins including an order for 520 DN Series cash recyclers with 1 of the largest banks in North America. This is an important validation of our technology and our ability to compete and win with leading global financial institutions. We also secured a contract for more than 1.45 thousand ATMs in a large market in Asia, which will further expand our installed base in that market. We are making progress with our branch automation solution strategy. Where we are expanding beyond the ATM to help financial institutions better connect their physical and digital channels. While automating more transactions within the branch. In Latin America, we secured a contract for 360 in branch cash recyclers. Together with a long-term service agreement. We also signed a significant service contract with a major Spanish financial institution to manage a network of approximately 6 thousand ATMs. These wins demonstrate how our integrated portfolio of hardware, software, and services enables banks to modernize their operations, create more seamless customer experiences across physical and digital channels, and expanding our recurring revenue opportunity. We are also beginning to extend our SmartVision AI capabilities into banking. Building on our experience in retail, we are working with financial institutions to explore how AI computer vision can improve branch operations automate processes, and enhance the customer experience. Finally, our fit for purpose portfolio continues to gain traction in India, where we expect growth in sequential unit shipments in the fourth quarter. These opportunities also include long-term service contracts, we are exploring additional geographies where this portfolio can address market specific needs as well as the expansion of the portfolio. Together, these developments reinforce our confidence in the long term opportunity across banking. From our core ATM business to broader branch automation, software, and recurring services. Let's turn to slide 7 to discuss retail. Turning to retail. We delivered another strong quarter. With revenue growing 16% year-over-year. Reflecting continued customer demand, and the significant opportunities to expand our market presence. Particularly in North America. Our North America opportunity pipeline continues to grow and we see substantial growth opportunities ahead. An important part of our strategy is to establish relationships with new customers and expand those relationships over time by demonstrating the value of our broader portfolio. A good example is a national US retailer where we began with a software integration project. Successful execution helped establish us as a trusted partner. Leading to a hardware opportunity with the potential for significant volume. And more recently, opening the door for our SmartVision AI solution. We are seeing this approach translate into additional wins. During the quarter, we secured a new customer with a regional North American grocer for approximately 1.2 thousand point-of-sale lanes across 200 stores. Each of these wins expands our customer base, and strengthens our presence in North America. Just as importantly, we are gaining market recognition and building confidence in our ability to deliver at scale, creating additional opportunities to compete for larger customer engagements. In Europe, we continue to build on our market leadership. During the quarter, we secured a 6 thousand-lane self-checkout refresh with a major grocer and a service agreement valued at more than $25 million with a UK based retailer. This service win is particularly encouraging because it demonstrates how our technology and expertise can create opportunities beyond traditional checkout solutions and help customers improve their broader retail operations. Finally, SmartVision AI continues to gain traction with major retailers Our pilots and initial deployments are meeting or exceeding customer shrink reduction targets. And we remain on track to exceed 1 thousand deployments by year end. While SmartVision AI's current revenue contribution remains relatively small, It is offered as a software as a service solution, creating a growing base of recurring software revenue. Beyond its direct software revenue contribution, SmartVision AI differentiates our broader portfolio. Helps drive hardware and service opportunities, and deepens customer relationships. Our leadership in Europe, growing momentum in North America, and increasing adoption of SmartVision AI reinforce our confidence in the long term growth opportunity ahead. Let's turn to slide 8 to discuss services. We continue to make progress against our priorities of delivering industry leading service levels, improving operational efficiency, and expanding recurring revenue opportunities. During the quarter, we maintained high levels of service performance globally, and delivered on our commitment to grow service gross margins. Service gross margin reached 27.7. Reflecting a onetime benefit of $8 million. And even when excluding that benefit, service margins grew meaningfully sequentially and year over year. Driven by operational discipline and the investments we have made in the business. We are continuing to strengthen our service delivery capabilities. In Latin America, we completed the consolidation of our regional support organization. Creating a more integrated and efficient service platform. In North America, our service fleet modernization is helping us improve technician safety and first time fix rates. These improvements matter beyond cost efficiency. Consistently delivering high service levels builds customer confidence, strengthens retention, and creates opportunity to expand our relationships. Ultimately, our service strategy is about more than maintaining equipment. It is about delivering greater value to our customers strengthening long term relationships, and creating a more predictable, profitable business. Let's turn to slide 9 and discuss our progress with lean and continuous improvement. Lean continues to be a critical part of how we operate at Diebold Nixdorf. Helping us improve safety, quality, delivery, and cost across the company. A good example is our manufacturing operation in Manaus, Brazil. Where we have made significant progress in strengthening our load for local capabilities. Through better planning, redesigned manufacturing processes, and improve warehouse operations, we have reduced lead time by several weeks and increased on time delivery to approximately 95%. We have also reduced our ATM assembly footprint by approximately 45%. And identified more than $1 million in annual freight saving opportunities. These improvements strengthen our cost competitiveness and position us to serve the Latin America market more efficiently. Safety is another important part of our lean culture. Globally, we achieved multiyear highs in safety performance. Supported by greater focus on prevention, workplace design, and root cause analysis. We are also pleased to announce that we have been recognized as 1 of America's best companies by Time Magazine. And it is a great place to work in Colombia and Costa Rica. With that, I will turn it over to Tom to review our financial performance.

Thomas S. Timko: Thank you, Octavio. Starting on slide 10. Non GAAP revenue grew to $991 million, up 5% year-over-year. Both banking and retail revenue grew with retail once again posting double digit growth. Backlog ended the third quarter at $689 million reflecting strong shipments, and shorter lead times. Order entry moderated following the strongest first half of order entry in 4 years. While we expect a couple of large tenders in the pipeline in both banking and retail in the fourth quarter. Non GAAP gross profit grew slightly year over year driven by increased revenues. Non GAAP gross margin was 25.3%, down 90 basis points year over year. Non GAAP product gross margin declined year over year to 22.1%. Down 530 basis points year over year primarily impacted by mix. In banking, lower margin product shipments in Latin America and large U.S. enterprise accounts increased versus prior year. And in retail, continued strength in point of sale volumes which more than doubled year over year impacted margins. Non GAAP service gross margin improved to 27.7% up 32 basis points year over year. Results in the quarter included a tax benefit of approximately $8 million which contributed approximately 100 basis points to service gross margin. Excluding this onetime tax benefit, gross margin still showed sequential improvement due in part to ongoing operational improvements. Non GAAP operating expenses decreased 2% year over year as we continued to see the results of our operational excellence and cost savings program. This marked the third consecutive quarter of improvement. For the full year, we expect operating expenses to decline by at least 2% year-over-year. Non-GAAP operating profit increased 7% year over year to $93 million. Now let's turn to slide 11. Adjusted EBITDA grew 5% year over year to $128 million in Q3. Adjusted EBITDA margin was 12.9%. Flat compared to prior year. Non GAAP earnings per share were $1.34 down 4% year over year but up 22% sequentially driven by improved profitability and a lower share count. Turning to free cash flow. We reported a cash use of $46 million Free cash flow was primarily impacted by the timing of a VAT refund of $12 million that we typically receive in the quarter but received on October 1st, as well as approximately $8 million of non-cash EBITDA associated with the tax credit that will convert to cash flow over the course of future periods. And higher working capital requirements. Continuing on to banking on slide 12. Revenue was up slightly, year over year. Driven by growth in Latin America, Europe, and North America. 3 key markets, and that was slightly offset by the Asia Pacific and Middle East region which faced tough comps in a complex operating environment. The banking segment delivered solid margin growth in the quarter. In 40 basis points year over year to 27.2%. Banking product gross margin was 26.3%, down 380 basis points year over year. Due to regional and customer mix. Banking service gross margins were 27.9%, up 50 basis points year over year as we started to see benefits of the investments we have been making and the onetime tax credit previously mentioned. As branches grow and evolve in markets like the U.S., demand for automation and modernization is expanding. And we believe our portfolio is built to capture that opportunity. Turning to slide 13. Retail revenue grew 16% year-over-year delivering double digit growth for the fourth consecutive quarter. With both the European and North American markets continuing to perform well. Retail gross profit was $61 million and total gross margin was 20.7%. Gross profit decreased approximately 3% year-over-year and total gross margin declined 400 basis points. Reflecting the higher mix of point of sale products and the related impact of higher memory costs as we continue to work through pricing across a portion of our customer base Retail service margin decreased 100 basis points year over year to 27.1%. Driven by higher point of sale and installation mix. The strong performance of our solutions and growing adoption among major retailers reinforces our confidence in the growth opportunity ahead. Particularly in North America where we are building momentum across a large, greenfield market for us. Continuing on to slide 14. As we look at the remainder of 2026, we are updating our outlook to reflect a more measured view of our full year performance. On revenue, we are now guiding to a revenue range of $3.86 billion to $3.9 billion This excludes contributions from our banking business in Turkey which is in the final stages of winding down in Q4. For adjusted EBITDA, our updated expectations reflect the change in product mix, with a higher proportion of retail products and lower banking product volumes than originally planned. To put this into perspective, banking products generated year to date gross margins of approximately 30% compared with year to date retail product gross margins of approximately 15% reflecting higher levels of point of sale volumes we have seen this year where higher component costs continue to weigh on profitability. In addition, throughout 2026, component cost inflation primarily related to memory, has represented an approximately $25 million net headwind. We have taken actions to mitigate these pressures. And with continued component cost volatility expected, we are strengthening our pricing practices and building greater flexibility into customer contracts as well as redesigning product features. To better manage future cost increases. Taking these factors into account, we are updating our adjusted EBITDA outlook to $490 million to $510 million For free cash flow, we are updating our outlook to $190 million to $210 million reflecting lower earnings expectations and higher working capital requirements. Finally, we now expect adjusted earnings per share of $4.50 to $4.85 for the full year considering a non GAAP effective tax rate of approximately 38%. Let's turn to slide 15 and review our financial position in capital allocation. The foundation of our company remains strong. We have a fortress balance sheet with liquidity of $495 million, as of the end of Q3. The net debt leverage ratio stood at 1.5x. Today, we announced our new $250 million ratio stood at 1.5x. Today, we announced our new $250 million share repurchase program, This demonstrates our commitment to disciplined capital allocation, and returning the vast majority of our free cash flow to shareholders. We expect free cash flow conversion for the year to be in the range of 40% to 45%. With that, I will turn it back to Octavio for closing remarks.

Octavio Marquez: Thank you, Tom. As we conclude, I want to reinforce a few key messages. We delivered a solid third quarter. With continued revenue and adjusted EBITDA growth. Strong retail momentum, and meaningful progress against our strategic priorities. At the same time, we have taken a realistic view of our full year outlook. While we are not satisfied with every aspect of our financial performance, we remain focused on actions necessary to strengthen our execution and improve profitability. Importantly, our strategic position remains strong. Banks continue investing in automation and modernization, We are expanding our presence in North America retail. And innovations like SmartVision AI are creating new opportunities across our business. With a strong balance sheet, clear strategic priorities, a continued commitment to operational discipline, we believe we are positioned to deliver sustainable long term value. Thank you for joining us today. Operator, please open the line for questions.

Operator: We will now begin the question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Matt Summerville with DA Davidson. Your line is now open. Please go ahead.

Matt Summerville: Thanks. Morning. Maybe first, can you talk about in the context of what you are seeing in the business, if there is whether it be banking or retail, how you are thinking about profitability. Ultimately, is there any sort of early read you can give us high level on what you are thinking so far as it pertains to 2027 and whether or not the performance that you are likely to track to this year basically implies an inability to deliver the analyst day targets? Yes.

Thomas S. Timko: Look, Matt, we are still going through our annual planning process as it relates to 2027 guidance and update to that. We do expect a stable banking market Retail in Europe will face tough comparisons, and we still believe there are many opportunities in North America retail to capture We are working on known headwinds like we shared earlier in the year, like the $30 million of higher cash taxes in Germany. We will see what the market looks like as it relates to our debt refinancing. But right now, we are going to be a little bit more patient in opportunistic depending on what the market conditions are. So I would say more to come in February when we get through that annual planning process.

Octavio Marquez: And, Matt, this is Octavio. Probably you know you may-- Sure. For the financial picture, I am more focused on what are we seeing out there in the market. So as we know, banking is a stable market that is you know, up slightly, down slightly. You know, Probably this year, 1 of the biggest changes that we saw is that banking will be a little bit slower than what we were hoping. As you know, we had some of these large tenders that have been pushed out that we are still expecting for the remainder of the year. Plus, you know, a little bit of a complicated operating environment that I saw in some of our Asian countries, particularly in the Middle East where, had been very strong growth markets and, you know, unfortunately, this year have been a lot more muted. But what we see, you know, Q3 was strong with growth in Latin America. Which is rebounding nicely from last year. The US remained stable and growing slightly. And Europe, you know, in the third quarter, once again, grew year over year even after a very strong year that they had last year. So what I would say for banking, we remain very confident that it is a stable market. We have not seen any significant erosion in install base global or anything like that. We are very focused on improving service quality. We are entering the renegotiation of our largest contracts in the U.S. Delivering the highest service level. So we should see some of that pricing hopefully start to flow through as we enter the year. So I would say that in banking, you know, our thesis has not changed much. Our product margins remain strong there. And, again, the opportunity is how do we accelerate opportunities. You know, which brings me. And sorry for being so long this time, Matt. Probably, I will I will jump in some of your other questions that I know you always like asking. But we are also seeing, you know, in some markets, the need for more integrated solutions. that is part of why we are partnering with Euronet in the initial stages to see how we can accelerate some of the transformation some banks are looking for. We are--we are very committed to the idea that banks look at the branch in a holistic level, ATMs, sellers, personnel, And we think that by partnering with Euronet, we not only be able to deliver some very significant operational efficiency. But also migrate and accelerate new transactions at the ATM and additional revenue generating services for banks. So we are we are excited about that. Let me let me turn to retail. This year in retail, as you have seen, has been double digit growth throughout the year. Very large European winds like this 6 thousand-unit refresh that we just had with the large grocer in Europe. It gives me confidence you know, for the future of these growth. These are, as you know, long-term rollouts, but we are excited about that and in the U.S., you know, we will continue to see very strong growth into the into the future. So I would say that you know, our focus right now is how do we better manage some of the cost pressures that we are seeing in that business. You know, some of it you know, has to do with pricing. Some of it, as Tom mentioned, has been redesigning the product. And we really made some conscious decisions on how much we pushed in some customers to make sure that we keep could keep momentum going. So I would say that our thesis is strong. We see big opportunities across both segments, and I look forward to updating you as we close the year on how we feel about 2027.

Matt Summerville: Thank you for the color. Maybe 1 back to Tom. Can you talk a little bit about what is implied in your guidance as we think about fourth quarter product gross margins, service gross margins. I know on the latter, you had been hoping to see a pretty nice sequential bump up in Q4, some of that volume driven just given seasonality of the business, but maybe expand on how we should be thinking about the margin dynamics specific to Q4.

Thomas S. Timko: Yeah. Let me hit service gross margins first. You know, so we did commit to being up, you know, 50 basis point We. We are We do not expect to be able to achieve that this year. We do see slight improvement We would expect service margins in Q4 be in the range of 26.7. And as it relates to product margins, we expect product margins for the full year closer to or for the fourth quarter, excuse me, closer to 24%. So that is that is that is the trajectory that we are on. Help me.

Octavio Marquez: I would say, Matt, just add some color here.

Matt Summerville: Go ahead.

Octavio Marquez: Sure. No. No. No. Please go ahead, Matt.

Matt Summerville: Sorry. Oh, sorry. I was just gonna say maybe just add a little bit more meat on the bone in terms of what is happening in the services business that you are not able to kind of hit the target you were looking for, especially when you talk about, you know, all time record SLAs. I guess I would assume that would also be a contributor, you know, to profitability. And then maybe if you can put a little more meat on the bone with respect to the North American retail pipeline, then I will get back in queue. Thank you.

Octavio Marquez: Sure, Matt. And you were cutting out a little bit. I hope it was only on my end, but I would say that when you think of quarter, you know, most of the impact is mix. We have a much higher volume of retail products, particularly point of sale. A little bit lower volume of ATMs. And if. As you can see, the price of. The margin differential right now is quite significant. Banking is always in the high twenties, low thirties, and retail is in the mid teens. We need to make sure that as we go into the future, we equalize those things. There will never be retail margins the same as banking, but there is clearly opportunity there as we better manage kind of the input costs. So I would say that is how you should think about product margins. it is a significant mix shift from what we had planned originally. Around services, you are absolutely correct. Better service levels should translate into higher pricing, and we are right now in the middle of our pricing renegotiations with, I would say, the majority of our customers. Our initial read is quite positive. We are seeing positive momentum there. But this translates into Q1 goodness, you know. very, very little in Q4. Contracts run on an annual basis. So when we look at the overall year, we will improve service margin slightly. You know? Not to the 50 basis points that we were targeting, as I would say, 50. Sorry. The 50. If you look at the at the report bit of a tax benefit there. So we will see improvement and that is the area where we remain very focused. I think the good news is a lot of the investments that we make to achieve these great service levels are all behind us. So now we should really start to harvest the benefit of the investments that we have made. And I think your last question was retail North America. A little bit of color there. You know, hopefully, you have seen every quarter we have laid out, more and more, especially on the pipeline, winning. Yeah. So I would say that you have seen that we have announced several new wins every quarter point of sale a couple hundred. self-checkout, you know, some initial rollouts with our AI computer vision solution. So the pipeline keeps growing, and I would say we have a great market opportunity there. The openness of our product portfolio, You know? A lot of customers looking for more modular software as many large you know, retailers are looking to modernize operations. I think if you see what I am saying, you can see that retail in North America, remains a highly untapped opportunity for us. And even though we are winning every single every single quarter, new clients, the pipeline keeps growing and everyone keeps building on the momentum that we are seeing that we have become a player in the in the market and somebody that large retailers can start trusting with their investments. Thank you.

Operator: Your next question comes from the line of Justin Ages with CJS Securities. Your line is now open. Please go ahead.

Justin Ages: Hi, morning, all. I just wanted to talk about the working capital pressures. So, obviously, understand around memory costs and inventory. Is there anything else going on? You know, you guys were having a lot of good efficiencies in accounts receivable. Just want to see if you are continuing to make progress on those fronts.

Thomas S. Timko: Yeah. Look. Our working capital as we as we look for the remainder of 2026, it is being impacted by a couple of things. We are slightly lower prepayments than we have historically seen. But that number is offset by better collections. As well as some DIO improvements as well. So I mean, net working capital, have impacted our free cash flow for the year by about $30 million higher.

Justin Ages: Okay. Great. And then switching to some of the Middle East pressures, is there a way to kind of parse, you know, the complex environment there outside of the conflict Like, are you still seeing, you know, good demand for Fit purpose devices in the region?

Octavio Marquez: Yeah. So, Justin, and I was very deliberate in talking about the complex environment in the Middle East, Africa, you know, region. If you think of some of the fastest growth markets in that part of the world are, you know, severely impacted. But as far as India goes, you know, fit for purpose will grow significantly during Q4 as through the year, we have built the pipeline and won new deals. We are excited about that opportunity still, as we mentioned, we are planning on expanding even the portfolio with the cash dispensers, and we are very excited that we will soon be launching a fit for purpose recycler specific for the Indian market. So we see demand there to remain very adequate, and we believe that we will be able to continue to grow. And hopefully, as the situation normalizes in the Middle East, those growth markets, like, Egypt, Saudi Arabia will continue to. You know, will return to their normal traditional run rate, which, frankly, this year has been very depressed. Thank you for taking the question.

Operator: Your final question comes from the line of Matthew Bryson with Wedbush. Your line is now open. Please go ahead.

Matthew Bryson: Hey, guys. Thanks for taking my question. With memory costs, I mean, they clearly weighed on gross margins and were probably the largest factor in lighter EBITDA and cash flow. Know it is something affecting all manufacturers, and it is out of your control and will eventually be offset by price and inventory adjustments. But I think there was a larger impact in Q3 than you expected. When can you be certain that you have fully accounted for the shifts in memory price, and we just do not have to worry about them anymore?

Thomas S. Timko: Right. And our second quarter sorry about that. I do not know what you heard there. So anyway, I was saying that, you know, from a first half of the year, we experienced pricing headwinds of about $15 million related to memory. The majority of which was offset by tariffs. And as we continue to work through the memory pricing environment with our customers and honor some of the commitments we made in backlog, We are now seeing headwinds of about $10 million in the second half. So all in for the year, it is about $25 million of a net headwind for us. On revenue. Sorry, on memory and pricing. In retail. The majority of the contracts should be done, you know, 95% to 98% by the time we exit Q4 with escalators and pricing provisions in for memory. So we would expect that to be, you know, vast majority behind us beginning in Q1. Thank you.

Operator: At this time, we have no further questions. I will now turn the call over to Maynard for his closing remarks.

Maynard Um: Thanks, everyone, for joining today's call and your interest in Diebold Nixdorf. If you have any follow-up questions, after the call, feel free to reach out to the Investor Relations team. Thanks again, and have a great day.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.