Conduent Cuts 2025 Revenue Forecast, But CEO Says Capital Plan On Track With Cash Cushion

Conduent Inc [finance:Conduent Inc] shares dropped Friday morning following the release of third-quarter 2025 earnings showing lower revenue and earnings.

Q3 2025 Financial Highlights

Revenue totaled $767 million, declining 5% year-over-year and missing the analyst estimate of $794.33 million.
Adjusted revenue also decreased by 1.8%, standing at $767 million.
GAAP diluted EPS recorded a loss of 30 cents, compared to earnings of 72 cents in the prior year.
Adjusted EPS showed a loss of 9 cents, worse than the expected 7 cents loss but an improvement from a 14 cents loss a year earlier.
Adjusted EBITDA increased to $40 million, with margin expanding to 5.2% from 4.1% the previous year, indicating operational improvement despite revenue challenges.

Business Development and Cash Flow

New business signings in Annual Contract Value (ACV) reached $111 million.
The Net ARR Activity Metric (TTM) was $25 million, showing positive momentum in pipeline and recurring revenue growth.
Operating cash flow for the quarter was negative $39 million.
Adjusted free cash flow was negative $54 million.

Liquidity and Debt Position

At quarter-end, Conduent held $264 million in cash.
The company had $198 million of unused capacity in its renewed credit facility.
Total debt reached $713 million.

“Conduent's capital plan remains on track with a solid cash cushion despite near-term revenue setbacks.”

The company also repurchased approximately 4 million shares, reflecting confidence in long-term value creation.

Summary: Conduent’s Q3 2025 results show revenue pressure but improved operational efficiency and a stable capital structure supporting future growth.

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Benzinga — 2025-11-07