Conduent Stock Update: Profit Gains Amid Revenue Decline
Conduent Incorporated (NASDAQ: CNDT) released its third-quarter 2025 financial results, showing a mixed performance with improved profits alongside decreasing revenues. Following the announcement, the stock fell approximately 4% to around $2.22, reflecting investor caution despite operational improvements.
Financial Highlights for Q3 2025
- Revenue totaled $767 million, marking a 5% decline from the same period last year.
- Adjusted EBITDA increased by 25% to $40 million, raising the margin to 5.2% from 4.1% in 2024.
- The margin growth was attributed to stronger cost control and improved operational efficiency.
- GAAP figures showed a pre-tax loss of $38 million, compared to a $159 million profit in Q3 2024.
- Diluted GAAP earnings per share declined to a loss of $0.30, versus earnings of $0.72 the previous year.
- Operating cash flow was negative $39 million, with adjusted free cash flow at negative $54 million, indicating ongoing challenges in cash generation.
Strategic Developments
Management emphasized key actions taken during the quarter:
- Completion of a debt refinancing program.
- Repurchase of about 4.7 million company shares, signaling confidence in the firm's future value.
- Maintained solid liquidity with approximately $264 million cash on hand and an unused $198 million credit line.
"The margin expansion reflected stronger cost discipline and operational efficiencies."
The overall results reveal a company balancing profitability improvements with persistent revenue and cash flow challenges.