Conduent Cuts 2025 Revenue Forecast, But CEO Says Capital Plan On Track With Cash Cushion
Conduent Inc (NASDAQ:CNDT) shares dropped Friday morning after the company reported weaker revenue and earnings for the third quarter of 2025.
Q3 2025 Financial Results
- Revenue was $767 million, down 5% year-over-year and below the analyst estimate of $794.33 million.
- Adjusted revenue also totaled $767 million, a 1.8% decline.
- GAAP diluted earnings per share (EPS) showed a loss of 30 cents, compared to earnings of 72 cents a year earlier.
- Adjusted EPS was a loss of nine cents, missing the consensus estimate of seven cents loss but improving from a 14 cents loss a year ago.
- Adjusted EBITDA increased to $40 million, with the margin expanding to 5.2% from 4.1% the previous year, indicating operational improvement despite revenue challenges.
Business Momentum 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 pipeline and recurring revenue growth.
- Operating cash flow was negative $39 million for the quarter.
- Adjusted free cash flow was negative $54 million.
Liquidity and Debt Position
- At the end of the quarter, Conduent held $264 million in cash.
- The company maintained $198 million of unused capacity on its renewed credit facility.
- Total debt stood at $713 million.
The CEO stated that the capital plan remains on track, supported by the cash cushion.
The company also repurchased approximately 4 million shares.
Author's summary: Despite weaker revenue and losses in Q3 2025, Conduent demonstrates operational progress and maintains a solid capital plan backed by significant cash reserves and credit availability.
Would you like the author’s summary to be more formal or conversational?