Conduent Third-Quarter 2025 Financial Results
Conduent Incorporated (NASDAQ: CNDT) reported mixed third-quarter 2025 results, showing improved profitability amid ongoing revenue declines. Following the announcement, the stock dropped about 4%, trading near $2.22, reflecting investor caution despite operational progress.
Revenue and Profitability
For the quarter ending September 30, 2025, Conduent's revenue was $767 million, down approximately 5% year over year. Adjusted EBITDA increased by about 25% to $40 million, improving the margin to 5.2% from 4.1% a year earlier. This margin growth was attributed to better cost discipline and operational efficiencies.
GAAP Results and Cash Flow
On a GAAP basis, the company recorded a pre-tax loss of $38 million, a significant change from the $159 million profit reported in Q3 2024. Diluted GAAP earnings per share declined to a loss of $0.30, compared to earnings of $0.72 last year.
Operating cash flow was negative $39 million, and adjusted free cash flow was negative $54 million, highlighting ongoing challenges in cash generation.
Strategic Highlights
- Completed a debt refinancing program
- Repurchased approximately 4.7 million shares, indicating management’s confidence in long-term company value
- Maintained strong liquidity with about $264 million in cash and an unused $198 million credit facility
“Margin expansion reflected stronger cost discipline and operational efficiencies.”
Author's summary: Despite declining revenue and negative cash flow, Conduent improved profitability through cost control and maintained solid liquidity, signaling cautious optimism for its financial future.