Conduent Cuts 2025 Revenue Forecast, CEO Affirms Capital Plan Stability
Conduent Inc. (NASDAQ: CNDT) shares dropped Friday morning after the company reported weaker-than-expected third-quarter 2025 results.
Q3 Financial Highlights
- Revenue fell to $767 million, a 5% decline compared to the previous year and below the analyst estimate of $794.33 million.
- Adjusted revenue also decreased by 1.8%, standing at $767 million.
- GAAP diluted EPS showed a loss of 30 cents, a sharp contrast to earnings of 72 cents in the prior year.
- Adjusted EPS posted a loss of 9 cents, missing the consensus estimate of a 7 cents loss but improving from a 14 cents loss one year earlier.
- Adjusted EBITDA increased to $40 million, with the margin widening to 5.2% from 4.1% last year, indicating operational progress despite revenue pressure.
Operational Metrics and Cash Flow
- New business signings in Annual Contract Value (ACV) reached $111 million.
- Net ARR Activity Metric (TTM) was $25 million, reflecting continued pipeline and recurring revenue growth.
- Operating cash flow was negative $39 million for the quarter.
- Adjusted free cash flow was negative $54 million.
- At quarter-end, Conduent held $264 million in cash and maintained $198 million of unused capacity in its renewed credit facility.
- Total debt amounted to $713 million.
- The company repurchased approximately 4 million shares during the period.
“Despite the challenges, our adjusted EBITDA margin expansion signals operational improvements, and our capital plan remains on track supported by a healthy cash cushion,” stated the CEO.
Conduent’s third-quarter results show revenue pressures but operational improvements and strategic financial management underpin confidence in their capital plan.