Conduent Stock Update: Profit Gains Overshadowed by Revenue Decline
Conduent Incorporated [finance:Conduent Incorporated] released its third-quarter 2025 financial report, revealing mixed results with better profitability but ongoing revenue decreases. Despite operational improvements, the stock dropped about 4%, trading near $2.22 after the announcement, reflecting investor caution.
Third Quarter Financial Highlights
- Revenue for Q3 2025 was $767 million, down approximately 5% compared to the same period last year.
- Adjusted EBITDA increased 25% year-over-year to $40 million, with the margin rising from 4.1% to 5.2%.
- This margin growth was attributed to tighter cost controls and more efficient operations.
- On a GAAP basis, Conduent suffered a pre-tax loss of $38 million compared to a $159 million profit in Q3 2024.
- Diluted GAAP earnings per share fell to a loss of $0.30, down from earnings of $0.72 the prior year.
- Operating cash flow was negative $39 million; adjusted free cash flow was minus $54 million, signaling ongoing cash generation challenges.
Management Actions and Liquidity Position
During the quarter, Conduent completed a debt refinancing program and repurchased about 4.7 million shares, reflecting management’s confidence in the company’s future prospects.
Liquidity remains strong with approximately $264 million in cash and an unused $198 million credit facility.
"The margin expansion reflected stronger cost discipline and operational efficiencies."
Author's summary: Conduent's third-quarter results show improved profitability and cost control, but significant revenue decline and cash flow weakness continue to challenge the company’s financial health.