Conduent Cuts 2025 Revenue Forecast, CEO Confirms Capital Plan Stability
Shares of Conduent Inc (NASDAQ: CNDT) fell Friday morning after the company reported weaker than expected revenue and earnings for the third quarter of 2025.
Q3 Financial Highlights
- Revenue totaled $767 million, down 5% from the previous year and below the $794.33 million analysts had anticipated.
- Adjusted revenue also came in at $767 million, reflecting a 1.8% decrease from last year.
- GAAP diluted earnings per share (EPS) showed a loss of 30 cents, compared to a 72-cent gain a year earlier.
- Adjusted EPS was a loss of nine cents, missing the consensus estimate of a seven-cent loss but improving on the 14-cent loss from the prior year.
- Adjusted EBITDA increased to $40 million, with the margin improving to 5.2% from the previous year’s 4.1%, indicating operational progress despite revenue challenges.
Business Activity and Cash Flow
New business signings measured by Annual Contract Value (ACV) reached $111 million. The Net ARR Activity Metric (TTM) was $25 million, demonstrating growth in the sales pipeline and recurring revenue.
Operating cash flow was negative $39 million, while adjusted free cash flow was negative $54 million during the quarter.
Balance Sheet Position
- The company ended the quarter with $264 million in cash.
- It maintained $198 million of unused capacity in its renewed credit facility.
- Total debt stood at $713 million.
- Conduent also repurchased approximately 4 million shares during the period.
"Adjusted EBITDA rose to $40 million, with a margin expanding to 5.2% from 4.1% in the prior year — signaling operational improvement despite challenging revenue trends."
Despite the revenue downgrade, Conduent's CEO affirmed that the company's capital plan remains on track and supported by a solid cash reserve.
Author’s summary: Conduent's mixed Q3 results reveal operational improvements alongside revenue declines, while cash reserves and capital plans provide financial stability amid challenges.
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Benzinga — 2025-11-07