Conduent Stock Update: Profit Growth Overshadowed by Revenue Decline and Rising Losses
Conduent Incorporated (NASDAQ: CNDT) released its third-quarter 2025 financial results, showing mixed outcomes that combined improved profitability with a continued drop in revenue. Following the announcement, the company's stock fell nearly 4% to about $2.22, reflecting cautious investor sentiment despite operational gains.
Financial Highlights for Q3 2025
- Revenue fell approximately 5% year-over-year to $767 million for the quarter ended September 30, 2025.
- Adjusted EBITDA increased by 25% to $40 million, raising the adjusted EBITDA margin to 5.2% from 4.1% the previous year.
- The margin improvement was attributed to stronger cost discipline and enhanced operational efficiency.
GAAP Results and Cash Flow
- Pre-tax loss on a GAAP basis was $38 million, reversing from a $159 million profit in Q3 2024.
- Diluted GAAP earnings per share shifted to a loss of $0.30, compared to earnings of $0.72 last year.
- Operating cash flow was negative at $39 million, while adjusted free cash flow was –$54 million, highlighting ongoing cash generation challenges.
Strategic Actions and Liquidity
During the quarter, management completed a debt refinancing program and repurchased about 4.7 million shares, signaling confidence in the company’s future.
Liquidity remains solid, with approximately $264 million in cash and an unused $198 million credit facility.
Summary: Conduent showed improved profitability through cost and operational efficiencies, but revenue decline and net losses continue to challenge cash flow and investor confidence.
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