Conduent Cuts 2025 Revenue Forecast, But CEO Says Capital Plan On Track With Cash Cushion
Conduent Inc (NASDAQ:CNDT) shares fell Friday morning after releasing disappointing third-quarter 2025 results.
Financial Performance
- Revenue dropped to $767 million, a 5% decrease year-over-year and below the $794.33 million analyst estimate.
- Adjusted revenue also declined 1.8% to $767 million.
- GAAP diluted EPS showed a loss of 30 cents, compared to earnings of 72 cents in the previous year.
- Adjusted EPS loss was nine cents, missing the seven cents loss expected but improving from a 14 cents loss last year.
- Adjusted EBITDA rose to $40 million with margin growth to 5.2% from 4.1%, indicating operational improvements despite revenue challenges.
Business Momentum
- New business signings in Annual Contract Value (ACV) reached $111 million.
- The Net ARR Activity Metric (TTM) was $25 million, reflecting solid pipeline and recurring revenue growth.
Cash Flow and Liquidity
- Operating cash flow was negative $39 million for the quarter.
- Adjusted free cash flow also negative at $54 million.
- The company held $264 million in cash at quarter-end.
- Unused capacity in the renewed credit facility stood at $198 million.
- Total debt amounted to $713 million.
Share Repurchase
The company repurchased approximately 4 million shares during the quarter.
The CEO said the capital plan remains on track with a sufficient cash cushion to navigate current challenges.
Despite a revenue setback, Conduent is showing operational progress and maintains solid liquidity to support its strategic plans.
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