Conduent Stock Update: Profit Gains Amid Revenue Decline and Rising Losses
Conduent Incorporated (NASDAQ: CNDT) released its third-quarter 2025 financial results, showing mixed outcomes with improved profitability but a continued drop in revenue. Following the announcement, the company's stock fell about 4%, trading near $2.22, as investors remained cautious despite operational improvements.
Financial Highlights for Q3 2025
- Revenue: $767 million, down approximately 5% year-over-year
- Adjusted EBITDA: $40 million, a 25% increase compared to Q3 2024
- Adjusted EBITDA margin: 5.2%, up from 4.1% a year earlier
- GAAP pre-tax loss: $38 million, compared to $159 million profit in Q3 2024
- Diluted GAAP earnings per share: loss of $0.30 versus earnings of $0.72 last year
- Operating cash flow: negative $39 million
- Adjusted free cash flow: negative $54 million
Management Commentary and Strategic Actions
The company attributed margin improvement to enhanced cost discipline and operational efficiencies.
"The margin expansion reflected stronger cost discipline and operational efficiencies."
Key moves in the quarter included completing a debt refinancing program and repurchasing about 4.7 million shares, which management cited as signs of confidence in Conduent's long-term value. The company's liquidity remains solid, with approximately $264 million in cash and an unused $198 million credit facility.
Summary
Despite lower revenue and mounting losses, Conduent's improving profitability and strategic financial actions demonstrate a focus on operational efficiency and shareholder value.