The spillover from a ransomware attack on one of the largest government contractors in the United States keeps getting bigger: more than 25 million people have now had personal data stolen in the hack.Conduent provides printing, mailroom services, and document and payment processing services for state government benefit operations, such as food assistance, as well as workplace and unemployment benefits for large corporations. As such, the company handles a large amount of personal information belonging to a ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________ FORM 10-K _________________________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered pursuant to Section 12(b) of the Act: Common Stock, $0.0 ...

Conduent Study Reveals Human Connection in HR Strongly Influences Employee PerceptionsFeb 17, 2026 8:45 AM Eastern Standard Time# Conduent Study Reveals Human Connection in HR Strongly Influences Employee PerceptionsShare---Data shows HR teams balancing employee demand for human interaction with growing technology adoptionFLORHAM PARK, N.J.--([BUSINESS WIRE])--New research from [Conduent Incorporated](Nasdaq: CNDT), a global technology-driven business solutions and services company, highlights the tension H ...

Core Insights - Conduent has partnered with the Alabama Department of Human Resources to introduce chip-enabled EBT cards aimed at preventing fraud in SNAP and TANF programs, making Alabama the first state supported by Conduent to implement this technology statewide [1] - The new chip technology enhances security by allowing cardholders to insert their cards into point-of-sale terminals, reducing the risk of fraud associated with magnetic stripe cards [1] - Following a successful pilot program, the rollout of these cards is expected to provide beneficiaries with greater confidence in the security of their benefits [1] Group 1: Collaboration and Implementation - Conduent's collaboration with Alabama marks a significant step in enhancing the security of EBT cards, with the state being only the second in the nation to adopt chip-enabled cards [1] - The new cards are being mailed to EBT cardholders across Alabama, with the aim of significantly improving account security for SNAP and TANF recipients [1] - Alabama DHR Commissioner Nancy Buckner expressed satisfaction with the transition to chip technology, highlighting its ease of use and improved protection for benefits [1] Group 2: Technology and Security Features - The chip-enabled cards allow for insertion into terminals, which is a critical improvement over the traditional magnetic stripe cards that are susceptible to skimming [1] - Conduent's ConnectEBT mobile app and cardholder portal provide additional security features, allowing beneficiaries to lock their accounts and block unauthorized transactions [1] - A system enhancement implemented by Alabama DHR automatically blocks out-of-state and online transactions by default, with cardholders able to unlock their cards through the ConnectEBT app [1] Group 3: Conduent's Role and Market Position - Conduent is recognized as a national leader in government payment disbursements, supporting electronic payments for public programs in 37 states [1] - The company utilizes advanced technologies such as cloud computing, AI, and machine learning to deliver solutions that enhance customer experiences and improve operational efficiency [1] - Conduent disburses approximately $80 billion in government payments annually and processes over 14 million tolling transactions each day [1]

Core Insights - Conduent is undergoing a turnaround under new CEO Harsha Agadi, who has outlined initial priorities and emphasized the need for financial discipline and operational efficiency [2][4]. Financial Performance - Full-year revenue for 2025 decreased by 4.2% to $3.04 billion, while adjusted EBITDA increased to $164 million, reflecting a margin of 5.4%, up 150 basis points year over year [3][8]. - Adjusted free cash flow was negative $130 million for the year, but Q4 showed a positive cash flow of $28 million [3][12]. - The company reported a net leverage ratio improvement to 2.8x, driven by higher EBITDA [3][13]. Sales and Business Development - New business annual contract value (ACV) for Q4 was $152 million, an 11% increase year-over-year, with full-year new ACV reaching $517 million, up 6% [5][6]. - The Government segment saw a 50% increase in new business ACV, while the Transportation segment grew by 14% [5][6]. - The qualified ACV pipeline stands at $3.2 billion, up 4% year-over-year, with significant growth in the Government pipeline [6]. Strategic Priorities - Agadi has identified six operational priorities: faster decision-making, strict financial discipline, cost cuts, portfolio review (fix, sell, or grow), ACV conversion, and organizational simplification [4][14]. - The company plans to host an Analyst Day to provide transparency regarding its strategy and execution [2][4]. Segment Performance - The Commercial segment experienced a revenue decline of 5.9% to $1.5 billion, attributed to volume declines from major clients [9]. - Government segment adjusted revenue was $922 million, down 6.3%, but showed Q4 growth of 1.8% [10]. - Transportation segment adjusted revenue increased by 3.9% to $609 million, with improved margins [11]. Future Outlook - Management expects to provide a detailed update on portfolio rationalization and guidance for 2026 in early May [17]. - Agadi is focused on improving free cash flow and has not provided specific guidance at this time [17].

Financial Data and Key Metrics Changes - Adjusted revenue for full year 2025 was $3.04 billion, down 4.2% from $3.18 billion in 2024 [15] - Adjusted EBITDA for the year was $164 million, compared to $124 million in 2024, with an adjusted EBITDA margin of 5.4%, up 150 basis points year-over-year [15][16] - Adjusted free cash flow was -$130 million for the year, with Q4 adjusted free cash flow being positive at $28 million [19][20] Business Line Data and Key Metrics Changes - Government Segment adjusted revenue was down 6.3% at $922 million, but grew 1.8% in Q4 year-over-year [17] - Transportation Segment adjusted revenue was $609 million for the year, an increase of 3.9%, with adjusted EBITDA margin up 300 basis points versus 2024 [18] - Commercial Segment adjusted revenue was $1.5 billion, down 5.9% compared to 2024, with adjusted EBITDA margin of 10.2%, down 30 basis points year-over-year [16][17] Market Data and Key Metrics Changes - New business Annual Contract Value (ACV) signed in Q4 was $152 million, up 11% versus Q4 2024, with full year 2025 new business ACV at $517 million, up 6% versus 2024 [12] - Government Segment new business ACV was up 50%, and Transportation Segment was up 14% versus 2024 [12] - Commercial Segment new capability ACV increased by 60% this year [13] Company Strategy and Development Direction - The company aims for consistent year-over-year revenue and EBITDA growth, supported by strong free cash flow generation [5][6] - Key priorities include faster decision-making, financial discipline, lowering cost structure, rationalizing the portfolio, and improving conversion rates of the ACV pipeline [9][10][11] - The company is focused on organic revenue growth and will categorize businesses as fix, sell, or grow [10] Management's Comments on Operating Environment and Future Outlook - The CEO emphasized the need for transparency and accountability in executing the turnaround strategy [7][22] - Management is optimistic about the government and transportation segments, while acknowledging challenges in the commercial segment [43] - The CEO highlighted the importance of adapting to technological changes, particularly in AI, to maintain competitive advantage [64] Other Important Information - The company plans to host an Analyst Day in New York City to discuss strategy and execution plans [7] - The qualified ACV pipeline stands at $3.2 billion, up 4% year-over-year, driven by the government segment [14] Q&A Session Summary Question: Metrics for evaluating business units for fix, sell, or grow - The CEO mentioned factors such as growth metrics, predictable EBITDA margins, capital allocation needs, and competitive moats as key considerations [25][26] Question: Philosophy on keeping related business units - The CEO stated the importance of focusing on core competencies and avoiding being everything to everyone, emphasizing the need for discipline in service offerings [31][35] Question: Evidence of revamped go-to-market strategy in commercial segment - Management acknowledged the need for improvement in the commercial segment but noted positive momentum in government and transportation segments [42][43] Question: Exposure to AI disruptors - The CEO estimated that 15%-20% of the business may be exposed to AI disruptors, emphasizing the need for partnerships with technology providers [64] Question: Free cash flow expectations for 2026 - The CEO expressed optimism about turning around free cash flow but did not provide specific guidance [75]

Financial Data and Key Metrics Changes - Adjusted revenue for full year 2025 was $3.04 billion, down 4.2% from $3.18 billion in 2024 [15] - Adjusted EBITDA for the year was $164 million, compared to $124 million in 2024, with an adjusted EBITDA margin of 5.4%, up 150 basis points year-over-year [15][16] - Adjusted free cash flow was -$130 million for the year, with Q4 adjusted free cash flow being positive at $28 million [19][20] Business Line Data and Key Metrics Changes - Government segment adjusted revenue was $922 million, down 6.3% from 2024, but grew 1.8% in Q4 [17][18] - Transportation segment adjusted revenue was $609 million, an increase of 3.9%, with adjusted EBITDA margin at 3%, up 300 basis points from 2024 [18] - Commercial segment adjusted revenue was $1.5 billion, down 5.9% from 2024, with adjusted EBITDA margin at 10.2%, down 30 basis points year-over-year [16][18] Market Data and Key Metrics Changes - New business annual contract value (ACV) for Q4 was $152 million, up 11% from Q4 2024, with full year 2025 new business ACV at $517 million, up 6% from 2024 [12][14] - Government segment new business ACV increased by 50%, while transportation segment was up 14% compared to 2024 [12] - Commercial segment new capability ACV increased by 60% year-over-year [13] Company Strategy and Development Direction - The company aims for consistent year-over-year revenue and EBITDA growth, supported by strong free cash flow generation [5][6] - Key priorities include faster decision-making, financial discipline, lowering cost structure, and rationalizing the portfolio [9][10] - The company is focusing on organic revenue growth and improving conversion rates from the qualified ACV pipeline, which stands at $3.2 billion [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current environment as a turnaround story, emphasizing the need for transparency and accountability [7][22] - The company is committed to executing its strategy and improving financial performance, with a focus on sustainable revenue growth and margin expansion [22][23] - Management is optimistic about the government and transportation segments, while acknowledging challenges in the commercial segment [43][44] Other Important Information - The company plans to host an Analyst Day in New York City to discuss strategy and execution plans [7] - Management is reviewing each business unit to categorize them as fix, sell, or grow, with clear accountability for results [10][26] Q&A Session Summary Question: Metrics for evaluating business units - Management will consider growth metrics, EBITDA margins, capital allocation needs, and competitive moats when evaluating business units [26][27] Question: Philosophy on business unit overlap - The company aims to focus on core competencies and avoid being everything to everyone, emphasizing the importance of client relationships [34][35] Question: Evidence of improved commercial performance - Management sees good momentum in public sector businesses but acknowledges the need for improvement in the commercial segment [42][43] Question: AI disruptors and revenue exposure - Approximately 15%-20% of the business may be exposed to AI disruptors, with a focus on partnering with technology providers [64][67] Question: Free cash flow expectations for 2026 - Management is focused on improving free cash flow and expects to provide more precise goals in future guidance [75] Question: Portfolio rationalization status - Portfolio rationalization is a high priority, with efforts to accelerate the process and focus on core business operations [76][77]

Financial Data and Key Metrics Changes - Adjusted revenue for full year 2025 was $3.04 billion, down 4.2% from $3.18 billion in 2024 [13] - Adjusted EBITDA for the year was $164 million, compared to $124 million in 2024, with an adjusted EBITDA margin of 5.4%, up 150 basis points year-over-year [14][15] - Adjusted free cash flow was -$130 million for the year, with Q4 adjusted free cash flow at positive $28 million [18][19] Business Line Data and Key Metrics Changes - Government segment adjusted revenue was down 6.3% at $922 million, but grew 1.8% in Q4 year-over-year [16] - Transportation segment adjusted revenue was $609 million for the year, an increase of 3.9%, with adjusted EBITDA margin at 3%, up 300 basis points versus 2024 [17] - Commercial segment adjusted revenue was $1.5 billion, down 5.9% compared to 2024, with adjusted EBITDA margin at 10.2%, down 30 basis points year-over-year [15][16] Market Data and Key Metrics Changes - New business annual contract value (ACV) signed in Q4 was $152 million, up 11% versus Q4 2024, with full year 2025 new business ACV at $517 million, up 6% versus 2024 [11] - Government segment new business ACV was up 50%, and transportation segment was up 14% versus 2024 [11] - Qualified ACV pipeline stands at $3.2 billion, up 4% year-over-year, driven by a 29% increase in the government segment [12][13] Company Strategy and Development Direction - The company aims for consistent year-over-year revenue and EBITDA growth, supported by strong free cash flow generation [5] - Key priorities include faster decision-making, financial discipline, lowering cost structure, rationalizing the portfolio, and improving conversion rates of the ACV pipeline [7][9] - The company is focused on organic revenue growth and will categorize businesses as fix, sell, or grow [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current environment as a turnaround story, emphasizing transparency and accountability [6][20] - The company is committed to improving operational efficiency and capital allocation to enhance margins and free cash flow [8][19] - Management expects to provide a more detailed update on financial performance and strategic initiatives in the upcoming Q1 call [20] Other Important Information - The company plans to host an Analyst Day in New York City to discuss strategy and execution plans [6] - Unallocated costs decreased by 10.2% versus 2024, driven by cost efficiency programs [18] Q&A Session Summary Question: Metrics for evaluating business units for fix, sell, or grow decisions - Management will consider growth metrics, predictable EBITDA margins, capital allocation needs, and competitive moats when evaluating business units [24][25] Question: Philosophy on maintaining business units with operational overlaps - The company will focus on core competencies and avoid being everything to everyone, emphasizing a disciplined approach to service offerings [29][33] Question: Evidence of revamped go-to-market strategy impacting commercial performance - While there is momentum in public sector businesses, commercial segment growth is still a work in progress, with expectations for improvement in 2027 [41][42] Question: Exposure to AI disruptors and technology threats - Approximately 15%-20% of the business may be exposed to AI disruptors, with a focus on partnering with technology firms to enhance capabilities [62] Question: Free cash flow expectations for 2026 - Management is focused on improving free cash flow and expects to provide more precise goals in future updates [71] Question: Status of portfolio rationalization - Portfolio rationalization is a high priority, with ongoing reviews and potential opportunities being explored [73]

Conduent Q4 and Full Year 2025 Financial Results Forward-Looking Statements This document, any exhibits or attachments to this document, and other public statements we make may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "estimate," "expect," expectations," "in front of us," "plan," "intend," "will," "aim," "should," "could," "forecast," "target," "may," "continue to," "looking to continue," "endeavor," "if," "gr ...

Financial Performance - Q4 2025 revenue was $770 million, a decrease of 3.8% year-over-year, while full-year revenue totaled $3,042 million, down 9.4% from the previous year[3]. - Adjusted EBITDA for Q4 2025 was $50 million, representing a 56.3% increase year-over-year, with an adjusted EBITDA margin of 6.5%, up 250 basis points from Q4 2024[4]. - Full-year 2025 adjusted EBITDA was $164 million, reflecting a 32.3% increase compared to the prior year, aligning with the company's guidance[7]. - The company reported a GAAP net loss for FY 2025 of $(170) million, a significant decline from a net income of $426 million in FY 2024[4]. - Revenue for Q4 2025 was $770 million, a decrease of 3.75% from $800 million in Q4 2024[19]. - Net loss for Q4 2025 was $33 million, compared to a net loss of $12 million in Q4 2024[20]. - Total operating costs and expenses for Q4 2025 were $798 million, down from $882 million in Q4 2024, reflecting a 9.5% reduction[19]. - Comprehensive loss for the year ended December 31, 2025, was $135 million, compared to a comprehensive income of $389 million in 2024[20]. Cash Flow and Liquidity - Conduent's cash balance at the end of 2025 was $243 million, with an additional $223 million in unused capacity under its credit facility[6]. - The company reported a net cash used in operating activities of $73 million for the year ended December 31, 2025[24]. - Cash and cash equivalents decreased to $233 million as of December 31, 2025, from $366 million a year earlier[22]. - Free Cash Flow for Q4 2025 was $17 million, down from $47 million in Q4 2024, while Adjusted Free Cash Flow was $28 million compared to $62 million in the previous year[49]. - Operating Cash Flow for the year ended December 31, 2025, was $(73) million, a decline from $(50) million in 2024[49]. Business Operations - New business signings for Q4 2025 amounted to $152 million, contributing to a total of $517 million for the full year[3]. - The company processed over 14 million tolling transactions daily and disbursed approximately $80 billion in government payments annually[12]. - The company aims to enhance its go-to-market strategy and optimize its portfolio to drive revenue growth and margin expansion[9]. - Conduent's focus includes accelerating execution, enforcing financial discipline, and reducing its cost structure to improve operational efficiency[9]. Adjusted Metrics - Adjusted Revenue for Q4 2025 was $770 million, down from $800 million in Q4 2024, with a total for the year of $3,042 million compared to $3,356 million in 2024[46]. - Adjusted Net Income for Q4 2025 was a loss of $12 million, compared to a loss of $21 million in Q4 2024, with a total loss of $59 million for the year versus a profit of $118 million in 2024[46]. - Adjusted Operating Income for Q4 2025 was a loss of $1 million, compared to a loss of $15 million in Q4 2024, with a total loss of $31 million for the year compared to a loss of $65 million in 2024[47]. - Adjusted EBITDA for Q4 2025 was $50 million, up from $32 million in Q4 2024, with a total of $164 million for the year compared to $124 million in 2024[47]. - Adjusted Diluted EPS for Q4 2025 was $(0.09), compared to $(0.15) in Q4 2024, with a total non-GAAP adjustment of $0.10 for the quarter[48]. - Adjusted Effective Tax Rate for Q4 2025 was 7.3%, significantly improved from 25.0% in Q4 2024, with total non-GAAP adjustments contributing 26.0%[48]. - Adjusted Operating Margin for Q4 2025 was (0.1)%, compared to (1.9)% in Q4 2024, with total non-GAAP adjustments of 1.9% for the quarter[48]. Assets and Liabilities - Total assets decreased to $2,397 million as of December 31, 2025, down from $2,599 million in 2024[22]. - Long-term debt increased to $665 million as of December 31, 2025, compared to $615 million in 2024[22]. - Total liabilities decreased slightly to $1,570 million as of December 31, 2025, from $1,614 million in 2024[22].