NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) today announced the appointment of Chuck Butler as Chief Financial Officer, effective December 3, 2025. As part of the company's evolving leadership structure and following a mutual decision, Mirlanda Gecaj will be departing Xerox to pursue new opportunities. Her last day will be December 2. "Mirlanda has played a meaningful role in guiding the company through an important period of transformation,†said Steve Bandrowczak. ...

Core Insights - Xerox Holdings Corporation reported $1.96 billion in revenue for Q3 2025, a year-over-year increase of 28.3%, but fell short of the Zacks Consensus Estimate of $2.05 billion by 4.5% [1] - The company achieved an EPS of $0.20, down from $0.25 a year ago, but exceeded the consensus EPS estimate of $0.04 by 400% [1] Revenue Performance - Geographic Revenue: Europe generated $511 million, below the average estimate of $633.04 million, with a year-over-year change of +16.1% [4] - Total Sales Revenue: Reported at $993 million, compared to the $1.1 billion average estimate, reflecting a year-over-year increase of +68.9% [4] - Equipment Sales: - Entry-level equipment sales reached $119 million, significantly above the estimated $53.39 million, marking a +124.5% year-over-year change [4] - Mid-range equipment sales were $222 million, slightly below the estimate of $221.86 million, with a -0.9% year-over-year change [4] - Overall equipment sales totaled $383 million, exceeding the average estimate of $333.12 million, with a +13% year-over-year change [4] - High-end equipment sales were $39 million, below the estimate of $52.54 million, reflecting a -31.6% year-over-year change [4] - Other equipment sales were $3 million, below the estimate of $5.33 million, with a -40% year-over-year change [4] - Post-sale revenue from supplies, paper, and other sales was $445 million, significantly above the estimated $260.73 million [4] - Services, maintenance, and rentals revenue was $968 million, slightly above the estimate of $958.06 million, with a +7.3% year-over-year change [4] Stock Performance - Xerox shares have returned -7.6% over the past month, contrasting with the Zacks S&P 500 composite's +4.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - The performance of Xerox Holdings Corporation's international operations is critical for understanding its financial resilience and growth potential [1][2][3] Group 1: International Revenue Performance - Xerox's total revenue for the quarter was $1.96 billion, reflecting a 28.3% increase year-over-year [4] - Europe contributed 26.1% of total revenue, amounting to $511 million, which was a surprise decrease of 19.28% compared to analyst expectations of $633.04 million [5] - Canada generated $125 million, accounting for 6.4% of total revenue, also falling short of expectations by 16.63% [6] - Other International segments contributed $49 million, representing 2.5% of total revenue, significantly below the expected $139.21 million, marking a surprise of -64.8% [7] Group 2: Future Revenue Projections - Analysts project Xerox will achieve revenues of $2.11 billion for the ongoing fiscal quarter, a 30.8% increase from the previous year [8] - For the full year, total revenue is expected to reach $7.15 billion, up 14.9% from the prior year, with Europe, Canada, and Other International expected to contribute $2.22 billion, $516.66 million, and $485.32 million, respectively [9] Group 3: Market Context and Stock Performance - The reliance on global markets presents both opportunities and challenges for Xerox, making the analysis of international revenue trends essential for forecasting future performance [10] - Over the past month, Xerox's stock has decreased by 7.6%, underperforming the S&P 500's increase of 4.4% [13] - The company's stock has declined 21.5% over the past three months, while the S&P 500 rose by 7.3% during the same period [13]

Revenue and Growth - Total revenue for Q3 2025 was $1.96 billion, an increase of 28.3% from Q3 2024, with a 29.3-percentage point benefit from the Lexmark Acquisition and an 8.0-percentage point benefit from ITSavvy[251] - Total revenue for the nine months ended September 30, 2025, was $4.99 billion, an increase of 8.4% compared to the prior year, with a 9.7-percentage point benefit from the Lexmark Acquisition[251] - Total revenue for the nine months ended September 30, 2025 increased by 8.4% compared to the prior year, with Lexmark Acquisition contributing 9.7 percentage points [269] - Total revenue for the nine months ended September 30, 2025, was $4,994 million, an increase of 8.4% from $4,608 million in the prior year[264] - Total revenue for Q3 2025 increased by 28.3% compared to Q3 2024, benefiting from the Lexmark Acquisition (29.3 percentage points) and ITSavvy (8.0 percentage points) [269] Segment Performance - Revenues for the Print and Other segment in Q3 2025 were $1,739 million, accounting for 88% of total revenue[322] - IT Solutions segment revenues in Q3 2025 were $226 million, representing 12% of total revenue[322] - Print and Other segment revenue for the nine months ended September 30, 2025, was $4,399 million, a slight increase of 0.8% from $4,364 million in the prior year[264] - IT Solutions segment revenue increased by 147.1% to $603 million for the nine months ended September 30, 2025, compared to $244 million in the prior year[264] - IT Solutions segment revenue increased by 162.8% in Q3 2025 compared to Q3 2024, driven mainly by the acquisition of ITSavvy[346] Profitability and Loss - The net loss for Q3 2025 was $760 million, improving by $445 million compared to a net loss of $1,205 million in Q3 2024[253] - Adjusted net income for Q3 2025 was $27 million, a decrease of $7 million from $34 million in Q3 2024, primarily due to higher selling and administrative expenses[253] - Net loss for the nine months ended September 30, 2025, was $956 million, an improvement of $344 million compared to the prior year period's net loss of $1,300 million[255] - Profit for the nine months ended September 30, 2025, was $146 million, a decrease of 26.3% from $198 million in the prior year[256] - Adjusted operating income for the three months ended September 30, 2025, was $65 million, representing a margin of 3.3%, compared to $80 million and a margin of 5.2% in 2024[397] Expenses and Costs - Total segment expenses increased by 10.6% to $4,799 million for the nine months ended September 30, 2025, compared to $4,340 million in the prior year[256] - Selling, Administrative and General (SAG) expenses for Q3 2025 were $477 million, an increase of $107 million (28.9%) compared to Q3 2024[288] - Research, Development and Engineering (RD&E) expenses for Q3 2025 were $74 million, an increase of $29 million (64.4%) compared to Q3 2024[285] - Total costs and expenses amounted to $2,261 million, resulting in a loss before income taxes of $300 million, which improved to a loss of $208 million after pro forma adjustments[413] - The company incurred restructuring and related costs of $59 million for the three months ended September 30, 2025[413] Acquisition Impact - The acquisition of Lexmark was completed on July 1, 2025, and its results are included in the Print and Other segment[245] - The Lexmark Acquisition cost $675 million, net of cash acquired, contributing to cash used in investing activities of $694 million for the nine months ended September 30, 2025[257] - The company expects earnings per share accretion from the Lexmark Acquisition despite slightly higher funding costs[246] - The Lexmark Acquisition included adjustments for inventory-related purchase accounting totaling $102 million for the nine months ended September 30, 2025[397] - The company incurred approximately $77 million in restructuring and severance costs related to worldwide headcount reductions as part of the integration of legacy Xerox and Lexmark businesses[292] Cash Flow and Debt - Cash flows from operating activities for the nine months ended September 30, 2025, were a source of $16 million, a decrease of $144 million compared to the prior year[257] - Total cash, cash equivalents, and restricted cash decreased by $96 million to $535 million as of September 30, 2025, primarily due to net cash used in investing activities of $694 million[352] - Total debt as of September 30, 2025, was $4,406 million, with $2,782 million attributable to the non-financing business, reflecting an increase from $1,658 million at December 31, 2024[352] - The company has principal debt maturities totaling $4,513 million spread over the next five years[369] - Free cash flow for the nine months ended September 30, 2025, was -$51 million, a decline from $133 million in the same period of 2024, primarily due to lower operating cash flow[402] Tax and Goodwill - Effective tax rate for the nine months ended September 30, 2025 was (123.9)%, resulting in a tax expense primarily due to valuation allowance on deferred tax assets[316] - Deferred tax asset valuation allowances of $467 million were established to reflect realizability, impacting the effective tax rate significantly[394] - The company reported a goodwill impairment charge of approximately $1.0 billion for the three months ended September 30, 2024, impacting diluted EPS by $8.16[391] - The company reported a goodwill impairment of $1,058 million for the nine months ended September 30, 2025, impacting overall financial performance[397] - Goodwill impairment recorded was $1,058 million, reflecting significant adjustments in the financial statements[430]

Core Insights - Xerox Holdings (XRX) reported mixed third-quarter 2025 results, with earnings exceeding the Zacks Consensus Estimate but revenues falling short [1][10] - The company's shares have declined 2.6% since the earnings release on October 30, reflecting market disappointment with the results [1] Financial Performance - Adjusted operating income for the quarter was $65 million, down 18.8% year-over-year, with an adjusted operating margin of 3.3%, a decrease of 1.9 basis points year-over-year [7] - Quarterly adjusted earnings were 20 cents per share, surpassing estimates by 4% but down 20% from the previous year [3][10] - Revenues totaled $1.96 billion, missing estimates by 4.5% but showing a year-over-year increase of 28.3% [3][10] Revenue Breakdown - Post-sale revenues reached $1.58 billion, up 32.7% year-over-year but below the estimate of $1.72 billion [5] - Equipment sales increased by 13% year-over-year to $383 million, exceeding the estimate of $338.5 million [5] - The Print and Other segment generated revenues of $1.74 billion, up 20.6% year-over-year, beating the estimate of $1.42 billion [5] Guidance and Outlook - For 2025, the adjusted operating margin is projected to be approximately 3.5-4.5%, with a midpoint of 4% lower than the previous estimate of 4.5% [2] - Free cash flow is anticipated to be between $150-$250 million, with a midpoint of $200 million, down from the prior view of $250 million [2] - Operating cash flow for 2025 is expected to be approximately $245 million, reduced from the previous estimate of $345 million [2] Market Performance - Xerox's shares have depreciated 66.1% over the past year, contrasting with a 51.2% decline in the Office Supplies industry and a 15.6% rise in the S&P 500 [4]

Core Insights - The article highlights stocks that have garnered significant attention from Wall Street, with price targets suggesting returns exceeding 20% [1] - It emphasizes the importance of independent analysis in evaluating stocks, contrasting with traditional investment banks [2] Company Analysis MicroStrategy (MSTR) - Consensus price target is $524.50, implying a 122% return potential [3] - Current trading price is $236.75 per share, with a forward price-to-sales ratio of 151.1x [5] - Concerns include: - Core analytics software overshadowed by a focus on Bitcoin, leading to neglect in product innovation and enterprise deals [10] - Debt-financed Bitcoin purchases create volatility linked to crypto prices and interest rates, increasing risk [10] Xerox (XRX) - Consensus price target is $4.50, indicating a 48.5% return potential [6] - Current stock price is $3.03, with a forward P/E ratio of 1.9x [8] - Challenges faced include: - Sales have declined by 2.6% annually over the past five years, indicating market difficulties [11] - Earnings per share have decreased more than revenue, suggesting reduced profitability per sale [11] - High net-debt-to-EBITDA ratio of 8x may deter lenders from providing additional capital, risking dilutive equity offerings [11] Reddit (RDDT) - Identified as a stock to buy, though specific details on its performance or analysis are not provided in the excerpts [9]

Core Viewpoint - Xerox Holdings Corporation (XRX) is currently rated as a hold due to uncertainty surrounding the success of its large-scale transformation, particularly the integration of the Lexmark acquisition [1]. Company Analysis - The integration of Lexmark is a significant focus for Xerox, with the outcome of this transformation being unclear at this stage [1]. - The company is undergoing a transformation that may impact its future performance, but the effectiveness of this strategy remains to be seen [1]. Investment Perspective - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies, which may influence the evaluation of Xerox's potential [1]. - The article serves as a platform for tracking investment ideas and connecting with other investors, indicating a community-driven approach to investment analysis [1].

Core Viewpoint - Xerox Holdings Corporation (XRX) is currently rated as a hold due to uncertainty surrounding the success of its large-scale transformation, particularly the integration of the Lexmark acquisition [1]. Company Analysis - The integration of Lexmark is a significant focus for Xerox, with the outcome of this transformation being unclear at this stage [1]. - The company is undergoing a transformation that may impact its future performance, but the effectiveness of this strategy remains to be seen [1]. Investment Perspective - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies, which may influence perceptions of Xerox's potential [1]. - The article serves as a platform for tracking investment ideas and connecting with other investors, indicating a community-driven approach to investment analysis [1].

Core Viewpoint - The article discusses the investment potential of Xerox Holdings Corporation (XRX), highlighting the author's allocation strategy towards "troubled" companies, which constitutes about 5-6% of their portfolio [1]. Group 1: Company Overview - Xerox Holdings Corporation is identified as a company that may present investment opportunities despite being categorized as "troubled" [1]. Group 2: Analyst Background - The author is a senior analyst and private portfolio manager with over 10 years of experience in generating value ideas in European and North American markets [1]. - The author contributes to various investing groups, covering a wide range of markets including Scandinavia, Germany, France, the UK, Italy, Spain, Portugal, and Eastern Europe [1].

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]