This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Xerox Holdings said Wednesday that Chuck Butler, its chief business services officer, will be taking over the company’s finance department after just five months in his current role. Butler, 51, will succeed Mirlanda Gecaj effective Dec. 3, Xerox said. Gecaj, who became CFO in February, is leaving to pursue new opportunities as part of a “mutual decision” with ...

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].