Conduent(US:CNDT)2025-11-07 13:01Financial Performance - Q3 2025 revenue was $767 million, a decrease of 5.0% year-over-year from $807 million in Q3 2024[5] - Adjusted EBITDA for Q3 2025 was $40 million, representing a 25.0% increase compared to $32 million in Q3 2024[7] - Adjusted EBITDA margin improved to 5.2%, up 110 basis points from 4.1% in the prior year[5] - Revenue for Q3 2025 was $767 million, a decrease of 4.95% from $807 million in Q3 2024[20] - Adjusted Revenue for Q3 2025 was $767 million, down from $807 million in Q3 2024, reflecting a decrease of approximately 4.95%[47] - Adjusted Net Income for Q3 2025 was $(11) million, compared to $(24) million in Q3 2024, showing an improvement of 54.17%[47] - Adjusted Operating Income for Q3 2025 was $(8) million, compared to $(11) million in Q3 2024, reflecting an improvement of 27.27%[48] - Comprehensive loss for Q3 2025 was $50 million, compared to a comprehensive income of $137 million in Q3 2024[21] - Net loss for Q3 2025 was $46 million, compared to a net income of $123 million in Q3 2024, representing a significant decline[20] Cash Flow and Liquidity - Cash flow from operating activities was $(39) million, a decline of 200.0% compared to $(13) million in Q3 2024[5] - The company maintained a cash balance of $264 million and $198 million in unused capacity under its credit facility at the end of the quarter[6] - Cash and cash equivalents decreased to $248 million as of September 30, 2025, down from $366 million at the end of 2024[23] - Free Cash Flow for Q3 2025 was $(60) million, compared to $(29) million in Q3 2024, and for the nine months ended September 30, 2025, it was $(171) million versus $(153) million in 2024[50] - Operating Cash Flow for Q3 2025 was $(39) million, a decrease from $(13) million in Q3 2024, and for the nine months ended September 30, 2025, it was $(112) million compared to $(91) million in 2024[50] Business Operations and Strategy - New business signings for the quarter totaled $111 million in annual contract value (ACV)[4] - The company achieved 87% of its $1 billion capital allocation target to date, focusing on cash generation and expanding pipeline opportunities[3] - The company announced the integration of generative AI into government solutions to enhance service delivery and combat fraud[8] - Conduent expanded its operations in the Philippines with a new facility to support customer experience management solutions[10] - New Business Annual Contract Value (ACV) metrics indicate potential growth opportunities, although specific figures were not disclosed[26] Costs and Expenses - Total operating costs and expenses increased to $805 million in Q3 2025 from $648 million in Q3 2024, marking a rise of 24.2%[20] - The company reported a significant loss on divestitures and transaction costs, netting $1 million in Q3 2025 compared to a gain of $188 million in Q3 2024[20] - The company incurred transaction costs of $2 million in Q3 2025, down from $7 million in Q3 2024[50] - Direct response costs related to a cyber event amounted to $25 million in Q3 2025, which were not present in Q3 2024[48] - Direct response costs related to cyber event payments were $7 million in Q3 2025, with an additional $9 million incurred in the nine months ended September 30, 2025[50] Assets and Liabilities - Total assets decreased to $2.5 billion as of September 30, 2025, compared to $2.6 billion at the end of 2024[23] - Long-term debt increased to $697 million as of September 30, 2025, up from $615 million at the end of 2024[23] Taxation - Adjusted Effective Tax Rate for Q3 2025 was 44.7%, significantly higher than 12.5% in Q3 2024, while for the nine months ended September 30, 2025, it was 29.0% compared to 19.7% in 2024[49] - The effective tax rate for Q3 2025 was (19.5)%, compared to 22.2% in Q3 2024, indicating a significant shift in tax liabilities[49] - Adjusted Effective Tax Rate adjustments for Q3 2025 included $17 million, compared to $39 million in Q3 2024[47] Other Financial Metrics - Adjusted Diluted EPS for Q3 2025 was $(0.09), compared to $(0.14) in Q3 2024, while for the nine months ended September 30, 2025, it was $(0.34) compared to $(0.36) in 2024[49] - The company reported a loss before income taxes margin of (5.0)% for Q3 2025, compared to a profit margin of 19.7% in Q3 2024[49] - The company reported a loss on extinguishment of debt of $1 million in Q3 2025, consistent with the previous year[47] - The company experienced a goodwill impairment charge, which is part of the adjustments made to financial measures[37] - Total non-GAAP adjustments for Q3 2025 included a positive impact of 0.10 on Diluted EPS, while for the nine months ended September 30, 2025, it was 0.41[49]