Conduent(US:CNDT)2026-02-19 21:32Revenue Segments - In 2025, the Commercial segment generated revenue of $1,511 million, accounting for 49.7% of total revenues excluding divestitures[35] - The Government segment revenue for 2025 was $922 million, representing 30.3% of total revenues excluding divestitures[36] - The Transportation segment revenue for 2025 was $609 million, making up 20.0% of total revenues excluding divestitures[37] Government Services - In 2025, Conduent processed over 454 million Medicaid claims and disbursed approximately $80 billion in government benefit payments[19] - The company generates revenue from its Government Service Solutions based on the number of cases or card holders, with approximately $80 billion disbursed annually for federally sponsored programs[47] - In 2025, the company processed over 454 million claims within its Government Healthcare Solutions business[46] Market and Operations - The addressable market size in the global business process services industry is estimated to be $219 billion in 2025[29] - The U.S. healthcare market is projected to grow at an average rate of 5.8% per year between 2024-2033, with the company serving over 111 million recipients in 34 states and the District of Columbia[53] - Conduent managed approximately 2 billion customer service interactions and captured over 14 billion documents and claims in 2025[17] Technology and Innovation - The company continues to invest in AI and automation, with over 20 prioritized use cases for GenAI to enhance operational efficiency[27] - The company owns approximately 489 U.S. patents and has 10 pending applications as of December 31, 2025[61] Workforce and Culture - Approximately 34% of Conduent's global workforce is located in North America, with the remainder primarily in Asia Pacific, Latin America, the Caribbean, and Europe[22] - As of December 31, 2025, the company had approximately 51,000 associates, with 34% located in North America[64] - The company was recognized among Newsweek's Top 100 Global Most Loved Workplaces in 2025, reflecting strong emotional connections with associates[69] - The company achieved an 18% increase in utilization of its learning platforms in 2025, with approximately 1.73 million learning assets completed[68] - The company emphasizes the importance of annual business ethics training for its employees to foster an ethical culture[72] Financial Management - Conduent's total debt as of December 31, 2025, was approximately $691 million, with $109 million of borrowings outstanding under the Revolving Credit Facility at a weighted average interest rate of 6.58%[274] - The consolidated weighted-average interest rates for total debt in 2025 were approximately 6.20% for Senior Notes and 8.13% for finance lease obligations[274] - A 10% appreciation or depreciation in foreign currency exchange rates would impact the cumulative translation adjustment portion of equity by approximately $39 million, with net investments in foreign subsidiaries totaling around $393 million[273] - Conduent utilized derivative financial instruments to hedge economic exposures and reduce earnings and cash flow volatility from shifts in market rates[271] - The company has not materially modified its financial risk management strategies regarding foreign currency risk due to recent market events[272] - A 10% increase in market interest rates would decrease the fair values of fixed-rate financial instruments by approximately $15 million, while a 10% decrease would increase their fair values by the same amount[274] Leadership - Conduent's executive team includes Harsha V. Agadi as President and CEO, appointed in January 2026, with a background in various leadership roles across multiple companies[79] - The company is committed to maintaining high standards of integrity and compliance through its Code of Business Conduct and Ethics[73] - Conduent's revenues are influenced by client demand patterns, including peak windows for benefit enrollment and new product launches[74]