Xerox Holdings Reports Q1 Loss, Revenues Miss Estimates

Core Insights - Xerox Holdings Corporation reported a first-quarter 2025 loss of six cents per share, which was worse than the Zacks Consensus Estimate of a loss of 5 cents and a decline from the year-ago earnings of 6 cents [1] - Revenues for the quarter were $1.46 billion, missing the Zacks Consensus Estimate by 3.2% and decreasing 3% year over year on a reported basis, with a 1.1% decline on a constant-currency basis [1] Revenue Details - Post-sale revenues were $1.17 billion, down 3.2% year over year on a reported basis and 1.2% at constant currency, falling short of the estimate of $1.21 billion [2] - Equipment sales totaled $284 million, a decline of 2.1% year over year on a reported basis but beating the estimate of $262.8 million [2] - The Print and Other segment's revenues were $1.29 billion, down 9.4% year over year and missing the estimate of $1.46 billion [2] Operating Performance - Adjusted operating income was $22 million, reflecting a 33.3% decrease year over year, with an adjusted operating margin of 1.5%, down 70 basis points from the previous year [4] Balance Sheet and Cash Flow - Xerox ended the quarter with cash and cash equivalents of $336 million, down from $576 million at the end of the prior quarter [5] - Net cash used in operating activities was $89 million, while free cash flow was $109 million for the quarter [5] 2025 Guidance - The company expects low single-digit revenue growth at constant currency and an adjusted operating margin of at least 5% [6] - Free cash flow is anticipated to be between $350 million and $400 million, with operating cash flow expected to be around $420-470 million and capital expenditures projected at $70 million [6]