Xerox Holdings Stock Declines 2.8% Since Q2 Earnings Miss

Core Insights - Xerox Holdings (XRX) reported disappointing second-quarter 2025 results, with both earnings and revenues falling short of the Zacks Consensus Estimate [1][3] - The company's shares have declined 2.8% since the earnings release on July 31, and have depreciated 59.5% over the past year [1][3] Financial Performance - Xerox reported a quarterly adjusted loss of $0.64 per share, missing the consensus estimate of $0.10, and a significant decrease from the previous year's profit [3][7] - Revenues totaled $1.58 billion, which was 0.8% below the consensus estimate and a decline of 0.13% year-over-year [3][7] - Post-sale revenues were $1.24 billion, up 1.5% year-over-year but below the estimate of $1.27 billion [4] - Equipment sales decreased by 5.6% year-over-year to $336 million, slightly exceeding the estimate of $330.9 million [4] - The Print and Other segment's revenues fell 8.6% year-over-year to $1.37 billion, missing the estimate of $1.46 billion [4] Operating Metrics - Adjusted operating income was $59 million, down 30.6% year-over-year, with an adjusted operating margin of 3.7%, a decrease of 170 basis points [8] - Negative free cash flow was reported at $30 million, with cash and cash equivalents at $449 million, down from $576 million at the end of 2024 [9] Future Guidance - For 2025, Xerox anticipates revenue growth of 16%-17% at constant currency, with an adjusted operating margin projected at approximately 4.5% [10] - The company expects free cash flow to be around $250 million and operating cash flow to be approximately $345 million, with capital expenditures anticipated at $95 million [10]