Conduent Cuts 2025 Revenue Forecast, But CEO Says Capital Plan On Track With Cash Cushion

Core Insights - Conduent Inc's shares fell significantly following the release of its third-quarter 2025 earnings, reflecting disappointing financial results [1][2]. Financial Performance - The company reported revenue of $767 million, a decrease of 5% year-over-year, and below the analyst estimate of $794.33 million. Adjusted revenue also stood at $767 million, down 1.8% [2]. - GAAP diluted EPS was a loss of 30 cents, compared to earnings of 72 cents a year earlier. Adjusted EPS reported a loss of nine cents, missing the consensus estimate of a seven cents loss but showing improvement from a 14 cents loss a year earlier [2]. - Adjusted EBITDA increased to $40 million, with a margin expanding to 5.2% from 4.1% in the prior year, indicating operational improvement despite challenging revenue trends [3]. Cash Flow and Debt - Operating cash flow for the quarter was negative $39 million, and adjusted free cash flow was negative $54 million. At the end of the quarter, the company had $264 million in cash and $198 million of unused capacity in its renewed credit facility. Total debt reached $713 million [4]. - The company repurchased approximately 4.7 million shares during the quarter, demonstrating a commitment to returning value to shareholders despite ongoing challenges [4]. Business Developments - New business signings in Annual Contract Value (ACV) reached $111 million, and the Net ARR Activity Metric (TTM) was $25 million, reflecting positive momentum in pipeline and recurring revenue growth efforts [3]. - Highlights included refinancing of its credit facility, payoff of Term Loan A, a new Pay-by-Plate tolling contract, expansion of operations in the Philippines, and integration of GenAI-powered analytics into its finance solutions [6]. Outlook - For the full year 2025, Conduent lowered its adjusted revenue guidance to $3.05 billion–$3.10 billion, down from a prior range of $3.10 billion–$3.20 billion, and below the consensus estimate of $3.129 billion. The adjusted EBITDA margin outlook remains at 5%–5.5% [7]. - CEO Cliff Skelton expressed confidence in the company's strategic trajectory, noting that 87% of the $1 billion capital allocation target has been achieved, and emphasized the firm's ample liquidity through cash reserves and a renewed credit facility [8].