Core Insights - Conduent Incorporated reported its Q3 2025 financial results, highlighting a 5.0% decline in revenue year-over-year, with adjusted revenue down 1.8% [2][3][4] - The company achieved a significant increase in adjusted EBITDA, which rose by 25.0% year-over-year, reflecting improved operational efficiency [3][8] - New business signings remained consistent year-over-year, particularly in the Public Sector, despite challenges such as government funding cycles and a federal government shutdown [3][4] Financial Performance - Revenue for Q3 2025 was $767 million, compared to $807 million in Q3 2024 [3][4] - Adjusted EBITDA for the quarter was $40 million, with an adjusted EBITDA margin of 5.2%, up from 4.1% in the prior year [3][8] - GAAP net loss for the quarter was $(46) million, a significant decrease from a net income of $123 million in the same period last year [3][4] Operational Highlights - The company maintained a cash balance of $264 million and had $198 million in unused capacity under its renewed credit facility [5] - Conduent repurchased approximately 4.7 million shares of common stock during the quarter [5] - The company has achieved 87% of its $1 billion capital allocation target through portfolio rationalization efforts [3][4] Future Outlook - For FY 2025, Conduent projects adjusted revenue between $3,050 million and $3,100 million, with an adjusted EBITDA margin target of 5.0% to 5.5% [9] - The company continues to focus on cash generation and expanding its pipeline opportunities, particularly within its existing client base [3][4]

Core Insights - Conduent Incorporated reported a strong start to 2025, with results aligning with internal expectations despite macroeconomic uncertainties [2] - The company achieved improvements in new business signings and Net Annual Recurring Revenue (ARR) metrics, indicating potential future growth [2] - Conduent's portfolio rationalization efforts are on track to achieve over $1 billion in deployable capital [2] Financial Performance - Q1 2025 revenue was $751 million, down 18.5% from $921 million in Q1 2024 [3] - Adjusted revenue for Q1 2025 was $751 million, an 8.5% decrease from $821 million in Q1 2024 [3] - GAAP net loss for Q1 2025 was $(51) million compared to a net income of $99 million in Q1 2024 [3] - Adjusted EBITDA for Q1 2025 was $37 million, a 2.8% increase from $36 million in Q1 2024, with an adjusted EBITDA margin of 4.9% [3][5] - Operating cash flow was $(58) million, a decline of 56.8% year-over-year [3] Business Highlights - New business signings for the quarter amounted to $109 million [7] - The Net ARR Activity Metric for the trailing twelve months was $116 million [7] - Conduent's liquidity position remained strong with $293 million in cash and a largely undrawn $550 million revolving credit facility [4] Outlook - The company projects adjusted revenue for FY 2025 to be between $3.1 billion and $3.25 billion, compared to $3.176 billion in FY 2024 [8] - Adjusted EBITDA margin for FY 2025 is expected to be between 4.5% and 5.5% [9]