Financial Performance - Second quarter revenue reached $483 million, exceeding expectations, with constant currency revenue growth of 1.0% year-over-year[7] - Sequential constant currency revenue growth was 8.5% for the total company and 6.5% in Ex-L&S revenue[7] - Gross margin was 26.9%, a decrease of 30 basis points year-over-year, while Ex-L&S gross margin was 17.6%, down 110 basis points year-over-year due to higher cost reduction charges[7] - The company is increasing non-GAAP operating margin guidance to 8.0% to 9.0% from a previous 6.5% to 8.5%[8] Sales Metrics - Total contract value (TCV) was $437 million, down 5% year-over-year, but up 5% year-to-date[8] - New business TCV was $122 million, down 43% year-over-year, but up 15% year-to-date[8] - Backlog increased to $2.9 billion, up 5% year-over-year[8] Capital Structure and Pension - The company issued $700 million in Senior Secured Notes[29] - A $250 million contribution was made to U.S Qualified Defined Benefit (QDB) Pension Plans[29] - Planning for $600 million of annuity purchases by year-end 2026[31]

Please refer to the accompanying financial tables for a reconciliation of the GAAP to non-GAAP measures presented, except for financial guidance since such a reconciliation is not practicable without unreasonable effort. | (In millions, except numbers presented as percentages) | 2Q25 2Q24 YTD25 YTD24 | | --- | --- | | Revenue | $483.3 $478.2 $915.4 $966.0 | | YoY revenue change | 1.1 % (5.2) % | | YoY revenue change in constant currency | 1.0 % (3.8) % | | Ex-L&S revenue | $395.7 $396.1 $756.7 $790.7 | | Yo ...

Financial Performance - Total company revenue declined by 11.4% year-over-year to $432 million, or 8.5% in constant currency, driven by software license renewals and lower client volumes[13] - Ex-L&S revenue decreased by 10.4% year-over-year to $361 million, or 5.5% in constant currency, due to lower volumes with existing clients[13] - Total Company gross margin was 24.9%, a decrease of 300 bps year-over-year[21] - Ex-L&S gross margin was 17.8%, a decrease of 20 bps year-over-year[21] - GAAP Operating Profit decreased to $5.1 million from $17.7 million, while Non-GAAP Operating Profit decreased to $11.9 million from $34.4 million[55] - GAAP Diluted Loss Per Share was ($0.42), compared to ($2.18) in the prior year; Non-GAAP Diluted Loss Per Share was ($0.05) compared to earnings of $0.04 in the prior year[59] Sales Metrics and Outlook - Total Company Total Contract Value (TCV) increased by 17% year-over-year to $434 million[11] - Ex-L&S New Business TCV increased by 83% year-over-year to $337 million, driven by new logo signings[11] - The company reiterated full-year constant currency revenue growth guidance of +0.5% to +2.5%[9] - The company increased full-year L&S revenue expectations to $410 million, up from $390 million[9]

Core Insights - Unisys Corporation reported a significant increase in new business signings, with an over 80% year-over-year growth, indicating strong demand for its innovative solutions [3][6] - The company achieved solid profitability results in the first quarter of 2025, with a focus on improving efficiency and enhancing free cash flow [3][6] - Despite a decline in overall revenue, Unisys reiterated its full-year financial guidance, expecting constant currency revenue growth and a path to exceed profitability guidance [3][16] Financial Performance - Total revenue for 1Q25 was $432.1 million, down 11.4% from $487.8 million in 1Q24, with a constant currency decline of 8.5% [5][6] - Excluding License and Support (Ex-L&S) revenue, the total was $361.0 million, reflecting an 8.5% year-over-year decrease [5][6] - Gross profit margin decreased to 24.9% from 27.9% year-over-year, primarily due to the timing of software license renewals [5][8] Segment Results - Digital Workplace Solutions (DWS) revenue declined 10.4% year-over-year to $118.6 million, with a gross profit margin of 14.2% [9][10] - Cloud, Applications & Infrastructure Solutions (CA&I) revenue decreased 6.3% year-over-year to $176.6 million, maintaining a gross profit margin of 19.5% [9][10] - Enterprise Computing Solutions (ECS) revenue fell 14.8% year-over-year to $118.7 million, with a gross profit margin of 47.7% [11][10] Cash Flow and Balance Sheet - Cash provided by operations increased to $33.3 million from $23.8 million in 1Q24, while free cash flow improved to $13.2 million from $3.9 million [12][6] - The company reported cash and cash equivalents of $393.1 million as of March 31, 2025, up from $376.5 million at the end of 2024 [12][40] Guidance and Outlook - Unisys reiterated its full-year 2025 revenue growth guidance in constant currency, projecting a growth range of 0.5% to 2.5% [16] - The company expects non-GAAP operating profit margin to be between 6.5% and 8.5% for the full year [16]