Conduent Stock Update: Q3 2025 Financial Results
Conduent Incorporated (NASDAQ: CNDT) announced its financial performance for the third quarter of 2025, revealing a mixed picture of profitability gains alongside declining revenue.
Revenue and Profitability
- Revenue amounted to $767 million, down about 5% year over year.
- Adjusted EBITDA improved by approximately 25%, reaching $40 million.
- Adjusted EBITDA margin increased from 4.1% to 5.2% due to enhanced cost discipline and operational efficiencies.
GAAP Results and Cash Flow
- GAAP pre-tax loss was $38 million, a decline from a $159 million profit in Q3 2024.
- Diluted GAAP earnings per share turned negative at $0.30, compared to earnings of $0.72 last year.
- Operating cash flow was a negative $39 million, with adjusted free cash flow at –$54 million, indicating continued cash generation challenges.
Strategic Initiatives and Liquidity
During the quarter, management implemented key strategic actions:
- Completed a debt refinancing program.
- Repurchased approximately 4.7 million shares, reflecting confidence in the company's long-term prospects.
Liquidity remains stable, supported by:
- Approximately $264 million in cash reserves.
- An unused $198 million credit facility.
"The margin expansion reflected stronger cost discipline and operational efficiencies."
Management emphasized confidence in the company’s value through share repurchases and refinancing moves.
Author's summary: Conduent shows profitability gains amid declining revenue and ongoing cash flow struggles, balancing cautious investor response with strategic refinancing and share buybacks.