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

Conduent Inc. (NASDAQ: CNDT) shares dropped Friday morning after the company reported lower revenue and earnings for the third quarter of 2025. The market reacted negatively to the results, with CNDT stock declining on disappointing numbers.

Third-Quarter Financial Highlights

Revenue stood at $767 million, down 5% year over year and below the analyst consensus of $794.33 million.
Adjusted revenue was also $767 million, reflecting a 1.8% decline.
GAAP diluted EPS showed a loss of $0.30 compared to earnings of $0.72 a year earlier.
Adjusted EPS recorded a $0.09 loss, missing the consensus loss estimate of $0.07 but improving from a $0.14 loss last year.
Adjusted EBITDA increased to $40 million, raising the margin to 5.2% from 4.1% in the same quarter last year, indicating better operational efficiency despite weaker revenue.

Business Momentum and Cash Position

New business signings in Annual Contract Value (ACV) reached $111 million.
The Net ARR Activity Metric (TTM) stood at $25 million, reflecting continued growth in recurring revenue streams.
Operating cash flow was negative $39 million, while adjusted free cash flow was negative $54 million.
At quarter-end, the company held $264 million in cash and had $198 million of unused capacity in its renewed credit facility.
Total debt stood at $713 million.

"Despite revenue headwinds, our margin expansion and liquidity position show clear operational progress," said Conduent’s CEO.

The company also repurchased approximately 4 million shares, signaling continued confidence in its long-term financial plan.

Author’s Summary

Conduent’s Q3 2025 results show tighter revenue but signs of improved efficiency and solid liquidity, reinforcing the company’s stability amid a challenging market.

Benzinga — 2025-11-07