Conduent Stock Update: Profit Growth Shadowed by Revenue Decline
Conduent Incorporated (NASDAQ: CNDT) released its third-quarter 2025 results on Friday, showing improved profitability but ongoing revenue declines. Following the announcement, the stock traded near $2.22, down about 4%, indicating investor caution despite operational improvements.
Financial Performance
- Quarter ending September 30, 2025: Revenue reached $767 million, a 5% year-over-year decline.
- Adjusted EBITDA rose to $40 million, an increase of approximately 25% compared with Q3 2024.
- Adjusted EBITDA margin grew to 5.2%, up from 4.1% a year earlier, reflecting better cost controls and improved efficiency.
Profitability and Cash Flow
Despite margin gains, Conduent posted a pre-tax loss of $38 million on a GAAP basis, compared to a $159 million profit in the same period last year. Diluted GAAP earnings per share came in at a loss of $0.30, while the prior year showed earnings of $0.72.
Operating cash flow was negative $39 million, and adjusted free cash flow was negative $54 million, indicating persistent pressure on liquidity and cash generation.
Strategic Initiatives
Management emphasized several key actions aimed at strengthening the company’s financial position and shareholder value:
- Completion of a debt refinancing program.
- Repurchase of about 4.7 million shares.
“These steps demonstrate confidence in Conduent’s long-term potential and commitment to maintaining solid liquidity,” the company said.
As of the end of the quarter, Conduent maintained approximately $264 million in cash and access to an unused $198 million credit facility.
Author’s Summary
Conduent’s Q3 2025 results highlight a firm achieving stronger margins but still struggling with revenue erosion and negative cash flow while reinforcing investor trust through refinancing and buybacks.
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