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Jun 30, 2025
Conduent Q2 2025 Earnings Report
Conduent reported its second quarter 2025 financial results, exceeding expectations for Adjusted EBITDA and Adjusted EBITDA margin, with revenue in line with guidance and improved new business signings.
Key Takeaways
Conduent reported a revenue of $754 million for Q2 2025, with a GAAP net loss of $40 million and a diluted EPS of $(0.26). Despite a GAAP loss, the company exceeded expectations for Adjusted EBITDA at $37 million and Adjusted EBITDA margin at 4.9%, showing sequential improvement in revenue and year-over-year improvement in new business signings.
Revenue for Q2 2025 was $754 million, aligning with guidance and showing a slight sequential increase.
Adjusted EBITDA reached $37 million with an Adjusted EBITDA Margin of 4.9%, both exceeding expectations and increasing year-over-year.
New Business Signings ACV improved to $150 million, demonstrating growth both year-over-year and sequentially, supported by a strong pipeline.
The company reported a GAAP Net Loss of $40 million and a GAAP Diluted EPS of $(0.26), primarily due to prior year divestiture-driven gains.
Forward Guidance
Conduent's full-year 2025 outlook projects Adjusted Revenue between $3.1 billion and $3.2 billion, and Adjusted EBITDA Margin between 5.0% and 5.5%. The company remains confident in its strategy and ability to execute, with ongoing portfolio rationalization efforts expected to positively impact margin and cash flow.
Positive Outlook
- Adjusted Revenue is projected to be between $3.1 billion and $3.2 billion for FY 2025.
- Adjusted EBITDA Margin is expected to improve to 5.0% - 5.5% for FY 2025.
- Investments in technology platforms and client relationships are accelerating performance in the Transportation segment.
- Government and legislative decisions may create additional opportunities for the Government segment.
- Portfolio rationalization efforts are expected to positively impact margin and cash flow.
Challenges Ahead
- The company did not provide specific negative forward guidance points in the report.
- Revenue can be affected by seasonality and economic conditions.
Historical Earnings Impact
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