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Mar 31
Xerox Q1 2025 Earnings Report
Xerox Holdings Corporation reported its first-quarter 2025 financial results, highlighting revenue and adjusted operating income momentum driven by reinvention efforts and the ITsavvy acquisition.
Key Takeaways
Xerox Holdings Corporation announced its first-quarter 2025 results with revenue of $1.46 billion, a 3.0% decrease year-over-year, but a 1.1% decrease in constant currency. The company reported a GAAP net loss of $(90) million, or $(0.75) per share, which improved by $23 million year-over-year. Adjusted net loss was $(4) million, or $(0.06) per share. Adjusted operating margin was 1.5%, a 70 basis points decrease year-over-year. The company emphasized momentum from reinvention, ITsavvy integration, and improved sales productivity.
Revenue decreased by 3.0% year-over-year to $1.46 billion, or 1.1% in constant currency.
GAAP net loss improved by $23 million year-over-year to $(90) million, or $(0.75) per share.
Adjusted net loss was $(4) million, or $(0.06) per share, a decline of $15 million year-over-year.
Adjusted operating margin was 1.5%, a decrease of 70 basis points year-over-year.
Xerox
Xerox
Xerox Revenue by Segment
Revenue by Segment
Print and Other Revenue
CapyFin.comIT Solutions Revenue
CapyFin.comEquipment Sales Revenue
CapyFin.comPost Sale Revenue
CapyFin.com Forward Guidance
For fiscal year 2025, Xerox expects low single-digit revenue growth in constant currency, an adjusted operating margin of at least 5.0%, and free cash flow between $350 million and $400 million. This guidance excludes the impact of the pending Lexmark acquisition and potential adverse effects of tariff and trade policy.
Positive Outlook
- Revenue expected to grow low single-digits in constant currency for FY 2025.
- Adjusted operating margin projected to be at least 5.0% for FY 2025.
- Free cash flow expected to be in the range of $350 million to $400 million for FY 2025.
- Minimal tariff-related impacts expected in Q2 2025.
- Working with supplier partners to minimize tariff-related cost increases.
Challenges Ahead
- Guidance does not include any impact from the pending acquisition of Lexmark.
- Guidance excludes potential adverse effects of tariff and trade policy.
- Guidance excludes resultant impact on macroeconomic outlook for the second half of the year.
- Tariff rates and trade policy remain fluid and unpredictable.
- Client sentiment and demand will be monitored in response to price increases or surcharges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income