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Mar 31, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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