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Unisys Q1 2025 Earnings Report
Unisys reported a decline in revenue and profitability for the first quarter of 2025, primarily due to the timing of software license renewals and lower client volumes, but saw significant growth in new business signings.
Key Takeaways
Unisys reported a total company revenue of $432.1 million for the first quarter of 2025, an 11.4% decrease year-over-year. The company experienced a net loss of $29.5 million and an operating income of $5.1 million. Despite the declines in revenue and profitability, Unisys saw an 83% year-over-year increase in Ex-L&S New Business Total Contract Value (TCV) driven by new logo signings and reiterated its full-year 2025 guidance.
Total company revenue decreased by 11.4% year-over-year to $432.1 million, primarily due to the timing of software license renewals and lower client volumes.
Net loss attributable to Unisys Corporation was $29.5 million, compared to a net loss of $149.5 million in the prior year, showing an improvement.
Ex-L&S New Business Total Contract Value (TCV) increased by 83% year-over-year to $337 million, driven by new logo signings.
Gross profit margin declined by 300 basis points year-over-year to 24.9%, mainly due to the timing of software license renewals.
Revenue by Segment
Forward Guidance
Unisys reiterates its full-year 2025 revenue growth and profitability guidance, expecting constant currency revenue growth of 0.5% to 2.5% and non-GAAP operating profit margin of 6.5% to 8.5%.
Positive Outlook
- Reiterating full-year 2025 revenue growth guidance in constant currency of 0.5% to 2.5%.
- Reiterating full-year 2025 non-GAAP operating profit margin guidance of 6.5% to 8.5%.
- Anticipates a sequential increase in Ex-L&S revenue beginning in the second quarter of 2025.
- Sees a path to come in above the midpoint of profitability guidance.
- Favorable trends in License & Support solutions with clients making long-term commitments.
Challenges Ahead
- Constant currency revenue guidance translates to reported revenue growth of (1.1)% to 0.9%, indicating a potential reported decline.
- Assumes L&S revenue of approximately $410 million, which is a significant portion of total revenue and subject to timing fluctuations.
- Ex-L&S constant currency revenue growth is projected at 1.0% to 5.0%, which is a relatively modest growth rate.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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