Conduent 2025 Q3 Earnings Sharp Net Loss of $0.30 Per Share, -140% Year-Over-Year

Conduent (CNDT) reported Q3 2025 earnings that missed expectations, with a net loss of $0.30 per share versus a $0.06 loss estimated by analysts. Revenue declined 5% to $767 million, below the $794.33 million forecast. While adjusted revenue and EBITDA margin guidance were met, the company’s GAAP results fell short, reflecting operational challenges.

Revenue

Conduent’s total revenue decreased by 5.0% year-over-year to $767 million, driven by declines in the Commercial and Government segments. The Transportation segment bucked the trend, achieving a 14.9% year-over-year revenue increase. Commercial Industries revenue fell 4.7% due to volume declines in its largest client, while Government Services revenue dropped 6.7% amid implementation delays and a client contract cancellation.

Earnings/Net Income

The company reported a net loss of $46 million in Q3 2025, a 137.4% deterioration from a $123 million profit in the prior-year period. On a per-share basis, the loss of $0.30 represented a 140.0% negative change from $0.75 in 2024 Q3. The EPS shortfall underscores persistent operational pressures despite adjusted EBITDA margin improvements.

Post-Earnings Price Action Review

The strategy of buying Conduent shares after a revenue raise and holding for 30 days showed favorable performance over three years, yielding a 14.85% average return. Quarterly returns were consistent, with 5.46%, 3.08%, and 6.31% in Q1, Q2, and Q3 of 2023, respectively. Holding the stock for 30 days post-revenue announcements proved beneficial as prices stabilized and often rose on positive momentum.

CEO Commentary

CEO Cliff Skelton highlighted progress in operational efficiency, AI-driven enhancements, and portfolio rationalization, with 87% of a $1 billion capital allocation target achieved. He emphasized confidence in liquidity, cash generation, and Transportation sector growth, while acknowledging challenges in the Commercial segment and government contract delays.

Guidance

Conduent reiterated FY 2025 adjusted revenue guidance of $3.05–$3.10 billion and an adjusted EBITDA margin of 5.0%–5.5%. The company expects to exceed its $1 billion capital allocation target and maintain liquidity through cash reserves and a renewed credit facility.

Additional News

1. Debt Refinancing: Conduent completed a debt refinancing program, extending its credit facility maturity and paying off Term Loan A to improve financial flexibility.

2. AI Integration: The company integrated generative AI into government solutions to enhance fraud detection and benefit disbursement processes.

3. Philippines Expansion: A new facility in Lipa-Malvar was announced to support customer experience management for a major U.S. healthcare client.