Navigating Contradictions: Insights from the 2025 Q1 Earnings Call on Cyber Events, AI Growth, and Debt Strategy
Earnings DecryptWednesday, May 7, 2025 7:22 pm ET

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Revenue and Earnings Performance:
- Conduent reported an adjusted revenue of $751 million for Q1 2025, down 8.5% year-over-year.
- The decline was mainly attributed to the government segment, which experienced a 16% decrease in revenue.
- The government segment's performance was impacted by the termination of a large government health care contract and operational service level reserve adjustments.
Government Business Opportunities:
- Despite the decline in the government segment's revenue, Conduent sees opportunities in Medicaid and SNAP fraud prevention, Medicaid eligibility work, and efficiency initiatives.
- The company's focus on fraud prevention capabilities and AI-driven solutions positions it to benefit from government efforts to reduce fraud and waste.
Portfolio Rationalization and Debt Reduction:
- Conduent completed three divestitures in 2024, generating nearly $800 million in net proceeds and reduced debt by $639 million and repurchased 61 million shares.
- The company plans to identify assets that could generate an additional $350 million in proceeds, aiming to enhance portfolio focus and reduce debt further.
New Business and Sales Growth:
- Conduent's new business ACV grew 14% year-over-year in Q1 2025, with new TCV up 96% year-over-year at $280 million.
- The growth was driven by an 8-year deal in the international transit business and an increased sales focus on new capabilities and expanded relationships with existing clients.
CNDT Total Revenue YoY, Total Revenue
Revenue and Earnings Performance:
- Conduent reported an adjusted revenue of $751 million for Q1 2025, down 8.5% year-over-year.
- The decline was mainly attributed to the government segment, which experienced a 16% decrease in revenue.
- The government segment's performance was impacted by the termination of a large government health care contract and operational service level reserve adjustments.
Government Business Opportunities:
- Despite the decline in the government segment's revenue, Conduent sees opportunities in Medicaid and SNAP fraud prevention, Medicaid eligibility work, and efficiency initiatives.
- The company's focus on fraud prevention capabilities and AI-driven solutions positions it to benefit from government efforts to reduce fraud and waste.
Portfolio Rationalization and Debt Reduction:
- Conduent completed three divestitures in 2024, generating nearly $800 million in net proceeds and reduced debt by $639 million and repurchased 61 million shares.
- The company plans to identify assets that could generate an additional $350 million in proceeds, aiming to enhance portfolio focus and reduce debt further.
New Business and Sales Growth:
- Conduent's new business ACV grew 14% year-over-year in Q1 2025, with new TCV up 96% year-over-year at $280 million.
- The growth was driven by an 8-year deal in the international transit business and an increased sales focus on new capabilities and expanded relationships with existing clients.

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