Xerox Q2 Revenue Down 0.1% YoY to $1.58 Bln.

Thursday, Jul 31, 2025 6:36 am ET1min read

• Xerox Q2 revenue: $1.58 bln, down 0.1% • GAAP net loss: $106 mln, or $0.87 per share • Adjusted net loss: $77 mln, or $0.64 per share • Adjusted operating margin: 3.7% • Operating cash flow: $(11) mln • Free cash flow: $(30) mln

Xerox Holdings Corporation (NASDAQ: XRX) reported its second-quarter 2025 earnings today, with mixed results that reflected both challenges and opportunities for the company. The company's revenue for the quarter was $1.58 billion, down 0.1% year-over-year, marking a slight decline compared to the previous year's performance [2]. Despite this, the company's adjusted operating margin improved to 3.7%, although it was 170 basis points lower than the year-over-year margin [2].

The company reported a GAAP net loss of $106 million, or $0.87 per share, and an adjusted net loss of $77 million, or $0.64 per share, reflecting the ongoing challenges in the market [2]. Operating cash flow was $(11) million, a decrease of $134 million year-over-year, while free cash flow was $(30) million, down $145 million year-over-year [2]. These figures indicate the financial strain the company is under, particularly in terms of cash flow management.

Xerox's 2025 guidance includes expectations for 16-17% growth in constant currency revenue, with an adjusted operating margin of around 4.5% and free cash flow of around $250 million [2]. The guidance also reflects the inclusion of Lexmark's financial results beginning July 1, as well as expected tariff-related expenses, net of mitigation efforts, and one-time costs associated with the implementation of synergy savings [2].

The company's outlook remains cautious, with ongoing uncertainty around tariffs and government policies impacting the print equipment demand. Despite these challenges, Xerox is continuing to implement strategies aimed at improving its financial performance and market position. The company's ability to navigate these challenges will be crucial for its future success.

References:
[1] https://stockanalysis.com/stocks/xrx/
[2] https://seekingalpha.com/news/4475243-xerox-holdings-reports-mixed-q2-results-updates-fy25-outlook

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