Conduent Stock Update: Profit Gains Tempered by Revenue Decline
Conduent Incorporated (NASDAQ: CNDT) announced its third-quarter 2025 results on Friday, revealing a complex financial picture. While profitability improved, revenue continued to decline, and losses persisted. Following the news, the company’s shares hovered around $2.22, slipping roughly 4% as investors weighed operational progress against sustained top-line pressure.
Quarterly Financial Performance
For the quarter ending September 30, 2025, Conduent reported revenue of $767 million, representing a year-over-year decrease of about 5%. Adjusted EBITDA rose to $40 million, up 25% from the same period in 2024, improving the adjusted EBITDA margin to 5.2% from 4.1%.
“The margin improvement reflects stronger cost control and greater operational efficiency,” stated the company.
On a GAAP basis, Conduent posted a pre-tax loss of $38 million, compared with a $159 million profit in the third quarter of 2024. Diluted GAAP earnings per share shifted to a loss of $0.30, after posting $0.72 in earnings a year ago. Operating cash flow came in at negative $39 million, while adjusted free cash flow dropped to –$54 million, reflecting weak cash generation.
Strategic and Financial Actions
- Completed a debt refinancing initiative.
- Repurchased approximately 4.7 million shares, signaling management’s confidence in long-term value.
- Maintained liquidity of roughly $264 million in cash with an additional $198 million undrawn credit facility.
Outlook
Despite the challenges posed by declining revenue and losses, management continues to focus on operational discipline and shareholder value creation.
Author’s Summary
Conduent’s third-quarter results reveal improved margins and disciplined management, yet persistent revenue losses and negative cash flow continue to weigh on investor sentiment.