Conduent Stock Update: Mixed Third-Quarter Results
Conduent Incorporated (NASDAQ: CNDT) released its Q3 2025 financial results, showing improved profitability alongside declining revenue. Despite operational progress, the stock fell about 4% to $2.22 after the announcement, reflecting investor caution.
Financial Performance Overview
- Revenue for Q3 2025 was $767 million, down approximately 5% year over year.
- Adjusted EBITDA increased 25% to $40 million, raising the margin to 5.2% from 4.1% in the previous year.
The company attributed margin improvement to "stronger cost discipline and operational efficiencies."
GAAP Results and Cash Flow
- GAAP pre-tax loss was $38 million, compared to a $159 million profit in Q3 2024.
- Diluted GAAP earnings per share changed from $0.72 profit to a $0.30 loss.
- Operating cash flow was negative $39 million; adjusted free cash flow was negative $54 million.
Strategic Initiatives
During the quarter, management completed a debt refinancing program and repurchased about 4.7 million shares, aiming to strengthen long-term value.
Liquidity Position
The company maintains strong liquidity with approximately $264 million in cash and an unused $198 million credit facility.
Author's summary: Conduent's Q3 results reveal a push for profitability amid falling revenue and ongoing cash flow challenges, balanced by strategic refinancing and share repurchases.