Conduent (CNDT) Q3 2025: $767M Revenue, 5.2% Adjusted EBITDA Margin; Debt Refi Completed as Company Pushes GenAI Across Offerings

Conduent Incorporated reported third‑quarter 2025 revenue of $767 million and an adjusted EBITDA margin of 5.2%, meeting management’s guidance and marking a year‑over‑year margin improvement. GAAP results showed a pre‑tax loss of $38 million and net loss of $46 million (‑$0.30 per share), while adjusted diluted EPS came in at ‑$0.09. Management reaffirmed its full‑year outlook for adjusted revenue of $3.05–$3.10 billion and adjusted EBITDA margin of 5.0%–5.5%. 1

A brief snapshot from the Associated Press also noted the company missed Street revenue expectations (Zacks consensus: $794.3 million). 2

Key takeaways

• Revenue & profitability: Q3 revenue $767M (‑5% y/y). Adjusted EBITDA $40M; margin 5.2% vs. 4.1% a year ago. Adjusted EPS ‑$0.09. 1
• Guidance reiterated: FY25 adjusted revenue $3.05–$3.10B; adjusted EBITDA margin 5.0%–5.5%. 1
• Sales pipeline: New business signings ACV $111M in Q3; trailing‑12‑month Net ARR activity $25M. 1
• Liquidity & buybacks: Quarter‑end cash $264M; $198M of unused capacity under the renewed credit facility; ~4.7M shares repurchased in Q3. 1
• Segments: Q3 revenue by segment — Commercial $367M, Government $238M, Transportation $162M. Remaining performance obligations (backlog proxy) ~$1.4B with ~73% expected over the next two years. 3

Debt refinancing: maturities pushed, new performance L/C facility added

Conduent closed an August refinancing that fully prepaid its Term Loan A and reset the revolving credit facility to ~$357M, with $187M maturing Aug. 26, 2028 and $170M maturing Oct. 15, 2026. The company also added a $93M performance letter of credit facility maturing in 2028. Pricing flexes with leverage: SOFR + 1.75%–3.00% on the revolver (or base + 0.75%–2.00%) and a 0.30%–0.55% commitment fee; covenants include first‑lien net leverage ≤ 4.50x and fixed charge coverage ≥ 2.50x. 4

Management highlighted the refinancing again in today’s release, noting the transaction extended maturities and improved financial flexibility. 1

Where growth (and pressure) showed up in Q3

• Transportation rose to $162M (from $141M), helped by transit momentum; Conduent also won a pay‑by‑plate tolling contract with the Richmond Metropolitan Transportation Authority to support all‑electronic tolling. 3
• Commercial posted $367M (vs. $385M a year ago), reflecting portfolio pruning and softness in certain offerings. 3
• Government delivered $238M (vs. $255M), but management described public‑sector performance as resilient despite funding cycles. 3

AI and product updates: from benefits delivery to finance analytics

Conduent says it integrated GenAI and advanced AI into government solutions to improve benefits disbursement, citizen experience, and fraud detection—part of a broader AI program the company has been rolling out across document processing and customer experience platforms. 1

In late October, Conduent expanded its FastCap® Finance Analytics with GenAI‑powered contract and spend analytics, aimed at accelerating contract intake, verifying compliance, and surfacing procurement and tariff‑related risks. 5

Additional operational updates this quarter included a new CXM facility in Lipa‑Malvar (Philippines) for a U.S. healthcare client and a deployment of the Maven® disease surveillance platform for the State of Delaware. 1

Cash flow, cyber‑event costs, and capital allocation

Q3 operating cash flow was -$39M and adjusted free cash flow was -$54M, reflecting quarterly timing and items Conduent excludes from its adjusted metrics. The non‑GAAP reconciliations also identify “direct response costs – cyber event” associated with the January 2025 incident disclosed earlier this year. Management reiterated that 87% of its $1B capital allocation target has been achieved and expects to exceed it. 1

Guidance and what to watch next

• FY25 outlook unchanged:Adjusted revenue $3.05–$3.10B and adjusted EBITDA margin 5.0%–5.5%. Execution on late‑year signings and ramp timing will be key to landing within the range. 1
• Backlog conversion: With ~$1.4B in remaining performance obligations and ~73% due over two years, watch conversion to revenue and working‑capital effects on free cash flow. 3
• Transportation & Public Sector: Follow transit and tolling wins (e.g., Richmond MTA) and any incremental AI‑driven wins in Government. 1
• Balance sheet: The split‑maturity revolver and new performance L/C reduce near‑term risk, but investors will track leverage and covenant headroom as the company targets sustained margin expansion. 4

By the numbers (Q3 2025)

• Revenue: $767M (vs. $807M in Q3 2024) — consensus miss per Zacks. 1
• GAAP pre‑tax income (loss):-$38M; GAAP diluted EPS: -$0.30. 1
• Adjusted EBITDA / margin:$40M / 5.2% (up 110 bps y/y). 1
• Adjusted diluted EPS:-$0.09. 1
• Cash & liquidity:$264M cash; $198M unused facility capacity at quarter‑end. 1
• Share repurchases:~4.7M shares in Q3. 1
• Refinancing details:Revolver ~$357M (maturities in 2026 and 2028), $93M performance L/C, pricing SOFR + 1.75%–3.00%; leverage covenant ≤ 4.50x. 4

Sources

• Conduent Q3 2025 earnings release (figures, outlook, signings, AI initiatives, liquidity, buybacks). 1
• SEC Form 10‑Q for the quarter ended Sept. 30, 2025 (segment results, backlog/RPO details). 3
• AP/Zacks snapshot carried by San Francisco Chronicle (consensus context). 2
• 8‑K (Aug. 26–27, 2025): Credit agreement Amendment No. 3 (refi terms & covenants). 4
• GuruFocus brief on margin range (5%–5.5%). 6
• Prior FastCap® GenAI expansion (Oct. 29, 2025) for product context. 5

Editor’s note: This article is for informational purposes only and does not constitute investment advice. Always perform your own research.