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

7 November 2025

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. ^[3]
Guidance reiterated: FY25 adjusted revenue $3.05–$3.10B; adjusted EBITDA margin 5.0%–5.5%. ^[4]
Sales pipeline: New business signings ACV $111M in Q3; trailing‑12‑month Net ARR activity $25M. ^[5]
Liquidity & buybacks: Quarter‑end cash $264M; $198M of unused capacity under the renewed credit facility; ~4.7M shares repurchased in Q3. ^[6]
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. ^[7]

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. ^[8]

Management highlighted the refinancing again in today’s release, noting the transaction extended maturities and improved financial flexibility. ^[9]

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. ^[10]
Commercial posted $367M (vs. $385M a year ago), reflecting portfolio pruning and softness in certain offerings. ^[11]
Government delivered $238M (vs. $255M), but management described public‑sector performance as resilient despite funding cycles. ^[12]

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. ^[13]

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. ^[14]

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. ^[15]

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. ^[16]

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. ^[17]
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. ^[18]
Transportation & Public Sector: Follow transit and tolling wins (e.g., Richmond MTA) and any incremental AI‑driven wins in Government. ^[19]
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. ^[20]

By the numbers (Q3 2025)

Revenue: $767M (vs. $807M in Q3 2024) — consensus miss per Zacks. ^[21]
GAAP pre‑tax income (loss):-$38M; GAAP diluted EPS: -$0.30. ^[22]
Adjusted EBITDA / margin:$40M / 5.2% (up 110 bps y/y). ^[23]
Adjusted diluted EPS:-$0.09. ^[24]
Cash & liquidity:$264M cash; $198M unused facility capacity at quarter‑end. ^[25]
Share repurchases:~4.7M shares in Q3. ^[26]
Refinancing details:Revolver ~$357M (maturities in 2026 and 2028), $93M performance L/C, pricing SOFR + 1.75%–3.00%; leverage covenant ≤ 4.50x. ^[27]

Sources

Conduent Q3 2025 earnings release (figures, outlook, signings, AI initiatives, liquidity, buybacks). ^[28]
SEC Form 10‑Q for the quarter ended Sept. 30, 2025 (segment results, backlog/RPO details). ^[29]
AP/Zacks snapshot carried by San Francisco Chronicle (consensus context). ^[30]
8‑K (Aug. 26–27, 2025): Credit agreement Amendment No. 3 (refi terms & covenants). ^[31]
GuruFocus brief on margin range (5%–5.5%). ^[32]
Prior FastCap® GenAI expansion (Oct. 29, 2025) for product context. ^[33]

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

Business analyst roadmap for beginners | Business analyst roadmap | Business analyst #trendingshort

Watch this video on YouTube.

References

Tags:

Mateusz Kaczmarek Latest posts

A technology and finance expert writing for TS2.tech. He analyzes developments in satellites, telecommunications, and artificial intelligence, with a focus on their impact on global markets. Author of industry reports and market commentary, often cited in tech and business media. Passionate about innovation and the digital economy.

View all

US stock market slides as AI rally falters: Nvidia, Palantir lead tech selloff
November 7, 2025, 4:26 PM EST. Major indexes retraced Friday as a broad selloff hit the Nasdaq, down about 1.9% to the 50-day average, the S&P 500 off 1.1%, and the Dow down roughly 0.7%. Market breadth turned negative as Nvidia and Palantir led declines after export controls fogged AI hopes. Investors dumped high-growth tech and AI names; other techs like Robinhood and SoFi fell, while Tesla slipped despite a Musk roadmap update. The University of Michigan sentiment index fell to 50.3 and inflation expectations rose to 4.7%, feeding fears of a higher-for-longer Fed. The Innovator IBD 50 ETF slid, and earnings-driven moves dominated: Take-Two tumbled nearly 9% on GTA VI delay; Expedia jumped ~17% on solid results. Traders awaited policy signals and earnings to gauge the AI cycle.
MDT: 14 of 27 13F Filers Hold Medtronic as Holdings Edge Higher (03/31/2025)
November 7, 2025, 4:24 PM EST. At Holdings Channel's review of the latest 13F filings for the 03/31/2025 period, Medtronic PLC (MDT) is held by 14 of 27 funds in the batch. Remember that 13F data reflect long positions only and exclude shorts, so the full stance can differ. In this batch, 6 funds increased MDT shares, 7 reduced, and Dogwood Wealth Management opened a new MDT stake. The aggregate MDT share count among the tracked funds rose by 3,849,542 shares, from 74,538,032 to 78,387,574 (about +5.16%). Notably, Alpha Financial Partners exited MDT during the period. Overall, MDT remains a common holding among managers, though activity is mixed across filers.
AI Stocks Slide as $1 Trillion Market Value Vanishes This Week
November 7, 2025, 4:22 PM EST. U.S. stocks headed for weekly declines as AI valuations prompt fresh selling. The Nasdaq slid more than 4.5% on the week, while the S&P 500 was on track for a >2.7% drop, snapping a three-week win streak. AI-linked names led losses, erasing about $1 trillion in market value as Nvidia, AMD, Microsoft, Palantir, Oracle and Meta tumbled. Nvidia and AMD fell over 11%; Oracle about 10%; Meta ~7%; Microsoft ~4%. In contrast, Apple was flat and Alphabet and Amazon down around 1.5%. The pullback followed Palantir's earnings and caution from top CEOs about a market pullback. Friday's data were muted by a government shutdown, with consumer sentiment near record lows and limited fresh economic indicators.
Invesco QQQ Drops 1.9% as Volume Surges; Dividend Raised to $0.694
November 7, 2025, 4:20 PM EST. Shares of Invesco QQQ (NASDAQ: QQQ) fell 1.9% in mid-day trading, trading as low as $610.30 and last at $611.67 as volume reached 70.9 million-about 50% above the 47.38 million average. The fund's 50-day SMA is $599.86 and the 200-day SMA $557.61. QQQ also boosted its quarterly dividend to $0.694, paid on Oct 31, implying $2.78 annualized and a yield of 0.5%; the ex-dividend date was Sept 22. Institutional holders remained active, with GSG Advisors LLC, Amundi, Greykasell Wealth Strategies Inc., AM Investment Strategies LLC, and Banco Santander S.A. among buyers, and institutions owning about 44.58% of the ETF.
Akamai Breaks Above 200-Day Moving Average
November 7, 2025, 4:16 PM EST. AKAM crossed above its 200-day moving average at $101.92 and traded as high as $104.46 on Wednesday. The stock was about 3.1% higher intraday, with a last trade near $104.24. The move comes as momentum tests the longer-term trend, with a 52-week range of $87.59-$129.17. A one-year chart shows AKAM mounting a breakout above the DMA, potentially signaling bullish continuation if the breakout sustains. The data source is TechnicalAnalysisChannel.com.