Conduent Inc (NASDAQ: CNDT) shares dropped Friday following the release of its third-quarter 2025 earnings. The company reported revenue of $767 million, down 5% year-over-year and below the analysts’ estimate of $794.33 million. Adjusted revenue declined 1.8% to $767 million.
GAAP diluted earnings per share (EPS) showed a loss of 30 cents, compared to earnings of 72 cents a year earlier. Adjusted EPS reflected a loss of nine cents, missing the consensus estimate of a seven-cent loss but an improvement from the 14 cents loss recorded the previous year.
Adjusted EBITDA increased to $40 million, with margins expanding to 5.2% from 4.1% in the prior year, indicating operational improvements despite weak revenue trends.
These figures show continued momentum in the company’s pipeline and recurring revenue growth efforts.
Operating cash flow for the quarter was negative $39 million, and adjusted free cash flow was negative $54 million. At the end of the quarter, Conduent held $264 million in cash and had $198 million of unused capacity on its renewed credit facility. Total debt stood at $713 million.
The company repurchased approximately 4 million shares during the period.
"Adjusted EBITDA rose to $40 million, with a margin expanding to 5.2% from 4.1% in the prior year — signaling operational improvement despite challenging revenue trends."
Author's summary: Conduent faced revenue and earnings declines in Q3 2025 but showed operational improvement and maintains solid liquidity to support its capital plans.