Conduent Stock Update: Profitability Gains but Revenue Declines Persist
Conduent Incorporated (NASDAQ: CNDT) released its third-quarter 2025 financial results on Friday, revealing a mixed performance. The company reported improving profitability but ongoing revenue pressure, which made investors cautious.
Following the announcement, Conduent shares traded around $2.22, slipping about 4%. This decline reflected uncertainty over the company’s ability to reverse its revenue downturn despite operational improvements.
Financial Performance Overview
- Quarter ended September 30, 2025.
- Revenue: $767 million, down approximately 5% year over year.
- Adjusted EBITDA: $40 million, up about 25% from Q3 2024.
- Adjusted EBITDA margin: 5.2%, compared to 4.1% last year.
- Pre-tax loss (GAAP): $38 million, versus a $159 million profit in Q3 2024.
- Diluted GAAP EPS: loss of $0.30, compared to earnings of $0.72 a year earlier.
- Operating cash flow: –$39 million; adjusted free cash flow: –$54 million.
The company attributed its margin expansion to disciplined cost management and ongoing operational efficiencies.
Strategic and Financial Position
During the quarter, management completed a debt refinancing program and repurchased around 4.7 million shares, moves that signal confidence in long-term prospects.
“Liquidity remains solid, with roughly $264 million in cash and an unused $198 million credit facility.”
Summary Insight
Despite reduced revenue and continued losses, Conduent’s improved margins and strategic debt actions indicate gradual progress toward financial stability.
Author’s Summary
Conduent improved profit margins through cost control but still faces revenue and cash flow headwinds as it works to sustain investor confidence.