Conduent (CNDT) Q4 2025 earnings summary

Executive summary

• CEO is driving a turnaround with a focus on speed, financial discipline, cost reduction, portfolio rationalization, and organizational simplification.

• Adjusted revenue for FY 2025 was $3,042M, down 4.2% year-over-year; Q4 revenue was $770M.

• Adjusted EBITDA for FY 2025 was $164M, up 32.3% year-over-year, with margin at 5.4%; Q4 margin was 6.5%.

• New business signings (ACV) reached $152M in Q4 and $517M for the year, indicating strong sales activity.

• Analyst Day and further strategic details are planned.

Financial highlights

• Adjusted revenue declined 4.2% year-over-year, mainly due to lower volumes and lost business, partially offset by new business and higher equipment sales in Transportation.

• Adjusted EBITDA increased 32.3% year-over-year, driven by cost optimization, legal cost recovery, and higher margin non-recurring revenue in Commercial.

• Adjusted free cash flow for FY 2025 was $(130)M; Q4 free cash flow was $28M.

• Capex as a percentage of revenue was 3.4% for the year.

• Q4 GAAP net loss was $33M; full-year net loss was $170M, impacted by prior-year divestiture gains.

Outlook and guidance

• Full-year 2026 guidance will be provided with Q1 results; management expects continued revenue growth in government and transportation segments.

• Focus remains on margin expansion, cost reduction, and consistent revenue growth through improved pipeline execution and portfolio optimization.

• Medium-term EBITDA margin target is 8–10%, with a focus on converting EBITDA to positive free cash flow.

• Portfolio rationalization and cost actions are expected to accelerate margin and cash flow improvements.