Conduent Stock Update: Profit Gains Tempered by Revenue Decline
Conduent Incorporated (NASDAQ: CNDT) released its third-quarter 2025 financial results on Friday, showing a mix of stronger profitability and falling revenue. Following the announcement, the stock traded near $2.22, down about 4%, as investors reacted cautiously to the results.
Revenue and Profitability Overview
For the quarter ended September 30, 2025, Conduent reported revenue of $767 million, marking a 5% decline compared with the previous year. Adjusted EBITDA increased to $40 million, up roughly 25% from 2024, raising the adjusted EBITDA margin to 5.2% from 4.1%.
“The margin expansion reflected stronger cost discipline and operational efficiencies,” the company stated.
Losses and Cash Flow
On a GAAP basis, Conduent posted a pre-tax loss of $38 million, following a $159 million profit in the same period last year. Diluted GAAP earnings per share shifted to a loss of $0.30 from earnings of $0.72 in 2024. Operating cash flow came in at negative $39 million, with adjusted free cash flow at –$54 million, pointing to ongoing challenges in cash generation.
Strategic Actions and Liquidity
During the quarter, management completed a debt refinancing effort and repurchased around 4.7 million shares, signaling continued confidence in Conduent’s long-term prospects. The company reported stable liquidity with approximately $264 million in cash and an unused $198 million credit facility.
Author Summary
Conduent improved profitability through cost control and efficiency gains, but declining revenue, mounting losses, and negative cash flow continue to weigh on investor sentiment.