Conduent revenue plunges as massive losses continue in the company’s latest earnings figures, showing another year of shrinking top-line results and a widening bottom-line deficit for the business services provider. The fiscal 2025 report released this week reveals a full-year revenue drop, a wider net loss compared with the prior year, and results that fell short of analyst expectations.
If you follow Conduent’s financial performance or invest in tech services stocks, keep reading for a detailed breakdown and what it means next.
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Conduent’s 2025 financial results showed revenue of approximately $3.04 billion, down nearly 4% from the prior year, while the company reported a full-year net loss of around $160 million. In the fourth quarter alone, revenue came in at roughly $770 million, missing analyst forecasts, and the company logged a net loss for the period as well. Although some profitability metrics like adjusted EBITDA and margins improved slightly, the overall picture points to sustained financial pressure as the company works to stabilize operations and grow revenue.
Explore the full analysis below to understand the trends behind Conduent’s revenue drop and continued losses.
Conduent’s 2025 Financial Highlights: Revenues and Losses
Conduent’s fiscal year 2025 results paint a stark picture of a challenging revenue environment. Full-year revenue declined to about $3.04 billion, compared with roughly $3.36 billion the previous year, representing a significant top-line contraction. The company’s adjusted results showed a similar downward trend, with adjusted revenue falling compared to 2024 figures.
On the bottom line, Conduent swung to a full-year loss of about $160 million versus a substantial pre-tax profit in the prior year. The fourth quarter also saw a net loss for the period, adding to mounting investor concerns around profitability and the company’s ability to return to stable earnings.
Quarterly Performance: Missing Targets and Shrinking Revenue
In the fourth quarter, Conduent reported revenue of approximately $770 million, slightly below expectations and down from about $800 million in the same quarter of the prior year. The revenue decline of roughly 3.8% year-over-year illustrates the broader trend of weakening demand across parts of Conduent’s business.
Adjusted earnings per share also fell short of forecasts, with the company posting a loss on a per-share basis larger than analysts had projected. These results contributed to a sell-off in the company’s stock price and renewed questions from market watchers about the pace of any turnaround.
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Gross Revenue Trends and Segment Performance
Conduent’s revenue pressures reflect mixed performance across its core segments:
- Government segment — modest improvement in revenue trends but still below prior-year levels.
- Transportation segment — modest growth in some areas, driven in part by service contract expansion.
- Commercial segment — sharper revenue decline, reflecting softer business demand in commercial outsourcing.
Despite these challenges, some areas like transportation and government services showed sequential gains in certain periods, hinting at pockets of resilience even amid overall decline.
Profitability Metrics: EBITDA Gains but Losses Persist
While the headline numbers tell a story of revenue plunge and growing losses, Conduent did see improvements in adjusted EBITDA and margin performance. For the full year, adjusted EBITDA increased to about $164 million, with a margin near 5.4%, up compared to prior periods. In the fourth quarter, adjusted EBITDA margins also improved, signaling that internal cost optimization efforts may be gaining some traction.
These margin enhancements were driven by ongoing cost-cutting measures, operational efficiencies, and improved mix in higher-margin services. However, these gains have not yet translated into net income, and the company still recorded negative free cash flow for the year.
Balance Sheet and Cash Flow: Mixed Signals
At year-end, Conduent held roughly $243 million in cash, with additional unused credit capacity providing some liquidity cushion. Despite this, operating and free cash flows remained negative for the full year, underscoring ongoing challenges with converting revenue into sustainable cash generation.
The company’s net adjusted leverage ratio stayed elevated, reflecting continued debt relative to earnings, although management highlighted strategies to simplify operations and improve financial discipline as part of its turnaround efforts.
Management’s Take: Strategic Priorities and Outlook
In discussing the results, Conduent’s leadership emphasized a framework aimed at stabilizing and growing the business. Strategic priorities outlined include:
- accelerating decision-making and execution,
- enforcing financial discipline,
- reducing organizational costs,
- optimizing the company’s portfolio,
- converting sales pipeline growth into actual revenue.
Although these initiatives signal a focused effort to address long-standing operational issues, management acknowledged that there is still substantial work ahead to return the company to consistent revenue growth and profitability.
Stock Market Reaction and Investor Sentiment
The financial results triggered notable volatility in Conduent’s stock trading. Shares reacted to the combined effect of lower-than-expected revenue and continued losses, even as investors weighed the margin improvements and strategic direction outlined by leadership.
Market sentiment remained cautious, with analysts pointing out that while efficiency gains and new business pipelines offer potential, sustained revenue growth is key to rebuilding investor confidence.
What This Means for the Future of Conduent
The latest financial results underscore the ongoing struggle for Conduent to reverse revenue decline while controlling costs and strengthening profitability. With shrinking top-line figures and sustained losses, the company’s turnaround plan faces real tests in execution.
Future quarters will likely focus intensely on whether new business wins, cost discipline, and portfolio optimizations can translate into more robust revenue growth. For investors and stakeholders, those early indicators will be crucial in evaluating Conduent’s long-term prospects.
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