Conduent (CNDT) investor relations material

Executive summary

• Q2 2025 revenue was $754M, in line with guidance and slightly up sequentially, with adjusted EBITDA of $37M and a 4.9% margin, exceeding expectations and up year over year.

• Portfolio rationalization efforts progressed, with several divestitures completed and optimism for further developments by year-end.

• AI initiatives and technology investments are being rolled out across business areas, driving efficiency, quality, and fraud reduction.

• Leadership changes include the election of a new Chairman, signaling a strategic pivot toward growth and portfolio optimization.

• Significant debt paydown and share repurchases have been executed, with 2.7M shares repurchased in Q2.

Financial highlights

• Adjusted revenue for Q2 2025 was $754M, down 2.6% year over year; GAAP net loss was $40M, mainly due to prior-year divestiture gains.

• Adjusted EBITDA rose to $37M from $24M in Q2 2024, with margin up 180 bps to 4.9%.

• New business ACV was $150M, up 6% year over year and 38% sequentially; TCV was $331M, up 21% year over year.

• Cash on balance sheet was $294M; net leverage ratio held at 2.7x, expected to decline in H2 2025.

• Adjusted diluted EPS for Q2 2025 was $(0.13), a slight improvement from $(0.14) year over year.

Outlook and guidance

• Full-year adjusted EBITDA margin midpoint raised, now guided to 5.0–5.5% for FY 2025, with sequential improvement expected.

• Full-year adjusted revenue guidance set at $3,100M–$3,200M, slightly below prior expectations due to first-half performance.

• Year-over-year revenue growth expected in H2 2025, with margin expansion driven by cost programs and price increases.

• Adjusted free cash flow for FY 2025 is expected to range from $0M to $40M.

• 2025 exit rates remain intact and serve as a proxy for 2026 expectations.