In its fiscal 2025 earnings report, Conduent revenue plunges as massive losses continue, with the business process outsourcing company posting a significant decline in revenue alongside a larger net loss compared to the prior year. The Florham Park, New Jersey-based firm reported muted top-line figures and wide losses, even as certain operational metrics showed modest improvement.
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Conduent’s financial performance extends a period of pressure
Conduent posted full-year revenue of roughly $3.04 billion, down significantly from 2024 levels, while extending its streak of quarterly and annual net losses. The company’s earnings results underscored continuing challenges across several core segments, even amid targeted cost control and operational reforms.
Read on to understand the latest developments, what the numbers show, and what may be ahead for Conduent.
In the fourth quarter alone, Conduent generated around $770 million in revenue, below analysts’ expectations and marking a year-over-year decrease. Net losses for the quarter and year reflected the ongoing struggle to reverse shrinking revenues, while adjusted margins and profitability metrics posted incremental gains driven by efficiency actions and business realignment.
Sharp Revenue Declines Across 2025
Conduent’s revenue contraction in 2025 was pronounced, with full-year revenue at approximately $3.04 billion — nearly a 9.4 % dip from the prior period. Quarterly results followed the same trend, with fourth-quarter revenue of about $770 million coming in several percentage points below the year-ago quarter’s performance.
The weakening top line was felt across multiple reporting units, with declines in both commercial and government outsourcing operations and only modest improvement in transportation services. Management acknowledged the competitive pressures and slowing demand as factors weighing on sales volumes and contract renewals throughout the period.
Investors and market observers flagged the revenue performance as a core issue, as sustained declines have compounded Conduent’s struggles to achieve operating stability and profitability.
Wide Net Loss Persists Despite Cost Moves
Beyond softer revenue, Conduent’s balance sheet painted a stark picture on profitability. For fiscal 2025, the company reported a net loss of approximately $160 million, a marked swing from net earnings a year earlier. In the fourth quarter, Conduent posted a net loss as well, reflecting persistent pressure on the bottom line.
Despite these losses, Conduent’s adjusted profitability measures — such as earnings before interest, taxes, depreciation and amortization — did show positive movement. Adjusted EBITDA for 2025 increased to about $164 million, with margins near 5.4 %, signaling progress on cost containment and mix optimization. In the fourth quarter, adjusted EBITDA and margins also climbed year-over-year.
These improvements were largely attributed to targeted cost reductions and structural adjustments within the business. Yet even as adjusted profitability advanced, free cash flow remained negative, and operating cash was insufficient to offset ongoing defecits.
Operational Adjustments and Segment Performance
Conduent’s management team pointed to strategic initiatives designed to realign operations and strengthen long-term performance. These efforts included targeted cost cutting, enterprise reorganization, and a renewed emphasis on converting new sales pipelines into secured contracts.
Segment by segment, Conduent saw mixed results:
- Commercial Services: Continued to struggle with year-over-year revenue declines and client slowdowns.
- Government Services: Revenue pressures persisted, though cost savings and efficiency gains helped temper the impact.
- Transportation Solutions: Showed modest growth, with improved revenue trends building on service expansions and new contract wins.
Executives described the transportation segment’s performance as a relative bright spot, contributing to higher margins in certain periods and helping partially offset declines elsewhere.
Cash Position and Financial Flexibility
On the liquidity front, Conduent ended 2025 with about $243 million in cash on hand and roughly $223 million of unused borrowing capacity under its credit facility. While this provided some cushion for operations, negative operating and free cash flows underscored persistent challenges in converting revenue into cash generation.
Operating cash flow for the full year remained negative, while adjusted free cash flow deepened into deficit territory — trends that highlighted ongoing pressure on the company’s ability to sustain investment and service obligations without continued financing support or business improvement.
Market Reactions and Investor Sentiment
The company’s earnings release triggered notable activity in the stock market, with Conduent’s shares fluctuating as investors weighed the implications of falling revenue and sustained losses against signs of operational improvement.
Some market participants responded to the adjusted EBITDA growth and margin gains with cautious optimism, interpreting these results as early indicators of potential stabilization. However, broader revenue contraction and persistent net losses reinforced skepticism among others, particularly those focused on near-term profitability and cash conversion.
The trading behavior reflected a tug-of-war between performance improvements in select financial metrics and the ongoing reality of shrinking sales and earnings deficits.
Management’s Tone and Future Strategy
Leadership at Conduent emphasized its stepped-up efforts to sharpen business focus, reduce cost layers, and accelerate execution across critical functions. Management reiterated that improving the company’s go-to-market capabilities, strengthening sales execution, and optimizing portfolio mix remained core priorities in 2026 and beyond.
In outlining its tactical approach, the company highlighted the need to convert an expanding sales pipeline into reliable revenue streams, while also cultivating higher-margin offerings — including technology and automation services — to support longer-term growth prospects.
Executives have signaled continued emphasis on financial discipline, operational simplification, and structural efficiency as part of broader efforts to steer the business toward sustained improvement.
What Investors and Clients Should Watch Next
Looking ahead, several key indicators will be closely monitored by investors, clients and industry watchers:
- Revenue Momentum: Whether Conduent can reverse top-line declines and secure stronger contract wins.
- Profitability Trajectory: The ability to sustain adjusted margin gains while reducing net losses and negative cash flow.
- Segment Performance: Continued balance between stable government/transportation revenue and improvements in commercial services.
- Execution of Strategic Priorities: Effectiveness of cost optimization, pipeline conversion, and portfolio optimization in supporting growth.
These factors will help shape confidence in Conduent’s longer-term prospects and its capacity to build meaningful, sustainable financial momentum after several years of pressure.
