Conduent Inc (NASDAQ:CNDT) shares tumbled Friday morning following the company's third-quarter 2025 earnings release.

• CNDT shares are sliding on disappointing news. Watch the momentum here.

The company reported revenue of $767 million, down 5% year-over-year and below the $794.33 million analyst estimate. Adjusted revenue also stood at $767 million, down 1.8%. GAAP diluted EPS was a loss of 30 cents compared with earnings of 72 cents a year earlier.

Adjusted EPS came in at nine cents loss, missing the seven cents loss consensus estimate but improving from a 14 cents loss a year earlier.

Adjusted EBITDA rose to $40 million, with a margin expanding to 5.2% from 4.1% in the prior year — signaling operational improvement despite challenging revenue trends.

Also Read: Conduent Earnings Preview

New business signings in Annual Contract Value (ACV) reached $111 million, and the Net ARR Activity Metric (TTM) was $25 million, both reflecting momentum in pipeline and recurring revenue growth efforts.

Operating cash flow for the quarter was negative $39 million, and adjusted free cash flow was negative $54 million. At quarter-end, the company held $264 million in cash and had $198 million of unused capacity in its renewed credit facility. Total debt reached $713 million.

The company repurchased approximately 4.7 million shares during the quarter, demonstrating its commitment to returning value to shareholders despite near-term headwinds persisting.

Management noted that the year-over-year drop in pre-tax income was primarily driven by the absence of the previous year's divestiture-related gain.

Highlights in the quarter included a refinancing of its credit facility and payoff of Term Loan A, a new Pay-by-Plate tolling contract with the Richmond Metropolitan Transportation Authority, expansion of its Philippines operations with a new Lipa-Malvar facility, implementation of its Maven® Disease Surveillance & Outbreak Management System for the State of Delaware, and integration of GenAI-powered analytics into its FastCap® Finance Analytics solution to identify tariff-related exposures.

Outlook

For full-year 2025, Conduent lowered its adjusted revenue guidance to $3.05 billion–$3.10 billion, down from a prior range of $3.10 billion–$3.20 billion and falling short of the consensus estimate of $3.129 billion.

The company reiterated its adjusted EBITDA margin outlook of 5%–5.5%.

CEO Cliff Skelton underscored the company's confidence in its strategic trajectory, noting that "87% of our $1 billion capital allocation target has been achieved to date, and we remain on track to exceed that goal," while emphasizing the firm's "more than ample liquidity through cash reserves and a recently renewed credit facility."

CNDT Price Action: Conduent shares are trading 12.16% lower at $1.95 at publication on Friday.

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