Xerox (XRX) shares plummeted 5.17% in pre-market trading on Thursday following the release of the company's disappointing second-quarter 2025 financial results. The office equipment giant reported a significant loss, missing analyst expectations and raising concerns about its financial health.

For the quarter ended June 30, Xerox reported an adjusted loss of $0.64 per share, falling far short of the $0.08 earnings per share analysts had expected. This represents a stark contrast to the $0.29 earnings per share reported in the same quarter last year. The company's GAAP net loss widened to $106 million, a decline of $124 million year-over-year. Revenue remained nearly flat at $1.58 billion, slightly above the analyst consensus of $1.55 billion, but still showing a 0.1% decrease from the previous year.

Despite the gloomy financial results, Xerox announced some strategic moves that could potentially improve its future outlook. The company completed its acquisition of Lexmark, which is expected to strengthen its core offerings and provide synergy opportunities. Additionally, Xerox entered into an agreement with Kyocera to offer high-speed production inkjet presses, potentially expanding its product portfolio. The company maintains an optimistic outlook, projecting full-year revenue growth of 16-17% in constant currency. However, investors seem to be focusing on the immediate financial challenges, as reflected in the significant stock price drop.