Conduent Unveils Q3 2025 Financials, Emphasizes Debt Refinance and AI Integration
Conduent Incorporated (Nasdaq: CNDT), a leader in technology-driven business process services, released its financial results for the third quarter of 2025 on November 7, 2025. Key highlights include significant insights on debt refinancing and AI integration within their operations.
Key Financial Results for Q3 2025
Conduent reported the following financial metrics for the third quarter:
- Revenue: $767 million, down 5.0% from $807 million in Q3 2024.
- Adjusted Revenue: $767 million, a decrease of 1.8% from $781 million in the previous year.
- GAAP Net Loss: $(46) million compared to a profit of $123 million a year earlier.
- Adjusted EBITDA: $40 million, a 25.0% increase from $32 million in Q3 2024.
- Adjusted EBITDA Margin: 5.2%, up from 4.1% year-over-year.
Debt Refinance and Operational Efficiency
Conduent successfully completed the refinancing of its revolving credit facility. This initiative further extended the maturity of the debt and eliminated Term Loan A. The refinancing comes amid a strong focus on enhancing operational efficiency, which has contributed to the improved adjusted EBITDA performance.
AI Integration in Solutions
In an effort to advance its service offerings, Conduent has now deployed advanced AI technologies, including generative AI. These enhancements aim to bolster its government solutions, improving the distribution of essential benefits and customer experiences while combating fraud.
New Business and Contract Achievements
During this quarter, Conduent achieved several contract milestones:
- Secured a contract with the Richmond Metropolitan Transportation Authority for a new Pay-by-Plate toll collection system.
- Expanded its operations with a new facility in Lipa-Malvar, Philippines, aimed at enhancing customer experience management for a major U.S. healthcare client.
Outlook for FY 2025
Looking ahead, Conduent projects its adjusted revenue for fiscal year 2025 to be in the range of $3.050 billion to $3.100 billion, representing a decrease from FY 2024’s actuals of $3.176 billion. The adjusted EBITDA margin is expected to align between 5.0% and 5.5% for the same period.
Management Commentary
Cliff Skelton, President and CEO of Conduent, expressed satisfaction with the company’s progress in achieving its financial guidance. He highlighted ongoing cash generation and robust sales pipeline opportunities, despite challenges such as government funding cycles and the federal government shutdown.
In conclusion, while Conduent has faced some financial challenges in Q3 2025, strategic initiatives in debt refinancing and AI integration, alongside contract signings, position the company favorably as it navigates the remainder of the fiscal year.
