Conduent Reports 18% Revenue Decline and $51 Million Net Loss in Q1 2025

Conduent Incorporated reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $751 million, down 18% from $921 million in the same period last year. The decrease was attributed primarily to the impact of divestitures, including the transfer of the BenefitWallet portfolio and the sale of the Curbside Management and Public Safety Solutions and Casualty Claims Solutions businesses. Excluding these divestitures, the company noted that lost business and lower volumes in its Commercial segment also contributed to the revenue decline.

The company's net loss for the quarter was $51 million, compared to a net income of $99 million in the first quarter of 2024. This resulted in a loss per share of $0.33, a stark contrast to earnings of $0.46 per share in the prior year. Operating costs increased to $807 million from $794 million, driven by higher selling, general, and administrative expenses, which included $25 million in direct response costs related to a cyber event that occurred in January 2025. The company also reported a decrease in interest expenses, reflecting its efforts to manage debt more effectively.

In terms of operational developments, Conduent has been focusing on strategic initiatives, including the second phase of its portfolio rationalization strategy aimed at optimizing its asset base. The company successfully transitioned New York State's tolling system to a cloud-based platform, enhancing customer experience and operational efficiency. Additionally, Conduent is leveraging artificial intelligence to combat fraud in government benefit payments, with a pilot program in collaboration with Microsoft now in production.

As of March 31, 2025, Conduent's total assets stood at $2.532 billion, a decrease from $2.599 billion at the end of 2024. The company reported cash and cash equivalents of $277 million, down from $366 million. Employee headcount remained stable at approximately 53,000. Looking ahead, Conduent aims to complete its commitment of $1 billion in deployable capital through further portfolio rationalization and is focused on achieving financial targets for 2025. The company remains cautious about potential risks stemming from the recent cyber event, which could impact its financial condition and operational results.