Conduent Reports 9% Revenue Decline and $40 Million Net Loss in Q2 2025

Conduent Incorporated reported a significant decline in its financial performance for the second quarter of 2025, with total revenue of $754 million, down 9% from $828 million in the same period last year. For the first half of 2025, revenue decreased by 14% to $1.505 billion compared to $1.749 billion in the first half of 2024. The company attributed this decline primarily to the impact of divestitures, including the transfer of its BenefitWallet portfolio and the sales of its Curbside Management and Public Safety Solutions and Casualty Claims Solutions businesses. Excluding these divestitures, lost business and lower commercial volumes also contributed to the revenue drop, although new business ramp-ups and contract amendments provided some offset.

Operating costs and expenses for the second quarter totaled $792 million, an increase from $528 million in the prior year, largely driven by a $351 million gain on divestitures recorded in the previous year. The company reported a net loss of $40 million for the quarter, compared to a net income of $216 million in Q2 2024. For the first half of 2025, the net loss was $91 million, down from a profit of $315 million in the same period last year. The loss per share for the second quarter was $(0.26), compared to earnings of $1.10 per share in the prior year.

In terms of strategic developments, Conduent has been actively pursuing a portfolio rationalization strategy, focusing on divesting capital-intensive assets. The company successfully completed the sale of its Curbside Management and Public Safety Solutions businesses and received the remaining cash proceeds from these transactions. Additionally, Conduent relaunched its Vector platform in the cloud, enhancing its offerings in the Transportation segment. The company also expanded its operations in the Philippines with a new facility in Lipa-Malver.

Operationally, Conduent's workforce stood at approximately 53,000 employees as of June 30, 2025. The company reported a total new business pipeline of $3.3 billion, reflecting a 6% increase in new business annual contract value (ACV) to $150 million compared to the same quarter last year. The company also noted a 55% increase in total signings, reaching $800 million for the quarter. However, the impact of the January 2025 cyber event, which resulted in non-recurring expenses, continues to be a concern, although it did not materially affect operations.

Looking ahead, Conduent aims to complete its commitment of $1 billion in deployable capital through further portfolio rationalization and to achieve its financial exit rate targets for 2025. The company remains focused on enhancing growth and value for stakeholders while navigating the challenges posed by market conditions and operational disruptions.