- Xerox (XRX, Financial) reported a Q1 2025 revenue of $1.46 billion, a 3% decrease from the previous year.
- The company's GAAP net loss was $90 million, an improvement of $23 million compared to Q1 2024.
- Restructuring and reinvention efforts are driving cost savings and are set to position Xerox for future growth.
Xerox Holdings Corporation (XRX) has announced its financial results for the first quarter of 2025. The company reported a revenue of $1.46 billion, a decrease of 3.0% from the same period last year. On a constant currency basis, the revenue declined by 1.1%.
The company's GAAP net loss stood at $90 million, or $0.75 per share, showing an improvement from the previous year's loss of $113 million, or $0.94 per share. Despite the challenges, Xerox's CEO highlighted the company's focus on reinvention, which is delivering improved operating predictability and positioning the company well for long-term growth.
Xerox's adjusted net loss was reported at $4 million, or $0.06 per share. The adjusted operating margin was recorded at 1.5%, 70 basis points lower than the previous year. The operating cash flow for the quarter was a negative $89 million, down by $10 million year-over-year, while free cash flow was negative $109 million, down by $20 million.
In terms of segment performance, the 'Print and Other' segment reported revenues of $1.29 billion, a 9.4% decline year-over-year, while the 'IT Solutions' segment experienced significant growth with a revenue increase of 121.6% totaling $164 million. This growth in IT Solutions is primarily attributed to the successful integration of ITsavvy.
The company's guidance for 2025 remains optimistic with expectations of low single-digit revenue growth in constant currency and an adjusted operating margin of at least 5.0%. The free cash flow is projected to be between $350 million to $400 million for the year.
