Q4 2025 Conduent Inc Earnings Call Transcript
Key Points
- Conduent Inc (CNDT) reported a significant increase in new business ACV, with $152 million signed in Q4 2025, marking an 11% increase compared to Q4 2024.
- The Government segment showed strong performance with a 50% increase in new business ACV for the full year 2025 compared to 2024.
- The Transportation segment also demonstrated growth, with a 14% increase in new business ACV and a 3.9% increase in adjusted revenue for the year.
- Adjusted EBITDA for 2025 was $164 million, up from $124 million in 2024, with an improved adjusted EBITDA margin of 5.4%, indicating better operational efficiency.
- Conduent Inc (CNDT) has a strong qualified ACV pipeline of $3.2 billion, up 4% year-over-year, driven by the Government segment's robust pipeline growth.
- Adjusted revenue for the full year 2025 was $3.04 billion, down 4.2% from $3.18 billion in 2024, indicating a decline in overall revenue.
- The Commercial segment experienced a 5.9% decline in adjusted revenue for 2025, primarily due to volume declines in its largest clients.
- Adjusted free cash flow for 2025 was negative $130 million, highlighting cash flow challenges despite positive cash flow in Q4.
- The Commercial segment's adjusted EBITDA margin decreased by 30 basis points year-over-year, reflecting insufficient cost efficiency improvements to offset revenue declines.
- Conduent Inc (CNDT) faces potential disruption from AI and technology advancements, with an estimated 15-20% of its business exposed to such risks.
Greetings, and welcome to the Conduent Q4 2025 earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joshua Overholt, Vice President of Investor Relations. Thank you. You may begin.
Thank you, operator, and thank you, everyone, for joining us today to discuss Conduent's Fourth Quarter 2025 Earnings. I am joined today by Harsha Agadi, our CEO; and Giles Goodburn, our CFO.
We hope you've had a chance to review our press release issued earlier this morning. This call is being webcast, and a copy of the slides used during this call as well as the press release were filed with the SEC this morning on Form 8-K. This information as well as the detailed financial metrics package are available on the Investor Relations section of the Conduent website.
During this call, we may make forward-looking statements. These forward-looking statements reflect management's current beliefs,
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