Conduent Earnings Call Transcripts
Fiscal Year 2026
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Revised summary: The organization is transforming by divesting non-core assets to focus on healthcare, financial, and enterprise operations, emphasizing AI and platform modernization. It targets $2.15–$2.25B revenue and 10% EBITDA margin by 2028, with $120M in cost reductions. Modular platforms and AI drive growth and efficiency in commercial and government segments.
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Q2 2026 results met expectations, with revenue down 11.9% YoY and adjusted EBITDA margin at 3%. Major divestitures sharpened focus and improved financial flexibility, while a strong $3B pipeline and AI-driven innovation support a positive long-term outlook.
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Q1 2026 saw improved margins and strong sales wins, with Government and Transportation segments growing while Commercial declined. AI initiatives and cost reductions are driving efficiency, and over $200 million in divestitures are targeted for 2026.
Fiscal Year 2025
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Q4 and full-year 2025 saw improved EBITDA margins and strong new business wins, despite revenue declines. The new CEO is driving a turnaround with accelerated portfolio rationalization, cost discipline, and a focus on free cash flow, with positive momentum in government and transportation segments.
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Q3 2025 saw adjusted revenue of $767M and EBITDA of $40M, with margin expansion and strong transportation growth offsetting declines in commercial and government segments. AI initiatives are driving efficiency and fraud reduction, while government shutdowns delay deal flow and cash collection.
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Q2 2025 saw revenue of $754M and adjusted EBITDA of $37M, with margin and new business metrics improving year-over-year. Full-year EBITDA margin guidance was raised, while revenue guidance was slightly lowered. AI initiatives, portfolio rationalization, and a strong sales pipeline support an optimistic outlook.
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Q1 2025 saw strong new business growth and margin improvement despite an 8.5% revenue decline, driven by government segment headwinds. Portfolio rationalization and cost efficiencies are progressing, with further divestitures and margin expansion expected in the second half of 2025.
Fiscal Year 2024
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2024 saw revenue and EBITDA decline year-over-year, but margins finished at the high end of guidance, supported by divestitures, debt reduction, and improved client retention. 2025 is expected to be a transition year with flat revenue, margin expansion, and growth in Commercial and Transportation segments, while Government stabilizes.
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Q3 2024 results met or slightly exceeded expectations, with $781M adjusted revenue and $32M adjusted EBITDA, reflecting the impact of recent divestitures and ongoing cost efficiency efforts. The company is on track for its 2025 margin and leverage targets, supported by strong commercial sales, improved client retention, and continued portfolio optimization.
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Q2 2024 adjusted revenue and EBITDA exceeded expectations despite year-over-year declines, with strong commercial sales and ongoing cost efficiency programs. Divestitures and share repurchases have reduced leverage, and sequential margin improvement is expected through 2025.