Slide 1: Conduent Q1 2025 Financial Results
Conduent Q1 2025 Financial Results May 07, 2025
Slide 2: Cautionary Statements: Forward-Looking Statements
Cautionary Statements Forward-Looking Statements This document, any exhibits or attachments to this document, and other public statements we make may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “estimate,
Slide 3: Cautionary Statements: Non-GAAP Financial Measures
Cautionary Statements Non-GAAP Financial Measures We have reported our financial results in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). In addition, we have discussed our financial results using non-GAAP measures. We believe these non-GAAP measures allow investo
Slide 4: Q1 2025 Highlights
Q1 2025 Highlights • Adj. Revenue(1): $751M • Adj. EBITDA(1): $37M Q1 Results / • Adj. EBITDA Margin(1): 4.9% Metrics • New business signings ACV(2): $109M • Net ARR Activity Impact (TTM)(2,3): $116M • Strong start to the year • On course to achieve 2025 exit rates Highlights • Government Programs a
Slide 5: Portfolio Rationalization Update
Portfolio Rationalization Update Phase 1 Phase 2 Deployed (Target $1B) Phase 1 - Completed • Three divestitures executed in $846M 85%* $775M Approx. 2024 generating $778M of net $778M to $1B proceeds $825M • 85% of $1B capital target deployed Up to Up to $350M $450M ◦ ~61M shares repurchased ◦ $639M
Slide 6: Conduent's Transformation Journey
Conduent’s Transformation Journey • 4 divestitures totaling ~$1.2B in proceeds • Further portfolio rationalization • Optimized portfolio • Improved operations and technology • Further distribution of capital • Two operating units serving different • BoD – Management harmony markets • Further talent
Slide 7: Key Sales Metrics
Key Sales Metrics New Business ACV(1) New Business ARR(1) New Business TCV(1) $150M $75M $300M $280 $109 $53 $96 $100M $50M $200M $143 $31 $50M $25M $100M $0M $0M $0M Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Net ARR Activity (TTM)(1,2) Q1 New Business ACV(1) by Segment $200M $32M $116 $92 $45M $100M $46
Slide 8: Key Sales Metrics
Key Sales Metrics New Business ACV(1) Signings TCV Signings (incl. ARR(1) + NRR(1)) $150M $141 $137 $1,000M $111 $109 $96 $235 $100M $500M $143 $318 $273 $280 $50M $395 $242 $659 $361 $243 $0M Q1' 24 Q2' 24 Q3' 24 Q4' 24 Q1' 25 $0M Q1' 24 Q2' 24 Q3' 24 Q4' 24 Q1' 25 Renewal NB New Business (ARR(1) +
Slide 9: Q1 2025 P&L Metrics
Q1 2025 P&L Metrics Adj. Revenue(1) Adj. Revenue(1) Trend (Y/Y Compare) $1,000M (8.5)% Y/Y $821M (8.1)% in CC(2) $751M $750M (.2)% $500M (5.0)% (6.0)% (6.0)% (8.5)% $250M $0M 2024 2025 Q1' 24 Q2' 24 Q3' 24 Q4' 24 Q1' 25 Adj. EBITDA(1) / Adj. EBITDA Margin(1) • Adj. Revenue(1): Decline primarily driv
Slide 10: Q1 2025 P&L by Segment
Q1 2025 P&L by Segment Adj. Revenue(1) Adj. EBITDA(1) Contributions Transportation, $133M 27.7% Y/Y $6M (7.6)% Y/Y $38M (11.1)% Y/Y 500.0% Y/Y 2.8% Y/Y $40M $37M (30.9)% Y/Y $(47)M Government, $216M Commercial, $402M (16.3)% Y/Y (4.1)% Y/Y Commercial Government Transportation Unallocated Adjusted Co
Slide 11: Q1 2025 Cash Flow and Balance Sheet
Q1 2025 Cash Flow and Balance Sheet Balance Sheet • Adj. Free Cash Flow(1): $(74)M ($ in millions) 12/31/2024 3/31/2025 Total Cash (5) $377 $293 • Capex(2) as % of revenue: 2.7%(3) 608 605 Total Debt(6) • Net adjusted leverage ratio(4): 2.7x Term Loan A(7) due 2026 88 85 Revolving Credit Facility du
Slide 12: FY 2025 Outlook and Mid-Term Outlook
FY 2025 Outlook(2) and Mid-Term Outlook(2) FY 2024 FY 2025 2025 Exit Actuals Outlook(2) Rates Adj. Revenue(1) $3,176M $3,100M - $3,250M $3,200M - $3,300M Adj. EBITDA Margin(1) 3.9% 4.5% - 5.5% Approx. 8% Other Modeling Considerations Adj. Free Cash Flow(1) $(59)M $0M - $40M $60M - $80M Interest Expe
Slide 13: CEO Update
CEO Update
Slide 14: CEO Update
CEO Update Overall Commercial Government Transportation • Continued progress • New Capability sales up • Qualified ACV pipeline up • Continued strong sales against strategic plan laid significantly year-over- 40% year-over-year momentum out 2 years ago year, expanding • Generating strong results • A
Slide 15: Government Efficiency Support
Government Efficiency Support Conduent Fraud Reduction Tools Residency Verification for Benefit Eligibility Identification and Prevention of Eligibility Child Support Fraud for Medicaid Address Validation Employment Prevention of Skimming and Verification for Account Takeover Fraud for Unemployment
Slide 16: Appendix
Appendix
Slide 17: Segment Adjusted Revenue Trend
Segment Adjusted Revenue(1) Trend Commercial Government (3.0)% (2.1)% (5.2)% (4.4)% (4.1)% (2.3)% (9.3)% (12.1)% (16.3)% (16.3)% Q1' 24 Q2' 24 Q3' 24 Q4' 24 Q1' 25 Q1' 24 Q2' 24 Q3' 24 Q4' 24 Q1' 25 Transportation Adj. Revenue(1) Growth Rates (2025 Exit Rate): 23.1% As communicated in the March 2023
Slide 18: Definitions
Definitions New Business Total Contract Value (TCV): Estimated total future revenues from contracts signed during the period related to new logo, new service line or expansion with existing customers. New Business Non-Recurring Revenue (NRR): Metric measures the non-recurring revenue for any new bus
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures We have reported our financial results in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). In addition, we have discussed our financial results using non-GAAP measures. We believe these non-GAAP measures allow i
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Revenue, Adjusted Operating Income and Adjusted Operating Margin. We make adjustments to Revenue, Costs and Expenses and Operating Margin for the following items, as applicable,for the purpose of calculating Adjusted Revenue, Adjusted Operating Income and Adjuste
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA and EBITDA Margin We use Adjusted EBITDA and Adjusted EBITDA Margin as an additional way of assessing certain aspects of our operations that, when viewed with the U.S. GAAP results and the accompanying reconciliations to corresponding U.S. GAAP financial m
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Free Cash Flow Free Cash Flow is defined as cash flows from operating activities as reported on the consolidated statement of cash flows, less cost of additions to land, buildings and equipment, cost of additions to internal use software, and proceeds from sales of land,
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Revenue, Revenue at Constant Currency, Adjusted Net Income (Loss), Adjusted Effective Tax Rate, Adjusted Operating Income (Loss) and Adjusted EBITDA (see footnotes on last page of Non-GAAP reconciliations) (in millions) Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 202
Slide 24: Continued
CONTINUED (in millions) Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ADJUSTED EFFECTIVE TAX Income (Loss) Before Income Taxes $ (56) $ 504 $ (82) $ 159 $ 300 $ 127 Adjustment: Total Non-GAAP Adjustments 33 (609) 54 (183) (333) (147) Adjusted PBT Before Adjustment for Divestitures (23) (105) (28)
Slide 25: Continued
CONTINUED (in millions) Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ADJUSTED EBITDA Net Income (Loss) $ (51) $ 426 $ (12) $ 123 $ 216 $ 99 Income tax expense (benefit) (5) 78 (70) 36 84 28 Depreciation and amortization 48 204 47 44 51 62 Contract inducement amortization — 3 1 1 — 1 Interest expe
Slide 26: Continued
CONTINUED Adjusted Weighted Average Shares Outstanding, Adjusted Diluted EPS, Adjusted Effective Tax Rate, Adjusted Operating Margin, and Adjusted EBITDA Margin (Amounts are in whole dollars, shares are in thousands and margins are in %) Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 (4) ADJUSTED D
Slide 27: Continued
CONTINUED (Margins are in %) Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ADJUSTED OPERATING MARGIN Income (Loss) Before Income Taxes Margin (7.5)% 15.0 % (10.3)% 19.7 % 36.2 % 13.8 % Adjustments: Total non-GAAP adjustments 4.4 (18.1) 6.8 (22.7) (40.2) (15.9) Interest expense 1.6 2.2 1.6 2.0 2.3
Slide 28: Continued
CONTINUED Free Cash Flow and Adj. Free Cash Flow (in millions) Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Operating Cash Flow $ (58) $ (50) $ 41 $ (13) $ (41) $ (37) Cost of additions to land, buildings and equipment (14) (28) 11 (8) (18) (13) Cost of additions to internal use software (4) (28)
Slide 29: Continued
CONTINUED The below footnotes correspond to the "Q1 2025 Cash Flow and Balance Sheet" slide (1) Refer to Appendix for complete Non-GAAP reconciliations of Adjusted Free Cash Flow. (2) Capex refers to additions to Land, Buildings & Equipment, Internal Use Software, Product Software Additions and Soft
Slide 30: © 2025 Conduent, Inc. All rights reserved.
© 2025 Conduent, Inc. All rights reserved. Conduent and Conduent Agile Star are trademarks of Conduent, Inc. and/or its subsidiaries in the United States and/or other countries.