Xerox Holdings Corporation · NASDAQ:XRX
Xerox — Q3 2025 Earnings Presentation
35 slides from Xerox's earnings presentation, Oct 30, 2025
Slide 1: Earnings Presentation Q3 2025 Results
Earnings Presentation Q3 2025 Results October 30, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and other written or oral statements made from time to time by management contain “forward looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve certain risks and uncertainties. The words “anticipate”, “believe
Slide 3: Q3 2025 Key Financial Measures
Q3 2025 Key Financial Measures Revenue ($B) Adj1 Operating Margin Free Cash Flow1 ($M) $131 $1.96 $107 $1.53 5.2% 3.3% 2024 2025 2024 2025 Operating 2025 % Change: 28.3% @ AC, 27.0% @ CC1; Pro Forma1 (PF) % change: (7.8)% @ AC 2024 2025 Cash Flow $116 $159 Revenue Trend ($M) Adj1 Earnings Per Share
Slide 4: Strategic Priorities for 2025
Strategic Priorities for 2025 • Commercial Optimization. Strengthen the core business through continued route-to- market and offering optimization, expanded Partner relationships and greater penetration Execute of IT Solutions & Digital Services across Xerox’s Print client base Reinvention • Operati
Slide 5: Reinvention: Path to Revenue Stabilization and Improved Profits
Reinvention: Path to Revenue Stabilization and Improved Profits Reinvention Through Integration: Estimated Savings / Synergies Revenue Mix Shift Key Near-term Workstreams Operational Simplification LTM1 Mix • Leverage Xerox’s Reinvention program to integrate Lexmark, Targeted Mix combining best-in-c
Slide 6: Lexmark Synergies and Implementation Timeline
Lexmark Synergies and Implementation Timeline Expected Gross Cost Synergies Expected Phasing of Synergy Realization Cumulative In-Year Cost to Run-Rate Gross Key Milestones $ in millions Achieve Cost Synergies • Initial elimination of duplicative overhead 2025 >$125 ~$70 • Rationalization of third p
Slide 7: Frequently Asked Questions
Frequently Asked Questions When do you expect demand conditions to normalize? Throughout the quarter, we observed continued delays in purchasing decisions among clients, particularly those reliant on federal, state and local government funding. General economic uncertainty also caused delays in purc
Slide 8: Financial Results Summary
Financial Results Summary (in millions, except per share data) Q3 B/(W) % Chg PF3 % B/(W) PF3 B/(W) P&L Measures 2025 YOY YOY Chg YOY P&L Ratios Q3 2025 YOY YOY Print & Other 1,739 297 Gross Margin – Adj3 28.9% (350) bps (380) bps IT Solutions 226 140 Intersegment elimination1 (4) (4) Revenue $1,961
Slide 9: Print & Other Segment Results
Print & Other Segment Results PF1 % Chg Total Installs vs Equipment Revenue YOY3 % Chg YOY YOY 40% Q3 B/(W) (in millions) AC CC1 AC 20% 2025 YOY 0% Equipment 383 44 13.0% 12.1% (16.4)% (20%) Post Sale 1,356 253 22.9% 21.5% (7.7)% (40%) 3Q24 4Q24 1Q25 2Q25 3Q25 Total Revenue $1,739 $297 20.6% 19.0% (
Slide 10: IT Solutions Segment Results
IT Solutions Segment Results PF1 % Chg % Chg YOY IT Solutions: Key Performance Indicators / Trends YOY Q3 B/(W) (in millions) AC CC1 AC • Pro forma Gross Billings grew 27% YOY: 2025 YOY Products 165 110 200.0% 197.6% 10.7% • Double-digit pro forma growth in Infrastructure & Services 57 26 83.9% 85.0
Slide 11: Cash Flow
Cash Flow (in millions) Q3 2025 Q3 2024 Pre-tax Loss ($300) (1,087) 1 Non-Cash Add-Backs 313 150 Non-Cash Goodwill Impairment, Net of Tax - 1,015 Restructuring Payments (8) (11) Pension Contributions (56) (56) Working Capital, net 2 19 7 Change in Finance Assets3 90 69 Other4 101 29 Net cash provide
Slide 12: Capital Structure
Capital Structure Debt and Cash Q3 Principal Debt Maturity Ladder 1 ($M) $1,096 (in billions) Q3 2025 Q2 2025 $965 $969 Total Debt1 $(4.4) $(3.9) $190 $565 $400 Less: Financing Allocated Debt $1.6 $1.6 Core Debt $(2.8) $(2.3) $500 Less: Cash2 $0.5 $1.0 $775 $350 $237 $250 Net Core Debt $(2.3) $(1.3)
Slide 13: Guidance (Includes Lexmark)
Guidance (Includes Lexmark) 2025 Guidance 2026: Latest Expectations • Legacy Xerox Print to perform in line with the broader Print Previous Current market Revenue Revenue growth 16-17% growth in CC1 13% growth in CC1 • Legacy Lexmark revenue flat to down low single digits YoY Lexmark contribution ~$
Slide 14: Appendix
Appendix 14
Slide 15: Operating Trends
Operating Trends 2023 2024 2025 (in millions, except EPS) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Total Revenue $6,886 $1,502 $1,578 $1,528 $1,613 $6,221 $1,457 $1,576 $1,961 % Change (3.1)% (12.4)% (10.0)% (7.5)% (8.6)% (9.7)% (3.0)% (0.1)% 28.3% CC 1 % Change (3.3)% (13.2)% (9.6)% (7.3)% (8.0)% (9.5)% (1.1)% (
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures We have reported our financial results in accordance with generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below. We believe these non- GAAP measures allow investors to better under
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures • consulting and other similar type professional services as well as potential legal settlements that may arise in connection with those M&A transactions. These costs are considered incremental to our normal operating charges and were incurred or are expected to be incurr
Slide 18: Adjusted Net Income (Loss) and EPS Reconciliation
Adjusted Net Income (Loss) and EPS Reconciliation FY-23 Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Q1-25 Q2-25 Q3-25 Net Net Net Net Net (Loss) Net (Loss) (Loss) (Loss) Net Net Net (in millions, except per share amounts) Incom e EPS Incom e EPS Incom e EPS Incom e EPS Incom e EPS Incom e EPS (Loss) EPS (Loss) EP
Slide 19: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation Q3-25 Q3-24 Pre-Tax Pre-Tax Income Tax Effective Tax (Loss) Income Tax Effective Tax (in millions) Loss Expense Rate Income Expense Rate (1) Reported $ (300) $ 460 (153.3%) $ (1,087) $ 118 (10.9%) Goodwill impairment - - 1,058 43 Income tax on PARC donation
Slide 20: Adjusted Gross Profit and Margin Reconciliation
Adjusted Gross Profit and Margin Reconciliation (in millions) Q3-25 Q3-24 (1) Revenue $ 1,961 $ 1,528 Cost of revenue (1) 1,516 1,033 Gross Profit and Margin 445 22.7% 495 32.4% Adjustment: Inventory-related impact - exit of certain Production Print manufacturing operations 3 - Lexmark - inventory-r
Slide 21: Adjusted Gross Profit and Margin Reconciliation – Print and Other
Adjusted Gross Profit and Margin Reconciliation – Print and Other (in millions) Q3-25 Q3-24 Revenue (1) $ 1,739 $ 1,442 Cost of revenue (1) 1,338 962 Gross Profit and Margin 401 23.1% 480 33.3% Adjustment: Inventory-related impact - exit of certain Production Print manufacturing operations 3 - Lexma
Slide 22: Adjusted Operating Income and Margin Reconciliation
Adjusted Operating Income and Margin Reconciliation FY-23 Q1-24 Q2-24 Q3-24 Q4-24 FY-24 (Loss) (Loss) (Loss) (Loss) (in millions) Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Reported (1) $ 1 $ 6,886 $ (113) $ 1,5
Slide 23: Adjusted Operating Income and Margin Reconciliation – continued
Adjusted Operating Income and Margin Reconciliation – continued Q1-25 Q2-25 Q3-25 (Loss) (Loss) (Loss) (in millions) Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Reported (1) $ (90) $ 1,457 $ (106) $ 1,576 $ (760) $ 1,961 Income tax (benefit) expense 23 46 460 Pre-tax (loss) inc
Slide 24: Adjusted EBITDA and Margin Reconciliation
Adjusted EBITDA and Margin Reconciliation FY-23 Q1-24 Q2-24 Q3-24 Q4-24 FY-24 (Loss) (Loss) (Loss) (in millions) Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin (1) Reported $ 1 $ 6,886 $ (113) $ 1,502 $ 18 $ 1,578 $
Slide 25: Adjusted EBITDA and Margin Reconciliation - continued
Adjusted EBITDA and Margin Reconciliation - continued Q1-25 Q2-25 Q3-25 (Loss) (Loss) (Loss) (in millions) Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin (1) Reported $ (90) $ 1,457 $ (106) $ 1,576 $ (760) $ 1,961 Adjustm ents: (2) Other expenses, net 68 80 105 Income tax (benefit
Slide 26: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (in millions) FY-23 Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Q1-25 Q2-25 Q3-25 (1) Reported $686 ($79) $123 $116 $351 $511 ($89) ($11) $159 Less: capital expenditures 37 10 8 9 17 44 20 19 28 Free Cash Flow $649 ($89) $115 $107 $334 $467 ($109) ($30) $131 ___________________ (1) N
Slide 27: Other Expenses, net Reconciliation
Other Expenses, net Reconciliation (in millions) Q3-25 Q3-24 (1) $ 105 $ 43 Reported Less: Non-service retirement-related costs 20 25 Less: Transaction related costs, net - (15) Adjusted $ 85 $ 33 __________ (1) Other expenses, net 27
Slide 28: Adjusted Operating Income and Margin – Guidance
Adjusted Operating Income and Margin – Guidance FY 2025 (in millions) Profit Revenue (CC) (2, 3) Margin (1) Estimated ~$(490) ~$7,040 ~(7.0)% Adjustments: Restructuring and related costs, net 80 Amortization of intangible assets 80 Lexmark acquisition-related costs 118 Other expenses, net (4) 457 Ad
Slide 29: Free Cash Flow – Guidance
Free Cash Flow – Guidance (in millions) FY 2025 (1) Operating Cash Flow ~$245 Less: capital expenditures 95 Free Cash Flow ~$150 (1)Net cash provided by operating activities. 29
Slide 30: Pro Forma Financial Measures
Pro Forma Financial Measures To better understand the trends in our business, we discuss our 2025 operating results by comparing them against 2024 pro forma results, which include estimated results for both Lexmark and ITsavvy for the comparable period presented. ITsavvy is included in our 2025 repo
Slide 31: Pro Forma Revenue – Print and Other; IT Solutions
Pro Forma Revenue – Print and Other As reported Pro Forma(1) Pro Forma (1) % (in millions) Q3-25 Q3-24 Q3-24 % Change Change Equipment sales $ 383 $ 339 $ 458 13.0% (16.4)% (2) Post sale revenue 1,356 1,103 1,469 22.9% (7.7)% Total Print and Other Revenue $ 1,739 $ 1,442 $ 1,927 20.6% (9.8)% (1) Ref
Slide 32: Pro Forma Segment Revenue and Gross Profit
Pro Forma Segment Revenue and Gross Profit As reported Pro Form a(3) Pro Form a(3) (in m illions) Q3-25 Q3-24 Q3-24 Change B/(W) Change B/W Revenue Print & Other $ 1,739 $ 1,442 $ 1,927 20.6% (9.8)% IT Solutions 226 86 201 162.8% 12.4% Intersegment elimination(1) (4) - - NM NM Total Revenues $ 1,961
Slide 33: Pro Forma Adjusted Operating Expenses
Pro Forma Adjusted Operating Expenses As reported Pro Forma (3) (in millions) Q3-25 Q3-24 B/(W) YOY (1) Operating expenses $ 551 $ 546 (0.9%) (2) (7) Less: One-time items 50 Adjusted operating expenses $ 501 $ 553 9.4% (1) Reflects Selling, administrative & general expenses (SAG) and Research, devel
Slide 34: Pro Forma Adjusted Operating Income and Margin Reconciliation
Pro Forma Adjusted Operating Income and Margin Reconciliation As Reported Pro Form a(6) Pro Form a(6) Q3-25 Q3-24 Q3-24 Change Change (Loss) (Loss) (Loss) (in millions) Profit Profit Profit Reported (1) $ (760) $ (1,205) $ (1,255) $ 445 $ 495 Income tax (benefit) expense 460 118 134 342 326 Pre-tax
Slide 35: © 2025 Xerox Corporation. All rights reserved. Xerox® is a trademark of Xerox Corporation
© 2025 Xerox Corporation. All rights reserved. Xerox® is a trademark of Xerox Corporation in the United States and/or other countries.