Slide 1: Conduent Q2 2025 Financial Results
Conduent Q2 2025 Financial Results August 06, 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: Q2 2025 Highlights
Q2 2025 Highlights • Adj. Revenue(1): $754M • Adj. EBITDA(1): $37M Q2 Results / • Adj. EBITDA Margin(1): 4.9% Metrics • New business signings ACV(2): $150M • Net ARR Activity Impact (TTM)(2,3): $63M • Adjusted Revenue in line with guidance, Adjusted EBITDA margin exceeded expectations • Portfolio ra
Slide 5: Key Sales Metrics
Key Sales Metrics New Business ACV(1) New Business ARR(1) New Business TCV(1) $200M $75M $66 $400M $61 $331 $141 $150 $273 $50M $100M $200M $25M $0M $0M $0M Q2'24 Q2'25 Q2'24 Q2'25 Q2'24 Q2'25 Net ARR Activity (TTM)(1,2) Q2 New Business ACV(1) by Segment $39M $200M $116 $58M $92 $100M $63 $46 $0M $(
Slide 6: Key Sales Metrics
Key Sales Metrics New Business ACV(1) Signings TCV Signings (incl. ARR(1) + NRR(1)) $200M $1,000M $150 $150M $141 $137 $235 $111 $109 $331 $100M $500M $318 $273 $280 $50M $242 $659 $361 $243 $469 $0M Q2' 24 Q3' 24 Q4' 24 Q1' 25 Q2' 25 $0M Q2' 24 Q3' 24 Q4' 24 Q1' 25 Q2' 25 Renewal NB New Business (A
Slide 7: Q2 2025 P&L Metrics
Q2 2025 P&L Metrics Adj. Revenue(1) Adj. Revenue(1) Trend (Y/Y Compare) $1,000M (2.6)% Y/Y (2.7)% in CC(2) $774M $754M $750M (2.6)% $500M (5.0)% (6.0)% (6.0)% (8.5)% $250M $0M Q2 2024 Q2 2025 Q2' 24 Q3' 24 Q4' 24 Q1' 25 Q2' 25 Adj. EBITDA(1) / Adj. EBITDA Margin(1) 54.2% Y/Y • Adj. Revenue(1): Decli
Slide 8: Q2 2025 P&L by Segment
Q2 2025 P&L by Segment Adj. Revenue(1) Adj. EBITDA(1) Contributions 166.7% Y/Y Transportation, $151M 22.4% Y/Y $8M 7.1% Y/Y $60M 54.2% Y/Y (25.0)% Y/Y $37M $27M Commercial, $365M $(58)M (5.9)% Y/Y 9.4% Y/Y Government, $238M (2.9)% Y/Y Commercial Government Transportation Unallocated Adjusted Costs E
Slide 9: Q2 2025 Cash Flow and Balance Sheet
Q2 2025 Cash Flow and Balance Sheet (1) Balance Sheet • Adj. Free Cash Flow : $(30)M ($ in millions) 12/31/2024 6/30/2025 (2) (3) • Capex as % of revenue: 3.1% Total Cash (5) $377 $294 Total Debt(6) 608 602 • Net adjusted leverage ratio(4): 2.7x Term Loan A(7) due 2026 88 82 (5) • $294M of cash at e
Slide 10: 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 - $3,200M $3,200M - $3,300M Adj. EBITDA Margin(1) 3.9% 5.0% - 5.5% Approx. 8% Other Modeling Considerations Adj. Free Cash Flow(1) $(59)M $0M - $40M $60M - $80M Interest Expe
Slide 11: Portfolio Rationalization Update
Portfolio Rationalization Update Phase 1 Phase 2 Deployed (Target $1B) Portfolio Rationalization • Phase 1: Three divestitures $846M 85%* executed in 2024 generating $775M Approx. $778M of net proceeds $778M to $1B $825M • Phase 2: Additional rationalization opportunities identified Up to Up to repr
Slide 12: CEO Update
CEO Update Talent Financials and Growth • Bolstered Board of Directors • ACV Sales up 38% sequentially • Strengthened corporate leadership profile: • YoY improvement in Margin finance and administration • Expanded Pipeline • Strengthened leadership talent in the • New Capability/New Logo wins signif
Slide 13: Appendix
Appendix
Slide 14: Segment Adjusted Revenue Trend
Segment Adjusted Revenue(1) Trend Commercial Government (2.1)% (2.9)% (3.0)% (4.1)% (4.4)% (9.3)% (5.9)% (12.1)% (16.3)% (16.3)% Q2' 24 Q3' 24 Q4' 24 Q1' 25 Q2' 25 Q2' 24 Q3' 24 Q4' 24 Q1' 25 Q2' 25 Transportation Adj. Revenue(1) Growth Rates (2025 Exit Rate): As communicated in the March 2023 Inves
Slide 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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) Q2 2025 Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 202
Slide 21: Non-GAAP Reconciliations (continued)
CONTINUED (in millions) Q2 2025 Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ADJUSTED EFFECTIVE TAX Income (Loss) Before Income Taxes $ (38) $ (56) $ 504 $ (82) $ 159 $ 300 $ 127 Adjustment: Total Non-GAAP Adjustments 15 33 (609) 54 (183) (333) (147) Adjusted PBT Before Adjustment for Divestiture
Slide 22: Adjusted EBITDA (continued)
CONTINUED (in millions) Q2 2025 Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ADJUSTED EBITDA Net Income (Loss) $ (40) $ (51) $ 426 $ (12) $ 123 $ 216 $ 99 Income tax expense (benefit) 2 (5) 78 (70) 36 84 28 Depreciation and amortization 48 48 204 47 44 51 62 Contract inducement amortization 1 — 3
Slide 23: Adjusted Diluted EPS (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 %) Q2 2025 Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 (4) AD
Slide 24: Adjusted Margins (continued)
CONTINUED (Margins are in %) Q2 2025 Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ADJUSTED OPERATING MARGIN Income (Loss) Before Income Taxes Margin (5.0)% (7.5)% 15.0 % (10.3)% 19.7 % 36.2 % 13.8 % Adjustments: Total non-GAAP adjustments 1.9 4.4 (18.1) 6.8 (22.7) (40.2) (15.9) Interest expense 1
Slide 25: Free Cash Flow and Adj. Free Cash Flow
CONTINUED Free Cash Flow and Adj. Free Cash Flow (in millions) Q2 2025 Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Operating Cash Flow $ (15) $ (58) $ (50) $ 41 $ (13) $ (41) $ (37) Cost of additions to land, buildings and equipment (15) (14) (28) 11 (8) (18) (13) Cost of additions to internal u
Slide 26: Footnotes: Cash Flow and Balance Sheet
CONTINUED The below footnotes correspond to the "Q2 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 27: © 2025 Conduent, Inc. All rights reserved. Conduent and Conduent Agile Star are trademarks
© 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.