Conduent Incorporated · NASDAQ:CNDT
Conduent — Q1 2026 Earnings Presentation
27 slides from Conduent's earnings presentation, May 11, 2026
Slide 1: Conduent Q1 2026 Financial Results
Conduent Q1 2026 Financial Results May 11, 2026
Slide 2: Cautionary Statements: Forward-Looking Statements
Cautionary Statements Forward-Looking Statements This presentation, any exhibits or attachments to this presentation, 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,” “e
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 2026 Results
Q1 2026 Results • Revenue: $723M • Adj. EBITDA(1): $49M Q1 Results / • Adj. EBITDA Margin(1): 6.8% Metrics • New Business Signings ACV(2): $114M • Operating cash flow improved by $50M • Reduce cost structure: ◦ Initiated review with outside consultants, highlighting significant potential opportuniti
Slide 5: Scaling AI Across Conduent
Scaling AI Across Conduent: From Embedded Intelligence to End-to-End Transformation AI is evolving from task-level automation to enterprise-wide transformation across workflows, experiences, and productivity. Fraud Detection and Customer and Workforce and Risk Management Citizen Interaction Operatio
Slide 6: Key Sales Metrics
Key Sales Metrics New Business ACV(1) Signings New Business ARR(1) New Business TCV(1) Signings $150M $150M $450M $109 $114 $280 $100M $100M $300M $206 $53 $50M $41 $150M $50M $0M $0M $0M Q1'25 Q1'26 Q1'25 Q1'26 Q1' 25 Q1' 26 Trailing Four Quarters ACV(1) Sales Trend Q1 New Business ACV(1) by Segmen
Slide 7: Key Sales Metrics
Key Sales Metrics New Business ACV(1) Signings TCV Signings (incl. ARR(1) + NRR(1)) $1,000M $200M $145 $152 $150M $323 $109 $111 $114 $500M $269 $100M $280 $206 $246 $50M $243 $469 $213 $368 $287 $0M Q1' 25 Q2' 25 Q3' 25 Q4' 25 Q1' 26 $0M Q1' 25 Q2' 25 Q3' 25 Q4' 25 Q1' 26 Renewal NB New Business (A
Slide 8: Q1 2026 P&L Metrics
Q1 2026 P&L Metrics Revenue Adj. Revenue(1) Trend (Y/Y Compare) $1,000M (3.7)% Y/Y (5.2)% in CC(2) $751M $723M $750M (2.6)% (1.8)% (3.8)% (3.7)% $500M (8.5) $250M $0M Q1 2025 Q1 2026 Q1' 25 Q2' 25 Q3' 25 Q4' 25 Q1' 26 Adj. EBITDA(1) / Adj. EBITDA Margin(1) 32.4% Y/Y • Adj. Revenue(1): Decline primar
Slide 9: Q1 2026 P&L by Segment
Q1 2026 P&L by Segment Revenue Adj. EBITDA(1) Contributions Transportation, $136M 2.3% Y/Y 55% Y/Y (167)% Y/Y (4.3)% Y/Y $59M 7.5% Y/Y $(4)M 32% Y/Y $43M $49M Commercial, $361M $(49)M (10.2)% Y/Y Government, $226M 4.6% Y/Y Commercial Government Transportation Unallocated Adjusted Costs EBITDA • Comm
Slide 10: Q1 2026 Cash Flow and Balance Sheet
Q1 2026 Cash Flow and Balance Sheet Balance Sheet • Adj. Free Cash Flow(1): $(15)M ($ in millions) 12/31/2025 3/31/2026 Total Cash(4) $243 $251 • Capex(2) as % of revenue: 2.2% Total Debt(5) 629 664 • Net adjusted leverage ratio(3): 2.8x 22 23 Current Portion of Debt(8) • $251M of cash(4) at end of
Slide 11: FY 2026 and Mid-Term Outlook
FY 2026 and Mid-Term Outlook(1) FY 2026 Outlook(1) FY 2027 Outlook(1) Revenue $2,800M - $2,900M Flat to positive Adj. EBITDA(2) $160M - $190M $190M - $220M Other modelling considerations • $200M+ in divestiture proceeds in 2026 • $100M+ in cost efficiencies in the next 18 months • Achieving positive
Slide 12: Appendix
Appendix
Slide 13: Segment Adjusted Revenue Trend
Segment Adjusted Revenue(1) Trend Commercial Government 4.6% (4.1)% (4.7)% 1.8% (5.9)% (2.9)% (8.9)% (10.2)% (6.7)% (16.3)% Q1' 25 Q2' 25 Q3' 25 Q4' 25 Q1' 26 Q1' 25 Q2' 25 Q3' 25 Q4' 25 Q1' 26 Transportation 14.9% 7.1% 1.9% 2.3% (7.6)% Q1' 25 Q2' 25 Q3' 25 Q4' 25 Q1' 26 (1) Refer to complete Non-GA
Slide 14: Key Achievements and Industry Accolades
Key Achievements and Industry Accolades Business Execution & Contract Wins • Medicaid Enterprise Systems and Fiscal Agent Services renewal for up to 14 years, expanding a multi-decade partnership to modernize claims processing, finance, and customer operations • 5-year Centralized Collections Proces
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 Adjust
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 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 2026 FY 2025 Q4 2025 Q3 2025 Q2 2025 Q1 2025 REVENUE Revenue
Slide 21: Continued
CONTINUED (in millions) Q1 2026 FY 2025 Q4 2025 Q3 2025 Q2 2025 Q1 2025 ADJUSTED NET INCOME (Loss) – from Income (loss) before income tax Income (Loss) Before Income Taxes $ (27) $ (160) $ (28) $ (38) $ (38) $ (56) Adjustment: Total Non-GAAP Adjustments 17 81 15 18 15 33 Adjusted PBT $ (10) $ (79) $
Slide 22: Continued
CONTINUED (in millions) Q1 2026 FY 2025 Q4 2025 Q3 2025 Q2 2025 Q1 2025 ADJUSTED EBITDA Net Income (Loss) $ (33) $ (170) $ (33) $ (46) $ (40) $ (51) Income tax expense (benefit) 6 10 5 8 2 (5) Depreciation and amortization 47 194 50 48 48 48 Contract inducement amortization 1 3 1 1 1 — Interest expe
Slide 23: 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 2026 FY 2025 Q4 2025 Q3 2025 Q2 2025 Q1 2025 ADJUSTED DILUT
Slide 24: Continued
CONTINUED (Margins are in %) Q1 2026 FY 2025 Q4 2025 Q3 2025 Q2 2025 Q1 2025 ADJUSTED OPERATING MARGIN Income (Loss) Before Income Taxes Margin (3.7)% (5.3)% (3.6)% (5.0)% (5.0)% (7.5)% Adjustments: Total non-GAAP adjustments 2.3 2.7 1.9 2.4 1.9 4.4 Interest expense 1.7 1.6 1.6 1.6 1.6 1.6 Margin fo
Slide 25: Continued
CONTINUED Free Cash Flow and Adj. Free Cash Flow (in millions) Q1 2026 FY 2025 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Operating Cash Flow $ (8) $ (73) $ 39 $ (39) $ (15) $ (58) Cost of additions to land, buildings and equipment (9) (59) (15) (15) (15) (14) Cost of additions to internal use software (5) (22
Slide 26: Continued
CONTINUED The below footnotes correspond to the "Q1 2026 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
©©2026 2025Conduent, Conduent,Inc. Inc.All Allrights rightsreserved. reserved.Conduent Conduentand andConduent ConduentAgile AgileStar Starare aretrademarks trademarksofofConduent, Conduent,Inc. Inc.and/or and/orits itssubsidiaries subsidiariesininthe theUnited UnitedStates Statesand/or and/orother