Xerox Holdings Corporation · NASDAQ:XRX
Xerox — Q4 2025 Earnings Presentation
37 slides from Xerox's earnings presentation, Jan 29, 2026
Slide 1: Earnings Presentation Q4 2025 Results
Earnings Presentation Q4 2025 Results January 29, 2026
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: Full-Year 2025 Key Financial Measures
Full-Year 2025 Key Financial Measures Revenue ($B) Adj1 Operating Margin Free Cash Flow1 ($M) $467 $7.02 $6.22 4.9% 3.5% $133 2024 2025 2024 2025 Operating 2025 % Change: 12.9% @ AC, 12.2% @ CC1; Pro Forma1 (PF) % change: (7.6)% @ AC 2024 2025 Cash Flow $511 $224 Revenue Trend ($M) Adj1 Earnings Per
Slide 4: Strategic Priorities for 2026
Strategic Priorities for 2026 • 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: Financial Results Summary
Financial Results Summary (in millions, except per share data) Q4 B/(W) % Chg PF3 % Q4 B/(W) PF3 B/(W) P&L Measures 2025 YOY YOY Chg YOY P&L Ratios 2025 YOY YOY Print & Other 1,873 373 Gross Margin – Adj3 29.3% (230) bps (380) bps IT Solutions 158 44 Intersegment elimination1 (3) (2) Revenue $2,028
Slide 7: Print & Other Segment Results
Print & Other Segment Results % Change YOY % Change YOY Total Installs vs Equipment Revenue YOY2 Q4 PF1 FY PF1 30% ($ mns) AC CC1 AC CC1 2025 (AC) 2025 (AC) 10% Equipment $485 23.4% 21.1% (10.4)% $1,488 8.0% 7.1% (8.7)% (10%) Post Sale $1,388 25.4% 23.2% (8.5)% $4,784 6.6% 6.0% (8.0)% (30%) 4Q24 1Q2
Slide 8: IT Solutions Segment Results
IT Solutions Segment Results % Change YOY % Change YOY IT Solutions: Key Performance Indicators / Trends Q4 FY ($ mns) AC CC1 AC CC1 2025 2025 • Pro forma Gross Billings3 grew 12% YOY in 2025: Products $100 35.1% 35.9% $523 125.4% 125.9% • Double-digit pro forma growth in Infrastructure & Services $
Slide 9: Cash Flow
Cash Flow (in millions) Q4 2025 Change YOY FY 2025 Change YOY Pre-tax Loss ($61) ($57) ($488) $728 1 Non-Cash Add-Backs 157 24 656 14 Non-Cash Goodwill Impairment, Net of Tax - - - (1,015) Restructuring Payments (28) (8) (69) 9 Pension Contributions (38) (7) (161) (16) Working Capital, net 2 115 (47
Slide 10: Capital Structure
Capital Structure Debt and Cash Q4 Principal Debt Maturity Ladder ($M) $1,096 $969 (in billions) Q4 2025 Q3 2025 $865 Total Debt $(4.2) $(4.4) $90 $565 $400 Less: Financing Allocated Debt $1.5 $1.6 $500 Core Debt $(2.7) $(2.8) $350 Less: Cash1 $0.6 $0.5 $235 $775 $250 $531 $569 Net Core Debt $(2.1)
Slide 11: Lexmark Synergies and Implementation Timeline
Lexmark Synergies and Implementation Timeline Expected Phasing of Synergy Realization Cumulative YOY Benefit from In-Year One-time Run-Rate Gross Key Milestones $ in millions Cost Synergies Cash Cost to Achieve Cost Synergies • Initial elimination of duplicative overhead 2025A $146 $35 $69 • Rationa
Slide 12: 2026 Full-Year Guidance
2026 Full-Year Guidance • Revenue: Above $7.5 billion in constant currency1 • Adjusted1 Operating Income: $450-500 million • Free Cash Flow1: ~$250 million Revenue: Expected revenue growth includes a full year of Lexmark, growth in IT Solutions and Digital Services, offset by headwinds in Print, ong
Slide 13: Frequently Asked Questions
Frequently Asked Questions Have demand trends improved since Q3? What are your expectations for 2026? Demand in October and November was impacted by the government shutdown as certain customers reliant on federal, state and local government funding Demand delayed purchasing decisions. Encouragingly,
Slide 14: Appendix
Appendix 14
Slide 15: Operating Trends
Operating Trends 2024 2025 (in millions, except EPS) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Total Revenue $1,502 $1,578 $1,528 $1,613 $6,221 $1,457 $1,576 $1,961 $2,028 $7,022 % Change (12.4)% (10.0)% (7.5)% (8.6)% (9.7)% (3.0)% (0.1)% 28.3% 25.7% 12.9% CC 1 % Change (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 Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Net Net Net Net (Loss) Net (Loss) (Loss) (Loss) (in millions, except per share amounts) Incom e EPS Incom e EPS Incom e EPS Incom e EPS Incom e EPS Reported (1) $ (113) $ (0.94) $ 18 $ 0.11 $ (1,205) $ (9.71) $ (21) $ (0
Slide 19: Adjusted Net Income (Loss) and EPS Reconciliation - continued
Adjusted Net Income (Loss) and EPS Reconciliation - continued Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Ne t Ne t Ne t (Los s ) Ne t Ne t (in millions, except per share amounts) (Los s ) EPS (Los s ) EPS Incom e EPS (Los s ) EPS (Los s ) EPS Re porte d (1) $ (90) $ (0.75) $ (106) $ (0.87) $ (760) $ (6.01) $ (73
Slide 20: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation Q4-25 Q4-24 FY-25 FY-24 Pre-Tax Income Pre-Tax Income Pre-Tax Income Pre-Tax Income (Loss) Tax Effective (Loss) Tax Effective (Loss) Tax Effective (Loss) Tax Effective (in millions) Income Expense Tax Rate Income Expense Tax Rate Income Expense Tax Rate Inc
Slide 21: Adjusted Gross Profit and Margin Reconciliation
Adjusted Gross Profit and Margin Reconciliation (in millions) Q4-25 Q4-24 FY-25 FY-24 (1) Revenue $ 2,028 $ 1,613 $ 7,022 $ 6,221 (1) Cost of revenue 1,449 1,111 5,121 4,261 Gross Profit and Margin 579 28.6% 502 31.1% 1,901 27.1% 1,960 31.5% Adjustment: Inventory-related impact - exit of certain Pro
Slide 22: Adjusted Gross Profit and Margin Reconciliation – Print and Other
Adjusted Gross Profit and Margin Reconciliation – Print and Other (in millions) Q4-25 Q4-24 FY-25 FY-24 (1) Revenue $ 1,873 $ 1,500 $ 6,272 $ 5,864 (1) Cost of revenue 1,331 1,017 4,511 3,960 Gross Profit and Margin 542 28.9% 483 32.2% 1,761 28.1% 1,904 32.5% Adjustment: Inventory-related impact - e
Slide 23: Adjusted Operating Income and Margin Reconciliation
Adjusted Operating Income and Margin Reconciliation 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 Reported (1) $ (113) $ 1,502 $ 18 $ 1,578 $ (1,205) $ 1,528 $ (21)
Slide 24: Adjusted Operating Income and Margin Reconciliation – continued
Adjusted Operating Income and Margin Reconciliation – continued Q1-25 Q2-25 Q3-25 Q4-25 FY-25 (Loss) (Loss) (Loss) (Loss) (Loss) (in millions) Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Reported (1) $ (90) $ 1,457 $ (106) $ 1,576 $ (
Slide 25: Adjusted EBITDA and Margin Reconciliation
Adjusted EBITDA and Margin Reconciliation 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 (1) Reported $ (113) $ 1,502 $ 18 $ 1,578 $ (1,205) $ 1,528 $ (21) $ 1,613 $ (1,321
Slide 26: Adjusted EBITDA and Margin Reconciliation - continued
Adjusted EBITDA and Margin Reconciliation - continued Q1-25 Q2-25 Q3-25 Q4-25 FY-25 (Loss) (Loss) (Loss) (Loss) (Loss) (in millions) Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin Profit Revenue Margin (1) Reported $ (90) $ 1,457 $ (106) $ 1,576 $ (760) $ 1,9
Slide 27: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (in millions) Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 (1) Reported ($79) $123 $116 $351 $511 ($89) ($11) $159 $208 $224 Less: capital expenditures 10 8 9 17 44 20 19 28 24 91 Free Cash Flow ($89) $115 $107 $334 $467 ($109) ($30) $131 $184 $133 ______
Slide 28: Other Expenses, net Reconciliation
Other Expenses, net Reconciliation (in millions) Q4-25 Q4-24 FY-25 FY-24 (1) $ 107 $ 38 $ 360 $ 158 Reported Less: Non-service retirement-related costs 21 6 78 80 Less: Transaction related costs, net - - - (38) Less: Loss (Gain) on early extinguishment of debt 1 1 5 (2) Less: Commitment fee expense
Slide 29: Adjusted Operating Income – Guidance
Adjusted Operating Income – Guidance (in millions) FY 2026 (1) Estimated ~$(100) Adjustments: Restructuring and related costs, net 30 Amortization of intangible assets 120 (2) Other expenses, net 425 Adjusted ~$450-500 __________ (1) Pre-tax (loss) (2) Other expenses, net includes approximately $290
Slide 30: Free Cash Flow – Guidance
Free Cash Flow – Guidance (in millions) FY 2026 (1) Operating Cash Flow ~$360 Less: capital expenditures 110 Free Cash Flow ~$250 (1)Net cash provided by operating activities. 30
Slide 31: 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 32: Pro Forma Revenue – Print and Other
Pro Forma Revenue – Print and Other As reported Pro Forma(1) (1) Pro Forma % (in millions) Q4-25 Q4-24 Q4-24 % Change Change Equipment sales $ 485 $ 393 $ 541 23.4% (10.4)% Post sale revenue 1,388 1,107 1,517 25.4% (8.5)% Total Print and Other Revenue $ 1,873 $ 1,500 $ 2,058 24.9% (9.0)% (1) As repo
Slide 33: Pro Forma Revenue – IT Solutions
Pro Forma Revenue – IT Solutions As reported Pro Forma(1) Pro Forma (1) % (in millions) Q4-25 Q4-24 Q4-24 % Change Change (2) IT Products $ 100 $ 74 $ 117 35.1% (14.5)% (3) IT Services 55 39 54 41.0% 1.9% (4) Intersegment revenue 3 1 1 NM NM Total IT Solutions $ 158 $ 114 $ 172 38.6% (8.1)% As repor
Slide 34: Pro Forma Segment Revenue and Profit
Pro Forma Segment Revenue and Profit As reported Pro Form a(2) Pro Forma (2) % (in m illions) Q4-25 Q4-24 Q4-24 % Change Change Revenue Print & Other $ 1,873 $ 1,500 $ 2,058 24.9% (9.0)% IT Solutions 158 114 172 38.6% (8.1)% Intersegment elimination(1) (3) (1) (1) NM NM Total Revenues $ 2,028 $ 1,61
Slide 35: Pro Forma Segment Revenue and Profit - continued
Pro Forma Segment Revenue and Profit - continued As reported Pro Form a(2) Pro Forma (2) % (in m illions) FY-25 FY-24 FY-25 FY-24 % Change Change Revenue Print & Other $ 6,272 $ 5,864 $ 7,212 $ 7,854 7.0% (8.2)% IT Solutions 761 358 761 767 112.6% (0.8)% Intersegment elimination(1) (11) (1) (11) (1)
Slide 36: 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) Q4-25 Q4-24 Q4-24 Change Change (Loss) (Loss) (Loss) (in millions) Profit Profit Profit Reported (1) $ (73) $ (21) $ (218) $ (52) $ 145 Income tax (benef it) expense 12 17 58 (5) (46) Pre-tax (loss)
Slide 37: © 2026 Xerox Corporation. All rights reserved. Xerox® is a trademark of Xerox Corporation
© 2026 Xerox Corporation. All rights reserved. Xerox® is a trademark of Xerox Corporation in the United States and/or other countries.