Conduent's Q4 Struggles: Revenue Drops 16%, EBITDA Shrinks, 2025 Outlook Remains Cautious

Conduent Inc. CNDT shares plunged after the company reported worse-than-expected fourth-quarter 2024 results.

Quarterly revenues were down 16.1% year-over-year to $800 million, missing the consensus of $809.667 million.

Adjusted revenue declined 6% YoY to $800 million. The new business annual contract value (ACV) totaled $137 million. Total operating costs and expenses decreased 7.8% YoY to $882 million.

Adjusted EBITDA declined 52.9% year over year to $32 million, with margin contracting 400 bps YoY to 4%. Adjusted EPS loss of 15 cents was down from earnings of 3 cents a year ago, below the consensus loss estimate of 09 cents.

Operating cash flow was $41 million (-66.4% YoY) for the quarter with an adjusted free cash flow of $62 million (-33.3% YoY).

Conduent completed its $75 million share repurchase program 2024, buying back 52 million shares, including 38 million from Carl Icahn and affiliates.

The company ended the quarter with cash and equivalents worth $366 million. As of the end of December 2024, its long-term debt was $615 million.

"We remain bullish on achieving expectations in 2025. We continue to see opportunities for a further rationalized portfolio and remain focused on delivering outstanding service to our valued client base," commented Cliff Skelton, Conduent president and CEO.

2025 Outlook: Conduent expects adjusted revenue of $3.10 billion-$3.25 billion versus the consensus of $3.28 billion.

The company sees adjusted EBITDA margin of 4.5%- 5.5%.

Price Action: CNDT shares are trading lower by 5.48% at $4.15 premarket at the last check Wednesday.

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