CNDT Overview

Partnership Announcement: Solutions by Text (SBT) has partnered with Conduent to integrate SBT's mobile messaging platform into Conduent's Loan Manager, aiming to enhance borrower engagement and improve on-time payments.

Enhanced Communication: The integration will utilize SBT's SMS, MMS, and RCS messaging capabilities to streamline loan servicing workflows, reduce resolution times for servicing issues, and elevate the overall borrower experience.

Focus on Digital Solutions: This collaboration addresses the increasing demand for mobile-first communication in the financial sector, leveraging Conduent's expertise in digital loan management and SBT's consumer-centric messaging technology.

Operational Efficiency: The partnership is expected to automate routine communications, lower collection costs, and create a more productive workflow, ultimately delivering a digital-first experience for clients in the consumer finance industry.

Earnings Report Overview: Conduent Inc's third-quarter 2025 earnings revealed a revenue of $767 million, down 5% year-over-year and below analyst expectations, with a GAAP diluted EPS loss of 30 cents compared to a profit of 72 cents the previous year.

Operational Improvements: Despite revenue challenges, adjusted EBITDA rose to $40 million, indicating operational improvements, while new business signings reached $111 million, reflecting growth in recurring revenue.

Financial Position: The company reported negative operating cash flow of $39 million and total debt of $713 million, but maintained $264 million in cash and unused credit capacity, demonstrating liquidity.

Revised Outlook: Conduent lowered its full-year 2025 adjusted revenue guidance to $3.05 billion–$3.10 billion, while CEO Cliff Skelton expressed confidence in the company's strategic direction and capital allocation progress.

Earnings Report Overview: Conduent's Q3 2025 earnings report revealed an adjusted EPS of -8 cents, missing Wall Street's estimate of -7 cents, despite a year-over-year growth of 35.7%. Revenue also fell short at $767 million compared to the expected $794.33 million.

Stock Performance: Following the earnings report, Conduent's stock plummeted 18.02% on Friday, marking a 55.32% decline year-to-date and a 45.85% drop over the past 12 months, with trading volume significantly below average.

Future Guidance: The company updated its full-year 2025 revenue guidance to between $3.05 billion and $3.1 billion, which is below the Wall Street estimate of $3.13 billion, while expecting an adjusted EBITDA margin of 5% to 5.5%.

Analyst Ratings: Conduent holds a Moderate Buy consensus rating from analysts, with a single Buy rating in the past three months and an average price target of $7, indicating a potential upside of 293.26% for the stock.