Conduent Reverses EBITDA Decline, Reaffirms 2026 Outlook

The Tip Desk · November 5, 2026 · 3 min read

Adjusted EBITDA from continuing operations rose to $36 million in the third quarter as the company closed the Transit sale and reaffirmed full-year Adjusted EBITDA of $140 million to $170 million.

Conduent Incorporated (CNDT), a global technology-enabled operating partner, reported third-quarter 2026 revenue of $534 million from continuing operations, down 11.7% from a year earlier, after an 11.9% year-over-year decline in the second quarter.

Adjusted EBITDA from continuing operations was $36 million, up 16.1% from $31 million a year earlier, reversing a 30.4% year-over-year decline in the second quarter. Adjusted EBITDA margin expanded to 6.7%, from 5.1% a year earlier and 3.0% in the second quarter. The company said the margin increase reflected lower expenses and cost optimization initiatives.

GAAP income before income taxes from continuing operations was a $35 million loss, compared with a $38 million loss a year earlier. The company attributed the improvement primarily to cost efficiencies that more than offset lower revenue and higher restructuring and interest costs. GAAP diluted earnings from continuing operations were a loss of $0.27 a share, unchanged from a year earlier. Adjusted diluted earnings from continuing operations were a loss of $0.11 a share.

Cash flow from operating activities was a $107 million outflow, compared with a $39 million outflow a year earlier. The company said the year-over-year deterioration primarily reflected working-capital impacts from a temporary pause of its receivables factoring facility. Adjusted free cash flow was a $117 million outflow.

The company completed the sale of its Public Transit business to Modaxo for $164 million and said it expects to complete the sale of the Tolling business by year-end. Those transactions collectively represent an exit from the Transportation business, which Conduent now reports as discontinued operations.

Conduent also completed financing of $447 million in revolving credit commitments maturing in May 2029, including refinancing existing $357 million revolving credit facilities and adding $90 million of new commitments. Cash and cash equivalents were $292 million at September 30, 2026.

The company said it had identified $106 million of a $120 million cost-savings target, contributing to the EBITDA margin improvement. Chief Executive Officer Harsha V. Agadi said the company continued to make progress in improving operating performance and was reaffirming its full-year 2026 outlook.

New business signings annual contract value from continuing operations was $61 million, down from $99 million in the second quarter. Agadi said year-to-date new-business ACV wins were $249 million and total contract value wins were $473 million.

Among contract wins in the quarter, Conduent said it added an AI-enabled audit services engagement with a leading global automotive manufacturer, added Gravie as a client in Payment Integrity, and announced a contract spanning up to 14 years with the Commonwealth of Virginia to continue operating and modernizing its Medicaid systems.

The company reaffirmed its full-year 2026 outlook of revenue of $2.15 billion to $2.25 billion and Adjusted EBITDA from continuing operations of $140 million to $170 million.

Restructuring and related costs were $22 million in the third quarter, compared with $12 million a year earlier. Interest expense was $15 million.

Agadi said the company’s ASCEND 2026–2028 plan is focused on standardizing operations and infrastructure, specializing in core solutions where it can lead and win, and scaling go-to-market capabilities around priority industries and opportunities.