Company: UIS
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000746838-25-000030
Chunk: 20

Company: UNISYS CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 20
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 on ECS revenue in the current period compared with the prior-year period. Gross profit percent was 49.3% in the current period compared with 55.5% in the prior-year period. The decrease in revenue and gross profit was primarily driven by the timing of software license renewals.

Total Contract Value and Backlog

Total Contract Value (TCV) represents the initial estimated revenue related to contracts signed in the period without regard for early termination or revenue recognition rules. Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represents TCV attributable to expansion and new scope for existing clients and new logo contracts. L&S TCV is driven by software license renewals, and as such, changes in timing or terms of renewals can lead to fluctuations from period to period. Measuring TCV involves the use of estimates and judgments and the extent and timing of conversion of TCV to revenue may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of contract signing, and contract modifications, including, without limitation, contract nullification and termination, over the lifetime of a contract.

Backlog represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or performed. The timing of conversion of backlog to revenue may be impacted by, among other factors, the timing of execution, the extension, nullification or early termination of existing contracts with or without penalty, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. 

The following table summarizes the company’s TCV metrics.

Three Months Ended September 30,Nine Months EndedSeptember 30,(In millions, except numbers presented as percentages)20252024% Change20252024% ChangeEx-L&S New Business (i)$124 $174 (29)%$583 $573 2 %Ex-L&S Renewals230 96 140 %572 321 78 %L&S Renewals61 92 (34)%131 300 (56)%Total TCV$415 $362 15 %$1,286 $1,194 8 %

(i) New Business relates to expansion and new scope for existing clients and new logo contracts.

For the three months and nine ended September 30, 2025, total TCV was $415