Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 67

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 67
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(1) Refer to "Non-GAAP Financial Measures" section for an explanation of the non-GAAP financial measure. 

(2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue.

(in millions)Year Ended December 31,Adjusted EBITDA and Segment Profit (Loss) Reconciliation to Income (Loss) Before Income Taxes202420232022Adjusted EBITDA$172 $378 $396 Reconciling items:Segment depreciation and amortization(202)(260)(220)Other adjustments(1)(4)(6)— Segment Pre-Tax Income (Loss)$(34)$112 $176 Reconciling items:Amortization of acquired intangible assets(5)(7)(13)Restructuring and related costs(46)(62)(39)Interest expense(75)(111)(84)Loss on extinguishment of debt(8)— — Goodwill impairment(28)(287)(358)(Gain) loss on divestitures and transaction costs, net696 (10)158 Litigation settlements (recoveries), net(9)30 32 Other (income) expenses, net13 3 1 Income (Loss) Before Income Taxes$504 $(332)$(127)

(1) The 2024 amount represents a termination for convenience fee related to the termination of Convergint as a subcontractor for our State of Victoria contract. The 2023 amount represents a termination for convenience fee related to the termination of a contract with a significant IT outsourcing provider. Both the 2024 and 2023 items are reported in Cost of Services on the Consolidated Statements of Income.

CNDT 2024 Annual Report37

Commercial Segment

Revenue 

Commercial segment revenue for 2024 decreased, compared to the prior year, driven by lost business and lower volumes in certain industries within our client base, partially offset by new business ramp.

Commercial segment revenue for 2023 decreased, compared to the prior year, driven by lost business, lower volumes in certain industries within our client base and non-repeating items in the prior year, partially offset by new business ramp.

Segment Profit and Adjusted EBITDA 

Commercial segment profit and Adjusted EBITDA for 2024 increased compared to the prior year primarily due to new business ramp and cost efficiencies, partially offset the impact of lost business and lower volumes. Commercial segment profit also benefited from the absence of the