Company: CNDT
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001677703-25-000152
Chunk: 117

Company: CONDUENT Inc
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 117
---
 federal law enforcement authorities of the incident. 

CNDT Q3 2025 Form 10-Q24

While the Company did not experience material impacts to its operating environment or costs from the event itself, the Company incurred and accrued $25 million of non-recurring expenses in the first quarter of 2025 related to the event based on the notification requirements described above. We have made cash disbursements of $9 million through September 30, 2025 and expect to make an additional $16 million of cash disbursements by the end of the first quarter of 2026 related to these notification requirements. Any notification expense in excess of these amounts up to the coverage limit are anticipated to be covered by the cyber insurance policy that the Company maintains.

It is possible that future risks and uncertainties resulting from the January 2025 Cyber Event, including those related to impacted data, litigation, reputational harm, and regulatory actions, could adversely affect the Company’s financial condition or results of operations. See also Part II, Item 1A (Risk Factors).

Financial Information and Analysis of Results of Operations

Three Months Ended September 30,2025 vs. 2024(in millions)20252024$ Change% ChangeRevenue$767 $807 $(40)(5)%Operating Costs and ExpensesCost of services (excluding depreciation and amortization)631 656 (25)(4)%Selling, general and administrative (excluding depreciation and amortization)96 115 (19)(17)%Research and development (excluding depreciation and amortization)1 1 — — %Depreciation and amortization48 44 4 9 %Restructuring and related costs12 4 8 200 %Interest expense12 16 (4)(25)%(Gain) loss on divestitures and transaction costs, net1 (188)189 n/mLitigation settlements (recoveries), net— 1 (1)n/mLoss on extinguishment of debt1 1 — — %Other (income) expenses, net3 (2)5 n/mTotal Operating Costs and Expenses805 648 157 Income (Loss) Before Income Taxes(38)159 (197)Income tax expense (benefit)8 36 (28)Net Income (Loss)$(46)$123 $(169)

CNDT Q3 2025 Form 10-Q25

Nine Months Ended September 30,2025 vs.