Company: CNDT
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001677703-25-000076
Chunk: 3

Company: CONDUENT Inc
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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 its operating environment or costs from the event itself, the Company has incurred and accrued material non-recurring expenses in the first quarter related to the event based on potential notification requirements. The Company maintains a cyber insurance policy and has also notified federal law enforcement authorities of the incident.  

It is possible that future risks and uncertainties resulting from the 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 March 31,2025 vs. 2024(in millions)20252024$ Change% ChangeRevenue$751 $921 $(170)(18)%Operating Costs and ExpensesCost of services (excluding depreciation and amortization)618 735 (117)(16)%Selling, general and administrative (excluding depreciation and amortization)120 116 4 3 %Research and development (excluding depreciation and amortization)1 2 (1)(50)%Depreciation and amortization48 62 (14)(23)%Restructuring and related costs4 9 (5)(56)%Interest expense12 27 (15)(56)%(Gain) loss on divestitures and transaction costs, net3 (161)164 n/mLitigation settlements (recoveries), net2 4 (2)n/mLoss on extinguishment of debt— 2 (2)n/mOther (income) expenses, net(1)(2)1 (50)%Total Operating Costs and Expenses807 794 13 Income (Loss) Before Income Taxes(56)127 (183)Income tax expense (benefit)(5)28 (33)Net Income (Loss)$(51)$99 $(150)

Revenue

Revenue for the three months ended March 31, 2025 decreased compared to the prior year period, approximately 54% of which was due to the impact of the Benefit Wallet Transfer and the sales of the Curbside Management and Public Safety Solutions and Casualty Claims Solutions businesses. Excluding the divestitures impact, lost business and lower Commercial volumes contributed to the decrease and were partially offset by new business ramp, particularly in our Commercial and Transportation segments. 

Cost of Services (excluding depreciation and amortization)

Cost of services for the three months ended March 31, 2025 decreased, compared to the prior year period