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CNDT Stock Analysis - CONDUENT Inc AI Rating

CNDT Nasdaq Services-Business Services, NEC NY CIK: 0001677703
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG SELL
92% Confidence

📊 CNDT Key Takeaways

Revenue: $3.0B
Net Margin: -5.6%
Free Cash Flow: $-132.0M
Current Ratio: 1.57x
Debt/Equity: 1.01x
EPS: $-1.14
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

Conduent is in severe financial distress with negative profitability across all metrics, negative free cash flow of -$132M, and deteriorating operational performance. The company is burning cash operationally while maintaining high debt levels relative to equity, creating unsustainable financial strain with no clear path to profitability.

CNDT Strengths

  • + Adequate liquidity with current ratio of 1.57x and $233M cash reserves providing near-term operational runway
  • + Stable revenue base at $3.0B with no year-over-year decline despite operational challenges
  • + Positive gross margin of 25.1% demonstrates underlying business unit profitability potential before overhead

CNDT Risks

  • ! Negative operating cash flow of -$73M indicates core business cannot fund operations, forcing reliance on balance sheet depletion
  • ! Net margin of -5.6% and operating margin of -5.3% show systematic unprofitability with negative ROE of -24.8% destroying shareholder value
  • ! Debt-to-equity ratio of 1.01x combined with negative interest coverage of -3.3x creates solvency risk; company cannot service debt from operations
  • ! Free cash flow of -$132M severely negative while still investing $59M in capex suggests operational model is fundamentally broken
  • ! Negative ROA of -7.1% indicates deteriorating asset utilization and potential asset impairment risk

Key Metrics to Watch

CNDT Financial Metrics

Revenue
$3.0B
Net Income
$-170.0M
EPS (Diluted)
$-1.14
Free Cash Flow
$-132.0M
Total Assets
$2.4B
Cash Position
$233.0M

💡 AI Analyst Insight

CONDUENT Inc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

CNDT Profitability Ratios

Gross Margin 25.1%
Operating Margin -5.3%
Net Margin -5.6%
ROE -24.8%
ROA -7.1%
FCF Margin -4.3%

CNDT vs Default Sector

How CONDUENT Inc compares to Default sector averages

Net Margin
CNDT -5.6%
vs
Sector Avg 12.0%
CNDT Sector
ROE
CNDT -24.8%
vs
Sector Avg 15.0%
CNDT Sector
Current Ratio
CNDT 1.6x
vs
Sector Avg 1.8x
CNDT Sector
Debt/Equity
CNDT 1.0x
vs
Sector Avg 0.7x
CNDT Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CNDT Balance Sheet & Liquidity

Current Ratio
1.57x
Quick Ratio
1.51x
Debt/Equity
1.01x
Debt/Assets
65.5%
Interest Coverage
-3.33x
Long-term Debt
$691.0M

CNDT 5-Year Financial Trend

CNDT 5-year financial data: Year 2021: Revenue $4.5B, Net Income -$1.9B, EPS $-9.29. Year 2022: Revenue $4.2B, Net Income -$118.0M, EPS $-0.61. Year 2023: Revenue $4.1B, Net Income -$28.0M, EPS $-0.18. Year 2024: Revenue $3.9B, Net Income -$182.0M, EPS $-0.89. Year 2025: Revenue $3.7B, Net Income N/A, EPS $-1.41.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: CONDUENT Inc's revenue has declined by 17% over the 5-year period, indicating business contraction. The most recent EPS of $-1.41 indicates the company is currently unprofitable.

CNDT Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-4.3%
Free cash flow / Revenue

CNDT Quarterly Performance

Quarterly financial performance data for CONDUENT Inc including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $767.0M -$46.0M $-0.30
Q2 2025 $754.0M -$40.0M $-0.26
Q1 2025 $751.0M -$51.0M $-0.33
Q3 2024 $807.0M $123.0M $0.72
Q2 2024 $828.0M -$7.0M $-0.04
Q1 2024 $921.0M -$6.0M $-0.04
Q3 2023 $932.0M $15.0M $0.06
Q2 2023 $915.0M N/A $-0.01

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CNDT Capital Allocation

Operating Cash Flow
-$73.0M
Cash generated from operations
Stock Buybacks
$25.0M
Shares repurchased (TTM)
Capital Expenditures
$59.0M
Investment in assets
Dividends Paid
$5.0M
Returned to shareholders

CNDT SEC Filings

Access official SEC EDGAR filings for CONDUENT Inc (CIK: 0001677703)

📋 Recent SEC Filings

Date Form Document Action
Mar 6, 2026 4 xslF345X05/wk-form4_1772834029.xml View →
Mar 6, 2026 8-K cndt-20260302.htm View →
Feb 23, 2026 4 xslF345X05/wk-form4_1771885308.xml View →
Feb 20, 2026 4 xslF345X05/wk-form4_1771605382.xml View →
Feb 20, 2026 4 xslF345X05/wk-form4_1771605189.xml View →

Frequently Asked Questions about CNDT

What is the AI rating for CNDT?

CONDUENT Inc (CNDT) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CNDT's key strengths?

Adequate liquidity with current ratio of 1.57x and $233M cash reserves providing near-term operational runway. Stable revenue base at $3.0B with no year-over-year decline despite operational challenges.

What are the risks of investing in CNDT?

Negative operating cash flow of -$73M indicates core business cannot fund operations, forcing reliance on balance sheet depletion. Net margin of -5.6% and operating margin of -5.3% show systematic unprofitability with negative ROE of -24.8% destroying shareholder value.

What is CNDT's revenue and growth?

CONDUENT Inc reported revenue of $3.0B.

Does CNDT pay dividends?

CONDUENT Inc pays dividends, with $5.0M distributed to shareholders in the trailing twelve months.

Where can I find CNDT SEC filings?

Official SEC filings for CONDUENT Inc (CIK: 0001677703) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CNDT's EPS?

CONDUENT Inc has a diluted EPS of $-1.14.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI