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Investing.com -- Xerox Holdings Corporation (NASDAQ:XRX) reported first-quarter 2025 results that fell short of analyst expectations, with revenue declining and adjusted earnings swinging to a loss. The company’s shares slipped 1% following the announcement.
The document technology and services company posted revenue of $1.46 billion for the quarter, down 3.0% YoY and below the analyst consensus of $1.54 billion. In constant currency terms, revenue declined 1.1%. Xerox reported an adjusted loss of $0.06 per share, missing the analyst estimate of $0.10 earnings per share.
Xerox’s GAAP net loss narrowed to $90 million, or $0.75 per share, an improvement of $23 million or $0.19 per share compared to the same quarter last year. However, the adjusted net loss widened to $4 million from a profit in the year-ago period.
CEO Steve Bandrowczak commented on the results, stating, "In a quarter marked by increasing levels of macroeconomic and trade policy uncertainty, our team remained focused on what we can control: the balanced execution of our Reinvention and delivering client success."
The company’s adjusted operating margin contracted by 70 basis points YoY to 1.5%. Operating cash flow deteriorated to -$89 million, $10 million lower than the previous year, while free cash flow declined by $20 million to -$109 million.
Looking ahead, Xerox provided guidance for 2025, projecting low single-digit revenue growth in constant currency and an adjusted operating margin of at least 5.0%. The company expects free cash flow between $350 million and $400 million for the year.
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