Liquidity remains under pressure as the company reported a negative $17 million in free cash flow for 2026Q1, highlighting the difficulty of maintaining positive cash generation amidst a shrinking revenue base.
Conduent Incorporated (CNDT) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Cash from Operations | -1M | -73M | -50M | 89M | 144M | 243M | 161M | 132M | 283M | 302M | 108M | 493M | 665M |
| Operating CF Margin % | - | -2.4% | -1.49% | 2.39% | 3.73% | 5.87% | 3.87% | 2.96% | 5.25% | 5.01% | 1.69% | 7.4% | 9.58% |
| Operating CF Growth % | 28% | -46% | -156.18% | -38.19% | -40.74% | 50.93% | 21.97% | -53.36% | -6.29% | 179.63% | -78.09% | -25.86% | - |
| Net Income | -228M | -170M | 426M | -296M | -182M | -28M | -118M | -1.93B | -416M | 181M | -983M | -414M | -81M |
| Depreciation & Amortization | 188M | 198M | 204M | 264M | 230M | 352M | 459M | 459M | 460M | 497M | 613M | 600M | 787M |
| Stock-Based Compensation | 12M | 19M | 19M | 19M | 21M | 0 | 20M | 24M | 38M | 40M | 24M | 19M | 28M |
| Deferred Taxes | -15M | -22M | -5M | -54M | 9M | -21M | -21M | -220M | -75M | -230M | -4M | -115M | -123M |
| Other Non-Cash Items | 33M | 3M | -682M | 294M | 200M | 78M | 14M | 1.99B | 158M | -58M | 962M | 236M | 171M |
| Working Capital Changes | 9M | -101M | -12M | -138M | -134M | -138M | -193M | -183M | 118M | -128M | -504M | 167M | -117M |
| Change in Receivables | -43M | 2M | 34M | 26M | 54M | -45M | -14M | 107M | 133M | 31M | -27M | 239M | -44M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -261M | 58M | -121M | -300M | 142M | 0 |
| Change in Payables | 19M | 0 | 0 | -52M | -10M | 23M | 39M | -32M | -56M | -49M | -60M | 22M | 0 |
| Cash from Investing | -69M | -28M | 795M | -93M | 173M | -142M | -134M | -310M | 460M | 74M | 16M | 514M | -488M |
| Capital Expenditures | -48M | -59M | -28M | -51M | -92M | -80M | -76M | -215M | -224M | -132M | -188M | -194M | -216M |
| CapEx % of Revenue | 1.72% | 1.94% | 0.83% | 1.37% | 2.38% | 1.93% | 1.83% | 4.81% | 4.15% | 2.19% | 2.93% | 2.91% | 3.11% |
| Acquisitions | 0 | 53M | 851M | 0 | 326M | 0 | 5M | -97M | 675M | 56M | -54M | 742M | -290M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -21M | -22M | -28M | -42M | -61M | -62M | -63M | 2M | -37M | -3M | 286M | -34M | 18M |
| Cash from Financing | 14M | -39M | -877M | -81M | -131M | -132M | -74M | -85M | -637M | -109M | 132M | -1.01B | -149M |
| Debt Issued (Net) | 45M | 9M | -676M | -41M | -120M | -101M | -50M | -54M | -519M | -96M | 217M | -348M | -113M |
| Equity Issued (Net) | -18M | -29M | -182M | -27M | 0 | -10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -7M | -10M | -10M | -10M | -10M | -10M | -10M | -10M | -10M | -10M | 0 | 0 | 0 |
| Share Repurchases | -18M | -29M | -182M | -27M | 0 | -10M | 0 | -21M | -10M | 306M | 0 | 0 | 0 |
| Other Financing | -6M | -9M | -9M | -3M | -1M | -11M | -14M | -21M | -108M | -18M | -67M | -675M | -36M |
| Net Change in Cash | -54M | -134M | -142M | -79M | 178M | -38M | -47M | -260M | 98M | 268M | 250M | -19M | 20M |
| Free Cash Flow | -60M | -154M | -106M | -4M | -9M | 163M | 22M | -83M | 59M | 170M | -80M | 299M | 449M |
| FCF Margin % | -2.15% | -5.06% | -3.16% | -0.11% | -0.23% | 3.94% | 0.53% | -1.86% | 1.09% | 2.82% | -1.25% | 4.49% | 6.47% |
| FCF Growth % | 31.82% | -45.28% | -2550% | 55.56% | -105.52% | 640.91% | 126.51% | -240.68% | -65.29% | 312.5% | -126.76% | -33.41% | - |
| FCF per Share | -0.39 | -0.97 | -0.55 | -0.02 | -0.04 | 0.77 | 0.10 | -0.40 | 0.29 | 0.78 | -0.39 | 1.48 | 2.22 |
| FCF Conversion (FCF/Net Income) | 0.26x | 0.43x | -0.12x | -0.30x | -0.79x | -8.68x | -1.36x | -0.07x | -0.68x | 1.67x | -0.11x | -1.19x | -8.21x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 40M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying CNDT stock.
Conduent Incorporated (CNDT) generated $-73.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Conduent Incorporated (CNDT) reported negative free cash flow of $154.0M in 2025, indicating capital requirements exceeded cash from operations.
Conduent Incorporated (CNDT) spent $59.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Conduent Incorporated (CNDT) returned $10.0M to shareholders via cash dividends and spent $29.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Persistent negative cash generation
Metrics are mathematically derived from official filings.
Persistent Disconnect Between Earnings Reality
According to the provided quarterly cash flow data, Conduent's operating cash flow frequently fails to align with net income, as evidenced by the 2026Q1 period where the company reported a $33 million net loss alongside a negative $8 million in operating cash flow.
The recurring inability to convert earnings into positive cash flow suggests that the company's reported net income is often bolstered by non-cash items or divestiture gains that do not translate into liquidity. Investors should monitor this divergence, as it indicates that core operational activities are not generating the necessary cash to sustain the business model.
Free Cash Flow Margin Volatility
Based on financial statements, Conduent's free cash flow trajectory remains highly erratic, with FCF margins swinging from a positive 9.8% in 2023Q4 to a deeply negative 10.1% in 2025Q1, highlighting the extreme difficulty in maintaining consistent cash generation amidst a shrinking revenue base.
The lack of a stable FCF trend suggests that the company is struggling to manage its cost structure relative to its contract-based revenue. This volatility may indicate that the business is highly sensitive to the timing of large-scale government contract payments and the associated implementation costs.
Working Capital Swings Impair Liquidity
As reported in recent filings, working capital changes have been a significant drag on cash flow, with a $52 million outflow in 2025Q3 alone, suggesting that the company is facing recurring challenges in managing its collection cycles and inventory-like service delivery costs.
These sharp fluctuations in working capital imply that the company's cash position is vulnerable to the timing of client payments, which is common in government-heavy service contracts. The inability to smooth these cycles may force the company to rely on external financing to cover short-term operational gaps.
Capital Intensity Amidst Revenue Decline
Based on the provided data, Conduent maintains a relatively consistent capital expenditure profile, with CapEx/Revenue ratios hovering around 1.9% in 2026Q1, which appears disproportionately high given the company's ongoing revenue contraction and negative operating margins.
This level of capital intensity suggests that the company is forced to continue investing in legacy infrastructure to maintain its existing government and transportation contracts. Investors should consider whether these expenditures are truly growth-oriented or merely maintenance costs required to prevent further service degradation.
Capital Allocation Under Financial Stress
As indicated by the cash flow statements, Conduent has continued to engage in share repurchases and dividend payments despite persistent negative free cash flow, such as the $151 million spent on buybacks in 2024Q2, which warrants further investigation into the sustainability of this capital return strategy.
The decision to return capital to shareholders while the core business is burning cash may suggest a management focus on supporting the stock price rather than reinvesting in operational turnaround. This strategy appears increasingly difficult to justify if the company cannot demonstrate a path to consistent, positive free cash flow.