What Is Conduent Company

Employee trend

Sources: Forms 10-K FY2021 through FY2025 ("People and Culture — Headcount"); Q2 2026 earnings release (approximately 46,000 associates globally, of which approximately 3,500 sit within the Transportation business now classified as discontinued).

150-word positioning statement

Conduent is a mid-scale, US-centric business process services provider carved out of Xerox in 2017, which today occupies an uncomfortable middle position in a global outsourcing industry it estimates at $219 billion. Its franchise rests on genuinely defensible public-sector infrastructure — Medicaid claims administration in 34 states and the District of Columbia, roughly $80 billion of government benefit disbursements a year, electronic benefit transfer programmes in 35 states — paired with a commercial book of customer-experience management, document processing and HR administration that is structurally exposed to offshore wage arbitrage and, increasingly, to generative AI substitution. Six consecutive years of revenue contraction, a January 2025 cyber breach that has become one of the largest healthcare data incidents on record, negative free cash flow and a market capitalisation that has fallen below a quarter of a billion dollars have left the company mid-transformation under a chief executive appointed in January 2026 with an explicit fix-sell-grow mandate.

The company's own description

The FY2025 Form 10-K opens with management's characterisation: Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum, creating valuable outcomes for clients and the millions of people who count on them. The company states it leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions, and that through its global associate base, process expertise and advanced technologies its solutions digitally transform clients' operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs.

Management further describes Conduent as a diverse global company with a portfolio spanning both commercial and public sectors, whose solutions are used by some of the largest corporations, governments and public sector agencies across multiple industries and geographies to deliver end-user excellence at scale and business process efficiencies with proprietary technology.

Independent characterisation

Conduent is best understood not as a technology company but as a contract operator of transaction-intensive administrative infrastructure, in which the technology layer is a cost-to-serve and a bid differentiator rather than a licensed product with independent economics. Three observations follow from the filings.

First, the revenue model is overwhelmingly services-based and unit-priced, not subscription or licence-based. The 10-K describes revenue mechanics offering by offering, and the recurring pattern is per-transaction or per-head pricing: customer experience management earns on a per-call, per-agent or percentage-of-sales-made basis; business process as a service earns per employee covered, on contingency fees against recoveries, per agent or per hour; integrated digital solutions earns per image scanned, per document mailed or per member covered; government healthcare is primarily fixed fee or variable per call, per interaction or per member; closed-loop government payments earn on the number of cases or cardholders; open-loop payments earn interchange fees and a percentage of card spending; transit historically earned through end-project implementation of hardware and software, maintenance, spares and the building and operating of fare collection systems. There is no meaningful disclosed software licensing line. Reported research and development expense was $4M in FY2025 and $6M in FY2024 — less than 0.2% of revenue — which tells you the technology is largely capitalised internal-use software and third-party licensed stack rather than a product P&L.

Second, the value-chain position is downstream and substitutable at the commodity end, but genuinely entrenched at the regulated end. A customer-care contract for a telecom client can be re-bid or re-shored with modest switching cost; a state Medicaid Management Information System replacement is a multi-year, multi-hundred-million-dollar programme with certification requirements, and the incumbent enjoys extraordinary renewal advantage. The Virginia Medicaid renewal announced 6 August 2026, covering approximately 1.6 million members, and the New Mexico platform modernisation that replaced a 24-year-old legacy system serving approximately 900,000 Medicaid members, are illustrations of the sticky end of the book. The commercial book is where the erosion is happening.

Third, the customer concentration risk is asymmetric and currently biting. Management attributed the 13% Q2 2026 decline in Commercial revenue to contract losses and volume reductions concentrated in customer experience management, "including Conduent's largest commercial client." The FY2025 earnings call disclosed that volume declines among the largest commercial clients drove the segment's 30 basis point margin contraction, while the remaining top-ten clients grew in aggregate.

Customer types and end-markets

• US state and local government agencies — Medicaid agencies, human services and benefits agencies, child support disbursement units, unemployment insurance programmes, WIC programmes. Conduent states it serves 46 states.
• Foreign governments — disease surveillance and outbreak case management deployments internationally.
• US federal-adjacent programmes — SNAP, TANF and WIC benefit rails.
• Large commercial enterprises — the 10-K states Conduent serves nearly half of the Fortune 100, including 9 of the top 10 US health insurers, 7 of the top 10 pharmaceutical companies, 4 of the top 5 automakers, and 7 of the top 10 US banks.
• Transportation authorities (now in run-off pending divestiture) — tolling authorities and transit agencies in the US and UK.

Operating scale metrics (FY2025 Form 10-K)

Note a disclosure discrepancy worth flagging: the FY2023 release stated 1.3 billion customer service interactions annually and approximately 12 million daily tolling transactions; a mid-2024 release stated 2.3 billion interactions, approximately $100 billion of government payments and nearly 13 million tolling transactions; FY2025 disclosure states approximately 2.0 billion interactions and approximately $80 billion of government payments. The government-payments figure has therefore been revised downward by approximately $20 billion between 2024 and 2025 disclosure without accompanying explanation in the filings reviewed.

10.1 Stated strategy — verbatim themes from the FY2025 Form 10-K

Management frames the aim as being "the technology-led business solutions partner of choice for businesses and governments globally," delivering outcomes across three dimensions: Growth, Efficiency and Quality, with a disciplined capital allocation strategy.

Growth rests on two named execution strategies: Sales Performance Optimization (optimising sales training, talent, go-to-market processes and account management to gain new clients and greater share of wallet) and Offering Development (augmenting the portfolio with cloud, data analytics, automation tooling, GenAI/AI, digital payments and machine learning). Success is measured through revenue retention, the net Annual Recurring Revenue activity metric, and new business signings.

Efficiency rests on AI and Automation (embedding GenAI/AI and intelligent process automation into automated document management, fraud detection and prevention, claims adjudication and customer experience) and Delivery Optimization (common processes under a shared services model, flexible and hybrid staffing, geographic footprint optimisation). Success is measured through associate retention and adjusted EBITDA margin.

Quality rests on proactive real-time monitoring of applications using AI and machine learning, data centre optimisation into two primary facilities, and improving end-user experience through self-service tools, AI-powered capabilities, mobile apps and analytics. Success is measured through service level agreement performance, system availability, technology incident rates and client satisfaction.

Investment strategy categorises internal investment into three buckets: opportunities to optimize (where scale exists and process improvement, automation and investment can improve experience, reduce delivery cost and expand margin), opportunities to enhance (strong client relationships and market history where legacy technology needs refresh), and opportunities to expand (where returns are more significant and new capabilities and geographic expansion address market dynamics).

10.2 The Agadi transformation agenda — five CEO priorities (12 February 2026)

1. Increase speed and accountability — accelerate decision making and operational excellence across a client-centric global enterprise.
2. Enforce financial discipline — drive all decisions through the lens of impact on revenue growth, margin expansion and free cash flow.
3. Reduce cost structure — a leaner organisation with clear line of sight for business leaders; reduce layers and empower leaders with full P&L ownership.
4. Optimize the portfolio — execute a fix, sell, or grow strategy to improve performance, reduce debt and invest in growth.
5. Convert pipeline to growth — improve pipeline execution to deliver consistent revenue growth.

10.3 Announced initiatives, last 24 months

10.4 Medium-term financial targets and guidance

5.1 Commercial segment

Customer Experience Management (CXM)

• Description: full-range customer contact services including customer care, technical support, loyalty management, and outbound and inbound sales, operated under client brands. Delivery across chat, email, voice and virtual agents.
• Capabilities: omni-channel communications, automation and analytics, onshore/nearshore/offshore labour arbitrage, complex-interaction handling.
• Target customer: financial services, healthcare and life sciences, logistics, technology, telecom, travel and hospitality.
• Pricing model: per call, per agent, or as a percentage of sales made.
• Flagship: Next Generation CX Platform, introduced 24 June 2026, adding real-time translation, AI-assisted agent training and voice enhancement to expand global customer reach and accelerate agent ramp.
• Recognition: Personalized Agentic AI Navigator won the UnitedHealthcare and Optum 2026 Global Innovation Challenge (announced 30 July 2026).

Business Process as a Service (BPaaS)

• Description: digital transformation of essential business functions, driving efficiency, automation and scale.
• Sub-portfolios: payment integrity; finance, accounting and procurement; human capital; legal and compliance; bank and lending.
• Pricing model: per employee covered; contingency fees on recoveries; per agent; per hour.
• Flagship named tools: FastCap, a GenAI-powered finance and procurement capability that Conduent disclosed on 7 May 2026 had identified over $18 million in finance and procurement savings.
• Human capital flagship: benefits administration and health & welfare marketplace administration, named a NelsonHall Benefits Administration NEAT Leader for the ninth consecutive year in the 2026 evaluation, and a 2025 NEAT Leader with a marketplace focus.
• Retirement administration: expanded in Q2 2026 through a pension risk transfer administration engagement with Securian.

Integrated Digital Solutions (IDS)

• Description: digitisation across the customer and document lifecycle using automation, data analytics and AI-powered solutions, shortening decision cycles on claims and applications.
• Coverage: document and claims processing; health plan administration; scanning and digitisation of mailrooms, data and documents; omnichannel digital and physical communications including print and mail; healthcare-specific and banking-specific solutions.
• Scale: more than 14 billion documents captured, indexed and classified annually.
• Pricing model: per image scanned, per document mailed, per member covered.
• Client win: Trillium Health Resources selected the Health Services Plus platform for claims processing, provider data management and member services (Q2 2026).

5.2 Government segment

Government Healthcare Solutions

• Description: programme administration for government healthcare programmes.
• Component offerings: Medicaid management; provider services; Medicaid business intelligence; pharmacy benefits management; eligibility and enrollment support; customer contact services; application processing; premium billing; case management.
• Flagship platform: Conduent Medicaid Suite (CMdS) — a cloud-native, modular software-as-a-service solution enabling state Medicaid agencies to migrate from a legacy Medicaid Management Information System (MMIS) to a digital, interoperable and scalable Medicaid Enterprise System.
• Adjacent flagship: disease surveillance and outbreak case management, used by US and international governments for public health metrics, vitals, birth defects tracking, contact tracing and outbreak dynamics.
• Scale: over 454 million claims processed in 2025; 111 million recipients across 34 states plus DC.
• Pricing model: primarily fixed fee, or variable per call, per interaction, per member.
• 2026 development: investment in next-generation Medicaid technology to modernise provider enrollment and management, with a first US state client implementation planned.
• Recognition: Leader, Everest Group 2026 Healthcare Payer Intelligent Operations PEAK Matrix; Leader, NelsonHall 2026 NEAT for Healthcare Payer Agility & Innovation; NelsonHall 2025 NEAT Leader for Healthcare Payer Agility & Innovation (Overall).

Government Service Solutions

• Description: leader in government payment disbursement for federally sponsored programmes; approximately $80 billion disbursed annually.
• Closed-loop benefit card programmes: support SNAP, TANF and WIC. Restricted to approved retailers and approved product categories. Revenue based on number of cases or number of cardholders.
• Open-loop payment card programmes: support child support and Unemployment Insurance; usable anywhere the card network is accepted. Revenue based on interchange fees and card spending as a percentage of transactions.
• Footprint: electronic payments for government services in 35 states, comprising 21 EBT programmes, 13 EBT-for-WIC programmes and 4 electronic childcare programmes.
• Child support services: processing and distributing payments to State Disbursement Units, child support payment cards, childcare credentialing, case management. Revenue varies by state — per financial transaction, per call, fixed price, or systems development.
• 2026 development: EBT EMV chip-enabled card rollout, beginning with Alabama, with four states expected live by year-end 2026 to strengthen payment security and reduce card-skimming fraud.
• Efficiency lever: AI-enabled fraud prevention activities in the Government Services business were explicitly cited in the FY2025 10-K as reducing expenses and driving the 270 basis point Government margin expansion.

5.3 Transportation segment (held for sale / discontinued)

Road Usage Charging and Management Solutions — being sold to Quarterhill Inc.

• Electronic tolling, urban congestion management, mileage-based user charging.
• Components: vehicle passenger detection systems, all-electronic toll collection, automated licence plate recognition, roadside and back-office processing, image review, violation enforcement, analytics.
• Scale: more than 14 million tolling transactions per day across the US and UK.
• Pricing model: blended fixed fee plus transaction-based — per account per month, per notice mailed, per active account, per violation fee received, or per image-based transaction.

Transit Solutions — being sold to Modaxo.

• Fare collection, account-based ticketing and intelligent mobility for train, bus, subway, metro and other transit modes, delivered as a single point of management.
• Revenue model: implementation of end projects (hardware and software, maintenance services, repair and sale of spare parts) plus building and operating fare collection systems.

Commercial Vehicles — computer-aided dispatch and automatic vehicle location technology for fleet operations management. Included in the Modaxo Fleet Management Solutions perimeter.

5.4 Cross-cutting capability assets

• AI Experience Center, launched 2025 at the Florham Park headquarters, to immerse clients in AI innovations and demonstrate production solutions.
• Dedicated GenAI programme with over 20 prioritised use cases spanning quality, efficiency and cycle time, continued through 2025.
• GenAI innovation initiative with Microsoft, disclosed as ongoing in the FY2025 10-K.
• Two consolidated primary data centres following systematic infrastructure consolidation.

6.1 Income statement

Zeros in the table above denote figures not extracted or not applicable in this research pass rather than a true zero value, with the exception of dividends per common share, which is a genuine zero — Conduent has never declared a dividend on its common stock. Specifically not verified in this pass: FY2021–FY2023 GAAP EBITDA, FY2021 adjusted EBITDA, FY2021–FY2023 adjusted net income and adjusted diluted EPS, FY2021–FY2023 tax expense, and FY2021–FY2023 weighted average share counts. FY2021 pre-tax loss of $(25)M is derived from a reported pre-tax margin of –0.60% applied to revenue of $4,140M and should be confirmed against the FY2021 Form 10-K. FY2022 adjusted EBITDA of $393M is derived from the company-disclosed 10.2% adjusted EBITDA margin applied to adjusted revenue of $3,851M. FY2023 adjusted EBITDA of $378M is as explicitly disclosed by the company.

One source discrepancy to note: Simply Wall St reports an FY2023 net loss of $306M, while S&P Global Market Intelligence data reports $296M. The EPS of $(1.41) is consistent with the lower figure against the implied share count. The $296M figure is used here.

6.2 Margin analysis

6.3 Balance sheet

Zeros denote figures not extracted in this pass. Total debt and cash for FY2021–FY2023 are from S&P Global Market Intelligence; balance sheet detail for those years should be sourced from the respective Form 10-K. Q2 2026 total current assets and liabilities include $386M of assets and $206M of liabilities of discontinued operations held for sale. Goodwill at 31 December 2025 of $617M relates exclusively to the Government segment and represented 25.7% of total consolidated assets — a material impairment exposure given a market capitalisation of roughly $242M.

6.4 Cash flow

6.5 Ratios and returns

Management's stated adjusted net leverage of 2.1x at 30 June 2026 excludes discontinued-operations EBITDA but includes expected divestiture cash proceeds that have not yet been received. This is a materially more flattering construction than the 8.9x debt/EBITDA computed on trailing reported figures, and analysts should treat the 2.1x figure as a pro-forma target rather than a current-state metric.

6.6 Revenue CAGR

6.7 Commentary on trends, inflections and drivers

Revenue. Conduent has contracted every year of the observation window. The compound decline of 7.4% is only partly attributable to deliberate portfolio pruning: stripping out divested businesses, adjusted revenue still fell from $3,851M in FY2022 to $3,042M in FY2025, a 7.2% compound decline. The FY2022 decline was driven by the roll-off of non-recurring pandemic-era stimulus payment volumes in Government Services, recessionary volume reductions in Commercial, and unfavourable euro and sterling translation. FY2024's 9.8% decline reflected the BenefitWallet, Curbside and Casualty Claims exits plus a Government contract termination, lower SNAP volumes and pricing adjustments that cut Government revenue roughly 10% and its adjusted EBITDA margin by approximately eight percentage points. FY2025's decline was Commercial-led. The Q2 2026 continuing-operations decline of 11.9% is an acceleration, not a stabilisation, and revenue missed consensus by approximately 23%.

Gross margin. The 605 basis point compression from 24.2% in FY2021 to 18.2% in FY2025 is the single clearest signal of pricing power erosion. Cost of services fell only 8.8% in FY2025 against a 9.4% revenue decline — the cost base is not deflating as fast as the revenue base, which is the definition of negative operating leverage in a labour-intensive services model.

The FY2024 anomaly. FY2024's $587M operating income, $504M pre-tax income, $426M net income and $2.23 diluted EPS are not operating results. They are the accounting consequence of a $696M net gain on divestitures. Adjusted for that, FY2024 adjusted operating income was $(65)M and adjusted net loss was $(118)M. Any screen or model that treats FY2024 as a profitable year is wrong.

Adjusted EBITDA inflection. The trough was FY2024 at $124M and a 3.9% margin. FY2025 recovered to $164M and 5.4%, with Q4 2025 at 6.5% and Q1 2026 at 6.8% — a genuine sequential improvement driven by cost efficiencies and AI-enabled fraud prevention in Government. Q2 2026 broke that trend, falling to $16M and a 3.0% margin on the continuing-operations base, which management attributed to lower Government profitability, stranded costs from divestitures and consulting costs for the efficiency programme. The margin recovery story is now unproven.

Cash generation. This is the gravest issue. Operating cash flow has gone from +$243M in FY2021 to –$73M in FY2025, and free cash flow from +$163M to –$154M. FY2025 alone consumed $103M through changes in operating assets and liabilities, reflecting deferred collections on large public-sector projects pushed into 2026. H1 2026 operating cash flow of $(1)M against H1 2025's $(73)M is an $72M improvement, and Q2 2026 turned positive at $7M — but this was driven by working capital realisation on long-term Government and former Transportation projects, which is a one-time unwind, not a recurring earnings improvement.

Capital structure. The deleveraging achieved in FY2024 — $676M of debt repaid, total debt cut from $1,439M to $777M using $851M of divestiture proceeds — was real and material. It has since partially reversed: total debt has crept back to $801M at 30 June 2026 while cash has fallen to $228M, taking net debt from $411M to $573M in eighteen months. The company is funding operating losses and restructuring from the balance sheet. The $234M of gross proceeds from the Transit and Tolling sales, most of which management intends to apply to debt reduction, is therefore not incremental firepower but a necessary repair.

Shareholder returns. No common dividend has ever been paid. Preferred dividends run at approximately $10M annually. Buybacks were aggressive in FY2024 at $182M (including the ~38 million share block from Carl Icahn and affiliates), fell to $25M in FY2025, and stopped in H1 2026. The current $50M three-year authorisation dated May 2025 is largely undrawn. Shares outstanding have nonetheless fallen 4.62% year on year, producing a buyback yield of 4.62% on the depressed market capitalisation.

22.1 Management guidance

H1 2026 continuing-operations revenue was $1,118M and adjusted EBITDA was $66M at a 5.9% margin. To reach the guidance midpoint of $2,200M revenue and $155M adjusted EBITDA, H2 2026 must deliver $1,082M of revenue — achievable, roughly flat sequentially — and $89M of adjusted EBITDA at an 8.2% margin, against 3.0% delivered in Q2 2026. That is the crux of the FY2026 investment case, and it is a demanding ask.

22.2 Consensus expectations

Formal sell-side consensus is effectively absent: a single covering analyst with a $5.00 target. Prior third-party forecasts had FY2025 revenue at $3.19B (achieved $3.04B) and FY2025 loss per share at $0.49 (actual $1.14). Forecast reliability on this name has been poor, and the collapse of coverage means investors are largely without independent modelling.

22.3 Bull case — three arguments grounded in the data

1. The cost programme arithmetic is genuinely powerful against a $242M market capitalisation. Segment adjusted EBITDA of approximately $393M in FY2025 converted to only $164M consolidated, implying roughly $229M of unallocated corporate cost. A $100M annualized reduction against that base is not a heroic assumption; it is a 44% reduction in a cost block that has never been subjected to a genuine zero-based review. If delivered on top of FY2026 guided adjusted EBITDA of $155M, run-rate EBITDA could approach $200M+ against an enterprise value of $815M — roughly 4x. The equity is a levered option on that arithmetic.

2. The Government franchise is a genuine asset the market is not paying for. Government generated approximately $221M of adjusted EBITDA at an approximately 24% margin in FY2025 on $922M of revenue. Standalone, at even 6x EBITDA — a steep discount to where Maximus trades — that business alone is worth more than Conduent's entire enterprise value. New business ACV in Government grew 50% in FY2025, the Government pipeline grew 29%, and the Virginia and New Mexico wins demonstrate live conversion.

3. Portfolio simplification has been executed ahead of commitment, with proceeds contractually secured. Management committed to at least $200M of portfolio actions in Q1 2026 and delivered $234M plus a 7% Quarterhill stake by 30 June. Applied to debt reduction, this cuts total debt from $801M toward roughly $600M, materially improving the leverage optics that triggered both rating downgrades. The resulting business is simpler, less capital-intensive and less working-capital-hungry — the CFO explicitly cited reduced working capital intensity and capex requirements as deal benefits.

22.4 Bear case — three arguments grounded in the data

1. Revenue decline is accelerating, not decelerating, and the growth segment has been sold. Continuing-operations revenue fell 11.9% in Q2 2026 versus a 9.4% full-year FY2025 decline and a 3.7% Q1 2026 decline. Revenue missed consensus by approximately 23%. Transportation, the only segment that grew in FY2024 and FY2025, is gone. What remains is Commercial (–5.9% in FY2025, –13% in Q2 2026) and Government (–6.3% in FY2025). You cannot cost-cut your way to value creation in a business declining at a double-digit rate, because every dollar of cost removed is chasing more than a dollar of revenue lost.

2. The cyber liability is unquantified and potentially existential relative to the equity value. Affected individuals escalated from 10.5 million to 25.5 million to a reported 62.2 million. Thirty-five-plus class actions are consolidated in D.N.J. with no settlement. HHS OCR and multi-state attorney general investigations are anticipated. Recognised costs to date are $25M. Settlements for healthcare breaches of comparable scale have historically reached the hundreds of millions. Against $228M of cash, $801M of debt, negative free cash flow and a $242M market capitalisation, an adverse outcome is not a valuation haircut — it is a solvency question. Insurance covers notification costs; management has made no assurance on litigation or regulatory exposure.

3. Management has told you that AI threatens 15–20% of revenue while spending 0.85% of revenue on technology. That disclosure, volunteered on the FY2025 call, is the most important fact in the file. The exposed work is CXM and document processing — the segments already losing the most. Total technology investment fell from $34M to $26M year on year. Meanwhile the balance sheet carries $617M of Government-only goodwill representing 25.7% of assets against a $242M market capitalisation, with an impairment trigger explicitly defined in the 10-K as including a decline in stock price and market capitalisation. The write-down has not happened yet; the conditions for it plainly have.

22.5 Catalysts and monitorables for the next 12 months

22.6 Concluding analyst verdict

Conduent is a genuine deep-value situation and a genuine distressed situation, and the distinction between the two will be settled within eighteen months rather than five years.

The value case is arithmetically real. A Government business earning approximately $221M of EBITDA at a 24% margin, with a 29% pipeline growth rate and demonstrated renewal power at Virginia and New Mexico, is worth more standalone than Conduent's entire $815M enterprise value. Roughly $229M of unallocated corporate cost sits between segment profitability and consolidated results, and a new CEO with a turnaround record has committed $100M of that to reduction. Portfolio simplification was executed ahead of commitment. At 0.28x EV/sales and 5.3x forward guided EBITDA, very little of this is in the price.

The distress case is equally real and, on current evidence, better supported. Revenue decline is accelerating — 11.9% in Q2 2026 against 9.4% for FY2025 — and Q2 revenue missed consensus by 23%. The margin recovery that had built through Q4 2025 and Q1 2026 broke in Q2, falling to 3.0%. Free cash flow has been negative for two consecutive years and management's own target for positive adjusted free cash flow is 2027. Two rating agencies downgraded within eight months. The only growing segment has been sold. And management has publicly conceded that 15–20% of revenue is exposed to AI disruption while the company spends 0.85% of revenue on technology.

Overlaying both is an unquantified cyber liability that has escalated sixfold in reported scope, is consolidated across 35-plus class actions with no settlement, and faces federal and multi-state regulatory investigation — against a company with $228M of cash, $801M of debt and a market capitalisation of $242M.

The verdict is that Conduent is currently un-underwritable as a fundamental long position, not because the value is absent but because the tail risk is unbounded and unhedgeable at the equity level. The two events that would change this assessment are, first, a defined settlement framework or reserve for the cyber litigation, and second, a single quarter demonstrating that continuing-operations revenue decline has decelerated below mid-single digits while adjusted EBITDA margin holds above 7%. Until both occur, the H2 2026 Investor Day is the appropriate point of re-evaluation, and the goodwill impairment test in the FY2026 Form 10-K is the appropriate point of maximum caution.

APPENDIX A — DATA QUALITY AND VERIFICATION NOTES

The following items were not verified against primary sources in this research pass and are flagged rather than estimated:

1. ISIN and CUSIP identifiers.
2. Adjusted EBITDA, adjusted net income, adjusted diluted EPS, tax expense and GAAP EBITDA for FY2021–FY2023.
3. FY2021 pre-tax income (derived from a reported margin percentage).
4. Complete balance sheet detail for FY2021–FY2023 beyond cash and total debt.
5. Segment adjusted EBITDA and margins for FY2021–FY2023.
6. Geographic revenue split by region for FY2023 and FY2024.
7. Research and development expense for FY2021–FY2023.
8. Individual named executive officer compensation values from the 2026 Summary Compensation Table.
9. Exact percentage stakes for BlackRock, Vanguard and Dimensional Fund Advisors.
10. Complete top-ten institutional holder table with share counts.
11. Scope 1, 2 and 3 emissions, energy consumption and workforce diversity metrics from the Corporate Social Responsibility report.
12. MSCI, Sustainalytics and CDP ESG scores.
13. S&P Global Ratings outlook and full rationale accompanying the 1 May 2026 downgrade to 'B-'.
14. Item 2 (Properties) site-level register.
15. Competitor financials for Teleperformance, TTEC, EXL Services, Alight, Gainwell, TransCore, Thales, Cubic and INIT.
16. Historical divestiture values for the 2018 HR Consulting and 2021 Midas transactions.
17. Three-year and five-year share price performance percentages.
18. Independent confirmation of the reported 62.2 million affected-individual figure for the January 2025 cyber event against a Conduent SEC filing.

Noted source conflicts:

• FY2023 net loss: $296M (S&P Global Market Intelligence) versus $306M (Simply Wall St). The $296M figure is consistent with reported EPS of $(1.41) and is used throughout.
• Government payments disbursed annually: approximately $100 billion (2024 disclosure) versus approximately $80 billion (FY2025 disclosure), without accompanying explanation.
• Customer service interactions: 1.3 billion (FY2023), 2.3 billion (mid-2024), 2.0 billion (FY2025).
• Employee count in 2021: 60,000 per the FY2021 Form 10-K versus 31,000 per a third-party encyclopaedia entry. The filing figure is used.
• Cyber event affected population: 10.5 million (initial), 25.5 million (Conduent, February 2026), 62.2 million (third-party HIPAA compliance reporting, June 2026).

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