Xerox Holdings Reports Q1 Loss, Revenues Miss Estimates

Xerox Holdings Corporation XRX reported a first-quarter 2025 loss of six cents per share compared with the Zacks Consensus Estimate of a loss of 5 cents and the year-ago earnings of 6 cents.

Revenues of $1.46 billion missed the Zacks Consensus Estimate by 3.2% and decreased 3% year over year on a reported basis. Revenues declined 1.1% on a constant-currency (CC) basis.

Xerox Holdings Corporation Price, Consensus and EPS Surprise

Xerox Holdings Corporation price-consensus-eps-surprise-chart | Xerox Holdings Corporation Quote

The company’s shares have depreciated 67.6% over the past year compared with the Office Supplies industry’s 47.5% decline.

Q1 Revenue Details of XRX

Post-sale revenues came in at $1.17 billion, down 3.2% year over year on a reported basis and 1.2% at cc, lagging our estimate of $1.21 billion. Equipment sales declined 2.1% year over year on a reported basis and 0.7% at cc to $284 million, beating our estimate of $262.8 million.

The Print and Other segment’s revenues totaled $1.29 billion, down 9.4% year over year and missing our estimate of $1.46 billion.

Sales revenues totaled $557 million, down 6.5% year over year on a reported basis and 8.7% at cc. Services, maintenance, rentals and other revenues include financing revenue generated from direct and indirectly financed Xerox equipment sale transactions of $33 million and $42 million for the first quarter of 2025 and 2024, respectively.

XRX’s Operating Performance

Adjusted operating income came in at $22 million, down 33.3% on a year-over-year basis. The adjusted operating margin was 1.5%, down 70 basis points year over year.

XRX’s Key Balance Sheet and Cash Flow Figures

Xerox exited the quarter with a cash and cash equivalent balance of $336 billion compared with $576 million at the end of the prior quarter. The company’s net cash used in operating activities and free cash flow were $89 million and $109 million, respectively, in the quarter.

Xerox’s 2025 Guidance

Xerox expects low single-digit revenue growth at constant currency. The adjusted operating margin expectation is at least 5%. The company expects free cash flow to be $350 to $400 million.

The operating cash flow for 2025 is expected to be around $420-470 million, and capital expenditures are anticipated to be $70 million.

XRX currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. FI reported mixed first-quarter 2025 results. The company’s earnings beat the Zacks Consensus Estimate, while revenues missed the mark.

FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the ZacksEarnings Calendar to stay ahead of market-making news.)

The Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results. The company’s earnings topped the Zacks Consensus Estimate, while revenues missed the mark.

IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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