Xerox Releases 3Q 2024 Results

Xerox Holdings Corporation announced its 2024 third-quarter results.

The revenue for Q3 2024 was $1.53 billion, down 7.5%, or 7.3% in constant currency. GAAP net (loss) was $(1.2) billion, or $(9.71) per share, a decrease of $1.3 billion or $9.99 per share, year-over-year, respectively. This quarter includes an after-tax non-cash goodwill impairment charge of $1.0 billion, or $8.16 per share and a charge to tax expense related to the establishment of a valuation allowance of $161 million, or $1.29 per share.

Adjusted net income was $34 million, or $0.25 per share, down $43 million or $0.21 per share, year-over-year, respectively. Adjusted operating margin was 5.2%, up 110 basis points year-over-year.

Operating cash flow was $116 million, down $8 million year-over-year, while free cash flow was $107 million, down $5 million year-over-year.

“While equipment revenue fell short of expectations, we continue to see steady progress from Reinvention initiatives taken to date. Adjusted operating income and margin grew year-over-year, and the pending acquisition of ITsavvy will improve Xerox’s value proposition with clients, as well as the mix of revenue from growing businesses,” said Steve Bandrowczak, CEO at Xerox.

“Q3 results demonstrate no single quarter or performance metric in isolation defines our Reinvention,” he added. “Operational improvements and enterprise-wide efficiencies are driving services signings momentum, improved decision-making and a sustainably lower cost base. These gains give us confidence Reinvention will enable long-term profitable growth as we continue this multi-year journey.”