Key Highlights

  • Second-quarter revenue was $531 million, down 11.9%.
  • Transportation asset sales are expected to bring about $234 million in gross proceeds.
  • The company targets roughly $100 million in annualised cost savings.
  • 2026 guidance calls for adjusted EBITDA of $140–$170 million.

Conduent Incorporated (NASDAQ:CNDT), a business process services provider, is in the middle of a significant restructuring. Its second-quarter 2026 report highlighted falling revenue, a net loss and negative free cash flow, alongside a plan to simplify the organisation, cut roughly $100 million in annualised costs and sell its Transportation business. For investors tracking turnaround situations, the key questions are execution, debt reduction and the quality of the remaining business.

Latest Company Context

On August 10, 2026, Conduent reported Q2 results. Revenue was $531 million, down 11.9% from $603 million a year earlier. Net loss was $116 million in total, including a loss from continuing operations of $69 million; pre-tax loss from continuing operations was $57 million. Adjusted EBITDA from continuing operations was $16 million, a 3.0% margin, while six-month adjusted EBITDA was $66 million, or 5.9%. Free cash flow was negative $8 million in the quarter and negative $23 million on an adjusted basis for the six months.

Management said its goal is simplifying the organisation, strengthening financial discipline and taking structural costs out of the business. At June 30, long-term debt was $697 million plus a $21 million current portion, roughly $718 million in total.

Key Business Drivers

Management guidance for 2026 is revenue of $2.15 billion to $2.25 billion and adjusted EBITDA from continuing operations of $140 million to $170 million. These are company expectations, not outcomes. With six-month adjusted EBITDA of $66 million, reaching the range implies a stronger second half.

Two levers stand out. First, an approximately $100 million annualised cost-savings programme. Second, the exit from Transportation through asset sales expected to generate about $234 million in gross proceeds, with most proceeds directed to debt reduction. Lower debt could reduce interest costs and improve flexibility, but shedding a business also shrinks revenue, which may explain part of the year-over-year decline.

What Investors Should Watch

Investors may watch the closing and proceeds of the Transportation asset sales, and how much is actually applied to debt. The pace at which the cost programme shows up in margins is another milestone, since adjusted EBITDA margin in the second quarter was only 3.0%.

The third-quarter report could show whether adjusted EBITDA is tracking toward the guided range, and whether free cash flow turns positive. Investors may also monitor client retention and new-business signings in the remaining portfolio, restructuring charges, and any change to guidance. Conduent's results can also be affected by the timing of contract wins and renewals.

A Transitional Phase With Weak Metrics and a Plan to Improve Them

Conduent is in a transitional phase with weak current metrics and a plan that aims to improve them. Proceeds from the Transportation sale, the pace of cost savings and the second-half earnings ramp are the milestones that matter.