Mon, May 12, 8:43 PM (42 days ago)
### Xerox Holdings Corporation (XRX) - Q1 2025 Financial Summary **Revenue and Profit Margins:** - **Total Revenue:** $1.457 billion, down 3.0% YoY, including a 6.6% benefit from the ITsavvy acquisition and a 1.9% adverse impact from currency. - **Equipment Sales:** $284 million, down 2.1% YoY, with a 0.7% constant currency decline. - **Post-Sale Revenue:** $1.173 billion, down 3.2% YoY, including an 8.2% benefit from ITsavvy. - **Net Loss:** $90 million, improved by $23 million YoY, reflecting divestitures and lower restructuring costs. - **Adjusted Operating Income:** $22 million, down $11 million YoY, due to lower revenue and gross profit. **Cash Flow:** - **Operating Cash Flow:** $(89) million, down $10 million YoY, due to lower finance receivables sales. - **Investing Cash Flow:** $6 million, reflecting asset sales and lease modifications. - **Financing Cash Flow:** $(159) million, due to debt payments and dividends. **Segment Performance:** - **Print and Other:** Revenue down 9.4% YoY, with equipment sales down 2.1% and post-sale revenue down 11.2%. - **IT Solutions:** Revenue up 121.6% YoY, driven by the ITsavvy acquisition. **Financial Health and Operations:** - **Cash Position:** $390 million, down from $631 million due to financing activities. - **Debt:** $3.298 billion, with $1.651 billion supporting finance assets. - **Guidance:** Revenue expected to grow at low single digits in constant currency, with adjusted operating income margin at least 5.0%. **Uncertainties and Future Operations:** - **Tariffs:** Expected to impact operating income by approximately $50 million in 2025. - **Lexmark Acquisition:** Pending regulatory approvals, expected to close in Q3 2025. - **Currency Impact:** Adverse impact on revenue and expenses, managed through hedging strategies. **Management's Discussion:** - **Reinvention Initiatives:** Ongoing cost reduction and productivity programs. - **Segment Changes:** Updated reportable segments to align with strategic growth strategies. - **Valuation Allowance:** Recorded primarily related to U.S. deferred tax assets. **Conclusion:** Xerox Holdings Corporation faced challenges in Q1 2025, including revenue declines and increased costs, but showed improvements in net loss and adjusted operating income. The company continues to focus on strategic initiatives and acquisitions to drive future growth and stability.