Xerox reports first-quarter revenue down 3 percent
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Xerox Holdings Corp. reported first-quarter revenue of $1.46 billion, down 3.0 percent, and 1.1 percent in constant currency. The GAAP net (loss) of $(90) million, or $(0.75) per share, improved by $23 million or $0.19 per share, year-over-year, respectively. The adjusted net (loss) of $(4) million, or $(0.06) per share, declined by $15 million or $0.12 per share, year-over-year, respectively.
“In a quarter marked by increasing levels of macroeconomic and trade policy uncertainty, our team remained focused on what we can control: the balanced execution of our Reinvention and delivering client success,” said Steve Bandrowczak, chief executive officer at Xerox. “Improved sales productivity, the successful integration of ITsavvy, and other Reinvention-enabled operating efficiencies drove momentum in revenue and positive adjusted operating income in our seasonally lowest quarter. Reinvention is delivering improved operating predictability and sales momentum, positioning Xerox well for long-term growth in revenue and adjusted operating income.”
First-Quarter Key Financial Results
B/(W) % Change
(in millions, except per share data) Q1 2025 Q1 2024 YOY B/(W) YOY
| Revenue | $1,457 | $1,502 | $(45) | (3.0)% AC
(1.1)% CC1 |
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| Gross Profit | $426 | $443 | $(17) | (3.8)% | ||||||
| Gross Margin | 29.2% | 29.5% | (30) bps | |||||||
| RD&E % | 2.9% | 3.3% | 40 bps | |||||||
| SAG % | 25.9% | 26.4% | 50 bps | |||||||
| Pre-Tax Loss2 | $(67) | $(150) | $83 | NM | ||||||
| Pre-Tax Loss Margin2 | (4.6)% | (10.0)% | 540 bps |
Gross Profit – Adjusted1 $433 $479 $(46) (9.6)%
| Gross Margin – Adjusted1 | 29.7% | 31.9% | (220) bps | ||||
| Operating Income – Adjusted1 | $22 | $33 | $(11) | (33.3)% | |||
| Operating Income Margin – Adjusted1 | 1.5% | 2.2% | (70) bps | ||||
| GAAP Diluted Loss per Share2 | $(0.75) | $(0.94) | $0.19 | NM | |||
| Diluted (Loss) Earnings Per Share – Adjusted1 | $(0.06) | $0.06 | $(0.12) | NM |
First-Quarter Segment Results
B/(W) % Change
(in millions) Q1 2025 Q1 2024 YOY B/(W) YOY
| Revenue | |||||||
| Print and Other3 | $1,294 | $1,428 | $(134) | (9.4)% | |||
| IT Solutions3 | 164 | 74 | 90 | 121.6% | |||
| Intersegment Elimination4 | (1) | — | (1) | NM | |||
| Total Revenue | $1,457 | $1,502 | $(45) | (3.0)% |
Profit
| Print and Other3 | $41 | $58 | $(17) | (29.3)% | |||||
| IT Solutions3 | 5 | (1) | 6 | NM | |||||
| Total Profit | $46 | $57 | $(11) | (19.3)% |
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- Refer to the “Non-GAAP Financial Measures” section of this release for a discussion of these non-GAAP measures and their reconciliation to the reported GAAP measures.
- First quarter 2025 GAAP Diluted Loss per Share includes a charge to tax expense related to the establishment of $59 million in valuation allowances, or $0.47 per share, and $14 million of after-tax financing-related charges, or $0.11 per share, related to our recently completed debt offering. First quarter 2024 Pre-Tax Loss and Margin, and GAAP Diluted Loss per Share, include after-tax Reinvention-related charges of $100 million, or $0.81 per share, primarily related to the exit of certain Production Print manufacturing operations and geographic simplification.
- First quarter 2025, the Company made a change to its reportable segments – Print and Other, and IT Solutions to align with a change in how the Chief Operating Decision Maker, our Chief Executive Officer, allocates resources and assesses performance against the Company’s key growth strategies. Prior to this change, the company had two reportable segments – Print and Other, and XFS. As a result of this change, prior period reportable segment results have been recast to reflect the Company’s current reportable segments. See Reportable Segments – 2024 Segment Review, and APPENDIX II – Reportable Segments.
- Reflects primarily IT hardware, software solutions and services, sold by the IT Solutions segment to the Print and Other segment.