Conduent Inc

Conduent reported second quarter 2026 results in line with expectations and updated full-year guidance to reflect the divestitures of its transit and tolling businesses. Revenue was $531 million, down 11.9% year-over-year, while adjusted EBITDA was $16 million, down from $23 million a year earlier. The company announced the sale of its transit business to Modaxo and its tolling business to Quarterhill, expecting approximately $234 million in gross proceeds plus a 7% equity stake in Quarterhill, and plans to use the majority of proceeds to reduce debt. Conduent also updated its 2026 revenue guidance to a range of $2.15 billion to $2.25 billion and adjusted EBITDA guidance to between $140 million and $170 million. CEO Harsha Agadi highlighted progress on cost savings, portfolio optimization, and AI initiatives, including the Conni digital assistant resolving 86% of employee inquiries without human intervention.

Conduent Incorporated reported second quarter 2026 financial results and announced signed divestitures expected to generate $234 million in gross proceeds. Revenue from continuing operations was $531 million, down 11.9% year-over-year, while pre-tax loss from continuing operations widened to $57 million. Adjusted EBITDA from continuing operations fell to $16 million, with a margin of 3.0%, and new business signings ACV reached $99 million. The company entered agreements to sell its Public Transit business to Modaxo for $164 million and its Tolling business to Quarterhill Inc. for $70 million plus a 7% equity interest, exceeding its $200 million portfolio action target. Conduent also provided a full-year 2026 outlook for revenue of $2.15 billion to $2.25 billion and adjusted EBITDA from continuing operations of $140 million to $170 million.

Bill Miller has included Conduent Incorporated among his top stock picks. Conduent, a business process technology company, has seen its shares decline 44% over the past year and 20% year-to-date. In February, cybersecurity firm MalwareBytes reported that Conduent's data breach, first disclosed in October 2025, was worse than initially believed, affecting an estimated 25 million people across the US and exposing details such as social security numbers, legal names, and health insurance data. On June 30th, Conduent announced the sale of its tolling business to a Canadian firm for $70 million, a deal expected to close before year-end as part of efforts to simplify operations and focus on core activities.

Quarterhill has agreed to acquire substantially all assets of Conduent's tolling solutions business. The transaction is expected to nearly triple Quarterhill's tolling revenue and create a combined backlog of approximately $2 billion. On a proforma basis, the combined companies would have generated more than $400 million in annual revenue with an adjusted EBITDA margin between 10 and 15 percent. Quarterhill will pay $70 million in cash and issue common shares representing 7 percent of outstanding shares upon closing. The deal is expected to close in the fourth quarter.