Xerox Releases Second-Quarter Results; Reinvention drives sequential operating and financial improvements in Q2

Published: 2024-07-26 11:05:17 ET XRX

NORWALK, Conn- Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2024 second-quarter results.

Financial Summary

* Revenue of $1.58 billion, down 10 percent, or 9.6 percent in constant currency.

* GAAP net income of $18 million, or $0.11 per share, up $79 million or $0.52 per share, year-over-year, respectively.

* Adjusted net income of $41 million, or $0.29 per share, down $31 million or $0.15 per share, year-over-year, respectively.

* Adjusted operating margin of 5.4 percent, down 70 basis points year-over-year.

* Operating cash flow of $123 million, up $28 million year-over-year.

* Free cash flow of $115 million, up $27 million year-over-year.

* Lowered 2024 revenue guidance to a range of -5% to -6% in constant currency to reflect incremental strategic actions, adjusted operating income guidance to at least 6.5%, and free cash flow guidance to at least $550 million.

* Maintained $300 million adjusted operating income improvement target over 2023 levels by the end of 2026.

'The comprehensive and strategic operating model changes implemented in Q1 caused a short period of disruption but are delivering the intended improvements in financial results. Adjusted operating income margin, free cash flow and revenue trajectory improved sequentially in Q2. Momentum in orders, enhanced sales operations and new product initiatives are expected to drive a return to revenue growth in the second half of the year,' said Steve Bandrowczak, chief executive officer at Xerox. 'Q2 results give us confidence Xerox's new operating model, which is more streamlined and closely aligned to the economic buyers of our products and services, is enabling the operating improvements required to deliver an incremental $300 million of adjusted operating income over 2023 levels and a return to double-digit adjusted operating income margin by 2026.'

Second-Quarter Key Financial Results

See full results at: https://investors.xerox.com/news-releases/news-release-details/xerox-releases-second-quarter-results-0