Xerox Corporation ( (XRX) ) has released its Q3 earnings. Here is a breakdown of the information Xerox Corporation presented to its investors.
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Xerox Corporation, a leader in document management and IT solutions, has released its third-quarter earnings report for 2025, highlighting significant financial and strategic developments. The company, which operates primarily in the technology sector, is known for its innovative solutions in printing and IT services, bolstered by its recent acquisition of Lexmark.
In the third quarter of 2025, Xerox reported a revenue of $1.96 billion, marking a 28.3% increase from the previous year, although on a pro forma basis, revenue saw a decline of 7.8%. The company narrowed its GAAP net loss to $760 million, a significant improvement from the previous year’s loss. Despite the macroeconomic challenges, Xerox’s operational cash flow increased to $159 million, with free cash flow reaching $131 million.
Key financial metrics indicate a mixed performance. While adjusted net income decreased slightly to $27 million, the company’s operating cash flow and free cash flow showed year-over-year improvements. The Lexmark acquisition has been a strategic highlight, with synergy forecasts now raised to at least $300 million. The IT Solutions segment experienced substantial growth, with double-digit increases in bookings, billings, and revenue.
Xerox’s strategic initiatives, including the integration of Lexmark, are progressing ahead of schedule, with increased synergy targets. The company has also launched the IJP900, marking its re-entry into the production mid-volume inkjet market. Debt reduction efforts have been notable, with $226 million paid down since the Lexmark acquisition.
Looking forward, Xerox remains focused on its Reinvention strategy, aiming to deliver long-term value despite current economic uncertainties. The management is optimistic about leveraging the combined strengths of Xerox and Lexmark to enhance productivity and deliver broader solutions to its customers.