Norwalk, CT (July 31, 2025) — Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2025 second-quarter results. “Completing the Lexmark acquisition marks an important milestone in the company’s Reinvention, creating a vertically integrated market leader with a broader, differentiated set of workflow and technology solutions for our clients and partners,” said Steve Bandrowczak, CEO at Xerox. “Our second quarter reflects the improved resiliency of financial results afforded by Reinvention. Growth in IT and digital solutions helped deliver stable revenue, and a focus on costs preserved profitability amid a volatile operating landscape. “In the second half of the year, we’re focused on executing Reinvention through the integration of Lexmark, laying the foundation for growth in revenue, adjusted operating income and free cash flow in 2026.” Second-Quarter Key Financial Results 2025 Guidance• Revenue: 16-17% growth in constant currency1• Adjusted1 Operating Margin: around 4.5%• Free cash flow1: around $250 million Revised guidance includes Lexmark’s financial results beginning July 1 and reflects $30 to 35 million of expected tariff-related expenses, net of mitigation efforts, modest Lexmark-related synergies and a slightly more conservative Print equipment demand outlook amid ongoing tariff and government policy-related uncertainty. Free Cash Flow1 guidance includes $60 to $65 million of cash tariff expenses, net of mitigation efforts, and $50 to $75 million of one-time costs associated with the implementation of synergy savings. Tariff impacts included in guidance reflect tariff rates that are proposed to take effect August 1. We continue to expect most tariff expenses to be offset over time through pricing and other mitigation efforts. Non-GAAP Measures This release refers to the following non-GAAP financial measures:• Adjusted1 Gross Profit and Margin, which exclude the inventory impact related to the exit of certain Production Print manufacturing operations, included in Cost of services, maintenance and rentals.• Adjusted1 EPS, which excludes Restructuring and related costs, net, Amortization of intangible assets, non-service retirement-related costs, and other discrete adjustments from GAAP EPS, as applicable.• Adjusted1 operating income and margin, which exclude the EPS adjustments noted above as well as the remainder of Other expenses, net from pre-tax (loss) income and margin.• Constant currency (CC)1 revenue change, which excludes the effects of currency translation.• Free cash flow1, which is operating cash flow less capital expenditures. 1 Refer to the “Non-GAAP Financial Measures” section of this release for a discussion of these non-GAAP measures and their reconciliation tothe reported GAAP measures. ### About Xerox Holdings Corporation (NASDAQ: XRX)Xerox has been redefining the workplace experience for over a century. As a services-led, software-enabled company, we power today’s hybrid workplace through advanced print, digital, and AI-driven technologies. In 2025 Xerox acquired Lexmark – expanding our global footprint, strengthening service capabilities, and equipping us to deliver an even broader portfolio of workplace technologies to our clients. Today, we continue our legacy of innovation to deliver client-centric, digitally driven solutions that meet the needs of a global, distributed workforce. Whether in offices, classrooms, or hospitals, we help our clients thrive in a constantly evolving business landscape.
More...
More...