Unisys Plunges to $309M Loss on Pension Hit, Revenue Decline

TL;DR

**Unisys is bleeding cash and taking massive write-downs; stay away from this value trap.**

AI Summary

UNISYS CORP (UIS) reported a significant consolidated net loss of $309.2 million for the three months ended September 30, 2025, a substantial increase from the $61.9 million loss in the prior-year period. For the nine months ended September 30, 2025, the net loss attributable to Unisys Corporation widened to $358.5 million from $223.4 million in 2024. Revenue declined across both segments, with Services revenue falling to $404.1 million from $414.9 million in the three-month period, and Technology revenue decreasing to $56.1 million from $82.1 million. A notable goodwill impairment charge of $55.0 million was recorded in Q3 2025, contributing to the operating loss of $33.5 million, compared to an operating income of $7.5 million in Q3 2024. The company also incurred significant other expenses, net, of $241.2 million for the quarter, largely due to pension settlement losses of $227.7 million. Long-term debt increased to $723.2 million as of September 30, 2025, from $488.2 million at December 31, 2024, driven by $700.0 million in new debt issuance. Cash and cash equivalents decreased to $321.9 million from $376.5 million at year-end 2024.

Why It Matters

This filing reveals a deeply concerning financial performance for Unisys, marked by a massive net loss and declining revenue in both its Services and Technology segments. The significant goodwill impairment and substantial pension settlement losses indicate underlying operational challenges and a strategic re-evaluation of asset values. For investors, this signals increased risk and potential for further share price volatility, especially given the rising long-term debt. Employees might face job insecurity as the company navigates these financial headwinds, while customers could see impacts on service delivery or product innovation if the company's financial health continues to deteriorate. Competitively, this weakened position could allow rivals to gain market share, further pressuring Unisys's future growth prospects.

Risk Assessment

Risk Level: high — The company reported a consolidated net loss of $309.2 million for Q3 2025, a significant deterioration from the $61.9 million loss in Q3 2024. This was exacerbated by a $55.0 million goodwill impairment and $227.7 million in pension settlement losses. Furthermore, long-term debt increased to $723.2 million from $488.2 million, indicating a rising debt burden amidst declining revenues in both Services and Technology segments.

Analyst Insight

Investors should consider divesting from UIS given the substantial net losses, declining revenue across both segments, and increasing long-term debt. The significant goodwill impairment and pension settlement losses suggest deep-seated issues that may continue to erode shareholder value. Monitor future filings for any signs of a turnaround in core business performance and debt reduction strategies.

Financial Highlights

debt To Equity

N/A

revenue

$460.2M

operating Margin

-7.3%

total Assets

N/A

total Debt

$723.2M

net Income

$-309.2M

eps

$-4.33

gross Margin

25.5%

cash Position

$321.9M

revenue Growth

-7.4%

Revenue Breakdown

Key Numbers

• $309.2M — Consolidated Net Loss (Increased significantly from $61.9M in Q3 2024)
• $460.2M — Total Revenue (Decreased from $497.0M in Q3 2024)
• $55.0M — Goodwill Impairment (Recorded in Q3 2025, up from $39.1M in Q3 2024)
• $241.2M — Other Expense, Net (Primarily due to $227.7M in pension settlement losses in Q3 2025)
• $723.2M — Long-Term Debt (Increased from $488.2M at December 31, 2024)
• $321.9M — Cash and Cash Equivalents (Decreased from $376.5M at December 31, 2024)
• $4.33 — Basic Loss Per Share (Worsened from $0.89 in Q3 2024)
• $244.9M — Net Cash Used for Operating Activities (Compared to $58.5M provided by operating activities in the prior nine-month period)
• $188.1M — Net Cash Provided by Financing Activities (Driven by $700.0M proceeds from long-term debt issuance)
• $2,497.6M — Accumulated Deficit (Increased from $2,139.1M at December 31, 2024)

Key Players & Entities

• UNISYS CORP (company) — Registrant for 10-Q filing
• $309.2 million (dollar_amount) — Consolidated net loss for Q3 2025
• $61.9 million (dollar_amount) — Consolidated net loss for Q3 2024
• $358.5 million (dollar_amount) — Net loss attributable to Unisys Corporation for nine months ended Sept 30, 2025
• $223.4 million (dollar_amount) — Net loss attributable to Unisys Corporation for nine months ended Sept 30, 2024
• $404.1 million (dollar_amount) — Services revenue for Q3 2025
• $56.1 million (dollar_amount) — Technology revenue for Q3 2025
• $55.0 million (dollar_amount) — Goodwill impairment charge for Q3 2025
• $227.7 million (dollar_amount) — Pension settlement losses for Q3 2025
• $723.2 million (dollar_amount) — Long-term debt as of September 30, 2025

FAQ

Risk Factors

• Significant Increase in Net Loss and Operating Expenses [high — financial]: The company reported a consolidated net loss of $309.2 million for Q3 2025, a substantial increase from $61.9 million in the prior year. This was exacerbated by a $55.0 million goodwill impairment charge and $241.2 million in other expenses, primarily pension settlement losses of $227.7 million.
• Deteriorating Cash Flow from Operations [high — financial]: Net cash used for operating activities was $244.9 million for the nine months ended September 30, 2025, a stark contrast to $58.5 million provided by operating activities in the same period last year. This indicates a significant drain on the company's operational liquidity.
• Increased Indebtedness [medium — financial]: Long-term debt rose to $723.2 million as of September 30, 2025, from $488.2 million at year-end 2024, driven by a $700.0 million new debt issuance. This increased leverage could strain future financial flexibility.
• Declining Revenue Across Segments [medium — operational]: Both Services and Technology segments experienced revenue declines in Q3 2025 compared to Q3 2024. Services revenue fell to $404.1 million from $414.9 million, and Technology revenue dropped to $56.1 million from $82.1 million.
• Goodwill Impairment [medium — financial]: A goodwill impairment charge of $55.0 million was recorded in Q3 2025, up from $39.1 million in Q3 2024. This suggests that the carrying value of acquired assets may no longer be recoverable, impacting profitability.
• Pension Settlement Losses [medium — financial]: The company incurred significant pension settlement losses of $227.7 million in Q3 2025, contributing heavily to the $241.2 million in 'Other expenses, net'. These one-time charges significantly impacted the net loss.
• Decreasing Cash and Cash Equivalents [medium — financial]: Cash and cash equivalents decreased to $321.9 million from $376.5 million at the end of 2024, reflecting the negative cash flow from operations and other uses of cash.
• Growing Accumulated Deficit [low — financial]: The accumulated deficit increased to $2,497.6 million from $2,139.1 million at December 31, 2024, indicating a persistent trend of net losses over time.

Industry Context

Unisys operates in the IT services and technology sector, facing intense competition from larger, more diversified players and specialized niche providers. The industry is characterized by rapid technological change, evolving client demands for digital transformation, cloud adoption, and cybersecurity solutions. Companies like Unisys must continuously innovate and adapt their offerings to remain competitive, often through strategic acquisitions or divestitures.

Regulatory Implications

As a publicly traded company, Unisys is subject to SEC regulations and accounting standards (GAAP). The significant goodwill impairment and pension settlement losses highlight the importance of accurate asset valuation and actuarial assumptions. Any misstatement or failure to comply with accounting principles could lead to regulatory scrutiny and penalties.

What Investors Should Do

1. Monitor debt levels and cash flow generation closely.
2. Analyze the sustainability of revenue streams.
3. Evaluate the impact of non-recurring charges.
4. Assess management's strategy for profitability improvement.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported a consolidated net loss of $309.2 million, significant revenue declines, a goodwill impairment of $55.0 million, and $241.2 million in other expenses, largely due to pension settlement losses.
• 2024-12-31: End of Fiscal Year 2024 — Reported total assets and provided a baseline for year-over-year changes in debt and cash positions.
• 2024-09-30: End of Q3 2024 — Reported a consolidated net loss of $61.9 million and provided comparative revenue and operating income figures.

Glossary

Goodwill impairment

A charge taken when the carrying value of goodwill on the balance sheet is deemed to be unrecoverable, indicating that the acquired business is not performing as expected. (A $55.0 million charge in Q3 2025 contributed significantly to the net loss, signaling potential overpayment or underperformance of past acquisitions.)

Other (expense), net

A line item that includes various non-operating income or expenses, such as interest expense, gains/losses on debt extinguishment, and pension-related costs. (This category included $241.2 million in expenses in Q3 2025, primarily driven by $227.7 million in pension settlement losses, heavily impacting profitability.)

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income since its inception. It represents a deficit in retained earnings. (The increase to $2,497.6 million indicates a persistent history of unprofitability for Unisys Corporation.)

Pension settlement losses

Losses recognized when a company settles its pension obligations, often by paying lump sums to retirees. These can arise from differences between the settlement amount and the pension obligation's carrying value. (A major driver of the 'Other (expense), net' in Q3 2025, totaling $227.7 million and significantly widening the net loss.)

Noncontrolling interests

The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership stake of outside shareholders. (A small net loss attributable to noncontrolling interests was reported, indicating partial ownership of some subsidiaries by external parties.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Unisys has experienced a significant deterioration in financial performance. Revenue has declined across both its Services and Technology segments, contributing to a substantial increase in consolidated net loss from $61.9 million to $309.2 million. Operating income has shifted to an operating loss, further burdened by a higher goodwill impairment charge and substantial pension settlement losses. While long-term debt has increased significantly due to new issuances, cash reserves have decreased, and operating cash flow has turned negative, presenting a more challenging financial picture than in the previous year.

Filing Documents

• uis-20250930.htm (10-Q) — 1277KB
• q32025-ex311.htm (EX-31.1) — 9KB
• q32025-ex312.htm (EX-31.2) — 8KB
• q32025-ex321.htm (EX-32.1) — 4KB
• q32025-ex322.htm (EX-32.2) — 4KB
• 0000746838-25-000030.txt ( ) — 7806KB
• uis-20250930.xsd (EX-101.SCH) — 44KB
• uis-20250930_cal.xml (EX-101.CAL) — 89KB
• uis-20250930_def.xml (EX-101.DEF) — 249KB
• uis-20250930_lab.xml (EX-101.LAB) — 628KB
• uis-20250930_pre.xml (EX-101.PRE) — 452KB
• uis-20250930_htm.xml (XML) — 1249KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) Consolidated Statements of Income (Loss) 4 Consolidated Statements of Comprehensive Income (Loss) 5 Consolidated Balance Sheets 6 Consolidated Statements of Cash Flows 7 Consolidated Statements of Equity (Deficit) 8

Notes to Consolidated Financial Statements 9

Notes to Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures about Market Risk 37

Item 3. Quantitative and Qualitative Disclosures about Market Risk 37

Controls and Procedures 37

Item 4. Controls and Procedures 37

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings 38

Item 1. Legal Proceedings 38

Risk Factors 38

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 38

Other Information 38

Item 5 Other Information 38

Exhibits 38

Item 6. Exhibits 38 Exhibit Index 39 Signatures 40 INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS Certain statements contained in this report, including, without limitation, statements as to management expectations, assumptions and beliefs presented in Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations," Part I, Item 3. "Quantitative and Qualitative Disclosures About Market Risk," Part II, Item 1. "Legal Proceedings" and in the notes to the financial statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "estimates," "expects," "projects," "may," "will," "intends," "plans," "believes," "should" and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect on us. There can be no assurance that future developments will be in accordance with management's expectations, assumptions or beliefs, or that the effect of future developments on us will be those anticipated by management. Because actual results may differ materially from those expressed or implied by these forward-looking statements, we caution readers not to place undue reliance on these statements. Any forward-looking statement speaks only as of the date on which that statement is made. The company assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as required by applicable law. The factors that could cause actual results to differ materially from our expectations, assumptions and beliefs include, but are not limited to, those discussed in Item 1A. Ris

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements UNISYS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) (Millions, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue Services $ 404.1 $ 414.9 $ 1,202.5 $ 1,247.8 Technology 56.1 82.1 173.1 215.2 460.2 497.0 1,375.6 1,463.0 Costs and expenses Cost of revenue Services 286.9 308.9 876.6 935.9 Technology 56.1 43.1 144.3 116.2 343.0 352.0 1,020.9 1,052.1 Selling, general and administrative 90.9 91.9 281.3 305.5 Research and development 4.8 6.5 16.5 17.5 Goodwill impairment 55.0 39.1 55.0 39.1 493.7 489.5 1,373.7 1,414.2 Operating (loss) income ( 33.5 ) 7.5 1.9 48.8 Interest expense 18.2 7.9 34.6 23.7 Other (expense), net ( 241.2 ) ( 8.2 ) ( 280.2 ) ( 159.7 ) Loss before income taxes ( 292.9 ) ( 8.6 ) ( 312.9 ) ( 134.6 ) Provision for income taxes 16.3 53.3 46.9 89.1 Consolidated net loss ( 309.2 ) ( 61.9 ) ( 359.8 ) ( 223.7 ) Net loss attributable to noncontrolling interests ( 0.3 ) — ( 1.3 ) ( 0.3 ) Net loss attributable to Unisys Corporation $ ( 308.9 ) $ ( 61.9 ) $ ( 358.5 ) $ ( 223.4 ) Loss per share attributable to Unisys Corporation Basic $ ( 4.33 ) $ ( 0.89 ) $ ( 5.06 ) $ ( 3.23 ) Diluted $ ( 4.33 ) $ ( 0.89 ) $ ( 5.06 ) $ ( 3.23 ) See notes to consolidated financial statements 4 UNISYS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Millions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Consolidated net loss $ ( 309.2 ) $ ( 61.9 ) $ ( 359.8 ) $ ( 223.7 ) Other comprehensive loss Foreign currency translation ( 19.4 ) 57.3 119.9 22.0 Pension and postretirement adjustments, net of tax of $ 5.0 and $( 10.7 ) in 2025 and $( 9.7 ) and $( 5.8 ) in 2024 248.0 ( 27.9 ) 215.7 138.1 Total other comprehensive income 228.6 29.4 335.6 160.1 Comprehensive loss ( 80.6 ) ( 32.5 ) ( 24.2 ) ( 63.6 ) Less comprehensive income attributable to noncontr

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in millions, except share and per share amounts) Note 1 - Basis of Presentation The unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These rules and regulations permit some of the information and footnote disclosures normally included in financial statements, prepared in accordance with generally accepted accounting principles in the United States of America (GAAP), to be condensed or omitted. In management's opinion, the unaudited consolidated financial statements contain all adjustments that are of a normal recurring nature, necessary for a fair presentation of the results of operations and financial position of the company for the interim periods presented. These adjustments consist only of normal recurring accruals except as disclosed herein. Because of seasonal and other factors, results for interim periods are not necessarily indicative of the results to be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 31, 2024 and the notes thereto included in the company's Annual Report on Form 10-K, filed with the SEC. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and the reported amounts of revenue and expenses. Such estimates include the valuation of estimated credit losses, contract assets, operating lease right-of-use assets, capitalized contract costs assets, marketable software, goodwill, purchased intangibles and other long-lived assets, legal and environmen

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