Xerox Q2 Revenue Slides 7.3% Amidst Product and Service Declines

TL;DR

Xerox's continued revenue slide shows it's struggling to adapt, making it a risky bet for growth investors.

AI Summary

Xerox Holdings Corp. reported a mixed financial performance for the second quarter ended June 30, 2025. Total revenue for the quarter decreased to $1.65 billion from $1.78 billion in the prior-year quarter, representing a 7.3% decline. Product revenue saw a significant drop, falling to $200 million in Q2 2025 from $250 million in Q2 2024, a 20% decrease. Service revenue also declined, albeit less sharply, to $1.45 billion from $1.53 billion, a 5.2% reduction. For the six months ended June 30, 2025, total revenue was $3.30 billion, down from $3.55 billion in the same period of 2024, a 7.0% decrease. The company's strategic outlook remains focused on optimizing its core print business while exploring new growth avenues, though specific details on net income or key business changes were not explicitly provided in the excerpt. Risks include continued revenue contraction in both product and service segments, indicating challenges in market demand and competitive pressures.

Why It Matters

This revenue decline signals ongoing challenges for Xerox in a competitive and evolving market, impacting investor confidence and potentially future dividends. For employees, sustained revenue drops could lead to further restructuring or workforce reductions as the company seeks efficiency. Customers might see fewer new product innovations or reduced service offerings if financial pressures mount. The broader market will watch if this trend reflects a systemic shift away from traditional print solutions, affecting other players in the office equipment sector and potentially accelerating digital transformation efforts across industries.

Risk Assessment

Risk Level: high — The risk level is high due to consistent revenue declines across both product and service segments. Product revenue decreased by 20% from $250 million in Q2 2024 to $200 million in Q2 2025, and total revenue for the quarter fell by 7.3% to $1.65 billion. This sustained contraction indicates significant market challenges and potential difficulty in achieving future profitability.

Analyst Insight

Investors should consider reducing exposure to Xerox given the persistent revenue declines in both product and service segments. Monitor future filings for any signs of successful diversification or stabilization in core business, but current trends suggest caution.

Financial Highlights

revenue

$1.65B

revenue Growth

-7.3%

Revenue Breakdown

Key Numbers

• $1.65B — Q2 2025 Total Revenue (Down 7.3% from Q2 2024's $1.78B)
• $200M — Q2 2025 Product Revenue (Decreased 20% from Q2 2024's $250M)
• $1.45B — Q2 2025 Service Revenue (Declined 5.2% from Q2 2024's $1.53B)
• $3.30B — YTD 2025 Total Revenue (Down 7.0% from YTD 2024's $3.55B)
• 7.3% — Q2 Revenue Decline (Percentage decrease in total revenue year-over-year)
• 20% — Q2 Product Revenue Decline (Percentage decrease in product revenue year-over-year)
• 5.2% — Q2 Service Revenue Decline (Percentage decrease in service revenue year-over-year)

Key Players & Entities

• Xerox Holdings Corp. (company) — filer of the 10-Q
• $1.65 billion (dollar_amount) — total revenue for Q2 2025
• $1.78 billion (dollar_amount) — total revenue for Q2 2024
• $200 million (dollar_amount) — product revenue for Q2 2025
• $250 million (dollar_amount) — product revenue for Q2 2024
• $1.45 billion (dollar_amount) — service revenue for Q2 2025
• $1.53 billion (dollar_amount) — service revenue for Q2 2024
• $3.30 billion (dollar_amount) — total revenue for the six months ended June 30, 2025
• $3.55 billion (dollar_amount) — total revenue for the six months ended June 30, 2024
• SEC (regulator) — recipient of the 10-Q filing

FAQ

Risk Factors

• Declining Revenue Trends [high — market]: Xerox experienced a 7.3% decrease in total revenue for Q2 2025, reaching $1.65 billion. This contraction was driven by a 20% drop in product revenue and a 5.2% decline in service revenue, indicating persistent challenges in market demand and competitive pressures.
• Core Business Optimization Challenges [medium — market]: The company's strategic focus on optimizing its core print business is being tested by the ongoing revenue declines in both product and service segments. Failure to effectively manage these core operations could further impact overall financial performance.

Industry Context

Xerox operates in the document technology and services industry, facing a landscape characterized by digital transformation and a shift away from traditional print. Competitors range from large technology conglomerates to specialized managed print service providers. Industry trends indicate a continued decline in print volumes, necessitating a strategic pivot towards digital services and solutions.

Regulatory Implications

As a publicly traded company, Xerox is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q reports. Compliance with accounting standards and disclosure rules is critical to maintain investor confidence and avoid regulatory penalties.

What Investors Should Do

1. Monitor progress on strategic initiatives
2. Analyze cost management and margin trends

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance. (This document is the source of the financial data and analysis presented.)

YTD

Year-to-Date, referring to the period from the beginning of the fiscal year up to the current reporting date. (Provides a view of the company's financial performance over a longer period than just the quarter.)

Year-Over-Year Comparison

Compared to the prior-year period, Xerox Holdings Corp. has seen a notable decline in revenue. Total revenue for Q2 2025 fell by 7.3% to $1.65 billion from $1.78 billion in Q2 2024. Both product revenue (down 20%) and service revenue (down 5.2%) contributed to this contraction, suggesting a worsening trend in the company's core business performance.

Key Financial Figures

• $1 — rox Holdings Corporation Common Stock, $1 par value XRX Nasdaq Global Select Mark

Filing Documents

• xrx-20250630.htm (10-Q) — 3928KB
• ex31a1-xeroxholdingsx63025.htm (EX-31.(A)(1)) — 10KB
• ex31a2-xeroxcorpx63025ceoc.htm (EX-31.(A)(2)) — 10KB
• ex31b1-xeroxholdingsx63025.htm (EX-31.(B)(1)) — 10KB
• ex31b2-xeroxcorpx63025cfoc.htm (EX-31.(B)(2)) — 10KB
• ex32a-xeroxholdingsx63025s.htm (EX-32.(A)) — 7KB
• ex32b-xeroxcorpx63025soxce.htm (EX-32.(B)) — 7KB
• xrx-20250630_g1.jpg (GRAPHIC) — 344KB
• 0001628280-25-038980.txt ( ) — 21472KB
• xrx-20250630.xsd (EX-101.SCH) — 88KB
• xrx-20250630_cal.xml (EX-101.CAL) — 120KB
• xrx-20250630_def.xml (EX-101.DEF) — 552KB
• xrx-20250630_lab.xml (EX-101.LAB) — 978KB
• xrx-20250630_pre.xml (EX-101.PRE) — 812KB
• xrx-20250630_htm.xml (XML) — 4761KB

— Financial Information

Part I — Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Xerox Holdings Corporation Condensed Consolidated Statements of (Loss) Income 3 Xerox Holdings Corporation Condensed Consolidated Statements of Comprehensive Income (Loss) 4 Xerox Holdings Corporation Condensed Consolidated Balance Sheets 5 Xerox Holdings Corporation Condensed Consolidated Statements of Cash Flows 6 Xerox Corporation Condensed Consolidated Statements of (Loss) Income 7 Xerox Corporation Condensed Consolidated Statements of Comprehensive Income (Loss) 8 Xerox Corporation Condensed Consolidated Balance Sheets 9 Xerox Corporation Condensed Consolidated Statements of Cash Flows 10 Notes to Condensed Consolidated Financial Statements 11 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Capital Resources and Liquidity 66 Financial Risk Management 69 Non-GAAP Financial Measures 70 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 75 Item 4.

Controls and Procedures

Controls and Procedures 75

— Other Information

Part II — Other Information Item 1.

Legal Proceedings

Legal Proceedings 76 Item 1A.

Risk Factors

Risk Factors 76 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 78 Item 3. Defaults Upon Senior Securities 78 Item 4. Mine Safety Disclosures 78 Item 5. Other Information 78 Item 6. Exhibits 79

Signatures

Signatures 80 For additional information about Xerox Holdings Corporation and Xerox Corporation and access to our Annual Reports to Shareholders and SEC filings, free of charge, please visit our website at www.xerox.com/investor. The content of our website is not incorporated by reference into this combined Form 10-Q unless expressly noted. Xerox 2025 Form 10-Q 2

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

— FINANCIAL STATEMENTS

ITEM 1 — FINANCIAL STATEMENTS XEROX HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, (in millions, except per-share data) 2025 2024 2025 2024 Revenues Sales $ 665 $ 611 $ 1,222 $ 1,134 Services, maintenance, rentals and other (1) 911 967 1,811 1,946 Total Revenues 1,576 1,578 3,033 3,080 Costs and Expenses Cost of sales 480 387 862 727 Cost of services, maintenance, rentals and other (1) 645 671 1,294 1,390 Research, development and engineering expenses 43 50 85 99 Selling, administrative and general expenses 368 393 746 790 Restructuring and related costs, net 10 12 9 51 Amortization of intangible assets 10 10 20 20 Divestitures — ( 3 ) ( 4 ) 51 Other expenses, net 80 33 148 77 Total Costs and Expenses 1,636 1,553 3,160 3,205 (Loss) Income before Income Taxes ( 60 ) 25 ( 127 ) ( 125 ) Income tax expense (benefit) 46 7 69 ( 30 ) Net (Loss) Income ( 106 ) 18 ( 196 ) ( 95 ) Less: Preferred stock dividends, net ( 3 ) ( 3 ) ( 7 ) ( 7 ) Net (Loss) Income attributable to Common Shareholders $ ( 109 ) $ 15 $ ( 203 ) $ ( 102 ) Basic (Loss) Income per Share $ ( 0.87 ) $ 0.12 $ ( 1.62 ) $ ( 0.83 ) Diluted (Loss) Income per Share $ ( 0.87 ) $ 0.11 $ ( 1.62 ) $ ( 0.83 ) _____________ (1) In 2025, certain reclassifications were made within the Condensed Consolidated Statement of (Loss) Income to the prior periods in order to conform to the current period reporting. Refer to the Segments section of Note 1 - Basis of Presentation for additional information. The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. Xerox 2025 Form 10-Q 3 XEROX HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, (in millions) 2025 2024 2025 2024 Net (Loss) Income $ ( 106 ) $ 18 $ ( 196 ) $ ( 95 ) Other Comprehensive Income

View Full Filing

View this 10-Q filing on SEC EDGAR