Thursday, May 08, 2025
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Solid results. The company reported Q1 revenue of $751 million, slightly below our estimate of $767 million, illustrated in Figure #1 CNDT Q1 Results. Quarterly adj. EBITDA of $37 million was significantly higher than our estimate of $14 million, driven by better-than-expected operating cost reductions as the company works to remove stranded costs from its 2024 divestitures.
New business signings. During Q1, new business annual contract values (ACV) increased to $109 million, up 13.5% from $96 million in the prior year period. The total contract value (TCV) of the Q1 new business wins was $280 million, up an impressive 95.8%, year-over-year, indicating that management’s plan to return the organization to organic revenue growth is off to a good start, following a year that was more squarely focused on divestitures and debt reduction.
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