Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
George Proost, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q2 results reflect ongoing transformation. Continuing operations revenue declined 11.9% to $531 million, while adjusted EBITDA was $16 million, or a 3.0% margin. Commercial remained pressured by contract losses and lower volumes, while Government results reflected the timing of Medicaid implementation activity.
Guidance supports a stronger second half. Management established 2026 continuing operations guidance of $2.15-$2.25 billion of revenue and $140-$170 million of adjusted EBITDA, implying a roughly 7% EBITDA margin at the midpoint. Our estimates of $2.21 billion and $157 million, respectively, are modestly above the midpoint of guidance.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
George Proost, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Execution continues to improve. Management reiterated that second quarter results were in line with expectations while highlighting meaningful progress across its five strategic priorities, including cost reduction, financial discipline, portfolio optimization, and pipeline conversion. Six months into the transformation, management believes the company is beginning to see tangible operational improvements.
Transportation exit strengthens the financial profile. The announced sales of the Transit and Tolling businesses are expected to generate approximately $234 million of gross proceeds, reduce off-balance-sheet obligations by roughly 80%, lower capital requirements, and provide significant flexibility to reduce debt while sharpening management’s focus on its core businesses.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Signed divestitures expected to generate $234M in gross proceeds
Revenue: $531M from Continuing Operations
Pre-tax Income (Loss) from Continuing Operations: $(57)M
Adj. EBITDA from Continuing Operations(1) : $16M
Adj. EBITDA Margin from Continuing Operations(1): 3.0%
New Business Signings ACV from Continuing Operations(2): $99M
FLORHAM PARK, N.J., Aug. 10, 2026 — Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business process solutions and services company, today announced its second quarter 2026 financial results.
Harsha V. Agadi, Chief Executive Officer, stated: “Six months into our transformation, we are making significant progress against the priorities we established at the beginning of the year. We are simplifying the organization, strengthening financial discipline and taking structural costs out of the business, while making good progress against our approximately $100 million annualized cost-savings program. We also took significant steps this quarter to reshape our portfolio and sharpen our focus on the markets where we believe Conduent is best positioned to compete and grow. The announced sales of our Transit and Tolling businesses are expected to generate approximately $234 million in gross proceeds, plus a 7% equity interest in the Tolling buyer, exceeding the commitment we made in the first quarter to generate at least $200 million through portfolio actions. We intend to use the majority of these proceeds to reduce debt and further strengthen our balance sheet.”
“At the same time, we are seeing encouraging momentum in our go-to-market execution. Our qualified new business pipeline continues to grow, supported by new wins and expansions across both Commercial and Government. We are also investing in our go-forward portfolio and differentiated technology capabilities, including AI, to help clients modernize complex, mission-critical operations and position Conduent to capture opportunities in the large and growing markets we serve.”
“While our second-quarter financial results do not yet reflect the full impact of the actions underway, we are building a simpler, more focused and higher-performing Conduent. We remain focused on disciplined execution, converting our pipeline into profitable growth, and building a stronger cost structure. I am confident that the actions we are taking today position us to improve financial performance and create sustainable, long-term value for our clients and shareholders.”
Key Financial Q2 2026 Results
($ in millions, except margin and per share data)
Q2 2026
Q2 2025
Current Quarter Y/Y B/(W)
Revenue
$531
$603
(11.9)%
GAAP Net Income (Loss)
$(116)
$(40)
(190.0)%
Adjusted EBITDA from Continuing Operations(1)
$16
$23
(30.4)%
Adjusted EBITDA Margin from Continuing Operations(1)
3.0%
3.8%
-80 bps
GAAP Income (Loss) Before Income Tax from Continuing Operations
$(57)
$(43)
(32.6)%
GAAP Diluted EPS from Continuing Operations
$(0.46)
$(0.27)
$(0.19)
Adjusted Diluted EPS from Continuing Operations(1)
$(0.18)
$(0.16)
$(0.02)
Cash Flow from Operating Activities
$7
$(15)
146.7%
Adjusted Free Cash Flow(1)
$(8)
$(30)
73.3%
Performance Commentary Cash flow from operating activities improved by $22 million year‑over‑year, primarily due to favorable working capital results, which included, among other things, the effects of the realization of some of our long-term projects in the Government and former Transportation segments.
Q2 2026 pre-tax income (loss) from continuing operations was $(57) million versus $(43) million in the prior year period. This unfavorable variance was primarily caused by higher restructuring-related costs in the current year related to our transformation plan.
Q2 2026 Adjusted EBITDA of $16 million and Adjusted EBITDA margin of 3.0% decreased, respectively, versus the prior year, due to lower profitability in our Government segment.
Key Achievements and Industry Accolades
Portfolio Optimization & Strategic Transformation
Entered into agreements to sell the Public Transit business to Modaxo for $164 million and the Tolling business to Quarterhill Inc. for $70 million, plus a 7% equity interest in Quarterhill, further simplifying Conduent’s portfolio, strengthening financial flexibility and increasing focus on core growth opportunities.
Business Execution & Contract Wins
Signed a pension risk transfer administration engagement with Securian, expanding Conduent’s retirement administration capabilities.
Selected by Trillium Health Resources to deploy the Health Services Plus platform for claims processing, provider data management, and member services.
Implemented a modernized Medicaid platform for the State of New Mexico, replacing a 24-year-old legacy system and supporting approximately 900,000 Medicaid members.
Awarded a multi-year contract renewal by the Commonwealth of Virginia to continue operating and modernizing its Medicaid platform, serving approximately 1.6 million members.
Expanded the EBT EMV implementation following the Alabama rollout, with four states expected to be live with chip-enabled EBT cards by year-end 2026, helping strengthen payment security and protect beneficiaries from card fraud.
Innovation & Technology Investment
Introduced an AI-powered next-generation Customer Experience platform featuring real-time translation, AI-assisted training, and voice enhancement capabilities to improve customer experiences and agent performance.
Investing in next-generation Medicaid technology to modernize provider enrollment and management, with the first client implementation planned for a U.S. state, expanding Conduent’s Government Healthcare capabilities and supporting continued modernization of state Medicaid programs.
Leadership & Governance
Appointed Adam Demuyakor to the Board of Directors, adding expertise in artificial intelligence, digital transformation, innovation and enterprise technology.
FY 2026 Outlook(3)
FY 2026 Outlook(3)
Revenue
$2,150M – $2,250M
Adj. EBITDA from Continuing Operations(1)
$140M – $170M
(1)
Refer to the Appendix for definition and complete non-GAAP reconciliations of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS and Adjusted Free Cash Flow.
(2)
Refer to the Appendix for definition.
(3)
Refer to the Appendix for additional information regarding non-GAAP outlook.
Conference Call Management will present the results during a conference call and webcast on August 10, 2026 at 9:00 a.m. ET.
The call will be available by live audio webcast along with the news release and online presentation slides at https://investor.conduent.com/.
The conference call will also be available by calling 877-407-4019 toll-free. If requested, the conference ID for this call is 13761624.
The international dial-in is 1-201-689-8337. The international conference ID is also 13761624.
A recording of the conference call will be available by calling 1-877-660-6853 three hours after the conference call concludes. The replay ID is 13761624.
The telephone recording will be available until Aug 24, 2026.
About Conduent Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 46,000(1) associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com.
(1) Approximately 46,000 employees globally, including approximately 3,500 within the Transportation business.
Non-GAAP Financial Measures We have reported our financial results in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). In addition, we have discussed our financial results using non-GAAP measures from our Continuing Operations only, unless otherwise noted. We believe these non-GAAP measures allow investors to better understand the trends in our business and to better understand and compare our results. Accordingly, we believe it is necessary to adjust several reported amounts, determined in accordance with U.S. GAAP, to exclude the effects of certain items as well as their related tax effects. Management believes that these non-GAAP financial measures provide an additional means of analyzing the results of the current period against the corresponding prior period. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, our reported results prepared in accordance with U.S. GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable U.S. GAAP measures and should be read only in conjunction with our Consolidated Financial Statements prepared in accordance with U.S. GAAP. Our management regularly uses our non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. Providing such non-GAAP financial measures to investors allows for a further level of transparency as to how management reviews and evaluates our business results and trends. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on certain of these non-GAAP measures. Refer to the “Non-GAAP Financial Measures” and “Non-GAAP Reconciliations” sections attached to this release for a discussion of these non-GAAP measures and their reconciliation to the reported U.S. GAAP measures.
Forward-Looking Statements
This press release, any exhibits or attachments to this release, and other public statements we make may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “estimate,” “expect,” “expectations,” “in front of us,” “plan,” “intend,” “will,” “aim,” “should,” “could,” “forecast,” “target,” “may,” “continue to,” “looking to continue,” “endeavor,” “if,” “growing,” “projected,” “potential,” “likely,” “see,” “ahead,” “further,” “going forward,” “on the horizon,” “as we progress,” “going to,” “path from here forward,” “think,” “path to deliver,” “from here,” “on track,” “remain” and similar expressions (including the negative and plural forms of such words and phrases), as they relate to us, are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact included in this press release or any attachment to this press release are forward-looking statements, including, but not limited to, statements regarding our financial results, condition and outlook; changes in our operating results; general and market and economic conditions; and our projected financial performance, including all statements made under the section captioned “FY 2026 Outlook” within this release. Unless otherwise noted, the discussion of our results is on a continuing operations basis and does not include discontinued operations. These statements are based on our beliefs and reflect our current views with respect to future events using currently available information and are subject to certain risks, uncertainties and assumptions, many of which are outside of our control, that could cause actual results to differ materially from those expected or implied by such forward-looking statements contained in this press release, any exhibits to this press release and other public statements we make.
Important factors and uncertainties that could cause our actual results to differ materially from those in our forward-looking statements include, but are not limited to: risks related to recently announced divestitures including the sale of the Company’s (i) Public Transit business and (ii) Tolling business, including but not limited to our ability to realize the benefits anticipated from such transactions, as well as unexpected costs, liabilities or delays associated with such transactions; competitive restrictions applicable to the Company and its affiliates under the definitive transaction agreements; risks related to the equity interest in Quarterhill Inc. to be received as partial consideration in the Tolling transaction, including fluctuations in the value of such interest; government appropriations and termination rights contained in our government contracts; the impact of changes in government spending levels, budget priorities or efficiency initiatives, including federal cost-reduction programs, on demand for our government solutions and services; the competitiveness of the markets in which we operate and our ability to renew commercial and government contracts, including contracts awarded through competitive bidding processes; our ability to recover capital and other investments in connection with our contracts; the impact of geopolitical events and geopolitical tensions (such as the war in Ukraine and conflict in the Middle East), macroeconomic conditions, natural disasters and other factors in a particular country or region on our workforce, customers and vendors; the impact of changes in trade policies, tariffs or export controls on our cost structure, supply chain and business operations; our reliance on third-party providers; our ability to deliver on our contractual obligations properly and on time; changes in continued interest in outsourced business process services; the adverse effect of claims of infringement of third-party intellectual property rights; our ability to estimate the scope of work or the costs of performance in our contracts; the loss of key senior management and our ability to attract and retain necessary technical personnel and qualified subcontractors; our failure to develop new service offerings and protect our intellectual property rights; our ability to modernize our information technology infrastructure and consolidate data centers; expectations relating to environmental, social and governance considerations; utilization of our stock repurchase program; the effects related to our use of artificial intelligence on our business; the failure to comply with laws relating to individually identifiable information and personal health information; the failure to comply with laws relating to processing certain financial transactions, including payment card transactions and debit or credit card transactions; breaches of our information systems or security systems or any service interruptions; risks related to hacking or other cybersecurity threats to our data systems, information systems and network infrastructure and other service interruptions, including relating to the previously disclosed cyber event that took place in January 2025 (the “January 2025 Cyber Event”), including Conduent’s investigation of such incident and mitigation and remediation efforts, the nature and extent of such incident, the potential disruption to our business or operations, the potential impact on Conduent’s reputation, and Conduent’s assessments of the likely financial and operational impacts of such incident; our ability to comply with data security standards; developments in various contingent liabilities that are not reflected on our balance sheet, including those arising as a result of being involved in a variety of claims, lawsuits, investigations and proceedings; the impact of potential goodwill and other asset impairments on our results of operations; our significant indebtedness and the terms of such indebtedness; our failure to obtain or maintain a satisfactory credit rating and financial performance; our ability to obtain adequate pricing for our services and to improve our cost structure; our ability to collect our receivables, including those for unbilled services; a decline in revenues from, or a loss of, or a reduction in business from or failure of significant clients; fluctuations in our non-recurring revenue; increases in the cost of voice and data services or significant interruptions in such services; our ability to receive dividends or other payments from our subsidiaries; and other factors that are set forth in the “Risk Factors” section, the “Legal Proceedings” section, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section and other sections in our 2025 Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the Securities and Exchange Commission. Any forward-looking statements made by us in this release speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether because of new information, subsequent events or otherwise, except as required by law.
Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today announced that the Virginia Department of Medical Assistance Services (DMAS) has awarded the company a contract to continue operating, and modernize, the Commonwealth’s systems that support Virginia Medicaid. The contract, which spans up to 14 years, extends Conduent’s relationship with Virginia’s Medicaid program that began in 2001.
Under the new agreement, Conduent will use its modular Conduent Medicaid Suite (CMdS) to modernize Virginia’s Medicaid Enterprise Systems and Fiscal Agent Services Solution. These entail claims processing, finance, call center services, reporting, and other core functions. This transition to an integrated, dynamic solution will help DMAS improve access to information, reduce fraud risks, and strengthen program performance. Members, providers, and staff will benefit from enhanced user experiences, supporting better health outcomes for the approximately 1.6 million Virginians enrolled in Medicaid.
Conduent will also deploy Conduent CXNow , its cloud-based Customer Experience-as-a-Service platform used by government agencies and commercial clients. Powered by AI, automation, and analytics, CXNow will streamline customer interactions across phone and chat, expand self-service options, and improve overall service quality. For the Commonwealth, these enhancements will drive additional cost savings and operational efficiency.
“We are honored to continue our long-standing collaboration with Virginia to enhance Medicaid outcomes through modernization, advanced technologies, and improved business processes,” said Anna Sever, President, Government Solutions at Conduent. “Through strong collaboration and teamwork, we are committed to delivering exceptional value to the Commonwealth and improving the lives of Virginians.”
The new contract includes a two-year design and implementation phase, followed by a six-year base term and six one-year options. It also includes continued management of incoming and outgoing mail services supporting the Medicaid program.
Conduent’s Government Solutions supports government healthcare programs across the country, delivering a range of innovative solutions such as Medicaid management and provider services, pharmacy benefits management, eligibility and enrollment support, and case management solutions. The business also provides agencies with government payments and child support services. In 2025 alone, Conduent processed over 454 million Medicaid claims and disbursed approximately $80 billion in government benefit payments.
About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com .
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
FLORHAM PARK, N.J.—Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today announced the appointment of Anna Novoseletsky as Executive Vice President, General Counsel and Secretary.
In this role, Novoseletsky will lead Conduent’s global legal, compliance, risk and HR functions and serve as a member of the company’s executive leadership team.
“Anna is an accomplished legal executive with deep expertise in public company governance, global payments, regulatory affairs and strategic transactions,” said Harsha Agadi, Chief Executive Officer of Conduent. “She has built and led high-performing legal organizations, partnered closely with executive teams and boards, and successfully guided companies through periods of growth and transformation. Her strategic perspective and commitment to strong governance make her an outstanding addition to our leadership team as we continue executing our strategy and positioning Conduent for long-term success.”
Prior to joining Conduent, Novoseletsky served as Chief Legal Officer, Chief Compliance Officer and Corporate Secretary of Cantaloupe, Inc., where she led the company’s legal, governance and compliance functions and supported strategic growth initiatives, including mergers and acquisitions. Previously, she spent more than a decade at Discover Financial Services, serving as General Counsel for its global payments business across more than 20 countries, advising on strategic transactions, product innovation and complex regulatory matters.
“Conduent serves governments, health plans and commercial clients in highly regulated industries while reshaping its portfolio,” said Novoseletsky. “That requires legal to move at the speed of the business. I’m excited to join Conduent at a pivotal moment and help advance its transformation.”
Before Discover, Novoseletsky practiced mergers and acquisitions, securitization and capital markets law at Latham & Watkins. She earned a Juris Doctor, cum laude, from Northwestern Pritzker School of Law and Bachelor and Master of Laws degrees, magna cum laude, from the National Law Academy of Ukraine. She is admitted to practice law in Illinois.
About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com.
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, plans to report its second-quarter 2026 financial results on Monday, Aug. 10, 2026 before market open. Management will present the results during a conference call and webcast at 9:00 a.m. ET.
The call will be available by live audiocast along with the news release and online presentation slides at https://investor.conduent.com .
The conference call will also be available by calling 877-407-4019 toll free. If requested, the conference ID is 13761624.
The international dial-in is +1 201-689-8337. The international conference ID is also 13761624.
A recording of the conference call will be available by calling 877-660-6853 after the conference call concludes. The access ID for the recording is 13761624.
The call recording will be available until Aug. 24, 2026.
We look forward to your participation.
About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com .
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Transportation exit complete. Conduent announced the sale of its Tolling business for $70 million, completing its planned exit from the Transportation segment and substantially finishing management’s portfolio rationalization strategy.
Higher-quality business emerges. The Transportation divestitures simplify Conduent’s operating structure, reduce capital intensity, and sharpen management’s focus on its core Government and Commercial businesses, which we believe should improve long-term earnings quality and free cash flow generation.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Tolling divestiture completes Transportation exit. Conduent announced the sale of its Tolling business to Quarterhill for $70 million, completing its previously announced exit from the Transportation segment and advancing management’s portfolio simplification strategy. The transaction is expected to close during the fourth quarter of 2026, subject to satisfaction or waiver of customary closing conditions.
Deal terms limit Conduent’s residual risk. Quarterhill will assume substantially all liabilities associated with the business, including surety bond obligations, while Conduent will retain a 7% equity stake in Quarterhill, providing potential upside participation.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Conduent Will Also Receive a 7% Interest in Quarterhill Inc.
Conduent Bolsters Financial Position
Tolling Agreement Follows Recently Announced Agreement to Sell Its Public Transit Business
FLORHAM PARK, N.J., June 30, 2026 — Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services provider, today announced that it has entered into a definitive agreement to sell its Tolling business (a division of Conduent Transportation) to Quarterhill Inc. (TSX: QTRH) (OTCQX: QTRHF), a leading global provider of intelligent transportation system solutions.
The sale has a purchase price of $70 million in cash, and Quarterhill will assume most liabilities associated with the business, including all surety bond obligations, further improving Conduent’s financial profile. The structure of the transaction enhances Conduent’s financial flexibility and reduces exposure to non-core obligations.
The transaction is expected to close before the end of 2026.
This agreement follows a separate transaction, announced in May, to sell the Public Transit business, also part of Conduent’s Transportation division, which is similarly expected to close before the end of 2026.
Together, these transactions simplify Conduent’s portfolio and increase focus on its core businesses, enhancing the predictability and durability of Conduent’s earnings profile.
“This Tolling transaction, alongside the previously announced Public Transit agreement, advances our strategy to simplify our portfolio, sharpen focus on our core businesses, and strengthen our financial foundation,” said Harsha V. Agadi, Conduent President and Chief Executive Officer. “We are continuing our strategic journey to enhance long-term value creation, including simplifying our business, strengthening the balance sheet, and increasing sustainable free cash flow.
“With more than four decades of experience in tolling, Quarterhill is extremely well positioned to support the Conduent Tolling team and its clients. As we move toward closing, we remain committed to delivering outstanding quality and performance for all Transportation clients while ensuring smooth transitions for both clients and associates.”
As part of the transaction, Conduent will also receive a 7% interest in Quarterhill Inc. along with registration rights and board observer rights, providing potential upside participation in future value creation.
With operations in the United States and United Kingdom, Conduent’s Tolling business provides mission‑critical technology that enables all‑electronic tolling, roadside and back‑office processing, image review, violation enforcement, and analytics. It supports more than 14 million tolling transactions per day.
Additional details of the transaction are outlined in Conduent’s 8-K filed with the U.S. Securities and Exchange Commission (SEC) today.
About Conduent Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com.
About Quarterhill Quarterhill is a global leader in the Intelligent Transportation System (ITS) industry, advancing mobility through smart infrastructure solutions that reduce congestion, improve roadway safety, and create more sustainable travel. Each year, Quarterhill’s platforms process billions of transactions, perform compliance and safety inspections on millions of commercial vehicles, and enable transportation agencies worldwide to optimize thousands of lanes of traffic to improve travel for everyone. Leveraging advanced artificial intelligence and machine learning technologies, Quarterhill’s platform delivers automation and predictive insight to help agencies manage transportation networks more efficiently. By working in close partnership with governments, communities, and industry leaders, Quarterhill is building today’s connected roadways while shaping the next generation of intelligent, resilient mobility. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. Learn more at www.quarterhill.com.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
The launch of the AI-powered Next Generation CX Platform reinforces strategic transformation. Conduent introduced new AI-enabled capabilities, including real-time translation, AI-driven agent training, and voice enhancement technologies, further positioning the company as a technology-enabled customer experience provider rather than a traditional business process outsourcer.
New capabilities support higher-margin, technology-enabled growth. The platform enables real-time translation across more than 90 languages, AI-based training simulations that can reduce agent onboarding time by up to 40%, and accent smoothing and noise cancellation, all of which enhance customer interactions and improve operational efficiency.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
New capabilities combine real-time translation, AI-driven training simulation and voice enhancement technologies to improve customer satisfaction and help organizations scale service delivery globally
Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today introduced new AI-powered capabilities within its Next Generation CX Platform designed to help organizations overcome language barriers, accelerate agent readiness and improve customer interactions. The platform combines real-time translation, AI-driven training simulation and voice enhancement technologies to help clients expand into new markets, improve service quality and increase customer satisfaction.
The Next Generation CX Platform is comprised of modular solutions that leverage AI, automation and advanced analytics to optimize customer interactions, enhance agent performance, improve contact center operations and generate actionable insights. Together, these capabilities help organizations deliver more consistent, personalized and efficient customer experiences across channels and geographies.
Real-Time Translation Helps Organizations Reach More Customers
As organizations expand globally, delivering support in customers’ preferred languages can be costly and complex. Recruiting multilingual agents, relying on interpreters or routing customers through multiple touchpoints can increase costs and create friction in the customer experience.
Conduent’s AI-powered real-time translation solution helps remove those barriers by enabling seamless conversations between customers and agents across more than 90 languages. Customers receive support in their preferred language while organizations continue to leverage their existing agent workforce and subject matter expertise. The solution enables organizations to expand into new markets more quickly while maintaining a consistent, high-quality customer experience.
AI-Powered Training Accelerates Agent Readiness
Effective training is critical to delivering exceptional customer service. Conduent’s AI-driven training simulation solution enables agents to practice realistic customer scenarios and receive targeted coaching based on analysis of voice, chat and screen interactions.
The solution provides consistent training experiences across languages and globally distributed teams, helping organizations onboard agents more efficiently and maintain service quality at scale. For clients with seasonal or cyclical customer service demands, such as tax season or holiday peaks, the solution can accelerate time to proficiency by up to 40%, enabling agents to become customer-ready faster.
Voice Enhancement Improves Customer Interactions
Conduent is also introducing AI-powered accent smoothing and noise cancellation capabilities to improve the clarity and effectiveness of customer-agent conversations. By reducing communication barriers and minimizing background distractions, these technologies help improve customer engagement, increase interaction quality and support faster issue resolution. The result is a more seamless customer experience and greater confidence in every interaction.
“The future of customer experience isn’t AI or people, it’s AI and people working together,” said George Wehbe, President, Commercial Solutions at Conduent. “Our Next Generation CX Platform has arrived. It helps clients reach more customers, onboard agents faster and deliver more consistent service across languages and geographies. By combining AI-powered automation with experienced agents, we’re helping organizations improve customer satisfaction while scaling more efficiently.”
About Conduent’s Next Generation CX Platform
Conduent’s Next Generation CX Platform combines AI-powered automation, agent enablement, operational intelligence and customer insights into a flexible suite of solutions that can be deployed across the customer experience lifecycle. The platform is designed to help organizations improve customer outcomes, increase operational efficiency and adapt to evolving customer expectations while maintaining the human expertise required to resolve complex issues and build long-term loyalty.
About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com .
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Sale viewed favorably. The sale of the Public Transit business is expected to significantly narrow Conduent’s global operating footprint and streamline operations, while also exiting a capital-intensive business that required ongoing investments in hardware, infrastructure, and implementation. We believe the transaction should improve operational focus and support management’s strategy to prioritize higher-margin, technology-enabled service offerings.
Estimate revisions affect revenue, not adj. EBITDA. Despite likely downward revisions to revenue guidance following the divestiture, we do not anticipate a meaningful change to EBITDA guidance and believe the transaction improves overall business quality by increasing focus on higher-margin, technology-enabled service offerings. We have adjusted our 2026 and 2027 revenue expectations in light of the prospective sale.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Transaction Expected to Close Before the End of 2026
Conduent Continues to Fortify Its Balance Sheet
Conduent Retains Ownership of Tolling Business Segment
Conduent Incorporated (Nasdaq: CNDT), a global technology‑driven business solutions and services provider, today announced that it has entered into a definitive agreement to sell its Public Transit business, an operating unit of Conduent Transportation, to Modaxo, a global technology organization focused on moving the world’s people. The Public Transit business consists of Transit Fare Management and Fleet Management Solutions businesses.
The sale has a purchase price of $164 million. The companies expect the transaction to close before the end of 2026, subject to customary conditions and regulatory approvals.
“This transaction advances our strategy to simplify the portfolio, sharpen focus on our core businesses, and strengthen our financial foundation. Consistent with the disciplined execution outlined in Q1, it further positions Conduent to deliver sustainable, long-term value for our shareholders, clients, and employees,” said Harsha V. Agadi, Conduent President and Chief Executive Officer. “Modaxo’s technology focus makes it a strong strategic fit for the Public Transit business and those it serves. We remain committed to delivering outstanding quality and performance for our Transportation clients as we prepare for closing and ensure a seamless transition for clients and employees.”
With global operations, the Public Transit business offers fare collection systems, fleet management systems, payment and revenue management platforms, and other hardware‑enabled mobility systems.
Conduent Transportation’s remaining Tolling business provides mission‑critical technology that enables all‑electronic tolling, roadside, and back‑office processing, image review, violation enforcement and analytics. It supports more than 14 million tolling transactions per day.
Additional details of the transaction are outlined in Conduent’s 8-K filed with the U.S. Securities and Exchange Commission (SEC) today.
About Conduent Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 48,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com.
About Modaxo Modaxo is a global technology organization passionate about moving the world’s people. Working both together and independently, our collective of businesses is committed to delivering software and technology solutions that help connect people with the places they need to go for work, family, and everyday life. Learn more at Modaxo.com.
Trademarks Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
Forward-Looking Statements This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “estimate,” “expect,” “plan,” “intend,” “will,” “aim,” “should,” “could,” “forecast,” “target,” “may,” “continue to,” “endeavor,” “if,” “growing,” “projected,” “potential,” “likely,” “see,” “ahead,” “further,” “going forward,” “on the horizon,” and similar expressions (including the negative and plural forms of such words and phrases), as they relate to us, are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact included in this press release are forward-looking statements, including, but not limited to, all statements regarding the sale of Conduent’s Public Transit business, including that such transaction will be consummated and the timing of such consummation, expectations regarding our strategy to simplify our portfolio, sharpen our focus, strengthen our financial foundation, and drive value for our shareholders, clients and employees. These statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, many of which are outside of our control, that could cause actual results to differ materially from those expected or implied by such forward-looking statements contained in this press release, any exhibits to this press release and other public statements we make. Important factors and uncertainties that could cause actual results to differ materially from those in our forward-looking statements include, but are not limited to: Conduent’s ability to realize the benefits anticipated from the sale of its Public Transit business, including as a result of a delay or failure to obtain certain required regulatory approvals or the failure of any other condition to the closing of the transaction such that the closing of the transaction is delayed or does not occur; unexpected costs, liabilities or delays in connection with the proposed transaction; the significant transaction costs associated with the proposed transaction; negative effects of the announcement, pendency or consummation of the transaction on the market price of our common stock or operating results, including as a result of changes in key customer, supplier, employee or other business relationships; the risk of litigation or regulatory actions; our inability to retain and hire key personnel; the risk that certain contractual restrictions contained in the definitive transaction agreement during the pendency of the proposed transaction could adversely affect our ability to pursue business opportunities or strategic transactions; and other factors that are set forth in the “Risk Factors” and other sections of our Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the Securities and Exchange Commission. Any forward-looking statements made by us in this press release speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether because of new information, subsequent events or otherwise, except as required by law.
