CONDUENT IncCNDT
CONDUENT Inc Revenue Disclosure
Revenue
Disaggregation of Revenue
The Company's contracts with customers are broadly similar in nature throughout the Company's major service offerings. The following is a description of the major service offerings:
Customer Experience Management: The Company delivers a full range of customer contact services including customer care, technical support, loyalty management, and outbound and inbound sales, handling many complex interactions and representing the brands of its clients. The Company creates better experiences across the customer lifecycle through a variety of channels including chat, email, voice and virtual agent to help customers where and how they want to engage. Through omni-channel communications, automation and analytics, as well as labor efficiencies, the Company helps its clients drive revenue growth, enable scale, and gain cost reductions and other operational efficiencies. The Company serves marquee clients across multiple sectors, including the financial services, healthcare and life sciences, logistics, technology, telecom, travel and hospitality sectors, helping to resolve complex issues for their customers with empathy and effectiveness.
Business Process as a Service ("BPaaS"): The Company helps its clients digitally transform business processes and drive efficiency, automation and scale across essential business functions. The Company streamlines client operations through its deep industry experience, understanding of its clients’ needs and the latest technology solutions to reduce costs, improve security, performance and accuracy, and enable revenue growth, while enhancing the end-user experience. The Company's portfolio of BPaaS solutions spans payment integrity, finance, accounting, and procurement, human capital, legal and compliance, and bank and lending.
Integrated Digital Solutions: The Company drives efficiencies for clients with more digitized processes across the customer and document lifecycle through automation, data analytics and AI-powered solutions. This helps to shorten decision-making time on items like claims and applications while lowering costs, reducing manual effort, improving data accuracy, providing omnichannel communications and enhancing the overall customer experience. The Company's solutions span: document and claims processing; health plan administration; scanning and digitization of mailrooms, data and documents; omnichannel digital and physical communications, including print and mail and solutions focused specifically in the pharmaceutical and banking industries.
Government Healthcare Solutions: The Company provides program administration solutions for government healthcare programs with a range of innovative solutions such as Medicaid management, provider services, Medicaid business intelligence, pharmacy benefits management, eligibility and enrollment support, customer contact services, application processing, premium billing, and case management solutions.
Government Services Solutions: The Company is a leader in government payment disbursements for federally sponsored programs including benefit card programs and payment card programs. Benefit card programs are closed loop solutions that support Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Families and Women, Infants and Children. Payment card programs are open loop solutions that support child support and Unemployment Insurance. The Company also offers a broad set of child support services predominately to State Disbursement Units, including processing and distributing payments, child support payment cards, childcare credentialing and case management, among others, to help states comply with federal standards.
Road Usage Charging and Management Services: The Company's electronic tolling, urban congestion management and mileage-based user solutions help its clients accurately assess and collect payments millions of times every day to generate revenue for infrastructure improvements. The Company's solutions include vehicle passenger detection systems, electronic toll collection, automated license plate recognition and congestion management solutions.
Transit Solutions: For train, bus, subway, metro and other transit travelers, the Company helps make journeys more personalized and convenient while increasing fare collections for authorities and agencies. The Company combines fare collection, account-based ticketing and intelligent mobility to provide clients with the added efficiency of a single point of management for all transit solutions.
Commercial Vehicles: The Company provides computer-aided dispatch/automatic vehicle location technology to help clients manage their fleet operations.
In 2025, the Company updated the presentation of disaggregated revenue by major service offering within the Commercial segment. This change had no impact on disaggregated revenue by reportable segment or the timing of revenue recognition. All prior periods presented have been revised to reflect this change.
The following table provides information about disaggregated revenue by major service offering and reportable segment and the timing of revenue recognition. Refer to Note 3 – Segment Reporting for additional information on the Company's reportable segments.
| Year Ended December 31, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Commercial: | ||||||||||||||||||||
| Customer Experience Management | $ | 515 | $ | 549 | $ | 617 | ||||||||||||||
| BPaaS | 465 | 506 | 521 | |||||||||||||||||
| Integrated Digital Solutions | 531 | 551 | 530 | |||||||||||||||||
| Total Commercial | 1,511 | 1,606 | 1,668 | |||||||||||||||||
| Government: | ||||||||||||||||||||
| Government Healthcare Solutions | 532 | 551 | 605 | |||||||||||||||||
| Government Services Solutions | 390 | 433 | 489 | |||||||||||||||||
| Total Government | 922 | 984 | 1,094 | |||||||||||||||||
| Transportation: | ||||||||||||||||||||
| Road Usage Charging & Management Solutions | 238 | 244 | 317 | |||||||||||||||||
| Transit Solutions | 371 | 341 | 233 | |||||||||||||||||
| Commercial Vehicles | — | 1 | 8 | |||||||||||||||||
| Total Transportation | 609 | 586 | 558 | |||||||||||||||||
| Other: | ||||||||||||||||||||
| Divestitures | — | 180 | 402 | |||||||||||||||||
| Total Consolidated Revenue | $ | 3,042 | $ | 3,356 | $ | 3,722 | ||||||||||||||
| Timing of Revenue Recognition: | ||||||||||||||||||||
| Point in time | $ | 113 | $ | 106 | $ | 107 | ||||||||||||||
| Over time | 2,929 | 3,250 | 3,615 | |||||||||||||||||
| Total Revenue | $ | 3,042 | $ | 3,356 | $ | 3,722 | ||||||||||||||
Contract Balances
The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are the Company’s rights to consideration for services provided when the right is conditioned on something other than passage of time (for example, meeting a milestone for the right to bill under the cost-to-cost measure of progress). Contract assets are transferred to Accounts receivable, net when the rights to consideration become unconditional. Unearned income includes payments received in advance of performance under the contract, which are realized when the associated revenue is recognized under the contract.
The following table provides information about significant movements in contract assets (current and long-term):
| (in millions) | December 31, 2025 | December 31, 2024 | ||||||||||||
| Beginning balance | $ | 135 | $ | 190 | ||||||||||
| Additional contract assets recognized | 199 | 139 | ||||||||||||
| Billed and transferred to Accounts receivable and other | (206) | (194) | ||||||||||||
Ending balance(1) | $ | 128 | $ | 135 | ||||||||||
___
(1) Of which $6 million and $3 million are included in Other long-term assets as of December 31, 2025 and 2024, respectively.
The following table provides information about significant movements in contract liability balances (current and long-term):
| (in millions) | December 31, 2025 | December 31, 2024 | ||||||||||||
| Beginning balance | $ | 155 | $ | 146 | ||||||||||
| Additional deferral of income | 207 | 276 | ||||||||||||
Revenue recognized related to deferral of income(1) | (219) | (267) | ||||||||||||
Ending balance(2) | $ | 143 | $ | 155 | ||||||||||
___
(1) Of which $94 million and $92 million were recognized during the years ended December 31, 2025 and 2024, respectively, that related to the Company's contract liabilities as of December 31, 2024 and 2023, respectively.
(2) Of which $69 million and $52 million are included in Long-term contract liabilities as of December 31, 2025 and 2024, respectively.
Transaction Price Allocated to the Remaining Performance Obligations
Estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially satisfied at December 31, 2025, was approximately $1.3 billion. The Company expects to recognize approximately 75% of this revenue over the next 2 years and the remainder thereafter.
Costs to Obtain and Fulfill a Contract
The following table shows the net book value of the capitalized costs to obtain and fulfill a contract:
| (in millions) | December 31, 2025 | December 31, 2024 | ||||||||||||
| Costs to obtain a contract | $ | 18 | $ | 19 | ||||||||||
| Costs to fulfill a contract | 105 | 99 | ||||||||||||
The amortization of costs incurred to obtain and fulfill a contract, excluding contract inducements, for the years ended December 31, 2025, 2024 and 2023 were $53 million, $40 million and $40 million, respectively. The balances at December 31, 2025 and 2024 are expected to be amortized over a weighted average remaining life of approximately 4 and 3 years, respectively.
The expected amortization expense for the next five years and thereafter for the costs to obtain and fulfill a contract is as follows (in millions):
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | |||||||||||||||||||||||||||
| $ | 41 | $ | 27 | $ | 15 | $ | 10 | $ | 5 | $ | 25 | |||||||||||||||||||||
The net book value of contract inducement costs was $5 million and $8 million as of December 31, 2025 and 2024, respectively. The net book value of costs to obtain and fulfill a contract are referred to as Deferred contract costs, net on the Company's Consolidated Balance Sheets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 27, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.