Xerox Holdings Corp. (NASDAQ: XRX) reported results for the fourth quarter of fiscal year 2025 on Thursday, showing higher revenue but deeper losses compared with the year-ago period. Revenue for Q4 2025 was $2.03 billion, up 25.7% from $1.61 billion in the fourth quarter of fiscal 2024. The company reported a GAAP net loss of $73 million, or $0.60 per share, compared with a net loss of $21 million, or $0.20 per share, in the year-ago quarter. Adjusted net loss was $8 million, or $0.10 per share, versus adjusted net income of $49 million, or $0.36 per share, in the prior year.
Financial Results
Revenue growth in the quarter reflected higher sales across major business units, with Xerox reporting a significant year-over-year swing. On a pro forma basis that adjusts for acquisitions, revenue was down 9.0% compared with adjustments for the prior year. Adjusted operating margin for the quarter was 5.0%, 140 basis points lower than a year earlier. Operating cash flow declined to $208 million and free cash flow to $184 million, both lower than the prior-year period.
For the full fiscal year 2025, Xerox reported revenue of $7.02 billion, up 12.9% from $6.22 billion for FY2024. The company posted a GAAP net loss of $1.03 billion, or $8.25 per share, compared with a larger loss in the prior year that included substantial goodwill impairment charges. Adjusted net loss for FY2025 was $62 million, or $0.60 per share. Free cash flow for the year came in at $133 million, down from $467 million in FY2024.
Business Performance
Xerox’s core print and services business continued to generate the majority of revenue. While overall revenue increased year-over-year, adjusted gross and operating margins narrowed. IT Solutions and Digital Services showed growth contributions, driven in part by the integration of recent acquisitions and expanded service offerings. Segment profitability trends reflected ongoing pressure on cost structure and mix effects.
Management Commentary
Steve Bandrowczak, chief executive officer of Xerox, said demand remained uneven across product categories and highlighted operational efficiency initiatives. He noted the company was focused on simplifying operations and expanding its technology solutions portfolio and that recent strategic shifts were beginning to create momentum in services and recurring revenue streams.
Guidance & Outlook
Xerox provided outlook commentary tied to fiscal year 2026, indicating expectations for continued revenue growth and improved profitability. The company reaffirmed its strategy to expand higher-margin services and solutions while optimizing cost structures. Management reiterated that macroeconomic conditions and enterprise spending trends would continue to shape demand for office and IT services.
Market Reaction & Context
Following the earnings release, Xerox shares traded lower in extended trading, reflecting investor focus on profitability challenges despite top-line growth. The mixed results illustrate broader pressures across the technology and office equipment sector, where companies balance legacy print revenues with investments in digital solutions and services.
Company Background
Xerox Holdings Corp. is a global document technology and services company headquartered in Norwalk, Connecticut. The company’s offerings include multifunction printers, production print systems, managed print services, IT solutions, and related software and support services for businesses worldwide.
