Conduent Incorporated

Greetings. Welcome to Conduence second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to David Chen, VP of Investor Relations. Thank you. You may begin.

Thank you, operator, and thanks everyone for joining us today to discuss Conduence second quarter 2025 earnings. I am joined today by Cliff Skelton, our president and CEO, and Giles Goodburn, our CFO. This call is being webcast, and a copy of the slides used during this call, as well as the press release, were filed with the SEC this morning on Form 8K. This information, as well as the detailed financial metrics package, are available on the Investor Relations section of the Conduence website. During this call, we may make statements that are forward-looking. These forward-looking statements reflect management's current beliefs, assumptions, and expectations, and are subject to a number of factors that may cause actual results to differ materially from these statements. Information concerning these factors is included in Conduence annual report on Form 10K filed with the SEC. We do not intend to update these forward-looking statements as a result of new information or future events or developments, except as required by law. The information presented today includes non-GAAP financial measures. Because these measures are not calculated in accordance with U.S. GAAP, they should be viewed in addition to and not as a substitute for the company's reported results. For more information regarding definitions of our non-GAAP measures and how we use them, as well as the limitations to their usefulness for comparative purposes, please see our press release. And now, I would like to turn the call over to Cliff.

Thank you, David, and thank you everyone for joining Conduence Q2 2025 earnings call. As always, I'll preamble the quarter, turn it over to Jollis for the detailed numbers, and I'll close with some comments about the market, changing landscape in public and commercial sectors, and some strategic thinking regarding our optimistic view of the rest of the year and into 2026. Q2 was by and large right down the middle of the fairway for us. Revenue for the quarter was slightly up sequentially at $754 million in line with our expectations, with another solid quarter of adjusted EBITDA at $37 million and .9% of adjusted EBITDA margin, exceeding expectations up -on-year and flat sequentially in a quarter usually representing the low point in the year. Before Jollis gets into the detailed financials, let me just confirm that our portfolio rationalization efforts remain on track. Without getting too explicit, I can say that work is definitely underway. We feel good about our sales performance, especially in the public sector with an overall ACV of $150 million, up -over-year and -over-quarter. Q3 will be an important quarter for us in sales, and we're expecting improved performance from our commercial segment as some deals move to the right from Q2. In the quarter, we signed eight new logos, expanded relationships with 22 existing clients, and renewed several contracts, including the Direct Express contract, supporting the federal government as a sub to a leading financial institution. The other good news here is that we're seeing increased activity and sales opportunity in our transportation businesses, both tolling and transit, and our pipeline is strong in government as well. We continue to roll out AI initiatives, encompassing the gamut, ranging from the obvious, such as telecom enhancements and language smoothing, to fraud reduction enhancements, to item processing workflow improvements, to end user simplification process improvements, and efficiency improvements. We remain convinced that while AI and GenAI are obviously here to stay and will continue to morph, in the BPO space, its primary focus is on using AI as an enhancement, not a replacement. As was said by a prominent AI CEO recently, AI isn't seen as a replacement for people, but more as a competitive advantage for those individuals who utilize AI. He went on to say more people are going to be able to do more things. That's effectively what we're seeing. AI is opening doors to enable us to do more things at higher quality with fewer mistakes, potentially driving margin enhancements with a better end user experience. Technology is definitely moving faster than risk tolerance in some areas, but we will continue this journey with open minds for sure. Finally, as part of our orderly sequencing, we elected a new chairman of the board, Harsha Aghadi. Harsha joins the board and the chairman role at a strategic point in time, where his experience will be put to good use. We're certainly thankful for Scott Leteer's leadership over the last four years, as he transitions from chairman to leading the audit committee, among other roles on our board. Regarding the rest of the year, Giles will be a little more explicit, but we're intently focused on meeting previously mentioned expectations. As you know, in this business, revenue can be a bit lumpy, however, margin is more controllable. We expect to hit the high end of EBITDA and margin and expect to meet revenue expectations. Let me turn over the dialogue to take you through the detailed financials. Giles? Thanks,