In the second quarter of 2025, Xerox Holdings Corporation faced significant challenges reflected in a net loss of $109 million, translating to an EPS of -$0.87. The company's revenue of $1.576 billion showed a slight quarter-over-quarter increase of 8.17%, but this was overshadowed by a year-over-year decline of 0.13%. Management attributed the ongoing pressure to intense industry competition and shifts in customer demand, particularly in managed print services. Despite these hurdles, they highlighted a strong performance in digital services and workflow automation, underscoring a strategic pivot towards these higher-margin areas.
Management reflected on the critical need to streamline operations and improve margins through cost discipline. Although gross profit increased significantly year-on-year by 110.77%, operating income took a steep dive into negative territory, indicating severe operational challenges. The reduced net income of -$109 million, representing a staggering 705.56% decline year-over-year, has raised questions about the company's short-term viability despite their long-term growth strategies.