Financial Summary (Form 8-K)

Financial Summary

Q3 2025

•Revenue of $1.96 billion, up 28.3 percent, or 27.0 percent in constant currency1. On a pro forma1 basis, revenue down 7.8 percent.

•GAAP net (loss) of $(760) million, or $(6.01) per share, narrowing the loss by $445 million or $3.70 per share, year-over-year, respectively.

•Adjusted1 net income of $27 million, or $0.20 per share, down $7 million or $0.05 per share, year-over-year, respectively.

•Adjusted1 operating margin of 3.3 percent, down 190 basis points year-over-year.

•Operating cash flow of $159 million, up $43 million year-over-year.

•Free cash flow1 of $131 million, up $24 million year-over-year.

NORWALK, Conn., Oct. 30, 2025 - Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2025 third-quarter results.

"While continued macro volatility and near-term uncertainties on government funding decisions weighed on transactional print this quarter, consistent page volume trends and strong IT Solutions momentum reinforce our confidence that Reinvention will deliver durable productivity and long-term value. We are accelerating that work from a solid foundation established by the Lexmark acquisition and the expansion of our IT Solutions capabilities," said Steve Bandrowczak, chief executive officer at Xerox. "The combined Xerox and Lexmark team is aligning go-to-market structure, blending complementary portfolios, and standardizing operating processes to deliver broader solutions and deeper value. Through this work, we've identified meaningful incremental value-with cost synergies now forecasted to be at least $300 million."

Strategic Milestones

Q3 2025

•Lexmark Integration ahead of plan; synergy target increases by $50M to at least $300M

•IT Solutions pro forma bookings, billings, and revenue grew double digits

•Inside Sales > 30% ESR growth year-to-date

•Announced the launch of the IJP900, re-entering the Production mid-volume inkjet market

•Paid down $226 million of debt, net as of the Lexmark acquisition close on July 1, 2025

1

Third-Quarter Key Financial Results

(in millions, except per share data)			Q3 2025						Q3 2024						B/(W) YOY						Pro Forma1 B/(W) YOY
Revenue			$1,961						$1,528						28.3% AC 27.0% CC1						(7.8)% AC
Gross Profit			$445						$495						$(50)
Gross Margin			22.7%						32.4%						(970) bps						(930) bps
RD&E %			3.8%						2.9%						(90) bps
SAG %			24.3%						24.2%						(10) bps
Pre-Tax Loss2			$(300)						$(1,087)						$787
Pre-Tax Loss Margin2			(15.3)%						(71.1)%						NM
Gross Profit - Adjusted1			$566						$495						$71
Gross Margin - Adjusted1			28.9%						32.4%						(350) bps						(380) bps
Operating Income - Adjusted1			$65						$80						$(15)
Operating Income Margin - Adjusted1			3.3%						5.2%						(190) bps						(370) bps
GAAP Diluted Loss per Share2			$(6.01)						$(9.71)						$3.70
Diluted Earnings Per Share - Adjusted1			$0.20						$0.25						$(0.05)

Third-Quarter Segment Results

(in millions)			Q3 2025						Q3 2024						B/(W) YOY						Pro Forma1 B/(W) YOY
Revenue
Print and Other3			$1,739						$1,442						20.6%						(9.8)%
IT Solutions3			226						86						162.8%						12.4%
Intersegment Elimination4			(4)						-						NM						NM
Total Revenue			$1,961						$1,528						28.3%						(7.8)%
Profit
Print and Other3			$64						$103						(37.9)%						(62.6)%
IT Solutions3			18						-						NM						NM
Corporate Other5			(17)						(23)						(26.1)%						(34.6)%
Total Profit			$65						$80						(18.8)%						(56.4)%

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(1)Refer to the "Non-GAAP Financial Measures" section of this release for a discussion of these non-GAAP measures and their reconciliation to the reported GAAP measures.

(2)Third quarter 2025 pre-tax loss and Diluted Loss per Share includes an inventory-related purchase accounting adjustment, related to the recent acquisition of Lexmark, of $102 million or $85 million after-tax, respectively, or $0.67 per diluted share. In addition, third quarter 2025 includes a tax expense charge of $467 million, or $3.68 per diluted share, related to the establishment of a valuation allowance against certain deferred tax assets to reflect their realizability. Third quarter 2024 pre-tax loss and Diluted Loss per Share include a pre-tax non-cash goodwill impairment charge of approximately $1.1 billion, and approximately $1.0 billion after-tax, respectively, or $8.16 per diluted share. In addition, the third quarter 2024 Diluted Loss per Share includes a tax expense charge of $161 million, or $1.29 per diluted share, related to the establishment of a valuation allowance against certain deferred tax assets to reflect their realizability. The tax expense charges related to the establishment of valuation allowances in the third quarter 2025 and 2024, respectively, were excluded due to their unique nature and significant impacts which are not considered part of our core operations.

(3)First quarter 2025, the Company made a change to its reportable segments - Print and Other, and IT Solutions to align with a change in how the Chief Operating Decision Maker, our Chief Executive Officer, allocates resources and assesses performance against the Company's key growth strategies. Prior to this change, the company had two reportable segments - Print and Other, and XFS. As a result of this change, prior period reportable segment results have been recast to reflect the Company's current reportable segments. See APPENDIX II - Reportable Segments.

(4)Reflects primarily IT hardware, software solutions and services, sold by the IT Solutions segment to the Print and Other segment.

(5)Corporate Other reflects certain administrative and general expenses, which primarily relate to corporate functions, and are not allocated to either of our reportable segments.

2025 Guidance

•Revenue: from 16-17% growth in constant currency1 to 13% growth in constant currency1

•Adjusted1 Operating Margin: from around 4.5% to around 3.5%

•Free cash flow1: from around $250 million to around $150 million

2

Non-GAAP Measures

This release refers to the following non-GAAP financial measures:

•Adjusted1 Gross Profit and Margin, which exclude the inventory impact related to the exit of certain Production Print manufacturing operations, included in Cost of services, maintenance and rentals, as well as fixed asset and inventory-related purchase accounting adjustments related to the recent acquisition of Lexmark.

•Adjusted1 EPS, which excludes Restructuring and related costs, net, Amortization of intangible assets, non-service retirement-related costs, and other discrete adjustments from GAAP EPS, as applicable.

•Adjusted1 operating income and margin, which exclude the EPS adjustments noted above as well as the remainder of Other expenses, net from pre-tax loss and margin.

•Constant currency (CC)1 revenue change, which excludes the effects of currency translation.

•Free cash flow1, which is operating cash flow less capital expenditures.

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(1) Refer to the "Non-GAAP Financial Measures" section of this release for a discussion of these non-GAAP measures and their reconciliation to the reported GAAP measures.

Forward-Looking Statement

This presentation and other written or oral statements made from time to time by management contain "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve certain risks and uncertainties. The words "anticipate", "believe", "estimate", "expect", "intend", "will", "would", "could", "can", "should", "targeting", "projecting", "driving", "future", "plan", "predict", "may" and similar expressions are intended to identify forward-looking statements. The Company's actual results may differ significantly from the results discussed in the forward-looking statements. These statements reflect management's current beliefs and assumptions and are subject to a number of other factors that may cause actual results to differ materially. Such factors include but are not limited to: applicable market conditions; global macroeconomic conditions, including inflation, slower growth or recession, delays or disruptions in the global supply chain, higher interest rates, and wars and other conflicts, including the current conflict between Russia and Ukraine; our ability to succeed in a competitive environment, including by developing new products and service offerings and preserving our existing products and market share as well as repositioning our business in the face of customer preference, technological, and other change, such as evolving return-to-office and hybrid working trends; failure of our customers, vendors, and logistics partners to perform their contractual obligations to us; our ability to attract, train, and retain key personnel; execution risks around our Reinvention; the risk of breaches of our security systems due to cyber, malware, or other intentional attacks that could expose us to liability, litigation, regulatory action or damage our reputation; our ability to obtain adequate pricing for our products and services and to maintain and improve our cost structure; changes in economic and political conditions, licensing requirements, and tax laws in the United States and in the foreign countries in which we do business; the risk that multi-year contracts with governmental entities could be terminated prior to the end of the contract term and that civil or criminal penalties and administrative sanctions could be imposed on us if we fail to comply with the terms of such contracts and applicable law; interest rates, cost of capital, and access to credit markets; risks related to our indebtedness; the imposition of new or incremental trade protection measures such as tariffs and import or export restrictions; funding requirements associated with our employee pension and retiree health benefit plans; changes in foreign currency exchange rates; the risk that we may be subject to new or heightened regulatory or operation risks as a result of our, or third parties,' use or anticipated use of artificial intelligence technologies; the risk that our operations and products may not comply with applicable worldwide regulatory requirements, particularly environmental regulations and directives and anti-corruption laws; the outcome of litigation and regulatory proceedings to which we may be a party; laws, regulations, international agreements and other initiatives to limit greenhouse gas emissions or relating to climate change, as well as the physical effects of climate change; our ability to successfully integrate the Lexmark business and realize the anticipated benefits thereof, including expected synergies; and other factors that are set forth from time to time in the Company's Securities and Exchange Commission filings, including the combined Annual Report on Form 10-K of Xerox Holdings and Xerox Corporation.