Xerox 10-Q Details $1.0B Q3 Loss, $959M Goodwill Writedown and Dividend Suspension
XRX is trading near its 52-week low of $1.06 (5.6% above the low) on elevated volume (2.3× avg).
Summary
Xerox's Q3 10-Q shows a $1,015 million net loss on a $959 million non-cash goodwill impairment, negative nine-month operating cash flow of $77 million, and a dividend suspension effective January 2027 to save about $28 million a year.
Key Events · Earnings and Guidance · XRX
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Q3 Net Loss of $1.0 Billion
Third-quarter 2026 revenue was $1,868 million, down 4.7% year over year, producing a pre-tax loss of $1,006 million and a net loss of $1,015 million, or $(7.73) per diluted share.
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$959M Non-Cash Goodwill Impairment
A $959 million pre-tax ($955 million after-tax) impairment of the Print and Other reporting unit drove the loss; adjusted net income excluding it was just $7 million, or $0.02 per diluted share.
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Cash Flow Guidance Cut
Nine-month operating cash flow was negative $77 million, and full-year operating cash flow is now guided to $145-$195 million versus roughly $340 million previously, on lower profitability and weaker finance receivable sales.
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Dividends Suspended From January 2027
The board suspended common and Series A preferred dividends effective January 2027, expected to conserve about $28 million of cash annually; preferred dividends continue to accumulate.
Analysis · XRX · Technology
The 10-Q confirms the scale of the damage first flagged in the October 29 8-K: a $1,015 million quarterly net loss driven almost entirely by a $959 million non-cash goodwill impairment on the Print and Other unit, leaving reported shareholders' equity at a $677 million deficit. Strip out the writedown and adjusted net income was just $7 million, so the underlying business is barely profitable while nine-month operating cash flow ran negative $77 million. Management now expects full-year operating cash flow of only $145-$195 million versus roughly $340 million previously, and the board suspended common and preferred dividends from January 2027 to conserve about $28 million a year. Liquidity rests on $412 million of cash and roughly $225 million of net ABL availability, against $4,220 million of total debt, with the ~$174 million note exchange into 10.25% secured notes plus ~3.9 million shares due to close around November 13, 2026.
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At the time of this filing, XRX was trading at $1.12 on NASDAQ in the Technology sector, with a market capitalization of approximately $145.8M. The 52-week trading range was $1.06 to $3.78. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.