BLUE BELL, PA — Unisys Corporation (NYSE: UIS) reported a third-quarter 2025 net loss of $308.9 million, driven largely by non-cash pension and goodwill charges, as revenue fell amid weaker license renewals. Despite the setback, the company reaffirmed its full-year non-GAAP operating profit margin guidance of 8% to 9% and highlighted progress in its pension de-risking strategy.
Revenue for the quarter totaled $460.2 million, down 7.4% year over year—or 9.0% in constant currency—mainly due to the timing of software license renewals. Excluding License and Support (Ex-L&S) revenue, sales fell 3.9% to $377.2 million. The company’s gross profit margin declined to 25.5% from 29.2% a year earlier, while adjusted EBITDA dropped to $48.2 million from $77 million in the prior-year quarter.
Operating results were heavily impacted by a $55 million goodwill impairment and a $227.7 million pension settlement loss tied to a group annuity purchase. That transaction transferred $320 million in projected U.S. defined benefit pension liabilities to a third-party insurer, marking the first phase of Unisys’ plan to remove roughly $600 million in pension obligations by the end of 2026.
“We have enhanced the value of our License & Support platforms, resulting in strong client retention and consumption,” said Michael Thomson, Unisys president and CEO. “We are pleased with the continued strength of our L&S solutions, which provide a powerful cash generation engine, key to implementing our pension removal strategy. In Ex-L&S, despite revenue growth headwinds, we are seeing momentum in our newer AI solutions that align with our clients’ priorities.”
Chief Financial Officer Deb McCann emphasized operational discipline, noting that Unisys remains on track to meet its profitability targets. “Our steady focus on operational efficiency is allowing us to deliver on our profit and free cash flow priorities,” she said. “Our liquidity remains strong, with an undrawn revolver and no major debt maturity until 2031.”
Segment results reflected broad pressure across the company’s business lines. Digital Workplace Solutions revenue fell 4.3%, Cloud, Applications & Infrastructure declined 4.8%, and Enterprise Computing Solutions dropped 13.5%, primarily due to license renewal timing. Ex-L&S gross margins improved slightly, rising 70 basis points year over year.
Unisys ended the quarter with $321.9 million in cash and cash equivalents, up 7% from the prior quarter. Free cash flow reached $19.9 million, a year-over-year increase from $14.2 million. The company also raised total contract value (TCV) by 15% compared with the third quarter of 2024, reflecting renewed client activity despite near-term revenue softness.
For the full year, Unisys revised its constant-currency revenue forecast downward to a decline of 4.0% to 3.0%, but reaffirmed its operating margin outlook of 8% to 9%. Executives said continued investment in artificial intelligence solutions and operational efficiency should support gradual improvement in profitability.
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