Xerox Releases Second-Quarter Results

NORWALK, Conn., July 26, 2022 — Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2022 second-quarter results.

“While we mourn the passing of our leader and friend, John Visentin, we continue to be guided by – and benefit from – the four strategic initiatives he articulated for returning Xerox to long-term, sustainable growth,” said Xerox interim CEO Steve Bandrowczak. “Our revenue grew in constant currency in the second quarter, driven by improving demand for our products and services and the realization of pricing growth. Inflation and supply chain challenges affected margins this quarter, but we expect sequential margin improvement throughout the remainder of the year as we realize further price increases, Project Own It savings, and benefits from a more favorable supply chainenvironment. Strong demand and line of sight to margin improvement give us confidence to reiterate full-year guidance.”

Second-Quarter Key Financial Results 


(in millions, except per share data)


Q2 2022


Q2 2021

B/(W) YOY% Change B/(W) YOY








(2.6) % AC

1.1 % CC1

Gross Margin31.9%35.6%(370) bps 
RD&E %4.8%4.4%(40) bps 
SAG %26.3%24.2%(210) bps 
Pre-Tax (Loss) Income$(5)$99$(104)NM
Pre-Tax (Loss) Income Margin(0.3)%5.5%(580) bps 
Operating Income – Adjusted1$35$126$(91)(72.2)%
Operating Income Margin – Adjusted12.0%7.0%(500) bps 
GAAP Diluted (Loss) Earnings per Share$(0.05)$0.46$(0.51)NM
Diluted Earnings Per Share – Adjusted1$0.13$0.47$(0.34)(72.3)%

Beginning in the first quarter of 2022, the Company made a change to its reportable segments from one reportable segment to two reportable segments – Print and Other, and Financing

Second-Quarter Segment Results


(in millions)


Q2 2022


Q2 2021

B/(W) YOY% Change B/(W) YOY
Print and Other$1,633$1,672$(39)(2.3)%
Financing (FITTLE)151177(26)(14.7)%
Intersegment Elimination1(37)(56)19(33.9)%
Total Revenue$1,747$1,793$(46)(2.6)%
Print and Other$18$111$(93)(83.8)%
Financing (FITTLE)1715213.3%
Total Profit$35$126$(91)(72.2)%


(1) Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other Segment for the lease of Xerox equipment placements. 

2022 Guidance

We are maintaining our revenue and free cash flow guidance for 2022. Our guidance assumes supply chain disruption will begin to subside and return-to-office trends will continue to improve throughout the second half of the year. Our free cash flow guidance excludes a one-time payment associated with a product supply contract termination charge.

  • Revenue of at least $7.1 billion in actual
  • Free cash flow of at least $400
  • Return at least 50% of free cash flow to

Non-GAAP Measures

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

  • Adjusted 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
  • Adjusted operating income and margin, which exclude the EPS adjustments noted above as well as the remainder of Other expenses, net from pre-tax (loss) income and margin.
  • Constant currency (CC) revenue change, which excludes the effects of currency
  • Free cash flow, which is operating cash flow less capital

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