Xerox Holdings XRXDW

NASDAQ XRXDW

$0.15 -0.01 (-6.25%)

At close: Nov 5, 2026 · 4:00 PM EST

Xerox Holdings (XRXDW) stock price is $0.15, down 6.25% on the day, as of Nov 5, 2026. It has a market cap of $145.68Mn, and is classified in the Office Equipment industry (Industrials sector).

Key Stats

Market Cap145.68 Mn

P/E-0.16

FCF (Yr)96.00 Mn

ROA (Yr)-11.32

EV to EBIT9.89

Net Income (Yr)-1.03 Bn

Enterprise Value-1.92 Bn

Add ratio to table…

About

Xerox Holdings Corporation is a workplace technology company that builds and integrates services led, software enabled solutions for enterprises of all sizes. The company focuses on helping customers manage information and document workflows across digital and physical platforms, delivering a seamless, secure and sustainable experience. Xerox Holdings Corporation leverages investments in IT infrastructure, artificial intelligence, Internet of Things, intelligent document…

Xerox Holdings Corporation generates revenue primarily from the sale of equipment, supplies, software, services and financing arrangements. Its revenue streams consist of Workplace Solutions, Production Solutions, Xerox Services, Xerox Financial Solutions and IT Solutions, encompassing hardware sales, post sale service contracts, supplies, software licensing and lease financing. The company serves a diverse customer base that includes small and mid sized businesses, printing production companies, governmental entities, educational institutions and Fortune 1000 corporations across North America, Europe, Latin America, Asia Pacific, the Middle East, Africa and India.

The company operates through the following segments: Print and Other and IT Solutions.

Print and Other: This segment includes the design, development and sale of document management systems, supplies and services, financing and technology related offerings, and digital and print related software products and services, covering Workplace Solutions, Production Solutions, Xerox Services and Xerox Financial Solutions.
IT Solutions: This segment provides integrated IT infrastructure solutions, delivering business outcomes through Device Lifecycle Solutions and Managed IT Services, while also offering Network and Security Solutions and Infrastructure and Cloud Solutions supported by professional services, engineering capabilities and an extensive partner ecosystem.

Xerox Holdings Corporation holds a leading or among the leading position in the entry, mid range and high end segments of the print market, competing on technology, performance, price, quality, reliability, brand reputation, distribution, service and support. Its principal competitors in the print business include Brother, Canon, FUJIFILM Business Innovations Corp., HP Inc., Konica Minolta, Kyocera and Ricoh. The company’s competitive advantages stem from its globally recognizable brand, deep expertise in document management, innovative technology portfolio and strong service delivery capabilities. In the IT Solutions arena, Xerox Holdings Corporation competes with other integrated IT solutions providers and value added resellers, differentiating itself through the breadth of its IT offerings, the skill and quality of its service and support technicians, relationships with OEM partners and the ability to leverage its existing client base to deliver combined print and IT solutions.

Xerox Holdings Corporation serves a broad range of customers including small and mid sized businesses, printing production companies, governmental entities, educational institutions and Fortune 1000 corporations. The company does not rely on any single customer or a small group of customers, with revenue diversified across industries and geographies. While the filing does not disclose specific customer names, the described customer types illustrate the wide applicability of its workplace technology and IT solutions.

Investment Thesis

▲ Bull case

Xerox Holdings Corporation is positioned for a significant margin expansion in 2026 driven by the successful integration of Lexmark and the ongoing Reinvention initiative, which are collectively creating operational leverage that the market is underestimating. Despite reporting a 27.1% GAAP gross margin in FY 2025, the company’s adjusted gross margin stood at 29.2%, indicating that one-time purchase accounting adjustments related to the Lexmark acquisition are suppressing reported profitability. As these adjustments lapse in 2026, the underlying gross margin is expected to expand meaningfully toward the company’s long-term target of 32% or higher. This is further supported by the IT Solutions segment’s explosive growth—revenue surged 112.6% year-over-year in FY 2025—driven by the ITsavvy acquisition and higher-margin managed services, which are less cyclical than traditional print equipment sales. The segment now contributes over 10% of total revenue with improving profitability, signaling a structural shift toward higher-margin, recurring revenue streams that are less exposed to macroeconomic headwinds affecting print hardware. Management’s guidance for FY 2026 adjusted operating income of $450–$500 million implies a meaningful recovery from the $248 million adjusted operating income in FY 2025, representing nearly 100% growth at the midpoint. This improvement is not merely cyclical; it is underpinned by $335 million of forward flow benefits from Xerox Financial Services and $290 million in net interest expense that are already embedded in the cash flow model, meaning that even modest revenue stabilization could unlock substantial free cash flow generation. The market appears to be focusing on the GAAP net loss of $8.25 per share in FY 2025, which was heavily distorted by non-cash tax valuation allowances and purchase accounting effects, while overlooking the company’s adjusted diluted loss per share of just $0.60—indicating that core operations are much closer to break-even than headline numbers suggest. With the Lexmark integration progressing ahead of plan and delivering tangible synergies, combined with a pipeline larger than the prior year and improving cancellation and renewal rates, Xerox is poised to convert operational improvements into sustained earnings momentum that the market has yet to price in. Xerox Holdings Corporation

Xerox Holdings Corporation is positioned for a significant margin expansion in 2026 driven by the successful integration of Lexmark and the ongoing Reinvention initiative, which are collectively creating operational leverage that the market is underestimating. Despite reporting a 27.1% GAAP gross margin in FY 2025, the company’s adjusted gross margin stood at 29.2%, indicating that one-time purchase accounting adjustments related to the Lexmark acquisition are suppressing reported profitability. As these adjustments lapse in 2026, the underlying gross margin is expected to expand meaningfully toward the company’s long-term target of 32% or higher. This is further supported by the IT Solutions segment’s explosive growth—revenue surged 112.6% year-over-year in FY 2025—driven by the ITsavvy acquisition and higher-margin managed services, which are less cyclical than traditional print equipment sales. The segment now contributes over 10% of total revenue with improving profitability, signaling a structural shift toward higher-margin, recurring revenue streams that are less exposed to macroeconomic headwinds affecting print hardware. Management’s guidance for FY 2026 adjusted operating income of $450–$500 million implies a meaningful recovery from the $248 million adjusted operating income in FY 2025, representing nearly 100% growth at the midpoint. This improvement is not merely cyclical; it is underpinned by $335 million of forward flow benefits from Xerox Financial Services and $290 million in net interest expense that are already embedded in the cash flow model, meaning that even modest revenue stabilization could unlock substantial free cash flow generation. The market appears to be focusing on the GAAP net loss of $8.25 per share in FY 2025, which was heavily distorted by non-cash tax valuation allowances and purchase accounting effects, while overlooking the company’s adjusted diluted loss per share of just $0.60—indicating that core operations are much closer to break-even than headline numbers suggest. With the Lexmark integration progressing ahead of plan and delivering tangible synergies, combined with a pipeline larger than the prior year and improving cancellation and renewal rates, Xerox is poised to convert operational improvements into sustained earnings momentum that the market has yet to price in. Xerox Holdings Corporation

▼ Bear case

Xerox Holdings Corporation faces substantial and underappreciated risks to its financial stability, primarily stemming from its elevated leverage and the structural decline in its core print business, which management’s optimistic guidance fails to adequately address. Despite reaffirming its FY 2026 guidance, the company entered 2026 with over $4.2 billion in total debt (including $4.016 billion in long-term debt and $231 million in short-term obligations) against a cash balance of only $512 million, creating a fragile liquidity profile that leaves minimal room for error in execution or macroeconomic deterioration. The company’s reliance on forward flow benefits from Xerox Financial Services—projected to contribute $335 million to free cash flow in 2026—is particularly concerning, as this mechanism depends on the continued securitization of receivables and is sensitive to changes in asset-backed financing markets, interest rate volatility, and credit quality of underlying contracts; any disruption could severely impair cash generation. Furthermore, the Print and Other segment, which still constitutes over 89% of total revenue, reported a 29.5% decline in segment profit on a reported basis and a 40.5% decline on a pro forma basis in FY 2025, reflecting deep-seated weakness in legacy equipment sales and managed print services that acquisitions have only partially offset. While IT Solutions growth is impressive, it remains a small fraction of the business and is increasingly exposed to rising DRAM costs and tariff-related supply chain disruptions, which management acknowledged are having the “greatest impact” on this segment—yet no meaningful mitigation strategy beyond generic “actions” was detailed. The company’s adjusted operating income margin of 3.5% in FY 2025 remains far below historical averages and peer groups, and the path to restoring it to 4.9% (the FY 2024 adjusted level) relies heavily on cost-cutting and productivity gains from Reinvention, which have already been pursued for years with diminishing returns. Most critically, the market may be overlooking the fact that Xerox’s valuation is being propped up by non-GAAP adjustments that exclude $1.058 billion in goodwill impairment from 2024 and significant purchase accounting effects from Lexmark, creating a distorted view of sustainable profitability. With the CEO transition from Steve Bandrowczak to Louie Pastor occurring mid-guidance period and no clear articulation of how the new leadership will alter strategy beyond “execution discipline,” there is legitimate concern that the company lacks a credible plan to arrest secular decline in its core markets while managing a deteriorating balance sheet. Xerox Holdings Corporation

Xerox Holdings Corporation faces substantial and underappreciated risks to its financial stability, primarily stemming from its elevated leverage and the structural decline in its core print business, which management’s optimistic guidance fails to adequately address. Despite reaffirming its FY 2026 guidance, the company entered 2026 with over $4.2 billion in total debt (including $4.016 billion in long-term debt and $231 million in short-term obligations) against a cash balance of only $512 million, creating a fragile liquidity profile that leaves minimal room for error in execution or macroeconomic deterioration. The company’s reliance on forward flow benefits from Xerox Financial Services—projected to contribute $335 million to free cash flow in 2026—is particularly concerning, as this mechanism depends on the continued securitization of receivables and is sensitive to changes in asset-backed financing markets, interest rate volatility, and credit quality of underlying contracts; any disruption could severely impair cash generation. Furthermore, the Print and Other segment, which still constitutes over 89% of total revenue, reported a 29.5% decline in segment profit on a reported basis and a 40.5% decline on a pro forma basis in FY 2025, reflecting deep-seated weakness in legacy equipment sales and managed print services that acquisitions have only partially offset. While IT Solutions growth is impressive, it remains a small fraction of the business and is increasingly exposed to rising DRAM costs and tariff-related supply chain disruptions, which management acknowledged are having the “greatest impact” on this segment—yet no meaningful mitigation strategy beyond generic “actions” was detailed. The company’s adjusted operating income margin of 3.5% in FY 2025 remains far below historical averages and peer groups, and the path to restoring it to 4.9% (the FY 2024 adjusted level) relies heavily on cost-cutting and productivity gains from Reinvention, which have already been pursued for years with diminishing returns. Most critically, the market may be overlooking the fact that Xerox’s valuation is being propped up by non-GAAP adjustments that exclude $1.058 billion in goodwill impairment from 2024 and significant purchase accounting effects from Lexmark, creating a distorted view of sustainable profitability. With the CEO transition from Steve Bandrowczak to Louie Pastor occurring mid-guidance period and no clear articulation of how the new leadership will alter strategy beyond “execution discipline,” there is legitimate concern that the company lacks a credible plan to arrest secular decline in its core markets while managing a deteriorating balance sheet. Xerox Holdings Corporation

Peer percentiles

How Xerox Holdings ranks

Ranked against the 131 companies in Business Services58 metrics · as of Nov 6, 2026

Valuation

12 metrics · Lower multiples rank higher; a negative multiple ranks last

P/ENegative earnings −0.16xMedian 21.1x 5^th
P/FCF 2.28xMedian 15.3x 98^th
P/Operating cash flowImplausibly low multiple 0.67xMedian 11.9x Not meaningful —
P/S 0.02xMedian 0.90x 99^th
P/B 0.44xMedian 2.27x 84^th
P/Tangible bookNegative tangible equity −0.28xMedian 3.04x Not meaningful —
EV/EBITDA 19.6xMedian 11.7x 37^th
EV/EBITNegative EBIT −19.7xMedian 17.6x 22^nd
EV/Revenue 0.51xMedian 1.17x 80^th
EV/FCF 59.6xMedian 17.8x 40^th
EV/Operating cash flow 17.6xMedian 14.4x 54^th
PEG (3Y EPS CAGR)Negative earnings 0.00Median 0.88 Not meaningful —

Growth

14 metrics · Year-on-year growth and three-year compound annual growth

Revenue growth (1Y) 18.9%Median 5.6% 87^th
Revenue CAGR (3Y) 1.5%Median 4.1% 40^th
Gross profit growth (1Y) 9.9%Median 4.8% 64^th
Gross profit CAGR (3Y) −5.3%Median 4.0% 19^th
Operating income growth (1Y) 78.8%Median 8.8% 88^th
Operating income CAGR (3Y) −89.9%Median 2.7% 6^th
Net income growth (1Y) 35.0%Median 8.0% 72^nd
Net income CAGR (3Y) −54.5%Median 3.7% 11^th
EPS growth (1Y) 35.5%Median 14.2% 68^th
EPS CAGR (3Y) −65.6%Median 7.3% 9^th
Operating cash flow growth (1Y) −40.9%Median 4.4% 18^th
Operating cash flow CAGR (3Y) −14.8%Median 7.3% 23^rd
Free cash flow growth (1Y) −77.1%Median 6.7% 15^th
Free cash flow CAGR (3Y) −38.9%Median 5.5% 14^th

Profitability

14 metrics · Margins, returns on capital and the quality of earnings

Gross margin 28.9%Median 32.0% 43^rd
EBITDA margin 2.6%Median 9.5% 27^th
Operating margin −2.6%Median 4.3% 28^th
Pretax margin −5.2%Median 3.6% 24^th
Net margin −12.4%Median 2.7% 13^th
FCF margin 0.9%Median 4.8% 30^th
Operating cash flow margin 2.9%Median 7.6% 29^th
Return on equity −292%Median 10.3% 3^rd
Return on assets −9.4%Median 2.8% 25^th
Return on invested capital −4.2%Median 7.0% 17^th
Return on capital employed −2.9%Median 8.7% 24^th
Asset turnover 0.76xMedian 1.19x 26^th
Cash conversion (OCF / net income)Net income is not positive −0.23xMedian 1.47x Not meaningful —
Stock comp / revenue 0.5%Median 1.1% 79^th

Financial Health

11 metrics · Leverage, liquidity and solvency; less debt ranks higher

Debt / assets 42.8%Median 30.2% 32^nd
Debt / equity 12.6xMedian 0.76x 3^rd
Net debt / EBITDA 18.8xMedian 2.16x 4^th
Debt / FCF 65.1xMedian 4.09x 4^th
Liabilities / assets 96.6%Median 61.0% 20^th
Equity / assets 3.4%Median 39.0% 20^th
Interest coverage −0.64xMedian 2.64x 26^th
Current ratio 1.18xMedian 1.53x 33^rd
Quick ratio 0.59xMedian 1.27x 22^nd
Cash ratio 0.16xMedian 0.24x 36^th
Altman Z-score 1.12Median 2.80 24^th

Peer group

Peer Comparison

Companies in the Office Equipment

View all peers

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	ACN	Accenture plc	177.38 Bn	19.42	2.39	10.11 Bn
2	CTAS	Cintas Corp	90.45 Bn	43.97	7.82	2.43 Bn
3	IRM	Iron Mountain Inc	31.36 Bn	68.44	4.02	17.97 Bn
4	ROL	Rollins Inc	18.54 Bn	35.30	4.65	0.73 Bn
5	APG	APi Group Corp	17.15 Bn	-75.57	1.93	3.57 Bn
6	ULS	UL Solutions Inc.	15.39 Bn	30.00	4.83	0.76 Bn
7	ARMK	Aramark	13.25 Bn	34.61	0.67	6.13 Bn
8	XRX	Xerox Holdings Corp	0.15 Bn	-0.16	0.02	4.17 Bn

Xerox Holdings XRXDW

About

Investment Thesis

How Xerox Holdings ranks

Valuation

Growth

Profitability

Financial Health

Shareholder Returns

Peer Comparison

Create an account

Sign In

Reset Password