Fourth Quarter 2025 (4Q25) Highlights:
Revenue of $574.5 million, up 5.3% year over year (YoY) and 2.7% in constant currency(1)
Operating profit margin of 13.3%, up 440 bps YoY, non-GAAP operating profit(6) margin of 18.0 %, up 640 bps YoY
Cash provided by operations of $104.9 million compared to $76.6 million in 4Q24; pre-pension and postretirement free cash flow(10) of $112.9 million compared to $61.8 million in 4Q24
Full Year 2025 Highlights:
Revenue of $2.0 billion, down 2.9% YoY and 3.3% in constant currency
Operating profit margin of 4.0%, down 80 bps YoY, non-GAAP operating profit margin of 9.1%, up 30 bps YoY
Cash used for operations of $140.0 million (including a discretionary pension contribution of $250 million) compared to cash provided by operations of $135.1 million in 2024; pre-pension and postretirement free cash flow of $127.7 million compared to $82.4 million in 2024
Cash and cash equivalents at December 31, 2025, were $413.9 million compared with $376.5 million at December 31, 2024
Defined benefit pension plans funding deficit status of $448.5 million compared to funding deficit of $750.2 million in 2024, improved by $301.7 million
BLUE BELL, Pa., Feb. 24, 2026 /PRNewswire/ -- Unisys Corporation (NYSE:UIS) reported financial results for the fourth quarter and full year 2025.
"Our 2025 results reflect our ongoing commitment to a consistent strategy that balances our investment in solution development with our financial objectives of advancing profitability, free cash flow, and removal of pension liabilities," said Michael Thomson, Unisys CEO and President. "We believe we are effectively leveraging technology in our delivery capabilities and building AI-enabled solution frameworks to increase the scale and pace of value realization for our clients. This allows Unisys to show up differently in the market, and we see increasing recognition for our capabilities across our clients, partners, and industry analysts as we work towards accelerating revenue growth."
Unisys Chief Financial Officer Deb McCann said, "We were pleased to deliver another year of solid profitability improvement, exceeding the high-end of our upwardly revised non-GAAP operating margin guidance. Our License & Support ecosystem has continued to outperform our financial expectations, with consumption continuing to benefit from client adoption of AI. We ended the year with a strong liquidity position driven by increasing cash balances, an undrawn credit facility and no major near-term debt maturities."
Financial Highlights
Please refer to the accompanying financial tables for a reconciliation of the GAAP to non-GAAP measures presented except for financial guidance since such a reconciliation is not practicable without unreasonable effort.
(In millions, except numbers presented as percentages)
4Q25
4Q24
FY25
FY24
Revenue
$574.5
$545.4
$1,950.1
$2,008.4
YoY revenue change
5.3 %
(2.9) %
YoY revenue change in constant currency
2.7 %
(3.3) %
Excluding License and Support (Ex-L&S)(13) revenue
$388.1
$393.7
$1,522.0
$1,576.9
YoY revenue change
(1.4) %
(3.5) %
YoY revenue change in constant currency
(3.9) %
(3.9) %
License and Support(12) revenue
$186.4
$151.7
$428.1
$431.5
YoY revenue change
22.9 %
(0.8) %
YoY revenue change in constant currency
19.8 %
(1.2) %
Gross profit
$194.6
$175.0
$549.3
$585.9
Gross profit percent
33.9 %
32.1 %
28.2 %
29.2 %
Ex-L&S gross profit
$51.3
$61.9
$255.4
$277.6
Ex-L&S gross profit percent
13.2 %
15.7 %
16.8 %
17.6 %
Operating profit
$76.6
$48.6
$78.5
$97.4
Operating profit percent
13.3 %
8.9 %
4.0 %
4.8 %
Non-GAAP operating profit
$103.4
$63.3
$176.9
$176.4
Non-GAAP operating profit percent
18.0 %
11.6 %
9.1 %
8.8 %
Net income (loss) attributable to Unisys Corporation
$18.7
$30.0
($339.8)
($193.4)
Non-GAAP net income attributable to Unisys Corporation(8)
$63.4
$26.6
$68.3
$44.0
EBITDA(7)
$79.5
$90.3
($144.3)
$39.8
Adjusted EBITDA(7)
$129.0
$91.4
$278.8
$292.1
Adjusted EBITDA as a percentage of revenue
22.5 %
16.8 %
14.3 %
14.5 %
Fourth Quarter 2025 Results
Revenue increased 5.3% YoY, a 2.7% increase in constant currency, primarily driven by the timing of software license renewals. Ex-L&S revenue declined 1.4% YoY, a 3.9% decrease in constant currency, primarily driven by lower volume with clients in the Digital Workplace Solutions (DWS) and Cloud, Applications & Infrastructure Solutions (CA&I) segments.
Gross profit margin increased 180 bps YoY, primarily driven by the timing of software license renewals. Ex-L&S gross profit margin decreased 250 bps YoY, primarily due to 110 bps in higher cost reduction charges and an additional 70 bps from costs associated with a mutually agreed-upon client contract termination.
Full Year 2025
Revenue decreased 2.9% YoY, a 3.3% decrease in constant currency, primarily driven by lower volume with clients in the DWS and CA&I segments. Gross profit margin decreased 100 bps YoY, primarily driven by a higher proportion of hardware revenue within the Enterprise Computing Solutions (ECS) segment.
Ex-L&S revenue decreased 3.5%, a 3.9% decrease in constant currency, and Ex-L&S gross profit margin decreased 80 bps YoY. These declines were primarily driven by lower volume with clients in the DWS and CA&I segments.
Operating profit included non-cash goodwill impairment charges of $55.0 million and $39.1 million, in 2025 and 2024, respectively.
In 2025, net loss attributable to Unisys Corporation included a non-cash pension settlement loss of $227.7 million net of tax as a result of a group annuity purchase contract to transfer approximately $320 million of projected U.S. defined benefit pension liabilities to a third-party insurer, funded with plan assets.
Financial Highlights by Segment
(In millions, except numbers presented as percentages)
4Q25
4Q24
FY25
FY24
Digital Workplace Solutions (DWS):
Revenue
$126.4
$128.2
$508.4
$523.5
YoY revenue change
(1.4) %
(2.9) %
YoY revenue change in constant currency
(3.7) %
(3.1) %
Gross profit
$13.3
$20.4
$73.9
$82.1
Gross profit percent
10.5 %
15.9 %
14.5 %
15.7 %
Cloud, Applications & Infrastructure Solutions (CA&I):
Revenue
$190.6
$192.7
$732.8
$764.4
YoY revenue change
(1.1) %
(4.1) %
YoY revenue change in constant currency
(4.1) %
(4.8) %
Gross profit
$39.4
$35.9
$147.8
$149.5
Gross profit percent
20.7 %
18.6 %
20.2 %
19.6 %
Enterprise Computing Solutions (ECS):
Revenue
$236.8
$203.5
$628.9
$627.5
YoY revenue change
16.4 %
0.2 %
YoY revenue change in constant currency
14.0 %
0.4 %
Gross profit
$156.0
$128.7
$349.2
$364.1
Gross profit percent
65.9 %
63.2 %
55.5 %
58.0 %
Fourth Quarter 2025 Segment Results
DWS revenue declined 1.4% YoY, a 3.7% decline in constant currency. DWS gross profit margin was 10.5%, a decrease of 540 bps YoY. These declines were primarily driven by lower volume with clients. Additionally, the DWS gross profit margin was negatively impacted by 200 bps associated with costs related to a mutually agreed-upon client contract termination.
CA&I revenue declined 1.1% YoY, a 4.1% decline in constant currency, primarily driven by lower volume with clients. CA&I gross profit margin was 20.7%, an increase of 210 bps YoY, primarily driven by labor cost savings initiatives.
ECS revenue increased 16.4% YoY, a 14.0% increase in constant currency. ECS gross profit margin was 65.9%, an increase of 270 bps YoY. These increases were primarily driven by the timing of software license renewals.
Full Year 2025
DWS revenue decreased 2.9%YoY, a 3.1% decrease in constant currency. DWS gross profit margin was 14.5%, a decrease of 120 bps YoY. These declines were primarily driven by lower volume with clients.
CA&I revenue decreased 4.1% YoY, a 4.8% decrease in constant currency, primarily driven by lower volume with clients in the public sector. CA&I gross profit margin was 20.2%, an increase of 60 bps YoY, primarily driven by labor cost savings initiatives.
ECS revenue remained relatively flat YoY and in constant currency. ECS gross profit margin was 55.5%, a decrease of 250 bps YoY, primarily driven by a higher proportion of hardware revenue, which has a lower gross margin profile relative to license renewals.
Balance Sheet and Cash Flow
(In millions)
FY25
FY24
Cash and cash equivalents
$413.9
$376.5
Cash and cash equivalents increased $37.4 million YoY.
At December 31, 2025, the defined benefit pension plans had a funding deficit of $448.5 million, a decrease of $301.7 million YoY. This reduction is primarily due to $343.7 million in cash contributions, including a $250 million discretionary contribution to the company's U.S. defined benefit pension plans, which was funded with approximately $200 million from the net proceeds of the 10.625% Senior Secured Notes due 2031 and $50 million from cash on hand.
(In millions)
4Q25
4Q24
FY25
FY24
Cash provided by (used for) operations
$104.9
$76.6
($140.0)
$135.1
Free cash flow(9)
$85.8
$55.7
($217.6)
$55.3
Pre-pension and postretirement free cash flow
$112.9
$61.8
$127.7
$82.4
Adjusted free cash flow(11)
$115.9
$67.0
$125.1
$104.6
Fourth quarter 2025 free cash flow increased by $30.1 million YoY, primarily driven by lower net interest payments and increased license renewals collections.
Full-year 2025 free cash flow declined by $272.9 million YoY, primarily resulting from cash contributions, including the discretionary pension contribution discussed above, partially offset by the favorable settlement of a legal matter and changes in working capital.
Full-year 2025 pre-pension and postretirement free cash flow increased by $45.3 million YoY, primarily due to the favorable settlement of a legal matter and changes in working capital.
Other Metrics
(In millions, except numbers presented as percentages)
4Q25
4Q24
YoY Change
QoQ Change*
Total Contract Value (TCV)(3)
New Business(5)
$ 136
$ 218
(38) %
10 %
Ex-L&S Renewals
781
312
150 %
240 %
L&S Renewals
232
222
5 %
280 %
Total company
$ 1,149
$ 752
53 %
177 %
FY25
FY24
TCV
New Business(i)
$ 491
$ 791
(38) %
Ex-L&S Renewals
1,353
633
114 %
L&S Renewals
363
522
(30) %
Total company
$ 2,207
$ 1,946
13 %
*
QoQ - quarter over quarter
(i)
For the full year 2025, New Business TCV includes a mutually agreed-upon client termination adjustment of $228 million that was previously recorded in the first quarter of 2025. Accordingly, adjusted prior period amounts for New Business TCV are $109 million for the first quarter of 2025, $231 million for the second quarter year-to-date 2025, and $355 million for the third quarter year-to-date 2025.
In the fourth quarter and full year of 2025, the increase in TCV was primarily driven by a higher concentration of Ex-L&S renewals, partially offset by a decrease in New Business. The decrease in New Business reflects elongated sales cycles with prospective clients.
Backlog(2) was $3.16 billion for the fourth quarter of 2025 compared to $2.84 billion for the fourth quarter of 2024. The increase was primarily due to Ex-L&S renewal signings.
2026 Financial Guidance
The company has issued full-year 2026 revenue growth and profitability guidance:
Guidance
Revenue growth in constant currency
(6.5)% to (4.5)%
Non-GAAP operating profit margin
9.0% to 11.0%
Constant currency revenue guidance translates to reported revenue growth of (3.8)% to (1.8)% based on recent exchange rates as February 1, 2026, and assumes L&S revenue of approximately $415 million and Ex- L&S constant currency revenue growth of (7.0)% to (4.5)%.
2026 Annual Stockholder Meeting
Unisys' 2026 Annual Meeting of Stockholders will be held virtually on April 30, 2026, at 8 a.m. Eastern Time.
Conference Call
Unisys will hold a conference call with the financial community on Wednesday, February 25 at 8 a.m. Eastern Time to discuss the results of the fourth quarter and full-year 2025 and financial guidance for 2026.
The live, listen-only webcast, as well as the accompanying presentation materials, can be accessed on the Unisys Investor Website at www.unisys.com/investor. In addition, domestic callers can dial 1-844-695-5518 and international callers can dial 1-412-902-6749 and provide the following conference passcode: Unisys Corporation Call.
A webcast replay will be available on the Unisys Investor Website shortly following the conference call. A replay will also be available by dialing 1-855-669-9658 for domestic callers or 1-412-317-0088 for international callers and entering access code 3069514 from two hours after the end of the call until March 11, 2026.
(1) Constant currency, A significant amount of the company's revenue is derived from international operations. As a result, the company's revenue has been and will continue to be affected by changes in the U.S. dollar against major international currencies. The company refers to revenue growth rates in constant currency or on a constant currency basis so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates to facilitate comparisons of the company's business performance from one period to another. Constant currency is calculated by retranslating current and prior-period revenue at a consistent exchange rate rather than the actual exchange rates in effect during the respective periods.
(2) Backlog – Represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or performed. The company believes that actual revenue reflects the most relevant measure necessary to understand the company's results of operations, but backlog can be a useful metric and indicator of the company's estimate of contracted revenue to be realized in the future, subject to certain inherent limitations. The timing of conversion of backlog to revenue may be impacted by, among other factors, the timing of execution, the extension, nullification or early termination of existing contracts with or without penalty, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. Investors are cautioned that backlog should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP.
(3) Total Contract Value (TCV), Represents the initial estimated revenue related to contracts signed in the period without regard for early termination or revenue recognition rules. Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represents TCV attributable to expansion and new scope for existing clients and new logo contracts. L&S TCV is driven by software license renewals, and as such, changes in timing or terms of renewals can lead to fluctuations from period to period. The company believes that actual revenue reflects the most relevant measure necessary to understand the company's results of operations, but TCV can be a useful leading indicator of the company's ability to generate future revenue over time, subject to certain inherent limitations. Measuring TCV involves the use of estimates and judgments and the extent and timing of conversion of TCV to revenue may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of contract signing, and contract modifications, including, without limitation, contract nullification and termination, over the lifetime of a contract. Investors are cautioned that TCV should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP.
(4) Book-to-bill, Represents total contract value booked divided by revenue in a given period.
(5) New Business, Represents expansion and new scope for existing clients and new logo contracts.
(6) Non-GAAP operating profit, This measure excludes pretax pension and postretirement expense, pretax goodwill impairment charge and pretax charges or gains associated with certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings, and cost-reduction activities and other expenses.
(7) EBITDA & adjusted ...
