Unisys Q3 2026 net loss narrows from $309M to $201M
The revised 2026 outlook raises constant-currency revenue growth guidance to (3.0)% to (1.5)%, while non-GAAP operating margin guidance remains 9.0% to 11.0%.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Unisys Corporation (UIS) reported third-quarter 2026 revenue of $471.5 million, up 2.5% year over year (0.6% in constant currency), and a net loss attributable to Unisys of $201.0 million, compared with $308.9 million a year earlier. Non-GAAP operating profit margin was 7.2%, up 180 basis points, and adjusted EBITDA was $59.7 million versus $48.2 million. New Business total contract value was $221 million, up 78%. DWS gross profit margin fell 670 basis points to 9.5%.
Unisys raised 2026 constant-currency revenue growth guidance to (3.0)% to (1.5)% from (5.0)% to (3.5)%, while reaffirming non-GAAP operating profit margin guidance of 9.0% to 11.0%. Third-quarter cash used for operations was $35.8 million, versus $38.0 million provided a year earlier. Unisys purchased a group annuity contract to transfer approximately $200 million of projected U.S. defined benefit pension liabilities to a third-party insurer, funded with plan assets; it reported reducing approximately $520 million of such liabilities since July 2025 toward an approximately $600 million target and expects another settlement in the first half of 2027.
2 points · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet loss attributable to Unisys narrowed to $201.0 million from $308.9 million in 3Q25.
- Moderate pointAdjusted EBITDA was $59.7 million, versus $48.2 million in 3Q25.
Negative
- Moderate pointOperating cash flow was $35.8 million used, versus $38.0 million provided in 3Q25.
- Moderate pointDWS gross profit margin fell to 9.5%, down 670 basis points year over year.
Filing Explained
At September 30, 2026, cash and cash equivalents were reported, while third-quarter operations used cash.
This 8-K reports Unisys’s third-quarter 2026 results; its
The company says TCV does not account for early termination or revenue-recognition rules, and its conversion to revenue can vary with contract terms and performance.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $471.5 million
Year-over-year revenue change: 2.5%
Net loss attributable to Unisys Corporation: ($201.0 million)
+5 more
8 metrics
Revenue
$471.5 million
Third quarter 2026
Year-over-year revenue change
2.5%
Third quarter 2026
Net loss attributable to Unisys Corporation
($201.0 million)
Third quarter 2026; compared with ($308.9 million) in 3Q25
Non-GAAP operating profit margin
7.2%
Third quarter 2026; up 180 basis points year over year
New Business Total Contract Value
$221 million
Third quarter 2026; up 78% year over year
Cash used for operations
$35.8 million used
Third quarter 2026; compared with $38.0 million provided in 3Q25
2026 constant-currency revenue growth guidance
(3.0)% to (1.5)%
Full-year 2026 revised guidance
Projected U.S. defined benefit pension liabilities for transfer
Approximately $200 million
Group annuity contract; funded with plan assets
Key Terms
constant currency, Total Contract Value (TCV), Backlog, Adjusted EBITDA, +1 more
5 terms
constant currency financial
"revenue growth in constant currency"
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
Total Contract Value (TCV) financial
"New Business Total Contract Value"
Total contract value (TCV) is the full amount of money a customer is expected to pay over the life of a contract, combining one-time charges and all recurring fees or services promised. For investors, TCV shows the size and potential near-term revenue impact of deals—like seeing the sticker price of a multi-year service—while reminding them that actual cash received depends on billing schedules, renewals and customer cancellations.
Backlog financial
"Backlog was $2.92 billion"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
Adjusted EBITDA financial
"Adjusted EBITDA was $59.7 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
group annuity contract financial
"purchased a group annuity contract"
A group annuity contract is an insurance agreement under which a plan sponsor or employer pays a lump sum to an insurance company in exchange for the insurer taking over the obligation to make regular retirement payments to a group of plan participants. Think of it as one party handing its pension bill to an insurer that guarantees the income stream. It matters to investors because such transactions change a company’s reported pension liabilities, cash needs, and shift longevity and investment risk onto the insurance firm that issues the contract.
Earnings Snapshot
Revenue: $471.5 million · Guidance included
Third quarter 2026
Revenue
$471.5 million
up 2.5% year over year
Net loss attributable to Unisys Corporation
($201.0 million)
compared with ($308.9 million) in 3Q25
Non-GAAP operating profit margin
7.2%
up 180 basis points year over year
Adjusted EBITDA
$59.7 million
compared with $48.2 million in 3Q25
New Business Total Contract Value
$221 million
up 78% year over year
Cash used for operations
$35.8 million used
compared with $38.0 million provided in 3Q25
Guidance
2026 constant-currency revenue growth of (3.0)% to (1.5)%; non-GAAP operating profit margin of 9.0% to 11.0%.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were UIS's third-quarter 2026 results?
UIS reported revenue of $471.5 million, up 2.5% year over year, and a net loss attributable to Unisys Corporation of $201.0 million, compared with $308.9 million in 3Q25. Non-GAAP operating profit margin was 7.2%, up 180 basis points year over year.
What is UIS's 2026 revenue guidance?
Unisys revised full-year 2026 constant-currency revenue growth guidance to (3.0)% to (1.5)%, from (5.0)% to (3.5)%, and reaffirmed non-GAAP operating profit margin guidance of 9.0% to 11.0%. The revised range translates to reported revenue growth of (0.4)% to 1.1%, based on exchange rates as of the end of 3Q26.
What pension liability transfer did Unisys announce?
Unisys purchased a group annuity contract to transfer approximately $200 million of projected U.S. defined benefit pension liabilities to a third-party insurer, funded with plan assets. The transaction included a non-cash pension settlement loss of $151 million, net of tax. Unisys expects an additional pension settlement in the first half of 2027.
Which UIS segments grew in the third quarter of 2026?
Digital Workplace Solutions revenue increased 3.9% year over year, Enterprise Computing Solutions revenue increased 5.6%, and Cloud, Applications & Infrastructure Solutions revenue declined 0.1%. In constant currency, the changes were up 1.7%, up 2.7%, and down 1.2%, respectively.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT Pursuant to Section 13 or 15(d) | ||
of The Securities Exchange Act of 1934 | ||
Date of Report (Date of Earliest Event Reported): November 4, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code) | ||
( | ||
(Registrant’s telephone number, including area code) | ||
N/A | ||
(Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 4, 2026, Unisys Corporation issued a news release to report its financial results for the quarter ended September 30, 2026. The news release is furnished as Exhibit 99.1 to this Current Report.
The information in Item 2.02 of this Current Report, including Exhibit 99.1 attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(d) | The following exhibit is being furnished herewith: | ||||
Exhibit No. | Description | |||||||
99.1 | News Release, dated November 4, 2026, of Unisys Corporation | |||||||
| 104 | Cover page Interactive Data File (embedded within the Inline Extensible Business Reporting Language document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Unisys Corporation | |||||||||||
Date: November 4, 2026 | By: | /s/ Debra McCann | |||||||||
| Debra McCann | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
News Release 
Unisys Announces 3Q26 Results
Unisys Continues Strong New Business Signings and Raises Full-Year Revenue Guidance
•Revenue of $471.5 million, up 2.5% year over year (YoY), up 0.6% in constant currency(1)
•Technology Solutions & Services(13) (TS&S) revenue of $387.1 million, up 2.6% YoY, up 0.9% in constant currency
•Unisys increases 2026 full-year constant currency revenue guidance; reaffirms full-year non-GAAP operating profit(6) margin guidance
•Gross profit margin of 26.7%, up 120 basis points (bps) YoY
•Operating profit margin of 5.0% improved YoY; non-GAAP operating profit margin of 7.2%, improved 180 bps YoY
•New Business(5) Total Contract Value (TCV)(3) of $221 million, an increase of 78% YoY
•Purchased group annuity contract to transfer approximately $200 million of projected U.S. defined benefit pension liabilities to a third-party insurer, funded with plan assets
BLUE BELL, Pa., November 4, 2026 – Unisys Corporation (NYSE: UIS) reported financial results for the third quarter of 2026 (3Q26).
"The year continues to gain momentum, with the third quarter building on a solid first half," said Michael Thomson, Unisys CEO and President. "New business signings once again were strong, and client interest continues to deepen across the portfolio. Our AI-First execution is transforming our delivery, opening new markets in agentic services, AI infrastructure and the ClearPath ecosystem."
Unisys Chief Financial Officer Deb McCann said, "We are pleased with our third quarter results. Revenue came in ahead of our expectations, led by TS&S, and our non-GAAP operating profit margin of 7.2% was above what we had guided. Together with our fourth quarter visibility, this supports the increase to our full-year revenue guidance and our reaffirmed profitability guidance."
1
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) | 3Q26 | 3Q25 | YTD26 | YTD25 | ||||||||||||||||||||||
| Revenue | $471.5 | $460.2 | $1,382.6 | $1,375.6 | ||||||||||||||||||||||
YoY revenue change | 2.5 | % | 0.5 | % | ||||||||||||||||||||||
YoY revenue change in constant currency | 0.6 | % | (3.1) | % | ||||||||||||||||||||||
| TS&S revenue | $387.1 | $377.2 | $1,163.0 | $1,133.9 | ||||||||||||||||||||||
YoY revenue change | 2.6 | % | 2.6 | % | ||||||||||||||||||||||
YoY revenue change in constant currency | 0.9 | % | (1.1) | % | ||||||||||||||||||||||
ClearPath(12) revenue | $84.4 | $83.0 | $219.6 | $241.7 | ||||||||||||||||||||||
YoY revenue change | 1.7 | % | (9.1) | % | ||||||||||||||||||||||
YoY revenue change in constant currency | (1.1) | % | (12.4) | % | ||||||||||||||||||||||
| Gross profit | $126.0 | $117.2 | $355.8 | $354.7 | ||||||||||||||||||||||
| Gross profit percent | 26.7 | % | 25.5 | % | 25.7 | % | 25.8 | % | ||||||||||||||||||
| TS&S gross profit | $64.3 | $70.2 | $214.8 | $204.1 | ||||||||||||||||||||||
| TS&S gross profit percent | 16.6 | % | 18.6 | % | 18.5 | % | 18.0 | % | ||||||||||||||||||
| Operating profit (loss) | $23.7 | ($33.5) | $7.0 | $1.9 | ||||||||||||||||||||||
| Operating profit (loss) percent | 5.0 | % | (7.3) | % | 0.5 | % | 0.1 | % | ||||||||||||||||||
| Non-GAAP operating profit | $34.0 | $24.8 | $79.1 | $73.5 | ||||||||||||||||||||||
| Non-GAAP operating profit percent | 7.2 | % | 5.4 | % | 5.7 | % | 5.3 | % | ||||||||||||||||||
| Net loss attributable to Unisys Corporation | ($201.0) | ($308.9) | ($332.1) | ($358.5) | ||||||||||||||||||||||
Non-GAAP net (loss) income attributable to Unisys Corporation(8) | ($8.5) | ($5.9) | ($24.0) | $4.9 | ||||||||||||||||||||||
EBITDA(7) | ($138.2) | ($257.5) | ($164.2) | ($223.9) | ||||||||||||||||||||||
Adjusted EBITDA(7) | $59.7 | $48.2 | $159.4 | $149.8 | ||||||||||||||||||||||
| Adjusted EBITDA as a percentage of revenue | 12.7 | % | 10.5 | % | 11.5 | % | 10.9 | % | ||||||||||||||||||
Third Quarter 2026 Results
Revenue increased 2.5% YoY, up 0.6% in constant currency. Gross profit margin improved 120 bps YoY, primarily driven by a higher mix of software licenses relative to hardware within ClearPath renewals, partially offset by higher cost reduction charges.
TS&S revenue increased 2.6% YoY, or up 0.9% in constant currency. TS&S gross profit margin decreased 200 bps YoY, primarily driven by higher cost reduction charges.
During the third quarter of 2026, gross profit margin and TS&S gross profit margin benefited by approximately 50 and 70 bps, respectively, from a first quarter transaction within the company’s United Kingdom business process outsourcing consolidated joint venture. This transaction is expected to generate gross profit benefit of approximately $3 million quarterly and $12 million for full-year 2026. The financial impact of this transaction will be fully recognized by year end.
2
For the third quarter of 2026, net loss attributable to Unisys Corporation included a non-cash pension settlement loss of $151 million, net of tax, as a result of the purchase of a group annuity contract to transfer approximately $200 million of projected U.S. defined benefit pension liabilities to a third-party insurer, funded with plan assets. Including this transaction, the company has reduced approximately $520 million of U.S. qualified defined benefit pension plan liabilities since July 2025, working towards its approximately $600 million reduction target. The company expects to complete an additional pension settlement in the first half of 2027 to substantially achieve this objective.
Financial Highlights by Segment
(In millions, except numbers presented as percentages) | 3Q26 | 3Q25 | YTD26 | YTD25 | ||||||||||||||||||||||
Digital Workplace Solutions (DWS): | ||||||||||||||||||||||||||
| Revenue | $130.2 | $125.3 | $390.3 | $382.0 | ||||||||||||||||||||||
YoY revenue change | 3.9 | % | 2.2 | % | ||||||||||||||||||||||
YoY revenue change in constant currency | 1.7 | % | (1.9) | % | ||||||||||||||||||||||
| Gross profit | $12.4 | $20.3 | $43.6 | $60.6 | ||||||||||||||||||||||
| Gross profit percent | 9.5 | % | 16.2 | % | 11.2 | % | 15.9 | % | ||||||||||||||||||
Cloud, Applications & Infrastructure Solutions (CA&I): | ||||||||||||||||||||||||||
| Revenue | $180.3 | $180.4 | $546.7 | $542.2 | ||||||||||||||||||||||
YoY revenue change | (0.1) | % | 0.8 | % | ||||||||||||||||||||||
YoY revenue change in constant currency | (1.2) | % | (2.3) | % | ||||||||||||||||||||||
| Gross profit | $37.2 | $35.4 | $122.9 | $108.4 | ||||||||||||||||||||||
| Gross profit percent | 20.6 | % | 19.6 | % | 22.5 | % | 20.0 | % | ||||||||||||||||||
Enterprise Computing Solutions (ECS): | ||||||||||||||||||||||||||
| Revenue | $140.6 | $133.2 | $381.8 | $392.1 | ||||||||||||||||||||||
YoY revenue change | 5.6 | % | (2.6) | % | ||||||||||||||||||||||
YoY revenue change in constant currency | 2.7 | % | (6.4) | % | ||||||||||||||||||||||
| Gross profit | $78.1 | $61.6 | $188.5 | $193.2 | ||||||||||||||||||||||
| Gross profit percent | 55.5 | % | 46.2 | % | 49.4 | % | 49.3 | % | ||||||||||||||||||
Third Quarter 2026 Segment Results
DWS revenue increased 3.9% YoY, or up 1.7% in constant currency, primarily driven by higher hardware revenue. DWS gross profit margin was 9.5%, a decrease of 670 bps YoY, primarily due to known client attrition, and increased implementation and delivery costs.
CA&I revenue declined 0.1% YoY, down 1.2% in constant currency. CA&I gross profit margin was 20.6%, an increase of 100 bps YoY, primarily driven by delivery improvements.
ECS revenue increased 5.6% YoY, up 2.7% in constant currency, primarily driven by higher specialized project work in the business processing solutions. ECS gross profit margin was 55.5%, an increase of 930 bps YoY, primarily driven by a higher mix of software licenses relative to hardware within ClearPath renewals.
3
Balance Sheet and Cash Flows
| (In millions) | September 30, 2026 | December 31, 2025 | ||||||||||||
| Cash and cash equivalents | $ | 264.2 | $ | 413.9 | ||||||||||
| (In millions) | 3Q26 | 3Q25 | YTD26 | YTD25 | ||||||||||||||||||||||
| Cash (used for) provided by operations | ($35.8) | $38.0 | ($66.5) | ($244.9) | ||||||||||||||||||||||
Free cash flow(9) | ($57.7) | $19.9 | ($132.2) | ($303.4) | ||||||||||||||||||||||
Pre-pension and postretirement free cash flow(10) | ($26.8) | $50.5 | ($43.2) | $14.8 | ||||||||||||||||||||||
Adjusted free cash flow(11) | ($18.7) | $30.3 | ($14.2) | $9.2 | ||||||||||||||||||||||
Cash used for operations in the third quarter of 2026 was impacted by the timing of cash interest payment associated with the 10.625% Senior Secured Notes due 2031. Additionally, cash provided by operations in the third quarter of 2025 included the receipt of $25 million related to a settled legal matter.
Other Metrics
(In millions, except numbers presented as percentages) | 3Q26 | 3Q25 | YoY Change | QoQ Change* | |||||||||||||||||||
| Total Contract Value (TCV) | |||||||||||||||||||||||
| New Business | $ | 221 | $ | 124 | 78 | % | 15 | % | |||||||||||||||
| TS&S Renewals | 275 | 230 | 20 | % | 40 | % | |||||||||||||||||
| ClearPath Renewals | 98 | 61 | 61 | % | 188 | % | |||||||||||||||||
| Total company | $ | 594 | $ | 415 | 43 | % | 41 | % | |||||||||||||||
| YTD26 | YTD25 | ||||||||||||||||||||||
| TCV | |||||||||||||||||||||||
| New Business | $ | 571 | $ | 355 | 61 | % | |||||||||||||||||
| TS&S Renewals | 545 | 572 | (5) | % | |||||||||||||||||||
| ClearPath Renewals | 174 | 131 | 33 | % | |||||||||||||||||||
| Total company | $ | 1,290 | $ | 1,058 | 22 | % | |||||||||||||||||
*QoQ - quarter over quarter
Backlog(2) was $2.92 billion for the third quarter of 2026 compared to $2.83 billion for the third quarter of 2025.
2026 Financial Guidance
The company raises full-year 2026 revenue growth in constant currency and reaffirms profitability guidance:
| Guidance | Prior Issued Guidance | ||||||||||
| Revenue growth in constant currency | (3.0)% to (1.5)% | (5.0)% to (3.5)% | |||||||||
| Non-GAAP operating profit margin | 9.0% to 11.0% | 9.0% to 11.0% | |||||||||
Constant currency revised revenue guidance translates to reported revenue growth of (0.4)% to 1.1%, based on exchange rates as of the end of 3Q26. The revised guidance assumes ClearPath revenue of approximately $425 million and TS&S constant currency revenue growth of (3.0)% to (1.0)%.
4
Conference Call
Unisys will hold a conference call with the financial community on Thursday, November 5, at 8 a.m. Eastern Time to discuss the results of the third quarter of 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 3578869 from two hours after the end of the call until November 19, 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. ClearPath 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
(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 and intangible asset impairment charges 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 EBITDA – Earnings before interest, taxes, depreciation and amortization (EBITDA) is calculated by starting with net income (loss) attributable to Unisys Corporation common shareholders and adding or subtracting the following items: net income (loss) attributable to noncontrolling interests, interest expense (net of interest income), provision for (benefit from) income taxes, depreciation and amortization. Adjusted EBITDA further excludes pension and postretirement expense; goodwill and intangible asset impairment charges, foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; cost reduction activities including workforce reduction actions, lease abandonment costs, asset impairment charges and other costs associated with exited operations and facilities; non-cash share-based expense; and other (income) expense adjustments.
(8) Non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share – These measures exclude pension and postretirement expense and charges or (credits) in connection with goodwill and intangible asset impairment; foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost reduction activities including workforce reduction actions, lease abandonment costs, asset impairment charges and other costs associated with exited operations and facilities. The tax amounts related to these items for the calculation of non-GAAP diluted earnings (loss) per share include the current and deferred tax expense and benefits recognized under GAAP for these items.
(9) Free cash flow – Represents cash flow from operations less capital expenditures.
(10) Pre-pension and postretirement free cash flow – Represents free cash flow before pension and postretirement contributions.
(11) Adjusted free cash flow – Represents free cash flow less cash used for pension and postretirement funding; debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost reduction activities and other payments.
(12) ClearPath® – Represents software license and related support services, primarily ClearPath ForwardTM, within the company's ECS segment.
(13) Technology Solutions & Services (TS&S) – These measures include the revenue, gross profit and gross profit margin of the company's DWS segment, CA&I segment and ECS segment, excluding ClearPath software license and support services. The company provides these measures to allow investors to isolate the impact of software license
6
renewals, which tend to be significant and impactful based on timing, and related support services in order to evaluate the company’s business outside of these areas.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Unisys’ ability to control or estimate precisely, such as estimates of future market conditions, fluctuations in foreign currency exchange rates, the behavior of other market participants and that TCV is based, in part, on the assumption that each of those contracts will continue for their full contracted term. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Because actual results may differ materially from those expressed or implied by these forward-looking statements, we caution readers not to place undue reliance on these statements. Forward-looking statements in this release and the accompanying presentation include, but are not limited to, statements made in Mr. Thomson's and Ms. McCann's quotations, any projections or expectations of revenue growth, margin expansion, achievement of operational efficiencies and savings, effective use of technology, investments in our solutions and artificial intelligence adoption and innovation, TCV and New Business TCV, the impact of new logo signings, backlog, book-to-bill(4), full-year 2026 revenue growth and profitability guidance, including reported and constant currency revenue, growth and the foreign currency exchange rate assumptions underlying the translation of constant currency guidance to reported guidance, TS&S constant currency revenue growth, ClearPath revenue, non-GAAP operating profit margin, free cash flow generation and the assumptions and other expectations made in connection with our full-year 2026 financial guidance, the reduction of uncertainty and volatility of cash requirements, including pension contributions and the amount and timing of future pension settlements, our pension liability, debt extinguishment, future economic benefits from net operating losses and statements regarding future economic conditions or performance.
Additional information and factors that could cause actual results to differ materially from Unisys’ expectations are contained in Unisys’ filings with the U.S. Securities and Exchange Commission (SEC), including Unisys’ Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this release is representative as of the date of this release only, and any forward-looking statement speaks only as of the date on which that statement is made. While Unisys periodically reassesses material trends and uncertainties affecting Unisys’ results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, Unisys does not, by including this statement, assume any obligation to review, revise or update any forward-looking statement in light of future events or circumstances, except as required by applicable law.
7
Non-GAAP Information
This release includes certain non-GAAP financial measures that exclude certain items such as pension and postretirement expense; goodwill and intangible asset impairment charges, foreign exchange (gains) losses, debt extinguishment, certain legal and other matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses that the company believes are not indicative of its ongoing operations, as they may be unusual or non-recurring. The inclusion of such items in financial measures can make the company’s profitability and liquidity results difficult to compare to prior periods or anticipated future periods and can distort the visibility of trends associated with the company’s ongoing performance. Management also believes that non-GAAP measures are useful to investors because they provide supplemental information about the company’s financial performance and liquidity, as well as greater transparency into management’s view and assessment of the company’s ongoing operating performance.
Non-GAAP financial measures are often provided and utilized by the company’s management, analysts, and investors to enhance comparability of year-over-year results. These items are uncertain, depend on various factors, and could have a material impact on the company's GAAP results for the applicable period. These measures should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with U.S. GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below except for financial guidance and other forward-looking information since such a reconciliation is not practicable without unreasonable efforts as the company is unable to reasonably forecast certain amounts that are necessary for such reconciliation. This information has been provided pursuant to the requirements of SEC Regulation G.
8
About Unisys
Unisys is a global technology solutions company that powers breakthroughs for the world's leading organizations. Our solutions – cloud, AI, digital workplace, applications and enterprise computing – help our clients challenge the status quo and unlock their full potential. To learn how we have been helping clients push what's possible for more than 150 years, visit unisys.com and follow us on LinkedIn.
| Contacts: | For Investors: | ||||
| Daniel Ferry, Unisys, +1 215-274-1834 | |||||
| Investor@unisys.com | |||||
| For Press: | |||||
| Patricia Gonzalez, Unisys, +1 817-846-7662 | |||||
| Patricia.Gonzalez@unisys.com | |||||
###
RELEASE NO.: 1104/10079
Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of Unisys Corporation. Any other brand or product referenced herein is acknowledged to be a trademark or registered trademark of its respective holder.
UIS-Q
9
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(Millions, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenue | $ | 471.5 | $ | 460.2 | $ | 1,382.6 | $ | 1,375.6 | ||||||||||||||||||
| Costs and expenses | ||||||||||||||||||||||||||
| Cost of revenue | 345.5 | 343.0 | 1,026.8 | 1,020.9 | ||||||||||||||||||||||
| Selling, general and administrative | 95.1 | 90.9 | 282.3 | 281.3 | ||||||||||||||||||||||
| Research and development | 7.2 | 4.8 | 17.8 | 16.5 | ||||||||||||||||||||||
| Goodwill and intangible asset impairment | — | 55.0 | 48.7 | 55.0 | ||||||||||||||||||||||
| 447.8 | 493.7 | 1,375.6 | 1,373.7 | |||||||||||||||||||||||
| Operating income (loss) | 23.7 | (33.5) | 7.0 | 1.9 | ||||||||||||||||||||||
| Interest expense | 19.0 | 18.2 | 55.8 | 34.6 | ||||||||||||||||||||||
| Other (expense), net | (183.2) | (241.2) | (232.6) | (280.2) | ||||||||||||||||||||||
| Loss before income taxes | (178.5) | (292.9) | (281.4) | (312.9) | ||||||||||||||||||||||
| Provision for income taxes | 21.8 | 16.3 | 51.3 | 46.9 | ||||||||||||||||||||||
| Consolidated net loss | (200.3) | (309.2) | (332.7) | (359.8) | ||||||||||||||||||||||
| Net income (loss) attributable to noncontrolling interests | 0.7 | (0.3) | (0.6) | (1.3) | ||||||||||||||||||||||
| Net loss attributable to Unisys Corporation | $ | (201.0) | $ | (308.9) | $ | (332.1) | $ | (358.5) | ||||||||||||||||||
| Loss per share attributable to Unisys Corporation | ||||||||||||||||||||||||||
| Basic | $ | (2.76) | $ | (4.33) | $ | (4.58) | $ | (5.06) | ||||||||||||||||||
| Diluted | $ | (2.76) | $ | (4.33) | $ | (4.58) | $ | (5.06) | ||||||||||||||||||
10
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
| Total | DWS | CA&I | ECS | Other | ||||||||||||||||||||||||||||
| Three Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||
| Revenue | $ | 471.5 | $ | 130.2 | $ | 180.3 | $ | 140.6 | $ | 20.4 | ||||||||||||||||||||||
| Gross profit percent | 26.7 | % | 9.5 | % | 20.6 | % | 55.5 | % | ||||||||||||||||||||||||
| Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||
| Revenue | $ | 460.2 | $ | 125.3 | $ | 180.4 | $ | 133.2 | $ | 21.3 | ||||||||||||||||||||||
| Gross profit percent | 25.5 | % | 16.2 | % | 19.6 | % | 46.2 | % | ||||||||||||||||||||||||
| Total | DWS | CA&I | ECS | Other | ||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||
| Revenue | $ | 1,382.6 | $ | 390.3 | $ | 546.7 | $ | 381.8 | $ | 63.8 | ||||||||||||||||||||||
| Gross profit percent | 25.7 | % | 11.2 | % | 22.5 | % | 49.4 | % | ||||||||||||||||||||||||
| Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||
| Revenue | $ | 1,375.6 | $ | 382.0 | $ | 542.2 | $ | 392.1 | $ | 59.3 | ||||||||||||||||||||||
| Gross profit percent | 25.8 | % | 15.9 | % | 20.0 | % | 49.3 | % | ||||||||||||||||||||||||
TECHNOLOGY SOLUTIONS & SERVICES (TS&S) & CLEARPATH REVENUE AND GROSS PROFIT
(Unaudited)
(Millions)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| ClearPath revenue | $ | 84.4 | $ | 83.0 | $ | 219.6 | $ | 241.7 | ||||||||||||||||||
| TS&S revenue | 387.1 | 377.2 | 1,163.0 | 1,133.9 | ||||||||||||||||||||||
| Revenue | $ | 471.5 | $ | 460.2 | $ | 1,382.6 | $ | 1,375.6 | ||||||||||||||||||
| ClearPath gross profit | $ | 61.7 | $ | 47.0 | $ | 141.0 | $ | 150.6 | ||||||||||||||||||
| TS&S gross profit | 64.3 | 70.2 | 214.8 | 204.1 | ||||||||||||||||||||||
| Gross profit | $ | 126.0 | $ | 117.2 | $ | 355.8 | $ | 354.7 | ||||||||||||||||||
| ClearPath gross profit percent | 73.1 | % | 56.6 | % | 64.2 | % | 62.3 | % | ||||||||||||||||||
| TS&S gross profit percent | 16.6 | % | 18.6 | % | 18.5 | % | 18.0 | % | ||||||||||||||||||
| Gross profit percent | 26.7 | % | 25.5 | % | 25.7 | % | 25.8 | % | ||||||||||||||||||
11
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 264.2 | $ | 413.9 | |||||||
| Accounts receivable, net | 359.5 | 437.7 | |||||||||
| Contract assets | 8.8 | 10.9 | |||||||||
| Inventories | 20.2 | 13.8 | |||||||||
| Prepaid expenses and other current assets | 123.9 | 127.7 | |||||||||
| Total current assets | 776.6 | 1,004.0 | |||||||||
| Properties, net | 58.4 | 53.1 | |||||||||
| Capitalized contract costs, net | 68.9 | 73.6 | |||||||||
| Marketable software, net | 166.7 | 166.1 | |||||||||
| Operating lease right-of-use assets | 36.5 | 38.4 | |||||||||
| Prepaid pension and postretirement assets | 41.1 | 21.3 | |||||||||
| Deferred income taxes | 91.8 | 96.9 | |||||||||
| Goodwill | 146.6 | 193.8 | |||||||||
| Intangible assets, net | 26.8 | 31.2 | |||||||||
| Restricted cash | 12.3 | 7.8 | |||||||||
| Other long-term assets | 156.8 | 160.0 | |||||||||
| Total assets | $ | 1,582.5 | $ | 1,846.2 | |||||||
| Total liabilities and deficit | |||||||||||
| Current liabilities: | |||||||||||
| Current maturities of long-term debt | $ | 12.3 | $ | 12.7 | |||||||
| Accounts payable | 127.2 | 81.2 | |||||||||
| Deferred revenue | 174.5 | 228.5 | |||||||||
| Other accrued liabilities | 277.9 | 333.5 | |||||||||
| Total current liabilities | 591.9 | 655.9 | |||||||||
| Long-term debt | 719.1 | 729.0 | |||||||||
| Long-term pension and postretirement liabilities | 492.1 | 517.7 | |||||||||
| Long-term deferred revenue | 79.1 | 100.7 | |||||||||
| Long-term operating lease liabilities | 28.6 | 30.6 | |||||||||
| Other long-term liabilities | 80.0 | 80.6 | |||||||||
| Commitments and contingencies | |||||||||||
| Total Unisys Corporation stockholders' deficit | (425.1) | (282.6) | |||||||||
| Noncontrolling interests | 16.8 | 14.3 | |||||||||
| Total deficit | (408.3) | (268.3) | |||||||||
| Total liabilities and deficit | $ | 1,582.5 | $ | 1,846.2 | |||||||
12
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
| Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||
| Consolidated net loss | $ | (332.7) | $ | (359.8) | ||||||||||
| Adjustments to reconcile consolidated net loss to net cash used for operating activities: | ||||||||||||||
| (Gains) loss on debt extinguishment | (0.2) | 7.0 | ||||||||||||
| Foreign currency (gains) losses | (10.1) | 1.4 | ||||||||||||
| Employee stock compensation | 9.8 | 12.2 | ||||||||||||
| Depreciation and amortization of properties | 15.3 | 17.6 | ||||||||||||
| Depreciation and amortization of capitalized contract costs | 19.7 | 11.4 | ||||||||||||
| Amortization of marketable software | 35.5 | 38.3 | ||||||||||||
| Amortization of intangible assets | 2.9 | 3.2 | ||||||||||||
| Goodwill and intangible asset impairment | 48.7 | 55.0 | ||||||||||||
| Other non-cash operating activities | 0.9 | 3.3 | ||||||||||||
| Pension and postretirement contributions | (89.0) | (318.2) | ||||||||||||
| Pension and postretirement expense | 244.3 | 286.8 | ||||||||||||
| Deferred income taxes, net | 0.4 | 4.4 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Receivables, net and contract assets | 79.3 | 104.2 | ||||||||||||
| Inventories | (6.3) | (1.3) | ||||||||||||
| Other assets | 10.9 | (0.9) | ||||||||||||
| Accounts payable and current liabilities | (79.3) | (113.5) | ||||||||||||
| Other liabilities | (16.6) | 4.0 | ||||||||||||
| Net cash used for operating activities | (66.5) | (244.9) | ||||||||||||
| Cash flows from investing activities | ||||||||||||||
| Investment in marketable software | (32.4) | (36.1) | ||||||||||||
| Capital additions of properties and other assets | (33.3) | (22.4) | ||||||||||||
| Proceeds from foreign exchange forward contracts | — | 2,342.1 | ||||||||||||
| Purchases of foreign exchange forward contracts | — | (2,305.1) | ||||||||||||
| Other | (0.1) | (0.1) | ||||||||||||
| Net cash used for investing activities | (65.8) | (21.6) | ||||||||||||
| Cash flows from financing activities | ||||||||||||||
| Proceeds from issuance of long-term debt | — | 700.0 | ||||||||||||
| Payments of long-term debt | (11.8) | (490.0) | ||||||||||||
| Issuance costs relating to long-term debt | — | (14.1) | ||||||||||||
| Cash paid for debt extinguishment | — | (4.2) | ||||||||||||
| Other | (1.3) | (3.6) | ||||||||||||
| Net cash (used for) provided by financing activities | (13.1) | 188.1 | ||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.2 | 18.3 | ||||||||||||
| Decrease in cash, cash equivalents and restricted cash | (145.2) | (60.1) | ||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 421.7 | 390.6 | ||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 276.5 | $ | 330.5 | ||||||||||
13
UNISYS CORPORATION
RECONCILIATIONS OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
| Net loss attributable to Unisys Corporation | $ | (201.0) | $ | (308.9) | $ | (332.1) | $ | (358.5) | |||||||||||||||||||||
| Pension and postretirement expense | pretax | 183.4 | 242.9 | 244.3 | 286.8 | ||||||||||||||||||||||||
| tax | 1.2 | 0.7 | 3.6 | 1.9 | |||||||||||||||||||||||||
| net of tax | 182.2 | 242.2 | 240.7 | 284.9 | |||||||||||||||||||||||||
Goodwill and intangible asset impairment | pretax | — | 55.0 | 48.7 | 55.0 | ||||||||||||||||||||||||
| tax | — | — | — | — | |||||||||||||||||||||||||
| net of tax | — | 55.0 | 48.7 | 55.0 | |||||||||||||||||||||||||
| Foreign exchange (gains) losses, net | pretax | (5.8) | 3.7 | (10.1) | 4.1 | ||||||||||||||||||||||||
| tax | — | — | — | — | |||||||||||||||||||||||||
| net of tax | (5.8) | 3.7 | (10.1) | 4.1 | |||||||||||||||||||||||||
| Loss (gain) on debt extinguishment | pretax | — | 0.2 | (0.2) | 7.0 | ||||||||||||||||||||||||
| tax | — | — | — | — | |||||||||||||||||||||||||
| net of tax | — | 0.2 | (0.2) | 7.0 | |||||||||||||||||||||||||
Certain legal matters, net | pretax | 9.1 | 0.7 | 10.5 | 1.0 | ||||||||||||||||||||||||
| tax | — | — | — | — | |||||||||||||||||||||||||
| net of tax | 9.1 | 0.7 | 10.5 | 1.0 | |||||||||||||||||||||||||
| Environmental matters | pretax | 0.1 | 0.2 | 0.6 | 1.5 | ||||||||||||||||||||||||
| tax | — | — | — | — | |||||||||||||||||||||||||
| net of tax | 0.1 | 0.2 | 0.6 | 1.5 | |||||||||||||||||||||||||
| Cost reduction and other expenses | pretax | 8.0 | 1.0 | 19.0 | 10.2 | ||||||||||||||||||||||||
| tax | 1.1 | — | 1.1 | 0.3 | |||||||||||||||||||||||||
| net of tax | 6.9 | 1.0 | 17.9 | 9.9 | |||||||||||||||||||||||||
| Non-GAAP net (loss) income attributable to Unisys Corporation | $ | (8.5) | $ | (5.9) | $ | (24.0) | $ | 4.9 | |||||||||||||||||||||
| Weighted average shares (thousands) | 72,928 | 71,301 | 72,548 | 70,889 | |||||||||||||||||||||||||
| Plus incremental shares from assumed vesting: | |||||||||||||||||||||||||||||
| Employee stock plans | — | — | — | — | |||||||||||||||||||||||||
| Adjusted weighted average shares | 72,928 | 71,301 | 72,548 | 70,889 | |||||||||||||||||||||||||
| Weighted average shares (thousands) | 72,928 | 71,301 | 72,548 | 70,889 | |||||||||||||||||||||||||
| Plus incremental shares from assumed vesting: | |||||||||||||||||||||||||||||
| Employee stock plans | — | — | — | 2,711 | |||||||||||||||||||||||||
| Non-GAAP adjusted weighted average shares | 72,928 | 71,301 | 72,548 | 73,600 | |||||||||||||||||||||||||
Diluted loss per share | |||||||||||||||||||||||||||||
| Net loss attributable to Unisys Corporation | $ | (201.0) | $ | (308.9) | $ | (332.1) | $ | (358.5) | |||||||||||||||||||||
| Divided by adjusted weighted average shares | 72,928 | 71,301 | 72,548 | 70,889 | |||||||||||||||||||||||||
| Diluted loss per share | $ | (2.76) | $ | (4.33) | $ | (4.58) | $ | (5.06) | |||||||||||||||||||||
| Non-GAAP basis | |||||||||||||||||||||||||||||
| Non-GAAP net (loss) income attributable to Unisys Corporation for diluted (loss) earnings per share | $ | (8.5) | $ | (5.9) | $ | (24.0) | $ | 4.9 | |||||||||||||||||||||
| Divided by Non-GAAP adjusted weighted average shares | 72,928 | 71,301 | 72,548 | 73,600 | |||||||||||||||||||||||||
| Non-GAAP diluted (loss) earnings per share | $ | (0.12) | $ | (0.08) | $ | (0.33) | $ | 0.07 | |||||||||||||||||||||
14
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Cash (used for) provided by operations | $ | (35.8) | $ | 38.0 | $ | (66.5) | $ | (244.9) | ||||||||||||||||||
| Additions to marketable software | (11.3) | (12.5) | (32.4) | (36.1) | ||||||||||||||||||||||
| Additions to properties and other assets | (10.6) | (5.6) | (33.3) | (22.4) | ||||||||||||||||||||||
| Free cash flow | (57.7) | 19.9 | (132.2) | (303.4) | ||||||||||||||||||||||
| Pension and postretirement funding | 30.9 | 30.6 | 89.0 | 318.2 | ||||||||||||||||||||||
| Pre-pension and postretirement free cash flow | (26.8) | 50.5 | (43.2) | 14.8 | ||||||||||||||||||||||
Debt extinguishment payments | — | 0.2 | — | 4.2 | ||||||||||||||||||||||
| Certain legal (receipts) payments, net | — | (25.0) | 0.3 | (23.2) | ||||||||||||||||||||||
| Environmental matters payments | 1.4 | 1.6 | 3.7 | 5.1 | ||||||||||||||||||||||
| Cost reduction and other payments, net | 6.7 | 3.0 | 25.0 | 8.3 | ||||||||||||||||||||||
| Adjusted free cash flow | $ | (18.7) | $ | 30.3 | $ | (14.2) | $ | 9.2 | ||||||||||||||||||
15
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
EBITDA
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net loss attributable to Unisys Corporation | $ | (201.0) | $ | (308.9) | $ | (332.1) | $ | (358.5) | ||||||||||||||||||
| Net income (loss) attributable to noncontrolling interests | 0.7 | (0.3) | (0.6) | (1.3) | ||||||||||||||||||||||
Interest expense, net of interest income of $2.7, $4.7, $12.0 and $16.0, respectively (1) | 16.3 | 13.5 | 43.8 | 18.5 | ||||||||||||||||||||||
| Provision for income taxes | 21.8 | 16.3 | 51.3 | 46.9 | ||||||||||||||||||||||
| Depreciation | 11.4 | 9.5 | 35.0 | 29.0 | ||||||||||||||||||||||
| Amortization | 12.6 | 12.4 | 38.4 | 41.5 | ||||||||||||||||||||||
| EBITDA | $ | (138.2) | $ | (257.5) | $ | (164.2) | $ | (223.9) | ||||||||||||||||||
| Pension and postretirement expense | $ | 183.4 | $ | 242.9 | $ | 244.3 | $ | 286.8 | ||||||||||||||||||
Goodwill and intangible asset impairment | — | 55.0 | 48.7 | 55.0 | ||||||||||||||||||||||
Foreign exchange (gains) losses, net (1)(2) | (5.8) | 3.7 | (10.1) | 4.1 | ||||||||||||||||||||||
Loss (gain) on debt extinguishment (1) | — | 0.2 | (0.2) | 7.0 | ||||||||||||||||||||||
Certain legal matters, net (3) | 9.1 | 0.7 | 10.5 | 1.0 | ||||||||||||||||||||||
Environmental matters (1) | 0.1 | 0.2 | 0.6 | 1.5 | ||||||||||||||||||||||
Cost reduction and other expenses (4) | 7.1 | — | 16.1 | 3.8 | ||||||||||||||||||||||
| Non-cash share based expense | 2.6 | 2.5 | 9.8 | 12.2 | ||||||||||||||||||||||
Other expense, net adjustment (5) | 1.4 | 0.5 | 3.9 | 2.3 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 59.7 | $ | 48.2 | $ | 159.4 | $ | 149.8 | ||||||||||||||||||
(1) Included in other (expense), net on the consolidated statements of income (loss). | ||||||||||||||||||||||||||
(2) Foreign exchange (gains) losses include (gains) losses from remeasuring cash, receivables, payables and intercompany balances denominated in foreign currencies and (gains) losses on foreign exchange forward contracts. In the third quarter of 2025, the company ceased its use of foreign currency forward contracts. | ||||||||||||||||||||||||||
(3) Included in selling, general and administrative expenses and other (expense), net within the consolidated statements of income (loss). | ||||||||||||||||||||||||||
(4) Reduced for depreciation and amortization included above. | ||||||||||||||||||||||||||
(5) Other expense, net as reported on the consolidated statements of income (loss) less pension and postretirement expense, foreign exchange (gains) losses, net, loss (gain) on debt extinguishment, interest income and items included in certain legal and environmental matters and cost reduction and other expenses. | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenue | $ | 471.5 | $ | 460.2 | $ | 1,382.6 | $ | 1,375.6 | ||||||||||||||||||
| Net loss attributable to Unisys Corporation as a percentage of revenue | (42.6) | % | (67.1) | % | (24.0) | % | (26.1) | % | ||||||||||||||||||
| Non-GAAP net (loss) income attributable to Unisys Corporation as a percentage of revenue | (1.8) | % | (1.3) | % | (1.7) | % | 0.4 | % | ||||||||||||||||||
| Adjusted EBITDA as a percentage of revenue | 12.7 | % | 10.5 | % | 11.5 | % | 10.9 | % | ||||||||||||||||||
16
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
OPERATING PROFIT (LOSS)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Operating profit (loss) | $ | 23.7 | $ | (33.5) | $ | 7.0 | $ | 1.9 | ||||||||||||||||||
Goodwill and intangible asset impairment | — | 55.0 | 48.7 | 55.0 | ||||||||||||||||||||||
Certain legal matters (1) | 1.9 | 0.7 | 3.3 | 1.3 | ||||||||||||||||||||||
Cost reduction and other expenses (2) | 8.0 | 2.2 | 18.9 | 14.1 | ||||||||||||||||||||||
Pension and postretirement expense (1) | 0.4 | 0.4 | 1.2 | 1.2 | ||||||||||||||||||||||
| Non-GAAP operating profit | $ | 34.0 | $ | 24.8 | $ | 79.1 | $ | 73.5 | ||||||||||||||||||
| Revenue | $ | 471.5 | $ | 460.2 | $ | 1,382.6 | $ | 1,375.6 | ||||||||||||||||||
| Operating profit (loss) percent | 5.0 | % | (7.3) | % | 0.5 | % | 0.1 | % | ||||||||||||||||||
| Non-GAAP operating profit percent | 7.2 | % | 5.4 | % | 5.7 | % | 5.3 | % | ||||||||||||||||||
(1) Included in selling, general and administrative on the consolidated statements of income (loss). | ||||||||||||||||||||||||||
(2) Included in cost of revenue, selling, general and administrative and research and development on the consolidated statements of income (loss). | ||||||||||||||||||||||||||
17