Slides
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Third Quarter Financial Results Mike Thomson Chief Executive Officer & President Deb McCann Chief Financial Officer NOVEMBER 4, 2026
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Disclaimer Forward - Looking Statements This presentation contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amende d, 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 - loo king 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 behav ior 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 wi th 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 thos e e xpressed or implied by these forward - looking statements, we caution readers not to place undue reliance on these statements. Forward - looking statements in this presentation and the accompanying release in clude, 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 efficien cie s 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 - bil l, 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 c urr ency 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 i n 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 set tlements, 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 contain ed 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 presentation is representative as of the date of this presentation only, and any forward - looking st atement 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 con nection 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 incl udi ng 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. Non - GAAP Information This presentation includes certain non - GAAP financial measures that exclude certain items such as pension and postretirement exp ense; goodwill and intangible asset impairment charges, foreign exchange (gains) losses, debt extinguishment, certain legal and other matters related to professional services and legal fees, includi ng 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 ar e 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 diffi cul t 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 usef ul 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 c omp any’s ongoing operating performance. Non - GAAP financial measures are often provided and utilized by the company’s management, analysts, and investors to enhance comp arability 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 sho uld 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 com parable financial measures calculated and reported in accordance with GAAP can be found in the appendix of this presentation 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 bee n p rovided pursuant to the requirements of SEC Regulation G.
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Operating Profit & Free Cash Flow Sales Metrics Total contract value (TCV) of $594M, up 43% YoY and 41% sequentially Strong new business TCV of $221M, up 78% YoY and 15% sequentially Trailing twelve months (TTM) book - to - bill for total company and TS&S of 1.2x and 1.3x, respectively, and backlog of $2.9B at quarter - end, up 3% YoY and 4% sequentially Reaffirming 2026 full - year non - GAAP operating profit margin guidance of 9.0% to 11.0% Operating profit margin of 5.0 % . N on - GAAP operating profit margin of 7.2%, above expectations and up 180 bps YoY Operating cash flow of ($36M) and free cash flow of ($58M) inclusive of ~$30M cash contributions to global pensions and ~$37M interest payments on the 2031 Senior Secured Notes Estimated $30M to $40M improvement in the global net pension deficit from 2025 year - end 3Q26 Financial Highlights Revenue Raising revenue guidance to a decline of (3.0%) to (1.5%) in constant currency (CC) or (0.4%) to 1.1% as reported. Prior guidance was a revenue decline of (5.0%) to (3.5%) in CC Revenue increased 2.5% year - over - year (YoY) and 0.6% in CC, driven by growth in Technology Solutions & Services (TS&S) 2.6% YoY growth in TS&S or 0.9% in CC, above expectations due to incremental volume from new business at existing clients ClearPath revenue was abov e expectations Gross Margin Gross margin expanded 120 basis points (bps) YoY to 26.7%, led by a higher software mix in ClearPath renewals ClearPath gross margin reached 73.1%, up from 56.6% a year ago TS&S gross margin increased 50 bps year - to - date to 18.5%, driven by delivery efficiency and higher - value solutions
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Transform AI Infrastructure Assessment Data Environment Readiness AI Governance Framework Orchestrate Develop Develop the foundation for enterprise AI Apply AI to transform operations Orchestrate AI securely, responsibly, at scale Agentic Workflow Deployment Intelligent Service Desk AI Workforce Transformation AI Managed Services Security & Compliance Layer Continuous Optimization The Unisys AI framework
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Frontier Models LLMs Inference Model hosting Agentic Industry Outcomes AI agents & workflows Vertical AI use cases Digital workforce Data & Infrastructure Cloud/GPU compute Private AI Data governance AIOps & Orchestration Integration Retrieval Augmented Generation models Observability & cost optimization Simplifying a complex AI ecosystem for our clients Develop the foundational models, data and compute that power enterprise - grade AI. Transform operations with agents, Retrieval Augmented Generation ( RAG ) and vertical use cases tuned to each industry. Orchestrate the full stack end - to - end so models, data, and workflows deliver measurable outcomes at scale. AI Technology Stack ANTENNA
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Value - added Solutions Solutions designed to support contemporary application development as well as data sharing to and from the CPF environment, providing flexibility to power enterprise AI with the high - value client data generated on CPF platforms Services for Optimal Results Enterprise experts maximize business outcomes through a comprehensive range of services from technical support to hosting and running client environments so clients know they can rely on CPF for decades to come. Deployment Options Today’s CPF runs seamlessly in AWS and Azure, a private cloud, or on traditional integrated systems, future - proofing investments for evolving hybrid multi - cloud strategies of clients seeking to manage rising costs of compute driven by AI adoption Application Environment Evolve and enhance applications with capabilities ranging from sophisticated data analysis to modern development environments to updated user experiences . AB Suite ® DataExchange ePortal The Modern ClearPath ® Ecosystem ClearPath ® Forward Professional and Managed Services Public Cloud MS Azure or AWS Private Cloud VMware or bare - metal Pre - integrated Systems Unisys, on - prem, or co - lo hosted CPF Ecosystem Operating Environments Providing unmatched security, scalability, and speed that is extremely difficult to replicate, especially given decades of client data and customization embedded in our platforms CPF Operating Systems Secure, high - speed and volume compute environments Designed for mission - critical workloads Continuously adapting and expanding Certified to run wherever the client needs Unisys Applications Client Applications Partner Applications Secure, scalable operating systems with the flexibility to enable enterprise AI workflows
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$460 $377 $ 472 $ 387 Total Company TS&S 3Q Revenue ($M) COMPANY +2.5% YoY +0.6% CC 1 YoY DWS CA&I ECS $133 $141 2025 2026 $180 $180 2025 2026 $125 $130 2025 2026 Up +3.9% as reported, or up +1.7% in CC Down (0.1%) as reported, or down (1.2%) in CC Up +5.6% as reported, or up +2.7% in CC +2.6% YoY +0.9% CC YoY 2025 2026 2025 2026 CC revenue growth primarily driven by higher hardware revenue CC revenue growth primarily driven by higher specialized project work in business process solutions CC 1 revenue for total company was relatively flat. TS&S revenue growth was primarily driven by new business with existing clients, partially offset by lower volume from known client attrition CC revenue decline reflects client attrition partially offset by new business and higher volumes with existing clients
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3Q 2026 Revenue Profile 18% ClearPath Solutions 82% TS&S Solutions MIX OF TOTAL COMPANY REVENUE Geography Client Sector Segments 38% 30% 28% 4% 40% 27% 17% 16% 35% 33% 32% CA&I ECS DWS All Other US & Canada EMEA Asia Pacific Latin America Financial Commercial Public Highly diverse revenue streams with large base of recurring revenue
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25.5% 18.6% 26.7% 16.6% Total Company TS&S 3Q Gross Margin 16.2% 9.5% 2025 2026 19.6% 20.6% 2025 2026 46.2% 55.5% 2025 2026 +100 bps YoY +930 bps YoY (670) bps YoY 2025 2026 2025 2026 Total company margin expansion driven by a higher mix of software licenses relative to hardware within ClearPath renewals. TS&S margin contraction primarily driven by higher cost reduction charges COMPANY DWS CA&I ECS Margin expansion primarily driven by delivery improvements Margin contraction primarily due to known client attrition, and increa sed implementation and delivery costs including investments in Agentic Service Desk +120 bps YoY (200) bps YoY Margin expansion primarily driven by a higher mix of software licenses relative to hardware within ClearPath renewals
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3Q26 cash used for operations was impacted by the timing of cash interest payment associated with the 2031 Senior Secured Notes. 3Q25 included a one - time receipt of $25M related to a settled legal matter ($34) $24 $25 $34 2025 2026 ($309) ($201) $48 $60 2025 2026 3Q Profitability and Free Cash Flow ($M, except per share data) 3Q GAAP & Non - GAAP 1 Operating Profit (Loss) & Margins 3Q GAAP Net Income (Loss) & Adj. EBITDA 1 and Margins 5.0% 5.4% (7.3%) 7.2% 12.7% ($4.33) ($2.76) ($0.08) ($0.12) 2025 2026 3Q GAAP & Non - GAAP 1 Diluted Earnings Per Share 3Q Operating Cash Flow & Free Cash Flow 1 10.5% GAAP Operating Profit margin of 5.0%, up from (7.3%) in 3Q25 which included a non - cash charge of $55M ; Non - GAAP Operating Margin of 7.2% exceeded expectations; GAAP net loss and diluted loss per share include impact of $151M non - cash settlement expense, net of tax, related to the annuity purchase transaction executed in 3Q which transferred ~$200M of pension liabilities to a third - party insurer as part of our pension removal strategy GAAP Non - GAAP 1 Operating Cash Flow Free Cash Flow 1 (67.1%) (42.6%) $38 ($36) $20 ($58) 2025 2026
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3Q EBITDA and Cash Flow Detail $M 3Q26 3Q25 YTD26 YTD25 EBITDA 1 ($ 138.2) ($ 257.5) ($ 164.2) ($ 223.9) ADJUSTED EBITDA 1 $ 59.7 $ 48.2 $ 159.4 $ 149.8 ADJUSTED EBITDA MARGIN 1 12.7% 10.5% 11.5% 10.9% CASH (USED FOR) PROVIDED BY OPERATIONS ($ 35.8) $ 38.0 ($ 66.5) ($ 244.9) CAPITAL EXPENDITURES ($ 21.9) ($ 18.1) ($ 65.7) ($ 58.5) FREE CASH FLOW 1 ($ 57.7) $ 19.9 ($ 132.2) ($ 303.4) PRE - PENSION AND POSTRETIREMENT FREE CASH FLOW 1 ($ 26.8) $ 50.5 ($ 43.2) $ 14.8 ADJUSTED FREE CASH FLOW 1 ($ 18.7) $ 30.3 ($ 14.2) $ 9.2
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$M SEPTEMBER 30, 2026 SENIOR SECURED NOTES 1 $ 698.4 FINANCE LEASES AND OTHER DEBT 43.9 TOTAL DEBT EXCLUDING PENSION DEFICIT $ 742.3 GLOBAL NET PENSION DEFICIT (AS OF DECEMBER 31, 2025) 2 $448.5 TOTAL DEBT $ 1,190.8 CASH $264.2 NET LEVERAGE EXCLUDING PENSION DEFICIT $ 478.1 NET LEVERAGE $ 926.6 LTM ADJUSTED EBITDA $ 288.4 NET LEVERAGE RATIO EXCLUDING PENSION DEFICIT 1.7x NET LEVERAGE RATIO 3.2x Leverage Detail
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Deleveraging as a core focus Successful execution of our strategy improves our leverage position Puts us in a position to fully remove the U.S. qualified defined benefit pension plans in 3 - 4 years 0 200 400 600 800 1000 1200 1400 2023 2024 2025 2026E 2027E 2028E 2029E $M Sr. Secured Notes & Other U.S. QDB Pension Deficit All Other Plans Targeting net leverage (including pension) reduction of at least one turn 3.2 x September 30, 2026 ~ 2.0 x year - end 2029 Pension contributions expected to translate to ~$200M+ of deficit reduction 1 from 2025 to year - end 2029 FROM TO
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(Optional) Change background color: Right click > Format Background… > Solid fill > Select either White, Green (Accent 1) or Lig ht Green (Accent 2). Revising Financial Guidance Full - Year 2026 Improving revenue growth Reaffirming profitability (3.0 % ) to (1.5 % ) Raising from (5.0%) to (3.5%) Constant Currency Revenue Growth Non - GAAP Operating Profit Margin 9.0 % to 11.0 % • Free cash flow of ~($25M) • Capital expenditures of ~$85M • Cash taxes of ~$70M • Net interest payments of ~$70M • Other payments, primarily restructuring, of ~$45M • Pension and postretirement contributions of ~$100M • Revenue growth guidance translates to reported revenue growth of (0.4%) to 1.1% based on exchange rates as of September 30, 2026 • Assumes reported ClearPath revenue of approximately $425 million • Assumes TS&S constant currency revenue growth of (3.0%) to (1.0%) Other 2026 Expectations
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Appendix
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Potential Economic Benefit of Tax Assets (as of December 31, 2025) $M DESCRIPTION NET DEFERRED TAX ASSETS 1 FUTURE AVAILABLE REDUCTIONS IN TAXABLE INCOME U.S. NOLS AND TAX CREDITS: NET OPERATING LOSS – FEDERAL & STATE $ 583 $1,817 TAX CREDITS 71 340 PENSION AND OTHER: PENSION 83 331 OTHER DEFERRED TAX ASSETS 156 626 TOTAL AVAILABLE U.S. $ 893 $3,114 NON - U.S. FOREIGN TAX ATTRIBUTES NET OPERATING LOSS – NON - U.S. $ 259 $ 1,014 PENSION AND OTHER – NON - U.S. 86 349 TOTAL AVAILABLE NON - U.S. $ 345 $ 1,363 TOTAL AVAILABLE $ 1,238 $ 4,477 VALUATION ALLOWANCE (1,172) TOTAL NET DEFERRED TAX ASSET $ 66
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Technology Solutions & Services (TS&S) and ClearPath Revenue and Gross Profit $M 3Q26 3Q25 YTD26 YTD25 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 MARGIN 73.1% 56.6% 64.2% 62.3% TS&S GROSS PROFIT MARGIN 16.6% 18.6% 18.5% 18.0% GROSS PROFIT MARGIN 26.7% 25.5% 25.7% 25.8%
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Non - GAAP Operating Profit $M 3Q26 3Q25 YTD26 YTD25 GAAP OPERATING PROFIT (LOSS) $ 23.7 ($ 33.5) $ 7.0 $ 1.9 GOODWILL & 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 GAAP OPERATING PROFIT (LOSS) MARGIN 5.0% (7.3%) 0.5% 0.1% NON - GAAP OPERATING PROFIT MARGIN 7.2% 5.4% 5.7% 5.3%
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Adjusted EBITDA Reconciliation $M 3Q26 3Q25 YTD26 YTD25 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 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 AN D $16.0, RESPECTIVELY 1 16.3 13.5 43.8 18.5 PROVISION FOR INCOME TAXES 21.8 16.3 51.3 46.9 DEPRECIATION 11.4 9.5 35.0 29.0 AMORTIZATION 12.6 12.4 38.4 41.5 EBITDA ($ 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 (INCOME), NET ADJUSTMENT 5 1.4 0.5 3.9 2.3 ADJUSTED EBITDA $ 59.7 $ 48.2 $ 159.4 $ 149.8 REVENUE $ 471.5 $ 460.2 $ 1,382.6 $ 1,375.6 ADJUSTED EBITDA MARGIN 12.7% 10.5% 11.5% 10.9%
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Non - GAAP Net Income $M EXCEPT SHARE AND PER SHARE DATA 3Q26 3Q25 YTD26 YTD25 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 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 & INTANGIBLE ASSET IMPAIRMENT NET OF TAX - $ 55.0 $ 48.7 $ 55.0 FX LOSSES (GAINS), NET NET OF TAX ($ 5.8) $ 3.7 ($ 10.1) $ 4.1 LOSS (GAIN) ON DEBT EXTINGUISHMENT NET OF TAX - $ 0.2 ($ 0.2) $ 7.0 CERTAIN LEGAL MATTERS, NET NET OF TAX $ 9.1 $ 0.7 $ 10.5 $ 1.0 ENVIRONMENTAL MATTERS NET OF TAX $ 0.1 $ 0.2 $ 0.6 $ 1.5 COST REDUCTION & 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
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Non - GAAP Diluted Earnings Per Share $M EXCEPT SHARE AND PER SHARE DATA 3Q26 3Q25 YTD26 YTD25 NON - GAAP NET (LOSS) INCOME ATTRIBUTABLE TO UNISYS CORPORATION ($ 8.5) ($ 5.9) ($ 24.0) $ 4.9 WEIGHTED AVERAGE SHARES (THOUSANDS) 72,928 71,301 72,548 70,889 PLUS INCREMENTAL FROM ASSUMED VESTING OF EMPLOYEE STOCK PLANS - - - - ADJUSTED WEIGHTED AVERAGE SHARES (THOUSANDS) 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 OF EMPLOYEE STOCK PLANS - - - 2,711 NON - GAAP ADJUSTED WEIGHTED AVERAGE SHARES (THOUSANDS) 72,928 71,301 72,548 73,600 GAAP DILUTED LOSS PER SHARE NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 201.0) ($ 308.9) ($ 332.1) ($ 358.5) DIVIDED BY ADJUSTED WEIGHTED AVERAGE SHARES (THOUSANDS) 72,928 71,301 72,548 70,889 DILUTED LOSS PER SHARE ($ 2.76) ($ 4.33) ($ 4.58) ($ 5.06) NON - GAAP DILUTED (LOSS) EARNINGS PER SHARE NON - GAAP NET (LOSS) INCOME ATTRIBUTABLE TO UNISYS CORPORATION ($ 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
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Non - GAAP Net Income (Loss) Margin $M 3Q26 3Q25 YTD26 YTD25 REVENUE $ 471.5 $ 460.2 $ 1,382.6 $ 1,375.6 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 201.0) ($ 308.9) ($ 332.1) ($ 358.5) NON - GAAP NET (LOSS) INCOME ATTRIBUTABLE TO UNISYS ($ 8.5) ($ 5.9) ($ 24.0) $ 4.9 NET (LOSS) ATTRIBUTABLE TO UNISYS CORPORATION AS A % OF REVENUE (42.6%) (67.1%) (24.0%) (26.1%) NON - GAAP NET (LOSS) INCOME ATTRIBUTABLE TO UNISYS CORPORATION AS A % OF REVENUE (1.8%) (1.3%) (1.7%) 0.4%
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Adjusted Free Cash Flow $M 3Q26 3Q25 YTD26 YTD25 CASH (USED FOR) PROVIDED BY OPERATIONS ($ 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 PAYMENTS - (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
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Definitions of Non - GAAP Financial Metrics Non - GAAP operating profit – This measure excludes pretax pension and postretirement expense, pretax goodwill and intangible asset impairment charges and pre tax charges or gains associated with certain legal matters related to settlements, professional services and legal fees, including legal def ens e costs, associated with certain legal proceedings, and cost - reduction activities and other expenses. EBITDA & adjusted EBITDA – Earnings before interest, taxes, depreciation and amortization (EBITDA) is calculated by starting with net income (loss) attr i butable to Unisys Corporation common shareholders and adding or subtracting the following items: net income (loss) attributable to noncontrolli ng interests, interest expense (net of interest income), provision for (benefit from) income taxes, depreciation and amortization. Adjusted EBITDA further excludes pension a nd postretirement expense; goodwill and intangible asset impairment charges, foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, pr ofessional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; co st 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. 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 ma tters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to pr evi ously disposed businesses; and cost reduction activities including workforce reduction actions, lease abandonment costs, asset impairment charges and other costs associate d w ith 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 deferre d tax expense and benefits recognized under GAAP for these items. Free cash flow – Represents cash flow from operations less capital expenditures. Pre - pension and postretirement free cash flow (Pre - pension free cash flow) – Represents free cash flow before pension and postretirement contributions. Adjusted free cash flow – Represents free cash flow less cash used for pension and postretirement funding; debt extinguishment, certain legal matters r ela ted to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental ma tters related to previously disposed businesses; and cost reduction activities and other payments.
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ClearPath® – Represents software license and related support services, primarily ClearPath Forward®, within the company's ECS segment. Technology Solutions & Services ( TS&S ) – These measures exclude revenue, gross profit and gross profit margin in connection with software license and support services wi thin the company’s ECS segment. The company provides these measures to allow investors to isolate the impact of software license renew als , 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. Constant currency – A significant amount of the company’s revenue is derived from international operations. As a result, the company’s revenue ha s b een 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 con stant 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 compar iso ns 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 ra te rather than the actual exchange rates in effect during the respective periods. Backlog – Represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or pe rformed. The company believes that actual revenue reflects the most relevant measure necessary to understand the company’s results of operations, but backlog ca n b e 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 conversio n o f 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 pen alt y, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. Investors are cautioned that backlog should n ot be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP. Total Contract Value (TCV) – Represents the initial estimated revenue related to contracts signed in the period without regard for early termination or re ven ue recognition rules. Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represent s T CV 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 res ults 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 T CV 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 solution s s old, 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 mod ifi cations, 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. Book - to - bill – Represents total contract value booked divided by revenue in a given period. New Business – Represents expansion and new scope for existing clients and new logo contracts. Definitions of Other Metrics