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Earnings Presentation Q2 2026 Results July 30, 2026
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2 Forward-Looking Statements This presentation and other written or oral statements made from time to time by management contain “forward looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve certain risks and uncertainties. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”, “would”, “could”, “can”, “should”, “targeting”, “projecting”, “driving”, “future”, “plan”, “predict”, “may” and similar expressions are intended to identify forward-looking statements. The Company’s actual results may differ significantly from the results discussed in the forward-looking statements. These statements reflect management’s current beliefs and assumptions and are subject to a number of other factors that may cause actual results to differ materially. Such factors include but are not limited to: applicable market conditions; global macroeconomic conditions, including inflation, slower growth or recession, delays or disruptions in the global supply chain, higher interest rates, and wars and other conflicts; our ability to succeed in a competitive environment, including by developing new products and service offerings and preserving our existing products and market share as well as repositioning our business in the face of customer preference, technological, and other change, such as evolving return-to-office and hybrid working trends; failure of our customers, vendors, and logistics partners to perform their contractual obligations to us; our ability to attract, train, and retain key personnel; execution risks around our Transformation; the risk of breaches of our security systems due to cyber, malware, or other intentional attacks that could expose us to liability, litigation, regulatory action or damage our reputation; our ability to obtain adequate pricing for our products and services and to maintain and improve our cost structure; changes in economic and political conditions, licensing requirements, and tax laws in the United States and in the foreign countries in which we do business; the risk that multi-year contracts with governmental entities could be terminated prior to the end of the contract term and that civil or criminal penalties and administrative sanctions could be imposed on us if we fail to comply with the terms of such contracts and applicable law; interest rates, cost of capital, and access to credit markets; risks related to our indebtedness; the imposition of new or incremental trade protection measures such as tariffs and import or export restrictions; funding requirements associated with our employee pension and retiree health benefit plans; changes in foreign currency exchange rates; the risk that we may be subject to new or heightened regulatory or operation risks as a result of our, or third parties,’ use or anticipated use of artificial intelligence technologies; the risk that our operations and products may not comply with applicable worldwide regulatory requirements, particularly environmental regulations and directives and anti-corruption laws; the outcome of litigation and regulatory proceedings to which we may be a party; laws, regulations, international agreements and other initiatives to limit greenhouse gas emissions or relating to climate change, as well as the physical effects of climate change; our ability to successfully integrate the Lexmark business and realize the anticipated benefits thereof, including expected synergies; and other factors that are set forth from time to time in the Company’s Securities and Exchange Commission filings, including the combined Annual Report on Form 10-K of Xerox Holdings and Xerox Corporation. These forward-looking statements speak only as of the date hereof or of the date to which they refer, and the Company assumes no obligation to update or revise any forward-looking statements as a result of new information or future events or developments, except as required by law.
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3 Q2 2026 Key Financial Measures 1 Adjusted measures, Pro Forma Measures, Free Cash Flow and Constant Currency (CC): see Non-GAAP Financial Measures. 2 Q2 2026 includes a $105 million pre-tax benefit from the recognition of the IEEPA tariff receivables. 3 Q4 2026E assumes: adjusted EBITDA of $858 million (midpoint of updated 2026 adjusted operating income guidance, inclusive of $105 million benefit for IEEPA tariff receivables, + D&A / Stock-based compensation of $278 million); total debt of $4,214 million (Q2 debt balance less remaining 2026 debt obligations of $21 million + unamortized debt issuance costs and discount premiums of $12 million); and cash, cash equivalents and restricted cash of $841 million (Q2 cash, cash equivalents and restricted cash + $404 million implied free cash flow guidance for the H2 2026 net of $80 million already received from sale of IEEPA tariff receivables – currently accounted for within Financing cash flow – less H2 2026 debt obligations and dividends). We are not assuming additional debt repurchases or benefits from the warrant distribution. 10.6% 202622025 Revenue ($B) 2026 % Change: 22.0% @ AC, 21.2% @ CC1; Pro Forma1 (PF) % change: (6.5)% @ AC Adjusted1 Operating Margin $(30) 20262025 Operating Cash Flow $(11) $37 Leverage Framework3 Free Cash Flow1 ($M) Prior Q4 2026EQ1 2026 $1.92 20262025 $11 $1.58 3.7% 7.0x 6.0x 5.6x 4.5x Total Debt to TTM Adj1 EBITDA Net Debt to TTM Adj1 EBITDA 5.9x 5.1x Q2 2026 4.9x 3.9x Q4 2026E
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Strategic Priorities for 2026 • Grow market share through a more vertically integrated entry-level portfolio, cost-efficient and serviceable mid-range, and Production launches in new & adjacent segments • Leverage improved account coverage and integrated sales engine to accelerate IT Solutions & Digital Services adoption across Xerox’s existing client base Increase Profitability • Deliver $275-325 million of in-year gross cost reductions through integration synergies and Transformation initiatives • Drive structural efficiency through optimization of captive shared service centers, consolidation of IT systems, and operational simplification Reduce Leverage 1 Free Cash Flow: see Non-GAAP Financial Measures. • Optimize free cash flow1 through working capital discipline and utilization of finance receivables funding programs • Reduce debt through cash flow generation, opportunistic repurchases, and warrant distribution benefits Stabilize Revenue 4
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5 Financial Results Summary ($ in millions, except per share data) 1 Primarily reflects IT hardware, software solutions & services sold by the IT Solutions segment to Print and Other. 2 Adj Measures and Constant Currency (CC): see Non-GAAP Financial Measures. Pro Forma Measures: see Pro Forma Financial Measures. Profitability metrics for Q2 2026 include a $105 million pre-tax benefit from the recognition of the IEEPA tariff receivables. 3 Reflects certain G&A expenses primarily related to corporate functions that are not allocated to reportable segments. 4 Q2 2026 GAAP (Loss) per share includes a gain on the early extinguishment of debt. Q2 2025 GAAP (Loss) per share includes interest and financing-related charges related to the Lexmark acquisition financing and tax expense related to interest expense that was not deductible according to tax guidelines in place as of June 30, 2025. For more details, please see the non-GAAP section of this quarter’s earnings press release. P&L Measure Q2 2026 Q2 2025 % Chg YOY PF2 % Chg YOY Revenue $1,922 $1,576 22% AC / 21% CC2 (7)% AC Print & Other 1,733 1,366 IT Solutions 194 213 Intersegment elimination1 (5) (3) Adj. Op. Income2 203 59 244% Print & Other 220 65 IT Solutions 7 10 Corporate Other3 (24) (16) Non-financing interest expense 100 55 82% Net Income (Loss)4 13 (106) NM Adj. Net Income (Loss)2 55 (77) NM GAAP Income (Loss) per Share4 0.07 (0.87) NM Adj. Income (Loss) per Share2 0.38 (0.64) NM P&L Ratios Q2 2026 Q2 2025 PF2 B/(W) Adj. Gross Margin2 36.4% 29.3% 610 bps RD&E % 3.5% 2.7% SAG % 22.5% 23.4% Adj. Operating Margin2 10.6% 3.7% 540 bps Adj. Tax Rate2 31.3% 527.8%
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(30%) (10%) 10% 2Q25 3Q25 4Q25 1Q26 2Q26 Equipment Revenue (AC) Total Installs 6 Print & Other Segment Results % Chg YOY PF1 % Chg YOY (in millions) Q2 2026 Q2 2025 AC CC1 AC Total Revenue $1,733 $1,366 26.9% 26.0% (6.1)% Equipment 387 336 15.2% 15.0% (13.0)% Post Sale 1,346 1,030 30.7% 29.7% (3.9)% Adj. Gross Profit1,2 665 426 56.1% 55.2% 13.3% Margin2 38.4% 31.2% 660 bps Segment Profit2 220 65 238.5% 216.1% 89.7% Margin2 12.7% 4.8% 640 bps 1 Adjusted Measures and Constant Currency (CC): see Non-GAAP Financial Measures. Pro Forma Measures: see Pro Forma Financial Measures. 2 Profitability metrics for Q2 2026 include a $105 million pre-tax benefit from the recognition of the IEEPA tariff receivables. Gross margin adjustments consist of a fixed asset-related purchase accounting adjustment related to the Lexmark acquisition of $12 million in Q2 2026, and inventory- related impacts associated with the exit of certain Production Print manufacturing operations of $10 million in Q2 2025. 3 Q2 2025 reflects legacy Xerox activity only. Q3 2025 through Q2 2026 is presented on a pro forma basis, as the comparable prior-year periods include Lexmark results. 4 Installs were restated in Q2 2026 and prior periods to align with the go-to-market strategy. Changes include shifting Light Production/EPC Low from Mid-Range to High-End and certain Entry products from Color to B&W or B&W to Color. Based on the old methodology, Total Installs would have been down 14% YOY for Mid-Range and down 9% YOY for High-End in Q2 2026. Total Installs vs Equipment Revenue YOY3 Q2 Installs4 & Equipment Revenue B/(W) YOY3 Color B&W Total Installs PF Revenue (AC) Entry 6% (8)% (4)% Mid-Range (14)% (9)% (13)% High-End (14)% (35)% (19)% Total (1)% (8)% (6)% (13)%
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Pro Forma1 Non-GAAP IT Solutions Gross Billings Pro Forma1 Non-GAAP Gross Billings ($M) $150 $200 $250 $300 $188 Q1'24 $202 Q2'24 $207 Q3'24 $175 Q4'24 $187 0% Q1'25 $218 +8% Q2'25 $263 +27% Q3'25 $198 +13% Q4'25 $225 +21% Q1'26 $228 +4% Q2'26 — 2024 — — 2025 — — 2026 — Q1'24 Q2'24 Q3'24 Q4'24 FY 2024 Q1'25 Q2'25 Q3'25 Q4'25 FY 2025 Q1'26 Q2'26 Pro Forma¹ Non-GAAP Gross Billings $188 $202 $207 $175 $773 $187 $218 $263 $198 $867 $225 $228 Less: Agent Arrangements and Other² — — — — — $23 $7 $37 $40 $106 $69 $34 Revenue — — — — — $164 $213 $226 $158 $761 $156 $194 Segment Profit³ — — — — — $5 $10 $18 $9 $42 $6 $7 Quarters might not sum to annuals due to rounding. ¹ 2024 reflects the ITSavvy acquisition as if it had been completed on January 1, 2024. 2025 and 2026 reflect actual results. ² Agent arrangements reflect sales of third-party supplier service contracts, SaaS arrangements and certain fulfillment contracts, per ASC 606 principal-vs-agent guidance and other deferrals and accruals. Pro forma gross billings is shown to provide a consistent view of underlying business activity across periods. Mix is expected to stabilize over the 3-5-year contract renewal cycle. ³ Segment profit does not reflect the impact of Corporate Other SAG and G&A expenses that are not allocated to either of our reportable segments.
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8 IT Solutions Segment Results % Chg YOY (in millions) Q2 2026 Q2 2025 AC CC1 Total Revenue $194 $213 (8.9)% (9.0)% Products 140 153 (8.5)% (8.8)% Services 49 57 (14.0)% (14.0)% Intersegment revenue2 5 3 NM NM Gross Profit3 35 35 0% 0% Margin3 18.5% 16.7% Segment Profit3 7 10 (30.0)% (30.0)% Margin3 3.7% 4.8% 1 Constant Currency (CC): see Non-GAAP Financial Measures. 2 Reflects revenue, primarily IT hardware, software solutions and services, sold by the IT Solutions segment to the Print and Other segment. 3 Gross and segment margin are net of Intersegment revenue. 4 KPIs are presented on a year-to-date basis. Key Performance Indicators4 – YTD 2026 11% Gross Billings YOY 6% Gross Bookings YOY Gross Billings • Double-digit growth in Infrastructure & Networking equipment and software • Double-digit growth in Endpoints • +9% growth YOY in Services & Solutions Gross Bookings • ~$134M opportunities sourced from legacy Xerox Print clients
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Cash Flow 1 Non-cash add-backs include depreciation & amortization (including equipment on operating lease), provisions, stock-based compensation, non-service retirement-related costs, restructuring and asset impairment charges and gain on sales of businesses and assets (as applicable). 2 Working Capital, net includes accounts receivable, accounts payable and inventory. 3 Includes equipment on operating leases (excluding its related depreciation) and finance receivables. 4 Includes other current and long-term assets and liabilities, accrued compensation, derivative assets and liabilities, other operating, net, distributions from net income of unconsolidated affiliates and changes in income tax assets and liabilities. 5 Includes restricted cash of $57 million in Q2 2026 and $536 million in Q2 2025. 6 Free Cash Flow: see Non-GAAP Financial Measures. 9 (in millions) Q2 2026 Q2 2025 Pre-tax Income (Loss) 31 (60) Non-Cash Add-Backs1 131 133 Restructuring Payments (19) (15) Pension Contributions (36) (33) Working Capital, net2 (79) (119) Change in Finance Assets3 56 62 Other4 (47) 21 Cash provided by (used in) Operations 37 (11) Cash used in Investing (9) (18) Cash (used in) provided by Financing (114) 618 Ending Cash, Cash Equivalents and Restricted Cash5 552 985 Free Cash Flow6 11 (30)
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10 Capital Structure • No major debt maturities until August 2028 — less than $180 million due through December 2027 Q2 Principal Debt Maturity Ladder ($M) Debt and Cash1 1 Cash, cash equivalents and restricted cash. 2 Adjusted Measures: see Non-GAAP Financial Measures. (in billions) Q2 2026 Q1 2026 Total Debt $(4.2) $(4.4) Less: Cash1 $0.6 $0.6 Net Debt $(3.6) $(3.8) Less: Financing Allocated Debt $1.3 $1.4 Net Core Debt $(2.3) $(2.4) Total Debt to TTM Adj.2 EBITDA 5.9x 7.0x Net Debt to TTM Adj.2 EBITDA 5.1x 6.0x Net Core Debt to TTM Adj.2 EBITDA 3.3x 3.8x $581 $531 $569 $131 $171 $646 $481 $21 $157 $752 $1,177 $1,050 $600 $250 $350 2026 2027 2028 2029 2030 2031 2035 2039 Senior Unsecured Notes Secured Debt
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11 Debt Details Instrument Principal ($M) Maturity Rate Amortization JV Senior Secured Term Loan $405 Feb-31 S + 812.5 ~$18.2M quarterly starting in Q4 2026 JV Preferred Equity $45 Feb-31 S + 1187.5 ~$2.0M quarterly starting in Q4 2026 Total JV Secured Debt $450 ABL Revolver - May-28 S + 150 Term Loan B $705 Nov-29 S + 400 Partial quarterly payment of $4.6M in Q2 2027; $22.5M quarterly starting in Q3 2027 1L Notes $400 Oct-30 10.25% 2L Notes $494 Apr-31 13.50% Total Xerox Corp Secured Debt (ex-JV Debt) (1) $1,599 2028 Senior Notes $556 Aug-28 5.50% 2029 Senior Notes $500 Nov-29 8.88% 2030 Convertible Senior Notes $400 Mar-30 3.75% 2030 Step-Up Senior Notes $250 Jun-30 13.00% $6.25M quarterly from Q1 2027 - Q3 2029; $12.5M quarterly thereafter 2035 Senior Notes $250 Mar-35 4.80% 2039 Senior Notes $350 Dec-39 6.75% Other Debt $2 Total Unsecured Debt $2,308 Principal Debt Balance $4,357 Total Debt Issuance Costs, Unamortized Interest ($134) Total Debt $4,223 1 Certain notes contain a covenant limiting secured borrow ing to a maximum of $2 billion.
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2026 Updated Full-Year Guidance1 S T A B I L I Z E R E V E N U E Approximately $7.6B Revenue I N C R E A S E P R O F I T A B I L I T Y $555-605M Adj.1 Operating Income R E D U C E L E V E R A G E ~$250M Free Cash Flow 1 K E Y C H A N G E S V S I N I T I A L E X P E C T A T I O N S 12 1 Adjusted Measures: see Non-GAAP Financial Measures. K E Y A S S U M P T I O N S Expected growth from prior year reflects full year of Lexmark, momentum in IT Solutions Gross Billings, and growth in Digital Services, partially offset by ongoing mid- range Print headwinds and lower XFS revenue reflecting a smaller finance receivables portfolio. Expected year-over-year improvement in adjusted1 operating income is driven primarily by $275-325 million of gross cost reductions, inclusive of integration synergies (~$175-225 million) and Transformation initiatives (~$100 million), partially offset by lower finance-related gross profit and higher product costs. Expected year-over-year improvement in free cash flow1 is driven by improved adjusted1 operating income, partially offset by higher interest expense and a reduction in finance receivable forward flow benefits. Up from above $7.5 billion ↑ Print & Other revenue outlook Up from $450-500 million ↑ Tariff receivables ↑ Higher Revenue & Synergies ↓ Drag from memory and oil prices, partially offset by lower YOY tariff costs Unchanged ↑ Proceeds from sale of tariff receivables ↑ Lower Capital Expenditures and Taxes: ↓ Working Capital ↓ Restructuring due to Higher Synergies ↓ Net Interest Expense (due to JV)
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13 Lexmark Synergies and Implementation Timeline Expected Phasing of Synergy Realization 2025A 2026E 2027E • Initial elimination of duplicative overhead • Rationalization of third party spend Cumulative Run-Rate Gross Cost Synergies Key Milestones ≥ $350 $146 In-Year One-time Cash Cost to Achieve <$25 $300 $75 $69 • Supply Chain and R&D optimization • Go-to-market realignment • Cost absorption through enhanced scale • Real Estate consolidation • IT infrastructure simplification • Optimized MPS delivery structure $ in millions YOY Benefit from Cost Synergies $35 $175-225 ~ $100 Previous: $50 Previous: ≥ $300 Previous: $150-200 Previous: $75-100 Previous: ~ $250
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14 Frequently Asked Questions Demand Environment 1 Adjusted Measures and Pro Forma Measures: see Non-GAAP and Pro Forma Financial Measures. Drivers of Higher 2026 Outlook IT Solutions Capital Structure Update How is the demand environment trending? What is the outlook for equipment sales? The overall demand environment continues to show signs of stabilization, with relative strength in Entry offsetting continued softness in Mid-Range. Total page volumes were down 1% year-over-year on a pro forma basis in Q2, a meaningful improvement from the 6% pro forma decline in Q1, and Supplies usage increased sequentially and was up modestly year-over-year on a pro forma basis. The total sales pipeline continues to track ahead of the same period last year. Pro forma equipment revenue declined 13% year-over-year in Q2, below Q1, partly driven by lower volumes due to higher backlog and timing of sales cycles, and mix. We expect these dynamics to normalize over the back half of the year, with equipment revenue expected to improve in H2 versus H1. Why did IT Solutions growth slow in Q2? Does that impact long -term confidence in the business? IT Solutions billings grew 4% year-over-year in Q2, a moderation from Q1, reflecting near-term headwinds and continued investment in seller productivity. These investments have weighed on short-term operating profit, as expected. Despite these headwinds, the pipeline is strong and growing, and we expect a better finish to the year with Q4 billings ahead of Q3 on a year-over-year basis. We also expect revenue trends to converge with billings as we move through 2026 and into 2027. The long-term prospects for IT Solutions remain strong, and the market opportunity is large and growing. What is your plan to further reduce leverage? Reducing leverage is a core priority and Q2 demonstrated meaningful progress. We lowered debt by $223 million sequentially, reducing gross leverage by 1.1 turns vs. Q1. Year-to-date, we have used approximately $101 million in cash to retire $200 million of debt in the open market — primarily 2028 notes — capturing $99 million of discount. Updated guidance implies gross leverage falling from 7.0x at Q1 to 4.9x at year-end. This assumes no additional open market repurchases or benefits from the warrant distribution program, either of which could provide further deleveraging upside. What are the reasons behind the increased 2026 revenue guidance? Revenue guidance was raised on a higher outlook for the Print & Other segment. We expect improvements to Equipment revenue in H2 2026 driven by the new A4 color devices and 9-Series mid-range platform, normalization of elevated Entry backlog, growth in Digital Services, and more favorable year-over-year comparisons. Supplies revenue has also trended favorably vs. internal expectations. Updated 2026 revenue guidance of approximately $7.6 billion implies H2 declines of approximately 4% year-over-year on a pro forma basis, which is supported by the drivers outlined above.
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15 Appendix
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16 Operating Trends ¹ Adjusted measures, Free Cash Flow and Constant Currency (CC): see Non-GAAP Financial Measures. Profitability metrics for Q2 2026 include a $105 million pre-tax benefit from the recognition of the IEEPA tariff receivable. The recognition of the receivable does not contribute to second quarter 2026 operating cash flow or free cash flow as the related cash benefit is expected to be realized in the second half of 2026, when payment is received from the U.S. government. 2 Q2 2026 GAAP Loss per share includes a gain on the early extinguishment of debt. Q1 2026 GAAP Loss per share includes a gain on the early extinguishment of debt. Full year 2025 GAAP Loss per share: Q1 includes a tax expense charge and financing-related charges; Q2 2026 includes interest and financing-related charges and a tax expense; Q3 2025 includes an inventory-related purchase accounting adjustment and a tax expense charge. Full year 2024 GAAP Loss per share includes a Transformation-related charge, a non-cash goodwill impairment charge, a tax expense charge, the write-off of intangibles, and Transformation & transaction-related costs. For details, please see the non-GAAP section of the latest earnings press release. (in millions, except EPS) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Total Revenue $6,221 $1,457 $1,576 $1,961 $2,028 $7,022 $1,846 $1,922 % Change (9.7)% (3.0)% (0.1)% 28.3% 25.7% 12.9% 26.7% 22.0% CC 1 % Change (9.5)% (1.1)% (1.1)% 27.0% 23.6% 12.2% 23.6% 21.2% Adj1 Operating Income $302 $22 $59 $65 $102 $248 $72 $203 Adj1 Operating Margin 4.9% 1.5% 3.7% 3.3% 5.0% 3.5% 3.9% 10.6% GAAP (Loss) EPS2 ($10.75) ($0.75) ($0.87) ($6.01) ($0.60) ($8.25) ($0.84) $0.07 Adj1 EPS (Loss) $0.97 ($0.06) ($0.64) $0.20 ($0.10) ($0.60) ($0.43) $0.38 Operating Cash Flow $511 ($89) ($11) $159 $208 $224 ($144) $37 Free Cash Flow1 $467 ($109) ($30) $131 $184 $133 ($165) $11 20262024 2025
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17 We have reported our financial results in accordance with generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below. We believe these non- GAAP measures allow investors to better understand the trends in our business and to better understand and compare our results. Management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Accordingly, we believe it is necessary to adjust several reported amounts, determined in accordance with GAAP, to exclude the effects of certain items as well as their related income tax effects. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our Condensed Consolidated Financial Statements prepared in accordance with GAAP. A reconciliation of the estimated post-acquisition impact on Adjusted Net Income (Loss) and EPS, Adjusted Operating Income and Margin, and Free Cash Flow to the closest GAAP financial measures, Net (Loss), EPS, Pre-tax Margin, and Operating Cash Flow, are not provided. GAAP measures for those periods are not available without unreasonable effort, in part as the timing of synergies and costs to achieve synergies related to the acquisitions are not available at this time. • Adjusted Net Income (Loss) and EPS (Restructuring and related costs, net, Amortization of intangible assets, and other discrete, unusual or infrequent items); • Adjusted Operating Income and Margin (Costs and expenses noted above as adjustments for our Adjusted Net (Loss) and EPS measure, as well as amounts included in Other (income) expenses, net, and certain other non-operating costs and expenses, and other discrete, unusual or infrequent items); • Free Cash Flow (Capital expenditures). Reconciliations of the non-GAAP financial measures below to the most directly comparable financial measures calculated and presented in accordance with GAAP are set forth below. Adjusted Earnings (Loss) Measures • Adjusted Net Income (Loss) and Earnings per share (Adjusted EPS) • Adjusted Effective Tax Rate • Normalized Adjusted Net (Loss) and (Loss) Per Share The above measures were adjusted for the following items: • Restructuring and related costs, net: Restructuring and related costs, net include restructuring and asset impairment charges as well as costs associated with our Transformation programs beyond those normally included in restructuring and asset impairment charges. Restructuring consists of costs primarily related to severance and benefits paid to employees pursuant to formal restructuring and workforce reduction plans. Asset impairment includes costs incurred for those assets sold, abandoned or made obsolete as a result of our restructuring actions, exiting from a business or other strategic business changes. Additional costs for our Transformation programs are primarily related to the implementation of strategic actions and initiatives and include third-party professional service costs as well as one-time incremental costs. All of these costs can vary significantly in terms of amount and frequency based on the nature of the actions as well as the changing needs of the business. Accordingly, due to that significant variability, we will exclude these charges since we do not believe they provide meaningful insight into our current or past operating performance nor do we believe they are reflective of our expected future operating expenses as such charges are expected to yield future benefits and savings with respect to our operational performance. • Amortization of intangible assets: The amortization of intangible assets is driven by our acquisition activity which can vary in size, nature and timing as compared to other companies within our industry and from period to period. The use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods • Non-service retirement-related costs: Our defined benefit pension and retiree health costs include several elements impacted by changes in plan assets and obligations that are primarily driven by changes in the debt and equity markets as well as those that are predominantly legacy in nature and related to employees who are no longer providing current service to the Company (e.g. retirees and ex-employees). These elements include (i) interest cost, (ii) expected return on plan assets, (iii) amortization of prior plan amendments, (iv) amortized actuarial gains/losses and (v) the impacts of any plan settlements/curtailments. Accordingly, we consider these elements of our periodic retirement plan costs to be outside the operational performance of the business or legacy costs and not necessarily indicative of current or future cash flow requirements. This approach is consistent with the classification of these costs as non-operating in Other (income) expenses, net. Adjusted earnings will continue to include the service cost elements of our retirement costs, which is related to current employee service as well as the cost of our defined contribution plans. • Transaction and related costs, net: Transaction and related costs, net are costs and expenses primarily associated with certain major or significant strategic M&A projects. These costs are primarily for third-party legal, accounting, Non-GAAP Financial Measures
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18 • consulting and other similar type professional services as well as potential legal settlements that may arise in connection with those M&A transactions. These costs are considered incremental to our normal operating charges and were incurred or are expected to be incurred solely as a result of the planned transactions. Accordingly, we are excluding these expenses from our Adjusted Earnings Measures in order to evaluate our performance on a comparable basis. • Discrete, unusual or infrequent items: We exclude these item(s), when applicable, given their discrete, unusual or infrequent nature and their impact on the comparability of our results for the period to prior periods and future expected trends. • Stock-based compensation • Goodwill impairment charge • Inventory-related impact - exit of certain Production Print manufacturing operations • Transformation-related costs • Lexmark – settlement of pre-existing employment agreements • Lexmark – inventory-related purchase accounting adjustment • Lexmark – fixed asset-related purchase accounting adjustment • Lexmark acquisition financing – escrow interest, net • Deferred tax valuation allowance • Divestitures • Loss (gain) on early extinguishment of debt • Income tax on PARC donation • Income tax on goodwill impairment • Commitment fee expense Adjusted Operating Income and Margin We calculate and utilize adjusted operating income and margin measures by adjusting our reported pre-tax (loss) and margin amounts. In addition to the costs and expenses noted as adjustments for our adjusted earnings measures, adjusted operating income and margin also exclude the remaining amounts included in Other (income) expenses, net, which include certain other non-operating costs and expenses. We exclude these amounts in order to evaluate our current and past operating performance and to better understand the expected future trends in our business. Adjusted Gross Profit and Margin We calculate non-GAAP gross Profit and Margin by excluding the inventory impact related to the exit of certain Production Print manufacturing operations, included in Cost of services, maintenance and rentals. We also exclude certain accounting adjustments associated with the Lexmark transaction. Adjusted EBITDA Earnings before interest, taxes, depreciation and amortization adjusted for additional items, when applicable, given their discrete, unusual or infrequent nature and their impact on comparability of our results for the period to prior periods and future expected trends. Constant Currency (CC) To better understand trends in our business, we believe that it is helpful to adjust revenue to exclude the impact of changes in the translation of foreign currencies into U.S. dollars. We refer to this adjusted revenue as “constant currency.” This impact is calculated by translating current period activity in local currency using the comparable prior year period's currency translation rate. This impact is calculated for all countries where the functional currency is not the U.S. dollar. Management believes the constant currency measure provides investors an additional perspective on revenue trends. Currency impact can be determined as the difference between actual growth rates and constant currency growth rates. Free Cash Flow To better understand trends in our business, we believe that it is helpful to adjust operating cash flows by subtracting amounts related to capital expenditures. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It provides a measure of our ability to fund acquisitions, repay debt and pay dividends. Non-GAAP Financial Measures
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Adjusted Net Income (Loss) and EPS Reconciliation 19 (in millions, except per share amounts) Net (Loss) Income EPS Net (Loss) EPS Net (Loss) EPS Net (Loss) Income EPS Net (Loss) EPS Net (Loss) EPS Net (Loss) EPS Net Income EPS Reported (1) $(1,321) $(10.75) $ (90) $ (0.75) $ (106) $ (0.87) $ (760) $ (6.01) $ (73) $ (0.60) $(1,029) $ (8.25) $ (105) $ (0.84) $ 13 $ 0.07 Goodwill impairment 1,058 - - - - - - - Inventory-related impact - exit of certain Production Print manufacturing operations (2) 51 7 10 3 4 24 - - Restructuring and related costs, net 112 (1) 10 59 (2) 66 45 23 Amortization of intangible assets 73 10 10 30 33 83 30 30 Divestitures 47 (4) - - - (4) - - Non-service retirement-related costs 80 18 19 20 21 78 21 21 Transaction and related costs, net (31) 3 6 23 - 32 4 - Net (gain) loss on early extinguishment of debt (2) - 4 - 1 5 (56) (39) Transformation-related costs (3) 12 6 3 3 5 17 2 2 Commitment fee expense (4) - 18 4 - - 22 - - Income tax on goodwill impairment (5) (43) - - - - - - - Income tax on PARC donation (5) - 9 - 11 - 20 - - Lexmark - settlement of pre-existing employment agreements - - - 24 3 27 - - Lexmark - inventory-related purchase accounting adjustment (6) - - - 102 - 102 - - Lexmark - fixed asset-related purchase accounting adjustment - - - 16 13 29 11 12 Lexmark acquisition financing - escrow interest, net (7) - - 12 - - 12 - - Deferred tax asset valuation allowance 169 50 - 467 - 517 8 1 Income tax on adjustments (5) (70) (30) (49) 29 (13) (63) (11) (8) Adjusted 135$ 0.97$ (4)$ (0.06)$ (77)$ (0.64)$ 27$ 0.20$ (8)$ (0.10)$ (62)$ (0.60)$ (51)$ (0.43)$ 55$ 0.38$ Tax effects associated with U.S. and U.K. losses (8) (3) 93 41 (3) Normalized Adjusted (7)$ (0.09)$ 16$ 0.10$ (10)$ (0.11)$ 52$ 0.36$ Dividends on preferred stock used in adjusted EPS calculation (9) $ 14 $ 4 $ 3 $ 4 $ 3 $ 14 $ 4 $ 3 Weighted average shares for adjusted EPS (9) 126 125 127 129 128 127 129 135 (5) Refer to Adjusted Effective Tax Rate Reconciliation. (6) Reflects a purchase accounting adjustment related to the acquisition of Lexmark, for cost associated with a net inventory write up. (7) Reflects net interest expense on net proceeds received from debt issuances which were placed in escrow to fund the Lexmark Acquisition. (9) For those periods that include the preferred stock dividend the average shares for the calculations of diluted EPS exclude 7 million shares associated with our Series A convertible preferred stock, as applicable. (1) Q2 2026 Net (Loss) Income and Diluted (Loss) Income per share includes a benefit for IEEPA tariff receivables and a gain on the extinguishment of debt. Q1 2026 Net (Loss) and Diluted (Loss) per share includes a gain on the extinguishment of debt. Full-year 2025 Net (Loss) and Diluted (Loss) per Share, include the following: Q3 2025 includes an inventory-related purchase accounting adjustment and a tax expense charge; Q2 2025 includes interest and financing-related charges, net, and tax expense related to interest expense that was not deductible; Q1 2025 includes a charge to tax expense and after-tax financing-related charges. Full-year 2024 Net (Loss) and Diluted (Loss) per Share, include the following: a Reinvention- related charge; insurance proceeds from a legal settlement; non-cash goodwill impairment charge; write-off of intangibles and Reinvention-related and acquisition charges. For details, please see the non-GAAP section of this quarter's earnings press release. (4) Primarily reflects fees related to the private offering of $400 million in aggregate principal amount of 10.25% Senior Secured First Lien Notes and $400 million aggregate principal amount of 13.5% Senior Secured Second Lien Notes Due in 2031. (8) Normalized adjusted net (loss) includes tax benefits which are not included in adjusted earnings. This represents the tax effects associated with pre-tax losses generated in U.S. and UK entities subject to full valuation allowances. Q4-25 FY-25 Q1-26 (2) Reflects inventory-related charges and the cancellation of related purchase contracts as a result of the exit of certain production print manufacturing operations. FY-24 Q1-25 Q2-25 Q3-25 (3) In the first quarter of 2026, Xerox Holdings Corporation renamed “Reinvention-related costs” to “Transformation-related costs.” This change in terminology did not affect the nature of the costs. Q2-26
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20 Adjusted Effective Tax Rate Reconciliation (in millions) Pre-Tax Income Income Tax Expense Effective Tax Rate Pre-Tax (Loss) Income Income Tax Expense Effective Tax Rate Reported (1) $ 31 $ 18 58.1% $ (60) $ 46 (76.7%) Deferred tax asset valuation allowance - (1) - - Non-GAAP adjustments (2) 49 8 78 49 Adjusted $ 80 $ 25 31.3% $ 18 $ 95 527.8% (2) Refer to Adjusted Net Income (Loss) and EPS reconciliations for details. Q2-26 Q2-25 (1) Pre-Tax Income (Loss) and Income Tax Expense.
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21 Adjusted Gross Profit and Margin Reconciliation (in millions) Revenue (1) 6,221$ 1,457$ 1,576$ 1,961$ 2,028$ 7,022$ 1,846$ 1,922$ Cost of revenue (1) 4,261 1,031 1,125 1,516 1,449 5,121 1,297 1,234 Gross Profit and Margin (2) 1,960 31.5% 426 29.2% 451 28.6% 445 22.7% 579 28.6% 1,901 27.1% 549 29.7% 688 35.8% Adjustment: Inventory-related impact - exit of certain Production Print manufacturing operations 51 7 10 3 4 24 - - Lexmark - inventory-related purchase accounting adjustment (3) - - - 102 - 102 - - Lexmark - fixed asset-related purchase accounting adjustment - - - 16 11 27 11 12 Adjusted Gross Profit and Margin (2) 2,011$ 32.3% 433$ 29.7% 461$ 29.3% 566$ 28.9% 594$ 29.3% 2,054$ 29.3% 560$ 30.3% 700$ 36.4% (1) Total conslidated revenue and cost of revenue (2) Q2 2026 includes a $105 million pre-tax benefit for recognition of IEEPA tariff receivables (3) Reflects a purchasing accounting adjustment related to the acqusition of Lexmark, for cost associated with a net inventory write up Q2-26FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Q1-26
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22 Adjusted Gross Profit and Margin Reconciliation – Print and Other (in millions) Revenue (1) 5,864$ 1,294$ 1,366$ 1,739$ 1,873$ 6,272$ 1,692$ 1,733$ Cost of revenue (1) 3,960 895 950 1,338 1,331 4,511 1,173 1,080 Gross Profit and Margin (2) 1,904 32.5% 399 30.8% 416 30.5% 401 23.1% 542 28.9% 1,761 28.1% 519 30.7% 653 37.7% Adjustment: Inventory-related impact - exit of certain Production Print manufacturing operations 51 7 10 3 4 24 - - Lexmark - inventory-related purchase accounting adjustment (3) - - - 102 - 102 - - Lexmark - fixed asset-related purchase accounting adjustment - - - 16 11 25 11 12 Adjusted Gross Profit and Margin (2) 1,955$ 33.3% 406$ 31.4% 426$ 31.2% 522$ 30.0% 557$ 29.8% 1,912$ 30.5% 530$ 31.3% 665$ 38.4% (1) Total revenue and cost of revenue (2) Q2 2026 includes a $105 million pre-tax benefit for recognition of IEEPA tariff receivables (3) Reflects a purchasing accounting adjustment related to the acqusition of Lexmark, for cost associated with a net inventory write up Q2-26FY-25 Q1-26FY-24 Q1-25 Q2-25 Q3-25 Q4-25
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23 Adjusted Operating Income and Margin Reconciliation (in millions) (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin Reported (1), (2) (1,321)$ 6,221$ (90)$ 1,457$ (106)$ 1,576$ (760)$ 1,961$ (73)$ 2,028$ (1,029)$ 7,022$ (105)$ 1,846$ -$ 1,922$ Income tax expense 105 23 46 460 12 541 32 31 Pre-tax (loss) income (1,216)$ 6,221$ (19.5%) (67)$ 1,457$ (4.6%) (60)$ 1,576$ (3.8%) (300)$ 1,961$ (15.3%) (61)$ 2,028$ (3.0%) (488)$ 7,022$ (6.9%) (73)$ 1,846$ (4.0%) 31$ 1,922$ 1.6% Adjustments: Goodwill impairment 1,058 - - - - - - - Restructuring and related costs, net 112 (1) 10 59 (2) 66 45 23 Amortization of intangible assets 73 10 10 30 33 83 30 30 Divestitures 47 (4) - - - (4) - - Transformation-related costs (3) 12 6 3 3 5 17 2 2 Transaction and related costs, net 7 3 6 23 2 34 4 - Inventory impact related to the exit of certain Production Print manufacturing operations (4) 51 7 10 3 4 24 - - Lexmark - inventory-related purchase accounting adjustment (5) - - - 102 - 102 - - Lexmark - fixed asset-related purchase accounting adjustment - - - 16 13 29 11 12 Lexmark - settlement of pre-existing employment agreements - - - 24 1 25 - - Non-financing interest expense 119 33 55 80 80 248 84 100 Other expenses, net (6) 39 35 25 25 27 112 (31) 5 Adjusted (2) 302$ 6,221$ 4.9% 22$ 1,457$ 1.5% 59$ 1,576$ 3.7% 65$ 1,961$ 3.3% 102$ 2,028$ 5.0% 248$ 7,022$ 3.5% 72$ 1,846$ 3.9% 203$ 1,922$ 10.6% (1) Net (Loss) Income. (2) Q2 2026 includes a $105 million pre-tax benefit for recognition of IEEPA tariff receivables. (3) In Q1 2026, Xerox Holdings Corporation renamed “Reinvention-related costs” to “Transformation-related costs.” This change in terminology did not affect the nature of the costs. (4) Reflects inventory-related charges and the cancellation of related purchase contracts as a result of the exit of certain production print manufacturing operations. (5) Reflects a purchase accounting adjustment related to the recent acquisition of Lexmark, for cost associated with a net inventory write up. (6) Includes non-service retirement-related costs. Q2 2026 and Q1 2026 include a gain of $39 million and $56 million, respectively, related to the early repayment of a portion of our 5.5% Senior Unsecured Notes due August 2028 (the "2028 Senior Unsecured Notes"). Q3-25 Q4-25FY-24 Q1-25 Q2-25 Q2-26Q1-26FY-25
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Adjusted EBITDA and Margin Reconciliation 24 (in millions) (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin (Loss) Profit Revenue Margin Reported (1), (2) (1,321)$ 6,221$ (90)$ 1,457$ (106)$ 1,576$ (760)$ 1,961$ (73)$ 2,028$ (1,029) 7,022$ (105)$ 1,846$ -$ 1,922$ Adjustments: Non-financing interest expense 119 33 55 80 80 248 84 100 Other expenses (income), net (3) 39 35 25 25 27 112 (31) 5 Income tax expense 105 23 46 460 12 541 32 31 Depreciation and amortization (4) 274 60 57 107 107 331 100 101 Goodwill impairment 1,058 - - - - - - - EBITDA (5) 274$ 6,221$ 4.4% 61$ 1,457$ 4.2% 77$ 1,576$ 4.9% (88)$ 1,961$ (4.5)% 153$ 2,028$ 7.5% 203$ 7,022$ 2.9% 80$ 1,846$ 4.3% 237$ 1,922$ 12.3% Adjustments: Stock-based compensation 52 12 14 7 12 45 9 9 Restructuring and related costs, net (6) 112 (1) 10 59 (2) 66 45 23 PARC donation - - - - - - - - Divestitures 47 (4) - - - (4) - - Transformation-related costs (7) 12 6 3 3 5 17 2 2 Transaction and related costs, net 7 3 6 23 2 34 4 - Inventory impact related to the exit of certain Production Print manufacturing operations (8) 51 7 10 3 4 24 - - Lexmark - inventory-related purchase accounting adjustment (9) - - - 102 - 102 - - Lexmark - settlement of pre-existing employment agreements - - - 24 1 25 - - Adjusted EBITDA (2), (10) 555$ 6,221$ 8.9% 84$ 1,457$ 5.8% 120$ 1,576$ 7.6% 133$ 1,961$ 6.8% 175$ 2,028$ 8.6% 512$ 7,022$ 7.3% 140$ 1,846$ 7.6% 271$ 1,922$ 14.1% __________ (1) Net (Loss) Income. (2) Q2 2026 includes a $105 million pre-tax benefit for recognition of IEEPA tariff receivables. (4) Excludes amortization of customer contract costs (5) EBITDA includes Financing Revenues and Cost of financing, for all periods presented as these amounts are associated with XFS. (6) Restructuring and related costs, net include restructuring and asset impairment charges as well as costs associated with our transformation programs beyond those normally included in restructuring and asset impairment charges. (7) In Q1 2026, Xerox Holdings Corporation renamed “Reinvention-related costs” to “Transformation-related costs.” This change in terminology did not affect the nature of the costs. (8) Reflects inventory-related charges and the cancellation of related purchase contracts as a result of the exit of certain production print manufacturing operations. (9) Reflects a purchase accounting adjustment related to the recent acquisition of Lexmark, for cost associated with a net inventory write up. (10) EBITDA & Adj. EBITDA included above are internal measures used by Management to assess performance. The amounts and related calculation are different than consolidated EBITDA determined as part of our Credit Facility financial maintenance covenants. Q3-25 Q4-25 FY-25 (3) Other expenses, net, includes certain other non-operating costs, expenses, gains and losses. Q1 2026 includes a gain of $56 million related to the early repayment of a portion of our 5.5% Senior Unsecured Notes due August 2028 (the "2028 Senior Unsecured Notes"). Prior period amounts have been conformed to the current presentation. Q1-25FY-24 Q2-25 Q1-26 Q2-26
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25 Free Cash Flow Reconciliation (in millions) FY-24 Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Q1-26 Q2-26 Net cash provided by (used in) operating activities $511 ($89) ($11) $159 $208 $224 ($144) $37 Less: capital expenditures 44 20 19 28 24 91 21 26 Free Cash Flow $467 ($109) ($30) $131 $184 $133 ($165) $11
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26 Adjusted Operating Income – Guidance (in millions) Estimated Pre-tax (loss) ~$(100) Adjustments: Restructuring and related costs, net 85 Amortization of intangible assets 120 Non-financing interest expense 375 Other expenses, net (1) 100 Estimated Adjusted Operating Income (2) ~$555-605 FY 2026 (1) Other expenses, net includes approximately $95 milliion of gain on the early extinguishment of debt and approximately $85 million of non-service retirement- related costs. (2) Adjusted pre-tax income reflects the the adjusted operating income midpoint of $580 million
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27 Free Cash Flow – Guidance (in millions) FY 2026 Estimated Net cash provided by operating activites ~$340 Less: capital expenditures 90 Estimated Free Cash Flow ~$250
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28 To better understand the trends in our business, we discuss our 2026 operating results by comparing them against 2025 pro forma results. The 2025 pro forma results include estimated results of Lexmark. Lexmark is included in our 2025 results as of July 1, 2025, the effective date of acquisition. We refer to comparisons against these adjusted results as “pro-forma” basis comparisons. The pro forma information has been prepared in accordance with Article 11 of Regulation S-X, "Pro Forma Financial Information.” The pro forma information is presented to facilitate comparisons with our results following the acquisition. Lexmark's 2025 historical results have been adjusted to reflect the costs of financing the transactions, fair value adjustments related to inventory, real and personal property (equipment and computer hardware and s oftware) and intangible assets. In addition, adjustments were made to conform Lexmark's accounting policies to those of Xerox, including deferred revenue and inventory. In accordance with Article 11 of Regulation S-X, these proforma results exclude adjustments associated with transaction related costs which are already included in the historical financial statements. We believe comparisons on a pro-forma basis are more meaningful than the actual comparisons given the size and nature of the Lexmark acquisition. We believe the pro forma basis comparisons allow investors to have a better understanding and additional perspective of the expected trends in our business as well as the impact of the Lexmark acquisition on the Company’s operations. The pro forma financial information is based upon available information and assumptions that we believe are reasonable and is for illustrative purposes only. The pro forma combined financial information below should be read in conjunction with the consolidated financial statements and related notes to our 2025 Form 10-K. Management believes that these non-GAAP financial measures provide an additional means of analyzing the current periods’ results against the corresponding prior periods’ results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables. Certain pro forma monetary amounts, percentages, and other financial figures included in the Company’s earnings materials, including the prepared remarks, investor presentation, and press release have been subject to rounding adjustments. Accordingly, minor differences may exist among such materials. These variances, which result solely from rounding, are not considered material. Pro Forma Financial Measures
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29 Pro Forma Revenue – Print and Other Pro Forma(1) (in millions) Q2-26 Q2-25 Q2-25 % Change Pro Forma(1) % Change Equipment sales 387$ 336$ 445$ 15.2% (13.0)% Supplies, paper and other sales 469 176 471 166.5% (0.4)% Service, maintenance, rentals and other 822 785 861 4.7% (4.5)% Xerox Financial Services 55 69 69 (20.3)% (20.3)% Post sale revenue 1,346$ 1,030$ 1,401$ 30.7% (3.9)% Total Print and Other Revenue 1,733$ 1,366$ 1,846$ 26.9% (6.1)% As reported (1)Reflects the inclusion of Lexmark's estimated results from April 1, 2025 through June 30, 2025. Lexmark's actual results are included in Xerox's reported results beginning on July 1, 2025, the effective date of the acquisition.
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30 Pro Forma Segment Revenue and Profit Pro Forma (3) (in millions) Q2-26 Q2-25 Q2-25 % Change Pro Forma(3) % Change Revenue Print & Other 1,733$ 1,366$ 1,846$ 26.9% (6.1)% IT Solutions 194 213 213 (8.9)% (8.9)% Intersegment elimination(1) (5) (3) (3) NM NM Total Revenues 1,922$ 1,576$ 2,056$ 22.0% (6.5)% Adjusted Gross Profit Print & Other 665$ 426$ 587$ 56.1% 13.3% IT Solutions 35 35 35 - - Total Adjusted Gross Profit (2) 700$ 461$ 622$ 51.8% 12.5% Adjusted Gross Profit Margin Print & Other 38.4% 31.2% 31.8% 7.2 pts 6.6 pts IT Solutions 19.5% 17.2% 17.2% 2.3 pts 2.3 pts Total Adjusted Gross Profit Margin 36.4% 29.3% 30.3% 6.7pts 6.1 pts Segment Profit Print & Other 220$ 65$ 116$ 238.5% 89.7% IT Solutions 7 10 10 (30.0)% (30.0)% Corporate (24) (16) (20) 50.0% 20.0% Total Adjusted Operating Profit (2) 203$ 59$ 106$ 244.1% 91.5% Adjusted Operating Profit Margin Print & Other 12.7% 4.8% 6.3% 7.9 pts 6.4 pts IT Solutions 3.9% 3.1% 3.1% 0.8 pts 0.8 pts Total Adjusted Operating Profit Margin 10.6% 3.7% 5.2% 6.9 pts 5.4 pts (3)Reflects the lnclusion of Lexmark estimated results from April 1, 2025 through June 30, 2025 As reported (1)Reflects primarily IT hardware, software solutions and services, sold by the IT Solutions segment to the Print and Other segment. (2) Q2 2026 includes a $105 million benefit for recognition of IEEPA tariff receivables
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31 Pro Forma Adjusted Operating Income and Margin Reconciliation Pro Forma (3) Q2-26 Q2-25 Q2-25 Change Pro Forma (2) Change (in millions) (Loss) Profit (Loss) Profit (Loss) Profit Reported (1), (2) -$ (106)$ (97)$ 106$ 97$ Income tax expense 31 46 46 (15) (15) Pre-tax income (loss) 31$ (60)$ (51)$ 91$ 82$ Adjustments: Restructuring and related costs, net 23 10 10 13 13 Amortization of intangible assets 30 10 31 20 (1) Transformation-related costs (4) 2 3 3 (1) (1) Transaction and related costs, net - 6 18 (6) (18) Inventory impact related to the exit of certain Production Print manufacturing operations (5) - 10 10 (10) (10) Lexmark - fixed asset-related purchase accounting adjustment 12 - 17 12 (5) Non-financing interest expense (6) 100 55 54 45 46 Other expenses (income), net (7) 5 25 14 (20) (9) Adjusted (2) 203$ 59$ 106$ 144$ 97$ Revenue 1,922$ 1,576$ 2,056$ 346$ (134)$ Adjusted Operating Income Margin 10.6% 3.7% 5.2% 6.9 pts 5.4 pts (1) Net (Loss) Income. (1) Q2 2026 includes a $105 million pre-tax benefit for recognition of IEEPA tariff receivables. (7) Includes non-service retirement-related costs as well as a gain of $56 million related to the early repayment of a portion of our 5.5% Senior Unsecured Notes due August 2028 (the "2028 Senior Unsecured Notes"). (3)Reflects the inclusion of Lexmark's estimated results from April 1, 2025 through June 30, 2025. Lexmark's actual results are included in Xerox's reported results beginning on July 1, 2025, the effective date of the acquisition. As Reported (6) Reflects interest expense primarily related to the recently completed borrowings in support of the Lexmark acquisition financing, repayment of existing borrowings and general corporate purposes, as well as interest related to the funding from the Joint Venture Financing arrangement entered into with TPG in the first quarter of 2026. (5) Reflects inventory-related charges and the cancellation of related purchase contracts as a result of the exit of certain production print manufacturing operations. (4) In Q1 2026, Xerox Holdings Corporation renamed “Reinvention-related costs” to “Transformation-related costs.” This change in terminology did not affect the nature of the costs.
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