Reported Revenue and Ex-L&S Growth (Reported)
Total revenue of $438 million, up 1.3% year-over-year on a reported basis; Excluding license & support (Ex-L&S) revenue was $372 million, up 3.1% year-over-year (but down in constant currency).
Strong New Business Signings and TCV Growth
Total company TCV was $274 million, up 33% year-over-year. New business TCV was $158 million, up 16% sequentially and 45% year-over-year — the strongest quarter of new business signings since Q4 2024.
Backlog and Book-to-Bill Strength
Trailing 12-month book-to-bill was 1.2x (total company and Ex-L&S). Backlog ended the quarter at $2.96 billion, up 2.4% from prior year-end.
Gross Margin Expansion Driven by AI and Efficiency
Total company gross margin improved to 25.7%, up 80 basis points year-over-year. Ex-L&S gross margin expanded to 19.5%, up 170 basis points year-over-year, driven by increased use of intelligent automation and workforce optimization.
Improved Profitability Metrics (Non-GAAP)
Non-GAAP operating profit margin was 4.5%, up 170 basis points year-over-year. Adjusted EBITDA was $46 million (10.6% margin), up 130 basis points year-over-year. SG&A declined $5 million (5% year-over-year) with planned $10–$20 million 2026 savings on track.
Notable Client Wins and AI Adoption
Multiyear wins for agentic service desk (including a contract covering ~14,000 U.S. restaurants and a new-deployment in Australia for ~11,000 employees), DSS win at a large U.S. financial client, expansions with ENAIRE and a major U.S. community college system (~2 million students), and a new engagement with a global OEM to support U.S. AI data center build-out — demonstrating traction for AI-enabled offerings.
Industry Recognition and Product Innovation
Unisys recognized by Avasant, Everest and HFS in AI/next-generation infrastructure and elevated by Gartner as a global leader in digital workplace services. Product releases included AB Suite updates and an AI developer toolkit for ClearPath Forward to enable AI-ready application development and synthetic test data.
Improving Leverage and Liquidity Position
Cash balance of $380 million (versus $414 million at 2025 year-end). Net leverage (inclusive of pensions) improved to 2.9x from 3.2x a year ago. Undrawn $125 million ABL facility available (accordion to $155 million) and no significant debt maturities until 2031.
Workforce and Delivery Strength
Low trailing 12-month voluntary attrition at 11.1%, expanded forward-deployed engineering capabilities, and continued investment in upskilling and agentic/AI delivery accelerators to support higher-value services and field services expansion.