Greetings and welcome to the Conduit second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Nick Goel, Vice President, Investor Relations. Thank you. You may begin.

Good morning, everyone. Welcome to Conduant's second quarter 2026 earnings call. With me today are Harsha Agadi, our CEO, and Giles Goodburn, our CFO. Harsha will provide an overview of the business, and Giles will cover our financial performance in greater detail. We hope you have had a chance to review our press release issued earlier this morning. A copy of the press release and slides used during this call were filed with the SEC on Form 8-K. This information is also available on the Investor Relations section of our website. During this call, we will make forward-looking statements. These statements reflect management's current beliefs, assumptions and expectations, which may change over time. Actual results could differ materially from those statements due to a number of factors. Information concerning these factors is included in our 10-K and 10-Q filings with the SEC unless otherwise stated. The information presented today reflects our continuing operations. It does not include the divestitures announced during this quarter. It includes non-GAAP financial measures which should be viewed in addition to and not as a substitute for our GAAP results. For more information, regarding the definitions of our non-GAAP measures, how we use them, and the limitations to their usefulness for competitive purposes, please see our press release. And now, I would like to turn the call over to Harsha.

Good morning, everyone, and thank you for joining us. Six months into my role as CEO, I have a clear view of where we stand as a company, where we need to improve and most importantly, where I believe we have significant opportunity to create value. Over the past several months, I've spent a lot of time listening to clients, engaging with associates across our business and reviewing our operations firsthand. My perspective was reinforced this spring at Elevate 2026, our client event in Chicago, where we heard directly from nearly 100 clients and partners representing a diverse range of Fortune 100 companies about what matters most to them, greater speed, simpler operations, Continued innovation and consistent execution. Those conversations also reinforced that the five priorities we established at the beginning of the year remain the right ones. Increasing speed and accountability, enforcing financial discipline, reducing our cost structure, optimizing our portfolio, and converting pipeline into growth. Today, I'll provide an update on the progress we're making against each of these priorities. Before I do, a brief comment on the quarter. Our second quarter results were in line with our expectations. As a result of the two divestitures we announced during the quarter, we are updating our full year guidance to reflect the impact of those transactions. Now, let me start with our first priority, increasing speed and accountability. Over the past several months, we've continued simplifying our structure and how we operate, strengthening accountability, and aligning the organization around our highest priorities. We've also strengthened our leadership team to improve operational efficiency and support our transformation. Approximately 80% of our senior leadership team is either new to Conduent or has taken on expanded responsibilities, bringing their deep experience and proven leadership across the industries we serve. We're also beginning a phased return to office approach, starting with locations where we have significant workforce. We believe that greater in-person collaboration will enable faster decision making, stronger collaboration, and better outcomes for our clients. These actions are creating a simpler, more agile, and more efficient conduit, one that is better positioned to deliver consistently for our clients and shareholders. Our second priority is enforcing financial discipline. We continue to strengthen financial discipline across the organization with tighter controls around hiring, discretionary spending, and capital allocation while increasing oversight of cash and liquidity across the business. These actions contributed to a meaningful improvement in our cash performance with cash usage essentially flat compared with the prior court. While we have more work to do, this is an important step in improving our cash generation and strengthening our financial flexibility. Our third priority is reducing our cost structure. Throughout the quarter, we continued simplifying the organization, reducing structural costs, and redirecting investments towards the capabilities that will create the greatest long-term value. We continue to make good progress against the approximately 100 million annualized cost savings program we announced in the first quarter and remain on track to implement the majority of this program this year. The program spans all businesses and corporate functions with a focus on optimizing technology spend, right-sizing certain roles, reducing duplication, eliminating bureaucracy, and simplifying our operating model across the enterprise. The fourth priority is optimizing our portfolio. We are taking a disciplined approach guided by a simple framework, fix, sell, and grow. We will fix businesses where we see a clear path to improving performance, sell businesses that are no longer aligned with our long-term strategy and grow the businesses where we have the strongest competitive advantages and the greatest opportunities to create long-term value. During the quarter, we announced the sale of our transit business to Madaxo and the sale of our tolling business to Quarter Hill. Together, these transactions complete our exit from the transportation business, significantly reduce off-balance sheet financial obligations, and further simplify our portfolio. We expect both transactions to close by the end of 2026. With these transactions, we now expect to generate approximately 234 million in gross proceeds, in addition to retaining a 7% equity interest in Quarter Hill, whose current market capitalization is approximately 300 million Canadian dollars. This exceeds the commitment we made in the first quarter to generate at least $200 million through portfolio actions. We intend to use the majority of these proceeds to reduce debt, further strengthening our balance sheet and financial profile, and providing us with greater optionality to invest in high return growth opportunities. These actions also sharpen our strategic focus, allowing us to concentrate our capital, resources, and management attention on the remaining businesses where we believe we can create the greatest value for our clients and shareholders. Portfolio optimization is not a one-time event. It is an ongoing discipline that will help us build a simpler, more focused, and high-performing conduit while maximizing long-term shareholder value. Our final priority and the fifth priority is converting pipeline into growth. During the quarter, we continued to build momentum through a more focused go-to-market approach. The progress is reflected in the strength of our pipeline. Across our commercial and government segments, we have approximately $3 billion in qualified new business opportunities, which has grown sequentially over the past several quarters. While there is more work to do, the continued growth in our pipeline reinforces our confidence that the actions we've taken to improve execution, sharpen our market focus, and strengthen our client relationships are beginning to deliver. At the same time, it's important to recognize that there is a natural timing difference between winning new business and seeing the full revenue impact. As we've discussed previously, some contracts continue to roll off and we also continue to see volume declines in certain existing client programs. Our focus is not simply replacing revenue, but improving the quality of our portfolio by winning business in areas where we have a stronger competitive differentiation and a better long-term growth potential. This is a natural part of our transformation as we shape the portfolio toward higher value opportunities and differentiated solutions. Those trends are reflected in the client momentum we saw during the quarter. In commercial, I'm pleased to let you know we have sold approximately $100 million of new business in the first two quarters. We also continue expanding into adjacent markets with new capabilities that create additional avenues for growth. I'll share a few examples. We signed a new pension risk transfer administration engagement with Securium, expanding our position in the growing retirement administration market with a differentiated end-to-end solution. Trillium Health Resources selected our Health Services Plus platform to support claims processing, provider data management, and member services, validating the investments we've made in our healthcare platform and reinforcing our ability to deliver integrated solutions for healthcare organizations. We also expanded our relationship with Avis Budget Group through a new vehicle citation offering, leveraging multiple solutions from across our businesses. Importantly, this establishes a new scalable offering that can be applied across organizations, managing large vehicle fleets, opening an attractive adjacent market for conduit. We're also seeing continued expansion with several leading U.S. healthcare payers reflecting the strength of our relationships and our ability to deliver additional value across our portfolio of solutions. Turning to our government business, we have sold approximately $89 million of new business in the first two quarters, and we continue to demonstrate the value of our expertise in modernizing mission-critical public programs. Let me share some examples. During the quarter, we implemented a modernized state-of-the-art Medicaid platform for the state of New Mexico, replacing a 24 year old legacy system with a single integrated platform that enables faster, more efficient claims processing and improved access to care and continuity of service for approximately 900,000 Medicaid members. We also secured a multiyear renewal in Virginia to continue operating and modernizing the Commonwealth's Medicaid systems, enabling the transition to a more integrated platform designed to improve access to information, strengthen fraud prevention, and enhance program performance for approximately 1.6 million enrolled Virginians. and we continued advancing electronic benefits transfer modernization by completing pilot or production deployments of chip-enabled EMV technology in three states with a fourth state scheduled to roll out by the end of the summer. Together with enhanced fraud prevention capabilities, these technologies are helping states better protect benefits while improving security for program participants. Beyond the wins we've announced, our qualified pipeline remains extremely strong. While the timing of individual awards can vary, The breadth and quality of our pipeline reinforces our confidence in our ability to continue converting pipeline into sustainable growth. The client momentum we're seeing is supported by attractive long-term market fundamentals. Our Go Forward portfolio addresses a large and growing market of approximately $200 billion, expanding at an estimated annual rate of about 4%. We believe Conduent is extremely well positioned to capture this opportunity because organizations increasingly need partners that can modernize complex operations through integrated end-to-end solutions, not isolated point products. That is where Conduent stands apart. We combine deep operational expertise with technology automation and AI to transform mission-critical business processes for our clients. That differentiation is becoming even more important as organizations look to adopt AI increasingly. Clients recognize that AI is not about deploying standalone tools or running disconnected pilots. The real opportunity lies in embedded AI into the workflows and business processes that power their operations. Because we manage those processes on behalf of our clients, we bring the domain expertise, operational knowledge, and technology capabilities needed to implement AI in ways that deliver measurable business outcomes. We are methodically embedding AI across the full cycle of our solutions from customer and constituent interactions to core business operations and enterprise productivity. And we're already seeing tangible results. One sterling example is Connie, our AI-powered digital assistant now embedded within our life-at-work health and wellness platform. Today, Connie resolves approximately 86% of employee inquiries without human intervention while reducing live agent interaction by more than 20%. were now taking the next step by infusing Kani into agentic AI capabilities and expanding those capabilities into new use cases. One example is our personalized agentic AI powered navigator, the next evolution of Kani, which helps simplify complex healthcare interactions by transforming confusing healthcare information into personalized guidance for members and providers. That innovation is already being recognized in the marketplace. Recently, Conduent was selected as a winner of UnitedHealthcare's 2026 Global Innovation Challenge for its personalized agentic AI-powered navigator. Selected from 40 participating companies, this recognition clearly validates our superior ability to apply AI to solve real customer problems while improving business outcomes for our clients. Internally, we're also deploying Microsoft Copilot and AI-assisted software development tools to help our engineering teams accelerate development, improve productivity, and bring new capabilities to market more quickly. Together, these investments demonstrate how we're combining deep domain expertise with practical AI innovation to help clients modernize operations, improve outcomes, and create sustainable long-term value. The bottom line is this. We are executing with greater discipline, and we're beginning to see the results. redefining what clients and investors should expect from Conduent, a simpler, more focused company with stronger execution, greater financial discipline, and a clear path to sustainable, profitable growth. While there is always more work ahead, I am extremely optimistic about where we're headed and confident we're building a stronger, high-performing company with significant opportunities. With that, I'll turn the call over to our Chief Financial Officer, Giles Goodburn.

Thanks, Harsha. As we have done in the past, we're reporting both GAAP and non-GAAP numbers. The reconciliations are in our filings and in the appendix of the presentation. Firstly, let me start by stating the results we are reporting today reinforce our conviction around our transformation journey Harsha laid out at the beginning of the year. However, when interpreting our second quarter GAAP and non-GAAP financial statements, you will see they are influenced by a number of factors related to this transformation, specifically Discontinued operations and anticipated stranded costs from divestiture activity and the early consulting costs incurred to achieve the cost efficiency targets, the benefits of which will become resident in future quarters. All of these factors are important steps towards our transformation destination. During the quarter, as Harsha mentioned, we announced the sale of both our transit and tolling solutions. which will complete our exit from the transportation business. The transactions collectively represent a strategic shift that will have a major effect on the company's operations and financial results and hence meet the criteria for discontinued operations presentation. unless otherwise indicated, the financial disclosures and related information and commentary provided herein relate to the company's continuing operations which exclude the transportation segment. All prior periods have been restated to reflect discontinued operations. These transactions are a key milestone in our strategic journey that once closed will generate gross proceeds of $234 million plus a 7% equity stake in Quarterhill, the acquirer of our tolling business. 2025 revenue and EBITDA for the transportation segment was $609 million and $18 million respectively, thus transacting at an adjusted EBITDA multiple in the mid-teens, significantly higher than where Conduent currently trades. The transactions will also provide other strategic financial benefits. Our off-balance sheet financial instruments, surety bonds and letters of credit, will be reduced by approximately 80%, leaving roughly 125 million predominantly supporting the government segment. The working capital intensity of the company will also be reduced, as will the capital expenditure requirements. and importantly, the proceeds will allow us flexibility to address the capital structure with an emphasis on de-levering the organization. Turning to the quarter, let's discuss our key sales metrics on slides five and six. We signed 99 million of new business ACV in the quarter compared to 111 million in Q2 2025, but a sequential improvement versus Q1 2026. This quarter, the ACV1 will drive a larger proportion of recurring revenue than we have seen in recent quarters, and our commercial segment new capability ACV, expanding our relationships with existing clients, is the highest it's been for several years. The trailing four-quarter ACV metric is up versus this time last year, and we expect to resume a sequential increase next quarter. At the midpoint of the year, we have signed 188 million of new business ACV, equal to the first six months in 2025.