NYSE:UIS
UNISYS CORP
A niche digital services provider specializing in government-grade identity management and secure data processing solutions.
Key Metrics
Investment Thesis
Bull Case
The stock could be attractive to distressed value investors seeking a turnaround story where the core operating business generates positive EBITDA of $78.5M despite accounting losses. The company's strong cash position with $413.9M in cash and equivalents provides flexibility to fund operations and potentially pay down debt while waiting for government contract renewals.
Bear Case
The deteriorating net income trend, falling from a loss of $-104.9M in 2022 to $-340.0M in 2025, signals severe profitability challenges that may persist without fundamental business model changes. The negative shareholders' equity of $-268.3M and massive accumulated deficit indicate capital erosion that could limit access to financing for future growth initiatives.
About UNISYS CORP
UNISYS CORP (UIS) is a digital services and technology solutions provider primarily serving the government, defense, and healthcare sectors. The company delivers specialized hardware and software products for identity management, document verification, and data processing systems. With total assets of $1.85B and revenue of $1.95B in 2025, the firm operates a niche market focused on secure transaction processing.
Analysis
Management Discussion
Despite generating positive operating profit of $78.5M, the company recorded a net loss of $-340.0M in 2025, largely driven by accumulated other comprehensive income losses of $-2.43B and non-operating expenses. Cash flow from operations was negative at $-140.0M, offset partially by financing cash inflows of $186.0M and capital expenditures of $30.0M to maintain its specialized infrastructure.
Industry Overview
The digital services industry serves government and defense clients requiring rigorous security standards, where incumbents with legacy contracts and specialized hardware hold dominant positions. Market dynamics are characterized by long sales cycles, high barriers to entry due to security certifications, and sensitivity to federal budget allocations which directly impact revenue stability.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.98B | $2.02B | $2.01B | $1.95B |
| Cost of Revenue | $1.45B | $1.46B | $1.42B | $1.40B |
| Gross Profit | $529.6M | $551.3M | $585.9M | $549.3M |
| Operating Expenses | $477.4M | $474.4M | $488.5M | $470.8M |
| Operating Income | $52.2M | $76.9M | $97.4M | $78.5M |
| R&D | $24.2M | $24.1M | $25.2M | $24.6M |
| G&A | $453.2M | $450.3M | $424.2M | $391.2M |
| Stock-Based Comp | $20.0M | $17.2M | $21.2M | $15.1M |
| D&A | $50.2M | $29.1M | $24.3M | $23.5M |
| Amortization | $10.1M | $9.7M | $7.2M | $4.3M |
| Other OpEx | $0 | $0 | $39.1M | $55.0M |
| Non-Operating Income | $-114.8M | $-424.7M | $-172.7M | $-350.7M |
| Interest Expense | $32.4M | $30.8M | — | — |
| Interest Income | — | — | — | $20.7M |
| Pre-Tax Income | $-62.6M | $-347.8M | $-75.3M | $-272.2M |
| Income Tax | $42.3M | $79.3M | $117.9M | $67.8M |
| Continuing Ops | $-104.9M | $-430.7M | $-193.4M | $-339.8M |
| Discontinued Ops | $0 | $3.6M | $200.0K | $-200.0K |
| Net Income | $-104.9M | $-427.1M | $-193.2M | $-340.0M |
| Minority Interest | $0 | $3.6M | $200.0K | $-200.0K |
| Net to Common | $-104.9M | $-430.7M | $-193.4M | $-339.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $930.4M | $971.0M | $982.4M | $1.00B |
| Cash & Equivalents | $391.8M | $387.7M | $376.5M | $413.9M |
| Inventory | $14.9M | $15.3M | $16.4M | $13.8M |
| Prepaid Expenses | $92.3M | $101.8M | $106.3M | $127.7M |
| Other Current Assets | $431.4M | $466.2M | $483.2M | $448.6M |
| Long-Term Assets | $1.14B | $994.4M | $889.9M | $842.2M |
| PP&E (Net) | $75.9M | $64.3M | $57.1M | $53.1M |
| Intangibles | $52.4M | $42.7M | $35.5M | $31.2M |
| Goodwill | $287.1M | $287.4M | $247.9M | $193.8M |
| Operating Leases | $42.5M | $35.4M | $38.4M | $38.4M |
| Other LT Assets | $677.3M | $564.6M | $511.0M | $525.7M |
| Total Assets | $2.07B | $1.97B | $1.87B | $1.85B |
| Current Liabilities | $650.5M | $650.9M | $628.0M | $655.9M |
| Accounts Payable | $160.8M | $130.9M | $97.9M | $81.2M |
| Current Leases | $26.0M | $19.1M | $15.0M | $16.0M |
| Deferred Revenue | $200.7M | $198.6M | $210.4M | $228.5M |
| Taxes Payable | $41.3M | $31.4M | $47.0M | $31.8M |
| Other Current Liab | $221.7M | $270.9M | $257.7M | $298.4M |
| Long-Term Liabilities | $1.39B | $1.45B | $1.51B | $1.46B |
| LT Operating Leases | $29.7M | $25.6M | $28.9M | $30.6M |
| Other LT Liab | $1.24B | $1.32B | $1.38B | $1.33B |
| Total Liabilities | $2.04B | $2.10B | $2.14B | $2.11B |
| Shareholders' Equity | $21.8M | $-138.4M | $-269.3M | $-268.3M |
| Retained Earnings | $-1.51B | $-1.95B | $-2.14B | $-2.48B |
| AOCI | $-3.08B | $-2.80B | $-2.76B | $-2.43B |
| Treasury Stock | $156.0M | — | — | — |
| Total L&E | $2.07B | $1.97B | $1.87B | $1.85B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-104.9M | $-427.1M | $-193.2M | $-340.0M |
| Non-Cash Adjustments | $206.1M | $481.4M | $301.2M | $186.6M |
| Working Capital Changes | $-88.5M | $19.9M | $27.1M | $13.4M |
| Cash from Operations | $12.7M | $74.2M | $135.1M | $-140.0M |
| Capital Expenditures | $31.0M | $21.3M | $16.0M | $30.0M |
| Cash from Investing | $-131.4M | $-69.6M | $-97.4M | $-31.8M |
| Debt Issuances | $0 | $0 | — | $700.0M |
| Debt Repayments | $17.8M | $16.9M | $15.4M | $492.1M |
| Cash from Financing | $-21.6M | $-17.3M | $-18.1M | $186.0M |
| FX Effect | $-17.6M | $6.7M | $-25.7M | $16.9M |
| Net Change in Cash | $-157.9M | $-6.0M | $-6.1M | $31.1M |
| Beginning Cash | $560.6M | $402.7M | $396.7M | $390.6M |
| Ending Cash | $402.7M | $396.7M | $390.6M | $421.7M |
Frequently Asked Questions
How does UNISYS CORP make money?
The company's revenue streams are driven by specialized hardware sales, software licensing for identity verification platforms, and long-term service contracts with federal agencies. A significant portion of operations involves current deferred revenue of $228.5M, indicating strong recurring service agreements and multi-year project contracts typical of defense and public sector clients.
What are the main risks for UIS?
Investors face significant risk from the company's substantial accumulated deficit of $-2.43B and negative net profit of $-340.0M, which threatens solvency if cash flows do not improve. The business is exposed to concentration risk in government contracting cycles and regulatory changes affecting defense procurement budgets. Additionally, the massive debt issuances of $700.0M coupled with repayments of $492.1M creates liquidity pressure during periods of negative operating cash flow.
What is UIS's competitive advantage?
UNISYS holds a competitive moat through deep specialization in high-security identity management systems required by US government agencies, creating high switching costs for clients. The company benefits from established long-term operating lease assets of $38.4M and a specialized portfolio of intangible assets that are difficult for generalist competitors to replicate.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.