XEROX CORP

Our liquidity is primarily dependent on our ability to generate positive cash flows from operations. Additional liquidity is also provided through access to the financial capital markets and a committed asset-based revolving credit agreement (the ABL Facility), as well as the sales and assignment of finance lease receivables. Our access to financial capital markets may be limited from time to time due to a number of factors, including our credit ratings, the level of our outstanding indebtedness, and prevailing market conditions, including the trading levels of our existing debt securities. Based on our current level of operations, we do not expect our near term liquidity needs to be dependent on access to the financial capital markets and we believe that our available sources will be adequate to meet our liquidity needs for at least the next 12 months.

Currently, we are not aware of any other trends or demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in our liquidity increasing or decreasing in any material way that will impact our capital needs during or beyond the next 12 months from May 7, 2026, the date these Condensed Consolidated Financial Statements were issued.

We cannot assure you, however, that our business will generate sufficient cash flow from operations or that future borrowings will be available to us under the Company's ABL facility and in amounts sufficient to enable us to repay our indebtedness or to fund our other liquidity needs. The following is a summary of our liquidity position:

•As of March 31, 2026 and December 31, 2025, total cash, cash equivalents and restricted cash of Xerox Holdings Corporation were $637 million and $565 million, respectively, and apart from restricted cash of $52 million and $53 million at March 31, 2026 and December 31, 2025, respectively, was readily accessible for use. The increase in total cash, cash equivalents and restricted cash of $72 million primarily reflects net cash used in operating activities of $144 million, as well as net cash used in investing activities of $24 million, both of which were partially offset by net cash provided by financing activities of $242 million. Refer to Note 11 - Supplementary Financial Information in the Condensed Consolidated Financial Statements for additional information related to cash, cash equivalents and restricted cash, and supplemental cash flow information.

•Total debt at March 31, 2026 was $4,446 million, of which $1,407 million is allocated to, and supports the Company's finance assets. The remaining debt of $3,039 million is attributable to the non-financing business and increased from $2,759 million at December 31, 2025. Debt at March 31, 2026 consists of senior secured and unsecured notes, secured promissory notes, borrowings under a Term Loan B facility, and senior secured term loans associated with a joint venture financing. Refer to Note 12 - Debt in the Condensed Consolidated Financial Statements for additional information related to our Debt activity.

•In connection with Xerox Corporation's joint venture arrangement (the Joint Venture Arrangement) with TPG during the first quarter 2026, XRX Brandco Holdings LLC (IPCo Holdings), a fully consolidated variable interest entity (VIE) of Xerox Corporation, as borrower, entered into a credit agreement with Alter Domus (US) LLC, who provided $405 million aggregate principal amount of senior secured term loans (the Term Loans) (the Joint Venture Financing Arrangement). The Term Loans are accounted for as Debt in the Condensed Consolidated Balance Sheet of Xerox Corporation at March 31, 2026. The proceeds of the Joint Venture Financing Arrangement were distributed by dividend from IPCo Holdings to Xerox Corporation and are expected to be used for general corporate purposes and opportunistically addressing Xerox Holdings’ capital structure over time (which may include the redemption or payment of debt). Refer to Note 1 - Basis of Presentation in the Condensed Consolidated Financial Statements for additional information related to the Joint Venture Arrangement, and Note 12 - Debt in the Condensed Consolidated Financial Statements for additional information related to the Joint Venture Financing Arrangement.

•During the first quarter 2026, the Company repurchased approximately $101 million of its 5.50% Senior Unsecured Notes due August 2028 for an aggregate purchase price of approximately $45 million. The Company recognized a gain of approximately $56 million on the early extinguishment of the debt, which was recorded to Other (income) expenses, net in the Condensed Consolidated Statement of Loss.

•As of May 7, 2026, and based on our March availability calculation, we have availability of $387 million before letters of credit issued under the ABL Facility of approximately $98 million. There are no current borrowings outstanding. Accordingly, our net availability is approximately $289 million. Certain debt covenants limit our total amount of secured debt outstanding. As of the date of our filing, our capacity under the ABL was not limited by any debt covenants. Our capacity to borrow under the ABL Facility may be adversely impacted by the terms of the ABL Facility and certain other agreements that govern our indebtedness.

•We now expect operating cash flows to be approximately $350 million, which is a decrease from our previous guidance of $360 million, reflecting higher interest expense related to funding from the Joint Venture Financing Arrangement. Although not committed, we believe we have the ability to sell finance receivables for additional liquidity.

Xerox 2026 Form 10-Q 54

Cash Flow Analysis

The following summarizes our cash, cash equivalents and restricted cash:

Cash Flows from Operating Activities

Net cash used in operating activities was $144 million for the three months ended March 31, 2026, an increase of $55 million from the prior year period. Cash flow from operating activities was impacted by a $62 million decrease related to finance receivables, primarily due to lower sales of finance receivables, partially offset by increased portfolio run-off as origination volumes declined. Working capital changes contributed to the use of cash, including higher accounts receivable and a lower year-over-year benefit from accounts payable, which reflected, in part, our ongoing working capital management initiatives, including the alignment of certain vendor payment terms. These unfavorable working capital movements were partially offset by lower inventory levels. Refer to Note 8 – Finance Receivables, Net in the Condensed Consolidated Financial Statements for additional information regarding the sale of finance receivables

Cash Flows from Investing Activities

Net cash used in investing activities was $24 million for the three months ended March 31, 2026, reflecting a change of $30 million from the prior year period, which was primarily driven by the sale of surplus property and assets in the U.S. in the prior year.

Cash Flows from Financing Activities

Net cash provided by financing activities was $242 million for the three months ended March 31, 2026, as compared to net cash used in financing activities of $159 million in the prior year period. The increase in cash primarily reflected higher net debt issuances and lower dividend payments in 2026. During 2025, financing activities included the repayments of existing debt, including secured financing arrangements, secured promissory notes and Term Loan B borrowings.

Debt and Customer Financing Activities

The following summarizes our debt:

(1) As of March 31, 2026, amount reflects debt of $450 million associated with the Joint Venture Arrangement as described in Note 1 - Basis of Presentation in the Condensed Consolidated Financial Statements, and Note 12 - Debt in the Condensed Consolidated Financial Statements.

Refer to Note 12 - Debt in the Condensed Consolidated Financial Statements for additional information regarding debt.

Xerox 2026 Form 10-Q 55

Finance Assets and Related Debt

The following represents our total finance assets, net associated with our lease and finance operations:

(1)Includes (i) Billed portion of finance receivables, net, (ii) Finance receivables, net and (iii) Finance receivables due after one year, net as included in our Condensed Consolidated Balance Sheets.

Our lease contracts permit customers to pay for equipment over time rather than at the date of installation; therefore, we maintain a certain level of debt (that we refer to as financing debt) to support our investment in these lease contracts, which are reflected in Total finance assets, net. For this financing aspect of our business, we maintain an assumed 7:1 leverage ratio of debt to equity as compared to our finance assets.

Based on this leverage, the following represents the breakdown of total debt between financing debt and core debt:

(1)Finance receivables debt is the basis for our calculation of Equipment financing interest expense, which is included in Cost of services, maintenance, rentals and other in the Condensed Consolidated Statements of (Loss).

Sales of Finance Receivables and Third Party Leasing Programs

Refer to Note 8 - Finance Receivables, Net in the Condensed Consolidated Financial Statements for additional information regarding our sales of finance receivables and our third party leasing programs.

Capital Market/Debt Activity

Refer to Note 12 - Debt in the Condensed Consolidated Financial Statements for additional information regarding our debt activity including our Joint Venture Financing Arrangement and the early redemptions of debt during the first quarter 2026.

Liquidity and Financial Flexibility

We manage our worldwide liquidity using internal cash management practices, which are subject to i) the statutes, regulations and practices of each of the local jurisdictions in which we operate, ii) the legal requirements of the agreements to which we are a party, and iii) the policies and cooperation of the financial institutions we utilize to maintain and provide cash management services. Our principal debt maturities are spread over the next five years as follows:

(1)Represents subsidiaries of Xerox Corporation. As of March 31, 2026, amount reflects debt of $450 million associated with the Joint Venture Arrangement as described in Note 1 - Basis of Presentation in the Condensed Consolidated Financial Statements, and Note 12 - Debt in the Condensed Consolidated Financial Statements.

Refer to Note 12 - Debt in the Condensed Consolidated Financial Statements for additional information regarding debt.

Xerox 2026 Form 10-Q 56

Treasury Stock

Xerox Holdings Corporation made no open-market repurchases of its Common Stock during 2026.