Financial Analysis

Litigation and contingencies The company is involved in a wide range of lawsuits, claims, investigations and proceedings, which arise in the ordinary course of business, including actions with respect to commercial and government contracts, labor and employment, employee benefits, environmental matters, intellectual property and non-income tax matters. Further, given the rapidly evolving external landscape of cybersecurity, privacy and data protection laws, regulations, threat actors, and heightened client expectations and demands, the company and its clients have been and will continue to be subject to actions or proceedings in various jurisdictions. These matters can involve a number of different parties, including competitors, clients, current or former employees, government and regulatory agencies, stockholders and representatives of the locations in which the company does business. Many of these matters are also highly complex and may seek recovery on behalf of a class or similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters. The company records a provision for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated and a gain contingency when the award or recovery is realized or realizable. Significant judgment is required in both the determination of probability and the determination as to wheth …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the companys revenue disaggregated by type of revenue: Year ended December 31, 2025 2024 2023 Services $ 1,611.0 $ 1,665.3 $ 1,665.9 Technology (i) 339.1 343.1 349.5 Total revenue $ 1,950.1 $ 2,008.4 $ 2,015.4 (i) Technology represents hardware and software license revenue. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Financial instruments and concentration of credit risks Due to its foreign operations, the company is exposed to the effects of foreign currency exchange rate fluctuations on the U.S. dollar, principally related to intercompany account balances. In 2025, the company ceased its use of foreign currency forward contracts. At December 31, 2025, there is no notional amount of foreign currency forward contracts and at December 31, 2024, the notional amount was $501.3 million. These contracts generally had maturities of three months or less and were not designated as hedging instruments. The following table summarizes the fair value of the companys foreign exchange forward contracts. The fair value of these forward contracts was based on quoted prices for similar but not identical financial instruments; as such, the inputs were considered Level 2 inputs. As of December 31, 2024 Balance Sheet Location Prepaid expenses and other current assets $ 0.1 Other accrued liabilities 9.5 Total fair value $ (9.4) The following table summarizes the location and amount of gains (losses) recognized on foreign exchange forward contracts. Year Ended December 31, 2025 2024 2023 Statement of Income Location Other (expense), net $ 46.4 $ (35.6) $ 13.5 Other financial instruments include temporary cash investments and customer accounts receivable. Temporary investments are placed with creditworthy financial institutions, primarily in money market funds, time deposits and certificate of deposits, which m …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Goodwill and intangible assets Goodwill The net carrying value of goodwill by reporting unit was as follows: Total DWS CA&I ECS Balance at December 31, 2023 (i) $ 287.4 $ 140.8 $ 54.5 $ 92.1 Goodwill impairment (ii) (39.1) (39.1) Translation adjustments (0.4) (0.4) Balance at December 31, 2024 (i) 247.9 101.3 54.5 92.1 Goodwill impairment (ii) (55.0) (55.0) Translation adjustments 0.9 0.9 Balance at December 31, 2025 $ 193.8 $ 47.2 $ 54.5 $ 92.1 (i) CA&I and ECS reporting units goodwill balances were reclassified as of December 31, 2024 and 2023 to conform with the current period reporting units presentation. There was no change to the DWS goodwill amount. See Note 18, Segment information for additional information on the changes to the companys operating and reportable segments. (ii) During the third quarter of 2025 and 2024, the company recorded goodwill impairment charges of $55.0 million and $39.1 million, respectively, in its DWS reporting unit as the carrying value exceeded its fair value. See Note 1, ""Description of business and significant accounting policies"" for additional details. Goodwill is presented net of accumulated impairment losses of $94.1 million and $39.1 million as of December 31, 2025 and 2024, respectively, attributable to the DWS reporting unit. At both December 31, 2025 and 2024, there was no goodwill allocated to reporting units with negative net assets. Intangible Assets, Net Intangible assets, net at December 31, 2025 and 2024 consists …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income taxes The components of the loss before income taxes and the provision for income taxes for the year ended December 31, 2025 in accordance with the disclosure requirements of ASU 2023-09 are as follows: Year ended December 31, 2025 Income (loss) before income taxes United States $ (451.0) Foreign 178.8 Total loss before income taxes $ (272.2) Provision for income taxes Current Federal $ State 1.2 Foreign 58.9 Total current 60.1 Deferred Federal $ State Foreign 7.7 Total provision for income taxes $ 67.8 The components of the loss before income taxes and the provision for income taxes for the years ended December 31, 2024 and 2023 as previously disclosed prior to the adoption of ASU 2023-09 are as follows: Year ended December 31, 2024 2023 Income (loss) before income taxes United States $ (268.7) $ (545.5) Foreign 193.4 197.7 Total loss before income taxes $ (75.3) $ (347.8) Provision for income taxes Current United States $ 21.1 $ 8.8 Foreign 61.2 46.0 Total current 82.3 54.8 Deferred United States 18.7 Foreign 16.9 24.5 Total provision for income taxes $ 117.9 $ 79.3 The following table is a reconciliation of the benefit for income taxes at the United States (U.S.) statutory tax rate to the companys effective tax rate for the year ended December 31, 2025 in accordance with the disclosure requirements of ASU 2023-09: Year ended December 31, 2025 Amount Percent U.S. statutory income tax benefit $ (57.2) 21.0 % State and local income taxes, net of federal benefit (i) 1.0 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases and commitments The components of lease expense are as follows: Year ended December 31, 2025 2024 2023 Operating lease cost $ 19.0 $ 22.8 $ 26.0 Finance lease cost Amortization of right-of-use assets 1.3 0.1 0.2 Interest on lease liabilities 1.6 Total finance lease cost 2.9 0.1 0.2 Short-term lease costs 2.8 0.5 0.7 Variable lease cost 13.6 12.7 10.3 Sublease income (0.2) (0.5) (1.1) Total lease cost $ 38.1 $ 35.6 $ 36.1 Supplemental balance sheet information related to leases is as follows: As of December 31, 2025 2024 Operating Leases Operating lease right-of-use assets $ 38.4 $ 38.4 Other accrued liabilities 16.0 15.0 Long-term operating lease liabilities 30.6 28.9 Total operating lease liabilities $ 46.6 $ 43.9 Finance Leases Capitalized contract costs, net $ 36.7 $ Current maturities of long-term debt 7.2 0.5 Long-term debt 34.0 2.3 Total finance lease liabilities $ 41.2 $ 2.8 Weighted-Average Remaining Lease Term (in years) Operating leases 3.8 3.9 Finance leases 4.7 4.6 Weighted-Average Discount Rate Operating leases 9.2 % 9.1 % Finance leases 9.0 % 6.1 % Supplemental cash flow information related to leases is as follows: Years ended December 31, 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Cash payments for operating leases included in operating activities $ 20.3 $ 26.2 $ 31.5 Cash payments for finance leases included in financing activities 1.7 0.1 0.2 ROU assets obtained in exchange for lease obligations are as follow …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Debt Long-term debt is comprised of the following: As of December 31, 2025 2024 10.625% senior secured notes due January 15, 2031 (Face value of $700.0 million less unamortized issuance costs of $12.8 million at December 31, 2025) $ 687.2 $ 6.875% senior secured notes due November 1, 2027 (Face value of $485.0 million less unamortized issuance costs of $3.4 million at December 31, 2024) 481.6 Finance leases 41.2 2.8 Other debt 13.3 8.8 Total 741.7 493.2 Less current maturities 12.7 5.0 Total long-term debt $ 729.0 $ 488.2 Long-term debt is carried at amortized cost and its estimated fair value is based on market prices classified as Level 2 in the fair value hierarchy. Presented below are the estimated fair values of long-term debt. As of December 31, 2025 2024 10.625% senior secured notes due January 15, 2031 $ 717.5 $ 6.875% senior secured notes due November 1, 2027 $ $ 471.3 The companys principal sources of liquidity are cash on hand, cash from operations and its Amended and Restated ABL Credit Facility, discussed below. The company and certain international subsidiaries have access to uncommitted lines of credit from various banks. At December 31, 2025, the company had met all covenants and conditions under its various lending agreements. The company expects to continue to meet these covenants and conditions through at least the next twelve months. Maturities of long-term debt in each of the next five years and thereafter are as follows: Year Long-Term Debt 2026 $ 5.4 20 …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent accounting pronouncements and accounting changes Accounting Pronouncements Adopted Effective for the companys fiscal year ended December 31, 2025, the company adopted Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures (ASU 2023-09), issued by the Financial Accounting Standards Board (FASB), which enhances annual disclosures relating to the rate reconciliation and requires income taxes paid disclosures disaggregated by jurisdiction among other amendments. The adoption of ASU 2023-09 did not have a material impact to the companys consolidated financial statements and the required disclosures on income taxes were applied on a prospective basis, see Note 6, Income taxes. Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures , requiring additional disclosures about certain costs and expenses in the notes to the financial statements on an annual interim basis. The update is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted on either a prospective or retrospective basis. ASU 2024-03 is not expected to have a material effect on the companys consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Soft …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee plans Stock plans Under stockholder approved stock-based plans, stock options, stock appreciation rights, restricted stock and RSUs may be granted to officers, directors and other key employees. At December 31, 2025, 8.1 million shares of unissued common stock of the company were available for granting under these plans. As of December 31, 2025, the company has granted restricted stock and RSUs under these plans. The company recognizes compensation cost, net of a forfeiture rate, in selling, general and administrative expense, and recognizes compensation cost only for those awards expected to vest. The company estimates the forfeiture rate based on its historical experience and its expectations about future forfeitures. During the years ended December 31, 2025, 2024 and 2023, the company recorded $15.0 million, $21.2 million and $17.2 million of share-based restricted stock and RSU compensation expense, respectively. Restricted stock and RSU awards may contain time-based units, performance-based units, total shareholder return market-based units, or a combination of these units. Each performance-based and market-based unit will vest into zero to two shares depending on the degree to which the performance or market conditions are met. Compensation expense for performance-based awards is recognized as expense ratably for each installment from the date of grant until the date the restrictions lapse and is based on the fair market value at the date of grant and the proba …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Cost-reduction actions Cost-reduction charges and other costs recognized were as follows: Year ended December 31, 2025 2024 2023 Workforce reductions: Severance and other employee costs $ 27.6 $ 23.7 $ 15.2 Changes in estimates (4.6) (10.2) (6.9) Total workforce reductions 23.0 13.5 8.3 Lease abandonment costs 4.3 Asset impairment charges and write-offs (i) 3.2 4.4 1.1 Other cost reduction efforts, net (ii) 0.1 3.6 Total $ 30.5 $ 18.0 $ 13.0 (i) Asset impairment charges and write-offs relate to assets associated with exited operations and facilities. (ii) Other cost reduction efforts, net primarily include consulting fees and changes in estimates related to other cost-reduction efforts. The charges (credits) included in the table above were recorded in the following statement of income (loss) classifications: Year ended December 31, 2025 2024 2023 Cost of revenue $ 18.0 $ 12.1 $ 5.6 Selling, general and administrative 9.4 6.0 6.9 Research and development 3.1 (0.1) 0.5 Total $ 30.5 $ 18.0 $ 13.0 Liabilities and expected future payments related to the companys workforce reduction actions are as follows: Year ended December 31, 2025 2024 2023 Cost reduction liabilities, at beginning of year $ 13.0 $ 9.4 $ 11.7 Provision 27.6 23.7 15.2 Payments (12.0) (9.6) (10.8) Changes in estimates (4.6) (10.2) (6.9) Translation adjustments 0.8 (0.3) 0.2 Cost reduction liabilities, at end of year $ 24.8 13.0 9.4 Expected future payments on balance at December 31, 2025: In 2026 $ 24.8 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue The following table presents the companys revenue disaggregated by type of revenue: Year ended December 31, 2025 2024 2023 Services $ 1,611.0 $ 1,665.3 $ 1,665.9 Technology (i) 339.1 343.1 349.5 Total revenue $ 1,950.1 $ 2,008.4 $ 2,015.4 (i) Technology represents hardware and software license revenue. Contract Assets and Deferred Revenue Contract assets represent rights to consideration in exchange for goods or services transferred to a customer when that right is conditional on something other than the passage of time. Deferred revenue represents contract liabilities. Net contract assets (liabilities) are as follows: As of December 31, 2025 2024 Contract assets - current $ 10.9 $ 16.0 Contract assets - long-term (i) 4.1 6.0 Deferred revenue - current (228.5) (210.4) Deferred revenue - long-term (100.7) (108.8) (i) Reported in other long-term assets on the companys consolidated balance sheets. Significant changes in the above contract liability balances were as follows: Year ended December 31, 2025 2024 Revenue recognized that was included in deferred revenue at the beginning of the period $ 215.1 $ 189.5 Capitalized Contract Costs The companys capitalized contract costs, net include the following: As of December 31, 2025 2024 Deferred commissions, net $ 8.7 $ 7.2 Costs to fulfill a contract, net 16.7 12.9 Other capitalized assets, net (i) 48.2 11.1 Total capitalized contract costs, net $ 73.6 $ 31.2 (i) As of December 31, 2025, other capitalized assets, net includes …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment information In January 2025, the company changed its organizational structure to better align its portfolio of solutions to more effectively address evolving client needs and take further advantage of the synergies across the companys reportable segments. The companys business processing solutions, which were reported within Other, have been integrated into the companys ECS and CA&I reportable segments. Additionally, the companys application development and modernization capabilities, which were reported within ECS, have been operationally centralized within CA&I. These changes did not impact the companys consolidated financial statements as of December 31, 2024 and 2023. Prior period amounts have been reclassified to be comparable to the current periods presentation. The companys reportable segments are as follows: Digital Workplace Solutions (DWS), which provides workplace solutions featuring intelligent workplace services, proactive experience management and collaboration tools to support business growth; Cloud, Applications & Infrastructure Solutions (CA&I), which provides digital transformation in the areas of cloud migration and management, applications and infrastructure transformation and modernization solutions; and Enterprise Computing Solutions (ECS), which provides solutions that harness secure, high-intensity enterprise computing and enable digital services through software-defined operating environments. This segment structure reflects th …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Description of business and significant accounting policies Description of business Unisys Corporation, a Delaware corporation (Unisys, we, our, or the company), is a global information technology solutions company. The company delivers strategic guidance and essential capabilities to its worldwide clients, enabling them to architect, develop, modernize, implement and integrate the technologies that support their organizations. With a long history, Unisys solutions and services are provided through global capabilities, which allows us to execute large-scale, rapid technology migration, and modernization projects to create breakthroughs and outcomes that matter for the companys clients. Principles of consolidation The consolidated financial statements include the accounts of all majority-owned subsidiaries. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (GAAP) requires management to make estimates and assumptions about future events. These estimates and assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and the reported amounts of revenue and expenses. Such estimates include the valuation of estimated credit losses, contract assets, operating lease right-of-use assets, capitalized contract costs assets, marketable software, goodwill, purchased intangibles and other long-lived assets, legal and environmental co …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders equity The company has 150 million authorized shares of common stock, par value $.01 per share, and 40 million shares of authorized preferred stock, par value $1 per share, issuable in series. At December 31, 2025, 8.3 million shares of unissued common stock of the company were reserved for future issuance. Accumulated other comprehensive loss is as follows: Total Translation Adjustments Pension and Postretirement Plans Balance at December 31, 2022 $ (3,076.0) $ (977.4) $ (2,098.6) Other comprehensive (loss) income before reclassifications (142.8) 68.3 (211.1) Amounts reclassified from accumulated other comprehensive loss 418.5 (3.7) 422.2 Current period other comprehensive income 275.7 64.6 211.1 Balance at December 31, 2023 (2,800.3) (912.8) (1,887.5) Other comprehensive loss before reclassifications (165.0) (74.5) (90.5) Amounts reclassified from accumulated other comprehensive loss 208.1 2.6 205.5 Current period other comprehensive income (loss) 43.1 (71.9) 115.0 Balance at December 31, 2024 (2,757.2) (984.7) (1,772.5) Other comprehensive income (loss) before reclassifications 18.1 115.6 (97.5) Amounts reclassified from accumulated other comprehensive loss 311.2 (2.7) 313.9 Current period other comprehensive income 329.3 112.9 216.4 Balance at December 31, 2025 $ (2,427.9) $ (871.8) $ (1,556.1) Amounts reclassified out of accumulated other comprehensive loss are as follows: Year ended December 31, 2025 2024 2023 Translation adjustments: Adjustment for substan …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Litigation and Contingencies The company is involved in a wide range of lawsuits, claims, investigations and proceedings, which arise in the ordinary course of business, including actions with respect to commercial and government contracts, labor and employment, employee benefits, environmental matters, intellectual property and non-income tax matters. Further, given the rapidly evolving external landscape of cybersecurity, privacy, artificial intelligence, and data protection laws, regulations, threat actors, and heightened client expectations and demands, the company and its clients have been and will continue to be subject to actions or proceedings in various jurisdictions. These matters can involve a number of different parties, including competitors, clients, current or former employees, government and regulatory agencies, stockholders and representatives of the locations in which the company does business. Many of these matters are also highly complex and may seek recovery on behalf of a class or similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters. The company records a provision for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated and a gain contingency when the award or recovery is realized or realizable. Significant judgment is required in both the determination of probability and the …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the companys revenue disaggregated by type of revenue: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Services $ 412.6 $ 412.2 $ 807.9 $ 798.4 Technology (i) 60.9 71.1 103.2 117.0 Total revenue $ 473.5 $ 483.3 $ 911.1 $ 915.4 (i) Technology represents hardware and software license revenue. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock Compensation Under stockholder approved stock-based plans, stock options, stock appreciation rights, restricted stock and restricted stock units (RSUs) may be granted to officers, directors and other key employees. As of June 30, 2026, the company has granted restricted stock and RSUs under these plans. The company recognizes compensation cost, net of a forfeiture rate, in selling, general and administrative expense, and recognizes compensation cost only for those awards expected to vest. The company estimates the forfeiture rate based on its historical experience and its expectations about future forfeitures. During the six months ended June 30, 2026 and 2025, the company recorded $7.2 million and $9.7 million of share-based restricted stock and RSU compensation expense, respectively. Restricted stock and RSU awards may contain time-based units, performance-based units, total shareholder return market-based units, or a combination of these units. Each performance-based and market-based unit will vest into zero to two shares depending on the degree to which the performance or market conditions are met. Compensation expense for performance-based awards is recognized as expense ratably for each installment from the date of grant until the date the restrictions lapse and is based on the fair market value at the date of grant and the probability of achievement of the specific performance-related goals. Compensation expense for market-related awards is recognized as expense …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Financial Instruments and Fair Value Measurements Due to its foreign operations, the company is exposed to the effects of foreign currency exchange rate fluctuations on the U.S. dollar, principally related to intercompany account balances. In the third quarter of 2025, the company ceased its use of foreign currency forward contracts, as such these contracts have no remaining notional amounts since December 31, 2025. For the three and six months ended June 30, 2025, gains recognized on foreign currency exchange forward contracts were $38.0 million and $53.9 million, respectively, and included within other (expense), net in the consolidated statements of income (loss). These contracts were not designated as hedging instruments and the fair value was based on quoted prices for similar but not identical financial instruments; as such, the inputs were considered Level 2 inputs. Financial assets with carrying values approximating fair value include cash and cash equivalents and accounts receivable. Financial liabilities with carrying values approximating fair value include accounts payable and other liabilities. The carrying amounts of these financial assets and liabilities approximate fair value due to their short maturities. Such financial instruments are not included in the following table that provides information about the estimated fair values of other financial instruments that are not measured at fair value in the consolidated balance sheets as of June 30, 2026 and December …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets The net carrying value of goodwill by reporting unit was as follows: Total DWS CA&I ECS Balance at December 31, 2025 $ 193.8 $ 47.2 $ 54.5 $ 92.1 Goodwill impairment (47.2) (47.2) Balance at June 30, 2026 $ 146.6 $ $ 54.5 $ 92.1 Goodwill is presented net of accumulated impairment losses of $141.3 million and $94.1 million as of June 30, 2026 and December 31, 2025, respectively, attributable to the DWS reporting unit. For the three and six months ended June 30, 2026, the company recognized an impairment loss of $47.2 million on goodwill associated with the DWS reporting unit. The impairment charge was recorded within goodwill and intangible asset impairment in the consolidated statements of income (loss) Goodwill Impairment The company reviews goodwill for impairment annually, as well as whenever there are events or changes in circumstances (triggering events), which indicate that the carrying amount may not be recoverable. The company continuously monitors its revenue, gross profit and operating profit growth and evaluates other relevant events and circumstances including changes to U.S. treasury rates and equity risk premiums, tax rates, recent market valuations from transactions by comparable companies, volatility in the companys market capitalization, and general industry, market and macro-economic conditions, that could unfavorably impact the recoverability of the goodwill carrying value. During the second quarter of 2026, the company re …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes For the three and six months ended June 30, 2026, the provision for income taxes was $15.8 million and $29.5 million, respectively, primarily driven by the geographic distribution of income. For the three and six months ended June 30, 2026, the effective tax rate was (19.8)% and (28.7)%, respectively, primarily driven by U.S. operating losses with no tax benefit as the deferred tax assets are subject to a full valuation allowance, non-creditable withholding taxes in the U.S., and jurisdictions with no valuation allowance that are subject to tax. For the three and six months ended June 30, 2025, the provision for income taxes was $20.0 million and $30.6 million, respectively, primarily driven by the geographic distribution of income. For the three months ended June 30, 2025, the effective tax rate is not a meaningful measure due to the lack of pre-tax income or loss. For the six months ended June 30, 2025, the effective tax rate was (153.0)%, primarily driven by non-creditable withholding taxes in the U.S., jurisdictions with no valuation allowance that are subject to tax, and U.S. operating losses with no tax benefit as the deferred tax assets are subject to a full valuation allowance.

IncomeTaxDisclosureTextBlock

Debt Long-term debt is comprised of the following: June 30, 2026 December 31, 2025 10.625% senior secured notes due January 15, 2031 (Face value of $698.4 million and $700.0 million less unamortized issuance costs of $11.5 million and $12.8 million at June 30, 2026 and December 31, 2025, respectively) (i) $ 686.9 $ 687.2 Finance leases 37.3 41.2 Other debt 9.3 13.3 Total 733.5 741.7 Less current maturities 11.6 12.7 Total long-term debt $ 721.9 $ 729.0 (i) See Note 10 for the fair value of the notes. Senior Secured Notes due 2031 In June 2025, the company completed a private placement offering of $700.0 million aggregate principal amount of its 10.625% Senior Secured Notes due 2031 (the 2031 Notes). The 2031 Notes pay interest semiannually on January 15 and July 15, and will mature on January 15, 2031, unless earlier repurchased or redeemed by the company. The 2031 Notes are fully and unconditionally guaranteed on a senior secured basis by Unisys Holding Corporation, Unisys AP Investment Company I and Unisys NPL, Inc., each a Delaware corporation that is directly or indirectly wholly owned by the company (the Subsidiary Guarantors). During the six months ended June 30, 2026, the company repurchased $1.6 million of the 2031 Notes from the open market for $1.4 million. The company recorded a gain on debt extinguishment of $0.2 million, reported in other (expense), net. Interest expense related to the 2031 Notes is comprised of the following: Three Months Ended June 30, Six Mont …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Accounting Standards Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (ASU 2024-03) requiring additional disclosures about certain costs and expenses in the notes to the financial statements on an annual and interim basis. This update is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted on either a prospective or retrospective basis. ASU 2024-03 is not expected to have a material effect on the companys consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06), which simplifies the capitalization guidance for internal-use software costs by removing all references to software development project stages. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted on either a prospective, retrospective or a modified transition approach. The company is currently evaluating the impact of the standard on its consolidated financial statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Pension and Postretirement Benefits Net periodic pension expense is presented below: Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Total U.S. Plans International Plans Total U.S. Plans International Plans Service cost (i) $ 0.4 $ $ 0.4 $ 0.3 $ $ 0.3 Interest cost 40.1 21.4 18.7 46.8 27.9 18.9 Expected return on plan assets (35.8) (15.6) (20.2) (48.5) (26.3) (22.2) Amortization of prior service benefit (1.3) (0.7) (0.6) (1.2) (0.7) (0.5) Recognized net actuarial loss 26.4 17.5 8.9 24.5 18.1 6.4 Net periodic pension expense $ 29.8 $ 22.6 $ 7.2 $ 21.9 $ 19.0 $ 2.9 Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Total U.S. Plans International Plans Total U.S. Plans International Plans Service cost (i) $ 0.8 $ $ 0.8 $ 0.7 $ $ 0.7 Interest cost 80.1 42.9 37.2 92.4 55.8 36.6 Expected return on plan assets (71.8) (31.3) (40.5) (95.6) (52.6) (43.0) Amortization of prior service benefit (2.4) (1.3) (1.1) (2.3) (1.3) (1.0) Recognized net actuarial loss 53.1 35.0 18.1 48.5 36.1 12.4 Net periodic pension expense $ 59.8 $ 45.3 $ 14.5 $ 43.7 $ 38.0 $ 5.7 (i) Service cost is reported in selling, general and administrative expense. All other components of net periodic pension expense are reported in other (expense), net in the consolidated statements of income (loss). During the six months ended June 30, 2026, the company made cash contributions of $57.4 million to its global defined benefit pension plans. For the remainder of 2026, the company expects to mak …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Cost-Reduction Actions The company from time to time initiates cost reduction actions designed to improve operating efficiency, reduce costs and align the companys workforce and facility structures to its overall business plan. Cost-reduction charges (credits) and other costs recognized were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Workforce reductions: Severance and other employee costs $ 4.3 $ 4.1 $ 8.4 $ 5.2 Changes in estimates (0.2) (2.6) (3.6) (4.0) Total workforce reductions 4.1 1.5 4.8 1.2 Lease abandonment and other costs 2.0 0.1 2.8 0.3 Asset impairment charges and write-offs (i) 3.2 3.2 Total $ 6.1 $ 4.8 $ 7.6 $ 4.7 (i) Asset impairment charges and write-offs relate to assets associated with exited operations and facilities. The charges (credits) were recorded in the following statement of income (loss) classifications: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cost of revenue $ 3.1 $ 5.6 $ 2.8 $ 5.1 Selling, general and administrative 2.7 (0.9) 4.9 (0.4) Research and development 0.3 0.1 (0.1) Total $ 6.1 $ 4.8 $ 7.6 $ 4.7 Liabilities and expected future payments related to the companys workforce reduction actions are as follows: Total Balance at December 31, 2025 $ 24.8 Provisions 8.4 Payments (15.9) Changes in estimates (3.6) Translation adjustments (0.2) Balance at June 30, 2026 $ 13.5 Expected future utilization on balance at June 30, 2026: Short-term $ 13.5 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue The following table presents the companys revenue disaggregated by type of revenue: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Services $ 412.6 $ 412.2 $ 807.9 $ 798.4 Technology (i) 60.9 71.1 103.2 117.0 Total revenue $ 473.5 $ 483.3 $ 911.1 $ 915.4 (i) Technology represents hardware and software license revenue. Contract Assets and Deferred Revenue Contract assets represent rights to consideration in exchange for goods or services transferred to a customer when that right is conditional on something other than the passage of time. Deferred revenue represents contract liabilities. Net contract assets (liabilities) are as follows: June 30, 2026 December 31, 2025 Contract assets - current $ 11.2 $ 10.9 Contract assets - long-term (i) 2.6 4.1 Deferred revenue - current (200.7) (228.5) Deferred revenue - long-term (83.0) (100.7) (i) Reported in other long-term assets on the companys consolidated balance sheets. Significant changes in the above contract liability balances were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue recognized that was included in deferred revenue at the beginning of the period $ 58.4 $ 58.6 $ 125.3 $ 130.0 Capitalized Contract Costs The companys capitalized contract costs, net include the following: June 30, 2026 December 31, 2025 Deferred commissions, net $ 6.3 $ 8.7 Costs to fulfill a contract, net 20.4 16.7 Other capitalized assets, net 44.5 48.2 Total capitalized con …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information The companys reportable segments are as follows: Digital Workplace Solutions (DWS), which provides workplace solutions featuring intelligent workplace services, proactive experience management and collaboration tools to support business growth; Cloud, Applications & Infrastructure Solutions (CA&I), which provides digital transformation in the areas of cloud migration and management, applications and infrastructure transformation and modernization solutions; and Enterprise Computing Solutions (ECS), which provides solutions that harness secure, high-intensity enterprise computing and enable digital services through software-defined operating environments. This segment structure reflects the financial information used by the companys chief operating decision maker (CODM) to make decisions regarding the companys business, including resource allocations and performance assessments, as well as the current operating focus. The CODM evaluates the performance of the segments based on segment revenue and segment gross profit. The companys CODM regularly reviews cost of revenues by segment and treats it as a significant segment expense. Segment revenue and segment gross profit are exclusive of certain activities and expenses that are not allocated to specific segments and reported in Other as described below. The company does not report assets by reportable segments as this information is not reviewed by the CODM on a regular basis. Other, as presented in th …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing