Some posts here are blindly cheering that “Lexmark is the only hope for Xerox” quoting some mythical +$289M EBITDA as proof.
Well, I actually read Lexmark’s 2024 audited financials, and what I found is the exact opposite of a savior story.
If you think Lexmark is a cash cow, buckle up. The numbers tell a very different (and very ugly) story:
- Operating Income: –$614M (yep, a LOSS — not a profit)
- Net Loss: –$743M
- Comprehensive Loss: –$790M
- Member Equity: got cut nearly in half in one year — from $1.43B to $635M
- Cash Flow from Ops: a measly +$19M (and that’s before capex, interest, and debt service)
- And that magic “+289M EBITDA” being quoted? It’s basically an accounting mirage: addbacks for D&A and nearly $850M of goodwill and trade name impairments. You don’t take an $850M write-down when your business is thriving.
Yes, Lexmark is “leaner” and has fewer layers of middle management. Good for them.
But financially? They’re just as stressed as Xerox, maybe more:
- 12% of their trade receivables are past due (up from 2% in 2023) — that’s a giant credit risk red flag.
- They’re carrying nearly $1B in debt and only $100M in cash.
- They’re burning equity at a frightening pace: nearly $800M torched in 12 months.
So no, Lexmark is not swooping in to save the day with magical profits and perfect processes.
What Xerox just bought is another turnaround project — financed with 10–13.5% junk debt.
“Doing it the Lexmark way” might cut some decision-making cycles, but let’s not kid ourselves: this isn’t some hyper-profitable golden goose; it’s another printer OEM fighting gravity.
If the “synergies” do not materialise quickly, the only thing that will be reduced is the workforce... something that, incidentally, is going to happen anyway and imminently (it will be announced in mid-October at the latest).