Xerox Holdings (NASDAQ: XRX) stock rose to $3.45 after the company revealed it sold$105 million in tariff refund claims for $80 million in cash during the second quarter to accelerate debt reduction and improve liquidity. The company recorded the $105 million tariff refund receivables in gross profit before selling the claims at a discount to a third party, allowing Xerox to receive immediate cash rather than wait for the refunds to be paid. Chief Financial Officer Chuck Butler said a significant portion of the $80 million in proceeds was used to repurchase outstanding debt at a discount, reducing leverage ahead of upcoming debt maturities. The move underscores Xerox’s strategy to strengthen its balance sheet by converting future government receivables into cash while lowering financing costs, a decision that investors appeared to applaud as XRX stock gained following the announcement.
