Concentrix Reports Second Quarter 2025 Results
Concentrix (NASDAQ: CNXC), a global technology and services leader, reported its Q2 2025 financial results, exceeding revenue guidance with $2.42 billion in revenue, up 1.5% year-over-year. The company generated $200.3 million in adjusted free cash flow and expects to deliver $625-650 million for the full year.
Key metrics include operating income of $148.3 million (6.1% margin), non-GAAP operating income of $303.7 million (12.6% margin), and diluted EPS of $0.63. The company declared a quarterly dividend of $0.33275 per share and repurchased 920,000 shares at an average cost of $49.09.
For FY2025, Concentrix raised its growth outlook, projecting revenue of $9.72-9.82 billion and plans to return over $240 million to shareholders through dividends and share repurchases.
Concentrix (NASDAQ: CNXC), leader globale nel settore tecnologico e dei servizi, ha comunicato i risultati finanziari del secondo trimestre 2025, superando le previsioni di fatturato con 2,42 miliardi di dollari di ricavi, in crescita dell'1,5% rispetto all'anno precedente. L'azienda ha generato un flusso di cassa libero rettificato di 200,3 milioni di dollari e prevede di raggiungere tra 625 e 650 milioni di dollari per l'intero anno.
I principali indicatori includono un reddito operativo di 148,3 milioni di dollari (margine del 6,1%), un reddito operativo non-GAAP di 303,7 milioni di dollari (margine del 12,6%) e un utile per azione diluito di 0,63 dollari. La società ha dichiarato un dividendo trimestrale di 0,33275 dollari per azione e ha riacquistato 920.000 azioni a un costo medio di 49,09 dollari.
Per l'anno fiscale 2025, Concentrix ha rivisto al rialzo le previsioni di crescita, stimando ricavi tra 9,72 e 9,82 miliardi di dollari e pianificando di restituire oltre 240 milioni di dollari agli azionisti tramite dividendi e riacquisti di azioni.
Concentrix (NASDAQ: CNXC), líder global en tecnología y servicios, reportó sus resultados financieros del segundo trimestre de 2025, superando las previsiones de ingresos con 2,42 mil millones de dólares en ingresos, un aumento del 1,5% interanual. La compañía generó 200,3 millones de dólares en flujo de caja libre ajustado y espera entregar entre 625 y 650 millones de dólares para todo el año.
Las métricas clave incluyen un ingreso operativo de 148,3 millones de dólares (margen del 6,1%), ingreso operativo non-GAAP de 303,7 millones de dólares (margen del 12,6%) y una utilidad diluida por acción de 0,63 dólares. La empresa declaró un dividendo trimestral de 0,33275 dólares por acción y recompró 920.000 acciones a un costo promedio de 49,09 dólares.
Para el año fiscal 2025, Concentrix elevó sus perspectivas de crecimiento, proyectando ingresos entre 9,72 y 9,82 mil millones de dólares y planea devolver más de 240 millones de dólares a los accionistas a través de dividendos y recompras de acciones.
Concentrix (NASDAQ: CNXC)는 글로벌 기술 및 서비스 선두 기업으로서 2025년 2분기 재무 실적을 발표하며, 매출 가이던스를 초과하여 24억 2천만 달러의 매출을 기록하여 전년 대비 1.5% 증가했습니다. 회사는 2억 300만 달러의 조정된 자유 현금 흐름을 창출했으며, 연간으로는 6억 2,500만에서 6억 5,000만 달러를 달성할 것으로 예상합니다.
주요 지표로는 1억 4,830만 달러의 영업이익(6.1% 마진), 3억 370만 달러의 비-GAAP 영업이익(12.6% 마진), 그리고 희석 주당순이익(EPS) 0.63달러가 포함됩니다. 회사는 주당 0.33275달러의 분기 배당금을 선언했으며, 평균 주당 49.09달러에 92만 주를 재매입했습니다.
2025 회계연도에 대해 Concentrix는 성장 전망을 상향 조정하여 97억 2천만에서 98억 2천만 달러의 매출을 예상하며, 배당금과 주식 재매입을 통해 2억 4천만 달러 이상을 주주에게 환원할 계획입니다.
Concentrix (NASDAQ : CNXC), leader mondial des technologies et services, a publié ses résultats financiers du deuxième trimestre 2025, dépassant ses prévisions de revenus avec 2,42 milliards de dollars de chiffre d'affaires, en hausse de 1,5 % d'une année sur l'autre. L'entreprise a généré un flux de trésorerie disponible ajusté de 200,3 millions de dollars et prévoit d'atteindre entre 625 et 650 millions de dollars pour l'ensemble de l'année.
Les indicateurs clés comprennent un résultat d'exploitation de 148,3 millions de dollars (marge de 6,1 %), un résultat d'exploitation non-GAAP de 303,7 millions de dollars (marge de 12,6 %) et un bénéfice dilué par action de 0,63 dollar. La société a déclaré un dividende trimestriel de 0,33275 dollar par action et a racheté 920 000 actions à un coût moyen de 49,09 dollars.
Pour l'exercice 2025, Concentrix a relevé ses perspectives de croissance, prévoyant un chiffre d'affaires compris entre 9,72 et 9,82 milliards de dollars et envisage de reverser plus de 240 millions de dollars aux actionnaires via des dividendes et des rachats d'actions.
Concentrix (NASDAQ: CNXC), ein weltweit führendes Technologie- und Dienstleistungsunternehmen, meldete seine Finanzergebnisse für das zweite Quartal 2025 und übertraf die Umsatzprognosen mit 2,42 Milliarden US-Dollar Umsatz, was einem Anstieg von 1,5 % im Jahresvergleich entspricht. Das Unternehmen erzielte einen bereinigten freien Cashflow von 200,3 Millionen US-Dollar und erwartet für das Gesamtjahr einen Wert zwischen 625 und 650 Millionen US-Dollar.
Wichtige Kennzahlen umfassen ein Betriebsergebnis von 148,3 Millionen US-Dollar (6,1 % Marge), ein Non-GAAP-Betriebsergebnis von 303,7 Millionen US-Dollar (12,6 % Marge) und ein verwässertes Ergebnis je Aktie (EPS) von 0,63 US-Dollar. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,33275 US-Dollar je Aktie und kaufte 920.000 Aktien zu einem durchschnittlichen Preis von 49,09 US-Dollar zurück.
Für das Geschäftsjahr 2025 hat Concentrix seine Wachstumsaussichten angehoben und prognostiziert einen Umsatz von 9,72 bis 9,82 Milliarden US-Dollar. Zudem plant das Unternehmen, über 240 Millionen US-Dollar an die Aktionäre durch Dividenden und Aktienrückkäufe zurückzugeben.
- Revenue exceeded guidance with 1.5% year-over-year growth to $2.42 billion
- Generated strong adjusted free cash flow of $200.3 million in Q2
- Raised full-year growth outlook with projected revenue of $9.72-9.82 billion
- Plans to return over $240 million to shareholders in FY2025
- Non-GAAP diluted EPS increased 0.4% to $2.70
- Seeing accelerated pace of activity with existing and new clients
- AI investments expected to be accretive by year end
- Operating income declined 1.3% to $148.3 million
- Net income dropped 37% to $42.1 million
- Operating margin decreased by 20 basis points to 6.1%
- Non-GAAP operating margin declined 90 basis points to 12.6%
- Adjusted EBITDA decreased 5.9% to $357.3 million
- Experienced temporary program pauses mid-quarter affecting performance
Insights
Concentrix reported mixed Q2 results with revenue growth but significant margin decline; outlook improving for H2 2025.
Concentrix delivered Q2 2025 results with better-than-expected revenue growth but concerning profitability metrics. Revenue reached
The company experienced particularly steep compression in net income, which plummeted
Margin metrics universally declined across measurement approaches – operating margin contracted 20 basis points to
Cash generation remained a bright spot with
Forward guidance suggests sequential improvement, with Concentrix raising its full-year growth outlook and projecting Q3 revenue between
While management highlighted "ongoing momentum for the Company's iX Product Suite" as a positive factor, the modest
- Exceeds revenue guidance for the quarter and raises full year growth outlook
- Generates
$200 million in adjusted free cash flow and remains on track to deliver$625 million to$650 million of adjusted free cash flow for the year - Sees ongoing momentum for the Company’s iX Product Suite
- Expects to return more than
$240 million to shareholders in fiscal 2025 through share repurchases and dividends
NEWARK, Calif., June 26, 2025 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced financial results for the fiscal second quarter ended May 31, 2025.
| Three Months Ended | ||||||||||
| May 31, 2025 | May 31, 2024 | Change | ||||||||
| Revenue ($M) | $ | 2,417.4 | $ | 2,380.7 | 1.5 | % | ||||
| Operating income ($M) | $ | 148.3 | $ | 150.2 | (1.3 | )% | ||||
| Non-GAAP operating income ($M) (1) | $ | 303.7 | $ | 321.1 | (5.4 | )% | ||||
| Operating margin | 6.1 | % | 6.3 | % | -20 bps | |||||
| Non-GAAP operating margin (1) | 12.6 | % | 13.5 | % | -90 bps | |||||
| Net income ($M) | $ | 42.1 | $ | 66.8 | (37.0 | )% | ||||
| Non-GAAP net income ($M) (1) | $ | 179.6 | $ | 183.1 | (1.9 | )% | ||||
| Adjusted EBITDA ($M) (1) | $ | 357.3 | $ | 379.6 | (5.9 | )% | ||||
| Adjusted EBITDA margin (1) | 14.8 | % | 15.9 | % | -110 bps | |||||
| Diluted earnings per common share | $ | 0.63 | $ | 0.98 | (35.7 | )% | ||||
| Non-GAAP diluted earnings per common share (1) | $ | 2.70 | $ | 2.69 | 0.4 | % | ||||
(1) See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
Second Quarter Fiscal 2025 Highlights:
- Revenue of
$2,417.4 million , an increase of1.5% year-on-year on an as reported and constant currency basis compared to revenue of$2,380.7 million in the prior year second quarter. - Operating income of
$148.3 million , or6.1% of revenue, compared to$150.2 million , or6.3% of revenue, in the prior year second quarter. - Non-GAAP operating income of
$303.7 million , or12.6% of revenue, compared to$321.1 million , or13.5% of revenue in the prior year second quarter, a decrease year-on-year primarily due to temporary program pauses mid-quarter and investments ahead of expected accelerated growth in the second half of the year. - Adjusted EBITDA of
$357.3 million , or14.8% of revenue, compared with$379.6 million , or15.9% of revenue in the prior year second quarter. - Cash flow provided by operations was
$236.5 million in the quarter. Adjusted free cash flow(1) was$200.3 million in the quarter. - Diluted earnings per common share (“EPS”) was
$0.63 compared to$0.98 in the prior year second quarter. - Non-GAAP diluted EPS was
$2.70 compared to$2.69 in the prior year second quarter.
“In the second quarter, we continued to outperform expectations on revenue growth despite some mid-quarter volatility,” said Chris Caldwell, President and CEO of Concentrix. “As we look ahead to the second half, we are seeing an accelerated pace of activity with both existing and new clients, and improving margins. Further, our AI investments are on pace to be accretive to the business by year end as planned. With ongoing momentum for our differentiated tech-led solutions, we expect continued growth for the remainder of the year.”
Quarterly Dividend and Share Repurchase Program:
- The Company paid a
$0.33 275 per share quarterly dividend on May 6, 2025. The Company’s Board of Directors has declared a quarterly dividend of$0.33 275 per share payable on August 5, 2025, to shareholders of record at the close of business on July 25, 2025. - The Company repurchased approximately 920,000 common shares in the second quarter at a cost of
$45.0 million under its previously announced share repurchase program at an average cost of$49.09 per share. At May 31, 2025, the Company’s remaining share repurchase authorization was$537.3 million .
Business Outlook
The following statements are based on the Company’s current expectations for the third quarter of fiscal 2025 and the full year fiscal 2025. Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, amortization of intangible assets, depreciation, share-based compensation, and the related tax effects thereon. The non-GAAP EPS guidance assumes no impact from changes in acquisition contingent consideration and foreign currency losses (gains), net included in other expense (income), net, and imputed interest related to the sellers’ note issued in connection with the combination with Webhelp (the “sellers’ note”) included in interest expense and finance charges, net. These statements are forward-looking and actual results may differ materially.
Third Quarter Fiscal 2025 Expectations:
- Third quarter reported revenue of
$2.44 5 billion to$2.47 0 billion. Based on current exchange rates, these expectations assume an approximate 140-basis point positive impact of foreign exchange rates compared with the prior year period. The guidance implies constant currency revenue growth for the quarter ranging from1.0% to2.0% . - Operating income of
$162 million to$172 million and non-GAAP operating income of$318 million to$328 million . - Non-GAAP EPS of
$2.80 t o$2.91 , assuming approximately 62.7 million diluted common shares outstanding and approximately5% of net income attributable to participating securities. - The effective tax rate is expected to be approximately
25.5% .
Full Year Fiscal 2025 Expectations:
- Full year reported revenue of
$9.72 0 billion to$9.81 5 billion. Based on current exchange rates, the expectations assume a de minimis impact of foreign exchange rates compared with the prior year. The guidance implies constant currency revenue growth for the full year of1.0% to2.0% . - Operating income of
$675 million to$695 million and non-GAAP operating income of$1,300 million to$1,320 million . - Non-GAAP EPS of
$11.53 t o$11.76 , assuming approximately 63.1 million diluted common shares outstanding and approximately5% of net income attributable to participating securities. - The effective tax rate is expected to be approximately
25% .
In addition, the Company expects to generate approximately
The Company believes that a quantitative reconciliation of the non-GAAP EPS outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to (a) the inability to forecast future changes in acquisition contingent consideration, which is based, in part, on the future trading price of the Company’s common stock, and (b) the inability to forecast future foreign currency losses (gains), net included in other expense (income), net. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results.
The Company believes that a quantitative reconciliation of the adjusted free cash flow outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to uncertainty related to the future changes in the Company’s factoring program and related timing of those changes. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results.
Conference Call and Webcast
The Company will host a conference call for investors to review its second quarter fiscal 2025 results today at 5:00 p.m. (ET)/2:00 p.m. (PT).
The live conference call webcast will be available in listen-only mode in the Investor Relations section of the Company’s website under “Events and Presentations” at https://ir.concentrix.com/events-and-presentations. A replay will also be available on the website following the conference call.
About us: Experience the power of Concentrix
Concentrix Corporation (NASDAQ: CNXC), a Fortune 500® company, is the global technology and services leader that powers the world’s best brands, today and into the future. We’re human-centered, tech-powered, intelligence-fueled. Every day, we design, build, and run fully integrated, end-to-end solutions at speed and scale across the entire enterprise, helping over 2,000 clients solve their toughest business challenges. Whether it’s designing game-changing brand experiences, building and scaling secure AI technologies, or running digital operations that deliver global consistency with a local touch, we have it covered. At the heart of everything we do lies a commitment to transforming the way companies connect, interact, and grow. We’re here to redefine what success means, delivering outcomes unimagined across every major vertical in 70+ markets. Virtually everywhere. Visit concentrix.com to learn more.
Use of Non-GAAP Information
In addition to disclosing financial results that are determined in accordance with GAAP, we also disclose certain non-GAAP financial information, including:
- Constant currency revenue growth, which is revenue growth adjusted for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Constant currency revenue growth is calculated by translating the revenue of each fiscal year in the billing currency to U.S. dollars using the comparable prior year’s currency conversion rate in comparison to prior year’s revenue. Generally, when the U.S. dollar either strengthens or weakens against other currencies, revenue growth at constant currency rates or adjusting for currency will be higher or lower than revenue growth reported at actual exchange rates.
- Non-GAAP operating income, which is operating income, adjusted to exclude acquisition-related and integration expenses, including related restructuring costs, step-up depreciation, amortization of intangible assets, and share-based compensation.
- Non-GAAP operating margin, which is non-GAAP operating income, as defined above, divided by revenue.
- Adjusted earnings before interest, taxes, depreciation, and amortization, or adjusted EBITDA, which is non-GAAP operating income, as defined above, plus depreciation (exclusive of step-up depreciation).
- Adjusted EBITDA margin, which is adjusted EBITDA, as defined above, divided by revenue.
- Non-GAAP net income, which is net income excluding the tax-effected impact of acquisition-related and integration expenses, including related restructuring costs, step-up depreciation, amortization of intangible assets, share-based compensation, certain debt costs, imputed interest related to the sellers’ note, certain legal settlement costs, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP net income also excludes the income tax effect of certain tax law changes.
- Free cash flow, which is cash flows from operating activities less capital expenditures, and adjusted free cash flow, which is free cash flow excluding the effect of changes in the outstanding factoring balance. We believe that free cash flow is a meaningful measure of cash flows since capital expenditures are a necessary component of ongoing operations. We believe that adjusted free cash flow is a meaningful measure of cash flows because it removes the effect of factoring which changes the timing of the receipt of cash for certain receivables. However, free cash flow and adjusted free cash flow have limitations because they do not represent the residual cash flow available for discretionary expenditures. For example, free cash flow and adjusted free cash flow do not incorporate payments for business acquisitions.
- Non-GAAP diluted EPS, which is diluted EPS excluding the per share, tax-effected impact of acquisition-related and integration expenses, including related restructuring costs, step-up depreciation, amortization of intangible assets, share-based compensation, certain debt costs, imputed interest related to the sellers’ note, certain legal settlement costs, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP EPS also excludes the per share income tax effect of certain tax law changes. Non-GAAP EPS excludes net income attributable to participating securities and the related per share, tax-effected impact of adjustments to net income described above reflect only those amounts that are attributable to common shareholders.
We believe that providing this additional information is useful to the reader to better assess and understand our base operating performance, especially when comparing results with previous periods and for planning and forecasting in future periods, primarily because management typically monitors the business adjusted for these items in addition to GAAP results. Management also uses these non-GAAP measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. These non-GAAP financial measures exclude amortization of intangible assets. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to the services performed for our clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of our acquisition activity. Accordingly, we believe excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of our business nor reflect our underlying business performance, enhances our and our investors’ ability to compare our past financial performance with its current performance and to analyze underlying business performance and trends. These non-GAAP financial measures also exclude share-based compensation expense. Given the subjective assumptions and the variety of award types that companies can use when calculating share-based compensation expense, management believes this additional information allows investors to make additional comparisons between our operating results and those of our peers. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.
Safe Harbor Statement
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding the Company’s expected future financial condition, growth and profitability, results of operations, including revenue and operating income, cash flows, and effective tax rate, capital expenditures and anticipated investment costs, the future growth and success of the Company’s capabilities and products portfolio, the potential benefits associated with use of the Company’s generative artificial intelligence and other products, including productivity and engagement gains, share repurchase and dividend activity, capital allocation, debt repayment and obligations, business strategy, product launches, foreign currency exchange rate fluctuations, and statements that include words such as believe, expect, intend, plan, may, will, anticipate, provide, could, should, target, estimate, outlook, and other similar expressions. These forward-looking statements are inherently uncertain and involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things: risks related to general economic and geopolitical conditions and their effects on our clients’ businesses and demand for our services, including consumer demand, interest rates, inflation, international tariffs and global trade policies, supply chains, the conflicts in Ukraine and the Middle East, and tensions between India and Pakistan; cyberattacks on the Company’s or its clients’ networks and information technology systems; uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of generative artificial intelligence; the failure of the Company’s staff and contractors to adhere to the Company’s and its clients’ controls and processes; the inability to protect personal and proprietary information; the effects of communicable diseases or other public health crises, natural disasters and adverse weather conditions; geopolitical, economic and climate- or weather-related risks in regions with a significant concentration of the Company’s operations; the ability to successfully execute on the Company’s strategy; the timing and success of product launches; competitive conditions in the Company’s industry and consolidation of its competitors; variability in demand by the Company’s clients or the early termination of the Company’s client contracts; the level of business activity of the Company’s clients and the market acceptance and performance of their products and services; the demand for end-to-end solutions and technology; damage to the Company’s reputation through the actions or inactions of third parties; changes in law, regulations, or regulatory guidance, or changes in their interpretation or enforcement, including changes in law and policy that restrict travel between countries in which we have operations; the operability of the Company’s communication services and information technology systems and networks; the loss of key personnel or the inability to attract and retain staff across all geographies with the skills and expertise needed for the Company’s business; increases in the cost of labor; the inability to successfully identify, complete, and integrate strategic acquisitions or investments or realize anticipated benefits within the expected timeframe, including with respect to the Company’s combination with Webhelp; higher than expected tax liabilities; currency exchange rate fluctuations; investigative or legal actions; and other factors contained in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2024 filed with the Securities and Exchange Commission (“SEC”) and subsequent documents filed with or furnished to the SEC. The Company does not undertake a duty to update forward-looking statements, which speak only as of the date on which they are made.
Copyright 2025 Concentrix Corporation. All rights reserved. Concentrix, Webhelp, the Concentrix logo, and all other Concentrix company, product, and services word and design marks and slogans are trademarks or registered trademarks of Concentrix Corporation and its subsidiaries. Other names and marks are the property of their respective owners.
From Fortune ©2025 Fortune Media IP Limited. All rights reserved. Used under license. Fortune and Fortune 500 are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse the products or services of Concentrix.
Investor Contact:
Sara Buda
Investor Relations
Concentrix Corporation
sara.buda@concentrix.com
(617) 331-0955
| CONCENTRIX CORPORATION CONSOLIDATED BALANCE SHEETS (currency and share amounts in thousands, except par value) | |||||||
| May 31, 2025 | November 30, 2024 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 342,759 | $ | 240,571 | |||
| Accounts receivable, net | 2,061,412 | 1,926,737 | |||||
| Other current assets | 766,498 | 675,116 | |||||
| Total current assets | 3,170,669 | 2,842,424 | |||||
| Property and equipment, net | 711,463 | 714,517 | |||||
| Goodwill | 5,131,900 | 4,986,967 | |||||
| Intangible assets, net | 2,156,035 | 2,286,940 | |||||
| Deferred tax assets | 247,536 | 218,396 | |||||
| Other assets | 978,457 | 942,194 | |||||
| Total assets | $ | 12,396,060 | $ | 11,991,438 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 209,472 | $ | 209,812 | |||
| Current portion of long-term debt | 28,331 | 2,522 | |||||
| Accrued compensation and benefits | 655,511 | 706,619 | |||||
| Other accrued liabilities | 997,974 | 977,314 | |||||
| Income taxes payable | 82,077 | 99,546 | |||||
| Total current liabilities | 1,973,365 | 1,995,813 | |||||
| Long-term debt, net | 4,862,425 | 4,733,056 | |||||
| Other long-term liabilities | 970,587 | 910,271 | |||||
| Deferred tax liabilities | 310,983 | 312,574 | |||||
| Total liabilities | 8,117,360 | 7,951,714 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 7 | 7 | |||||
| Additional paid-in capital | 3,738,360 | 3,683,608 | |||||
| Treasury stock, 6,124 and 4,611 shares as of May 31, 2025 and November 30, 2024, respectively | (496,194 | ) | (421,449 | ) | |||
| Retained earnings | 1,259,559 | 1,191,871 | |||||
| Accumulated other comprehensive loss | (223,032 | ) | (414,313 | ) | |||
| Total stockholders’ equity | 4,278,700 | 4,039,724 | |||||
| Total liabilities and stockholders’ equity | $ | 12,396,060 | $ | 11,991,438 | |||
| CONCENTRIX CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (currency and share amounts in thousands, except per share amounts) (unaudited) | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| May 31, 2025 | May 31, 2024 | % Change | May 31, 2025 | May 31, 2024 | % Change | ||||||||||||||||
| Revenue | |||||||||||||||||||||
| Technology and consumer electronics | $ | 662,719 | $ | 658,268 | 1 | % | $ | 1,320,411 | $ | 1,323,370 | — | % | |||||||||
| Retail, travel and e-commerce | 583,782 | 568,081 | 3 | % | 1,167,680 | 1,151,793 | 1 | % | |||||||||||||
| Communications and media | 392,963 | 381,253 | 3 | % | 763,963 | 761,418 | — | % | |||||||||||||
| Banking, financial services and insurance | 384,015 | 377,723 | 2 | % | 749,208 | 743,145 | 1 | % | |||||||||||||
| Healthcare | 176,386 | 176,673 | — | % | 366,191 | 367,762 | — | % | |||||||||||||
| Other | 217,506 | 218,718 | (1 | )% | 422,140 | 435,976 | (3 | )% | |||||||||||||
| Total revenue | $ | 2,417,371 | $ | 2,380,716 | 2 | % | $ | 4,789,593 | $ | 4,783,464 | — | % | |||||||||
| Cost of revenue | 1,569,223 | 1,523,147 | 3 | % | 3,085,546 | 3,069,366 | 1 | % | |||||||||||||
| Gross profit | 848,148 | 857,569 | (1 | )% | 1,704,047 | 1,714,098 | (1 | )% | |||||||||||||
| Selling, general and administrative expenses | 699,803 | 707,399 | (1 | )% | 1,386,835 | 1,415,489 | (2 | )% | |||||||||||||
| Operating income | 148,345 | 150,170 | (1 | )% | 317,212 | 298,609 | 6 | % | |||||||||||||
| Interest expense and finance charges, net | 75,406 | 82,457 | (9 | )% | 148,400 | 164,896 | (10 | )% | |||||||||||||
| Other expense (income), net | 21,218 | (19,415 | ) | (209 | )% | 16,299 | (26,239 | ) | (162 | )% | |||||||||||
| Income before income taxes | 51,721 | 87,128 | (41 | )% | 152,513 | 159,952 | (5 | )% | |||||||||||||
| Provision for income taxes | 9,628 | 20,294 | (53 | )% | 40,163 | 41,016 | (2 | )% | |||||||||||||
| Net income | $ | 42,093 | $ | 66,834 | (37 | )% | $ | 112,350 | $ | 118,936 | (6 | )% | |||||||||
| Earnings per common share: | |||||||||||||||||||||
| Basic | $ | 0.63 | $ | 0.98 | $ | 1.68 | $ | 1.75 | |||||||||||||
| Diluted | $ | 0.63 | $ | 0.98 | $ | 1.68 | $ | 1.74 | |||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||||
| Basic | 63,355 | 65,270 | 63,693 | 65,466 | |||||||||||||||||
| Diluted | 63,406 | 65,332 | 63,733 | 65,570 | |||||||||||||||||
| CONCENTRIX CORPORATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES (currency and share amounts in thousands, except per share amounts) (unaudited) | |||||||
| Three Months Ended | Six Months Ended | ||||||
| May 31, 2025 | May 31, 2025 | ||||||
| Revenue | $ | 2,417,371 | $ | 4,789,593 | |||
| Revenue growth, as reported under U.S. GAAP | 1.5 | % | 0.1 | % | |||
| Foreign exchange impact | — | % | 1.3 | % | |||
| Constant currency revenue growth | 1.5 | % | 1.4 | % | |||
| Three Months Ended | Six Months Ended | ||||||||||||||
| May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | ||||||||||||
| Operating income | $ | 148,345 | $ | 150,170 | $ | 317,212 | $ | 298,609 | |||||||
| Acquisition-related and integration expenses (1) | 16,808 | 30,906 | 34,832 | 61,079 | |||||||||||
| Step-up depreciation | 2,536 | 2,482 | 4,912 | 4,983 | |||||||||||
| Amortization of intangibles | 109,158 | 115,969 | 214,777 | 232,271 | |||||||||||
| Share-based compensation | 26,862 | 21,618 | 53,462 | 43,264 | |||||||||||
| Non-GAAP operating income | $ | 303,709 | $ | 321,145 | $ | 625,195 | $ | 640,206 | |||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | ||||||||||||
| Net income | $ | 42,093 | $ | 66,834 | $ | 112,350 | $ | 118,936 | |||||||
| Interest expense and finance charges, net | 75,406 | 82,457 | 148,400 | 164,896 | |||||||||||
| Provision for income taxes | 9,628 | 20,294 | 40,163 | 41,016 | |||||||||||
| Other expense (income), net | 21,218 | (19,415 | ) | 16,299 | (26,239 | ) | |||||||||
| Acquisition-related and integration expenses (1) | 16,808 | 30,906 | 34,832 | 61,079 | |||||||||||
| Step-up depreciation | 2,536 | 2,482 | 4,912 | 4,983 | |||||||||||
| Amortization of intangibles | 109,158 | 115,969 | 214,777 | 232,271 | |||||||||||
| Share-based compensation | 26,862 | 21,618 | 53,462 | 43,264 | |||||||||||
| Depreciation (exclusive of step-up depreciation) | 53,615 | 58,492 | 106,336 | 123,749 | |||||||||||
| Adjusted EBITDA | $ | 357,324 | $ | 379,637 | $ | 731,531 | $ | 763,955 | |||||||
| Three Months Ended | Six Months Ended | ||||||||||
| May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | ||||||||
| Operating margin | 6.1 | % | 6.3 | % | 6.6 | % | 6.2 | % | |||
| Non-GAAP operating margin | 12.6 | % | 13.5 | % | 13.1 | % | 13.4 | % | |||
| Adjusted EBITDA margin | 14.8 | % | 15.9 | % | 15.3 | % | 16.0 | % | |||
| Three Months Ended | Six Months Ended | ||||||||||||||
| May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | ||||||||||||
| Net income | $ | 42,093 | $ | 66,834 | $ | 112,350 | $ | 118,936 | |||||||
| Acquisition-related and integration expenses (1) | 16,808 | 30,906 | 34,832 | 61,079 | |||||||||||
| Step-up depreciation | 2,536 | 2,482 | 4,912 | 4,983 | |||||||||||
| Debt costs (2) | 1,102 | — | 1,102 | — | |||||||||||
| Imputed interest related to sellers’ note included in interest expense and finance charges, net | 4,503 | 4,179 | 8,689 | 8,357 | |||||||||||
| Legal settlement costs (3) | 2,000 | — | 2,000 | — | |||||||||||
| Change in acquisition contingent consideration included in other expense (income), net | 8,691 | (6,689 | ) | 6,667 | (21,586 | ) | |||||||||
| Foreign currency losses (gains), net (4) | 10,789 | (14,409 | ) | 6,610 | (7,799 | ) | |||||||||
| Amortization of intangibles | 109,158 | 115,969 | 214,777 | 232,271 | |||||||||||
| Share-based compensation | 26,862 | 21,618 | 53,462 | 43,264 | |||||||||||
| Income taxes related to the above (5) | (44,931 | ) | (37,791 | ) | (81,923 | ) | (78,695 | ) | |||||||
| Income tax effect of change in tax law | — | — | 4,269 | — | |||||||||||
| Non-GAAP net income | $ | 179,611 | $ | 183,099 | $ | 367,747 | $ | 360,810 | |||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | ||||||||||||
| Net income | $ | 42,093 | $ | 66,834 | $ | 112,350 | $ | 118,936 | |||||||
| Less: net income allocated to participating securities | (2,035 | ) | (2,571 | ) | (5,448 | ) | (4,568 | ) | |||||||
| Net income attributable to common stockholders | 40,058 | 64,263 | 106,902 | 114,368 | |||||||||||
| Acquisition-related and integration expenses allocated to common stockholders (1) | 15,995 | 29,717 | 33,143 | 58,733 | |||||||||||
| Step-up depreciation allocated to common stockholders | 2,413 | 2,387 | 4,674 | 4,792 | |||||||||||
| Debt costs allocated to common stockholders (2) | 1,049 | — | 1,049 | — | |||||||||||
| Imputed interest related to sellers' note included in interest expense and finance charges, net allocated to common stockholders | 4,285 | 4,018 | 8,268 | 8,036 | |||||||||||
| Legal settlement costs allocated to common stockholders (3) | 1,903 | — | 1,903 | — | |||||||||||
| Change in acquisition contingent consideration included in other expense (income), net allocated to common stockholders | 8,271 | (6,432 | ) | 6,344 | (20,757 | ) | |||||||||
| Foreign currency losses (gains), net allocated to common stockholders (4) | 10,267 | (13,855 | ) | 6,289 | (7,499 | ) | |||||||||
| Amortization of intangibles allocated to common stockholders | 103,881 | 111,508 | 204,362 | 223,350 | |||||||||||
| Share-based compensation allocated to common stockholders | 25,563 | 20,786 | 50,870 | 41,602 | |||||||||||
| Income taxes related to the above allocated to common stockholders (5) | (42,759 | ) | (36,337 | ) | (77,950 | ) | (75,673 | ) | |||||||
| Income tax effect of change in tax law allocated to common stockholders | — | — | 4,062 | — | |||||||||||
| Non-GAAP net income attributable to common stockholders | $ | 170,926 | $ | 176,055 | $ | 349,916 | $ | 346,952 | |||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | ||||||||||||
| Diluted earnings per common share (“EPS”) (6) | $ | 0.63 | $ | 0.98 | $ | 1.68 | $ | 1.74 | |||||||
| Acquisition-related and integration expenses (1) | 0.25 | 0.45 | 0.52 | 0.90 | |||||||||||
| Step-up depreciation | 0.04 | 0.04 | 0.07 | 0.07 | |||||||||||
| Debt costs (2) | 0.02 | — | 0.02 | — | |||||||||||
| Imputed interest related to sellers' note included in interest expense and finance charges, net | 0.07 | 0.06 | 0.13 | 0.12 | |||||||||||
| Legal settlement costs (3) | 0.03 | — | 0.03 | — | |||||||||||
| Change in acquisition contingent consideration included in other expense (income), net | 0.13 | (0.10 | ) | 0.10 | (0.32 | ) | |||||||||
| Foreign currency losses (gains), net (4) | 0.16 | (0.21 | ) | 0.10 | (0.11 | ) | |||||||||
| Amortization of intangibles | 1.64 | 1.71 | 3.21 | 3.41 | |||||||||||
| Share-based compensation | 0.40 | 0.32 | 0.80 | 0.63 | |||||||||||
| Income taxes related to the above (5) | (0.67 | ) | (0.56 | ) | (1.23 | ) | (1.15 | ) | |||||||
| Income tax effect of change in tax law | — | — | 0.06 | — | |||||||||||
| Non-GAAP diluted EPS | $ | 2.70 | $ | 2.69 | $ | 5.49 | $ | 5.29 | |||||||
| Weighted-average number of common shares - diluted | 63,406 | 65,332 | 63,733 | 65,570 | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | ||||||||||||
| Net cash provided by operating activities | $ | 236,536 | $ | 238,339 | $ | 237,944 | $ | 191,469 | |||||||
| Purchases of property and equipment | (55,792 | ) | (60,086 | ) | (106,410 | ) | (116,145 | ) | |||||||
| Free cash flow | 180,744 | 178,253 | 131,534 | 75,324 | |||||||||||
| Change in outstanding factoring balances | 19,542 | 23,634 | 28,936 | 45,258 | |||||||||||
| Adjusted free cash flow | $ | 200,286 | $ | 201,887 | $ | 160,470 | $ | 120,582 | |||||||
| Forecast | |||||||||||||||
| Three Months Ending August 31, 2025 | Fiscal Year Ending November 30, 2025 | ||||||||||||||
| Low | High | Low | High | ||||||||||||
| Revenue | $ | 2,445,000 | $ | 2,470,000 | $ | 9,720,000 | $ | 9,815,000 | |||||||
| Revenue growth, as reported under U.S. GAAP | 2.4 | % | 3.4 | % | 1.0 | % | 2.0 | % | |||||||
| Foreign exchange impact | (1.4 | )% | (1.4 | )% | — | % | — | % | |||||||
| Constant currency revenue growth | 1.0 | % | 2.0 | % | 1.0 | % | 2.0 | % | |||||||
| Forecast | |||||||||||||||
| Three Months Ending August 31, 2025 | Fiscal Year Ending November 30, 2025 | ||||||||||||||
| Low | High | Low | High | ||||||||||||
| Operating income | $ | 162,200 | $ | 172,200 | $ | 674,500 | $ | 694,500 | |||||||
| Amortization of intangibles | 110,000 | 110,000 | 430,500 | 430,500 | |||||||||||
| Share-based compensation | 27,800 | 27,800 | 119,000 | 119,000 | |||||||||||
| Acquisition-related and integration expenses | 15,500 | 15,500 | 66,000 | 66,000 | |||||||||||
| Step-up depreciation | 2,500 | 2,500 | 10,000 | 10,000 | |||||||||||
| Non-GAAP operating income | $ | 318,000 | $ | 328,000 | $ | 1,300,000 | $ | 1,320,000 | |||||||
(1) For the three and six months ended May 31, 2025 and 2024, acquisition-related and integration expenses, including restructuring costs, primarily included integration costs associated with the Company’s combination with Webhelp. These costs primarily include severance and employee-related costs, costs associated with facilities consolidation, including lease terminations to integrate the businesses, and information technology system consolidation costs.
(2) For the three and six months ended May 31, 2025, debt costs included debt extinguishment costs associated with our restated credit agreement and our voluntary prepayment of a portion of our outstanding term loans.
(3) For the three and six months ended May 31, 2025, legal settlement costs consist of amounts incurred to settle certain litigation arising outside of the ordinary course of business.
(4) Foreign currency losses (gains), net are included in other expense (income), net and primarily consist of gains and losses recognized on the revaluation and settlement of foreign currency transactions and realized and unrealized gains and losses on derivative contracts that do not qualify for hedge accounting.
(5) The tax effect of taxable and deductible non-GAAP adjustments was calculated using the tax-deductible portion of the expenses and applying the entity-specific, statutory tax rates applicable to each item during the respective periods presented.
(6) Diluted EPS is calculated using the two-class method. The two-class method is an earnings allocation proportional to the respective ownership among holders of common stock and participating securities. Restricted stock awards and certain restricted stock units granted to employees are considered participating securities. For the purposes of calculating diluted EPS, net income attributable to participating securities was approximately
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