PART I—FINANCIAL INFORMATION This section provides unaudited consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific dates Consolidated Balance Sheet Highlights (in thousands) | Metric | Nov 30, 2024 | Aug 31, 2025 | Change | % Change | | :----------------------------- | :----------- | :----------- | :----- | :------- | | Total Assets | $11,991,438 | $12,410,099 | $418,661 | 3.49% | | Total Liabilities | $7,951,714 | $8,065,970 | $114,256 | 1.44% | | Total Stockholders' Equity | $4,039,724 | $4,344,129 | $304,405 | 7.54% | | Cash and cash equivalents | $240,571 | $350,259 | $109,688 | 45.59% | | Accounts receivable, net | $1,926,737 | $2,051,920 | $125,183 | 6.49% | | Goodwill | $4,986,967 | $5,191,565 | $204,598 | 4.10% | | Intangible assets, net | $2,286,940 | $2,079,278 | $(207,662) | -9.08% | | Long-term debt, net | $4,733,056 | $4,790,293 | $57,237 | 1.21% | | Accumulated other comprehensive loss | $(414,313) | $(209,117) | $205,196 | -49.52% | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, expenses, and net income over specific periods Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | 3 Months Ended Aug 31, 2025 | 3 Months Ended Aug 31, 2024 | % Change (3M) | 9 Months Ended Aug 31, 2025 | 9 Months Ended Aug 31, 2024 | % Change (9M) | | :-------------------- | :-------------------------- | :-------------------------- | :------------ | :-------------------------- | :-------------------------- | :------------ | | Revenue | $2,483,253 | $2,387,412 | 4.02% | $7,272,846 | $7,170,876 | 1.42% | | Gross profit | $855,007 | $864,192 | -1.06% | $2,559,054 | $2,578,290 | -0.75% | | Operating income | $146,984 | $153,242 | -4.08% | $464,196 | $451,851 | 2.73% | | Interest expense and finance charges, net | $72,014 | $80,815 | -10.90% | $220,414 | $245,711 | -10.30% | | Other expense (income), net | $(36,474) | $46,011 | -179.27% | $(20,175) | $19,772 | -202.04% |\ | Income before income taxes | $111,444 | $26,416 | 321.88% | $263,957 | $186,368 | 41.63% | | Net income | $88,110 | $16,631 | 429.80% | $200,460 | $135,567 | 47.88% | | Basic EPS | $1.34 | $0.25 | 436.00% | $3.01 | $2.00 | 50.50% | | Diluted EPS | $1.34 | $0.25 | 436.00% | $3.01 | $2.00 | 50.50% | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents net income and other comprehensive income components, reflecting total changes in equity from non-owner sources Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric | 3 Months Ended Aug 31, 2025 | 3 Months Ended Aug 31, 2024 | % Change (3M) | 9 Months Ended Aug 31, 2025 | 9 Months Ended Aug 31, 2024 | % Change (9M) | | :-------------------- | :-------------------------- | :-------------------------- | :------------ | :-------------------------- | :-------------------------- | :------------ | | Net income | $88,110 | $16,631 | 429.80% | $200,460 | $135,567 | 47.88% | | Other comprehensive income (loss) | $13,915 | $102,205 | -86.38% | $205,196 | $(16,163) | -1370.90% | | Comprehensive income | $102,025 | $118,836 | -14.14% | $405,656 | $119,404 | 239.73% | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) This statement outlines changes in equity, including net income, other comprehensive income, share-based compensation, repurchases, and dividends Changes in Stockholders' Equity (in thousands) | Metric | Nov 30, 2024 | Aug 31, 2025 | Change | | :-------------------- | :----------- | :----------- | :----- | | Total stockholders' equity | $4,039,724 | $4,344,129 | $304,405 | | Net income (9 months) | $200,460 | $135,567 | $64,893 | | Other comprehensive income (9 months) | $205,196 | $(16,163) | $221,359 |\ | Share-based compensation activity (9 months) | $81,904 | $71,214 | $10,690 | | Repurchase of common stock (9 months) | $(112,774) | $(101,615) | $(11,159) |\ | Dividends (9 months) | $(66,638) | $(61,173) | $(5,465) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement categorizes cash flows into operating, investing, and financing activities, showing changes in cash and equivalents Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | 9 Months Ended Aug 31, 2025 | 9 Months Ended Aug 31, 2024 | % Change | | :------------------------------------------ | :-------------------------- | :-------------------------- | :------- | | Net cash provided by operating activities | $462,747 | $383,091 | 20.79% | | Net cash used in investing activities | $(172,127) | $(183,395) | -6.25% | | Net cash used in financing activities | $(211,444) | $(268,074) | -21.12% | | Net increase (decrease) in cash, cash equivalents and restricted cash | $108,882 | $(74,725) | -245.78% |\ | Cash, cash equivalents and restricted cash at end of period | $538,486 | $441,762 | 21.89% | [Notes to the Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Detailed notes explain significant accounting policies, balance sheet components, derivative instruments, and other financial details [NOTE 1—BACKGROUND AND BASIS OF PRESENTATION](index=12&type=section&id=NOTE%201%E2%80%94BACKGROUND%20AND%20BASIS%20OF%20PRESENTATION) Concentrix is a global technology and services leader providing end-to-end solutions, including CX optimization, technology innovation, automation, analytics, and business transformation across five primary industry verticals - Concentrix is a global technology and services leader offering end-to-end solutions like CX process optimization, technology innovation, automation, analytics, and business transformation[27](index=27&type=chunk) - The company serves clients in **five** primary industry verticals: technology and consumer electronics; retail, travel and e-commerce; communications and media; banking, financial services and insurance; and healthcare[27](index=27&type=chunk) - The Webhelp Combination acquisition was completed on **September 25, 2023**, funded by senior notes, term loan borrowings, a promissory note, common stock issuance, and cash[29](index=29&type=chunk) [NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%202%E2%80%94SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The company's significant accounting policies are detailed in its annual 10-K. No client accounted for more than 10% of revenue or accounts receivable. The company uses non-recourse factoring programs for accounts receivable. Several new FASB ASUs are effective in future fiscal years, with the company currently evaluating their impact - No single client accounted for more than **10%** of consolidated revenue for the three and nine months ended August 31, 2025 and 2024, nor more than **10%** of total accounts receivable as of August 31, 2025 and November 30, 2024[31](index=31&type=chunk)[32](index=32&type=chunk) - The company sold approximately **$338 million** and **$955 million** of accounts receivable under factoring programs for the three and nine months ended August 31, 2025, respectively[33](index=33&type=chunk) - New FASB ASUs (**2023-07, 2023-09, 2024-03, 2025-06**) related to segment disclosures, income tax disclosures, expense disaggregation, and internal-use software costs are effective in future fiscal years (**2025-2029**), and the company is evaluating their impact[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [NOTE 3—SHARE-BASED COMPENSATION](index=13&type=section&id=NOTE%203%E2%80%94SHARE-BASED%20COMPENSATION) Concentrix recognizes share-based compensation for awards to employees and directors. In January 2025, the company granted restricted stock units and performance-based restricted stock units with varying vesting conditions and fair values. Share-based compensation expense increased for both the three and nine months ended August 31, 2025 - In **January 2025**, the company granted **176** restricted stock units (fair value **$52.54**/share) and **489** performance-based restricted stock units (fair values **$48.94**/share and **$41.28**/share)[40](index=40&type=chunk)[41](index=41&type=chunk) Share-Based Compensation Expense (in thousands) | Period | August 31, 2025 | August 31, 2024 | % Change | | :----- | :-------------- | :-------------- | :------- | | 3 Months | $25,042 | $22,663 | 10.49% | | 9 Months | $78,504 | $65,927 | 19.08% | [NOTE 4—BALANCE SHEET COMPONENTS](index=14&type=section&id=NOTE%204%E2%80%94BALANCE%20SHEET%20COMPONENTS) This note details the composition and changes in cash, accounts receivable, property and equipment, goodwill, intangible assets, and accumulated other comprehensive income (loss). Key changes include an increase in cash and cash equivalents, a rise in net accounts receivable, an increase in goodwill primarily due to foreign exchange translation, and a decrease in net intangible assets due to amortization Cash, Cash Equivalents and Restricted Cash (in thousands) | Metric | Aug 31, 2025 | Nov 30, 2024 | Change | % Change | | :-------------------- | :----------- | :----------- | :----- | :------- | | Cash and cash equivalents | $350,259 | $240,571 | $109,688 | 45.59% | | Restricted cash | $188,227 | $189,033 | $(806) | -0.43% | | Total | $538,486 | $429,604 | $108,882 | 25.35% | Accounts Receivable, Net (in thousands) | Metric | Aug 31, 2025 | Nov 30, 2024 | Change | % Change | | :-------------------- | :----------- | :----------- | :----- | :------- | | Billed accounts receivable | $1,142,873 | $1,080,778 | $62,095 | 5.75% | | Unbilled accounts receivable | $928,433 | $860,266 | $68,167 | 7.92% | | Less: Allowance for doubtful trade receivables | $(19,386) | $(14,307) | $(5,079) | 35.50% | | Accounts receivable, net | $2,051,920 | $1,926,737 | $125,183 | 6.49% | - Goodwill increased by **$204.598 million** for the nine months ended August 31, 2025, primarily due to foreign exchange translation (**$202.245 million**)[47](index=47&type=chunk) - Intangible assets, net, decreased from **$2,286.940 million** (Nov 30, 2024) to **$2,079.278 million** (Aug 31, 2025), mainly due to amortization. Estimated future amortization for the remaining three months of fiscal year 2025 is **$107.898 million**, and **$395.769 million** for fiscal year 2026[48](index=48&type=chunk)[49](index=49&type=chunk) - Accumulated other comprehensive income (loss) improved from a loss of **$(414.31) million** at November 30, 2024, to a loss of **$(209.12) million** at August 31, 2025, primarily driven by positive foreign currency translation adjustments and unrealized gains on hedges[50](index=50&type=chunk) [NOTE 5—DERIVATIVE INSTRUMENTS](index=17&type=section&id=NOTE%205%E2%80%94DERIVATIVE%20INSTRUMENTS) Concentrix uses derivative instruments, primarily foreign exchange forward contracts and cross-currency interest rate swaps, to manage foreign currency and interest rate risks. These are designated as cash flow hedges, fair value hedges, or non-designated derivatives. The fair value of these instruments is recognized on the balance sheet, and their gains/losses impact AOCI or the consolidated statements of operations - The company uses foreign exchange forward contracts to hedge forecasted revenue/costs and short-term foreign exchange risk, and cross-currency interest rate swaps to convert U.S. dollar senior notes into synthetic fixed euro-based debt[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) Fair Values of Derivative Instruments (in thousands) as of August 31, 2025 | Derivative Type | Notional Value | Balance Sheet Impact | | :------------------------------------------ | :------------- | :------------------- | | Foreign exchange forward contracts (not designated) | $234,180 | Assets: $5,135 | | Cross-currency interest rate swaps (fair value hedges) | $471,604 | Liabilities: $27,999 | | Foreign exchange forward contracts (cash flow hedges) | $1,055,219 | Assets: $6,912, Liabilities: $10,736 | Effect of Derivative Instruments on OCI and Operations (in thousands) | Metric | 9 Months Ended Aug 31, 2025 | | :------------------------------------------ | :-------------------------- | | Gains (losses) recognized in OCI: | | | Foreign exchange forward contracts | $12,892 | | Cross-currency interest rate swaps | $4,758 | | Gains (losses) reclassified from AOCI into income | $(4,862) | | Gain recognized from non-designated foreign exchange forward contracts, net | $5,858 | [NOTE 6—FAIR VALUE MEASUREMENTS](index=21&type=section&id=NOTE%206%E2%80%94FAIR%20VALUE%20MEASUREMENTS) The company classifies fair value measurements into Level 1, 2, or 3 based on input observability. Cash and cash equivalents, restricted cash, and certain debt are valued at Level 1 or 2. Derivative instruments and acquisition contingent consideration are primarily Level 2, using observable inputs like market prices, interest rates, and currency rates - Cash and cash equivalents (**$350,259 thousand**) and restricted cash (**$188,227 thousand**) are classified as **Level 1** fair value measurements[65](index=65&type=chunk) - Forward foreign currency exchange contracts, cross-currency interest rate swaps, acquisition contingent consideration, and long-term debt (senior notes) are classified as **Level 2** fair value measurements[65](index=65&type=chunk) - No material transfers between fair value measurement category levels occurred during the three and nine months ended August 31, 2025 and 2024[68](index=68&type=chunk) [NOTE 7—BORROWINGS](index=23&type=section&id=NOTE%207%E2%80%94BORROWINGS) Concentrix's borrowings include Senior Notes, a Restated Credit Agreement (term loans and revolving credit facility), and a Securitization Facility. The company amended its credit agreement and securitization facility in 2025, increasing borrowing capacity and extending maturity dates. The Sellers' Note was repaid in September 2025 using Delayed Draw Term Loans and cash. The company was in compliance with all debt covenants as of August 31, 2025 Borrowings as of August 31, 2025 (in thousands) | Debt Type | Amount | | :------------------------------------------ | :----------- | | Current portion of long-term debt | $37,500 | | 6.650% Senior Notes due 2026 | $800,000 | | 6.600% Senior Notes due 2028 | $800,000 | | 6.850% Senior Notes due 2033 | $550,000 | | Credit Facility - term loans component | $1,312,500 | | Securitization Facility | $525,000 | | Sellers' Note | $818,570 | | Long-term debt, net | $4,790,293 | - On **April 11, 2025**, Concentrix entered into a Restated Credit Agreement providing for a **$750 million** New Term Loan Facility, **$750 million** Delayed Draw Term Loans (comprising **$250 million** 3-Year DD and **$500 million** 5-Year DD), and a **$1.1 billion** Revolving Credit Facility[74](index=74&type=chunk)[176](index=176&type=chunk) - The Sellers' Note, with an aggregate principal amount of **€700 million**, was fully repaid on **September 25, 2025**, using proceeds from the Delayed Draw Term Loans and cash on hand[74](index=74&type=chunk)[89](index=89&type=chunk)[177](index=177&type=chunk)[189](index=189&type=chunk) - The Securitization Facility was amended on **January 14, 2025**, increasing the commitment to **$700 million** and extending the termination date to **January 14, 2027**[83](index=83&type=chunk)[185](index=185&type=chunk) - Concentrix was in compliance with all debt covenants for its borrowing arrangements as of **August 31, 2025**, and **November 30, 2024**[90](index=90&type=chunk)[190](index=190&type=chunk) [NOTE 8—EARNINGS PER SHARE](index=27&type=section&id=NOTE%208%E2%80%94EARNINGS%20PER%20SHARE) Basic and diluted EPS are computed using the two-class method. Both basic and diluted EPS significantly increased for the three and nine months ended August 31, 2025, compared to the prior year, reflecting higher net income Earnings Per Common Share | Metric | 3 Months Ended Aug 31, 2025 | 3 Months Ended Aug 31, 2024 | % Change (3M) | 9 Months Ended Aug 31, 2025 | 9 Months Ended Aug 31, 2024 | % Change (9M) | | :----- | :-------------------------- | :-------------------------- | :------------ | :-------------------------- | :-------------------------- | :------------ | | Basic EPS | $1.34 | $0.25 | 436.00% | $3.01 | $2.00 | 50.50% | | Diluted EPS | $1.34 | $0.25 | 436.00% | $3.01 | $2.00 | 50.50% | - Weighted-average common shares outstanding (diluted) decreased from **64,749 thousand** to **62,702 thousand** for the three months, and from **65,311 thousand** to **63,379 thousand** for the nine months, contributing to EPS growth[92](index=92&type=chunk) [NOTE 9—REVENUE](index=28&type=section&id=NOTE%209%E2%80%94REVENUE) Revenue is disaggregated by primary industry verticals. For the three months ended August 31, 2025, all primary verticals showed revenue growth, with Banking, Financial Services and Insurance leading. For the nine months, most primary verticals grew, while Healthcare remained flat and "Other" decreased Revenue by Industry Vertical (in thousands) | Industry Vertical | 3 Months Ended Aug 31, 2025 | 3 Months Ended Aug 31, 2024 | % Change (3M) | 9 Months Ended Aug 31, 2025 | 9 Months Ended Aug 31, 2024 | % Change (9M) | | :---------------- | :-------------------------- | :-------------------------- | :------------ | :-------------------------- | :-------------------------- | :------------ | | Technology and consumer electronics | $670,573 | $664,829 | 0.9% | $1,990,984 | $1,988,199 | 0.1% | | Retail, travel and e-commerce | $622,822 | $593,736 | 4.9% | $1,790,502 | $1,745,529 | 2.6% | | Communications and media | $411,229 | $380,508 | 8.1% | $1,175,192 | $1,141,926 | 2.9% | | Banking, financial services and insurance | $384,449 | $352,471 | 9.1% | $1,133,657 | $1,095,616 | 3.5% | | Healthcare | $174,106 | $172,400 | 1.0% | $540,297 | $540,162 | 0.0% | | Other | $220,074 | $223,468 | -1.5% | $642,214 | $659,444 | -2.6% | | **Total Revenue** | **$2,483,253** | **$2,387,412** | **4.0%** | **$7,272,846** | **$7,170,876** | **1.4%** | [NOTE 10—PENSION AND EMPLOYEE BENEFITS PLANS](index=28&type=section&id=NOTE%2010%E2%80%94PENSION%20AND%20EMPLOYEE%20BENEFITS%20PLANS) Concentrix offers 401(k) plans in the US and government-mandated defined contribution plans internationally. The company also maintains defined benefit plans for eligible employees in certain countries, which were underfunded as of August 31, 2025 Company Contributions to Defined Contribution Plans (in thousands) | Period | August 31, 2025 | August 31, 2024 | % Change | | :----- | :-------------- | :-------------- | :------- | | 3 Months | $32,903 | $23,539 | 39.79% | | 9 Months | $95,131 | $75,171 | 26.55% | - Defined benefit plans were underfunded by **$81.97 million** at August 31, 2025, an increase from **$77.94 million** at November 30, 2024[98](index=98&type=chunk) [NOTE 11—INCOME TAXES](index=28&type=section&id=NOTE%2011%E2%80%94INCOME%20TAXES) Income tax expense increased for both the three and nine months ended August 31, 2025, due to higher income before taxes, despite a decrease in the effective tax rate. The effective tax rate was impacted by the geographic mix of income and discrete items. The liability for unrecognized tax benefits decreased slightly Provision for Income Taxes (in thousands) | Period | August 31, 2025 | August 31, 2024 | % Change | | :----- | :-------------- | :-------------- | :------- | | 3 Months | $23,334 | $9,785 | 138.48% | | 9 Months | $63,497 | $50,801 | 24.99% | Effective Tax Rate | Period | August 31, 2025 | August 31, 2024 | Change (pp) | | :----- | :-------------- | :-------------- | :---------- | | 3 Months | 20.9% | 37.0% | -16.1 | | 9 Months | 24.1% | 27.3% | -3.2 | - The liability for unrecognized tax benefits was **$110.36 million** at August 31, 2025, down from **$112.96 million** at November 30, 2024. The total amount of unrecognized tax benefits that would affect income tax expense if recognized was **$77.41 million** at August 31, 2025, an increase from **$60.51 million** at November 30, 2024[100](index=100&type=chunk) [NOTE 12— LEASES](index=29&type=section&id=NOTE%2012%E2%80%94%20LEASES) The company leases facilities and equipment under operating lease agreements. Total operating lease costs increased for both the three and nine months ended August 31, 2025. Operating lease ROU assets and liabilities also increased Total Operating Lease Cost (in thousands) | Period | August 31, 2025 | August 31, 2024 | % Change | | :----- | :-------------- | :-------------- | :------- | | 3 Months | $112,921 | $108,334 | 4.23% | | 9 Months | $328,674 | $314,331 | 4.56% | - Operating lease ROU assets increased to **$853.46 million** at August 31, 2025, from **$816.55 million** at November 30, 2024. Current operating lease liabilities increased to **$252.17 million**, and non-current operating lease liabilities increased to **$638.55 million**[104](index=104&type=chunk) - The weighted-average remaining lease term was **4.23 years** (down from **4.50 years**), and the weighted-average discount rate was **6.80%** (down from **6.91%**) as of August 31, 2025[105](index=105&type=chunk) [NOTE 13—COMMITMENTS AND CONTINGENCIES](index=30&type=section&id=NOTE%2013%E2%80%94COMMITMENTS%20AND%20CONTINGENCIES) The company is subject to various claims and legal proceedings in the ordinary course of business but does not believe these will have a material adverse effect on its financial results - The company evaluates claims and records related liabilities, acknowledging that ultimate liabilities could differ[106](index=106&type=chunk) - Management does not believe current commitments and contingencies will materially adversely affect results of operations, financial position, or cash flows[107](index=107&type=chunk) [NOTE 14—STOCKHOLDERS' EQUITY](index=30&type=section&id=NOTE%2014%E2%80%94STOCKHOLDERS%27%20EQUITY) Concentrix has an active share repurchase program, which was extended in January 2025 with an increased authorization. The company also consistently pays quarterly cash dividends, with the latest announced dividend increasing to $0.36 per share - The share repurchase program was authorized up to **$500 million** in **September 2021** and increased to **$600 million** in **January 2025**[108](index=108&type=chunk)[165](index=165&type=chunk) - For the nine months ended August 31, 2025, the company repurchased **2,247 thousand shares** for **$112.8 million**. Approximately **$495.4 million** remained available for repurchases at August 31, 2025[109](index=109&type=chunk)[165](index=165&type=chunk) - A cash dividend of **$0.36**/share was announced on **September 25, 2025**, payable on **November 4, 2025**, representing an increase from previous quarterly dividends of **$0.33275**/share[111](index=111&type=chunk)[168](index=168&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis covers financial condition, results of operations, liquidity, and capital resources [Overview and Basis of Presentation](index=32&type=section&id=Overview%20and%20Basis%20of%20Presentation) Concentrix is a global technology and services leader providing CX optimization, technology innovation, and business transformation across five key industry verticals. The business is impacted by client product market shifts, technology acceptance, and high staff turnover, which can increase costs and reduce efficiency - Concentrix provides end-to-end solutions including CX process optimization, technology innovation, design engineering, front- and back-office automation, analytics, and business transformation services[116](index=116&type=chunk) - The company's business is sensitive to shifts in client product/service markets, technology acceptance, and high staff turnover rates, which can affect costs and operating efficiencies[118](index=118&type=chunk) [Webhelp Combination](index=33&type=section&id=Webhelp%20Combination) The acquisition of Webhelp was completed on September 25, 2023, for approximately $3,774.8 million, net of cash and restricted cash acquired - The Webhelp Combination was completed on **September 25, 2023**[119](index=119&type=chunk) - Purchase consideration for Webhelp was approximately **$3,774.8 million**, net of cash and restricted cash acquired[119](index=119&type=chunk) [Revenue and Cost of Revenue](index=33&type=section&id=Revenue%20and%20Cost%20of%20Revenue) Revenue is primarily generated from technology and services, mostly recognized based on staffing hours or transactions. Cost of revenue is mainly personnel costs, influenced by client mix, delivery location, and program scalability. A significant portion of revenue is from non-U.S. operations, priced in U.S. dollars, making profitability susceptible to foreign currency fluctuations and local inflation - Approximately **98%** of revenue is recognized as services are performed, based on staffing hours or client customer transactions[121](index=121&type=chunk) - Cost of revenue is primarily personnel costs, impacted by client contract mix, delivery geography, program scalability, and transition/set-up costs[122](index=122&type=chunk) - For the nine months ended August 31, 2025, **89%** of consolidated revenue was from non-U.S. operations, and **54%** was priced in U.S. dollars, exposing the company to foreign currency fluctuations and inflation[123](index=123&type=chunk) [Margins](index=33&type=section&id=Margins) Gross margins fluctuate due to client contract mix, service types, delivery geography shifts, client volume trends, and program scaling costs. Operating margins are affected by gross margin changes and the ability to achieve scale efficiencies in selling, general, and administrative costs - Gross margins are influenced by client contract mix, service types, delivery geography, client volume, and program lead times/set-up costs[124](index=124&type=chunk) - Operating margins are affected by gross margin changes and scale efficiencies in SG&A costs[124](index=124&type=chunk) [Economic and Industry Trends](index=34&type=section&id=Economic%20and%20Industry%20Trends) The industry is competitive, leading to pricing and labor cost pressures. Concentrix operates globally in 75 countries, with significant concentrations in several regions, making it susceptible to economic conditions and currency fluctuations in these geographies. Global trade policies and tariffs also pose dynamic risks - The industry is competitive, leading to pricing and labor cost pressures that can negatively affect revenue, gross profit, and operating income[125](index=125&type=chunk) - The company operates in **75** countries, with significant concentrations in the Philippines, India, Brazil, US, Egypt, Türkiye, Colombia, Malaysia, Morocco, China, UK, and other EMEA, Latin America, and Asia-Pacific regions[126](index=126&type=chunk) - Economic strength/weakness and currency fluctuations in these geographies, as well as global trade policies and tariffs, impact the business[126](index=126&type=chunk)[127](index=127&type=chunk) [Seasonality](index=34&type=section&id=Seasonality) Revenue and margins are typically higher in the fourth fiscal quarter due to underlying trends in client businesses and consumer activity - Revenue and margins are typically higher in the **fourth fiscal quarter** of the year[128](index=128&type=chunk) [Critical Accounting Policies and Estimates](index=34&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There were no material changes to the company's critical accounting policies and estimates during the three and nine months ended August 31, 2025, from those disclosed in the prior annual report - No material changes to critical accounting policies and estimates during the three and nine months ended August 31, 2025[129](index=129&type=chunk) [Results of Operations – Three and Nine Months Ended August 31, 2025 and 2024](index=35&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20and%20Nine%20Months%20Ended%20August%2031%2C%202025%20and%202024) This section details the financial performance for the three and nine months ended August 31, 2025, showing revenue growth across most verticals, a decline in gross profit and margin, but improved operating income for the nine-month period due to reduced SG&A expenses. Interest expenses decreased, and other expense (income) shifted to a net income, significantly boosting income before taxes and net income [Revenue](index=35&type=section&id=Revenue) Analyzes revenue performance by industry vertical, including foreign currency impacts and growth trends Total Revenue (in thousands) | Period | August 31, 2025 | August 31, 2024 | % Change | | :----- | :-------------- | :-------------- | :------- | | 3 Months | $2,483,253 | $2,387,412 | 4.0% | | 9 Months | $7,272,846 | $7,170,876 | 1.4% | - Foreign currency exchange rates had a positive impact of **$33.6 million** (**1.4%**) on revenue growth for the three months ended August 31, 2025, primarily due to the strengthening of the euro, but a negative impact of **$28.3 million** (**0.4%**) for the nine months due to the weakening of the Brazilian real and other currencies[133](index=133&type=chunk)[134](index=134&type=chunk) - For the three months, Banking, Financial Services and Insurance (**9.1%**) and Communications and Media (**8.1%**) showed the strongest revenue growth. For the nine months, Healthcare revenue remained flat, and the 'Other' vertical decreased by **2.6%**[132](index=132&type=chunk)[135](index=135&type=chunk)[137](index=137&type=chunk) [Cost of Revenue, Gross Profit and Gross Margin Percentage](index=36&type=section&id=Cost%20of%20Revenue%2C%20Gross%20Profit%20and%20Gross%20Margin%20Percentage) Examines cost of revenue, gross profit, and gross margin, including foreign currency effects Cost of Revenue and Gross Profit (in thousands) | Metric | 3 Months Ended Aug 31, 2025 | 3 Months Ended Aug 31, 2024 | % Change (3M) | 9 Months Ended Aug 31, 2025 | 9 Months Ended Aug 31, 2024 | % Change (9M) | | :-------------- | :-------------------------- | :-------------------------- | :------------ | :-------------------------- | :-------------------------- | :------------ | | Cost of revenue | $1,628,246 | $1,523,220 | 6.9% | $4,713,792 | $4,592,586 | 2.6% | | Gross profit | $855,007 | $864,192 | -1.1% | $2,559,054 | $2,578,290 | -0.7% | Gross Margin Percentage | Period | August 31, 2025 | August 31, 2024 | Change (pp) | | :----- | :-------------- | :-------------- | :---------- | | 3 Months | 34.4% | 36.2% | -1.8 | | 9 Months | 35.2% | 36.0% | -0.8 | - Foreign currency exchange rates increased cost of revenue by **$16.0 million** (**1.1%**) for the three months due to euro strengthening, but reduced cost of revenue by **$76.4 million** (**1.7%**) for the nine months due to weakening of the Brazilian real and other currencies[139](index=139&type=chunk)[140](index=140&type=chunk) [Selling, General and Administrative Expenses](index=36&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) Details changes in SG&A expenses, their percentage of revenue, and contributing factors Selling, General and Administrative Expenses (in thousands) | Period | August 31, 2025 | August 31, 2024 | % Change | | :----- | :-------------- | :-------------- | :------- | | 3 Months | $708,023 | $710,950 | -0.4% | | 9 Months | $2,094,858 | $2,126,439 | -1.5% | - As a percentage of revenue, SG&A decreased from **29.8%** to **28.5%** for the three months, and from **29.7%** to **28.8%** for the nine months[143](index=143&type=chunk) - The decrease was primarily driven by a reduction in acquisition-related and integration expenses (**$17.4 million** for **3** months, **$43.7 million** for **9** months) and a **$10.9 million** reduction due to foreign currency exchange rates for the nine months, partially offset by a **$12.6 million** increase in share-based compensation expense for the nine months[146](index=146&type=chunk)[147](index=147&type=chunk) [Operating Income](index=37&type=section&id=Operating%20Income) Presents operating income and operating margin, reflecting overall operational profitability Operating Income (in thousands) | Period | August 31, 2025 | August 31, 2024 | % Change | | :----- | :-------------- | :-------------- | :------- | | 3 Months | $146,984 | $153,242 | -4.1% | | 9 Months | $464,196 | $451,851 | 2.7% | Operating Margin | Period | August 31, 2025 | August 31, 2024 | Change (pp) | | :----- | :-------------- | :-------------- | :---------- | | 3 Months | 5.9% | 6.4% | -0.5 | | 9 Months | 6.4% | 6.3% | 0.1 | [Interest Expense and Finance Charges, Net](index=37&type=section&id=Interest%20Expense%20and%20Finance%20Charges%2C%20Net) Analyzes interest expense and finance charges, net, highlighting factors influencing changes Interest Expense and Finance Charges, Net (in thousands) | Period | August 31, 2025 | August 31, 2024 | % Change | | :----- | :-------------- | :-------------- | :------- | | 3 Months | $72,014 | $80,815 | -10.9% | | 9 Months | $220,414 | $245,711 | -10.3% | - The decrease was primarily due to a **$8.9 million** (**3** months) and **$29.5 million** (**9** months) reduction in term loan interest expense, resulting from decreased outstanding borrowings and lower effective interest rates[152](index=152&type=chunk)[153](index=153&type=chunk) - This decrease was partially offset by a **$5.0 million** increase in Securitization Facility interest expense for the nine months, due to increased outstanding borrowings[153](index=153&type=chunk) [Other Expense (Income), Net](index=38&type=section&id=Other%20Expense%20(Income)%2C%20Net) Details other expense (income), net, including acquisition contingent consideration and foreign currency gains/losses Other Expense (Income), Net (in thousands) | Period | August 31, 2025 | August 31, 2024 | % Change | | :----- | :-------------- | :-------------- | :------- | | 3 Months | $(36,474) | $46,011 | -179.3% | | 9 Months | $(20,175) | $19,772 | -202.0% | - The change was primarily due to a net benefit of **$12.9 million** (**3** months) and a net expense of **$15.3 million** (**9** months) related to the change in acquisition contingent consideration, and a net benefit of **$69.0 million** (**3** months) and **$54.6 million** (**9** months) related to foreign currency transaction gains (losses)[155](index=155&type=chunk)[156](index=156&type=chunk) [Provision for Income Taxes](index=38&type=section&id=Provision%20for%20Income%20Taxes) Examines income tax provision and effective tax rate, influenced by income and geographic mix Provision for Income Taxes (in thousands) | Period | August 31, 2025 | August 31, 2024 | % Change | | :----- | :-------------- | :-------------- | :------- | | 3 Months | $23,334 | $9,785 | 138.5% | | 9 Months | $63,497 | $50,801 | 25.0% | Effective Tax Rate | Period | August 31, 2025 | August 31, 2024 | Change (pp) | | :----- | :-------------- | :-------------- | :---------- | | 3 Months | 20.9% | 37.0% | -16.1 | | 9 Months | 24.1% | 27.3% | -3.2 | - The increases in tax expense were primarily due to an increase in income before taxes and a decrease in the effective tax rate, influenced by the geographic mix of worldwide income and certain discrete items[158](index=158&type=chunk) [Certain Non-GAAP Financial Information](index=39&type=section&id=Certain%20Non-GAAP%20Financial%20Information) Concentrix provides several non-GAAP financial measures, including non-GAAP operating income, adjusted EBITDA, non-GAAP net income, and non-GAAP diluted EPS, to offer a clearer view of its core operating performance by excluding items like acquisition-related expenses, amortization of intangibles, and share-based compensation. These non-GAAP measures generally show a decline for the three-month period but a mixed trend for the nine-month period compared to the prior year Non-GAAP Financial Measures (in thousands, except per share amounts) | Metric | 3 Months Ended Aug 31, 2025 | 3 Months Ended Aug 31, 2024 | % Change (3M) | 9 Months Ended Aug 31, 2025 | 9 Months Ended Aug 31, 2024 | % Change (9M) | | :-------------------------- | :-------------------------- | :-------------------------- | :------------ | :-------------------------- | :-------------------------- | :------------ | | Non-GAAP operating income | $305,128 | $330,965 | -7.81% | $930,323 | $971,171 | -4.21% | | Non-GAAP operating margin | 12.3% | 13.9% | -1.6 pp | 12.8% | 13.5% | -0.7 pp | | Adjusted EBITDA | $359,202 | $388,080 | -7.44% | $1,090,733 | $1,152,035 | -5.32% | | Adjusted EBITDA margin | 14.5% | 16.3% | -1.8 pp | 15.0% | 16.1% | -1.1 pp | | Non-GAAP net income | $183,231 | $192,158 | -4.54% | $550,978 | $552,968 | -0.36% | | Non-GAAP Diluted EPS | $2.78 | $2.87 | -3.00% | $8.27 | $8.16 | 1.35% | - Non-GAAP adjustments exclude acquisition-related and integration expenses, step-up depreciation, amortization of intangible assets, share-based compensation, certain debt costs, imputed interest related to Sellers' Note, legal settlement costs, change in acquisition contingent consideration, and foreign currency losses (gains), net[159](index=159&type=chunk)[160](index=160&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) Concentrix maintains strong liquidity, with $1,625.3 million available as of August 31, 2025, including undrawn credit facilities and cash. The company expects its cash flows and liquidity to be sufficient for current and long-term needs, with most non-U.S. cash reinvested internationally. The company's debt structure includes Senior Notes, a Restated Credit Agreement, and a Securitization Facility, with recent amendments increasing borrowing capacity and extending maturities. The Sellers' Note was fully repaid in September 2025. Cash flows from operating activities increased, while investing and financing activities saw reduced outflows, leading to a net increase in cash and equivalents [Debt Arrangements](index=43&type=section&id=Debt%20Arrangements) Details the company's debt structure, including Senior Notes, Credit Agreement, Securitization Facility, and compliance - The company's debt includes **$800 million** **6.650%** Senior Notes due **2026**, **$800 million** **6.600%** Senior Notes due **2028**, and **$550 million** **6.850%** Senior Notes due **2033**[170](index=170&type=chunk) - The Restated Credit Agreement (**April 11, 2025**) provides for a **$750 million** New Term Loan Facility, **$750 million** Delayed Draw Term Loans, and a **$1.1 billion** Revolving Credit Facility. Outstanding term loans were **$1,350 million** at August 31, 2025, after a **$150 million** voluntary prepayment[176](index=176&type=chunk)[182](index=182&type=chunk) - The Securitization Facility was amended on **January 14, 2025**, increasing commitment to **$700 million** and extending termination to **January 14, 2027**[185](index=185&type=chunk) - The Sellers' Note was fully repaid on **September 25, 2025**, using proceeds from Delayed Draw Term Loans and cash on hand[177](index=177&type=chunk)[189](index=189&type=chunk) - Concentrix was in compliance with all debt covenants as of **August 31, 2025**, and **November 30, 2024**[190](index=190&type=chunk) [Cash Flows – Nine Months Ended August 31, 2025 and 2024](index=45&type=section&id=Cash%20Flows%20%E2%80%93%20Nine%20Months%20Ended%20August%2031%2C%202025%20and%202024) Analyzes cash flows from operating, investing, and financing activities for the nine-month periods Cash Flow Summary (in thousands) | Metric | 9 Months Ended Aug 31, 2025 | 9 Months Ended Aug 31, 2024 | % Change | | :------------------------------------------ | :-------------------------- | :-------------------------- | :------- | | Net cash provided by operating activities | $462,747 | $383,091 | 20.79% | | Net cash used in investing activities | $(172,127) | $(183,395) | -6.25% | | Net cash used in financing activities | $(211,444) | $(268,074) | -21.12% | | Net increase (decrease) in cash, cash equivalents and restricted cash | $108,882 | $(74,725) | -245.78% |\ | Cash, cash equivalents and restricted cash at end of period | $538,486 | $441,762 | 21.89% | - The increase in operating cash flows was primarily due to favorable working capital changes and less cash required for acquisition-related and integration expenses[193](index=193&type=chunk) - The decrease in net cash used in investing activities was primarily related to a decrease in capital expenditures[194](index=194&type=chunk) [Free Cash Flow and Adjusted Free Cash Flow (non-GAAP measures)](index=46&type=section&id=Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow%20(non-GAAP%20measures)) Presents free cash flow and adjusted free cash flow, highlighting liquidity and operational efficiency Free Cash Flow (in thousands) | Metric | 9 Months Ended Aug 31, 2025 | 9 Months Ended Aug 31, 2024 | % Change | | :------------------------------------------ | :-------------------------- | :-------------------------- | :------- | | Net cash provided by operating activities | $462,747 | $383,091 | 20.79% | | Purchases of property and equipment | $(171,464) | $(178,891) | -4.15% | | Free cash flow | $291,283 | $204,200 | 42.64% | Adjusted Free Cash Flow (in thousands) | Metric | 9 Months Ended Aug 31, 2025 | 9 Months Ended Aug 31, 2024 | % Change | | :-------------------------- | :-------------------------- | :-------------------------- | :------- | | Adjusted free cash flow | $339,275 | $255,832 | 32.62% | - The increase in both free cash flow and adjusted free cash flow was driven by higher operating cash flows and a decrease in capital expenditures[197](index=197&type=chunk)[198](index=198&type=chunk) [Capital Resources](index=46&type=section&id=Capital%20Resources) Outlines available liquidity, cash and cash equivalents, and sufficiency for current and long-term needs - Total liquidity as of **August 31, 2025**, was **$1,625.3 million**, including **$1,100.0 million** undrawn revolving credit facility, **$175.0 million** undrawn Securitization Facility, and cash and cash equivalents[199](index=199&type=chunk) - Cash and cash equivalents totaled **$350.3 million** at August 31, 2025, with **98%** held by non-U.S. legal entities, which are no longer subject to U.S. federal tax on repatriation[200](index=200&type=chunk) - The company believes its available cash, operating cash flows, and liquidity sources will be sufficient to satisfy current and planned working capital and investment needs for the next **twelve months** and longer-term requirements[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Concentrix is exposed to market risks from foreign currency exchange rates and interest rates. The company uses derivative financial instruments to manage these risks, aiming to hedge economic exposures and reduce earnings/cash flow volatility, while also managing counterparty credit risk [Market Risk](index=47&type=section&id=Market%20Risk) Discusses exposure to foreign currency exchange rate and interest rate risks, and hedging strategies - The company is exposed to foreign currency exchange rate and interest rate risks[203](index=203&type=chunk) - Derivative financial instruments are used to hedge economic exposures and reduce volatility, with counterparty credit risk managed by selecting high-credit-standing financial institutions[203](index=203&type=chunk) [Foreign Currency Risk](index=47&type=section&id=Foreign%20Currency%20Risk) Details foreign currency exposure from non-U.S. operations and hedging strategies for cash flow requirements - Approximately **54%** of revenue is priced in U.S. dollars, but significant revenue is in other currencies (euros, British pounds, Japanese yen, Brazilian real), and costs are often in local currencies, creating foreign exchange exposure[204](index=204&type=chunk)[205](index=205&type=chunk) - As of **August 31, 2025**, the company hedged anticipated cash flow requirements in PHP (**42,420.0 million** for **$736.2 million**) and INR (**28,350 million** for **$322.9 million**) through **August 2027**[205](index=205&type=chunk) - A hypothetical **10%** adverse change in foreign currency exchange rates could result in a **$105.5 million** potential loss in fair value for such contracts, substantially mitigated by gains on underlying exposures[205](index=205&type=chunk) [Interest Rate Risk](index=47&type=section&id=Interest%20Rate%20Risk) Explains exposure to variable interest rates on debt and the estimated impact of rate changes - The company's outstanding debt under its Restated Credit Agreement and Securitization Facility is variable rate, exposing it to changes in interest rates[207](index=207&type=chunk) - A hypothetical **100 basis point** increase in interest rates on variable-rate debt would cause an estimated increase in interest expense of approximately **$18.8 million** per year[207](index=207&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control over financial reporting during the third fiscal quarter of 2025 [Evaluation of disclosure controls and procedures](index=48&type=section&id=Evaluation%20of%20disclosure%20controls%20and%20procedures) Confirms the effectiveness of the company's disclosure controls and procedures as of the reporting date - The principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of **August 31, 2025**[208](index=208&type=chunk) [Changes in internal control over financial reporting](index=48&type=section&id=Changes%20in%20internal%20control%20over%20financial%20reporting) Reports no material changes in internal control over financial reporting during the fiscal quarter - There were no material changes in the company's internal control over financial reporting during the **third fiscal quarter** of fiscal year **2025**[209](index=209&type=chunk) PART II—OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, other information, exhibits, and signatures [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings but does not expect them to have a material adverse effect on its operations, financial position, or cash flows. No new material proceedings or developments were reported - No new material legal proceedings or material developments in any legal proceedings were reported during the three months ended August 31, 2025[212](index=212&type=chunk) - The company does not believe that current legal proceedings will have a material adverse effect on its results of operations, financial position, or cash flows[212](index=212&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended November 30, 2024 - No material changes to risk factors from the Annual Report on Form 10-K for the fiscal year ended **November 30, 2024**[213](index=213&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company continued its share repurchase program during the fiscal quarter ended August 31, 2025, repurchasing 787,012 shares at an average price of $53.04 per share Share Repurchase Activity (Fiscal Quarter Ended August 31, 2025) | Period | Total number of shares purchased | Average price paid per share | | :---------------------- | :----------------------------- | :--------------------------- | | June 1, 2025 - June 30, 2025 | 221,888 | $55.03 | | July 1, 2025 - July 31, 2025 | 231,802 | $57.68 | | August 1, 2025 - August 31, 2025 | 333,322 | $48.50 | | **Total** | **787,012** | **$53.04** | - Approximately **$495.40 million** remained available for share repurchases under the existing authorization at August 31, 2025[214](index=214&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended August 31, 2025 - No directors or officers adopted or terminated Rule **10b5-1** or non-Rule **10b5-1** trading arrangements during the three months ended August 31, 2025[215](index=215&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including agreements, corporate documents, certifications, and XBRL-related documents - Includes Share Purchase and Contribution Agreement, Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, CEO/CFO certifications, and Inline XBRL documents[216](index=216&type=chunk) [Signatures](index=51&type=section&id=Signatures) The report is signed by Christopher Caldwell, President and Chief Executive Officer, and Andre Valentine, Chief Financial Officer, on October 3, 2025 - The report was signed by Christopher Caldwell (President and Chief Executive Officer) and Andre Valentine (Chief Financial Officer) on **October 3, 2025**[219](index=219&type=chunk)

Core Insights - Concentrix Corporation is recognized as a promising investment in the AI sector, showcasing strong third-quarter results that highlight its position as a provider of AI-powered business transformation solutions [1][2]. Financial Performance - Revenue for the third quarter increased by 4% year over year, reaching $2.48 billion, driven by strong demand for integrated solutions [2]. - Diluted earnings per share for the quarter were reported at $2.78, slightly lower than the $2.87 reported in the same quarter last year [2]. Strategic Outlook - The company anticipates fourth-quarter revenue to range between $2.525 billion and $2.550 billion, with expected earnings per share between $2.85 and $2.96 [3]. - Concentrix plans to distribute a quarterly dividend of $0.36, payable on November 4, to reward passive investors [3]. Business Model and Offerings - Concentrix utilizes AI to enhance customer and employee experiences, offering tools and frameworks like the Agentic Operating Framework and iX Hero to improve operational efficiency and unlock new revenue streams [4].

Core Insights - Concentrix Corporation (NASDAQ:CNXC) is identified as an oversold tech stock with potential investment opportunities [1] - The company launched the Agentic Operating Framework to assist enterprises in overcoming challenges in AI pilot projects [1][2] - The framework aims to transition AI projects from failed pilots to operational success by combining advanced technologies with consulting capabilities [2] Group 1: Agentic Operating Framework - The Agentic Operating Framework offers end-to-end planning capabilities, distinguishing it from standard AI solutions [2] - It includes a comprehensive ecosystem of services such as readiness & strategy, brand-aligned language models, agentic engineering, data management, and monitoring [3] - A significant feature, Agentic Value Maps, helps clients identify and prioritize high-value collaboration opportunities between human and AI agents [3] Group 2: Company Overview - Concentrix designs, builds, and operates integrated customer experience solutions globally [4] - While the company shows potential as an investment, there are other AI stocks perceived to have greater upside potential and lower downside risk [4]

Core Insights - The article discusses the author's background in economics and politics, emphasizing expertise in economic development and extensive experience in executive management within the insurance and reinsurance sectors [1]. Group 1 - The author has 36 years of experience in executive management, with a focus on insurance/reinsurance and the Global and Asia Pacific markets [1]. - The author possesses extensive knowledge of climate change and ESG (Environmental, Social, and Governance) factors [1]. - The author invests in a personal capacity, indicating a hands-on approach to investment [1].

Core Viewpoint - Concentrix Corporation's stock dropped over 16% in pre-market trading following third-quarter earnings that fell short of expectations, despite revenue exceeding guidance and an upward revision of the full-year outlook [1]. Financial Performance - The company reported adjusted earnings per share of $2.78 for the quarter ending August 31, which was below analyst expectations of $2.86 [2]. - Revenue for the quarter was $2.48 billion, surpassing expectations of $2.46 billion and reflecting a 4% year-on-year increase. On a constant currency basis, revenue grew by 2.6%, exceeding guidance [2]. - Profitability metrics showed a decline, with the adjusted operating margin falling to 12.3% from 13.9% a year ago, and the adjusted EBITDA margin decreasing to 14.5% from 16.3% [2]. Future Outlook - For the fourth quarter, Concentrix projected revenue between $2.525 billion and $2.550 billion, indicating a constant currency growth of 1.5% to 2.5% [3]. - The full-year revenue guidance was raised to a range of $9.798 billion to $9.823 billion, which corresponds to a constant currency growth of 1.75% to 2.0% [3].

Core Viewpoint - Concentrix's shares are experiencing a significant decline following the release of its Q3 2025 financial results, which disappointed investors despite a revenue beat [1][3]. Financial Performance - Concentrix reported Q3 2025 earnings per share (EPS) of $2.78, falling short of analysts' expectations of $2.87 [3]. - The company achieved revenue of $2.48 billion for Q3 2025, exceeding the anticipated $2.46 billion, marking a year-over-year revenue increase of 4% [4][5]. Future Guidance - Management has revised its fiscal 2025 adjusted EPS guidance down to a range of $11.11 to $11.23, compared to the previous expectation of $11.18 to $11.77 [3][5]. Investment Considerations - Despite the disappointing earnings and guidance, Concentrix offers a forward yield of 2.6% and has maintained a conservative payout ratio averaging 15% over the past five years, which may appeal to income-focused investors [5][6].

Core Viewpoint - Concentrix Corporation reported an earnings per share (EPS) of $2.78, which was below the expected $2.88, indicating a negative surprise of 3.47% [1]. Financial Performance - The actual revenue for the quarter ending August 2025 was approximately $2.48 billion, slightly below the forecasted $2.53 billion, but it exceeded the Zacks Consensus Estimate by 1.02% [2]. - Revenue grew by 4% compared to $2.39 billion in the same quarter of the previous year, and on a constant currency basis, it increased by 2.6% [2]. - Operating income for the quarter was $147 million, representing 5.9% of the revenue, highlighting operational efficiency [5]. Stock Market Reaction - Following the earnings report, Concentrix's stock price experienced a decline, and the company adjusted its fiscal 2025 earnings guidance downwards [3]. Shareholder Returns - Concentrix plans to return over $240 million to shareholders in fiscal 2025 and has announced an increase in its quarterly dividend [3]. Valuation Metrics - The company has a price-to-earnings (P/E) ratio of approximately 14.24, a price-to-sales ratio of about 0.36, and an enterprise value to sales ratio of around 0.83 [4]. - The enterprise value to operating cash flow ratio is approximately 11.22, indicating the company's effectiveness in generating cash from operations [4]. - Concentrix's debt-to-equity ratio is approximately 1.14, and its current ratio is about 1.61, reflecting its ability to meet short-term liabilities [5]. - The earnings yield stands at about 7.02%, representing the return on investment [5].

Core Insights - The customer-experience company has reduced its fiscal-year outlook, indicating potential challenges in meeting previous financial expectations [1] Summary by Categories Financial Performance - The company has adjusted its revenue projections downward, reflecting a more cautious approach to its financial outlook for the fiscal year [1] Market Impact - This revision in outlook may signal broader market challenges within the customer-experience sector, potentially affecting investor confidence and market positioning [1] Strategic Considerations - The company’s decision to lower its fiscal-year guidance suggests a need for reassessment of its strategic initiatives and operational efficiencies to navigate current market conditions [1]

Core Viewpoint - Poste Italiane is contemplating the introduction of an annual management fee for users of its digital identity service, as indicated by analysts following a company briefing [1] Group 1 - The potential annual management fee is part of Poste Italiane's strategy to enhance its digital services [1] - Analysts have highlighted this consideration in their daily reports, suggesting it may impact user engagement and revenue [1]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Top KingWin Ltd (WAI) has increased by 79% to $5.68 - Robo.ai Inc. (AIIO) is up 16% at $2.84 - Amplify Energy Corp. (AMPY) has risen by 12% to $6.53 - Diginex Limited (DGNX) is up 9% at $14.50 - MasterBrand, Inc. (MBC) has increased by 9% to $14.15 - GLOBALFOUNDRIES Inc. (GFS) is up 8% at $35.69 - Crinetics Pharmaceuticals, Inc. (CRNX) has risen by 7% to $38.50 - Aquestive Therapeutics, Inc. (AQST) is up 7% at $5.68 - American Woodmark Corporation (AMWD) has increased by 6% to $69.40 - NLS Pharmaceutics AG (NLSP) is up 5% at $2.17 [3] Premarket Losers - Concentrix Corporation (CNXC) has decreased by 21% to $43.05 - N2OFF, Inc. (NITO) is down 20% at $4.40 - SciSparc Ltd. (SPRC) has fallen by 16% to $5.11 - Legacy Education Inc. (LGCY) is down 13% at $10.68 - DarioHealth Corp. (DRIO) has decreased by 12% to $11.99 - AlphaTON Capital Corp. (ATON) is down 12% at $5.50 - SHF Holdings, Inc. (SHFS) has fallen by 10% to $6.20 - Fusion Fuel Green PLC (HTOO) is down 8% at $4.55 - Linkage Global Inc (LGCB) has decreased by 8% to $2.19 - PepGen Inc. (PEPG) is down 7% at $5.42 [4]