Core Insights - Concentrix Corporation (NASDAQ:CNXC) is a significant player in the technology and services sector, providing customer experience solutions and technology services across various industries [1] Financial Performance - On January 13, 2026, CNXC reported earnings per share of $2.95, surpassing the estimated $2.93, indicating efficient profit generation [2] - The company achieved a revenue of approximately $2.55 billion, exceeding the estimated $2.54 billion, reflecting strong fiscal year performance [2][6] - CNXC reported a record cash flow from operations of $807 million and an adjusted free cash flow of $626 million for fiscal 2025, showcasing robust cash generation capabilities [3][6] Shareholder Value and Debt Management - The company returned $258 million to shareholders through share repurchases and dividends in fiscal 2025, demonstrating a commitment to shareholder value [4] - CNXC reduced its debt, with a debt-to-equity ratio of 1.11, indicating moderate use of debt in its capital structure [4] - The current ratio of 1.56 suggests good liquidity to cover short-term liabilities [4] Valuation Metrics - CNXC's P/E ratio is 7.83 and the price-to-sales ratio is 0.26, indicating a relatively low market valuation compared to its earnings and sales [5] - The enterprise value to sales ratio is 0.72 and the enterprise value to operating cash flow ratio is 9.32, supporting the company's reasonable valuation [5] - An earnings yield of 12.77% suggests a strong return on investment for shareholders [5]

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As I’ve covered in previous articles , I see ageas SA/NV ( AGESY ) as a good income investment in the insurance sector due to its high-dividend yield that seems to be sustainable overLabutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider.Analyst’s Disclosur ...

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On portfolio mix, Caldwell said Concentrix reduced non-complex work to 5% of revenue from 7% over the year, largely by deploying technology to automate work. He also noted $95 million of investment in capabilities, capacity, facilities, security and footprint in fiscal 2025, which supported shifting 4% of onshore business to offshore centers. Caldwell said the migration creates “some margin compression” due to duplicate costs during transition, but he framed the moves as strengthening client relationships a ...

Concentrix (NasdaqGS:CNXC) Q4 2025 Earnings call January 13, 2026 08:30 AM ET Company ParticipantsRuplu Bhattacharya - DirectorSara Buda - VP of Investor RelationsChris Caldwell - President and CEOLuke Morrison - VP for Equity ResearchAndre Valentine - EVP and CFOConference Call ParticipantsVincent Colicchio - Managing Director and Senior Equity AnalystDave Koning - Senior Research AnalystOperatorHello, everyone. Thank you for joining us, and welcome to the Concentrix Fourth Quarter and Fiscal Year 2025 Fin ...

Financial Data and Key Metrics Changes - For fiscal year 2025, the company achieved a total revenue growth of 2.1% on a constant currency basis, exceeding guidance expectations [22] - In Q4, revenue was approximately $2.55 billion, reflecting a constant currency growth of 3.1%, which was above the high end of previous guidance [19] - Non-GAAP operating income for the full year was $1.254 billion, with a non-GAAP operating margin of 12.8% [22] - Adjusted free cash flow reached a record $626 million, an increase of 32% from the prior year [22] - The company returned $258 million to shareholders through dividends and share repurchases [22] Business Line Data and Key Metrics Changes - The company successfully reduced non-complex work from 7% to 5% of revenue, primarily through technology automation [7] - High-complexity work has been emphasized, leading to a 6% increase in annual contract value of deals in the pipeline [9] - The company reported a 37% increase in values for new service areas, indicating a shift towards technology-enabled services [9] Market Data and Key Metrics Changes - Revenue from banking, financial services, and insurance clients grew by 11%, while revenue from communications and media clients increased by 7% [20] - Revenue from technology and consumer electronics and healthcare clients both decreased by approximately 2% [20] - The company noted that 98% of its top 50 clients now rely on multiple solutions from Concentrix, indicating strong client consolidation [9] Company Strategy and Development Direction - The company is evolving to become a high-value intelligent transformation partner, focusing on complex work and high-value services [5] - Investments in technology and capabilities are aimed at differentiating from competitors and driving efficiencies [6][11] - The launch of the iX Suite AI platform is a key strategic initiative, with over $60 million in annualized AI revenue achieved [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2026, with expectations of revenue between $10.035 billion and $10.180 billion [24] - The company anticipates a conservative revenue growth of 1.5%-3% for the full year 2026, factoring in proactive reductions in non-complex work [24] - Management highlighted the importance of maintaining a strong cash flow and returning value to shareholders while investing in long-term growth [27] Other Important Information - The company achieved break-even profitability with its iX Suite and generated record-adjusted free cash flow [18] - A non-cash goodwill impairment charge of $1.52 billion was recorded in Q4, reflecting stock trading range [21] - The company reduced net debt by approximately $184 million during the year [22] Q&A Session Summary Question: Metrics for AI-related software investment - Management focuses on ensuring that AI investments are accretive to the business, with a goal of achieving specific revenue targets [32] Question: Determining support for customers facing slowdowns - Investment decisions are based on the type of services clients need rather than call volumes, focusing on long-term relationships [38] Question: Market growth rate and acquisition strategy - The traditional CX market is flat, but adjacent services are growing at mid-single digits, with a focus on opportunistic acquisitions [41][43] Question: Margin outlook and revenue growth - Management expects sequential improvement in margins in the second half of the year, driven by automation and simplification efforts [49] Question: Effects of low-complexity work and offshore transitions - The company anticipates a gradual reduction in low-complexity work headwinds, with a focus on optimizing existing operations [56] Question: Talent access for higher-end solutions - The company has not faced significant challenges in accessing talent due to its global footprint, which provides a robust talent pool [68]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company achieved a total revenue growth of 2.1% on a constant currency basis, exceeding guidance and outperforming many peers [23] - In Q4, revenue was approximately $2.55 billion, reflecting a constant currency growth of 3.1%, which was above the high end of previous guidance [19] - Non-GAAP operating income for the quarter was $323 million, with a margin of 12.7%, showing a sequential increase of 40 basis points [20] - Adjusted free cash flow reached a quarterly record of over $287 million [21] - The company returned $258 million to shareholders through dividends and share repurchases during the fiscal year [23] Business Line Data and Key Metrics Changes - The company successfully reduced non-complex work from 7% to 5% of revenue, primarily through automation and technology solutions [6] - Annual contract value of deals in the pipeline increased by 6%, with a 9% increase in new wins year-on-year [9] - Transformational deal values grew by 14%, and cross-sell upsell deals increased by 23% [9] - The launch of the IX Suite AI platform generated over $60 million in annualized revenue, with 40% of new business including some form of the company's technology [10] Market Data and Key Metrics Changes - Revenue from banking, financial services, and insurance clients grew by 11%, while revenue from communications and media clients increased by 7% [20] - Revenue from travel clients also grew by 7%, while technology and consumer electronics, as well as healthcare clients, saw a decrease of approximately 2% [20] Company Strategy and Development Direction - The company aims to evolve into a high-value intelligent transformation partner by focusing on complex work and high-value services [5] - Investments in technology and capabilities totaled $95 million in 2025, aimed at optimizing client cost structures and enhancing service offerings [6] - The strategy includes leveraging proprietary technology to differentiate from competitors and drive efficiencies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing consistent revenue growth and strong cash flow generation [19] - The company anticipates a conservative revenue growth guidance for 2026, expecting reported revenue between $10.035 billion and $10.180 billion [25] - Management highlighted the importance of scale, domain expertise, and a diversified service offering as key competitive advantages [16] Other Important Information - The company reduced net debt by approximately $184 million during the fiscal year [23] - Cash and cash equivalents at the end of Q4 were $327 million, with total debt at $4.639 billion [24] Q&A Session Summary Question: Metrics for AI-related software investment - The company focuses on ensuring that AI investments are accretive, achieving a run rate of $60 million with a total spend of around $50 million [31] Question: Determining support for customers facing slowdowns - Investment decisions are based on the type of services clients need rather than call volumes, focusing on long-term relationships with clients [35] Question: Market growth rate expectations - The traditional CX market is flat, while adjacent services are growing at high single digits, indicating a positive outlook for specific segments [37] Question: Consolidation and its impact - The company expects continued consolidation in the market, leveraging its global footprint and technology to drive growth [36] Question: Margin outlook and improvements - Management anticipates sequential improvement in margins in the second half of 2026 as overcapacity issues are resolved and transformational deals are implemented [40]

Financial Performance - The company's 2025 revenue reached $9.8 billion[5], demonstrating a 2.2% year-over-year increase[44] - The three-year Compound Annual Growth Rate (CAGR) for revenue is 15.8%[5] - Adjusted Free Cash Flow for FY 2025 was $626 million[5] - The company anticipates revenue between $10.04 billion and $10.18 billion for FY 2026[44] - The company returned over $258 million to shareholders through share repurchases and dividends in FY 2025[43] Client Base and Services - The company serves over 2,000 clients, including over 160 Fortune Global 500 clients[5] - The company's client base includes 8 of the top 10 Fintech companies and 10 of the top 10 global automotive companies[18] - The company offers a broad portfolio of services including Strategy & Design, Data & Analytics, and Enterprise Technology[13, 14, 16] AI and Operational Improvements - The company's AI solutions are deployed across 1,000+ clients and 400,000+ desktops[35] - An energy client case study showed a 16.5% improvement in first contact resolution after implementing the company's solutions[26] - A consumer goods case study showed a 1.8% increase in Customer Satisfaction (CSAT) and a 7% improvement in Average Handle Time (AHT)[27]

Financial Performance - Revenue for Q4 2025 was $2,552.9 million, a 4.3% increase year-on-year, exceeding guidance[6] - Operating loss for Q4 2025 was $1,382.4 million, representing (54.1)% of revenue, primarily due to a non-cash goodwill impairment charge of $1,523.3 million[6] - Non-GAAP operating income for Q4 2025 was $323.2 million, or 12.7% of revenue, down from $346.7 million, or 14.2% of revenue in Q4 2024[10] - Adjusted EBITDA for Q4 2025 was $378.6 million, or 14.8% of revenue, compared to $402.9 million, or 16.5% of revenue in Q4 2024[10] - Fiscal year 2025 revenue reached $9,825.8 million, a 2.2% increase year-on-year, also exceeding guidance[11] - Non-GAAP diluted EPS for Q4 2025 was $2.95, a decrease of 9.5% from $3.26 in Q4 2024[10] - Total revenue for the three months ended November 30, 2025, was $2,552,925, representing a 4% increase from $2,448,024 in the same period of 2024[32] - The operating loss for the three months ended November 30, 2025, was $(1,382,379), compared to an operating income of $144,536 in the same period of 2024[32] - Net loss for the fiscal year ended November 30, 2025, was $(1,278,924), a significant decline from net income of $251,217 in 2024[32] - Non-GAAP operating income for the fiscal year ended November 30, 2025, was $1,253,544, down from $1,317,912 in the previous fiscal year[34] - Operating margin for the fiscal year ended November 30, 2025, was (9.3)%, down from 6.2% in the previous fiscal year[34] - The company reported a constant currency revenue growth of 3.1% for the three months ended November 30, 2025[34] - The company reported a net loss of $1,479,384 for the three months ended November 30, 2025, compared to a net income of $115,650 in the same period last year[35] - The diluted earnings per share (EPS) for the three months ended November 30, 2025, was $(23.85), compared to $1.72 in the same period last year[36] Cash Flow and Shareholder Returns - The company returned $258 million to shareholders through dividends and share repurchases while reducing net debt by $184 million[11] - The company anticipates generating approximately $630 million to $650 million of adjusted free cash flow in fiscal year 2026[14] - Free cash flow for the fiscal year ended November 30, 2025, was $572,471, an increase from $428,730 in the previous fiscal year[36] Future Guidance - For Q1 2026, the company expects reported revenue of $2.475 billion to $2.500 billion, implying constant currency growth of 1.5% to 2.5%[19] - Full year 2026 revenue guidance is set at $10.035 billion to $10.180 billion, indicating constant currency growth of 1.5% to 3.0%[19] - Revenue for the three months ending February 28, 2026, is forecasted to be between $2,475,000 and $2,500,000, with a fiscal year ending November 30, 2026, revenue forecast of $10,035,000 to $10,180,000[37] - Reported revenue growth under U.S. GAAP is expected to be 4.4% to 5.4% for the three months and 2.1% to 3.6% for the fiscal year[37] - Constant currency revenue growth is projected at 1.5% to 2.5% for the three months and 1.5% to 3.0% for the fiscal year[37] - Operating income for the three months is forecasted to be between $139,500 and $149,500, with a fiscal year operating income forecast of $687,500 to $737,500[37] - Non-GAAP operating income is expected to range from $290,000 to $300,000 for the three months and $1,240,000 to $1,290,000 for the fiscal year[37] Assets and Liabilities - Cash and cash equivalents increased to $327,347 as of November 30, 2025, from $240,571 in 2024[30] - Total assets decreased to $10,761,086 as of November 30, 2025, down from $11,991,438 in 2024[30] - Total liabilities increased to $8,016,741 as of November 30, 2025, compared to $7,951,714 in 2024[30] Impairment and Charges - The impairment charges for the three months ended November 30, 2025, were $1,527,726, with no charges reported in the same period of 2024[32] - The company incurred impairment charges of $1,527,726 for the three months ended November 30, 2025[35] Revenue Segmentation - The company’s revenue from banking, financial services, and insurance increased by 12% to $402,566 for the three months ended November 30, 2025[32] Share Count - The weighted-average common shares outstanding for the three months ended November 30, 2025, were 62,071, down from 64,315 in 2024[32]