Group 1 - U.S. stock futures are higher, with Dow futures gaining over 100 points [1] - Concentrix Corporation reported quarterly earnings of $2.70 per share, missing the analyst consensus estimate of $2.75, while quarterly revenue was $2.42 billion, exceeding the Street estimate of $2.38 billion [1] - Concentrix shares fell 8% to $50.70 in pre-market trading [1] Group 2 - CorMedix Inc. declined 14.2% to $12.83 after announcing an $85 million public offering [4] - Critical Metals Corp. fell 14.2% to $3.14 after a previous surge of over 32% [4] - AdaptHealth Corp. decreased 8.6% to $8.61 after gaining around 5% on the previous day [4] - USA Rare Earth, Inc. declined 8.4% to $11.65 [4] - Gold Fields Limited fell 5.1% to $22.60 [4] - OMS Energy Technologies Inc. decreased 4.6% to $6.80 [4]

Group 1 - Concentrix Corporation (CNXC) reported quarterly earnings of $2.7 per share, missing the Zacks Consensus Estimate of $2.76 per share, but showing an increase from $2.69 per share a year ago, resulting in an earnings surprise of -2.17% [1] - The company posted revenues of $2.42 billion for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 1.57%, and compared to year-ago revenues of $2.38 billion [2] - Concentrix shares have increased approximately 25.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 3.6% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $2.88 on revenues of $2.39 billion, and for the current fiscal year, it is $11.57 on revenues of $9.56 billion [7] - The Zacks Industry Rank indicates that the Business - Services sector is currently in the top 27% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $2,400,000,000 for Q2, an increase of 1.5% year on year on both a constant currency and reported basis [14] - Adjusted free cash flow was $200,000,000 in the quarter, an improvement of about $240,000,000 sequentially from Q1 [17] - Non-GAAP diluted EPS was $2.7 per share, an increase of $0.1 year on year [17] - GAAP net income was $42,000,000 for the quarter, with GAAP diluted EPS at $0.63 per share [17] Business Line Data and Key Metrics Changes - Revenue from retail, travel, and e-commerce clients grew 3% year on year, led by growth with travel clients [15] - Media and Communications also grew 3% year on year, while revenue from banking, financial services, and insurance clients grew 2% [15] - The tech and healthcare verticals were relatively flat, reflecting offshore movement [15] Market Data and Key Metrics Changes - The company is seeing a strong pipeline across verticals and geographies, with a favorable mix of services and margin profiles [7] - A Gartner study revealed that 85% of enterprises expect to increase their outsourcing budget over the next two to three years, primarily for AI initiatives [9] Company Strategy and Development Direction - The company is focused on delivering integrated technology-led solutions that align with client needs and expanding the value provided across a broader portfolio of business solutions [12] - The strategy includes automating or de-investing in commodity work to keep the underlying business healthy [12] - The company is well-positioned against competitors, particularly for large-scale programs that combine consulting, IT integration, CX expertise, and AI [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, expecting revenue and margin improvement as investments made begin to pay off [12][23] - The company anticipates a steady acceleration in growth rates and is committed to driving strong year-on-year free cash flow growth [23] - Management noted that clients are centralizing spend with partners that have scale, breadth, and expertise to deliver real-world solutions [12] Other Important Information - The company returned approximately $67,000,000 to shareholders in the quarter, including share repurchases and dividends [18] - Cash and cash equivalents at the end of the quarter were $343,000,000, with total debt at approximately $4,900,000,000 [18] Q&A Session Summary Question: What is the outlook for revenue acceleration in the second half? - Management indicated that momentum is broad-based across verticals and geographies, with positive trends in banking, tech, and media [28] Question: How is AI impacting the company's market position? - The company has seen strong adoption of its AI solutions, with clients increasingly interested in practical applications rather than hype [10][36] Question: What caused the margin decline in Q2? - The margin decline was primarily due to clients pausing projects in response to tariffs, but management expects margins to improve in Q3 [16][44] Question: What is the expected revenue contribution from IX Hello and IX Hero? - Management expects these AI offerings to be accretive by the end of Q4 and sees potential for revenue growth without increasing spending [54] Question: How is the company addressing pricing dynamics? - There is growing interest in outcomes-based pricing, but the company still primarily operates on a transactional basis [87]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $2,400,000,000 for Q2, an increase of 1.5% year on year on both a constant currency and as reported basis [14] - Adjusted free cash flow was $200,000,000 in the quarter, an improvement of about $240,000,000 sequentially from Q1 [18] - Non-GAAP diluted EPS was $2.7 per share, an increase of $0.1 year on year [17] - GAAP net income was $42,000,000 for the quarter, with GAAP diluted EPS at $0.63 per share [17] Business Line Data and Key Metrics Changes - Revenue from retail, travel, and e-commerce clients grew 3% year on year, led by growth with travel clients [15] - Media and Communications also grew 3% year on year, while revenue from banking, financial services, and insurance clients grew 2% [15] - The tech and healthcare verticals were relatively flat, reflecting offshore movement [15] Market Data and Key Metrics Changes - The company is seeing a strong pipeline across verticals and geographies, with a positive sentiment from clients regarding increased outsourcing budgets [9][10] - A Gartner study revealed that 85% of enterprises expect to increase their outsourcing budget over the next two to three years, primarily to support their AI agenda [9] Company Strategy and Development Direction - The company is focused on delivering integrated technology-led solutions that align with client needs and expanding the value provided across a broader portfolio of business solutions [12] - The strategy includes automating or de-investing in commodity work to keep the underlying business healthy [12] - The company is well-positioned against competitors, particularly for large-scale programs that combine consulting, IT integration, CX expertise, and AI [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, expecting revenue and margin improvement due to a strong pipeline and new business signed [20][22] - The company anticipates meaningful sequential margin improvement in both Q3 and Q4, driven by the recovery from the tariff impact and ongoing investments in technology [16][22] - Management noted that clients are looking for pragmatic solutions and are increasingly centralizing spend with partners that have scale and expertise [12][13] Other Important Information - The company returned approximately $67,000,000 to shareholders in the quarter, including share repurchases and dividends [19] - Cash and cash equivalents at the end of the quarter were $343,000,000, with total debt at approximately $4,900,000,000 [19] Q&A Session Summary Question: Revenue acceleration in the second half - Management indicated that revenue acceleration is broad-based, with solid pipeline building across geographies and verticals, particularly in banking, tech, and media [28] Question: AI technology journey and market recognition - Management highlighted strong market traction for their AI products, with clients adopting their technology faster than expected and seeing significant growth in adjacent services [36] Question: Margin impacts in Q2 - Management explained that margins were impacted by clients pausing projects due to tariffs, but they expect margins to improve as clients resume projects and new business ramps up [40][42] Question: Revenue contribution from IX Hello and IX Hero - Management expects IX suite products to be accretive by the end of Q4 and plans to maintain spending while accelerating revenue growth [54] Question: Operating environment and sales cycles - Management noted that transformation deals are taking longer but are not shrinking, and they are seeing good win rates in their pipeline [62] Question: Pricing strategy evolution - Management mentioned an increasing interest in outcomes-based pricing but noted that traditional transactional pricing still dominates their revenue streams [87]

Core Insights - Concentrix Corp. reported second-quarter earnings of $2.70 per share, missing the analyst consensus estimate of $2.75, while quarterly revenue was $2.42 billion, exceeding the Street estimate of $2.38 billion [1][4] Financial Performance - The company experienced mid-quarter volatility but continued to outperform expectations on revenue growth [2] - Concentrix narrowed its fiscal 2025 adjusted EPS guidance to between $11.53 and $11.76, compared to the previous range of $11.18 to $11.77 and the analyst estimate of $11.54 [3] - The fiscal 2025 revenue outlook was raised from a range of $9.49 billion to $9.63 billion to a new range of $9.72 billion to $9.81 billion, surpassing the $9.61 billion estimate [4] Future Outlook - The CEO indicated an accelerated pace of activity with both existing and new clients, along with improving margins [3] - Investments in AI are expected to be accretive to the business by year-end as planned [3]

[Executive Summary](index=1&type=section&id=1.%20Executive%20Summary) [Second Quarter Fiscal 2025 Highlights](index=1&type=section&id=1.1%20Second%20Quarter%20Fiscal%202025%20Highlights) Concentrix exceeded its revenue guidance for Q2 FY2025 and subsequently raised its full-year growth outlook, generating $200.3 million in adjusted free cash flow and anticipating over $240 million in shareholder returns for fiscal 2025 - Exceeded revenue guidance for the quarter and raised full year growth outlook[5](index=5&type=chunk) - Generated **$200.3 million** in adjusted free cash flow for the quarter, on track to deliver **$625 million to $650 million** for the year[5](index=5&type=chunk)[6](index=6&type=chunk) - Expects to return more than **$240 million** to shareholders in fiscal 2025 through share repurchases and dividends[5](index=5&type=chunk) - Saw ongoing momentum for the Company's iX Product Suite[5](index=5&type=chunk) [CEO Commentary](index=2&type=section&id=1.2%20CEO%20Commentary) CEO Chris Caldwell highlighted Q2 revenue outperformance despite mid-quarter volatility, expressing optimism for accelerated client activity and improving margins in the second half, with AI investments on track to be accretive by year-end - Outperformed expectations on revenue growth in Q2 despite some mid-quarter volatility[7](index=7&type=chunk) - Anticipates an accelerated pace of activity with existing and new clients and improving margins in the second half of the year[7](index=7&type=chunk) - AI investments are on pace to be accretive to the business by year-end as planned[7](index=7&type=chunk) [Second Quarter Fiscal 2025 Financial Results](index=1&type=section&id=2.%20Second%20Quarter%20Fiscal%202025%20Financial%20Results) [Key Financial Metrics (GAAP & Non-GAAP)](index=1&type=section&id=2.1%20Key%20Financial%20Metrics%20(GAAP%20%26%20Non-GAAP)) Concentrix reported Q2 FY2025 revenue of $2,417.4 million, a 1.5% increase year-on-year, with GAAP operating income and net income declining, while non-GAAP diluted EPS slightly increased, and non-GAAP operating income and Adjusted EBITDA decreased due to temporary program pauses and strategic investments Three Months Ended May 31, 2025 vs. May 31, 2024 | Metric | May 31, 2025 ($M) | May 31, 2024 ($M) | Change (%) | | :-------------------------------- | :---------------- | :---------------- | :--------- | | Revenue | 2,417.4 | 2,380.7 | 1.5 % | | Operating income | 148.3 | 150.2 | (1.3)% | | Non-GAAP operating income (1) | 303.7 | 321.1 | (5.4)% | | Operating margin | 6.1 % | 6.3 % | -20 bps | | Non-GAAP operating margin (1) | 12.6 % | 13.5 % | -90 bps | | Net income | 42.1 | 66.8 | (37.0)% | | Non-GAAP net income (1) | 179.6 | 183.1 | (1.9)% | | Adjusted EBITDA (1) | 357.3 | 379.6 | (5.9)% | | Adjusted EBITDA margin (1) | 14.8 % | 15.9 % | -110 bps | | Diluted earnings per common share | 0.63 | 0.98 | (35.7)% | | Non-GAAP diluted earnings per common share (1) | 2.70 | 2.69 | 0.4 % | - Non-GAAP operating income decreased primarily due to temporary program pauses mid-quarter and investments ahead of expected accelerated growth in the second half of the year[6](index=6&type=chunk) [Revenue by Segment](index=7&type=section&id=2.2%20Revenue%20by%20Segment) In Q2 FY2025, the Technology and consumer electronics segment remained the largest revenue contributor with 1% growth, while Retail, travel and e-commerce, and Communications and media segments both grew by 3%, Healthcare remained flat, and 'Other' saw a slight decline Revenue by Segment (Three Months Ended May 31, 2025 vs. May 31, 2024) | Segment | May 31, 2025 ($K) | May 31, 2024 ($K) | % Change | | :-------------------------------- | :---------------- | :---------------- | :--------- | | Technology and consumer electronics | 662,719 | 658,268 | 1 % | | Retail, travel and e-commerce | 583,782 | 568,081 | 3 % | | Communications and media | 392,963 | 381,253 | 3 % | | Banking, financial services and insurance | 384,015 | 377,723 | 2 % | | Healthcare | 176,386 | 176,673 | — % | | Other | 217,506 | 218,718 | (1)% | | **Total revenue** | **2,417,371** | **2,380,716** | **2 %** | [Cash Flow and Shareholder Returns](index=1&type=section&id=2.3%20Cash%20Flow%20and%20Shareholder%20Returns) Concentrix generated $236.5 million in cash flow from operations and $200.3 million in adjusted free cash flow during Q2 FY2025, continuing its shareholder return program through quarterly dividends and share repurchases - Cash flow provided by operations was **$236.5 million** in the quarter[6](index=6&type=chunk) - Adjusted free cash flow was **$200.3 million** in the quarter[6](index=6&type=chunk) - Paid a **$0.33275 per share** quarterly dividend on May 6, 2025[12](index=12&type=chunk) - Repurchased approximately **920,000 common shares** in Q2 at a cost of **$45.0 million**, averaging **$49.09 per share**[12](index=12&type=chunk) [Business Outlook](index=2&type=section&id=3.%20Business%20Outlook) [Third Quarter Fiscal 2025 Expectations](index=2&type=section&id=3.1%20Third%20Quarter%20Fiscal%202025%20Expectations) For the third quarter of fiscal 2025, Concentrix forecasts reported revenue between $2.445 billion and $2.470 billion, with an implied constant currency revenue growth of 1.0% to 2.0%, and non-GAAP EPS projected in the range of $2.80 to $2.91 Third Quarter Fiscal 2025 Forecasts | Metric | Low ($M) | High ($M) | | :-------------------------------- | :--------- | :---------- | | Reported Revenue | 2,445 | 2,470 | | Constant Currency Revenue Growth | 1.0 % | 2.0 % | | Operating Income | 162.2 | 172.2 | | Non-GAAP Operating Income | 318 | 328 | | Non-GAAP EPS | 2.80 | 2.91 | | Effective Tax Rate | ~25.5% | ~25.5% | [Full Year Fiscal 2025 Expectations](index=2&type=section&id=3.2%20Full%20Year%20Fiscal%202025%20Expectations) Concentrix has raised its full-year fiscal 2025 reported revenue outlook to $9.720 billion to $9.815 billion, expecting constant currency growth of 1.0% to 2.0%, and projects non-GAAP EPS of $11.53 to $11.76 and adjusted free cash flow of $625 million to $650 million Full Year Fiscal 2025 Forecasts | Metric | Low ($M) | High ($M) | | :-------------------------------- | :--------- | :---------- | | Reported Revenue | 9,720 | 9,815 | | Constant Currency Revenue Growth | 1.0 % | 2.0 % | | Operating Income | 675 | 695 | | Non-GAAP Operating Income | 1,300 | 1,320 | | Non-GAAP EPS | 11.53 | 11.76 | | Effective Tax Rate | ~25% | ~25% | - Expects to generate approximately **$625 million to $650 million** of adjusted free cash flow in fiscal year 2025[11](index=11&type=chunk) - Expects to return approximately **$240 million** to shareholders in fiscal 2025 through share repurchases and dividends[11](index=11&type=chunk) [Shareholder Programs](index=2&type=section&id=4.%20Shareholder%20Programs) [Quarterly Dividend](index=2&type=section&id=4.1%20Quarterly%20Dividend) Concentrix paid a quarterly dividend of $0.33275 per share on May 6, 2025, and its Board of Directors has declared the same dividend amount payable on August 5, 2025 - Paid a **$0.33275 per share** quarterly dividend on May 6, 2025[12](index=12&type=chunk) - Declared a quarterly dividend of **$0.33275 per share** payable on August 5, 2025[12](index=12&type=chunk) [Share Repurchase Program](index=2&type=section&id=4.2%20Share%20Repurchase%20Program) In the second quarter, Concentrix repurchased approximately 920,000 common shares for $45.0 million under its existing program, with $537.3 million remaining authorized for future repurchases - Repurchased approximately **920,000 common shares** in the second quarter at a cost of **$45.0 million**[12](index=12&type=chunk) - Average cost per share for repurchases was **$49.09**[12](index=12&type=chunk) - Remaining share repurchase authorization was **$537.3 million** as of May 31, 2025[12](index=12&type=chunk) [Company Information & Disclosures](index=3&type=section&id=5.%20Company%20Information%20%26%20Disclosures) [About Concentrix](index=3&type=section&id=5.1%20About%20Concentrix) Concentrix Corporation is a Fortune 500 global technology and services leader, providing human-centered, tech-powered, and intelligence-fueled end-to-end solutions to over 2,000 clients across 70+ markets, aiming to transform how companies connect, interact, and grow - Concentrix Corporation is a Fortune 500 global technology and services leader[17](index=17&type=chunk) - Provides human-centered, tech-powered, intelligence-fueled, fully integrated, end-to-end solutions[17](index=17&type=chunk) - Serves over **2,000 clients** across **70+ markets**, helping them solve business challenges and redefine success[17](index=17&type=chunk) [Use of Non-GAAP Information](index=3&type=section&id=5.2%20Use%20of%20Non-GAAP%20Information) Concentrix utilizes various non-GAAP financial measures, such as constant currency revenue growth, non-GAAP operating income/margin, Adjusted EBITDA/margin, non-GAAP net income, free cash flow, adjusted free cash flow, and non-GAAP diluted EPS, to provide investors with a clearer understanding of its core operating performance and to facilitate period-to-period comparisons by excluding certain non-recurring or non-cash items - Non-GAAP measures are used to better assess and understand base operating performance, especially for period-to-period comparisons and future planning[19](index=19&type=chunk) - Key non-GAAP measures include constant currency revenue growth, non-GAAP operating income/margin, Adjusted EBITDA/margin, non-GAAP net income, free cash flow, adjusted free cash flow, and non-GAAP diluted EPS[18](index=18&type=chunk)[21](index=21&type=chunk) - Adjustments typically exclude acquisition-related and integration expenses, amortization of intangible assets, share-based compensation, certain debt costs, imputed interest, legal settlement costs, changes in acquisition contingent consideration, foreign currency gains/losses, and related tax effects[18](index=18&type=chunk)[21](index=21&type=chunk) [Safe Harbor Statement](index=4&type=section&id=5.3%20Safe%20Harbor%20Statement) This news release contains forward-looking statements regarding Concentrix's future financial condition, growth, profitability, and strategic initiatives, which are inherently uncertain and subject to substantial risks and uncertainties that could cause actual results to differ materially from expectations, and the company does not undertake to update them - Includes forward-looking statements about future financial condition, growth, profitability, operations, cash flows, and strategic initiatives[20](index=20&type=chunk)[22](index=22&type=chunk) - Statements are inherently uncertain and involve substantial risks and uncertainties, including general economic conditions, cyberattacks, new technologies (AI), regulatory changes, and acquisition integration[22](index=22&type=chunk) - The Company does not undertake a duty to update forward-looking statements[22](index=22&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=6.%20Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=6&type=section&id=6.1%20Consolidated%20Balance%20Sheets) As of May 31, 2025, Concentrix reported total assets of $12.396 billion, an increase from $11.991 billion at November 30, 2024, with total liabilities also increasing to $8.117 billion and total stockholders' equity growing to $4.279 billion Consolidated Balance Sheet (May 31, 2025 vs. November 30, 2024) | Metric | May 31, 2025 ($K) | November 30, 2024 ($K) | | :-------------------------- | :---------------- | :------------------- | | Cash and cash equivalents | 342,759 | 240,571 | | Accounts receivable, net | 2,061,412 | 1,926,737 | | Total current assets | 3,170,669 | 2,842,424 | | Goodwill | 5,131,900 | 4,986,967 | | Intangible assets, net | 2,156,035 | 2,286,940 | | Total assets | 12,396,060 | 11,991,438 | | Total current liabilities | 1,973,365 | 1,995,813 | | Long-term debt, net | 4,862,425 | 4,733,056 | | Total liabilities | 8,117,360 | 7,951,714 | | Total stockholders' equity | 4,278,700 | 4,039,724 | [Consolidated Statements of Operations](index=7&type=section&id=6.2%20Consolidated%20Statements%20of%20Operations) For the three months ended May 31, 2025, total revenue was $2.417 billion, with net income of $42.1 million, a 37% decrease year-over-year, while for the six-month period, total revenue was $4.790 billion, with net income of $112.4 million, a 6% decrease compared to the prior year Consolidated Statements of Operations (Three Months Ended May 31, 2025 vs. May 31, 2024) | Metric | May 31, 2025 ($K) | May 31, 2024 ($K) | % Change | | :-------------------------------- | :---------------- | :---------------- | :--------- | | Total revenue | 2,417,371 | 2,380,716 | 2 % | | Gross profit | 848,148 | 857,569 | (1)% | | Operating income | 148,345 | 150,170 | (1)% | | Income before income taxes | 51,721 | 87,128 | (41)% | | Net income | 42,093 | 66,834 | (37)% | | Diluted EPS | 0.63 | 0.98 | - | Consolidated Statements of Operations (Six Months Ended May 31, 2025 vs. May 31, 2024) | Metric | May 31, 2025 ($K) | May 31, 2024 ($K) | % Change | | :-------------------------------- | :---------------- | :---------------- | :--------- | | Total revenue | 4,789,593 | 4,783,464 | — % | | Gross profit | 1,704,047 | 1,714,098 | (1)% | | Operating income | 317,212 | 298,609 | 6 % | | Income before income taxes | 152,513 | 159,952 | (5)% | | Net income | 112,350 | 118,936 | (6)% | | Diluted EPS | 1.68 | 1.74 | - | [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=6.3%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP financial measures to their non-GAAP counterparts, including operating income, Adjusted EBITDA, net income, diluted EPS, and free cash flow, by adjusting for various non-recurring and non-cash items to offer a clearer view of underlying business performance [Operating Income and Adjusted EBITDA Reconciliation](index=8&type=section&id=6.3.1%20Operating%20Income%20and%20Adjusted%20EBITDA%20Reconciliation) Operating Income Reconciliation (Three Months Ended May 31, 2025) | Metric | Amount ($K) | | :-------------------------------- | :---------- | | Operating income (GAAP) | 148,345 | | Acquisition-related and integration expenses | 16,808 | | Step-up depreciation | 2,536 | | Amortization of intangibles | 109,158 | | Share-based compensation | 26,862 | | **Non-GAAP operating income** | **303,709** | Adjusted EBITDA Reconciliation (Three Months Ended May 31, 2025) | Metric | Amount ($K) | | :-------------------------------- | :---------- | | Net income | 42,093 | | Interest expense and finance charges, net | 75,406 | | Provision for income taxes | 9,628 | | Other expense (income), net | 21,218 | | Acquisition-related and integration expenses | 16,808 | | Step-up depreciation | 2,536 | | Amortization of intangibles | 109,158 | | Share-based compensation | 26,862 | | Depreciation (exclusive of step-up depreciation) | 53,615 | | **Adjusted EBITDA** | **357,324** | [Net Income and EPS Reconciliation](index=9&type=section&id=6.3.2%20Net%20Income%20and%20EPS%20Reconciliation) Non-GAAP Net Income Reconciliation (Three Months Ended May 31, 2025) | Metric | Amount ($K) | | :-------------------------------- | :---------- | | Net income (GAAP) | 42,093 | | Acquisition-related and integration expenses | 16,808 | | Step-up depreciation | 2,536 | | Debt costs | 1,102 | | Imputed interest related to sellers' note | 4,503 | | Legal settlement costs | 2,000 | | Change in acquisition contingent consideration | 8,691 | | Foreign currency losses (gains), net | 10,789 | | Amortization of intangibles | 109,158 | | Share-based compensation | 26,862 | | Income taxes related to the above | (44,931) | | **Non-GAAP net income** | **179,611** | Non-GAAP Diluted EPS Reconciliation (Three Months Ended May 31, 2025) | Metric | Amount ($) | | :-------------------------------- | :--------- | | Diluted EPS (GAAP) | 0.63 | | Acquisition-related and integration expenses | 0.25 | | Step-up depreciation | 0.04 | | Debt costs | 0.02 | | Imputed interest related to sellers' note | 0.07 | | Legal settlement costs | 0.03 | | Change in acquisition contingent consideration | 0.13 | | Foreign currency losses (gains), net | 0.16 | | Amortization of intangibles | 1.64 | | Share-based compensation | 0.40 | | Income taxes related to the above | (0.67) | | **Non-GAAP diluted EPS** | **2.70** | [Free Cash Flow Reconciliation](index=11&type=section&id=6.3.3%20Free%20Cash%20Flow%20Reconciliation) Free Cash Flow Reconciliation (Three Months Ended May 31, 2025) | Metric | Amount ($K) | | :-------------------------------- | :---------- | | Net cash provided by operating activities | 236,536 | | Purchases of property and equipment | (55,792) | | **Free cash flow** | **180,744** | | Change in outstanding factoring balances | 19,542 | | **Adjusted free cash flow** | **200,286** |

Core Insights - Concentrix Corporation reported financial results for the fiscal second quarter ended May 31, 2025, showing a revenue increase of 1.5% year-on-year, despite a decline in net income and operating income [1][4][7]. Financial Performance - Revenue for the second quarter was $2,417.4 million, up from $2,380.7 million in the same quarter last year, reflecting a 1.5% increase [2][7]. - Operating income decreased to $148.3 million, or 6.1% of revenue, compared to $150.2 million, or 6.3% of revenue, in the prior year [2][7]. - Non-GAAP operating income was $303.7 million, down 5.4% from $321.1 million, with a margin of 12.6% compared to 13.5% in the previous year [2][7]. - Net income fell by 37% to $42.1 million from $66.8 million year-on-year [2][7]. - Non-GAAP net income was $179.6 million, a slight decrease of 1.9% from $183.1 million [2][7]. - Adjusted EBITDA was $357.3 million, down 5.9% from $379.6 million, with an adjusted EBITDA margin of 14.8% compared to 15.9% [2][7]. Shareholder Returns - The company paid a quarterly dividend of $0.33275 per share on May 6, 2025, and declared another dividend of the same amount payable on August 5, 2025 [5][6]. - Concentrix repurchased approximately 920,000 common shares for $45 million at an average cost of $49.09 per share, with a remaining share repurchase authorization of $537.3 million [6][8]. Business Outlook - The company exceeded revenue guidance for the quarter and raised its full-year growth outlook, expecting to generate $625 million to $650 million in adjusted free cash flow for fiscal 2025 [6][12]. - Concentrix anticipates returning over $240 million to shareholders through share repurchases and dividends in fiscal 2025 [6][12]. - The company expects third-quarter revenue to be between $2.445 billion and $2.470 billion, with constant currency growth of 1.0% to 2.0% [16].

Earnings Report - Concentrix Corporation is set to release its second-quarter earnings results on June 26, with expected earnings of $2.75 per share, an increase from $2.69 per share in the same period last year [1] - The company projects quarterly revenue to remain stable at $2.38 billion, unchanged from the previous year [1] Previous Performance - In the previous quarter reported on March 26, Concentrix achieved earnings of $2.79 per share, surpassing the analyst consensus estimate of $2.58 [2] - Quarterly revenue for that period was $2.37 billion, exceeding the analyst consensus estimate of $2.36 billion, although it was a slight decline from $2.4 billion in the same quarter last year [2] - Following the earnings report, Concentrix shares increased by 0.2%, closing at $54.17 [2] Analyst Ratings - Canaccord Genuity analyst Joseph Vafi maintained a Buy rating on Concentrix but reduced the price target from $100 to $80 [5] - Baird analyst David Koning initiated coverage with an Outperform rating and set a price target of $70 [5]

Core Insights - Concentrix Corporation has been awarded the "Intelligent Personal Assistant of the Year" at the 2025 AI Breakthrough Awards for its iX Hello AI-powered application, highlighting its innovative contributions to the AI market [1][3] Company Overview - Concentrix Corporation is a Fortune 500® company that provides technology and services solutions, helping over 2,000 clients across various industries to address their business challenges [7] - The company focuses on delivering integrated, end-to-end solutions that enhance enterprise efficiency and customer engagement [7] Product Features - The iX Hello application enables organizations to create customizable, GenAI-powered virtual assistants that are smart, multimodal, and intuitive, tailored for various needs such as customer and employee interactions [2] - It offers no-code setup and can be deployed across enterprises within days, integrating seamlessly with systems like Salesforce and Microsoft, and supports hybrid cloud environments [2] Industry Recognition - The AI Breakthrough Awards program received over 5,000 nominations from more than 20 countries, emphasizing the rapid growth and significance of AI technology in the 21st century [3][4] - The award recognizes the most impactful technologies and innovations in AI, covering various categories including Generative AI, Natural Language Processing, and more [3][5]

Core Insights - Concentrix Corporation (NASDAQ: CNXC) is identified as an undervalued tech company with strong fundamentals and signs of improvement [1] - The company generates real cash and has recovering margins, utilizing AI operationally across over 1,000 customers in various sectors including banking, insurance, and technology [1] - Following the merger with Webhelp, Concentrix's financial profile has enhanced significantly [1] Financial Performance - Concentrix demonstrates solid cash generation capabilities and improving profit margins [1] - The operational use of AI across a diverse customer base indicates a strategic advantage in enhancing service delivery and efficiency [1] Strategic Positioning - The merger with Webhelp has positioned Concentrix favorably within the tech sector, potentially leading to increased market share and operational synergies [1] - The focus on AI integration suggests a commitment to innovation and adapting to market demands [1]