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Financial Data and Key Metrics Changes - The company reported revenue of approximately $2.48 billion, an increase of 2.6% year on year on a constant currency basis and 4% year on year as reported [11][12] - Non-GAAP operating income was $305 million, which was below the guidance range due to excess capacity and investments in cybersecurity [12][15] - Adjusted EBITDA for the quarter was $359 million, with a margin of 14.5% [15] - Non-GAAP diluted earnings per share was $2.78, $0.02 below guidance, while GAAP net income was $88 million [15] - Adjusted free cash flow increased to $179 million, up about $44 million year on year [15][19] Business Line Data and Key Metrics Changes - Revenue from banking, financial services, and insurance clients grew 8% year on year, while media and communications clients grew 7% year on year [12] - Retail, travel, and e-commerce clients saw a 3% increase, primarily driven by travel [12] - Technology and consumer electronics, as well as healthcare verticals, were essentially flat [12] Market Data and Key Metrics Changes - The company is experiencing strong demand for integrated offerings and adjacent solutions, particularly in banking and financial services [12] - The demand for AI technology platforms is increasing, with nearly 40% of new wins incorporating AI solutions [7][9] Company Strategy and Development Direction - The company aims to combine AI, customer experience (CX), and IT services to create integrated solutions that differentiate it in the market [4][9] - The strategy focuses on capturing growth opportunities in the evolving market landscape, particularly through the IX AI technology suite [6][9] - The company is committed to returning over $240 million to shareholders through share repurchases and dividends [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in modest sequential margin improvement over the next few quarters despite current margin pressures [5][20] - The overall demand environment remains positive, with expectations for revenue growth in Q4 and fiscal year 2025 [17][19] - The company anticipates continued growth in free cash flow and plans to prioritize debt repayment while supporting dividends and share repurchase programs [19][64] Other Important Information - The Board has authorized an increase in the quarterly dividend to $0.36 per share [16] - The company reduced off-balance sheet factored accounts receivable to approximately $127 million [16] Q&A Session Summary Question: Can you unpack the margin guide down and the impact of excess capacity? - Management indicated that excess capacity was primarily due to tariff-impacted clients and that normalization is expected over multiple quarters [22][25] Question: How is the IX suite ramping and what is the demand? - Management reported that 40% of new wins include the IX technology, with a mix of discrete billing and bundled offerings [28][29] Question: What is the outlook for margins and the impact of one-off items? - Management confirmed that the current margin pressures are one-off items and expects to return to historical margins as new deals ramp up [36][38] Question: Is the sales pipeline healthy and broad-based? - Management expressed satisfaction with the sales pipeline, noting broad-based momentum across strategic verticals and regions [48][49] Question: Can you discuss the decision criteria for transformational investments? - Management emphasized long-term relationships with clients and the expectation of reciprocation in terms of volume and opportunities from transformational investments [52][54]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $2.48 billion, an increase of 2.6% year on year on a constant currency basis and 4% year on year as reported [11] - Non-GAAP operating income was $305 million, which was below the guidance range due to excess capacity and investments in cybersecurity [12][15] - Adjusted EBITDA for the quarter was $359 million, with a margin of 14.5% [15] - Non-GAAP diluted earnings per share was $2.78, $0.02 below the guidance range [15] - Adjusted free cash flow was $179 million, an increase of about $44 million year on year [15] Business Line Data and Key Metrics Changes - Revenue from banking, financial services, and insurance clients grew 8% year on year [12] - Media and communications clients grew 7% year on year, driven largely by clients outside of the U.S. [12] - Revenue from retail, travel, and e-commerce clients grew 3%, with travel being a strong vertical [12] - Technology and consumer electronics, as well as healthcare verticals, were essentially flat [12] Market Data and Key Metrics Changes - The company is gaining market share and securing new wins by integrating AI, CX, and IT services [4] - Almost 40% of new wins this year included AI technology platforms as part of the solution [7] - A study from MIT indicated that externally sourced AI projects with strategic partners succeeded about 67% of the time, which is higher than internally built projects [8] Company Strategy and Development Direction - The company aims to establish itself at the forefront of industry changes by combining practical AI with human intelligence [6] - The IX AI technology suite is positioned to address clients' needs for both full and partial automation [7] - The strategy is focused on capturing growth opportunities in the AI space while maintaining strong cash flow [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in modest sequential quarterly margin improvement over the next few quarters [5] - The overall demand environment remains positive, with expectations for revenue growth as the company enters the final months of 2025 [19] - The company is optimistic about 2026 and plans to provide detailed guidance in the next call [20] Other Important Information - The Board has authorized an increase in the quarterly dividend to $0.36 per share [16] - The company returned approximately $64 million to shareholders in the quarter, including share repurchases and dividends [16] - The company plans to prioritize debt repayment while supporting dividends and share repurchase programs [19] Q&A Session Summary Question: Can you unpack the margin guide down and the impact of excess capacity? - Management indicated that excess capacity was primarily due to tariff-impacted clients and that normalization is expected to take multiple quarters [22][25] Question: How is the IX suite ramping and what does the pipeline look like? - Management reported that 40% of new wins have integrated technology, with a mix of discrete billing and bundled offerings [28][29] Question: What are the expectations for margins moving forward? - Management stated that current margin pressures are one-off items and that they expect to return to historical margins as new deals ramp up [36][38] Question: Is the sales pipeline healthy and broad-based? - Management confirmed a healthy pipeline across strategic verticals and regions, with good momentum in major deals [48][49] Question: Can you discuss the decision criteria for transformational investments? - Management emphasized long-term relationships with clients and the expectation of reciprocation in terms of volume and opportunities [52][54] Question: What is the outlook for free cash flow and capital returns? - Management remains optimistic about increasing free cash flow in 2026 and plans to balance capital allocation between debt repayment, dividends, and share repurchases [60][63]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $2.48 billion, an increase of 2.6% year-on-year on a constant currency basis and 4% year-on-year as reported [11][12] - Non-GAAP operating income was $305 million, which was below the guidance range due to excess capacity and investments in cybersecurity [12][15] - Adjusted EBITDA for the quarter was $359 million, with a margin of 14.5% [15] - Non-GAAP diluted earnings per share was $2.78, $0.02 below guidance, while GAAP net income was $88 million [15] - Adjusted free cash flow increased by about $44 million year-on-year to $179 million [15][19] Business Line Data and Key Metrics Changes - Revenue from banking, financial services, and insurance clients grew 8% year-on-year, while media and communications clients grew 7% year-on-year [12] - Retail, travel, and e-commerce clients saw a 3% growth, primarily driven by travel [12] - Technology and consumer electronics, as well as healthcare verticals, were essentially flat [12] Market Data and Key Metrics Changes - The company is gaining market share and securing new wins by integrating AI, CX, and IT services [4][9] - Almost 40% of new wins this year included AI technology platforms as part of the solution [7] - A study indicated that externally sourced AI projects have a success rate of about 67%, which is higher than internally built projects [8] Company Strategy and Development Direction - The company aims to establish itself as a leader in solutions that combine practical AI and human intelligence at a global scale [6] - The IX AI technology suite is expected to be accretive as it ramps up, providing a competitive differentiation [7][9] - The strategy focuses on capturing growth opportunities in the current environment while improving margins [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment and expects modest sequential margin improvement in the coming quarters [20] - The company is focused on long-term relationships with clients and believes that investments in transformation will yield long-term benefits [53][54] - The outlook for Q4 revenue is projected to be between $2.525 billion and $2.550 billion, with full-year revenue guidance increased to 1.75% - 2% constant currency growth [17][18] Other Important Information - The Board has authorized an increase in the quarterly dividend to $0.36 per share [16] - The company plans to prioritize debt repayment while supporting dividends and share repurchase programs [19][63] Q&A Session Summary Question: Margin guidance down due to excess capacity and transformation programs - Management acknowledged that excess capacity and transformation investments impacted margins, but they expect normalization over the next few quarters [22][24][26] Question: IX suite ramping and pipeline - Management reported that 40% of new wins include the IX technology, with a mix of discrete billing and bundled offerings [28][30] Question: Future margin expectations - Management indicated that current margin pressures are one-off items and expect to return to historical margins as new deals ramp up [36][39] Question: Consolidation situation in the industry - Management believes consolidation will continue, driven by clients seeking fewer partners and deeper relationships [46][47] Question: Risk management and investment criteria - Management explained that investments are made with long-term relationships in mind, expecting reciprocation in volume and opportunities [52][54] Question: Free cash flow guidance and capital returns - Management remains optimistic about free cash flow growth in 2026 and plans to balance capital allocation between debt repayment and shareholder returns [60][63]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $2.48 billion for Q3 2025, representing a year-on-year increase of 2.6% on a constant currency basis and 4% as reported [10][11] - Non-GAAP operating income was $305 million, which was below the guidance range due to excess capacity and investments in cybersecurity [12][13] - Adjusted EBITDA for the quarter was $359 million, with a margin of 14.5% [13] - Non-GAAP diluted earnings per share was $2.78, slightly below the guidance range [13] - Adjusted free cash flow increased to $179 million, up about $44 million year on year [14] Business Line Data and Key Metrics Changes - Revenue from banking, financial services, and insurance clients grew 8% year on year, while media and communications clients grew 7% [11] - Retail, travel, and e-commerce clients saw a 3% increase, primarily driven by travel [11] - Technology and consumer electronics, as well as healthcare verticals, remained essentially flat [11] Market Data and Key Metrics Changes - The company is experiencing strong demand for integrated offerings and adjacent solutions, particularly in the banking and financial services sector [10][11] - The demand for AI technology platforms is increasing, with nearly 40% of new wins this year including AI solutions [6][8] Company Strategy and Development Direction - The company is focused on combining AI, customer experience (CX), and IT services to create integrated solutions that differentiate it in the market [4][8] - The IX AI technology suite is expected to ramp up and become accretive as it gains traction [6][8] - The company aims to capture growth opportunities in the evolving market landscape, positioning itself as a trusted partner for clients [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving modest sequential margin improvement in the coming quarters despite current margin pressures [5][19] - The overall demand environment remains positive, with expectations for continued revenue growth and cash flow generation [18][19] - Management anticipates that the consolidation trend in the industry will continue, driven by clients seeking fewer partners and deeper relationships [43] Other Important Information - The company returned approximately $64 million to shareholders in Q3, including $42 million in share repurchases and $22 million in dividends [15] - The Board has authorized an increase in the quarterly dividend to $0.36 per share [15] - The company expects full-year adjusted free cash flow to be between $585 million to $610 million, reflecting a year-on-year increase [18] Q&A Session Summary Question: Can you unpack the margin guide down and the impact of excess capacity? - Management indicated that excess capacity from tariff-impacted clients was a primary driver of the margin guide down, with expectations for normalization over multiple quarters [21][23] Question: How is the IX suite performing in terms of pipeline and win rates? - Management reported that 40% of new wins include the IX technology, with a mix of discrete billing and bundled offerings [27][29] Question: What are the criteria for investments in transformational items? - Investments are made with long-term relationships in mind, focusing on clients who are expected to reciprocate with increased volume and opportunities [49][50] Question: What is the outlook for free cash flow and capital returns? - Management remains optimistic about increasing free cash flow in 2026, prioritizing debt repayment while supporting dividends and share repurchase programs [58][59]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Concentrix Corp. reported mixed third-quarter earnings, with a decline in adjusted EPS guidance for fiscal 2025, leading to a significant drop in stock price. Financial Performance - Quarterly earnings were reported at $2.78 per share, missing the Street estimate of $2.86 [1] - Quarterly revenue was $2.48 billion, surpassing the analyst consensus estimate of $2.45 billion [2] Management Commentary - CEO Chris Caldwell highlighted the company's growth momentum and strong position in providing business transformation solutions that integrate CX expertise, AI, and IT services globally [3] Future Outlook - For the fourth quarter, Concentrix expects adjusted EPS between $2.85 and $2.96, below the $3.32 analyst estimate, and revenue between $2.52 billion and $2.55 billion, aligning with the $2.52 billion analyst estimate [3] - The fiscal 2025 adjusted EPS guidance was lowered to a range of $11.11 to $11.23, compared to the $11.69 analyst estimate, while the revenue outlook was raised to between $9.79 billion and $9.82 billion, above the $9.77 billion estimate [4] Stock Performance - Following the earnings report, Concentrix stock fell by 22.44%, trading at $42.48 in extended trading [4]

[Third Quarter Fiscal 2025 Results Overview](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Results%20Overview) Concentrix reported strong Q3 FY25 results, with revenue exceeding guidance and a significant increase in GAAP net income and EPS, despite a slight decline in non-GAAP operating income and adjusted EBITDA. The company also raised its full-year growth outlook [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Concentrix reported strong Q3 FY25 results, with revenue exceeding guidance and a significant increase in GAAP net income and EPS, despite a slight decline in non-GAAP operating income and adjusted EBITDA. The company also raised its full-year growth outlook Key Financial Metrics | Metric | August 31, 2025 ($M) | August 31, 2024 ($M) | Change (%) | Change (bps) | | :--------------------------------- | :-------------------- | :-------------------- | :--------- | :----------- | | Revenue | 2,483.3 | 2,387.4 | 4.0 % | | | Operating income | 147.0 | 153.2 | (4.0)% | | | Non-GAAP operating income | 305.1 | 331.0 | (7.8)% | | | Operating margin | 5.9 % | 6.4 % | | -50 bps | | Non-GAAP operating margin | 12.3 % | 13.9 % | | -160 bps | | Net income | 88.1 | 16.6 | 430.7 % | | | Non-GAAP net income | 183.2 | 192.2 | (4.7)% | | | Adjusted EBITDA | 359.2 | 388.1 | (7.4)% | | | Adjusted EBITDA margin | 14.5 % | 16.3 % | | -180 bps | | Diluted EPS | 1.34 | 0.25 | 436.0 % | | | Non-GAAP diluted EPS | 2.78 | 2.87 | (3.1)% | | - Delivers revenue above guidance for Q3 and raises full year growth outlook[5](index=5&type=chunk) - Sees strong demand environment for integrated solutions[5](index=5&type=chunk) - Cash flow provided by operations was **$224.8 million** in the quarter. Adjusted free cash flow was **$178.8 million** in the quarter[6](index=6&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) The CEO highlighted Concentrix's strong growth momentum, attributing it to its position as a trusted provider of business transformation solutions combining CX expertise, AI, and IT services. The strategy is aligned with client needs, driving market share gains and long-term value - Concentrix's ongoing growth momentum demonstrates its strong position as a trusted provider of business transformation solutions that combine CX expertise, AI and IT services globally[7](index=7&type=chunk) - The company's strategy is aligned with client needs, helping them drive positive business outcomes, gain market share, and expand offerings to drive long-term value for clients and shareholders[7](index=7&type=chunk) [Capital Allocation](index=2&type=section&id=Capital%20Allocation) Concentrix outlines its capital allocation strategy, including increased quarterly dividends and continued share repurchases, demonstrating a commitment to shareholder returns [Quarterly Dividend](index=2&type=section&id=Quarterly%20Dividend) Concentrix increased its quarterly dividend, demonstrating a commitment to returning value to shareholders - The Company paid a **$0.33275 per share** quarterly dividend on August 5, 2025[12](index=12&type=chunk) - The Board of Directors declared a quarterly dividend of **$0.36 per share** payable on November 4, 2025[12](index=12&type=chunk) [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) The company continued its share repurchase program in Q3, reducing outstanding shares and indicating further authorization for future repurchases - The Company repurchased approximately **800,000 common shares** in the third quarter at a cost of **$42.2 million**, at an average cost of **$53.07 per share**[12](index=12&type=chunk) - As of August 31, 2025, the Company's remaining share repurchase authorization was **$495.1 million**[12](index=12&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Concentrix provides financial guidance for Q4 and full-year FY25, including revenue, EPS, and adjusted free cash flow expectations, while noting limitations in non-GAAP reconciliations [Fourth Quarter Fiscal 2025 Expectations](index=2&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Expectations) Concentrix provided guidance for Q4 FY25, projecting reported revenue between $2.525 billion and $2.550 billion, with constant currency revenue growth of 1.5% to 2.5%. Non-GAAP EPS is expected to be $2.85 to $2.96 Q4 FY25 Expectations | Metric | Low ($M) | High ($M) | | :--------------------------------- | :------- | :-------- | | Reported Revenue | 2,525 | 2,550 | | Constant Currency Revenue Growth | 1.5 % | 2.5 % | | Operating Income | 163 | 173 | | Non-GAAP Operating Income | 320 | 330 | | Non-GAAP EPS | 2.85 | 2.96 | | Effective Tax Rate | ~25% | ~25% | [Full Year Fiscal 2025 Expectations](index=2&type=section&id=Full%20Year%20Fiscal%202025%20Expectations) For the full fiscal year 2025, the company anticipates reported revenue of $9.798 billion to $9.823 billion, implying constant currency revenue growth of 1.75% to 2.0%. Non-GAAP EPS is projected to be $11.11 to $11.23 Full Year FY25 Expectations | Metric | Low ($M) | High ($M) | | :--------------------------------- | :------- | :-------- | | Reported Revenue | 9,798 | 9,823 | | Constant Currency Revenue Growth | 1.75 % | 2.0 % | | Operating Income | 627 | 637 | | Non-GAAP Operating Income | 1,250 | 1,260 | | Non-GAAP EPS | 11.11 | 11.23 | | Effective Tax Rate | ~24% | ~24% | [Adjusted Free Cash Flow and Shareholder Returns Outlook](index=2&type=section&id=Adjusted%20Free%20Cash%20Flow%20and%20Shareholder%20Returns%20Outlook) Concentrix expects to generate significant adjusted free cash flow and return a substantial amount to shareholders in fiscal year 2025 - The Company expects to generate approximately **$585 million to $610 million** of adjusted free cash flow in fiscal year 2025[11](index=11&type=chunk) - The Company also expects to return approximately **$240 million** to shareholders in fiscal 2025 through share repurchases and dividends[11](index=11&type=chunk) [Non-GAAP Outlook Reconciliation Disclaimer](index=2&type=section&id=Non-GAAP%20Outlook%20Reconciliation%20Disclaimer) The company notes that a quantitative reconciliation of non-GAAP EPS and adjusted free cash flow outlook to GAAP measures cannot be provided without unreasonable efforts due to the inability to forecast certain volatile items - A quantitative reconciliation of non-GAAP EPS outlook to GAAP cannot be provided without unreasonable efforts due to the inability to forecast future changes in acquisition contingent consideration and foreign currency losses (gains), net[12](index=12&type=chunk)[14](index=14&type=chunk) - A quantitative reconciliation of adjusted free cash flow outlook to GAAP cannot be provided without unreasonable efforts due to uncertainty related to future changes in the Company's factoring program[15](index=15&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) This section provides details on the company's Q3 FY25 conference call and an overview of Concentrix Corporation as a global technology and services leader [Conference Call and Webcast](index=3&type=section&id=Conference%20Call%20and%20Webcast) Concentrix hosted a conference call and webcast for investors to discuss its Q3 FY25 results, with a replay available online - The Company hosted a conference call for investors to review its third quarter fiscal 2025 results on September 25, 2025[16](index=16&type=chunk) - A live webcast and replay are available in the Investor Relations section of the Company's website[16](index=16&type=chunk) [About Concentrix](index=3&type=section&id=About%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, focusing on business transformation and client experience - Concentrix Corporation (NASDAQ: CNXC) is a **Fortune 500®** global technology and services leader[17](index=17&type=chunk) - The company designs, builds, and runs fully integrated, end-to-end solutions for over **2,000 clients** across **70+ markets**[17](index=17&type=chunk) - Concentrix focuses on transforming how companies connect, interact, and grow, delivering outcomes across every major vertical[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Concentrix defines and explains its use of non-GAAP financial measures to provide a clearer view of core operating performance by excluding certain non-operational items [Definition and Rationale](index=3&type=section&id=Definition%20and%20Rationale) Concentrix uses various non-GAAP financial measures, such as constant currency revenue growth, non-GAAP operating income, adjusted EBITDA, non-GAAP net income, free cash flow, and non-GAAP diluted EPS, to provide a clearer view of its core operating performance by excluding certain non-recurring or non-operational items - Concentrix discloses non-GAAP financial information, including constant currency revenue growth, non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, free cash flow, adjusted free cash flow, and non-GAAP diluted EPS[18](index=18&type=chunk)[19](index=19&type=chunk)[22](index=22&type=chunk) - These non-GAAP measures are used to better assess and understand base operating performance, facilitate period-to-period comparisons, and for management's operational goals and compensation purposes[20](index=20&type=chunk) - Non-GAAP measures exclude items like acquisition-related expenses, amortization of intangibles, and share-based compensation, which do not directly relate to ordinary business operations or reflect underlying business performance[18](index=18&type=chunk)[20](index=20&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) The Safe Harbor Statement clarifies that the news release contains forward-looking statements subject to inherent uncertainties and substantial risks, which could cause actual results to differ materially from expectations. It lists various risk factors, including economic conditions, cybersecurity, new technologies, and regulatory changes - The news release includes forward-looking statements under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934[21](index=21&type=chunk) - These statements are inherently uncertain and involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied[23](index=23&type=chunk) - Risks include general economic and geopolitical conditions, cyberattacks, uncertainty from new and emerging technologies (including generative AI), inability to protect information, and changes in law or regulations[23](index=23&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents Concentrix's consolidated balance sheets and statements of operations, detailing assets, liabilities, equity, revenue, and net income for the reported periods [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of August 31, 2025, Concentrix reported total assets of $12.41 billion, an increase from November 30, 2024. Key changes include higher cash and cash equivalents, accounts receivable, and goodwill, alongside an increase in total liabilities and stockholders' equity Consolidated Balance Sheet Data | Metric | August 31, 2025 ($M) | November 30, 2024 ($M) | | :-------------------------- | :-------------------- | :-------------------- | | Total assets | 12,410,099 | 11,991,438 | | Cash and cash equivalents | 350,259 | 240,571 | | Accounts receivable, net | 2,051,920 | 1,926,737 | | Goodwill | 5,191,565 | 4,986,967 | | Intangible assets, net | 2,079,278 | 2,286,940 | | Total liabilities | 8,065,970 | 7,951,714 | | Total stockholders' equity | 4,344,129 | 4,039,724 | [Consolidated Statements of Operations](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended August 31, 2025, Concentrix reported a 4% increase in total revenue to $2.48 billion, with significant growth in Banking, Financial Services & Insurance (9%) and Communications & Media (8%). Net income surged by 430% to $88.1 million, and diluted EPS increased from $0.25 to $1.34 year-over-year Consolidated Statements of Operations Data | Metric | Three Months Ended Aug 31, 2025 ($M) | Three Months Ended Aug 31, 2024 ($M) | % Change | | :--------------------------------- | :---------------------------------- | :---------------------------------- | :------- | | Total Revenue | 2,483,253 | 2,387,412 | 4 % | | Cost of revenue | 1,628,246 | 1,523,220 | 7 % | | Gross profit | 855,007 | 864,192 | (1)% | | Operating income | 146,984 | 153,242 | (4)% | | Net income | 88,110 | 16,631 | 430 % | | Diluted EPS | 1.34 | 0.25 | 436 % | | Weighted-average common shares outstanding (Diluted) | 62,702 | 64,749 | | Revenue by Segment | Revenue Segment | Three Months Ended Aug 31, 2025 ($M) | Three Months Ended Aug 31, 2024 ($M) | % Change | | :--------------------------------- | :---------------------------------- | :---------------------------------- | :------- | | Technology and consumer electronics | 670,573 | 664,829 | 1 % | | Retail, travel and e-commerce | 622,822 | 593,736 | 5 % | | Communications and media | 411,229 | 380,508 | 8 % | | Banking, financial services and insurance | 384,449 | 352,471 | 9 % | | Healthcare | 174,106 | 172,400 | 1 % | | Other | 220,074 | 223,468 | (2)% | [GAAP to Non-GAAP Reconciliations](index=8&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations from GAAP to non-GAAP financial measures, including revenue growth, operating income, EBITDA, net income, EPS, and free cash flow, along with explanatory notes [Revenue Growth Reconciliation](index=8&type=section&id=Revenue%20Growth%20Reconciliation) For Q3 FY25, reported revenue growth was 4.0%, which translates to 2.6% on a constant currency basis after accounting for a 1.4% negative foreign exchange impact Revenue Growth Reconciliation | Metric | Three Months Ended Aug 31, 2025 | | :--------------------------------- | :------------------------------ | | Revenue growth, as reported under U.S. GAAP | 4.0 % | | Foreign exchange impact | (1.4)% | | Constant currency revenue growth | 2.6 % | [Operating Income Reconciliation](index=8&type=section&id=Operating%20Income%20Reconciliation) Non-GAAP operating income for Q3 FY25 was $305.1 million, adjusted from GAAP operating income of $147.0 million by excluding acquisition-related and integration expenses, step-up depreciation, amortization of intangibles, and share-based compensation Operating Income Reconciliation | Metric | Three Months Ended Aug 31, 2025 ($M) | Three Months Ended Aug 31, 2024 ($M) | | :--------------------------------- | :---------------------------------- | :---------------------------------- | | Operating income | 146,984 | 153,242 | | Acquisition-related and integration expenses | 18,619 | 36,055 | | Step-up depreciation | 2,704 | 2,449 | | Amortization of intangibles | 111,779 | 116,556 | | Share-based compensation | 25,042 | 22,663 | | Non-GAAP operating income | 305,128 | 330,965 | [Adjusted EBITDA Reconciliation](index=8&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q3 FY25 was $359.2 million, a decrease of 7.4% from the prior year, after adding back interest, taxes, depreciation, and non-GAAP adjustments to net income Adjusted EBITDA Reconciliation | Metric | Three Months Ended Aug 31, 2025 ($M) | Three Months Ended Aug 31, 2024 ($M) | | :--------------------------------- | :---------------------------------- | :---------------------------------- | | Net income | 88,110 | 16,631 | | Interest expense and finance charges, net | 72,014 | 80,815 | | Provision for income taxes | 23,334 | 9,785 | | Other expense (income), net | (36,474) | 46,011 | | Acquisition-related and integration expenses | 18,619 | 36,055 | | Step-up depreciation | 2,704 | 2,449 | | Amortization of intangibles | 111,779 | 116,556 | | Share-based compensation | 25,042 | 22,663 | | Depreciation (exclusive of step-up depreciation) | 54,074 | 57,115 | | Adjusted EBITDA | 359,202 | 388,080 | [Operating and EBITDA Margins](index=8&type=section&id=Operating%20and%20EBITDA%20Margins) In Q3 FY25, GAAP operating margin was 5.9% (down 50 bps YoY), non-GAAP operating margin was 12.3% (down 160 bps YoY), and Adjusted EBITDA margin was 14.5% (down 180 bps YoY) Operating and EBITDA Margins | Metric | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | | Operating margin | 5.9 % | 6.4 % | | Non-GAAP operating margin | 12.3 % | 13.9 % | | Adjusted EBITDA margin | 14.5 % | 16.3 % | [Net Income Reconciliation](index=9&type=section&id=Net%20Income%20Reconciliation) Non-GAAP net income for Q3 FY25 was $183.2 million, a 4.7% decrease year-over-year, after adjusting GAAP net income for various non-recurring items and their tax effects Net Income Reconciliation | Metric | Three Months Ended Aug 31, 2025 ($M) | Three Months Ended Aug 31, 2024 ($M) | | :--------------------------------- | :---------------------------------- | :---------------------------------- | | Net income | 88,110 | 16,631 | | Acquisition-related and integration expenses | 18,619 | 36,055 | | Imputed interest related to sellers' note | 4,739 | 4,259 | | Foreign currency losses (gains), net | (35,531) | 33,435 | | Amortization of intangibles | 111,779 | 116,556 | | Share-based compensation | 25,042 | 22,663 | | Income taxes related to the above | (30,535) | (55,753) | | Non-GAAP net income | 183,231 | 192,158 | [Non-GAAP Net Income Attributable to Common Stockholders](index=10&type=section&id=Non-GAAP%20Net%20Income%20Attributable%20to%20Common%20Stockholders) Non-GAAP net income attributable to common stockholders for Q3 FY25 was $174.5 million, a decrease from $185.7 million in the prior year, reflecting adjustments and allocation to common stockholders Non-GAAP Net Income Attributable to Common Stockholders | Metric | Three Months Ended Aug 31, 2025 ($M) | Three Months Ended Aug 31, 2024 ($M) | | :--------------------------------- | :---------------------------------- | :---------------------------------- | | Net income attributable to common stockholders | 83,896 | 16,073 | | Acquisition-related and integration expenses allocated to common stockholders | 17,729 | 34,845 | | Amortization of intangibles allocated to common stockholders | 106,433 | 112,645 | | Share-based compensation allocated to common stockholders | 23,844 | 21,903 | | Income taxes related to the above allocated to common stockholders | (29,075) | (53,882) | | Non-GAAP net income attributable to common stockholders | 174,468 | 185,711 | [Diluted EPS Reconciliation](index=11&type=section&id=Diluted%20EPS%20Reconciliation) Non-GAAP diluted EPS for Q3 FY25 was $2.78, a slight decrease from $2.87 in the prior year, after adjusting GAAP diluted EPS for various non-GAAP items Diluted EPS Reconciliation | Metric | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | | Diluted earnings per common share ("EPS") | 1.34 | 0.25 | | Acquisition-related and integration expenses | 0.28 | 0.54 | | Amortization of intangibles | 1.70 | 1.74 | | Share-based compensation | 0.38 | 0.34 | | Income taxes related to the above | (0.46) | (0.84) | | Non-GAAP diluted EPS | 2.78 | 2.87 | [Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow%20Reconciliation) Adjusted free cash flow for Q3 FY25 was $178.8 million, an increase from $135.3 million in the prior year, driven by higher cash flow from operations and changes in factoring balances Free Cash Flow Reconciliation | Metric | Three Months Ended Aug 31, 2025 ($M) | Three Months Ended Aug 31, 2024 ($M) | | :--------------------------------- | :---------------------------------- | :---------------------------------- | | Net cash provided by operating activities | 224,803 | 191,622 | | Purchases of property and equipment | (65,054) | (62,746) | | Free cash flow | 159,749 | 128,876 | | Change in outstanding factoring balances | 19,056 | 6,374 | | Adjusted free cash flow | 178,805 | 135,250 | [Forecasted Non-GAAP Reconciliations](index=11&type=section&id=Forecasted%20Non-GAAP%20Reconciliations) The company provided forecasted non-GAAP reconciliations for Q4 and full-year FY25, detailing expected adjustments for operating income, including amortization of intangibles, share-based compensation, and acquisition-related expenses Forecasted Non-GAAP Reconciliations | Metric | Q4 FY25 Low ($M) | Q4 FY25 High ($M) | Full Year FY25 Low ($M) | Full Year FY25 High ($M) | | :--------------------------------- | :--------------- | :---------------- | :---------------------- | :----------------------- | | Operating income | 162,500 | 172,500 | 626,696 | 636,696 | | Amortization of intangibles | 105,000 | 105,000 | 431,556 | 431,556 | | Share-based compensation | 35,000 | 35,000 | 113,504 | 113,504 | | Acquisition-related and integration expenses | 15,000 | 15,000 | 68,451 | 68,451 | | Step-up depreciation | 2,500 | 2,500 | 10,116 | 10,116 | | Non-GAAP operating income | 320,000 | 330,000 | 1,250,323 | 1,260,323 | [Notes to Reconciliations](index=12&type=section&id=Notes%20to%20Reconciliations) This section provides detailed explanations for the various adjustments made in the GAAP to non-GAAP reconciliations, including acquisition-related and integration expenses, debt costs, legal settlement costs, foreign currency impacts, and the calculation of tax effects and diluted EPS - Acquisition-related and integration expenses primarily include costs associated with the Company's combination with Webhelp, such as severance, facilities consolidation, and IT system consolidation[36](index=36&type=chunk) - Foreign currency losses (gains), net, included in other expense (income), net, consist of gains and losses from revaluation and settlement of foreign currency transactions and derivative contracts not qualifying for hedge accounting[36](index=36&type=chunk) - Diluted EPS is calculated using the two-class method, allocating earnings proportionally among common stock and participating securities, with restricted stock awards and units considered participating securities[36](index=36&type=chunk)

Core Insights - Concentrix Corporation reported financial results for the fiscal third quarter ended August 31, 2025, showing a revenue increase of 4.0% year-on-year, reaching $2,483.3 million, while net income surged by 430.7% to $88.1 million [2][7][27]. Financial Performance - Revenue for Q3 2025 was $2,483.3 million, up from $2,387.4 million in Q3 2024, reflecting a 4.0% increase [2][7]. - Operating income decreased to $147.0 million, or 5.9% of revenue, compared to $153.2 million, or 6.4% of revenue, in the prior year [2][7]. - Non-GAAP operating income was $305.1 million, down from $331.0 million, with a non-GAAP operating margin of 12.3% [2][7]. - Adjusted EBITDA was $359.2 million, representing a margin of 14.5%, compared to $388.1 million and 16.3% in the previous year [2][7]. - Diluted earnings per share (EPS) increased to $1.34 from $0.25, while non-GAAP diluted EPS decreased slightly to $2.78 from $2.87 [2][7]. Shareholder Returns - The company paid a quarterly dividend of $0.33275 per share on August 5, 2025, and declared a new dividend of $0.36 per share payable on November 4, 2025 [5][6]. - Concentrix plans to return over $240 million to shareholders in fiscal 2025 through share repurchases and dividends [6][12]. - Approximately 800,000 shares were repurchased at a cost of $42.2 million during Q3 2025, with a remaining authorization of $495.1 million for future repurchases [8]. Business Outlook - The company raised its full-year growth outlook, expecting reported revenue between $9.798 billion and $9.823 billion for fiscal 2025, with constant currency revenue growth projected at 1.75% to 2.0% [9][15]. - For Q4 2025, revenue is expected to be between $2.525 billion and $2.550 billion, with operating income projected between $163 million and $173 million [9][15]. - Non-GAAP EPS guidance for Q4 is set between $2.85 and $2.96 [9][15]. Strategic Positioning - The CEO emphasized the company's strong position in providing business transformation solutions that integrate customer experience (CX) expertise, AI, and IT services globally [4]. - The company is focused on aligning its strategy with client needs to drive positive business outcomes and expand its offerings [4].

Concentrix Corporation (NASDAQ: CNXC) will release earnings results for the third quarter, after the closing bell on Thursday, Sept. 25.Analysts expect the Newark, California-based company to report quarterly earnings at $2.87 per share, versus $2.87 per share in the year-ago period. Concentrix projects quarterly revenue of $2.46 billion, compared to $2.39 billion a year earlier, according to data from Benzinga Pro.On Sept. 3, Concentrix announced its acquisition of SAI Digital.Shares of Concentrix rose 0.9 ...