Concentrix Reports First Quarter 2025 Results

Core Insights - Concentrix Corporation reported financial results for the fiscal first quarter ended February 28, 2025, showing a slight decline in revenue but significant growth in operating income and net income [1][4][6]. Financial Performance - Revenue for the first quarter was $2,372.2 million, a decrease of 1.3% year-on-year from $2,402.7 million [6]. - Operating income increased to $168.9 million, representing 7.1% of revenue, compared to $148.4 million (6.2% of revenue) in the prior year [6]. - Non-GAAP operating income was $321.5 million, or 13.6% of revenue, slightly up from $319.1 million (13.3% of revenue) year-on-year [6]. - Net income rose to $70.3 million, a 34.9% increase from $52.1 million in the previous year [6]. - Non-GAAP net income was $188.1 million, up 7.1% from $175.7 million [6]. Margins and Earnings - The operating margin improved by 90 basis points to 7.1% [6]. - Non-GAAP operating margin increased by 30 basis points to 13.6% [6]. - Adjusted EBITDA was $374.2 million, with a margin of 15.8%, down from $384.3 million (16.0% margin) in the prior year [6]. Shareholder Returns - The company paid a quarterly dividend of $0.33275 per share on February 11, 2025, and declared another dividend of the same amount payable on May 6, 2025 [4][5]. - Concentrix repurchased approximately 550,000 shares for $26.2 million at an average cost of $47.84 per share, with a remaining authorization of $582.3 million for share repurchases [7]. Future Outlook - The company expects to generate approximately $625 million to $650 million of adjusted free cash flow for the fiscal year 2025 [5][9]. - Full-year revenue guidance is set between $9.490 billion and $9.635 billion, implying constant currency revenue growth of 0% to 1.5% [13].