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Concentrix Reports Second Quarter 2025 Results
ConcentrixConcentrix(US:CNXC) Globenewswireยท2025-06-26 20:10

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].