Q1 2026 Investor Summary March 24, 2026 Safe Harbor Statement This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding the Company's expected future financial condition, growth and profitability, results of operations, including revenue and operating income, cash flows, and effective tax ...

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]