Concentrix (CNXC) investor relations material

Executive summary

• Revenue for the quarter reached $2.48 billion, up 4% year-on-year, exceeding guidance and driven by integrated AI, CX, and IT solutions, with growth across all primary industry verticals except 'Other.'

• Net income was $88.1 million, a significant increase from the prior year, while GAAP EPS was $1.34.

• Margins were below plan due to excess capacity and accelerated transformation investments, but sequential improvement is expected.

• AI is a positive tailwind, with 40% of new wins including AI platforms, and IX suite on track to be accretive by year-end.

• The company completed the repayment of the Sellers' Note related to the Webhelp acquisition using proceeds from new term loans.

Financial highlights

• Q3 revenue: $2.48 billion, up 2.6% year-on-year constant currency, 4% as reported, above guidance.

• Non-GAAP operating income: $305 million, below guidance due to excess capacity and transformation costs.

• Adjusted EBITDA: $359 million (14.5% margin); Non-GAAP EPS: $2.78, $0.02 below guidance.

• Gross margin for the quarter: 34.4% (down from 36.2% year-over-year).

• Adjusted free cash flow: $339.3 million for nine months, up from $255.8 million; quarterly adjusted free cash flow: $179 million, up $44 million year-on-year.

Outlook and guidance

• Q4 revenue expected at $2.525–$2.550 billion, with 1.5%–2.5% constant currency growth.

• Full-year 2025 revenue guidance raised to $9.798–$9.823 billion, 1.75%–2% constant currency growth.

• Q4 non-GAAP operating income: $320–$330 million; full-year: $1.25–$1.26 billion.

• Q4 non-GAAP EPS: $2.85–$2.96; full-year: $11.11–$11.23.

• Future cash dividends are expected to be paid quarterly, subject to board approval and financial conditions.