cnxc-20250228

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File Number: 001-39494

CONCENTRIX CORPORATION

(Exact name of Registrant as specified in its charter)


Delaware									27-1605762
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)

39899 Balentine Drive, Suite 235, Newark, California									94560
(Address of Principal Executive Offices)									(Zip Code)

(800) 747-0583

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

CNXC

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date.


Class						Outstanding as of March 31, 2025
Common Stock, par value $0.0001 per share						63,883,477

Concentrix Corporation

Form 10-Q
Index


		Page
PART I	FINANCIAL INFORMATION	2
Item 1.	Financial Statements	2
	Consolidated Balance Sheets as of February 28, 2025 (unaudited) and November 30, 2024	2
	Consolidated Statements of Operations (unaudited) for the Three Months Ended February 28, 2025 and February 29, 2024	3
	Consolidated Statements of Comprehensive Income (unaudited) for the Three Months Ended February 28, 2025 and February 29, 2024	4
	Consolidated Statements of Stockholders’ Equity (unaudited) for the Three Months Ended February 28, 2025 and February 29, 2024	5
	Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended February 28, 2025 and February 29, 2024	6
	Notes to the Consolidated Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	38

PART II	OTHER INFORMATION	40
Item 1.	Legal Proceedings	40
Item 1A.	Risk Factors	40
Item 2.	Unregistered S ales of E quity S ecurities and U se of P roceeds	40
Item 5.	Other Information	41
Item 6.	Exhibits	42

	Signatures	43

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONCENTRIX CORPORATION

CONSOLIDATED BALANCE SHEETS

(currency and share amounts in thousands, except par value)


	February 28, 2025		November 30, 2024
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	308,000	$	240,571
Accounts receivable, net	2,014,821		1,926,737
Other current assets	637,777		675,116
Total current assets	2,960,598		2,842,424
Property and equipment, net	677,636		714,517
Goodwill	4,935,758		4,986,967
Intangible assets, net	2,161,072		2,286,940
Deferred tax assets	235,970		218,396
Other assets	924,085		942,194
Total assets	$	11,895,119	$	11,991,438

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	158,038	$	209,812
Current portion of long-term debt	460		2,522
Accrued compensation and benefits	585,341		706,619
Other accrued liabilities	920,143		977,314
Income taxes payable	128,202		99,546
Total current liabilities	1,792,184		1,995,813
Long-term debt, net	4,901,432		4,733,056
Other long-term liabilities	873,639		910,271
Deferred tax liabilities	294,094		312,574
Total liabilities	7,861,349		7,951,714
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.0001 par value, 10,000 shares authorized and no shares issued and outstanding as of February 28, 2025 and November 30, 2024, respectively	—		—
Common stock, $0.0001 par value, 250,000 shares authorized; 69,007 and 68,849 shares issued as of February 28, 2025 and November 30, 2024, respectively, and 63,814 and 64,238 shares outstanding as of February 28, 2025 and November 30, 2024, respectively	7		7
Additional paid-in capital	3,711,701		3,683,608
Treasury stock, 5,193 and 4,611 shares as of February 28, 2025 and November 30, 2024, respectively	(449,374)		(421,449)
Retained earnings	1,239,638		1,191,871
Accumulated other comprehensive loss	(468,202)		(414,313)
Total stockholders’ equity	4,033,770		4,039,724
Total liabilities and stockholders’ equity	$	11,895,119	$	11,991,438

The accompanying notes are an integral part of these consolidated financial statements.

CONCENTRIX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(currency and share amounts in thousands, except per share amounts)

(unaudited)


	Three Months Ended
	February 28, 2025		February 29, 2024
Revenue	$	2,372,222	$	2,402,748
Cost of revenue	1,516,323		1,546,219
Gross profit	855,899		856,529
Selling, general and administrative expenses	687,032		708,090
Operating income	168,867		148,439
Interest expense and finance charges, net	72,994		82,439
Other expense (income), net	(4,919)		(6,824)
Income before income taxes	100,792		72,824
Provision for income taxes	30,535		20,722
Net income	$	70,257	$	52,102

Earnings per common share:
Basic	$	1.04	$	0.76
Diluted	$	1.04	$	0.76
Weighted-average common shares outstanding:
Basic	64,037		65,664
Diluted	64,065		65,790

The accompanying notes are an integral part of these consolidated financial statements.

CONCENTRIX CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(currency in thousands)

(unaudited)


	Three Months Ended
	February 28, 2025		February 29, 2024
Net income	$	70,257	$	52,102
Other comprehensive income (loss):
Unrealized gains (losses) of defined benefit plans, net of taxes of $(19) and $(135) for the three months ended February 28, 2025 and February 29, 2024, respectively	1,152		1,304
Unrealized gains (losses) on hedges during the period, net of taxes of $819 and $1,328 for the three months ended February 28, 2025 and February 29, 2024, respectively	1,287		(4,020)
Reclassification of net losses (gains) on hedges to net income, net of taxes of $(1,562) and $150 for the three months ended February 28, 2025 and February 29, 2024, respectively	4,586		(427)
Total change in unrealized gains (losses) on hedges, net of taxes	5,873		(4,447)
Foreign currency translation adjustments for the three months ended February 28, 2025 and February 29, 2024, respectively	(60,914)		(69,412)
Other comprehensive income (loss)	(53,889)		(72,555)
Comprehensive income (loss)	$	16,368	$	(20,453)

The accompanying notes are an integral part of these consolidated financial statements.

CONCENTRIX CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(currency and share amounts in thousands)

(unaudited)


	Three Months Ended February 28, 2025 and February 29, 2024
	Common stock					Treasury stock
	Shares	Amount		Additional paid-in capital		Shares	Amount		Retained earnings		Accumulated other comprehensive income (loss)		Total stockholders’ equity
Balances, November 30, 2023	67,883	$	7	$	3,582,521	2,149	$	(271,968)	$	1,024,461	$	(191,727)	$	4,143,294
Other comprehensive loss	—	—		—		—	—		—		(72,555)		(72,555)
Share-based compensation activity	98	—		23,173		—	—		—		—		23,173
Repurchase of common stock for tax withholdings on equity awards	—	—		—		23	(2,090)		—		—		(2,090)
Repurchase of common stock	—	—		—		237	(21,674)		—		—		(21,674)
Dividends	—	—		—		—	—		(20,613)		—		(20,613)
Net income	—	—		—		—	—		52,102		—		52,102
Balances, February 29, 2024	67,981	$	7	$	3,605,694	2,409	$	(295,732)	$	1,055,950	$	(264,282)	$	4,101,637

Balances, November 30, 2024	68,849	$	7	$	3,683,608	4,611	$	(421,449)	$	1,191,871	$	(414,313)	$	4,039,724
Other comprehensive loss	—	—		—		—	—		—		(53,889)		(53,889)
Share-based compensation activity	158	—		28,093		—	—		—		—		28,093
Repurchase of common stock for tax withholdings on equity awards	—	—		—		42	(2,079)		—		—		(2,079)
Repurchase of common stock	—	—		—		540	(25,846)		—		—		(25,846)
Dividends	—	—		—		—	—		(22,490)		—		(22,490)
Net income	—	—		—		—	—		70,257		—		70,257
Balances, February 28, 2025	69,007	$	7	$	3,711,701	5,193	$	(449,374)	$	1,239,638	$	(468,202)	$	4,033,770

The accompanying notes are an integral part of these consolidated financial statements.

CONCENTRIX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(currency in thousands)
(unaudited)


	Three Months Ended
	February 28, 2025		February 29, 2024
Cash flows from operating activities:
Net income	$	70,257	$	52,102
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	55,097		67,758
Amortization	105,619		116,302
Non-cash share-based compensation expense	26,486		21,566
Provision for doubtful accounts	3,313		(180)
Deferred income taxes	(31,995)		(22,131)
Amortization of debt discount and issuance costs	6,003		5,625
Pension and other post-retirement benefit costs	3,883		3,579
Pension and other post-retirement plan contributions	—		(859)
Change in acquisition contingent consideration	(2,024)		(14,897)
Other	101		(96)
Changes in operating assets and liabilities:
Accounts receivable, net	(106,900)		(44,894)
Accounts payable	(37,536)		(36,516)
Other operating assets and liabilities	(90,896)		(194,229)
Net cash provided by (used in) operating activities	1,408		(46,870)
Cash flows from investing activities:
Purchases of property and equipment	(50,618)		(56,059)
Acquisition of business, net of cash and restricted cash acquired	(663)		(4,503)
Net cash used in investing activities	(51,281)		(60,562)
Cash flows from financing activities:
Repayments of the Amended Credit Facility - Term Loan	—		(100,000)
Proceeds from the Amended Credit Facility - Revolver	100,000		—
Repayments of the Amended Credit Facility - Revolver	(100,000)		—
Proceeds from the Securitization Facility	582,500		628,000
Repayments of the Securitization Facility	(401,500)		(430,500)
Other debt proceeds	—		400
Other debt repayments	(5,662)		(2,792)
Cash paid for debt issuance costs	(334)		—
Acquisition deferred consideration payment	(3,483)		—
Proceeds from exercise of stock options	1,607		1,607
Repurchase of common stock for tax withholdings on equity awards	(2,079)		(2,090)
Repurchase of common stock	(25,846)		(21,674)

SEC Form 10-Q filed by Concentrix Corporation