Concentrix Reports $2.37 Billion Revenue, Net Income Increases 34.8% in Latest Quarter

Concentrix Corporation reported its financial results for the three months ended February 28, 2025, revealing a revenue of $2.37 billion, a decrease of 1.3% from $2.40 billion in the same period last year. The decline in revenue was attributed to unfavorable foreign currency exchange rates, which negatively impacted revenue by approximately $62.4 million, or 2.6%. Despite the overall revenue drop, the company noted increases in underlying client volumes across several sectors, particularly in technology and consumer electronics, which saw a slight decrease of 1.1% due to currency effects.

The company's gross profit for the quarter was $855.9 million, down marginally from $856.5 million a year earlier, resulting in a gross margin of 36.1%, up from 35.6%. Cost of revenue also decreased by 1.9% to $1.52 billion, primarily due to a reduction in costs associated with foreign currency fluctuations. Operating income increased by 13.8% to $168.9 million, driven by a reduction in selling, general, and administrative expenses, which fell by 3.0% to $687.0 million. This led to an operating margin improvement from 6.2% to 7.1%.

In terms of strategic developments, Concentrix completed its acquisition of Webhelp on September 25, 2023, which was a significant factor in its operational strategy. The acquisition was financed through a combination of senior notes, term loan borrowings, and cash on hand. The company has also been active in managing its capital structure, with a share repurchase program that was extended in January 2025, allowing for up to $600 million in repurchases. During the quarter, Concentrix repurchased approximately 540,000 shares for $25.8 million.

Operationally, Concentrix reported a net income of $70.3 million for the quarter, compared to $52.1 million in the prior year, reflecting a 34.8% increase. The company’s effective tax rate rose to 30.3% from 28.5%, influenced by changes in tax law and the geographic mix of income. The total employee headcount as of February 28, 2025, was 69,007, reflecting ongoing efforts to scale operations post-acquisition.

Looking ahead, Concentrix anticipates continued challenges from foreign currency fluctuations and competitive pressures in the market. The company remains focused on leveraging its expanded capabilities from the Webhelp acquisition to enhance service offerings and drive growth. Management expressed confidence in the company’s ability to navigate these challenges while maintaining a strong liquidity position, with total liquidity reported at $1.5 billion as of the end of the quarter.