Concentrix Reports Third Quarter 2026 Results (Form 8-K)

Concentrix Reports Third Quarter 2026 Results

•Exceeded profitability guidance for the quarter

•Generated record-high third quarter free cash flow from operations of $268M, and adjusted free cash flow of $218M

•Increased quarterly dividend

Newark, Calif., Sept. 29, 2026 - Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced financial results for the fiscal third quarter ended August 31, 2026.

			Three Months Ended
			August 31, 2026						August 31, 2025						Change
Revenue ($M)			$	2,453.7					$	2,483.3					(1.2)		%
Operating income (loss) ($M) (1)			$	(910.3)					$	147.0					NM
Non-GAAP operating income ($M) (2)			$	309.0					$	305.1					1.3		%
Operating margin (1)			(37.1)		%				5.9		%				NM
Non-GAAP operating margin (2)			12.6		%				12.3		%				30 bps
Net income (loss) ($M) (1)			$	(988.1)					$	88.1					NM
Non-GAAP net income ($M) (2)			$	186.5					$	183.2					1.8		%
Adjusted EBITDA ($M) (2)			$	363.0					$	359.2					1.1		%
Adjusted EBITDA margin (2)			14.8		%				14.5		%				30 bps
Diluted earnings (loss) per common share (1)			$	(16.24)					$	1.34					NM
Non-GAAP diluted earnings per common share (2)			$	2.92					$	2.78					5.0		%

(1) Operating loss, operating margin, net loss and diluted loss per common share in the third quarter of 2026 include a non-cash goodwill impairment charge of $1,050.0 million primarily resulting from the trading range for the Company's stock price and market capitalization.

(2) See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.

NM Not Meaningful - Change greater than 100% or 1,000 bps.

Third Quarter Fiscal 2026 Highlights:

•Revenue of $2,453.7 million, a decrease of (1.2)% year-on-year on an as reported basis compared to revenue of $2,483.3 million in the prior year third quarter. The Company's revenue decreased by (0.5)% year-on-year on a constant currency basis.

•Operating loss of $(910.3) million, or (37.1)% of revenue, compared to $147.0 million, or 5.9% of revenue, in the prior year third quarter. Operating loss for the quarter includes a non-cash goodwill impairment charge of $1,050.0 million primarily resulting from the recent trading range for the Company's stock price and market capitalization.

•Non-GAAP operating income of $309.0 million, or 12.6% of revenue, compared with $305.1 million, or 12.3% of revenue in the prior year third quarter.

•Adjusted EBITDA of $363.0 million, or 14.8% of revenue, compared with $359.2 million, or 14.5% of revenue in the prior year third quarter.

•Cash flow provided by operations was $268.2 million in the quarter. Adjusted free cash flow(1) was $218.3 million in the quarter.

•Diluted earnings (loss) per common share ("EPS") was $(16.24), inclusive of the goodwill impairment referenced above, compared to $1.34 in the prior year third quarter.

•Non-GAAP diluted EPS was $2.92 compared to $2.78 in the prior year third quarter.

"This quarter, we reached an inflection point where 50% of our revenue is coming from business we have won and deployed within the last 3 years since the introduction of AI," said Chris Caldwell, President and CEO of Concentrix. "While we are aggressively disrupting our own traditional business, the underlying new business is stronger and healthier as evidenced by our margin expansion, strong free cash flow and growth of our new services."

Quarterly Dividend and Share Repurchase Program:

•The Company paid a $0.36 per share quarterly dividend on August 4, 2026. The Company's Board of Directors has declared a quarterly dividend of $0.37 per share payable on November 3, 2026, to shareholders of record at the close of business on October 23, 2026.

•The Company did not repurchase any shares under its share repurchase program during the third quarter of fiscal year 2026. At August 31, 2026, the Company's remaining share repurchase authorization was $396.6 million.

Business Outlook:

The following statements are based on the Company's current expectations for the fourth quarter and the full year fiscal 2026. Non-GAAP financial measures exclude the impact of impairment charge, acquisition-related, integration and restructuring expenses, amortization of intangible assets, depreciation, loss on held for sale, share-based compensation and the related tax effects thereon. The non-GAAP EPS guidance assumes no impact from changes in acquisition contingent consideration and foreign currency losses (gains), net included in other expense (income), net. These statements are forward-looking and actual results may differ materially.

Fourth Quarter Fiscal 2026 Expectations:

•Fourth quarter reported revenue of $2.410 billion to $2.460 billion. Based on current exchange rates, these expectations assume an approximate 65-basis point negative impact of foreign exchange rates compared with the prior year period. The guidance implies constant currency revenue decline for the quarter ranging from (5.0)% to (3.0)%.

•Operating income of $174 million to $184 million and non-GAAP operating income of $310 million to $320 million.

•Non-GAAP diluted EPS of $2.86 to $2.98, assuming approximately 61.2 million diluted common shares outstanding and approximately 4.9% of net income attributable to participating securities.

•The effective tax rate is expected to be approximately 24%.

Full Year 2026 Expectations:

•Full year reported revenue of $9.827 billion to $9.877 billion. Based on current exchange rates, these expectations assume an approximate 80-basis point positive impact of foreign exchange rates compared with the prior year. The guidance implies constant currency revenue decline for the full year of (0.8)% to (0.3)%.

•Operating loss of $(522) million to $(512) million and non-GAAP operating income of $1,206 million to $1,216 million.

•Non-GAAP diluted EPS of $10.97 to $11.09, assuming approximately 61.1 million diluted common shares outstanding and approximately 4.9% of net income attributable to participating securities.

•The effective tax rate is expected to be approximately 24%.

In addition, the Company expects to generate approximately $630.0 million to $650.0 million of adjusted free cash flow in fiscal year 2026.

The Company believes that a quantitative reconciliation of the non-GAAP EPS outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to the inability to forecast future foreign currency losses (gains), net included in other expense (income), net. For the same

reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company's GAAP results.

The Company believes that a quantitative reconciliation of the adjusted free cash flow outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to uncertainty related to the future changes in the Company's factoring program and related timing of those changes. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company's GAAP results.

Conference Call and Webcast

The Company will host a conference call for investors to review its third quarter fiscal 2026 results today at 5:00 p.m. (ET)/2:00 p.m. (PT).

The live conference call webcast will be available in listen-only mode in the Investor Relations section of the Company's website under "Events and Presentations" at https://ir.concentrix.com/events-and-presentations. A replay will also be available on the website following the conference call.

About Concentrix: Powering a World That Works

Concentrix Corporation (NASDAQ: CNXC), is the Fortune 500® technology and services company, helping the world's best brands create intelligent operations that perform in the real world. We design, build, and run integrated human and AI solutions, harnessing the insight from billions of real-world interactions to help 2,000+ of the world's most complex organizations solve their toughest business challenges. Backed by 20+ years of operational experience and battle tested AI, we're the intelligent transformation partner that helps clients across every major industry move from ambition to measurable, scalable performance. Virtually everywhere. To learn more, visit concentrix.com.

Use of Non-GAAP Information

In addition to disclosing financial results that are determined in accordance with GAAP, we also disclose certain non-GAAP financial information, including:

•Constant currency revenue growth (decline), which is revenue growth (decline) adjusted for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Constant currency revenue growth (decline) is calculated by translating the revenue of each fiscal year in the billing currency to U.S. dollars using the comparable prior year's currency conversion rate in comparison to prior year's revenue. Generally, when the U.S. dollar either strengthens or weakens against other currencies, revenue growth at constant currency rates or adjusting for currency will be higher or lower than revenue growth reported at actual exchange rates.

•Non-GAAP operating income, which is operating income (loss), adjusted to exclude impairment charge, acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale and share-based compensation.

•Non-GAAP operating margin, which is non-GAAP operating income, as defined above, divided by revenue.

•Adjusted earnings before interest, taxes, depreciation, and amortization, or adjusted EBITDA, which is non-GAAP operating income, as defined above, plus depreciation (exclusive of step-up depreciation).

•Adjusted EBITDA margin, which is adjusted EBITDA, as defined above, divided by revenue.

•Non-GAAP net income, which is net income (loss) excluding the tax-effected impact of impairment charge, acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale, share-based compensation, certain debt costs, imputed interest related to the Sellers' Note, certain legal settlement costs, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP net income also excludes the income tax effect of certain tax law changes.

•Free cash flow, which is cash flows from operating activities less capital expenditures, and adjusted free cash flow, which is free cash flow excluding the effect of changes in the outstanding factoring balance. We believe that free cash flow is a meaningful measure of cash flows since capital expenditures are a necessary component of ongoing operations. We believe that adjusted free cash flow is a meaningful measure of cash flows because it removes the effect of factoring, which changes the timing of the receipt of cash for certain receivables. However, free cash flow and adjusted free cash flow have limitations because they do not represent the residual cash flow available for discretionary expenditures. For example, free cash flow and adjusted free cash flow do not incorporate payments for business acquisitions.

•Non-GAAP diluted EPS, which is diluted EPS excluding the per share, tax-effected impact of impairment charge, acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale, share-based compensation, certain debt costs, imputed interest related to the Sellers' Note, certain legal settlement costs, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP EPS also excludes the per share income tax effect of certain tax law changes. Non-GAAP EPS also reflects a per share adjustment to exclude non-GAAP net income attributable to participating securities.

We believe that providing this additional information is useful to the reader to better assess and understand our base operating performance, especially when comparing results with previous periods and for planning and forecasting in future periods, primarily because management typically monitors the business adjusted for these items in addition to GAAP results. Management also uses these non-GAAP measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. These non-GAAP financial measures exclude amortization of intangible assets. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to the services performed for our clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of our acquisition activity. Accordingly, we believe excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of our business nor reflect our underlying business performance, enhances our and our investors' ability to compare our past financial performance with our current performance and to analyze underlying business performance and trends. These non-GAAP financial measures also exclude share-based compensation expense. Given the subjective assumptions and the variety of award types that companies can use when calculating share-based compensation expense, management believes this additional information allows investors to make additional comparisons between our operating results and those of our peers. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.