Document
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 $218M
•Increased quarterly dividend
Newark, Calif., Sept. 29, 2026 – Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced financial results for the fiscal third quarter ended August 31, 2026.
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Three Months Ended |
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August 31, 2026 |
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August 31, 2025 |
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Change |
Revenue ($M)
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$ |
2,453.7 |
|
|
$ |
2,483.3 |
|
|
(1.2) |
% |
Operating income (loss) ($M) (1)
|
$ |
(910.3) |
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$ |
147.0 |
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|
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 |
% |
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12.3 |
% |
|
30 bps |
Net income (loss) ($M) (1)
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$ |
(988.1) |
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$ |
88.1 |
|
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NM |
Non-GAAP net income ($M) (2)
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$ |
186.5 |
|
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$ |
183.2 |
|
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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)
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$ |
(16.24) |
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|
$ |
1.34 |
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NM |
Non-GAAP diluted earnings per common share (2)
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$ |
2.92 |
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$ |
2.78 |
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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.
Safe Harbor Statement
This news release 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 rate, leverage and liquidity, capital expenditures and anticipated investment costs, the Company’s stock price and market capitalization, the future growth and success of, and demand for, the Company’s services and products, the potential benefits associated with use of the Company’s artificial intelligence (“AI”) solutions and other products, share repurchase and dividend activity, capital allocation, debt repayment and obligations, business strategy, product launches, foreign currency exchange rate fluctuations, and statements that include words such as believe, expect, intend, plan, may, will, anticipate, provide, could, should, target, estimate, outlook, and other similar expressions. These forward-looking statements are inherently uncertain and involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things: risks
related to general economic and geopolitical conditions and their effects on our clients’ businesses and demand for our services, including consumer demand, interest rates, inflation, the price of oil and other petroleum-based products, international tariffs and global trade policies, supply chains, and the conflicts in the Middle East and Ukraine; cyberattacks on the Company’s or its clients’ networks and information technology systems; uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of AI, including agentic and generative AI; the failure of the Company’s staff and contractors to adhere to the Company’s and its clients’ controls and processes; the inability to protect personal and proprietary information; the effects of communicable diseases or other public health crises, natural disasters and adverse weather conditions; geopolitical, economic and climate- or weather-related risks in regions with a significant concentration of the Company’s operations; the ability to successfully execute the Company’s strategy; the timing and success of product launches; competitive conditions in the Company’s industry and consolidation of its competitors; variability in demand by the Company’s clients or the early termination of the Company’s client contracts; the level of business activity of the Company’s clients and the market acceptance and performance of their products and services; the demand for end-to-end solutions and technology; damage to the Company’s reputation through the actions or inactions of third parties; changes in law, regulations, or regulatory guidance, or changes in their interpretation or enforcement, including changes in law and policy that restrict offshoring or travel or visas between countries in which we have operations; the operability of the Company’s communication services and information technology systems and networks; the loss of key personnel or the inability to attract and retain staff across all geographies with the skills and expertise needed for the Company’s business; increases in the cost of labor, including minimum wage rates in the countries in which the Company operates; the inability to successfully identify, complete, and integrate strategic acquisitions or investments or realize anticipated benefits within the expected timeframe; higher than expected tax liabilities; currency exchange rate fluctuations; investigative or legal actions; and other factors contained in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2025 filed with the Securities and Exchange Commission (“SEC”) and subsequent documents filed with or furnished to the SEC. The Company does not undertake a duty to update forward-looking statements, which speak only as of the date on which they are made, except as required by law.
Copyright 2026 Concentrix Corporation. All rights reserved. Concentrix, the Concentrix logo, and all other Concentrix company, product, and services word and design marks and slogans are trademarks or registered trademarks of Concentrix Corporation and its subsidiaries. Other names and marks are the property of their respective owners.
From Fortune ©2026 Fortune Media (USA) Corporation. All rights reserved. Used under license. Fortune and Fortune 500 are registered trademarks of Fortune Media (USA) Corporation and are used under license. Fortune and Fortune Media (USA) Corporation are not affiliated with, and do not endorse products or services of, Concentrix.
Investor Contact:
Elise Brassell
Concentrix Corporation
Investor.relations@concentrix.com
CONCENTRIX CORPORATION
CONSOLIDATED BALANCE SHEETS
(currency and share amounts in thousands, except par value)
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August 31, 2026 |
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November 30, 2025 |
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(unaudited) |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ |
244,692 |
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$ |
327,347 |
|
| Accounts receivable, net |
1,969,848 |
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|
1,999,021 |
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| Assets held for sale |
212,959 |
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|
— |
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| Other current assets |
489,238 |
|
|
758,135 |
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| Total current assets |
2,916,737 |
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|
3,084,503 |
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| Property and equipment, net |
698,116 |
|
|
735,550 |
|
| Operating lease right-of-use assets, net |
864,749 |
|
|
857,025 |
|
| Goodwill |
2,636,667 |
|
|
3,671,746 |
|
| Intangible assets, net |
1,651,400 |
|
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1,960,338 |
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| Deferred tax assets |
346,058 |
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|
317,453 |
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| Other assets |
147,042 |
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|
134,471 |
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| Total assets |
$ |
9,260,769 |
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$ |
10,761,086 |
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ |
221,495 |
|
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$ |
244,771 |
|
| Current portion of long-term debt |
450,000 |
|
|
65,625 |
|
| Accrued compensation and benefits |
680,040 |
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|
764,962 |
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| Other accrued liabilities |
763,409 |
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997,198 |
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| Income taxes payable |
73,221 |
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123,794 |
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| Liabilities held for sale |
182,149 |
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— |
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| Total current liabilities |
2,370,314 |
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2,196,350 |
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| Long-term debt, net |
3,925,373 |
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4,572,889 |
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| Other long-term liabilities |
949,867 |
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950,983 |
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| Deferred tax liabilities |
246,476 |
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|
296,519 |
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| Total liabilities |
7,492,030 |
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8,016,741 |
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| Stockholders’ equity: |
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| Preferred stock, $0.0001 par value, 10,000 shares authorized and no shares issued and outstanding as of August 31, 2026 and November 30, 2025, respectively |
— |
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— |
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| Common stock, $0.0001 par value, 250,000 shares authorized; 70,679 and 70,316 shares issued as of August 31, 2026 and November 30, 2025, respectively, and 60,948 and 61,739 shares outstanding as of August 31, 2026 and November 30, 2025, respectively |
7 |
|
|
7 |
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| Additional paid-in capital |
3,859,842 |
|
|
3,783,972 |
|
| Treasury stock, 9,731 and 8,577 shares as of August 31, 2026 and November 30, 2025, respectively |
(657,424) |
|
|
(610,162) |
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| Retained deficit |
(1,157,782) |
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(177,010) |
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| Accumulated other comprehensive loss |
(275,904) |
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(252,462) |
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| Total stockholders’ equity |
1,768,739 |
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2,744,345 |
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| Total liabilities and stockholders’ equity |
$ |
9,260,769 |
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|
$ |
10,761,086 |
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CONCENTRIX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(currency and share amounts in thousands, except per share amounts)
(unaudited)
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Three Months Ended |
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Nine Months Ended |
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August 31, 2026 |
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August 31, 2025 |
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% Change |
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August 31, 2026 |
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August 31, 2025 |
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% Change |
| Revenue |
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| Technology and consumer electronics |
$ |
603,512 |
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$ |
670,573 |
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(10) |
% |
|
$ |
1,862,845 |
|
|
$ |
1,990,984 |
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(6) |
% |
Retail, travel and e-commerce |
662,612 |
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|
622,822 |
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6 |
% |
|
1,952,770 |
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1,790,502 |
|
|
9 |
% |
| Communications and media |
381,905 |
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|
411,229 |
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(7) |
% |
|
1,168,176 |
|
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1,175,192 |
|
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(1) |
% |
| Banking, financial services and insurance |
432,463 |
|
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384,449 |
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|
12 |
% |
|
1,286,456 |
|
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1,133,657 |
|
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13 |
% |
| Healthcare |
145,173 |
|
|
174,106 |
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(17) |
% |
|
475,872 |
|
|
540,297 |
|
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(12) |
% |
| Other |
228,014 |
|
|
220,074 |
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4 |
% |
|
670,424 |
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|
642,214 |
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4 |
% |
| Total revenue |
$ |
2,453,679 |
|
|
$ |
2,483,253 |
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(1) |
% |
|
$ |
7,416,543 |
|
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$ |
7,272,846 |
|
|
2 |
% |
| Cost of revenue |
1,604,800 |
|
|
1,628,246 |
|
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(1) |
% |
|
4,894,658 |
|
|
4,713,792 |
|
|
4 |
% |
| Gross profit |
848,879 |
|
|
855,007 |
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|
(1) |
% |
|
2,521,885 |
|
|
2,559,054 |
|
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(1) |
% |
| Selling, general and administrative expenses |
709,184 |
|
|
708,023 |
|
|
— |
% |
|
2,168,210 |
|
|
2,094,858 |
|
|
4 |
% |
| Impairment charge |
1,050,000 |
|
|
— |
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NM |
|
1,050,000 |
|
|
— |
|
|
NM |
| Operating income (loss) |
(910,305) |
|
|
146,984 |
|
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NM |
|
(696,325) |
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|
464,196 |
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NM |
| Interest expense and finance charges, net |
64,856 |
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|
72,014 |
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(10) |
% |
|
208,247 |
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|
220,414 |
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(6) |
% |
| Other expense (income), net |
4,603 |
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(36,474) |
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NM |
|
(23,014) |
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(20,175) |
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14 |
% |
| Income (loss) before income taxes |
(979,764) |
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|
111,444 |
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NM |
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(881,558) |
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263,957 |
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NM |
| Provision for income taxes |
8,349 |
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23,334 |
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(64) |
% |
|
29,690 |
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|
63,497 |
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(53) |
% |
| Net income (loss) |
$ |
(988,113) |
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$ |
88,110 |
|
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NM |
|
$ |
(911,248) |
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$ |
200,460 |
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NM |
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| Earnings (loss) per common share: |
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| Basic |
$ |
(16.24) |
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$ |
1.34 |
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$ |
(14.99) |
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$ |
3.01 |
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| Diluted |
$ |
(16.24) |
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$ |
1.34 |
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$ |
(14.99) |
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$ |
3.01 |
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| Weighted-average common shares outstanding: |
|
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|
|
|
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|
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| Basic |
60,910 |
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|
62,598 |
|
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|
61,011 |
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|
63,325 |
|
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| Diluted |
60,910 |
|
|
62,702 |
|
|
|
|
61,011 |
|
|
63,379 |
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|
NM Not Meaningful - Change greater than 100%.
CONCENTRIX CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(currency and share amounts in thousands, except per share amounts)
(unaudited)
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Three Months Ended |
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Nine Months Ended |
|
August 31, 2026 |
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August 31, 2026 |
| Revenue |
$ |
2,453,679 |
|
|
$ |
7,416,543 |
|
| Revenue growth (decline), as reported under U.S. GAAP |
(1.2) |
% |
|
2.0 |
% |
| Foreign exchange impact |
0.7 |
% |
|
(1.3) |
% |
| Constant currency revenue growth (decline) |
(0.5) |
% |
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
August 31, 2026 |
|
August 31, 2025 |
|
August 31, 2026 |
|
August 31, 2025 |
| Operating income (loss) |
$ |
(910,305) |
|
|
$ |
146,984 |
|
|
$ |
(696,325) |
|
|
$ |
464,196 |
|
| Impairment charge |
1,050,000 |
|
|
— |
|
|
1,050,000 |
|
|
— |
|
Acquisition-related, integration and restructuring expenses (1)
|
42,493 |
|
|
18,619 |
|
|
142,867 |
|
|
53,451 |
|
Step-up depreciation |
2,626 |
|
|
2,704 |
|
|
8,082 |
|
|
7,616 |
|
| Amortization of intangibles |
100,908 |
|
|
111,779 |
|
|
306,421 |
|
|
326,556 |
|
| Loss on held for sale |
1,528 |
|
|
— |
|
|
8,420 |
|
|
— |
|
| Share-based compensation |
21,757 |
|
|
25,042 |
|
|
76,579 |
|
|
78,504 |
|
| Non-GAAP operating income |
$ |
309,007 |
|
|
$ |
305,128 |
|
|
$ |
896,044 |
|
|
$ |
930,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
August 31, 2026 |
|
August 31, 2025 |
|
August 31, 2026 |
|
August 31, 2025 |
| Net income (loss) |
$ |
(988,113) |
|
|
$ |
88,110 |
|
|
$ |
(911,248) |
|
|
$ |
200,460 |
|
| Interest expense and finance charges, net |
64,856 |
|
|
72,014 |
|
|
208,247 |
|
|
220,414 |
|
| Provision for income taxes |
8,349 |
|
|
23,334 |
|
|
29,690 |
|
|
63,497 |
|
| Other expense (income), net |
4,603 |
|
|
(36,474) |
|
|
(23,014) |
|
|
(20,175) |
|
| Impairment charge |
1,050,000 |
|
|
— |
|
|
1,050,000 |
|
|
— |
|
Acquisition-related, integration and restructuring expenses (1)
|
42,493 |
|
|
18,619 |
|
|
142,867 |
|
|
53,451 |
|
Step-up depreciation |
2,626 |
|
|
2,704 |
|
|
8,082 |
|
|
7,616 |
|
| Amortization of intangibles |
100,908 |
|
|
111,779 |
|
|
306,421 |
|
|
326,556 |
|
| Loss on held for sale |
1,528 |
|
|
— |
|
|
8,420 |
|
|
— |
|
| Share-based compensation |
21,757 |
|
|
25,042 |
|
|
76,579 |
|
|
78,504 |
|
Depreciation (exclusive of step-up depreciation) |
53,947 |
|
|
54,074 |
|
|
162,466 |
|
|
160,410 |
|
| Adjusted EBITDA |
$ |
362,954 |
|
|
$ |
359,202 |
|
|
$ |
1,058,510 |
|
|
$ |
1,090,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
August 31, 2026 |
|
August 31, 2025 |
|
August 31, 2026 |
|
August 31, 2025 |
| Operating margin |
(37.1) |
% |
|
5.9 |
% |
|
(9.4) |
% |
|
6.4 |
% |
| Non-GAAP operating margin |
12.6 |
% |
|
12.3 |
% |
|
12.1 |
% |
|
12.8 |
% |
| Adjusted EBITDA margin |
14.8 |
% |
|
14.5 |
% |
|
14.3 |
% |
|
15.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
August 31, 2026 |
|
August 31, 2025 |
|
August 31, 2026 |
|
August 31, 2025 |
| Net income (loss) |
$ |
(988,113) |
|
|
$ |
88,110 |
|
|
$ |
(911,248) |
|
|
$ |
200,460 |
|
| Impairment charge |
1,050,000 |
|
|
— |
|
|
1,050,000 |
|
|
— |
|
Acquisition-related, integration and restructuring expenses (1)
|
42,493 |
|
|
18,619 |
|
|
142,867 |
|
|
53,451 |
|
Step-up depreciation |
2,626 |
|
|
2,704 |
|
|
8,082 |
|
|
7,616 |
|
Debt costs (2)
|
— |
|
|
— |
|
|
6,268 |
|
|
1,102 |
|
| Imputed interest related to Sellers’ Note included in interest expense and finance charges, net |
— |
|
|
4,739 |
|
|
— |
|
|
13,428 |
|
Legal settlement costs (3)
|
— |
|
|
— |
|
|
— |
|
|
2,000 |
|
Change in acquisition contingent consideration included in other expense (income), net |
2,125 |
|
|
(2,417) |
|
|
1,180 |
|
|
4,250 |
|
Foreign currency losses (gains), net (4)
|
(889) |
|
|
(35,531) |
|
|
(33,548) |
|
|
(28,921) |
|
| Amortization of intangibles |
100,908 |
|
|
111,779 |
|
|
306,421 |
|
|
326,556 |
|
| Loss on held for sale |
1,528 |
|
|
— |
|
|
8,420 |
|
|
— |
|
| Share-based compensation |
21,757 |
|
|
25,042 |
|
|
76,579 |
|
|
78,504 |
|
Income taxes related to the above (5)
|
(40,628) |
|
|
(30,535) |
|
|
(126,490) |
|
|
(112,458) |
|
Income tax effect of change in tax law |
(5,298) |
|
|
721 |
|
|
(5,298) |
|
|
4,990 |
|
| Non-GAAP net income |
$ |
186,509 |
|
|
$ |
183,231 |
|
|
$ |
523,233 |
|
|
$ |
550,978 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
August 31, 2026 |
|
August 31, 2025 |
|
August 31, 2026 |
|
August 31, 2025 |
| Net income (loss) |
$ |
(988,113) |
|
|
$ |
88,110 |
|
|
$ |
(911,248) |
|
|
$ |
200,460 |
|
Less: net income allocated to participating securities (6)
|
(1,116) |
|
|
(4,214) |
|
|
(3,461) |
|
|
(9,709) |
|
| Net income (loss) attributable to common stockholders |
$ |
(989,229) |
|
|
$ |
83,896 |
|
|
$ |
(914,709) |
|
|
$ |
190,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
August 31, 2026 |
|
August 31, 2025 |
|
August 31, 2026 |
|
August 31, 2025 |
| Non-GAAP net income |
$ |
186,509 |
|
|
$ |
183,231 |
|
|
$ |
523,233 |
|
|
$ |
550,978 |
|
Less: Non-GAAP net income allocated to participating securities (7)
|
(8,929) |
|
|
(8,763) |
|
|
(25,651) |
|
|
(26,685) |
|
| Non-GAAP income attributable to common stockholders |
$ |
177,580 |
|
|
$ |
174,468 |
|
|
$ |
497,582 |
|
|
$ |
524,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
August 31, 2026 |
|
August 31, 2025 |
|
August 31, 2026 |
|
August 31, 2025 |
Diluted earnings (loss) per common share (“EPS”) (6)
|
$ |
(16.24) |
|
|
$ |
1.34 |
|
|
$ |
(14.99) |
|
|
$ |
3.01 |
|
| Impairment charge |
17.24 |
|
|
— |
|
|
17.21 |
|
|
— |
|
Acquisition-related, integration and restructuring expenses |
0.70 |
|
|
0.30 |
|
|
2.34 |
|
|
0.84 |
|
| Step-up depreciation |
0.04 |
|
|
0.04 |
|
|
0.13 |
|
|
0.12 |
|
Debt costs (2)
|
— |
|
|
— |
|
|
0.10 |
|
|
0.02 |
|
| Imputed interest related to Sellers’ Note included in interest expense and finance charges, net |
— |
|
|
0.08 |
|
|
— |
|
|
0.21 |
|
Legal settlement costs (3)
|
— |
|
|
— |
|
|
— |
|
|
0.03 |
|
| Change in acquisition contingent consideration included in other expense (income), net |
0.03 |
|
|
(0.04) |
|
|
0.02 |
|
|
0.07 |
|
Foreign currency losses (gains), net (4)
|
(0.01) |
|
|
(0.57) |
|
|
(0.55) |
|
|
(0.46) |
|
| Amortization of intangibles |
1.66 |
|
|
1.78 |
|
|
5.02 |
|
|
5.15 |
|
| Loss on held for sale |
0.03 |
|
|
— |
|
|
0.14 |
|
|
— |
|
| Share-based compensation |
0.36 |
|
|
0.40 |
|
|
1.26 |
|
|
1.24 |
|
Income taxes related to the above (5)
|
(0.67) |
|
|
(0.49) |
|
|
(2.07) |
|
|
(1.77) |
|
| Income tax effect of change in tax law |
(0.09) |
|
|
0.01 |
|
|
(0.09) |
|
|
0.08 |
|
Adjustment for participating securities (7)
|
(0.13) |
|
|
(0.07) |
|
|
(0.36) |
|
|
(0.27) |
|
Non-GAAP Diluted EPS (7)
|
$ |
2.92 |
|
|
$ |
2.78 |
|
|
$ |
8.16 |
|
|
$ |
8.27 |
|
|
|
|
|
|
|
|
|
| Weighted-average number of common shares - diluted |
60,910 |
|
|
62,702 |
|
|
61,011 |
|
|
63,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
August 31, 2026 |
|
August 31, 2025 |
|
August 31, 2026 |
|
August 31, 2025 |
| Net cash provided by operating activities |
$ |
268,206 |
|
|
$ |
224,803 |
|
|
$ |
442,878 |
|
|
$ |
462,747 |
|
| Purchases of property and equipment |
(46,978) |
|
|
(65,054) |
|
|
(149,054) |
|
|
(171,464) |
|
| Free cash flow |
221,228 |
|
|
159,749 |
|
|
293,824 |
|
|
291,283 |
|
Change in outstanding factoring balances |
(2,911) |
|
|
19,056 |
|
|
22,205 |
|
|
47,992 |
|
| Adjusted free cash flow |
$ |
218,317 |
|
|
$ |
178,805 |
|
|
$ |
316,029 |
|
|
$ |
339,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecast |
|
Three Months Ending
November 30, 2026 |
|
Fiscal Year Ending
November 30, 2026 |
|
Low |
|
High |
|
Low |
|
High |
| Revenue |
$ |
2,410,000 |
|
|
$ |
2,460,000 |
|
|
$ |
9,826,543 |
|
|
$ |
9,876,543 |
|
Revenue growth (decline), as reported under U.S. GAAP |
(5.65) |
% |
|
(3.65) |
% |
|
— |
% |
|
0.50 |
% |
| Foreign exchange impact |
0.65 |
% |
|
0.65 |
% |
|
(0.80) |
% |
|
(0.80) |
% |
| Constant currency revenue decline |
(5.00) |
% |
|
(3.00) |
% |
|
(0.80) |
% |
|
(0.30) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecast |
|
Three Months Ending
November 30, 2026 |
|
Fiscal Year Ending
November 30, 2026 |
|
Low |
|
High |
|
Low |
|
High |
| Operating income (loss) |
$ |
174,400 |
|
|
$ |
184,400 |
|
|
$ |
(521,925) |
|
|
$ |
(511,925) |
|
| Impairment charge |
— |
|
|
— |
|
|
1,050,000 |
|
|
1,050,000 |
|
| Amortization of intangibles |
85,000 |
|
|
85,000 |
|
|
391,421 |
|
|
391,421 |
|
| Share-based compensation |
19,700 |
|
|
19,700 |
|
|
96,279 |
|
|
96,279 |
|
| Acquisition-related, integration and restructuring expenses |
30,000 |
|
|
30,000 |
|
|
172,867 |
|
|
172,867 |
|
| Step-up depreciation |
900 |
|
|
900 |
|
|
8,982 |
|
|
8,982 |
|
| Loss on held for sale |
— |
|
|
— |
|
|
8,420 |
|
|
8,420 |
|
| Non-GAAP operating income |
$ |
310,000 |
|
|
$ |
320,000 |
|
|
$ |
1,206,044 |
|
|
$ |
1,216,044 |
|
(1) For the three and nine months ended August 31, 2026, acquisition-related, integration and restructuring expenses primarily included restructuring costs associated with our recent cost reduction initiatives, including severance and employee-related costs. Restructuring expenses also included costs associated with facilities consolidation, including lease terminations. For the three and nine months ended August 31, 2025, acquisition-related, integration and restructuring costs primarily included integration costs associated with our combination with Webhelp and restructuring expenses. These costs primarily included severance and employee-related costs, costs associated with facilities consolidation, including lease terminations to integrate the businesses, and information technology system consolidation costs.
(2) For the nine months ended August 31, 2026, debt costs included debt extinguishment costs associated with our early redemption of $600 million of our senior notes due in August 2026. For the nine months ended August 31, 2025, debt costs included debt extinguishment costs associated with our restated credit agreement and our voluntary prepayment of a portion of our outstanding term loans.
(3) For the nine months ended August 31, 2025, legal settlement costs consist of amounts incurred to settle certain litigation arising outside of the ordinary course of business.
(4) Foreign currency losses (gains), net are included in other expense (income), net and primarily consist of gains and losses recognized on the revaluation and settlement of foreign currency transactions and realized and unrealized gains and losses on derivative contracts that do not qualify for hedge accounting.
(5) The tax effect of taxable and deductible non-GAAP adjustments was calculated using the tax-deductible portion of the expenses and applying the entity-specific, statutory tax rates applicable to each item during the respective periods presented.
(6) Diluted EPS is calculated using the two-class method, which is an earnings allocation proportional to the respective ownership among holders of common stock and participating securities. Restricted stock awards and certain restricted stock units granted to employees are considered participating securities. For the purposes of calculating diluted EPS for the three and nine months ended August 31, 2026, participating securities did not participate in net losses prior to dividends. For the purposes of calculating diluted EPS for the three and nine months ended August 31, 2025, net income attributable to participating securities was approximately 4.8%.
(7) For the purposes of calculating non-GAAP net income attributable to common shareholders and non-GAAP diluted EPS, non-GAAP net income attributable to participating securities was approximately 4.8% and 4.8% of non-GAAP net income, respectively, for the three months ended August 31, 2026 and 2025, and 4.9% and 4.8% of non-GAAP net income, respectively, for the nine months ended August 31, 2026 and 2025, and was excluded from non-GAAP net income attributable to common shareholders to calculate non-GAAP diluted EPS.
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