What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-04-04 compared with 2024-10-04 · 141 added, 189 removed, 263 unchanged (56% of the section changed)

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References to “we,” “our,” “us,” or “the Company” or “Concentrix” refer to Concentrix Corporation and its subsidiaries.

Certain comparisons of the year-over-year changes in revenue and cost of revenue in the discussion of our results of operations for the three and nine months ended August 31, 2024 and 2023 include a supplemental comparison as if the Webhelp Combination had occurred at the beginning of fiscal year 2023.

These supplemental comparisons can be identified by the language “if the Webhelp Combination had occurred at the beginning of fiscal year 2023”.

The amounts used in these supplemental comparisons were determined by adding (a) the Webhelp results of operations for the relevant period in fiscal year 2023 prior to the Webhelp Combination and making reclassification and adjustments of International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”) to U.S.

GAAP for the periods, consistent with the adjustments made in our unaudited proforma condensed combined financial statements filed as Exhibit 99.2 to our Current Report on Form 8-K filed with the SEC on March 22, 2024 and (b) the Company’s consolidated results of operations for the relevant period in fiscal year 2023.

We believe the presentation of this supplemental information is useful because the Webhelp Combination had a significant impact on revenue and cost of revenue for the post-acquisition period and the supplemental comparison enables readers to better understand changes in the combined business.

These supplemental comparisons are provided for informational purposes only and may not necessarily reflect the results of operations that would have occurred had the Webhelp Combination actually occurred as of the beginning of the period referenced.

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Forward-looking statements include, but are not limited to, statements regarding our expected future financial condition, results of operations, effective tax rate, cash flows, leverage, liquidity, business strategy, competitive position, demand for our services and seasonality of our business, international operations, acquisition opportunities and the anticipated impact of acquisitions, capital allocation and dividends, growth opportunities, spending, capital expenditures and investments, debt repayment, competition and market forecasts, industry trends, our human capital resources and sustainability initiatives, and statements that include words such as believe, expect, may, will, provide, could, should, and other similar expressions.

Forward-looking statements include, but are not limited to, statements regarding our expected future financial condition and growth, cash flows, results of operations, effective tax rate, leverage, liquidity, business strategy, competitive position, demand and market acceptance for our services and products portfolio, seasonality of our business, international operations, the potential benefits associated with use of the Company’s technology and services, acquisition opportunities and the anticipated impact of acquisitions, capital allocation and dividends, growth opportunities, spending, capital expenditures and investments, debt repayment and obligations, competition and market forecasts, industry trends, our human capital resources and sustainability initiatives, and statements that include words such as believe, expect, may, will, provide, could, should, 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 our ability to realize estimated cost savings, synergies or other anticipated benefits of our combination with Webhelp, or that such benefits may take longer to realize than expected;

risks related to general economic conditions, including consumer demand, interest rates, inflation, supply chains, and the effects of the conflicts in Ukraine and Gaza;

risks related to general economic conditions and their effects on our clients’ businesses, including consumer demand, interest rates, inflation, international tariffs, supply chains, and the effects of the conflicts in Ukraine and Gaza;

cyberattacks on our or our clients’ networks and information technology systems;

uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of generative artificial intelligence;

uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of artificial intelligence (“AI”) and generative AI;

the failure of our staff and contractors to adhere to our and our clients’ controls and processes;

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the level of business activity of our clients and the market acceptance and performance of their products and services;

the demand for customer experience solutions and technology;

the demand for end-to-end solutions and technology;

damage to our reputation through the actions or inactions of third parties;

changes in law, regulations or regulatory guidance;

changes in law, regulations or regulatory guidance, or changes in their interpretation or enforcement;

the operability of our communication services and information technology systems and networks;

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increases in the cost of labor;

the inability to successfully identify complete and integrate strategic acquisitions or investments;

the inability to successfully identify, complete and integrate strategic acquisitions or investments or realize anticipated benefits within the expected timeframe, including with respect to our combination with Webhelp;

higher than expected tax liabilities;

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We do not intend to update forward-looking statements, which speak only as of the date hereof, unless otherwise required by law.

Concentrix, Webhelp, the Concentrix logo, the Webhelp logo, and all other Concentrix company, product, and services names and slogans are trademarks or registered trademarks of Concentrix Corporation and its subsidiaries.

Concentrix, Webhelp, and all 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.

Overview and Basis of Presentation

Concentrix is a global technology and services leader that designs, builds, and runs fully integrated, end-to-end solutions at speed and scale across the enterprise, helping iconic and disruptive brands drive deep understanding, full lifecycle engagement, and differentiated experiences for their end-customers around the world.

We provide end-to-end capabilities, including customer experience (“CX”) process optimization, technology innovation and design engineering, front- and back-office automation, analytics, and business transformation services to clients in five primary industry verticals.

Our differentiated portfolio of solutions supports Fortune Global 500 as well as new economy clients across the globe in their efforts to deliver an optimized, consistent brand experience across all channels of communication, such as voice, chat, email, social media, asynchronous messaging, and custom applications.

Concentrix is a global technology and services leader that powers our clients’ brand experiences and digital operations.

We design, build, and run fully integrated, end-to-end solutions, including customer experience (“CX”) process optimization, technology innovation and design engineering, front- and back-office automation, analytics and business transformation services to clients in five primary industry verticals.

Our differentiated portfolio of solutions supports Fortune Global 500 as well as new economy clients across the globe in their efforts to deliver an optimized, consistent brand experience across all channels of communication, including voice, chat, email, generative AI-powered self-service, social media, asynchronous messaging, and custom applications.

We strive to deliver exceptional services globally supported by our deep industry knowledge, technology and security practices, talented people, and digital and analytics expertise.

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Webhelp Combination

On September 25, 2023, we completed our acquisition (the “Webhelp Combination”) of all of the issued and outstanding capital stock (the “Shares”) of Marnix Lux SA, a public limited liability company ( société anonyme ) incorporated under the laws of the Grand Duchy of Luxembourg (“Webhelp Parent”) and the parent company of the Webhelp business (“Webhelp”), from the holders thereof (the “Sellers”).

Webhelp was a leading provider of CX solutions, including sales, marketing, and payment services, with significant operations and client relationships in Europe, Latin America, and Africa.

The acquisition was completed pursuant to the terms and conditions of the Share Purchase and Contribution Agreement, dated as of June 12, 2023, as amended by First Amendment to Share Purchase and Contribution Agreement, dated as of July 14, 2023 by and among Concentrix, OSYRIS S.à r.l., a private limited liability company ( société à responsabilité limitée ) incorporated under the laws of the Grand Duchy of Luxembourg and a direct wholly owned subsidiary of Concentrix Corporation (“Purchaser”), Webhelp Parent, the Sellers, and certain representatives of the Sellers.

The purchase consideration for the acquisition of the Shares is valued at approximately $3,774.8 million, net of cash and restricted cash acquired.

On September 25, 2023, we completed our acquisition (the “Webhelp Combination”) of all of the issued and outstanding capital stock (the “Shares”) of Marnix Lux SA, (“Webhelp”), from the holders thereof (the “Sellers”).

The purchase consideration for the acquisition of the Shares was valued at approximately $3,774.8 million, net of cash and restricted cash acquired.

Revenue and Cost of Revenue

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Our cost of revenue as a percentage of revenue has also fluctuated in the past, based primarily on our ability to achieve economies of scale, the management of our operating expenses, and the timing and costs incurred related to our acquisitions and investments.

Through the third quarter of fiscal years 2024 and 2023, approximately 87% and 81%, respectively, of our consolidated revenue was generated from our non-U.S.

Through the first quarter of fiscal years 2025 and 2024, approximately 89% and 79%, respectively, of our consolidated revenue was generated from our non-U.S.

operations, and approximately 55% and 50%, respectively, of our consolidated revenue was priced in U.S.

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Accordingly, we could be subject to pricing and labor cost pressures and may experience a decrease in revenue and operating income.

Our business operates globally in over 70 countries across six continents.

We have significant concentrations in the Philippines, India, Brazil, the United States, Türkiye , Colombia, Egypt, the United Kingdom, Morocco, China, and elsewhere throughout EMEA, Latin America, and Asia-Pacific.

Our business operates globally in 75 countries across six continents.

We have significant concentrations in the Philippines, India,

Brazil, the United States, Egypt, Türkiye , Colombia, Malaysia, Morocco, China, the United Kingdom, and elsewhere throughout EMEA, Latin America, and Asia-Pacific.

Accordingly, we would be impacted by economic strength or weakness in these geographies and by the strengthening or weakening of local currencies relative to the U.S.

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Critical Accounting Policies and Estimates

During the three and nine months ended August 31, 2024, there were no material changes to our critical accounting policies and estimates previously disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2023.

Results of Operations – Three and Nine Months Ended August 31, 2024 and 2023

Three Months Ended Nine Months Ended

August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

($ in thousands) ($ in thousands)

During the three months ended February 28, 2025, there were no material changes to our critical accounting policies and estimates previously disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2024.

Results of Operations – Three Months Ended February 28, 2025 and February 29, 2024

Three Months Ended

February 28, 2025 February 29, 2024

($ in thousands)

Revenue $ 2,372,222 $ 2,402,748

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Net income $ 70,257 $ 52,102

Three Months Ended % Change Nine Months Ended % Change

August 31, 2024 August 31, 2023 2024 to 2023

($ in thousands)

Three Months Ended % Change

February 28, 2025 February 29, 2024 2025 to 2024

($ in thousands)

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Technology and consumer electronics $ 657,692 $ 665,102 (1.1) %

Retail, travel and ecommerce 593,736 322,394 84.2% 1,745,529 935,850 86.5%

Retail, travel and e-commerce

583,898 583,712 — %

Communications and media 371,000 380,165 (2.4) %

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Our solutions focus on customer engagement, process optimization, and back-office automation.

Our revenue increased by 46.2% in the three months ended August 31, 2024, compared to the three months ended August 31, 2023, primarily as a result of the Webhelp Combination.

For the three months ended August 31, 2024, revenue across all verticals increased, primarily as a result of the Webhelp Combination.

The increase in revenue was partially offset by the negative effect of foreign currency translation of $22.5 million, or 1.4%.

The unfavorable foreign currency translation effect on revenue was primarily due to the weakening of the Argentine peso and Japanese yen against the U.S.

If the Webhelp Combination had occurred at the beginning of fiscal year 2023, our revenue would have increased by 0.9% in the three months ended August 31, 2024.

Our revenue increased by 46.8% in the nine months ended August 31, 2024, compared to the nine months ended August 31, 2023, primarily as a result of the Webhelp Combination.

For the nine months ended August 31, 2024, revenue across all verticals increased, primarily as a result of the Webhelp Combination.

The increase in revenue was partially offset by the negative effect of foreign currency translation of $58.3 million, or 1.2%.

The unfavorable foreign currency translation effect on revenue was primarily due to the weakening of the Argentine peso and Japanese yen against the U.S.

If the Webhelp Combination had occurred at the beginning of fiscal year 2023, our revenue would have increased by 1.5% in the nine months ended August 31, 2024.

Our revenue decreased by 1.3% for the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

Contributing to the decrease in revenue was the negative effect of changes in foreign currency exchange rates of $62.4 million, or 2.6%.

The unfavorable foreign currency rate impact on revenue was primarily due to the weakening of the euro, the Brazilian real and several other currencies against the U.S.

Partially offsetting this decrease in revenue due to foreign currency exchange rates were increases in our revenue due to underlying client volumes.

For the three months ended February 28, 2025, revenue across all verticals decreased in comparison to the prior period, with the exception of retail, travel, and e-commerce which remained flat over the prior period.

Revenue in our technology and consumer electronics vertical decreased 1.1%, which included a decrease as a result of foreign currency exchange rates partially offset by increases in underlying business, primarily from several social media and internet-related service clients.

Revenue in our retail, travel and e-commerce vertical remained flat, which included increases in underlying business, primarily from several larger clients in this vertical, offset by a decrease as a result of foreign currency exchange rates.

Revenue in our communication and media vertical decreased 2.4%, which included a decrease as a result of foreign currency exchange rates, partially offset by increases in underlying business primarily from several clients in the vertical.

Revenue in our banking, financial services and insurance vertical decreased 0.1%, which included a decrease as a result of foreign currency exchange rates partially offset by increases in underlying business, primarily from several clients in the vertical.

Revenue in our healthcare vertical decreased 0.7%, which included a decrease as a result of foreign currency exchange rates and decreases in underlying business, primarily from a larger client in the vertical.

Revenue in our other vertical decreased 5.8%, which included a decrease as a result of foreign currency exchange rates and decreases in underlying business primarily related to an automotive client.

Cost of Revenue, Gross Profit and Gross Margin Percentage

Three Months Ended % Change Nine Months Ended % Change

August 31, 2024 August 31, 2023 2024 to 2023

($ in thousands) ($ in thousands)

Three Months Ended % Change

February 28, 2025 February 29, 2024 2025 to 2024

($ in thousands)

Cost of revenue $ 1,516,323 $ 1,546,219 (1.9)%

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Cost of revenue consists primarily of personnel costs.

Gross margin can be impacted by resource location, client mix and pricing, additional lead time for programs to be fully scalable, and transition and initial set-up costs.

Our cost of revenue increased by 46.6% in the three months ended August 31, 2024, compared to the three months ended August 31, 2023, primarily due to the increases in our revenue and personnel costs from the Webhelp Combination.

The increases were partially offset by a $42.2 million, or 4.1%, reduction in our cost of revenue due to foreign currency translation.

The foreign currency translation impact on our cost of revenue was caused primarily by the weakening of the Argentine peso, Egyptian pound, and Philippine peso against the U.S.

If the Webhelp Combination had occurred at the beginning of fiscal year 2023, our cost of revenue would have increased by 1.2% in the three months ended August 31, 2024.

Our cost of revenue increased by 46.8% in the nine months ended August 31, 2024, compared to the nine months ended August 31, 2023, primarily due to the increases in our revenue and personnel costs from the Webhelp Combination.

The increases were partially offset by a $103.2 million, or 3.3%, reduction in our cost of revenue due to foreign currency translation.

The foreign currency translation impact on our cost of revenue was caused primarily by the weakening of the Argentine peso, Philippine peso, and Egyptian pound against the U.S.

If the Webhelp Combination had occurred at the beginning of fiscal year 2023, our cost of revenue would have increased by 1.4% in the nine months ended August 31, 2024.

Our gross profit increased by 45.6% in the three months ended August 31, 2024, compared to the three months ended August 31, 2023, primarily due to the increase in revenue, contributions from the Webhelp Combination, and a net favorable foreign currency impact of $19.7 million on gross profit, partially offset by the increase in cost of revenue.

Our gross margin percentage for the three months ended August 31, 2024 decreased to 36.2% from 36.4% in the prior fiscal year period due to changes in the mix of geographies where our services were delivered.

Our gross profit increased by 46.9% in the nine months ended August 31, 2024, compared to the nine months ended August 31, 2023, primarily due to the increase in revenue, profit contributions from the Webhelp Combination, and a net favorable foreign currency impact of $44.9 million on gross profit, partially offset by the increase in cost of revenue.

Our gross margin percentage for the nine months ended August 31, 2024 increased to 36.0% from 35.9% in the prior fiscal year period due to changes in the mix of geographies where our services were delivered.

Gross margins can be impacted by resource location, client mix and pricing, additional lead time for programs to be fully scalable, and transition and initial set-up costs.

Our cost of revenue decreased by 1.9% in the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

Contributing to the decrease in cost of revenue was a $79.3 million, or 5.1%, net reduction in our cost of revenue due to changes in foreign currency exchange rates.

The foreign currency exchange rate impact on our cost of revenue was caused primarily by the weakening of the euro and Egyptian pound against the U.S.

The decrease in cost of revenue as a result of foreign currency exchange rates was partially offset by increases in underlying business.

Our gross profit decreased by 0.1% in the three months ended February 28, 2025, compared to the three months ended February 29, 2024, primarily due to decreases in gross profit associated with underlying business partially offset by a net favorable foreign currency impact of $16.9 million on gross profit.

Our gross margin percentage for the three months ended February 28, 2025 increased to 36.1% from 35.6% in the prior fiscal year period due to the changes previously described.

Selling, General and Administrative Expenses

Three Months Ended % Change Nine Months Ended % Change

August 31, 2024 August 31, 2023 2024 to 2023

($ in thousands) ($ in thousands)

Three Months Ended % Change

February 28, 2025 February 29, 2024 2025 to 2024

($ in thousands)

Selling, general and administrative expenses

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Selling, general and administrative expenses also include the cost of our global delivery facilities, utility expenses, hardware and software costs related to our technology infrastructure, legal and professional fees, depreciation on our technology and facility equipment, amortization of intangible assets resulting from acquisitions, marketing expenses, and acquisition-related and integration expenses.

Our selling, general and administrative expenses increased by 64.8% in the three months ended August 31, 2024, compared to the three months ended August 31, 2023, primarily due to incremental selling, general and administrative expenses associated with the Webhelp Combination, an increase in amortization expenses of $77.0 million, primarily associated with the intangible assets from the

Webhelp Combination, and an increase in acquisition-related and integration expenses of $17.6 million.

These increases were partially offset by a $9.5 million reduction in selling, general and administrative expenses due to foreign currency translation impacts.

As a percentage of revenue, selling, general and administrative expenses increased from 26.4% in the third fiscal quarter of 2023 to 29.8% in the third fiscal quarter of 2024 due to the net effect of the changes described.

Our selling, general and administrative expenses increased by 66.9% in the nine months ended August 31, 2024, compared to the nine months ended August 31, 2023, primarily due to incremental selling, general and administrative expenses associated with the Webhelp Combination, an increase in amortization expenses of $230.6 million, primarily associated with the intangible assets from the Webhelp Combination, and an increase in acquisition-related and integration expenses of $65.7 million.

These increases were partially offset by a $21.9 million reduction in selling, general and administrative expenses due to foreign currency translation impacts.

As a percentage of revenue, selling, general and administrative expenses increased from 26.1% in the nine months ended August 31, 2023 to 29.7% in the nine months ended August 31, 2024 due to the net effect of the changes described.

Our selling, general and administrative expenses decreased by 3.0% in the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

Contributing to the decrease was a $22.2 million reduction in selling, general and administrative expenses due to changes in foreign currency exchange rates.

As a percentage of revenue, selling, general and administrative expenses decreased from 29.5% in the first fiscal quarter of 2024 to 29.0% in the first fiscal quarter of 2025 primarily due to changes in foreign currency exchange rates.

Operating Income

Three Months Ended % Change Nine Months Ended % Change

August 31, 2024 August 31, 2023 2024 to 2023

($ in thousands) ($ in thousands)

Three Months Ended % Change

February 28, 2025 February 29, 2024 2025 to 2024

($ in thousands)

Operating income $ 168,867 $ 148,439 13.8%

Operating margin 7.1 % 6.2 %

Our operating income decreased during the three and nine months ended August 31, 2024, compared to the three and nine months ended August 31, 2023, due to the increase in selling, general and administrative expenses partially offset by the increase in gross profit.

Our operating margin decreased during the three and nine months ended August 31, 2024, compared to the three and nine months ended August 31, 2023, due to the increase in selling, general and administrative expenses as a percentage of revenue partially offset by the increase in gross margin percentage.

Our operating income increased during the three months ended February 28, 2025, compared to the three months ended February 29, 2024, primarily due to the decrease in selling, general and administrative expenses partially offset by a decrease in gross profit.

Our operating margin in the first quarter of 2025 increased from the first quarter of 2024 due to the decrease in selling, general and administrative expenses as a percentage of revenue and the increase in gross margin percentage.

Interest Expense and Finance Charges, Net

Three Months Ended % Change Nine Months Ended % Change

August 31, 2024 August 31, 2023 2024 to 2023

($ in thousands) ($ in thousands)

Three Months Ended % Change

February 28, 2025 February 29, 2024 2025 to 2024

($ in thousands)

Interest expense and finance charges, net $ 72,994 $ 82,439 (11.5)%

Percentage of revenue 3.1 % 3.4 %

Amounts recorded in interest expense and finance charges, net consist primarily of interest on our senior notes issued in August 2023, interest expense on term loan borrowings under our senior credit facility, interest expense on borrowings under our accounts receivable securitization facility (the “Securitization Facility”), interest expense on the promissory note issued by us to certain Sellers in connection with the Webhelp Combination (the “Sellers’ Note”) and financing expenses incurred in fiscal year 2023 associated with our commitment letter dated March 29, 2023 (the “Bridge Commitment Letter,” and the commitments pursuant to the Bridge Commitment Letter, the “Bridge Facility”), entered into in connection with the Webhelp Combination.

The increase in interest expense and finance charges, net for the three months ended August 31, 2024, compared to the three months ended August 31, 2023, was primarily due to an increase in interest expense on our senior notes of $24.6 million, interest expense, including imputed interest, associated with the Sellers’ Note of $8.1 million, and a decrease in interest income related to the senior notes proceeds of $7.8 million incurred in the prior year period that did not recur.

The senior notes were outstanding for only a portion of the prior year period and the Sellers’ Note was not outstanding in the prior year period.

These changes were partially offset by a decrease of Bridge Facility financing fees of $10.7 million incurred in the third quarter of fiscal year 2023 that did not recur in the current period.

The increase in interest expense and finance charges, net for the nine months ended August 31, 2024, compared to the nine months ended August 31, 2023, was primarily due to an increase in interest expense on our senior notes of $98.2 million, interest expense, including imputed interest, associated with the Sellers’ Note of $24.0 million and a decrease in interest income related to the

senior notes proceeds of $7.8 million incurred in the prior year period that did not recur.

The senior notes were outstanding for only a portion of the prior year period and the Sellers’ Note was not outstanding in the prior year period.

These changes were partially offset by a decrease of Bridge Facility financing fees and credit facility amendment fees of $22.5 million incurred in the nine months ended August 31, 2023 that did not recur.

Amounts recorded in interest expense and finance charges, net consist primarily of interest expense on our senior notes issued in August 2023, interest expense on term loan borrowings under our senior credit facility, interest expense on borrowings under our accounts receivable securitization facility (the “Securitization Facility”), and interest expense on the promissory note issued by us to certain Sellers in connection with the Webhelp Combination (the “Sellers’ Note”).

The decrease in interest expense and finance charges, net for the three months ended February 28, 2025, compared to the three months ended February 29, 2024, was primarily due to a decrease in interest expense on our term loan borrowings under our senior credit facility of $11.7 million.

The decrease is a result of the decrease in outstanding borrowings and a decrease in the effective interest rate on the borrowings.

The decrease was partially offset by an increase in interest expense on our Securitization Facility of $2.2 million primarily due to the increase in outstanding borrowings in comparison to the prior year period.

Other Expense (Income), Net

Three Months Ended % Change Nine Months Ended % Change

August 31, 2024 August 31, 2023 2024 to 2023

($ in thousands) ($ in thousands)

Three Months Ended % Change

February 28, 2025 February 29, 2024 2025 to 2024

($ in thousands)

Other expense (income), net $ (4,919) $ (6,824) (27.9)%

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Amounts recorded as other expense (income), net primarily include foreign currency transaction gains and losses other than cash flow hedges, investment gains and losses, the non-service component of pension costs, other non-operating gains and losses, and changes in acquisition contingent consideration related to the Webhelp Combination.

Other expense (income), net in the three months ended August 31, 2024 was expense of $46.0 million, compared to expense of $6.2 million in the three months ended August 31, 2023.

The change in other expense (income), net over the prior fiscal year period was primarily due to net foreign currency losses and expense of $10.5 million due to the change in acquisition contingent consideration associated with the Webhelp Combination during the three months ended August 31, 2024

Other expense (income), net in the nine months ended August 31, 2024 was expense of $19.8 million, compared to expense of $19.3 million in the nine months ended August 31, 2023.

The change in other expense (income), net over the prior fiscal year period was primarily due to net foreign currency losses primarily offset by income of $11.1 million due to the change in acquisition contingent consideration associated with the Webhelp Combination during the nine months ended August 31, 2024.

Other expense (income), net in the three months ended February 28, 2025 was income of $4.9 million, compared to income of $6.8 million in the three months ended February 29, 2024.

The change in other expense (income), net over the prior fiscal year period was primarily due to a decrease in income of $12.9 million related to the change in acquisition contingent consideration associated with the Webhelp Combination partially offset by net foreign currency gains of $10.8 million.

Provision for Income Taxes

Three Months Ended % Change Nine Months Ended % Change

August 31, 2024 August 31, 2023 2024 to 2023

($ in thousands) ($ in thousands)

Three Months Ended % Change

February 28, 2025 February 29, 2024 2025 to 2024

($ in thousands)

Provision for income taxes $ 30,535 $ 20,722 47.4%

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Our provision for income taxes consists of our current and deferred tax expense resulting from our income earned in domestic and international jurisdictions.

Our provision for income taxes decreased in the three and nine months ended August 31, 2024, compared to the three and nine months ended August 31, 2023, primarily due to a decrease in income before taxes.

The effective tax rate for the three and nine months ended August 31, 2024 increased compared to the three and nine months ended August 31, 2023, primarily due to the change in mix of income earned in different tax jurisdictions between periods.

Our provision for income taxes increased in the three months ended February 28, 2025, compared to the three months ended February 29, 2024, primarily due to an increase in income before taxes and income tax expense of $4.3 million related to certain tax law changes, primarily in France.

The effective tax rate for the three months ended February 28, 2025 increased compared to the three months ended February 29, 2024, primarily due to the tax law changes and a change in the mix of income earned in different tax jurisdictions between periods.

Certain Non-GAAP Financial Information

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

• Non-GAAP net income, which is net income excluding the tax effected impact of acquisition-related and integration expenses, including related restructuring costs, amortization of intangible assets, share-based compensation, imputed interest related to the sellers’ note issued in connection with the combination with Webhelp (the “sellers’ note”), change in acquisition contingent consideration and foreign currency losses (gains), net.

Non-GAAP net income also excludes the income tax effect of certain legal entity restructuring activity.

• Non-GAAP net income, which is net income excluding the tax effected impact of acquisition-related and integration expenses, including related restructuring costs, step-up depreciation, amortization of intangible assets, share-based compensation, imputed interest related to the Sellers’ Note, 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.

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• Non-GAAP diluted earnings per common share (“EPS”), which is diluted EPS excluding the per share, tax effected impact of acquisition-related and integration expenses, including related restructuring costs, step-up depreciation, amortization of intangible assets, share-based compensation, imputed interest related to the Sellers’ Note, change in acquisition contingent consideration and foreign currency losses (gains), net.

Non-GAAP EPS also excludes the per share income tax effect of certain legal entity restructuring activity.

Non-GAAP EPS excludes net income attributable to participating securities, and the per share, tax-effected impact of adjustments to net income described above reflect only those amounts that are attributable to common shareholders.

Non-GAAP EPS also excludes the per share income tax effect of certain tax law changes.

Non-GAAP EPS excludes net income attributable to participating securities, and the per share, tax-effected impact of adjustments to net income described above that are attributable to common shareholders.

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.

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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.

Three Months Ended Nine Months Ended

August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

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.

Three Months Ended

February 28, 2025 February 29, 2024

($ in thousands, except per share amounts)

1 unchanged sentence

Acquisition-related and integration expenses (1)

Step-up depreciation

18,024 30,173

Step-up depreciation

Amortization of intangibles 105,619 116,302

6 unchanged sentences

Acquisition-related and integration expenses (1)

Step-up depreciation

18,024 30,173

Step-up depreciation

Amortization of intangibles 105,619 116,302

8 unchanged sentences

Acquisition-related and integration expenses (1)

Step-up depreciation

18,024 30,173

Acquisition-related expenses included in interest expense and finance charges, net (1)

— 13,716 — 25,556

Acquisition-related expenses included in other expense (income), net (1)

— 2,064 — 14,493

Step-up depreciation

Imputed interest related to Sellers' Note included in interest expense and finance charges, net 4,186 4,178

6 unchanged sentences

(36,992) (42,960)

Income tax effect of legal entity restructuring (4)

5,363 — 5,363 —

Income tax effect of change in tax law

Non-GAAP net income $ 188,136 $ 175,655

Three Months Ended Nine Months Ended

August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

Three Months Ended

February 28, 2025 February 29, 2024

($ in thousands, except per share amounts)

2 unchanged sentences

Step-up depreciation

0.04 — 0.11 —

Acquisition-related expenses included in interest expense and finance charges, net (1)

— 0.26 — 0.49

Acquisition-related expenses included in other expense (income), net (1)

— 0.04 — 0.28

Imputed interest related to Sellers' Note included in interest expense and finance charges, net 0.06 0.06

1 unchanged sentence

Foreign currency losses (gains), net (2)

0.50 0.07 0.38 0.04

Amortization of intangibles 1.57 1.70

2 unchanged sentences

(0.56) (0.63)

Income tax effect of legal entity restructuring (4)

0.08 — 0.08 —

Income tax effect of change in tax law

Non-GAAP Diluted EPS $ 2.79 $ 2.57

(1) Included in these amounts are a) Bridge Facility financing fees expensed and b) losses associated with non-designated call option contracts put in place to hedge foreign exchange movements in connection with the Webhelp Combination that are included within interest expense and finance charges, net and other expense (income), net, respectively, in the consolidated statement of operations.

(1) For the three months ended February 28, 2025 and February 29, 2024, acquisition-related and integration expenses, including restructuring costs, primarily included integration costs associated with the Company’s combination with Webhelp.

These costs primarily include severance and employee-related costs, costs associated with facilities consolidation, including lease terminations to integrate the businesses, and information technology system consolidation costs.

(2) 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.

The reported amounts for non-GAAP net income and non-GAAP EPS for the three and nine months ended August 31, 2024 include adjustments to exclude these foreign currency losses (gains), net, which were not adjusted in similar non-GAAP measures previously reported for the corresponding period in fiscal year 2023.

In order to enhance comparability, similar adjustments were made for non-GAAP net income and non-GAAP EPS for the three and nine months ended August 31, 2023.

(3) 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.

(4) Represents the income tax impact related to certain legal entity restructuring activity.

Liquidity and Capital Resources

Our primary uses of cash are working capital, capital expenditures to expand our delivery footprint and enhance our technology solutions, debt repayments, and acquisition and integration expenses, including in connection with our September 2023 combination with Webhelp.

Our primary uses of cash are working capital, capital expenditures to expand our delivery footprint and enhance our technology solutions, debt repayments, acquisitions, and acquisition-related and integration expenses, including in connection with the Webhelp Combination.

Our financing needs for these uses of cash have been a combination of operating cash flows and third-party debt arrangements.

8 unchanged sentences

Under the share repurchase program, the board of directors authorized the repurchase of up to $500 million of our common stock from time to time as market and business conditions warrant, including through open market purchases or Rule 10b5-1 trading plans.

In January 2025, our board of directors extended our share repurchase program by authorizing an increase of the amount remaining for share repurchases under the existing share repurchase authorization to $600 million.

The share repurchase program has no termination date and may be suspended or discontinued at any time.

During the three and nine months ended August 31, 2024, we repurchased 607,298 and 1,506,983 shares, respectively, of our common stock under the share repurchase program for approximately $39.3 million and $101.6 million, respectively, in the aggregate.

During the three and nine months ended August 31, 2023, we repurchased 320,105 and 430,529 shares, respectively, of our common stock under the share repurchase program for approximately $27.0 million and $41.9 million, respectively, in the aggregate.

At August 31, 2024, approximately $188.5 million remained available for share repurchases under the existing authorization from our board of directors.

During September 2024, we repurchased 161,613 shares of our common stock for an aggregate purchase price of $10.6 million.

During fiscal years 2024 and 2023, we have paid the following dividends per share approved by our board of directors:

During the three months ended February 28, 2025 and February 29, 2024, we repurchased 539,802 and 237,105 shares, respectively, of our common stock under the share repurchase program for approximately $25.8 million and $21.7 million, respectively, in the aggregate.

At February 28, 2025, approximately $582.3 million remained available for share repurchases under the existing authorization from our board of directors.

During March 2025, we repurchased 315,684 shares of our common stock under the share repurchase program for an aggregate purchase price of $14.5 million.

During fiscal years 2025 and 2024, we paid the following dividends per share approved by our board of directors:

Announcement Date Record Date Per Share Dividend Amount Payment Date

January 19, 2023 January 30, 2023 $0.275 February 10, 2023

March 29, 2023 April 28, 2023 $0.275 May 9, 2023

June 28, 2023 July 28, 2023 $0.275 August 8, 2023

September 27, 2023 October 27, 2023 $0.3025 November 7, 2023

January 24, 2024 February 5, 2024 $0.3025 February 15, 2024

1 unchanged sentence

June 26, 2024 July 26, 2024 $0.3025 August 6, 2024

On September 25, 2024, we announced a cash dividend of $0.33275 per share to stockholders of record as of the close of business on October 25, 2024, payable on November 5, 2024.

September 25, 2024 October 25, 2024 $0.33275 November 5, 2024

January 15, 2025 January 31, 2025 $0.33275 February 11, 2025

On March 26, 2025, we announced a cash dividend of $0.33275 per share to stockholders of record as of the close of business on April 25, 2025, payable on May 6, 2025.

We expect that future cash dividends will be paid on a quarterly basis.

12 unchanged sentences

In addition to aligning the currency of a portion of our interest payments to our euro-denominated cash flows, the arrangements effectively converted $250 million aggregate principal amount of the 2026 Notes and $250 million aggregate principal amount of the 2028 Notes into synthetic fixed euro-based debt at weighted average interest rates of 5.12% and 5.18%, respectively.

Concurrent with entering into the cross-currency interest rate swaps with certain financial institutions, Marnix SAS, an indirect wholly owned subsidiary of Concentrix Corporation, entered into corresponding U.S.

dollar denominated intercompany loan agreements with certain other subsidiaries of Concentrix with identical terms and notional amounts as the underlying $500 million U.S.

dollar denominated senior notes, with reciprocal cross-currency interest rate swaps.

Restated Credit Facility

1 unchanged sentence

and Bank of America, N.A.

to amend and restate the Prior Credit Facility (as amended and restated, the “Restated Credit Facility”).

to amend and restate our prior credit agreement dated as of October 16, 2020 (the “Prior Credit Facility” and as amended and restated, the “Restated Credit Facility”).

The Restated Credit Facility provides for the extension of a senior unsecured revolving credit facility not to exceed an aggregate principal amount of $1,042.5 million.

The Restated Credit Facility also provides for a senior unsecured term loan facility in an aggregate principal amount not to exceed approximately $2,144.7 million (the “Term Loan”), of which $1,850 million was incurred upon the amendment and approximately $294.7 million was drawn on a delayed draw basis (the “Delayed Draw Term Loans”) on the Closing Date.

Aggregate borrowing capacity under the Restated Credit Facility may be increased by up to an additional $500 million by increasing the amount of the revolving credit facility or by incurring additional term loans, in each case subject to the satisfaction of certain conditions set forth in the Restated Credit Facility, including the receipt of additional commitments for such increase.

As of November 30, 2023, the outstanding principal balance on the Term Loan was $1,950 million.

During the three and nine months ended August 31, 2024, we voluntarily prepaid $100 million and $350 million, respectively, of the principal balance on the Term Loan, without penalty, resulting in an outstanding balance at August 31, 2024 of approximately $1,600 million.

The maturity date of the Restated Credit Facility remains December 27, 2026, subject, in the case of the revolving credit facility, to two one-year extensions upon our prior notice to the lenders and the agreement of the lenders to extend such maturity date.

Due to the voluntary prepayments previously described, no principal payment on the term loans is due until fiscal year 2026 with the remaining outstanding principal amount due in full on the maturity date.

As of both February 28, 2025 and November 30, 2024, the outstanding principal balance on the Term Loan was $1,500 million.

During the three months ended February 29, 2024, we voluntarily prepaid $100 million of the principal balance on the Term Loan without penalty.

The maturity date of the Restated Credit Facility is December 27, 2026, subject, in the case of the revolving credit facility, to two one-year extensions upon our prior notice to the lenders and the agreement of the lenders to extend such maturity date.

Due to voluntary prepayments, no principal payment on the term loans is due until the remaining outstanding principal amount is due in full on the maturity date.

Borrowings under the Restated Credit Facility bear interest, in the case of SOFR rate loans, at a per annum rate equal to the applicable SOFR rate (but not less than 0.0%), plus an applicable margin, which ranges from 1.125% to 2.000%, based on the credit ratings of our senior unsecured non-credit enhanced long-term indebtedness for borrowed money plus a credit spread adjustment to the SOFR rate of 0.10%.

1 unchanged sentence

The Restated Credit Facility contains certain loan covenants that are customary for credit facilities of this type and that restrict our ability to take certain actions, including the creation of liens, mergers or consolidations, changes to the nature of our business, and, solely with respect to our subsidiaries, incurrence of indebtedness.

In addition, the Restated Credit Facility contains financial covenants that require us to maintain at the end of each fiscal quarter, (i) a consolidated leverage ratio (as defined in the Restated Credit Facility) not to exceed 3.75 to 1.0 (or for certain periods following certain qualified acquisitions, including the Webhelp Combination, 4.25 to 1.0) and (ii) a consolidated interest coverage ratio (as defined in the Restated Credit Facility) equal to or greater than 3.00 to 1.0.

In addition, the Restated Credit Facility contains financial covenants that require us to maintain at the end of each fiscal quarter, (i) a consolidated leverage ratio (as defined in the Restated Credit Facility) not to exceed 3.75 to 1.0 (or for certain periods following certain qualified acquisitions, 4.25 to 1.0) and (ii) a consolidated interest coverage ratio (as defined in the Restated Credit Facility) equal to or greater than 3.00 to 1.0.

The Restated Credit Facility also contains various customary events of default, including payment defaults, defaults under certain other indebtedness, and a change of control of Concentrix Corporation.

None of our subsidiaries guarantees the obligations under the Restated Credit Facility.

Prior to entering into the Amendment Agreement, obligations under the Prior Credit Facility were secured by substantially all of the assets of Concentrix Corporation and certain of our U.S.

subsidiaries and were guaranteed by certain of our U.S.

subsidiaries.

Borrowings under the Prior Credit Facility bore interest, in the case of term or daily SOFR loans, at a per annum rate equal to the applicable SOFR rate (but not less than 0.0%), plus an adjustment of between 0.10% and 0.25% depending on the interest period of each SOFR loan, plus an applicable margin, which ranged from 1.25% to 2.00%, based on our consolidated leverage ratio.

Borrowings under the Prior Credit Facility that were base rate loans bore interest at a per annum rate equal to (i) the greatest of (a) the Federal Funds Rate in effect on such day plus ½ of 1.00%, (b) the rate of interest last publicly announced by Bank of America as its “prime rate” and (c) the term SOFR rate plus 1.00%, plus (ii) an applicable margin, which ranged from 0.25% to 1.00%, based on our consolidated leverage ratio.

From August 31, 2022 through the date of the Amendment Agreement, the outstanding principal of the term loans under the Prior Credit Facility was payable in quarterly installments of $26.25 million.

At August 31, 2024 and November 30, 2023, no amounts were outstanding under our revolving credit facility.

During the nine months ended August 31, 2023, we voluntarily prepaid $25.0 million of the principal balance on the term loans under the Prior Credit Facility, without penalty.

At February 28, 2025 and November 30, 2024, no amounts were outstanding under our revolving credit facility.

Securitization Facility

On January 14, 2025, we entered into an amendment to the Securitization Facility to (i) increase in the commitment of the lenders to provide available borrowings from up to $600 million to up to $700 million and (ii) extend the termination date of the Securitization Facility from April 24, 2026 to January 14, 2027.

For borrowings that are funded by certain lenders through the issuance of commercial paper, the amendment also reduced the spread to the applicable commercial paper rate from 0.80% to 0.75%.

On April 25, 2024, we entered into an amendment to the Securitization Facility to (i) increase the commitment of the lenders to provide available borrowings from up to $500 million to up to $600 million, (ii) extend the termination date of the Securitization Facility from July 5, 2024 to April 24, 2026, and (iii) amend the interest rate margins, such that borrowings under the Securitization Facility that are funded by certain lenders through such lenders’ issuance of commercial paper bear interest at the applicable commercial paper rate plus a spread of 0.80% and, otherwise, at a bank rate that includes a per annum rate equal to the applicable SOFR rate (subject to a SOFR related adjustment of 0.10%), plus a spread of 0.90%.

2 unchanged sentences

Borrowing availability under the Securitization Facility may be limited by our accounts receivable balances, changes in the credit ratings of our clients comprising the receivables, client concentration levels in the receivables, and certain characteristics of the accounts receivable being transferred (including factors tracking performance of the accounts receivable over time).

other indebtedness, a change in control of Concentrix Corporation, and certain events negatively affecting the overall credit quality of the transferred accounts receivable.

The Securitization Facility contains various affirmative and negative covenants, including a consolidated leverage ratio covenant that is consistent with the Restated Credit Facility and customary events of default, including payment defaults, defaults under certain other indebtedness, a change in control of Concentrix Corporation, and certain events negatively affecting the overall credit quality of the transferred accounts receivable.

Sellers’ Note

4 unchanged sentences

The discounted value is being amortized into interest expense over the two-year term.

As of August 31, 2024 and November 30, 2023, we were in compliance with the debt covenants related to our debt arrangements.

Cash Flows – Nine Months Ended August 31, 2024 and 2023

The following summarizes our cash flows for the nine months ended August 31, 2024 and 2023, as reported in our consolidated statement of cash flows in the accompanying consolidated financial statements.

Nine Months Ended

August 31, 2024 August 31, 2023

Amounts outstanding under the Sellers’ Note have been classified as long-term debt within the consolidated balance sheet based on our ability and intent to refinance on a long-term basis as of February 28, 2025 and November 30, 2024.

As of February 28, 2025 and November 30, 2024, we were in compliance with the debt covenants related to our debt arrangements.

Cash Flows – Three Months Ended February 28, 2025 and February 29, 2024

The following summarizes our cash flows for the three months ended February 28, 2025 and February 29, 2024, as reported in our consolidated statement of cash flows in the accompanying consolidated financial statements.

Three Months Ended

February 28, 2025 February 29, 2024

($ in thousands)

Net cash provided by operating activities

Net cash provided by (used in) operating activities

$ 1,408 $ (46,870)

Net cash used in investing activities (51,281) (60,562)

Net cash provided by (used in) financing activities

Net cash provided by financing activities

102,300 14,444

5 unchanged sentences

Operating Activities

Net cash provided by operating activities was $383.1 million for the nine months ended August 31, 2024, compared to net cash provided by operating activities of $448.7 million for the nine months ended August 31, 2023.

The change over the prior year period was primarily due to unfavorable changes in working capital and the decrease in net income.

Net cash provided by operating activities was $1.4 million for the three months ended February 28, 2025, compared to net cash used in operating activities of $46.9 million for the three months ended February 29, 2024.

The change over the prior year period was primarily due to favorable changes in working capital and an increase in net income.

Investing Activities

Net cash used in investing activities for the nine months ended August 31, 2024 was $183.4 million, compared to $115.7 million for the nine months ended August 31, 2023.

The increase in net cash used in investing activities over the prior year period primarily related to an increase in capital expenditures as a result of the expanded business due to the Webhelp Combination and payment of deferred cash consideration of $4.5 million related to the Webhelp Combination in the first quarter of fiscal year 2024.

Net cash used in investing activities for the three months ended February 28, 2025 was $51.3 million, compared to $60.6 million for the three months ended February 29, 2024.

The decrease in net cash used in investing activities over the prior year period primarily related to a decrease in capital expenditures.

Financing Activities

Net cash used in financing activities for the nine months ended August 31, 2024 was $268.1 million, consisting of principal payments of $350.0 million made on term loan borrowings under our senior credit facility, cash paid for acquired earnout liabilities of $22.7, share repurchases of $101.6 million, a change in funds held for clients of $25.8 million, and dividends of $61.2 million partially offset by net borrowings of $290.5 million under our Securitization Facility.

Net cash provided by financing activities for the nine months ended August 31, 2023 was $1,636.3 million, consisting primarily of proceeds, before expenses, of $2,137.0 million from the issuance of Senior Notes in August 2023, partially offset by principal payments of $25.0 million made on the term loan borrowings under our senior credit facility, net repayments of $356.5 million under

our Securitization Facility, share repurchases of $41.9 million, dividends of $42.9 million, and cash paid of $30.5 million related to debt issuance costs for the Senior Notes, financing fees for the Bridge Facility and amendment fees related to our Restated Credit Agreement.

Net cash provided by financing activities for the three months ended February 28, 2025 was $102.3 million, consisting of net borrowings under our Securitization Facility of $181 million partially offset by share repurchases of $25.8 million, dividends paid of $22.4 million, a deferred acquisition consideration payment of $3.5 million, and a change in funds held for clients of $20.5 million.

Net cash provided by financing activities for the three months ended February 29, 2024 was $14.4 million, consisting primarily of net borrowings of $197.5 million under our Securitization Facility partially offset by principal payments of $100.0 million made on term loan borrowings under our senior credit facility, share repurchases of $21.7 million, a change in funds held for clients of $37.9 million, and dividends of $20.6 million.

Free Cash Flow and Adjusted Free Cash Flow (non-GAAP measures)

Nine Months Ended

August 31, 2024 August 31, 2023

Three Months Ended

February 28, 2025 February 29, 2024

($ in thousands)

Net cash provided by operating activities

Net cash provided by (used in) operating activities

$ 1,408 $ (46,870)

4 unchanged sentences

$ (39,816) $ (81,305)

Our free cash flow was $204.2 million for the nine months ended August 31, 2024 compared to $333.0 million for the nine months ended August 31, 2023.

The decrease in free cash flow for the nine months ended August 31, 2024 compared to the prior fiscal year period was due to the decrease in cash provided by operating activities and an increase in capital expenditures as a result of the expanded business due to the Webhelp Combination.

Our adjusted free cash flow was $255.8 million for the nine months ended August 31, 2024 compared to $333.0 million for the nine months ended August 31, 2023.

The decrease in adjusted free cash flow for the nine months ended August 31, 2024 compared to the prior year period was due to a decrease in free cash flow partially offset by a change in outstanding factoring balances of $51.6 million.

Our free cash flow was a use of cash of $49.2 million for the three months ended February 28, 2025 compared to a use of cash of $102.9 million for the three months ended February 29, 2024.

The increase in free cash flow for the three months ended February 28, 2025 compared to the prior fiscal year period was due to the increase in cash provided by operating activities and a decrease in capital expenditures.

Our adjusted free cash flow was a use of cash of $39.8 million for the three months ended February 28, 2025 compared to a use of cash of $81.3 million for the three months ended February 29, 2024.

The increase in adjusted free cash flow for the three months ended February 28, 2025 compared to the prior year period was due to an increase in free cash flow partially offset by a decrease in the change in outstanding factoring balances.

Capital Resources

As of August 31, 2024, we had total liquidity of $1,469.7 million, which includes undrawn capacity on our revolving credit facility of $1,042.5 million, undrawn capacity of $181.0 million under our Securitization Facility and cash and cash equivalents.

Our cash and cash equivalents totaled $246.2 million and $295.3 million as of August 31, 2024 and November 30, 2023, respectively.

Of our total cash and cash equivalents, 98% and 99% were held by our non-U.S.

legal entities as of August 31, 2024 and November 30, 2023, respectively.

As of February 28, 2025, we had total liquidity of $1,498.5 million, which includes undrawn capacity on our revolving credit facility of $1,042.5 million, undrawn capacity of $148.0 million under our Securitization Facility, and cash and cash equivalents.

Our cash and cash equivalents totaled $308.0 million and $240.6 million as of February 28, 2025 and November 30, 2024, respectively.

Of our total cash and cash equivalents, 98% were held by our non-U.S.

legal entities as of both February 28, 2025 and November 30, 2024.

The cash and cash equivalents held by our non-U.S.

12 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis