Concentrix Corporation (NASDAQ: CNXC), a global technology and services firm, reported its financial results for the second quarter of fiscal 2025, ending May 31, with a revenue of approximately $2.417 billion. This marks an increase of 1.5% year-over-year on both a reported and constant currency basis. However, operating income decreased to $148.3 million, representing a 1.3% drop compared to the same quarter last year.

Non-GAAP operating income for the quarter was $303.7 million, down from $321.1 million year-on-year, leading to a non-GAAP operating margin of 12.6%, a decrease of 90 basis points from the previous year’s 13.5%. Adjusted EBITDA was reported at $357.3 million, equating to a margin of 14.8%, down from 15.9% in the prior year.

Net income plummeted 37% to $42.1 million compared to $66.8 million in the same quarter of 2024. Diluted earnings per share (EPS) were reported at $0.63, a decline of 35.7% year-on-year, while non-GAAP diluted EPS edged up slightly to $2.70, an increase of $0.01 from the prior year.

The company generated $200.3 million in adjusted free cash flow for the quarter, which is a substantial improvement of approximately $240 million sequentially from Q1. Concentrix also returned about $67 million to shareholders, which included repurchases of approximately 920,000 common shares at an average cost of $49 per share.

For the third quarter of fiscal 2025, Concentrix anticipates revenue in the range of $2.445 billion to $2.470 billion. This forecast includes an expected constant currency revenue growth between 1% and 2%. The operating income is projected to be between $162 million and $172 million, with non-GAAP operating income estimated to be in the range of $318 million to $328 million.

Full-year guidance has been raised, with reported revenue now expected to be between $9.720 billion and $9.815 billion, reflecting a constant currency revenue growth projection of 1% to 2% for fiscal 2025. Full-year operating income is expected to be between $675 million and $695 million, with non-GAAP operating income forecasted to range from $1.300 billion to $1.320 billion.

The company expects non-GAAP diluted EPS for the full year to be in the range of $11.53 to $11.76. Adjusted free cash flow for the entire fiscal year is projected to be between $625 million and $650 million. Concentrix plans to continue returning capital to shareholders through share repurchases and dividends, targeting a total return of approximately $240 million for fiscal 2025.

Cash and cash equivalents at the end of the second quarter stood at $343 million, alongside total debt of approximately $4.9 billion.