Concentrix (CNXC) risk factors, FY2025 10-K

Concentrix's FY2025 10-K, filed Jan 28, 2026, lists 33 risk factors in 3 groups. Against the prior year's 30: 7 new, 4 dropped, 13 substantially reworded.

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Risk factors listed
333 groups
New this year
7vs 30 last year
Dropped
4since the prior 10-K
Substantially reworded
13of those kept
Section length
10k wordsItem 1A

What the changes say

  • Concentrix faces increasing exposure to global operational disruptions, heavy debt obligations, and heightened cybersecurity threats across its delivery centers.

What changed since the prior 10-K

New

  • NewRisks Related to Our Business and Industry

    threat actors, including those supported by nation states, political activists, and organized crime, are well organized and increasingly sophisticated, and we expect they will continue to seek out and attempt to exploit vulnerabilities in our and our clients’ networks and systems

    Nation states and criminal actors may exploit vulnerabilities in networks and systems managing client customer support and confidential data.

  • NewRisks Related to Our Business and Industry

    different laws and regulations, challenges with hiring and retaining adequate staff, inflation, tariffs, longer payment cycles or difficulties in collecting accounts receivable, and seasonal reductions in business activity

    Socio-economic instability, natural disasters, and political unrest in countries like the Philippines, India, and Egypt could disrupt operations.

  • NewRisks Related to Our Business and Industry

    restrictions on our ability to operate, which could have a material adverse effect on our business, results of operations, and financial condition

    New US or international policies could introduce higher taxation, currency restrictions, or limitations on offshore outsourcing.

  • NewRisks Related to Our Business and Industry

    to our clients. Maintenance of, and investment in, this technology is critical to keeping our team productive and the success of our service delivery model

    Technology failures, IT downtime, or rising telecommunication costs could impair service delivery and incur contractual penalties.

  • NewRisks Related to Our Business and Industry

    Impairment charges on goodwill, which represents a significant portion of our total assets and is subject to periodic impairment evaluations, could have a material adverse impact on our financial condition and consolidated results of operations

    Significant negative industry trends or integration issues could trigger impairment charges on goodwill from past acquisitions.

  • NewRisks Related to our Capital Structure

    We may be unable to raise additional capital or service our debt on favorable terms, or at all

    Market disruptions, interest rate fluctuations, or credit rating downgrades could restrict capital access and debt servicing ability.

  • NewRisks Related to Ownership of Our Common Stock

    have similar effects. One of these laws prohibits us from engaging in a business combination with a significant stockholder unless specific conditions are met

    Bylaws designating the Delaware Court of Chancery as the exclusive legal forum limit stockholder choice in disputes.

Dropped

  • DroppedRisks Related to Our Business and Industry

    climate change. Our business continuity, crisis management, and disaster recovery plans and our business interruption insurance may not provide sufficient recovery to compensate for losses that we may incur

  • DroppedRisks Related to Our Business and Industry

    organizations will not elect to perform such services in-house, or that clients will not elect to move services to lower-cost or lower-margin geographies or customer contact channels

  • DroppedRisks Related to Our Business and Industry

    of cash, stock, and a note payable to sellers. We incurred significant transaction costs related to our combination with Webhelp and will continue to incur significant integration-related fees and costs related to our ongoing integration, including facilities and systems consolidation costs and staff-related costs

  • DroppedRisks Related to Our Business and Industry

    We may fail to realize the anticipated benefits of our combination with Webhelp within the anticipated time frame, or at all, which could adversely affect the value of our common stock

Reworded

  • 90% rewrittenRisks Related to Our Business and Industry

    We have pursued and intend to continue to pursue strategic acquisitions or investments and may encounter risks associated with these activities, which could harm our business and operating results

    Added specific mention of incurring integration costs related to the September 2023 Webhelp combination.

  • 82% rewrittenRisks Related to Our Business and Industry

    Cyberattacks or the improper disclosure or control of personal or confidential information could result in liability and harm our reputation, which could adversely affect our business

    Expanded potential attack targets to include partners alongside clients and vendors.

  • 72% rewrittenRisks Related to Our Business and Industry

    Our delivery center activities are located around the world, which may expose us to business risks and disrupt our operations

    Updated delivery center count from 75 to 74 countries and added South Africa to the primary workforce concentration list.

  • 71% rewrittenRisks Related to Our Business and Industry

    We are subject to uncertainties and rapid variability in demand by our clients, and our client contracts include provisions such as termination for convenience, which could cause fluctuations in our revenue and adversely affect our operating results

    Removed language discussing multi-channel service capabilities and geographic demand shifts.

  • 61% rewrittenRisks Related to our Capital Structure

    Our level of indebtedness could have adverse consequences for our business or our financial condition

    Updated total indebtedness figure to $4.65 billion as of November 30, 2025, and expanded consequences of debt.

  • 61% rewrittenRisks Related to Our Business and Industry

    We depend on a variety of communications services and information technology systems and networks, and any failure or increase in the cost of these systems and networks could adversely impact our business and operating results

    Added data centers, servers, and agentic AI infrastructure to the underlying IT and communication dependencies.

  • 45% rewrittenRisks Related to Ownership of Our Common Stock

    Certain provisions of our certificate of incorporation and bylaws and of Delaware law make it difficult for stockholders to change the composition of our board of directors and may discourage hostile takeover attempts that some of our stockholders may consider to be beneficial

    Added specific restrictions on an interested stockholder under Delaware law to the anti-takeover provisions.

  • 40% rewrittenRisks Related to Our Business and Industry

    Historically, our revenue and operating results have fluctuated, and we anticipate that in the future they will continue to fluctuate, which could adversely affect the enterprise value of our Company and the trading value of our common stock

    Added specific geopolitical tensions between India and Pakistan and potential tariffs to macroeconomic fluctuation factors.

  • 38% rewrittenRisks Related to Our Business and Industry

    Uncertainty around, and disruption from, new and emerging technologies, including the increased adoption and utilization of GenAI and agentic AI, may result in risks and challenges that could impact our business

    Was: Uncertainty around, and disruption from, new and emerging technologies, including the increased adoption and utilization of GenAI, may result in risks and challenges that could impact our business

  • 35% rewrittenRisks Related to Our Business and Industry

    Our business is subject to many regulatory requirements, and changes in current regulations or their interpretation and enforcement, or the adoption of new regulations, could significantly increase our cost of doing business

  • 30% rewrittenRisks Related to Our Business and Industry

    Economic downturns, geopolitical tensions, communicable diseases or any other public health crises, and natural disasters could adversely affect our business, results of operations, and financial condition

  • 30% rewrittenRisks Related to Our Business and Industry

    When our staff or contractors fail to adhere to our and our clients’ controls and processes, we may be subject to financial liability or our client relationships or reputation may suffer

    Was: When our staff or contractors fail to adhere to the controls and processes we and our clients have established, we may be subject to financial liability or our client relationships or reputation may suffer

  • 24% rewrittenRisks Related to Our Business and Industry

    We may have higher than anticipated tax liabilities, which could result in a material adverse effect on our business

All 33 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Business and Industry

  1. 01Historically, our revenue and operating results have fluctuated, and we anticipate that in the future they will continue to fluctuate, which could adversely affect the enterprise value of our Company and the trading value of our common stock40% rewritten
  2. 02Cyberattacks or the improper disclosure or control of personal or confidential information could result in liability and harm our reputation, which could adversely affect our business82% rewritten
  3. 03threat actors, including those supported by nation states, political activists, and organized crime, are well organized and increasingly sophisticated, and we expect they will continue to seek out and attempt to exploit vulnerabilities in our and our clients’ networks and systemsNew
  4. 04When our staff or contractors fail to adhere to our and our clients’ controls and processes, we may be subject to financial liability or our client relationships or reputation may suffer30% rewritten
  5. 05Economic downturns, geopolitical tensions, communicable diseases or any other public health crises, and natural disasters could adversely affect our business, results of operations, and financial condition30% rewritten
  6. 06Uncertainty around, and disruption from, new and emerging technologies, including the increased adoption and utilization of GenAI and agentic AI, may result in risks and challenges that could impact our business38% rewritten
  7. 07Our delivery center activities are located around the world, which may expose us to business risks and disrupt our operations72% rewritten
  8. 08different laws and regulations, challenges with hiring and retaining adequate staff, inflation, tariffs, longer payment cycles or difficulties in collecting accounts receivable, and seasonal reductions in business activityNew
  9. 09Our industry is subject to intense competition and dynamic changes in business model, which in turn could cause our operations to suffer
  10. 10The inability to successfully execute our strategy and deliver value for our clients could harm our client relationships and reputation, which in turn could adversely affect our revenue and our results of operations
  11. 11We are subject to uncertainties and rapid variability in demand by our clients, and our client contracts include provisions such as termination for convenience, which could cause fluctuations in our revenue and adversely affect our operating results71% rewritten
  12. 12We depend on a limited number of clients for a significant portion of our revenue, and the loss of business from one or more of these clients could adversely affect our results of operations
  13. 13Our operations, reputation, and results of operations may be damaged through the actions, inactions, or vulnerabilities of third parties
  14. 14Our business is subject to many regulatory requirements, and changes in current regulations or their interpretation and enforcement, or the adoption of new regulations, could significantly increase our cost of doing business35% rewritten
  15. 15restrictions on our ability to operate, which could have a material adverse effect on our business, results of operations, and financial conditionNew
  16. 16If we are unable to retain key personnel, hire, develop, and retain staff with the skills and expertise we need, or manage the costs and utilization rate of our staff, our profitability may be negatively impacted and our operations may be disrupted
  17. 17We depend on a variety of communications services and information technology systems and networks, and any failure or increase in the cost of these systems and networks could adversely impact our business and operating results61% rewritten
  18. 18to our clients. Maintenance of, and investment in, this technology is critical to keeping our team productive and the success of our service delivery modelNew
  19. 19Changes in foreign currency exchange rates have impacted and could continue to impact or adversely affect our business and operating results
  20. 20We have pursued and intend to continue to pursue strategic acquisitions or investments and may encounter risks associated with these activities, which could harm our business and operating results90% rewritten
  21. 21Impairment charges on goodwill, which represents a significant portion of our total assets and is subject to periodic impairment evaluations, could have a material adverse impact on our financial condition and consolidated results of operationsNew
  22. 22We may have higher than anticipated tax liabilities, which could result in a material adverse effect on our business24% rewritten
  23. 23Our results of operations could be adversely affected by litigation and other commitments and contingencies
  24. 24Certain stockholders are able to exercise influence over the composition of our board of directors, matters subject to stockholder approval, and our operations, and actual or potential conflicts of interest may develop

Risks Related to our Capital Structure

  1. 25Our level of indebtedness could have adverse consequences for our business or our financial condition61% rewritten
  2. 26We may be unable to raise additional capital or service our debt on favorable terms, or at allNew
  3. 27Rising interest rates increase the cost of our outstanding borrowings and could adversely affect our net income
  4. 28The terms of our debt arrangements impose restrictions on our ability to operate and could have an adverse effect on our business and results of operations

Risks Related to Ownership of Our Common Stock

  1. 29The share price and trading volume of our common stock has fluctuated and may continue to fluctuate significantly
  2. 30We cannot guarantee the continued payment of dividends on our common stock, or the timing or amount of any such dividends
  3. 31Certain provisions of our certificate of incorporation and bylaws and of Delaware law make it difficult for stockholders to change the composition of our board of directors and may discourage hostile takeover attempts that some of our stockholders may consider to be beneficial45% rewritten
  4. 32have similar effects. One of these laws prohibits us from engaging in a business combination with a significant stockholder unless specific conditions are metNew
  5. 33will be exclusively brought in the Court of Chancery of the State of Delaware (or, if no state court located within the State of Delaware has jurisdiction, the U.S. federal district court for the District of Delaware)

Other Concentrix 10-Ks

  • FY2024 10-K risk factors
    30 risks

    Concentrix Corp operates a global customer experience business facing risks from client concentration, debt from the Webhelp acquisition, and technological disruption from GenAI.

    Filed Jan 28, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.