CNXCHIGH SIGNALFINANCIAL10-K

CNXC experienced a dramatic financial reversal with net income swinging from $251.2M profit to -$1.3B loss, representing a catastrophic -609% decline.

This massive swing from profitability to substantial losses, combined with operating income turning deeply negative at -$918.2M, indicates severe operational distress or major one-time charges that have fundamentally impacted the business. The 32% decline in stockholders' equity further signals significant value destruction that investors should be deeply concerned about.

Comparing 2026-01-28 vs 2025-01-28View on EDGAR →
FINANCIAL ANALYSIS

CNXC's financial picture shows a company in severe distress, with the most alarming change being the swing from $251M in net income to a staggering $1.3B loss, while operating income collapsed to -$918M. Despite strong operating cash flow growth of 21% to $807M, the company's balance sheet deteriorated significantly with stockholders' equity falling 32% and total assets declining 10%, though cash reserves did increase 36% to $327M. The disconnect between strong operating cash flow and massive losses suggests either significant non-cash charges or extraordinary items, but the overall picture signals a company facing fundamental challenges that have severely impacted profitability and shareholder value.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-609.1%
$251.2M-$1.3B

Net income declined 609.1% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-254%
$596.4M-$918.2M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Cash & Equivalents
Balance Sheet
+36.1%
$240.6M$327.3M

Cash position surged 36.1% — strong cash generation or capital raise providing significant financial cushion.

Stockholders Equity
Balance Sheet
-32.1%
$4.0B$2.7B

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Share Buybacks
Cash Flow
+24%
$136.1M$168.7M

Share repurchases increased 24% — management returning capital, signals confidence in intrinsic value.

Operating Cash Flow
Cash Flow
+20.9%
$667.5M$807.0M

Operating cash flow grew 20.9% — strong conversion of earnings to cash, healthy business fundamentals.

Total Assets
Balance Sheet
-10.3%
$12.0B$10.8B

Total assets contracted 10.3% — asset sales, write-downs, or balance sheet optimization underway.

Current Liabilities
Balance Sheet
+10%
$2.0B$2.2B

Current liabilities rose 10% — increased short-term obligations, watch current ratio.

LANGUAGE CHANGES
NEW — 2026-01-28
PRIOR — 2025-01-28
ADDED
As of January 16, 2026, there were 61,597,304 shares of common stock issued and outstanding.
Our average client tenure for our top 30 clients is 16 years.
Our strategic verticals include: technology and consumer electronics; retail, travel and e-commerce; communications and media; banking, financial services and insurance; and healthcare.
health insurance companies 3 of the top 5 global healthcare companies 10 of the top 10 global automotive companies Through our technology-infused solutions, our clients benefit from having a single partner that can deliver integrated solutions globally at scale, enabling them to address the entirety of the customer journey, from acquisition to support to renewal.
Strategic Growth We have a long history of growth through strategic acquisitions, including: Our September 2025 acquisition of SAI Digital, an end-to-end digital commerce and CX technology solutions company with a strong presence in Asia; Our September 2023 acquisition of the Webhelp business ( Webhelp ), a leading provider of CX solutions, including sales, marketing, and payment services, with significant operations and client relationships in Europe, Latin America, and Africa; Our July 2022 acquisition of ServiceSource International, Inc.
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REMOVED
As of January 17, 2025, there were 64,398,533 shares of common stock issued and outstanding.
We offer our clients integrated solutions to support the entirety of their customer lifecycles, transform their businesses, and solve business challenges: CX and user experience ( UX ) strategy and design; digital operations, including B2B sales, performance marketing, customer loyalty, trust and safety, collections, and financial compliance; data analytics, enterprise intelligence, and actionable insights; and innovative new approaches to enhancing the customer experience through the latest technological advancements in our industry.
Our average client tenure for our top 30 clients is more than 16 years.
Our strategic verticals include technology and consumer electronics, retail, travel and e-commerce, banking, financial services and insurance, healthcare, communications and media, and other.
Our clients include: 9 of the top 10 tech and consumer electronics companies 7 of the top 10 fintech companies 2 of the top 5 retail and e-commerce companies 8 of the top 10 European banks 6 of the top 10 U.S.
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