WNS (WNS) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue was $322.6M, down 3.4% year-over-year, mainly due to a large healthcare client loss and lower online travel and discretionary project revenues.

• Net income for Q2 was $41.8M, a 29.7% decrease from $59.4M last year, reflecting lower revenues and higher finance expenses.

• Revenue less repair payments (non-GAAP) was $310.7M, down 4.4% year-over-year and 0.6% sequentially.

• EPS exceeded expectations due to a one-time $9M tax benefit and reversal of contingent consideration for OptiBuy acquisition.

• Nine new clients were added and 41 existing relationships expanded in Q2; global headcount at 62,951.

Financial highlights

• Adjusted operating margin for Q2 was 18.6%, down from 21.5% last year but up from 18.4% last quarter.

• Adjusted net income for Q2 was $51.5M, compared to $54.4M last year and $44M last quarter.

• Adjusted diluted EPS was $1.13, up from $1.10 last year and $0.93 last quarter.

• Cash and investments totaled $221.5M, with $262.8M in debt as of September 30, 2024.

• Q2 cash from operations was $43.6M; $12.7M in capex; $43M in debt repayments; $71.7M spent on share repurchases.

Outlook and guidance

• FY25 net revenue guidance: $1.25–$1.296B, representing -3% to +1% year-over-year on a reported basis.

• Constant currency guidance: -4% to 0% year-over-year.

• Adjusted net income expected at $190–$200M; adjusted EPS of $4.13–$4.35.

• No large deal revenue included in guidance; further OTA reductions and no improvement in discretionary spend assumed.

• Sequential revenue growth expected in Q3 and Q4, with margin expansion in the back half of the year.