TTEC Announces Second Quarter 2025 Financial Results

Second Quarter 2025 Revenue was $513.6 MillionNet Loss was $6.7 Million or negative 1.3 Percent of Revenue(Net Income of $10.6 Million or 2.1 Percent of Revenue Non-GAAP)Adjusted EBITDA was $51.8 Million or 10.1 Percent of Revenue Updates Revenue Outlook for Full Year 2025 , /PRNewswire/ -- TTEC Holdings, Inc. (NASDAQ:TTEC), a leading global CX (customer experience) technology and services innovator for AI-enabled CX with solutions from TTEC Engage and TTEC Digital, announced today financial results for the second quarter ended June 30, 2025. "We are pleased with our financial results for the second quarter and first half of the year and are on our way to bringing TTEC back to our historic growth rates and profitability. Our leadership team is delivering on our transformation with consistent improvements in growth and margins. With our digital-first approach, we continue to attract new marquee clients as we grow with our embedded base," commented Ken Tuchman, chairman and chief executive officer of TTEC. "As the market continues to evolve with AI innovations, we are designing and delivering complex transformational digital solutions that align with the rapidly changing CX landscape. Our teams are deploying AI throughout our entire organization and working externally with our clients to deliver the right balance between human interaction and AI automation. We are transforming our clients' end-to-end customer experiences by leading with AI and data driven solutions and continue to deepen our partnerships with the leading CX technology players. This approach is delivering for our clients as evidenced in our increased full-year 2025 revenue guidance," Tuchman concluded. SECOND QUARTER 2025 FINANCIAL HIGHLIGHTS Revenue Second quarter 2025 GAAP revenue was $513.6 million, a 3.8 percent decrease compared to $534.1 million in the prior year. Foreign exchange had a $2.4 million positive impact on revenue in the second quarter of 2025. Income from Operations Second quarter 2025 GAAP income from operations was $18.9 million, or 3.7 percent of revenue, compared to a loss from operations of $224.4 million, or a negative 42.0 percent of revenue in the prior year, primarily related to non-cash impairment charges in the TTEC Engage reporting unit. Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $36.8 million, or 7.2 percent of revenue, compared to $29.5 million, or 5.5 percent of revenue in the prior year. Foreign exchange had a $1.5 million positive impact on Non-GAAP income from operations in the second quarter of 2025. Adjusted EBITDA Second quarter 2025 Non-GAAP Adjusted EBITDA was $51.8 million, or 10.1 percent of revenue, compared to $46.2 million, or 8.7 percent of revenue in the prior year. Earnings Per Share Second quarter 2025 GAAP fully diluted net loss per share was $0.14 compared to net loss per share of $6.24 in the prior year. Non-GAAP fully diluted earnings per share was $0.22 compared to $0.14 in the prior year. CASH FLOW AND BALANCE SHEET Cash flow from operations in the second quarter of 2025 was $92.7 million compared to $49.3 million for the second quarter of 2024. Free cash flow in the second quarter of 2025 was $85.5 million compared to $35.1 million for the second quarter of 2024. Capital expenditures in the second quarter of 2025 were $7.2 million compared to $14.2 million for the second quarter of 2024. As of June 30, 2025, TTEC had cash and cash equivalents of $82.6 million and debt of $886.3 million, resulting in a net debt position of $803.7 million. This compares to a net debt position of $853.4 million for the same period 2024. As of June 30, 2025, TTEC's remaining borrowing capacity under its revolving credit facility was approximately $270 million compared to approximately $100 million for the same period 2024. SEGMENT REPORTING & COMMENTARY TTEC reports financial results for TTEC Digital and TTEC Engage business segments. Financial highlights for the two business segments are provided below. TTEC Digital – Design, build and operate tech-enabled, insight-driven CX solutions Second quarter 2025 GAAP revenue for TTEC Digital was $113.7 million, a decrease of 2.3 percent compared to $116.4 million for the year ago period. Income from operations was $11.4 million or 10.0 percent of revenue compared to $6.0 million or 5.2 percent of revenue in the prior year. Non-GAAP income from operations was $18.4 million, or 16.1 percent of revenue compared to operating income of $15.0 million or 12.8 percent of revenue in the prior year. TTEC Engage – Technology-enabled customer care, acquisition, and fraud mitigation services Second quarter 2025 GAAP revenue for TTEC Engage was $399.8 million, a 4.3 percent decrease from $417.7 million for the year ago period. Income from operations was $7.5 million or 1.9 percent of revenue compared to a loss from operations of $230.4 million, or negative 55.2 percent of revenue in the prior year. Non-GAAP income from operations was $18.4 million, or 4.6 percent of revenue, compared to operating income of $14.6 million, or 3.5 percent of revenue in the prior year. Foreign exchange had a $2.2 million positive impact on revenue and a $1.5 million positive impact on income from operations. BUSINESS OUTLOOK "We delivered solid performance in the second quarter and first half of the year in both segments, exceeding our plan. In TTEC Digital, we are diversifying and scaling with our new growth partners. We also remain highly focused on utilization to maximize our margins as the market shifts to more holistic data and AI solutions. In TTEC Engage, the revenue decline was less than expected and our profit optimization delivered significant improvement in our margins through the first half of the year," commented Kenny Wagers, chief financial officer of TTEC. Wagers continued, "In our Engage segment, we are raising our revenue guidance due to higher growth in our embedded base and a positive foreign exchange impact on revenue compared to budgeted 2025 foreign exchange rates. We are re-iterating our full-year outlook on our profitability, noting that the foreign exchange impact versus budget is having a negative impact on Engage's margins. We are well positioned to deliver on our financial commitments in the second half of the year but remain cautious as we navigate the dynamic global economic environment." TTEC Full Year 2025 Outlook Full Year 2025Guidance Full Year 2025Mid-Point Revenue $2,064M — $2,114M $2,089M Non-GAAP adjusted EBITDA $215M — $235M $225M Non-GAAP adjusted EBITDA margins 10.4% — 11.1% 10.8 % Non-GAAP operating income $154M — $174M $164M Non-GAAP operating income margins 7.4% — 8.2% 7.8 % Interest expense, net ($72M) — ($74M) ($73M) Non-GAAP adjusted tax rate 39% — 43% 41 % Diluted share count 48.0M — 48.4M 48.2M Non-GAAP earnings per a share $0.95 — $1.20 $1.08 Engage Full Year 2025 Outlook Full Year 2025Guidance Full Year 2025Mid-Point Revenue $1,606M — $1,636M $1,621M Non-GAAP adjusted EBITDA $151M — $163M $157M Non-GAAP adjusted EBITDA margins 9.4% — 10.0% 9.7 % Non-GAAP operating income $101M — $113M $107M Non-GAAP operating income margins 6.3% — 6.9% 6.6 % Digital Full Year 2025 Outlook Full Year 2025Guidance Full Year 2025Mid-Point Revenue $458M — $478M $468M Non-GAAP adjusted EBITDA $64M — $72M $68M Non-GAAP adjusted EBITDA margins 13.9% — 15.0% 14.5 % Non-GAAP operating income $53M — $61M $57M Non-GAAP operating income margins 11.5% — 12.7% 12.1 % The company has not quantitatively reconciled its guidance for Non-GAAP operating income, Non-GAAP operating income margins, Non-GAAP adjusted EBITDA, Non-GAAP adjusted EBITDA margins, Non-GAAP adjusted tax rate, or Non-GAAP earnings per share to their respective most comparable GAAP measures because certain of the reconciling items that impact these metrics, including restructuring and impairment charges, equity-based compensation expense, changes in acquisition contingent consideration, depreciation and amortization expense, and provision for income taxes are dependent on the timing of future events outside of the Company's control or cannot be reliably predicted. Accordingly, the Company is unable to provide reconciliations to GAAP operating income, operating income margins, EBITDA margins, and diluted earnings per share without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the Company's 2025 financial results as reported under GAAP. NON-GAAP FINANCIAL MEASURES This press release contains a discussion of certain Non-GAAP financial measures that the company includes to allow investors and analysts to measure, analyze and compare its financial condition and results of operations in a meaningful and consistent manner. A reconciliation of these Non-GAAP financial measures can be found in the tables accompanying this press release. GAAP metrics are presented in accordance with Generally Accepted Accounting Principles. Non-GAAP - As reflected in the attached reconciliation table, the definition of Non-GAAP may exclude from operating income, EBITDA, net income and earnings per share restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, among other items. EARNINGS WEBCAST/CONFERENCE CALLTTEC will host a live webcast and conference call at 8:30 a.m. ET on Friday, August 8, 2025. You are invited to join a live webcast of the conference call by visiting the "Investors Relations" section of the TTEC website at www.ttec.com. If you are unable to participate during the live webcast, a replay will be available on the TTEC website. ABOUT TTECTTEC (pronounced T-TEC) Holdings, Inc. (NASDAQ:TTEC) is a leading global CX (customer experience) technology and services innovator for AI-enabled digital CX solutions. Serving iconic and disruptive brands, TTEC's outcome-based solutions span the entire enterprise, touch every virtual interaction channel, and improve each step of the customer journey. Leveraging next-gen digital technology, the Company's TTEC Digital business designs, builds, and operates omnichannel contact center technology, CRM, AI and analytics solutions. The company's TTEC Engage business delivers AI-enabled customer engagement, customer acquisition and growth, tech support, back office, and fraud prevention services. Founded in 1982, the company's singular obsession with CX excellence has earned it leading client, customer, and employee satisfaction scores across the globe. The company's employees operate on six continents and bring technology and humanity together to deliver happy customers and differentiated business results. To learn more visit us at https://www.ttec.com. FORWARD-LOOKING STATEMENTS This Earnings Press Release and related oral statements contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to our operations, expected financial position, results of operation, effective tax rate, cash flow, leverage, liquidity, business strategy, profit improvement actions, competitive position, demand for our services in international operations, acquisition opportunities and impact of acquisitions, capital allocation and dividends, growth opportunities, spending, capital expenditures and investments, competition and market forecasts, industry trends, our human capital resources, and other business, operational and financial matters that are based on our current expectations, assumptions, and projections with respect to the future, and are not a guarantee of performance. In this Release when we use words such as "may," "believe," "plan," "will," "anticipate," "estimate," "expect," "intend," "project," "would," "could," "target," or similar expressions, or when we discuss our strategy, plans, goals, initiatives, or objectives, we are making forward-looking statements. Unless otherwise indicated or except where the context otherwise requires, the terms "TTEC," "the Company," "we," "us" and "our" and other similar terms in this report refer to TTEC Holdings, Inc. and its subsidiaries. We caution you not to rely unduly on any forward-looking statements. Actual results may differ materially from those expressed in the forward-looking statements, and you should review and consider carefully the risks, uncertainties, and other factors that affect our business and may cause such differences as outlined in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequent filings with the U.S. Securities and Exchange Commission (the "SEC") which are available on TTEC's website www.ttec.com, and on the SEC's public website at www.sec.gov. Our forward-looking statements speak only as of the date that this release is issued. We undertake no obligation to update them, except as may be required by applicable law. Although we believe that our forward-looking statements are reasonable, they depend on many factors outside of our control and we can provide no assurance that they will prove to be correct. TTEC HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Revenue $ 513,571 $ 534,085 $ 1,047,799 $ 1,110,723 Operating Expenses: Cost of services 399,273 417,890 813,820 871,708 Selling, general and administrative 70,654 73,726 140,691 148,301 Depreciation and amortization 22,888 25,071 45,586 50,216 Restructuring charges, net 1,116 5,095 3,112 5,344 Impairment losses 764 236,716 1,525 236,856 Total operating expenses 494,695 758,498 1,004,734 1,312,425 Income / (Loss) From Operations 18,876 (224,413) 43,065 (201,702) Other income (expense), net (15,312) (18,229) (26,940) (38,111) Income / (Loss) Before Income Taxes 3,564 (242,642) 16,125 (239,813) Provision for income taxes (10,288) (54,126) (19,603) (56,455) Net Income / (Loss) (6,724) (296,768) (3,478) (296,268) Net (loss) / income attributable to noncontrolling interest (1,263) (2,771) (3,125) (5,576) Net Income / (Loss) Attributable to TTEC Stockholders $ (7,987) $(299,539) $ (6,603) $ (301,844) Net Income / (Loss) Per Share Basic $ (0.14) $ (6.24) $ (0.07) $ (6.24) Diluted $ (0.14) $ (6.24) $ (0.07) $ (6.24) Net Income / (Loss) Per Share Attributable to TTEC Stockholders Basic $ (0.17) $ (6.30) $ (0.14) $ (6.35) Diluted $ (0.17) $ (6.30) $ (0.14) $ (6.35) Income / (Loss) From Operations Margin 3.7 % (42.0) % 4.1 % (18.2) % Net Income / (Loss) Margin (1.3) % (55.6) % (0.3) % (26.7) % Net Income / (Loss) Attributable to TTEC Stockholders Margin (1.6) % (56.1) % (0.6) % (27.2) % Effective Tax Rate 288.7 % (22.3) % 121.6 % (23.5) % Weighted Average Shares Outstanding Basic 48,064 47,564 47,918 47,498 Diluted 48,064 47,564 47,918 47,498 TTEC HOLDINGS, INC. AND SUBSIDIARIES SEGMENT INFORMATION (In thousands) (unaudited) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Revenue: TTEC Digital $ 113,746 $ 116,368 $ 221,786 $ 228,399 TTEC Engage 399,825 417,717 826,013 882,324 Total $ 513,571 $ 534,085 $ 1,047,799 $ 1,110,723 Income / (Loss) From Operations TTEC Digital $ 11,409 $ 6,008 $ 17,273 $ 9,296 TTEC Engage 7,467 (230,421) 25,792 (210,998) Total $ 18,876 $ (224,413) $ 43,065 $ (201,702) TTEC HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) June 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 82,559 $ 84,991 Accounts receivable, net 420,269 452,573 Prepaids and other current assets 101,632 92,947 Income and other tax receivables 23,253 21,785 Total current assets 627,713 652,296 Property and equipment, net 112,685 132,051 Operating lease assets 100,331 91,263 Goodwill 574,383 571,197 Other intangibles assets, net 149,548 164,808 Income and other tax receivables, long-term 20,063 31,781 Other assets 110,307 109,984 Total assets $ 1,695,030 $ 1,753,380 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 71,623 $ 84,180 Accrued employee compensation and benefits 138,985 137,636 Deferred revenue 69,501 64,752 Current operating lease liabilities 34,006 33,358 Other current liabilities 41,174 34,010 Total current liabilities 355,289 353,936 Long-term liabilities: Line of credit 882,500 975,000 Non-current operating lease liabilities 78,055 71,008 Other long-term liabilities 84,010 85,317 Total long-term liabilities 1,044,565 1,131,325 Equity: Common stock 484 477 Additional paid in capital 426,437 420,181 Treasury stock (584,900) (584,900) Accumulated other comprehensive income (loss) (104,149) (132,121) Retained earnings 540,014 546,617 Noncontrolling interest 17,290 17,865 Total equity 295,176 268,119 Total liabilities and equity $ 1,695,030 $ 1,753,380 TTEC HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Six Months Ended Six Months Ended June 30, June 30, 2025 2024 Cash flows from operating activities: Net (loss) income $ (3,478) $ (296,268) Adjustment to reconcile net (loss) income to net cash provided by operating activities : Depreciation and amortization 45,586 50,216 Amortization of contract acquisition costs 790 677 Amortization of debt issuance costs 985 985 Imputed interest expense and fair value adjustments to contingent consideration - (1,047) Provision for credit losses 598 2,644 Loss on disposal of assets 597 1,252 Impairment losses 1,525 236,856 Loss on dissolution of subsidiary - - Deferred income taxes 3,033 37,148 Excess tax benefit from equity-based awards 720 1,732 Equity-based compensation expense 7,301 10,916 Loss / (gain) on foreign currency derivatives (338) 145 Changes in assets and liabilities, net of acquisitions: Accounts receivable 42,509 8,315 Prepaids and other assets 17,479 (10,804) Accounts payable and accrued expenses 14,665 (996) Deferred revenue and other liabilities (17,671) (8,126) Net cash provided by operating activities 114,301 33,645 Cash flows from investing activities: Proceeds from sale of property, plant and equipment 176 116 Purchases of property, plant and equipment (12,587) (27,682) Net cash used in investing activities (12,411) (27,566) Cash flows from financing activities: Net proceeds from / (repayments of) line of credit (92,500) (65,000) Payments on other debt (1,088) (1,379) Payments of contingent consideration and hold back payments to acquisitions - - Dividends paid to shareholders - (2,847) Payments to noncontrolling interest (4,101) (4,770) Tax payments related to the issuance of restricted stock units (1,038) (606) Payments of debt issuance costs (200) (1,100) Net cash used in financing activities (98,927) (75,702) Effect of exchange rate changes on cash and cash equivalents and restricted cash (5,395) (4,612) (Decrease) in cash, cash equivalents and restricted cash (2,432) (74,235) Cash, cash equivalents and restricted cash, beginning of period 84,991 173,905 Cash, cash equivalents and restricted cash, end of period $ 82,559 $ 99,670 TTEC HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (In thousands, except per share data) (unaudited) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Revenue $ 513,571 $ 534,085 $ 1,047,799 $ 1,110,723 Reconciliation of Non-GAAP Income from Operations and EBITDA: Net Income / (Loss) from Operations $ 18,876 $ (224,413) $ 43,065 $ (201,702) Restructuring charges, net 1,116 5,095 3,112 5,344 Impairment losses 764 236,716 1,525 236,856 Property costs not related to operations - 872 (46) 1,905 Mexico VAT consulting fees 412 - 820 - Liability related to notifications triggered by labor scheme (1) - (2,275) - (2,750) Expenses related to non-binding offer 3,830 - 7,019 - Equity-based compensation expenses 4,051 5,104 7,301 10,916 Amortization of purchased intangibles 7,738 8,439 15,488 16,884 Non-GAAP Income from Operations $ 36,787 $ 29,538 $ 78,284 $ 67,453 Non-GAAP Income from Operations Margin 7.2 % 5.5 % 7.5 % 6.1 % Depreciation and amortization 15,150 16,210 30,098 32,279 Changes in acquisition contingent consideration - 193 - (1,047) Gain on property sale (179) - (629) - Mexico VAT Recovery (2,719) - (6,625) - Foreign SS Tax Recovery - (853) - (853) Foreign VAT receivable writeoff - - - 770 Foreign exchange loss / (gain), net 3,027 (636) 3,777 556 Other Income (expense), net (296) 1,788 3,293 1,994 Adjusted EBITDA $ 51,770 $ 46,240 $ 108,198 $ 101,152 Adjusted EBITDA Margin 10.1 % 8.7 % 10.3 % 9.1 % Reconciliation of Non-GAAP EPS: Net Income $ (6,724) $ (296,768) $ (3,478) $ (296,268) Add: Asset impairment and restructuring charges 1,880 241,811 4,637 242,200 Add: Equity-based compensation expenses 4,051 5,104 7,301 10,916 Add: Amortization of purchased intangibles 7,738 8,439 15,488 16,884 Add: Property costs not related to operations - 872 (46) 1,905 Add: Liability related to notifications triggered by labor scheme - (2,275) - (2,750) Add: Foreign SS Tax Recovery - (853) - (853) Add: Foreign VAT receivable writeoff - - - 770 Add: Changes in acquisition contingent consideration - 193 - (1,047) Add: Foreign VAT (inclusive of interest) (5,266) - (13,089) - Add: Fees related to non-binding offer 3,830 - 7,019 - Add: Gain on property sale (179) - (629) - Add: Foreign exchange loss / (gain), net 3,027 (636) 3,777 556 Less: Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above 2,198 50,748 3,200 46,942 Non-GAAP Net Income $ 10,555 $ 6,635 $ 24,180 $ 19,255 Diluted shares outstanding 48,064 47,564 47,918 47,498 Non-GAAP EPS $0.22 $0.14 $0.50 $0.41 Reconciliation of Free Cash Flow: Cash Flow From Operating Activities: Net (loss) / income $ (6,724) $ (296,768) $ (3,478) $ (296,268) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 22,888 25,071 45,586 50,216 Other 76,545 320,971 72,193 279,697 Net cash provided by operating activities 92,709 49,274 114,301 33,645 Less - Total Cash Capital Expenditures 7,181 14,209 12,587 27,682 Free Cash Flow $ 85,528 $ 35,065 $ 101,714 $ 5,963 (1) - For further information, please see discussion in the Risk Factors section of the 2024 Form 10-K filed on February 27, 2025. Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment : TTEC Engage TTEC Digital TTEC Engage TTEC Digital Q2 25 Q2 24 Q2 25 Q2 24 YTD 25 YTD 24 YTD 25 YTD 24 (Loss) / Income from Operations $ 7,467 $ (230,421) $ 11,409 $ 6,008 $ 25,792 $ (210,999) $ 17,273 $ 9,297 Restructuring charges, net 887 4,842 229 253 2,179 5,495 932 (151) Impairment losses 567 234,205 197 2,511 1,287 234,345 239 2,511 Property costs not related to operations - 872 - - (46) 1,905 - - Mexico VAT Consulting Fees 412 - - - 820 - - - Expenses related to non-binding offer 2,592 - 1,238 - 5,225 - 1,794 - Liability related to notifications triggered by labor scheme - (2,275) - - - (2,750) - - Equity-based compensation expenses 2,417 3,264 1,634 1,840 4,440 7,047 2,861 3,869 Amortization of purchased intangibles 4,082 4,101 3,656 4,338 8,149 8,208 7,339 8,676 Non-GAAP Income from Operations $ 18,424 $ 14,588 $ 18,363 $ 14,950 $ 47,846 $ 43,251 $ 30,438 $ 24,202 Depreciation and amortization 12,342 13,534 2,808 2,676 24,481 26,891 5,617 5,388 Changes in acquisition contingent consideration - 193 - - - (1,047) - - Gain on Property Sale (179) - - - (629) - - - Mexico VAT Recovery (2,719) - - - (6,625) - - - Foreign VAT receivable writeoff - - - - - 770 - - Foreign SS Tax Recovery - (853) - - - (853) - - Foreign exchange loss / (gain), net 2,821 (585) 206 (51) 3,572 793 205 (238) Other Income (expense), net (89) 1,733 (207) 55 3,498 1,777 (205) 218 Adjusted EBITDA $ 30,600 $ 28,610 $ 21,170 $ 17,630 $ 72,143 $ 71,582 $ 36,055 $ 29,570 SOURCE TTEC Holdings, Inc. 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TTEC Announces Second Quarter 2025 Financial Results

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