Core Insights - TTEC Holdings, Inc. will release its earnings results on November 6, 2025, after market close, followed by a live webcast and conference call on November 7, 2025, at 8:30 a.m. ET [1][2] Company Overview - TTEC Holdings, Inc. is a leading global innovator in customer experience (CX) technology and services, specializing in AI-enabled digital CX solutions. The company serves both iconic and disruptive brands, providing outcome-based solutions that enhance the entire customer journey across various virtual interaction channels [3] - TTEC's business segments include TTEC Digital, which focuses on designing and operating omnichannel contact center technology, CRM, AI, and analytics solutions, and TTEC Engage, which delivers AI-enabled customer engagement, acquisition, tech support, back office, and fraud prevention services [3] - Founded in 1982, TTEC has established a strong reputation for customer experience excellence, achieving high satisfaction scores from clients, customers, and employees globally [3]

Accessibility StatementSkip Navigation TTEC Digital is honored by Microsoft for achieving outstanding sales achievement and innovation AUSTIN, Texas, Sept. 25, 2025 /PRNewswire/ -- TTEC Holdings Inc. (NASDAQ:TTEC), a leading global customer experience (CX) technology and services innovator for AI-enabled CX, today announced that TTEC Digital has been selected for AI Business Solution's 2025-2026 Microsoft Inner Circle. Participation within Inner Circle is based on sales achievements that rank TTEC Digital i ...

Core Insights - TTEC Holdings Inc. has announced a partnership between TTEC Digital and VoxEQ to enhance customer experience technology through AI-powered solutions [1] Company Overview - TTEC Holdings Inc. is recognized as a leading global innovator in customer experience technology and services, particularly focusing on AI-enabled customer experience [1] Partnership Details - The collaboration aims to integrate TTEC Digital's SmartApps Cloud with VoxEQ, providing cost-effective fraud prevention solutions for organizations of all sizes [1]

Core Insights - TTEC Holdings, Inc. has received multiple prestigious workplace awards in 2025 across seven countries, highlighting its commitment to a people-first culture that drives engagement and customer outcomes [1][2] - The company utilizes AI-driven tools such as TTEC RealSkill and TTEC Let Me Know to enhance employee learning and improve both employee and customer experiences [2][3] - TTEC emphasizes the importance of employee well-being and growth, believing that when employees thrive, clients and their customers benefit as well [3] Company Overview - TTEC is a leading global innovator in customer experience (CX) technology and services, focusing on AI-enabled digital CX solutions [3] - The company's services include omnichannel contact center technology, CRM, AI, and analytics solutions, aimed at improving the customer journey [3] - Founded in 1982, TTEC has a strong track record of achieving high client, customer, and employee satisfaction scores globally [3] Industry Recognition - The awards received by TTEC are seen as a reflection of its culture and commitment to innovation, inclusion, and purpose [2] - Brandon Hall Group™ recognizes TTEC's achievements in human capital management, with its awards being referred to as the "Academy Awards of Human Capital Management" [4]

Financial Data and Key Metrics Changes - For Q2 2025, revenue was $514 million, a decrease of 3.8% from $534 million in the prior year [28] - Adjusted EBITDA increased to $52 million, representing a 12% year-over-year increase and a margin improvement of 140 basis points to 10.1% [7][28] - Free cash flow was $86 million, up from $35 million in the prior year, reflecting a significant increase in operating cash flow [36] Business Line Data and Key Metrics Changes - In the Engage segment, revenue decreased by 4.3% to $400 million, but operating income increased by 26.3% to $18 million, reflecting a margin improvement [29][30] - The Digital segment saw a revenue decline of 2.3% to $114 million, but operating income increased by 22.8% to $18 million, largely due to a one-time sale of IP software [32][33] Market Data and Key Metrics Changes - The Engage backlog was $1.64 billion, representing 101% of the updated 2025 revenue guidance midpoint, indicating strong future revenue potential [31] - The Digital backlog was $387 million, or 83% of the 2025 revenue guidance midpoint, slightly down from the previous year [35] Company Strategy and Development Direction - The company is focused on expanding AI and analytics capabilities, diversifying its CX technology partner network, and enhancing operational efficiencies [7][12] - There is a strategic shift towards offshore operations, with a focus on acquiring new business in regions with high-quality talent [70][73] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is economic uncertainty, they are confident in the company's ability to navigate challenges and achieve historical growth rates [90] - The company is seeing a cautious but positive trend in client spending, with many clients reallocating business due to market consolidation [56][58] Other Important Information - The company is committed to improving profitability, cash flow generation, and debt reduction, with a net leverage ratio of 3.39 times, down from previous quarters [37][42] - The normalized tax rate increased to 43.4% due to the impact of a valuation allowance recorded against US pretax losses [38] Q&A Session Summary Question: Update on bank discussions regarding revolver renewal - Management is in active discussions and is confident of closure in Q3 [48] Question: Broader application of accent neutralization technology - The technology is operational and opens up new markets by allowing access to highly educated talent with diverse accents [50] Question: Client recognition of the need to move forward with programs - Clients are cautious due to economic uncertainty but are reallocating business and recognizing the need for technology capabilities [56][58] Question: Performance of Engage offshore business - The offshore mix improved, with a focus on expanding in regions like South Africa and Eastern Europe [73] Question: Vertical opportunities for the second half - Opportunities are seen in financial services, healthcare, technology, travel, and streaming media [75][78] Question: Blended pricing and rate cards - Management prefers blended pricing but does not see it as deflationary; rather, technology application leads to increased business allocation [84][86] Question: Risks around customers shifting work offshore - The labor market in the US is tight, leading clients to consider offshore options for quality and quantity [88][90]

Company Overview - TTEC is a major player in CX technology and services, serving around 700 clients[10] - The company operates in approximately 22 countries and supports around 50 languages, with about 50,000 total employees[14] - More than 50% of TTEC's employees work from home[14] Financial Performance - TTEC's last twelve months (LTM) Q2 2025 revenue is approximately $2.14 billion[11] - TTEC Digital's LTM Q2 2025 revenue is $452 million with an adjusted EBITDA margin of 15.2%[12] - TTEC Engage's LTM Q2 2025 revenue is $1.692 billion with an adjusted EBITDA margin of 8.3%[12] - The company's adjusted EBITDA for LTM Q2 2025 is $209 million, representing 9.8% of revenue[29,32] - Capital expenditures (net of financing) for LTM Q2 2025 are $30 million, which is 1.4% of revenue[29] Market and Guidance - TTEC operates within a large total addressable market (TAM) of approximately $640 billion, comprising CX technology and services ($115 billion) and CX delivery spend (~$525 billion)[17] - Full year 2025 guidance (midpoint) projects GAAP revenue of $2.089 billion and non-GAAP adjusted EBITDA of $225 million, representing 10.8% of revenue[31]

分组1 - TTEC Holdings reported quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.24 per share, but showing an increase from $0.14 per share a year ago, resulting in an earnings surprise of -8.33% [1] - The company posted revenues of $513.57 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.87%, although this represents a decline from year-ago revenues of $534.09 million [2] - TTEC shares have declined approximately 45.7% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $500.67 million, and for the current fiscal year, it is $1.08 on revenues of $2.04 billion [7] - The Zacks Industry Rank indicates that the Technology Services sector is in the top 38% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

[Executive Summary & Company Commentary](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Commentary) This section provides an overview of TTEC's Q2 2025 financial performance and CEO commentary on strategic transformation and AI integration [Second Quarter 2025 Overview](index=1&type=section&id=Second%20Quarter%202025%20Overview) TTEC announced its second quarter 2025 financial results, reporting **$513.6M** in revenue, a GAAP net loss of **$6.7M**, and Non-GAAP net income of **$10.6M** | Metric | Value ($M) | | :-------------------- | :---------- | | Revenue | $513.6M | | Net Loss (GAAP) | $(6.7)M | | Net Income (Non-GAAP) | $10.6M | | Adjusted EBITDA | $51.8M | | Adjusted EBITDA % of Revenue | 10.1% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Ken Tuchman expressed satisfaction with the financial results, highlighting the company's progress in returning to historic growth and profitability through transformation - TTEC is focused on transformation to restore historic growth rates and profitability, showing **consistent improvements in growth and margins**[2](index=2&type=chunk) - The company is adopting a **digital-first approach**, attracting new marquee clients and growing with its existing client base[2](index=2&type=chunk) - TTEC is deploying **AI innovations** throughout its organization and with clients to deliver AI-enabled and data-driven CX solutions, deepening partnerships with leading CX technology players[3](index=3&type=chunk) - **Increased full-year 2025 revenue guidance** is a result of the company's approach to delivering client value[3](index=3&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) This section details TTEC's Q2 2025 revenue, profitability, earnings per share, and cash flow performance, highlighting significant year-over-year improvements [Revenue Performance](index=1&type=section&id=Revenue%20Performance) GAAP revenue for the second quarter of 2025 was **$513.6M**, marking a 3.8% decrease compared to **$534.1M** in the prior year | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change (YoY) | | :----- | :------ | :------ | :----------- | | Revenue | $513.6M | $534.1M | -3.8% | - Foreign exchange had a **positive impact** of **$2.4M** on revenue in Q2 2025[6](index=6&type=chunk) [Profitability Metrics](index=2&type=section&id=Profitability%20Metrics) GAAP income from operations significantly improved to **$18.9M**, with Non-GAAP income and Adjusted EBITDA also rising, primarily due to the absence of prior year impairment charges | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | GAAP Income from Operations | $18.9M | $(224.4)M | Significant Improvement | | GAAP % of Revenue | 3.7% | -42.0% | | | Non-GAAP Income from Operations | $36.8M | $29.5M | +24.7% | | Non-GAAP % of Revenue | 7.2% | 5.5% | | | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Adjusted EBITDA | $51.8M | $46.2M | +12.1% | | Adjusted EBITDA % of Revenue | 10.1% | 8.7% | | - The **significant improvement in GAAP income from operations** was primarily due to non-cash impairment charges in the TTEC Engage reporting unit in the prior year[10](index=10&type=chunk) - Foreign exchange had a **$1.5M positive impact** on Non-GAAP income from operations in Q2 2025[10](index=10&type=chunk) [Earnings Per Share](index=2&type=section&id=Earnings%20Per%20Share) GAAP fully diluted net loss per share improved substantially to **$(0.14)** in Q2 2025, compared to a net loss of **$(6.24)** in the prior year | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | GAAP Diluted Net Loss Per Share | $(0.14) | $(6.24) | Significant Improvement | | Non-GAAP Diluted EPS | $0.22 | $0.14 | +57.1% | [Cash Flow and Balance Sheet](index=2&type=section&id=Cash%20Flow%20and%20Balance%20Sheet) Cash flow from operations more than doubled to **$92.7M** in Q2 2025, with free cash flow also increasing substantially, while net debt improved to **$803.7M** and revolving credit capacity significantly expanded | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | Cash Flow from Operations | $92.7M | $49.3M | +88.0% | | Free Cash Flow | $85.5M | $35.1M | +143.6% | | Capital Expenditures | $7.2M | $14.2M | -49.3% | | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Change (YoY) | | :-------------------------- | :-------------- | :-------------- | :----------- | | Net Debt Position | $803.7M | $853.4M | -5.8% | | Revolving Credit Facility Capacity | ~$270M | ~$100M | +170.0% | [Segment Reporting & Commentary](index=3&type=section&id=Segment%20Reporting%20%26%20Commentary) This section provides a detailed financial review of TTEC Digital and TTEC Engage segments, including performance metrics and strategic commentary from the CFO [TTEC Digital Segment](index=3&type=section&id=TTEC%20Digital%20Segment) TTEC Digital reported a 2.3% decrease in GAAP revenue to **$113.7M** in Q2 2025, but GAAP and Non-GAAP income from operations significantly improved, driven by diversification and focus on utilization - TTEC Digital is **diversifying and scaling with new growth partners** and **focusing on utilization to maximize margins** amidst a **market shift towards holistic data and AI solutions**[16](index=16&type=chunk) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | GAAP Revenue | $113.7M | $116.4M | -2.3% | | GAAP Income from Operations | $11.4M | $6.0M | +90.0% | | GAAP % of Revenue | 10.0% | 5.2% | | | Non-GAAP Income from Operations | $18.4M | $15.0M | +22.7% | | Non-GAAP % of Revenue | 16.1% | 12.8% | | [TTEC Engage Segment](index=3&type=section&id=TTEC%20Engage%20Segment) TTEC Engage's GAAP revenue decreased by 4.3% to **$399.8M**, a smaller decline than anticipated, with significant improvement in GAAP and Non-GAAP income from operations due to profit optimization and positive foreign exchange impacts - TTEC Engage's **revenue decline was less than expected**, and **profit optimization led to significant margin improvement** in the first half of the year[16](index=16&type=chunk) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | GAAP Revenue | $399.8M | $417.7M | -4.3% | | GAAP Income from Operations | $7.5M | $(230.4)M | Significant Improvement | | GAAP % of Revenue | 1.9% | -55.2% | | | Non-GAAP Income from Operations | $18.4M | $14.6M | +26.0% | | Non-GAAP % of Revenue | 4.6% | 3.5% | | - Foreign exchange had a **$2.2M positive impact** on Engage's revenue and a **$1.5M positive impact** on its income from operations[18](index=18&type=chunk) [CFO Commentary](index=3&type=section&id=CFO%20Commentary) CFO Kenny Wagers highlighted solid Q2 and H1 performance across both segments, raising Engage's revenue guidance due to embedded base growth and positive FX, while reiterating full-year profitability despite negative FX impact on Engage's margins - TTEC delivered **solid performance in Q2 and H1 across both segments, exceeding plans**[16](index=16&type=chunk) - Engage segment's **revenue guidance is being raised** due to **higher growth in the embedded base** and a **positive foreign exchange impact**[17](index=17&type=chunk) - **Full-year profitability outlook is reiterated**, but foreign exchange impact versus budget is **negatively affecting Engage's margins**[17](index=17&type=chunk) - The company is **well-positioned for the second half of the year** but **remains cautious due to the dynamic global economic environment**[17](index=17&type=chunk) [Business Outlook for Full Year 2025](index=5&type=section&id=Business%20Outlook%20for%20Full%20Year%202025) This section outlines TTEC's updated full-year 2025 financial projections for the consolidated entity and its individual segments [TTEC Holdings Full Year 2025 Outlook](index=5&type=section&id=TTEC%20Holdings%20Full%20Year%202025%20Outlook) TTEC updated its full-year 2025 outlook, projecting consolidated revenue between **$2,064M** and **$2,114M**, with Non-GAAP adjusted EBITDA and earnings per share also provided | Metric | Mid-Point ($M) | | :-------------------------- | :---------- | | Revenue | $2,089M | | Non-GAAP Adjusted EBITDA | $225M | | Non-GAAP Adjusted EBITDA Margins | 10.8% | | Non-GAAP Operating Income | $164M | | Non-GAAP Operating Income Margins | 7.8% | | Non-GAAP Earnings Per Share | $1.08 | [TTEC Engage Full Year 2025 Outlook](index=5&type=section&id=TTEC%20Engage%20Full%20Year%202025%20Outlook) For the full year 2025, TTEC Engage's revenue is projected to be between **$1,606M** and **$1,636M**, with Non-GAAP adjusted EBITDA also forecasted | Metric | Mid-Point ($M) | | :-------------------------- | :---------- | | Revenue | $1,621M | | Non-GAAP Adjusted EBITDA | $157M | | Non-GAAP Adjusted EBITDA Margins | 9.7% | | Non-GAAP Operating Income | $107M | | Non-GAAP Operating Income Margins | 6.6% | [TTEC Digital Full Year 2025 Outlook](index=5&type=section&id=TTEC%20Digital%20Full%20Year%202025%20Outlook) TTEC Digital's full-year 2025 outlook forecasts revenue between **$458M** and **$478M**, with Non-GAAP adjusted EBITDA also anticipated | Metric | Mid-Point ($M) | | :-------------------------- | :---------- | | Revenue | $468M | | Non-GAAP Adjusted EBITDA | $68M | | Non-GAAP Adjusted EBITDA Margins | 14.5% | | Non-GAAP Operating Income | $57M | | Non-GAAP Operating Income Margins | 12.1% | [Non-GAAP Financial Measures & Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section explains the company's use of Non-GAAP financial measures and provides detailed reconciliations to GAAP figures for consolidated and segment-level performance [Non-GAAP Financial Measures Explanation](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section explains the use of Non-GAAP financial measures to provide investors and analysts with a consistent view of performance, typically excluding restructuring, impairment, equity-based compensation, and amortization charges - Non-GAAP financial measures are used to provide a **meaningful and consistent view** of the company's financial condition and results[25](index=25&type=chunk) - Non-GAAP metrics **generally exclude restructuring and impairment charges, equity-based compensation expenses, and amortization of purchased intangibles**[28](index=28&type=chunk) - **Quantitative reconciliation of full-year 2025 Non-GAAP guidance to GAAP measures is not provided** due to the **unpredictability of certain reconciling items**[24](index=24&type=chunk) [Consolidated Non-GAAP Reconciliations](index=12&type=section&id=Consolidated%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP to Non-GAAP financial figures for TTEC Holdings, Inc. on a consolidated basis, covering income from operations, EBITDA, net income, EPS, and free cash flow | Metric | GAAP Income from Operations ($ in Thousands) | Adjustments ($ in Thousands) | Non-GAAP Income from Operations ($ in Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Q2 2025 | $18,876 | $17,911 | $36,787 | | Q2 2024 | $(224,413) | $253,951 | $29,538 | | Metric | Non-GAAP Income from Operations ($ in Thousands) | Adjustments ($ in Thousands) | Adjusted EBITDA ($ in Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Q2 2025 | $36,787 | $14,983 | $51,770 | | Q2 2024 | $29,538 | $16,702 | $46,240 | | Metric | Net Income (GAAP) ($ in Thousands) | Adjustments ($ in Thousands) | Non-GAAP Net Income ($ in Thousands) | Diluted Shares | Non-GAAP EPS | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Q2 2025 | $(6,724) | $17,279 | $10,555 | 48,064 | $0.22 | | Q2 2024 | $(296,768) | $303,403 | $6,635 | 47,564 | $0.14 | | Metric | Net Cash Provided by Operating Activities ($ in Thousands) | Less: Total Cash Capital Expenditures ($ in Thousands) | Free Cash Flow ($ in Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Q2 2025 | $92,709 | $7,181 | $85,528 | | Q2 2024 | $49,274 | $14,209 | $35,065 | [Segment Non-GAAP Reconciliations](index=14&type=section&id=Segment%20Non-GAAP%20Reconciliations) This section provides segment-specific reconciliations for Non-GAAP income from operations and Adjusted EBITDA for both TTEC Engage and TTEC Digital, detailing adjustments from GAAP figures | Segment | GAAP Income from Operations ($ in Thousands) | Adjustments ($ in Thousands) | Non-GAAP Income from Operations ($ in Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | TTEC Engage (Q2 2025) | $7,467 | $10,957 | $18,424 | | TTEC Engage (Q2 2024) | $(230,421) | $245,009 | $14,588 | | TTEC Digital (Q2 2025) | $11,409 | $6,954 | $18,363 | | TTEC Digital (Q2 2024) | $6,008 | $8,942 | $14,950 | | Segment | Non-GAAP Income from Operations ($ in Thousands) | Adjustments ($ in Thousands) | Adjusted EBITDA ($ in Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | TTEC Engage (Q2 2025) | $18,424 | $12,176 | $30,600 | | TTEC Engage (Q2 2024) | $14,588 | $14,022 | $28,610 | | TTEC Digital (Q2 2025) | $18,363 | $2,807 | $21,170 | | TTEC Digital (Q2 2024) | $14,950 | $2,680 | $17,630 | [Additional Information](index=6&type=section&id=Additional%20Information) This section provides details on the upcoming earnings conference call, an overview of TTEC Holdings, and a standard disclaimer regarding forward-looking statements [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) TTEC will host a **live webcast and conference call for earnings will be held on August 8, 2025, at 8:30 a.m. ET**, with access available via the Investors Relations section of its website - A **live webcast and conference call for earnings will be held on August 8, 2025, at 8:30 a.m. ET**[26](index=26&type=chunk) - **Webcast details and replay information are available on the TTEC website's 'Investors Relations' section**[26](index=26&type=chunk) [About TTEC](index=6&type=section&id=About%20TTEC) TTEC Holdings, Inc. is a leading global innovator in AI-enabled CX technology and services, operating two main businesses: TTEC Digital and TTEC Engage, founded in 1982 - TTEC is a **global CX technology and services innovator providing AI-enabled digital CX solutions**[27](index=27&type=chunk) - The company operates **two main businesses: TTEC Digital (design, build, operate CX tech, CRM, AI, analytics) and TTEC Engage (AI-enabled customer engagement, acquisition, tech support, back office, fraud prevention)**[27](index=27&type=chunk) - **Founded in 1982, TTEC emphasizes CX excellence and operates globally across six continents**[27](index=27&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This section includes a standard disclaimer regarding forward-looking statements, advising that actual results may differ materially from projections due to various risks and uncertainties outlined in SEC filings - The release contains **forward-looking statements regarding operations, financial position, strategy, and growth opportunities**[30](index=30&type=chunk) - **Actual results may differ materially from forward-looking statements due to risks and uncertainties outlined in SEC filings, including the Form 10-K**[31](index=31&type=chunk) - The **company does not undertake to update forward-looking statements, and they are not a guarantee of performance**[32](index=32&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents TTEC Holdings, Inc.'s unaudited consolidated statements of operations, balance sheets, cash flows, and segment information [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the unaudited consolidated statements of operations for TTEC Holdings, Inc. for the three and six months ended June 30, 2025, and 2024, detailing key financial performance indicators | Metric | 2025 ($ in Thousands) | 2024 ($ in Thousands) | | :------------------------------------ | :---------- | :---------- | | Revenue | $513,571 | $534,085 | | Total operating expenses | $494,695 | $758,498 | | Income / (Loss) From Operations | $18,876 | $(224,413) | | Net Income / (Loss) | $(6,724) | $(296,768) | | Diluted Net Income / (Loss) Per Share | $(0.14) | $(6.24) | | Metric | 2025 ($ in Thousands) | 2024 ($ in Thousands) | | :------------------------------------ | :---------- | :---------- | | Revenue | $1,047,799 | $1,110,723 | | Total operating expenses | $1,004,734 | $1,312,425 | | Income / (Loss) From Operations | $43,065 | $(201,702) | | Net Income / (Loss) | $(3,478) | $(296,268) | | Diluted Net Income / (Loss) Per Share | $(0.07) | $(6.24) | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) This section presents the unaudited consolidated balance sheets for TTEC Holdings, Inc. as of June 30, 2025, and December 31, 2024, providing an overview of the company's financial position | Metric | June 30, 2025 ($ in Thousands) | Dec 31, 2024 ($ in Thousands) | | :-------------------------- | :-------------- | :-------------- | | Total assets | $1,695,030 | $1,753,380 | | Total current liabilities | $355,289 | $353,936 | | Total long-term liabilities | $1,044,565 | $1,131,325 | | Total equity | $295,176 | $268,119 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section provides the unaudited consolidated statements of cash flows for TTEC Holdings, Inc. for the six months ended June 30, 2025, and 2024, outlining cash activities and overall change in cash | Metric | 2025 ($ in Thousands) | 2024 ($ in Thousands) | | :------------------------------------ | :---------- | :---------- | | Net cash provided by operating activities | $114,301 | $33,645 | | Net cash used in investing activities | $(12,411) | $(27,566) | | Net cash used in financing activities | $(98,927) | $(75,702) | | (Decrease) in cash, cash equivalents and restricted cash | $(2,432) | $(74,235) | | Cash, cash equivalents and restricted cash, end of period | $82,559 | $99,670 | [Segment Information](index=9&type=section&id=Segment%20Information) This section presents unaudited segment-level financial information for TTEC Digital and TTEC Engage, detailing revenue and income/loss from operations for each segment | Segment | 2025 ($ in Thousands) | 2024 ($ in Thousands) | | :-------------------------- | :---------- | :---------- | | TTEC Digital | $113,746 | $116,368 | | TTEC Engage | $399,825 | $417,717 | | Total | $513,571 | $534,085 | | Segment | 2025 ($ in Thousands) | 2024 ($ in Thousands) | | :-------------------------- | :---------- | :---------- | | TTEC Digital | $11,409 | $6,008 | | TTEC Engage | $7,467 | $(230,421) | | Total | $18,876 | $(224,413) |

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides details on the Form 10-Q filing, including company identification and reporting status [Form 10-Q Details](index=1&type=section&id=Form%2010-Q%20Details) This chapter details the company's Quarterly Report on Form 10-Q for Q2 2025, identifying TTEC Holdings, Inc. as a Delaware corporation and a Smaller Reporting Company - The report is a **Quarterly Report on Form 10-Q** for the period ended **June 30, 2025**[2](index=2&type=chunk) - **TTEC Holdings, Inc.** is a Delaware corporation with common stock traded on NASDAQ (**TTEC**)[2](index=2&type=chunk) - The registrant is classified as a **Smaller Reporting Company**[3](index=3&type=chunk)[4](index=4&type=chunk) [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements and management's discussion and analysis for the reporting period [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of TTEC Holdings, Inc. and its subsidiaries, including the Balance Sheets, Statements of Comprehensive Income (Loss), Statements of Stockholders' Equity, and Statements of Cash Flows, along with detailed notes explaining accounting policies, segment information, and other financial disclosures for the periods ended June 30, 2025 and December 31, 2024 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets and liabilities decreased, while total stockholders' equity increased from December 31, 2024, to June 30, 2025 Consolidated Balance Sheet Highlights (Amounts in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------------------- | :------------ | :---------------- | :----- | :------- | | Total current assets | $627,713 | $652,296 | $(24,583) | -3.77% | | Total long-term assets | $1,067,317 | $1,101,084 | $(33,767) | -3.07% | | **Total assets** | **$1,695,030**| **$1,753,380** | **$(58,350)**| **-3.33%**| | Total current liabilities | $355,289 | $353,936 | $1,353 | 0.38% | | Total long-term liabilities | $1,044,565 | $1,131,325 | $(86,760) | -7.67% | | **Total liabilities** | **$1,399,854**| **$1,485,261** | **$(85,407)**| **-5.75%**| | **Total stockholders' equity** | **$295,176** | **$268,119** | **$27,057**| **10.10%**| [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company reported a reduced net loss for Q2 2025, driven by lower impairment losses, despite a slight revenue decrease Consolidated Statements of Comprehensive Income (Loss) Highlights (Amounts in thousands, except per share amounts) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Change | % Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :----- | :------- | | Revenue | $513,571 | $534,085 | $(20,514) | -3.84% | | Income (loss) from operations | $18,876 | $(224,413) | $243,289 | 108.41% | | Net income (loss) | $(6,724) | $(296,768) | $290,044 | 97.73% | | Net income (loss) attributable to TTEC stockholders | $(7,987) | $(299,539) | $291,552 | 97.33% | | Basic EPS | $(0.17) | $(6.30) | $6.13 | 97.30% | | Diluted EPS | $(0.17) | $(6.30) | $6.13 | 97.30% | | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change | % Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :----- | :------- | | Revenue | $1,047,799 | $1,110,723 | $(62,924) | -5.66% | | Income (loss) from operations | $43,065 | $(201,702) | $244,767 | 121.35% | | Net income (loss) | $(3,478) | $(296,268) | $292,790 | 98.83% | | Net income (loss) attributable to TTEC stockholders | $(6,603) | $(301,844) | $295,241 | 97.81% | | Basic EPS | $(0.14) | $(6.35) | $6.21 | 97.79% | | Diluted EPS | $(0.14) | $(6.35) | $6.21 | 97.79% | - Impairment losses significantly decreased from **$236,716 thousand** in **Q2 2024** to **$764 thousand** in **Q2 2025**, contributing to the improved operating income[12](index=12&type=chunk) [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased, primarily due to positive foreign currency translation adjustments and derivative valuation gains Changes in Stockholders' Equity (Six Months Ended June 30, 2025, Amounts in thousands) | Item | Amount | | :------------------------------------ | :----- | | Balance as of December 31, 2024 | $268,119 | | Net (loss) income | $(3,478) | | Payments distributed to noncontrolling interest | $(4,101) | | Foreign currency translation adjustments | $22,881 | | Derivatives valuation, net of tax | $5,221 | | Vesting of restricted stock units | $(1,038) | | Equity-based compensation expense | $7,301 | | Other, net of tax | $271 | | **Balance as of June 30, 2025** | **$295,176** | - Foreign currency translation adjustments contributed a gain of **$22,881 thousand** for the six months ended **June 30, 2025**, compared to a loss of **$(11,218) thousand** in the prior year[14](index=14&type=chunk) - Derivative valuation, net of tax, showed a gain of **$5,221 thousand** for the six months ended **June 30, 2025**, compared to a loss of **$(6,785) thousand** in the prior year[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased, driven by improved net income and working capital, with reduced investing cash outflow Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, Amounts in thousands) | Cash Flow Activity | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $114,301 | $33,645 | $80,656 | | Net cash used in investing activities | $(12,411) | $(27,566) | $15,155 | | Net cash (used in)/provided by financing activities | $(98,927) | $(75,702) | $(23,225) | | Decrease in cash, cash equivalents and restricted cash | $(2,432) | $(74,235) | $71,803 | | Cash, cash equivalents and restricted cash, end of period | $82,559 | $99,670 | $(17,111) | - The increase in operating cash flow was primarily due to a **$68.6 million increase in net working capital** and a **$12.1 million increase in net cash income from operations**[188](index=188&type=chunk) - Purchases of property, plant and equipment, net of acquisitions, decreased from **$27,682 thousand** in **2024** to **$12,587 thousand** in **2025**[17](index=17&type=chunk) [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies, segment performance, goodwill, derivatives, taxes, and other financial commitments [(1) OVERVIEW AND BASIS OF PRESENTATION](index=10&type=section&id=(1)%20OVERVIEW%20AND%20BASIS%20OF%20PRESENTATION) TTEC is a global CX outsourcing partner operating through TTEC Digital and TTEC Engage segments, serving 690 clients across 22 countries - TTEC is a **global CX outsourcing partner**, designing, building, and operating technology-enabled customer experiences[19](index=19&type=chunk) - The company operates through two segments: **TTEC Digital** (CX technology, AI/Analytics) and **TTEC Engage** (CX operational and managed services)[20](index=20&type=chunk)[23](index=23&type=chunk) - As of **June 30, 2025**, TTEC served approximately **690 clients** across targeted industry verticals in **22 countries**[19](index=19&type=chunk)[21](index=21&type=chunk) - The company adopted **ASU 2023-07, 'Segment Reporting - Improvements to Reportable Segment Disclosures,' effective December 31, 2024, retrospectively**[31](index=31&type=chunk) [(2) ACQUISITIONS AND DIVESTITURES](index=12&type=section&id=(2)%20ACQUISITIONS%20AND%20DIVESTITURES) This section details the Faneuil asset acquisition completion and the sale of former headquarters assets to reduce debt - The **Faneuil asset acquisition**, completed in April **2022**, was fully consolidated into the **TTEC Engage** segment[34](index=34&type=chunk) - The contingent payment obligation for the Faneuil acquisition was completed in **January 2025**, with no final earn-out payment required[36](index=36&type=chunk) - In **Q2 2024**, **$29.4 million** in assets (former headquarters building) were reclassified to 'Assets held for sale' and subsequently sold in **Q4 2024**, with proceeds used to reduce debt[38](index=38&type=chunk) [(3) SEGMENT INFORMATION](index=13&type=section&id=(3)%20SEGMENT%20INFORMATION) Both TTEC Digital and TTEC Engage segments experienced revenue declines but significant operating income improvements due to reduced charges - **TTEC Digital** focuses on **CX technology, cloud platforms (AWS, Cisco, Genesys, Google, Microsoft), and AI/Analytics**, serving enterprise and SMB clients[23](index=23&type=chunk)[40](index=40&type=chunk) - **TTEC Engage** provides **digitally enabled CX operational and managed services**, including customer support, tech support, revenue generation, fraud mitigation, AI operations, and back-office support[23](index=23&type=chunk)[44](index=44&type=chunk) Segment Revenue and Operating Income (Three Months Ended June 30, Amounts in thousands) | Segment | 2025 Revenue | 2024 Revenue | % Change Revenue | 2025 Operating Income | 2024 Operating Income (Loss) | % Change Operating Income | | :------------ | :----------- | :----------- | :--------------- | :-------------------- | :--------------------------- | :------------------------ | | TTEC Engage | $399,825 | $417,717 | -4.3% | $7,467 | $(230,421) | 103.2% | | TTEC Digital | $113,746 | $116,368 | -2.3% | $11,409 | $6,008 | 89.9% | | **Total** | **$513,571** | **$534,085** | **-3.8%** | **$18,876** | **$(224,413)** | **108.4%** | Segment Revenue and Operating Income (Six Months Ended June 30, Amounts in thousands) | Segment | 2025 Revenue | 2024 Revenue | % Change Revenue | 2025 Operating Income | 2024 Operating Income (Loss) | % Change Operating Income | | :------------ | :----------- | :----------- | :--------------- | :-------------------- | :--------------------------- | :------------------------ | | TTEC Engage | $826,013 | $882,324 | -6.4% | $25,792 | $(210,998) | 112.2% | | TTEC Digital | $221,786 | $228,399 | -2.9% | $17,273 | $9,296 | 85.8% | | **Total** | **$1,047,799** | **$1,110,723** | **-5.7%** | **$43,065** | **$(201,702)** | **121.3%** | Capital Expenditures by Segment (Six Months Ended June 30, Amounts in thousands) | Segment | 2025 | 2024 | | :------------ | :----- | :----- | | TTEC Digital | $3,660 | $4,077 | | TTEC Engage | $8,927 | $23,605 | | **Total** | **$12,587** | **$27,682** | [(4) SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS](index=17&type=section&id=(4)%20SIGNIFICANT%20CLIENTS%20AND%20OTHER%20CONCENTRATIONS) One automotive client contributed over 10% of revenue, while the allowance for credit losses increased, and a factoring agreement was terminated - **One automotive industry client contributed 10.7% of total revenue for the six months ended June 30, 2025, and 11.0% for the same period in 2024**[57](index=57&type=chunk) - The **allowance for credit losses increased to $5,000 thousand** at **June 30, 2025**, from **$4,757 thousand** at **June 30, 2024**[59](index=59&type=chunk) - The **Uncommitted Receivables Purchase Agreement with BMO Bank, N.A. was terminated in the third quarter of 2024**[60](index=60&type=chunk) [(5) GOODWILL](index=18&type=section&id=(5)%20GOODWILL) Goodwill slightly increased due to foreign currency effects, with all reporting units at risk for future impairment, though no new indicators arose in Q2 2025 Goodwill by Segment (Amounts in thousands) | Segment | December 31, 2024 | June 30, 2025 | Change | Effect of Foreign Currency | | :---------------------- | :---------------- | :------------ | :----- | :------------------------- | | TTEC Digital | $498,213 | $500,369 | $2,156 | $2,156 | | TTEC Engage | $72,984 | $74,014 | $1,030 | $1,030 | | **Total** | **$571,197** | **$574,383** | **$3,186** | **$3,186** | - As of **December 1, 2024**, **all three reporting units (Engage, Digital Recurring, Digital Professional Services) were identified as being at risk for future goodwill impairment**[62](index=62&type=chunk) - The estimated fair value of the Engage reporting unit exceeded its carrying value by approximately **17%** as of **December 1, 2024**[63](index=63&type=chunk) - **No triggering events or impairment indicators were concluded during the second quarter of 2025**[68](index=68&type=chunk) [(6) DERIVATIVES](index=19&type=section&id=(6)%20DERIVATIVES) The company uses foreign exchange derivatives to manage currency risk, with the total net fair value shifting from a liability to an asset - The company uses **foreign exchange forward and option contracts to reduce exposure to foreign currency exchange rate fluctuations**[70](index=70&type=chunk) Total Net Fair Value of Derivatives (Amounts in thousands) | Derivative Type | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Cash flow hedges | $1,853 | $(3,367) | | Fair value hedges | $161 | $(177) | | **Total net derivatives** | **$2,014** | **$(3,544)** | Foreign Exchange Cash Flow Hedges Notional Amounts (Amounts in thousands) | Currency | June 30, 2025 (USD Notional) | December 31, 2024 (USD Notional) | | :--------------- | :--------------------------- | :------------------------------- | | Philippine Peso | $69,153 | $105,098 | | Mexican Peso | $17,427 | $26,682 | | **Total** | **$86,580** | **$131,780** | - Net gains of **$488 thousand** and **$359 thousand** from cash flow hedges were reclassified from **Accumulated OCI** to **Net income (loss)** for the three and six months ended **June 30, 2025**, respectively[81](index=81&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk) [(7) FAIR VALUE](index=22&type=section&id=(7)%20FAIR%20VALUE) Assets and liabilities are measured at fair value using a three-level hierarchy, with derivatives classified as Level 2 and deferred compensation as Level 1 - **Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)**[87](index=87&type=chunk)[88](index=88&type=chunk) - **All derivative instruments are measured at fair value on a recurring basis using Level 2 inputs**[92](index=92&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk) Fair Value of Net Derivative Assets (Liabilities) (Amounts in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash flow hedges | $1,853 | $(3,367) | | Fair value hedges | $161 | $(177) | | **Total net derivative asset (liability)** | **$2,014** | **$(3,544)** | - The **deferred compensation plan asset**, valued at **$34,934 thousand** at **June 30, 2025**, is classified as **Level 1**[96](index=96&type=chunk)[97](index=97&type=chunk) [(8) IMPAIRMENT OF ASSETS](index=25&type=section&id=(8)%20IMPAIRMENT%20OF%20ASSETS) Impairment losses on assets significantly decreased for both the three and six months ended June 30, 2025, compared to the prior year Impairment Losses by Segment (Amounts in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------- | :------------------------------- | :------------------------------- | | TTEC Digital | $200 | $2,500 | | TTEC Engage | $600 | $700 | | **Total** | **$800** | **$3,200** | | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------- | :----------------------------- | :----------------------------- | | TTEC Digital | $200 | $2,500 | | TTEC Engage | $1,300 | $800 | | **Total** | **$1,500** | **$3,300** | - **Impairment losses are recognized when anticipated undiscounted future cash flows are less than the asset group's carrying value, using Level 3 inputs in discounted cash flow analysis**[101](index=101&type=chunk) [(9) INCOME TAXES](index=25&type=section&id=(9)%20INCOME%20TAXES) The effective tax rate was 121.6% for the six months ended June 30, 2025, influenced by low income and tax holidays, with no new valuation allowances - The **effective tax rate for the six months ended June 30, 2025, was 121.6%, compared to (23.5)% for the comparable period of 2024**[105](index=105&type=chunk)[182](index=182&type=chunk) - **No new valuation allowances were recorded in 2025, following $85.8 million in net valuation allowances recorded in 2024**[108](index=108&type=chunk) Tax Holiday Benefits (Amounts in millions) | Period | Aggregate Benefit to Income Tax Expense | | :----------------------------- | :------------------------------------ | | Three months ended June 30, 2025 | $0.6 | | Three months ended June 30, 2024 | $0.6 | | Six months ended June 30, 2025 | $1.2 | | Six months ended June 30, 2024 | $1.3 | - The **company is evaluating the recently signed One Big Beautiful Bill Act (OBBBA) and the OECD Pillar 2 framework, but neither is expected to have a material impact on consolidated financial statements or effective tax rate**[104](index=104&type=chunk)[107](index=107&type=chunk) [(10) COMMITMENTS AND CONTINGENCIES](index=28&type=section&id=(10)%20COMMITMENTS%20AND%20CONTINGENCIES) The Credit Agreement was amended to adjust covenants and commitment, with $882.5 million outstanding and $270 million borrowing capacity as of June 30, 2025 - The **Ninth Amendment to the Credit Agreement (August 8, 2024) adjusted financial covenants, reduced commitment to $1.2 billion, and increased pricing**[112](index=112&type=chunk) - As of **June 30, 2025**, borrowings under the Credit Facility were **$882.5 million**, with **$270 million** remaining borrowing capacity[119](index=119&type=chunk) - The **company was in compliance with all Credit Agreement covenants as of June 30, 2025, and is discussing extending the term through at least November 2027**[119](index=119&type=chunk)[112](index=112&type=chunk) - The **company believes the resolution of current legal proceedings will not have a material adverse effect on its financial position**[123](index=123&type=chunk) [(11) DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS](index=30&type=section&id=(11)%20DEFERRED%20REVENUE%20AND%20REMAINING%20PERFORMANCE%20OBLIGATIONS) Revenue recognized from deferred balances decreased, with total Remaining Performance Obligations at $396.9 million as of June 30, 2025 Revenue Recognized from Deferred Revenue (Six Months Ended June 30, Amounts in millions) | Period | Revenue Recognized | | :----------------------------- | :----------------- | | 2025 | $50.4 | | 2024 | $60.1 | - **Remaining Performance Obligations (RPO) as of June 30, 2025, totaled $396.9 million**[126](index=126&type=chunk) - Approximately **63%** of RPO is expected to be recognized in the next **12 months**, and **22%** in the subsequent **13 to 24 months**[126](index=126&type=chunk) [(12) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)](index=31&type=section&id=(12)%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Accumulated other comprehensive income improved, driven by positive foreign currency translation adjustments and derivative valuation gains Changes in Accumulated Other Comprehensive Income (Loss) (Six Months Ended June 30, 2025, Amounts in thousands) | Component | Balance Dec 31, 2024 | Net Current Period OCI (Loss) | Balance Jun 30, 2025 | | :------------------------------------ | :------------------- | :---------------------------- | :------------------- | | Foreign Currency Translation Adjustment | $(123,821) | $22,480 | $(101,341) | | Derivative Valuation, Net of Tax | $(5,583) | $5,221 | $(362) | | Other, Net of Tax | $(2,717) | $271 | $(2,446) | | **Totals** | **$(132,121)** | **$27,972** | **$(104,149)** | - **Foreign currency translation adjustments contributed $22,480 thousand in net current period other comprehensive income for the six months ended June 30, 2025**[128](index=128&type=chunk) - **Derivative valuation, net of tax, contributed $5,221 thousand in net current period other comprehensive income for the six months ended June 30, 2025**[128](index=128&type=chunk) [(13) WEIGHTED AVERAGE SHARE COUNTS](index=32&type=section&id=(13)%20WEIGHTED%20AVERAGE%20SHARE%20COUNTS) Basic and diluted weighted average shares outstanding are detailed, with anti-dilutive RSUs excluded from diluted EPS calculations Weighted Average Shares Outstanding (in thousands) | Period | Basic Shares (2025) | Basic Shares (2024) | Diluted Shares (2025) | Diluted Shares (2024) | | :----------------------------- | :------------------ | :------------------ | :-------------------- | :-------------------- | | Three Months Ended June 30 | 48,064 | 47,564 | 48,064 | 47,564 | | Six Months Ended June 30 | 47,918 | 47,498 | 47,918 | 47,498 | - **3.3 million outstanding RSUs were excluded from diluted net income per share computation for the three and six months ended June 30, 2025, due to their anti-dilutive effect**[131](index=131&type=chunk) [(14) EQUITY-BASED COMPENSATION PLANS](index=32&type=section&id=(14)%20EQUITY-BASED%20COMPENSATION%20PLANS) Equity-based compensation expense decreased, and no expense was recognized for PRSUs as performance targets were not deemed probable Equity-Based Compensation Expense (Amounts in thousands) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Cost of services | $1,523 | $1,991 | | Selling, general and administrative | $2,528 | $3,113 | | **Total** | **$4,051** | **$5,104** | | Period | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Cost of services | $2,651 | $4,235 | | Selling, general and administrative | $4,650 | $6,681 | | **Total** | **$7,301** | **$10,916** | - As of **June 30, 2025**, there was approximately **$21.7 million** of total unrecognized compensation cost related to RSUs[135](index=135&type=chunk) - **No compensation expense was recognized for performance-based RSUs (PRSUs) in 2025 because defined minimum targets were not deemed probable of being achieved**[136](index=136&type=chunk)[137](index=137&type=chunk) [(15) NON-QUALIFIED DEFERRED COMPENSATION PLAN](index=35&type=section&id=(15)%20NON-QUALIFIED%20DEFERRED%20COMPENSATION%20PLAN) The company maintains a non-qualified deferred compensation plan, with additional deferrals suspended for 2025 and until further notice - The **NQ Deferred Compensation Plan allows executive officers and eligible employees to defer a portion of their compensation on a pretax basis**[140](index=140&type=chunk) - **All deferred amounts are unfunded, unsecured obligations and are recorded within Other long-term liabilities**[140](index=140&type=chunk) - **Additional deferrals into the plan were suspended for 2025 and until further notice**[140](index=140&type=chunk) [(16) RELATED PARTY TRANSACTIONS](index=35&type=section&id=(16)%20RELATED%20PARTY%20TRANSACTIONS) This section details expenses for aviation flight services from entities owned by the CEO and consulting services from a firm with a former board member - The **company expensed $0.3 million to Avion, LLC and Airmax LLC for aviation flight services during the six months ended June 30, 2025**[141](index=141&type=chunk) - **Kenneth D. Tuchman, Chairman and CEO, has indirect 100% beneficial ownership in Avion and Airmax**[141](index=141&type=chunk) - The **company expensed $1.5 million to Willis (WTW) for consulting and insurance services during the six months ended June 30, 2024, while former President Michelle Swanback was a board member**[142](index=142&type=chunk) [(17) SUBSEQUENT EVENTS](index=35&type=section&id=(17)%20SUBSEQUENT%20EVENTS) Kenneth Tuchman, Chairman and CEO, withdrew his proposal to take the company private on July 31, 2025, citing market conditions - **Kenneth Tuchman withdrew his non-binding proposal to take the company private on July 31, 2025, due to market conditions**[143](index=143&type=chunk) - **Mr. Tuchman beneficially owns approximately 58% of the company's common stock**[143](index=143&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial performance, highlighting revenue decrease, significant operating income improvement, liquidity, and market risks [Executive Summary](index=39&type=section&id=Executive%20Summary) TTEC is a global CX outsourcing partner, serving 690 clients across 22 countries through its Digital and Engage segments, investing in innovation and expansion - TTEC is a **global customer experience (CX) outsourcing partner** for marquee and disruptive brands and public sector clients[150](index=150&type=chunk) - The company operates through two segments: **TTEC Digital (CX technology, AI/Analytics) and TTEC Engage (CX operational and managed services)**[151](index=151&type=chunk)[156](index=156&type=chunk) - TTEC continues to **invest in innovation, technology-enabled services, data analytics, and global expansion**[154](index=154&type=chunk)[155](index=155&type=chunk) [Financial Highlights](index=41&type=section&id=Financial%20Highlights) Q2 2025 revenue decreased by 3.8%, but operating income significantly increased due to the absence of a large goodwill impairment charge Q2 2025 Revenue and Operating Income Highlights (Amounts in millions) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :-------------------- | :------ | :------ | :----- | :------- | | Total Revenue | $513.6 | $534.1 | $(20.5) | -3.8% | | TTEC Digital Revenue | $113.7 | $116.4 | $(2.6) | -2.3% | | TTEC Engage Revenue | $399.8 | $417.7 | $(17.9) | -4.3% | | Income (loss) from operations | $18.9 | $(224.4) | $243.3 | 108.4% | - The **increase in operating income margin is due to the Q2 2024 goodwill impairment of $233.5 million and other factors**[158](index=158&type=chunk) - **Offshore locations contributed 37% of TTEC Engage's revenue in Q2 2025, up from 33% in Q2 2024**[160](index=160&type=chunk) - **Overall capacity utilization for TTEC Engage was 71% as of June 30, 2025, down from 72% in the prior year, due to reduced client forecasts and seat reductions in the U.S. and Philippines**[161](index=161&type=chunk) [Recent Developments](index=41&type=section&id=Recent%20Developments) Kenneth Tuchman, TTEC's Chairman and CEO, withdrew his non-binding proposal to take the company private on July 31, 2025, citing market conditions - **Kenneth Tuchman withdrew his non-binding proposal to take the company private on July 31, 2025**[163](index=163&type=chunk) - The **decision was made due to market conditions**[163](index=163&type=chunk) - **Mr. Tuchman beneficially owns approximately 58% of the company's common stock**[163](index=163&type=chunk) [Smaller Reporting Company Status](index=41&type=section&id=Smaller%20Reporting%20Company%20Status) TTEC, a 'smaller reporting company,' elected not to use scaled disclosures in this Form 10-Q, maintaining prior disclosure levels - TTEC is a **'smaller reporting company' as defined in Item 10(f)(1) of Regulation S-K**[164](index=164&type=chunk) - The **company elected not to avail itself of scaled disclosures in this Form 10-Q**[164](index=164&type=chunk) [Recently Issued Accounting Pronouncements](index=41&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) Details on recently adopted and issued accounting pronouncements are provided in Note 1 to the Consolidated Financial Statements - **Refer to Part I, Item I. Financial Statements, Note 1 for details on recently adopted and issued accounting pronouncements**[165](index=165&type=chunk) [Critical Accounting Policies and Estimates](index=42&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Financial statement preparation requires management estimates and assumptions, regularly reviewed and detailed in the 2024 Annual Report on Form 10-K - The **preparation of financial statements requires management to make estimates and assumptions in conformity with GAAP**[166](index=166&type=chunk) - **Estimates are based on historical experience and various other reasonable assumptions**[166](index=166&type=chunk) - **Further information on critical accounting policies is in Note 1 of the 2024 Annual Report on Form 10-K**[166](index=166&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) This section details the financial performance of TTEC Digital and Engage segments, along with consolidated interest, other income/expense, and income taxes [Three months ended June 30, 2025 compared to three months ended June 30, 2024](index=42&type=section&id=Three%20months%20ended%20June%2030,%202025%20compared%20to%20three%20months%20ended%20June%2030,%202024) Q2 2025 saw revenue declines for both segments, but significant operating income improvements, alongside increased interest income and a high effective tax rate Segment Performance (Three Months Ended June 30, Amounts in thousands) | Segment | 2025 Revenue | 2024 Revenue | % Change Revenue | 2025 Operating Income | 2024 Operating Income (Loss) | % Change Operating Income | | :------------ | :----------- | :----------- | :--------------- | :-------------------- | :--------------------------- | :------------------------ | | TTEC Digital | $113,746 | $116,368 | -2.3% | $11,409 | $6,008 | 89.9% | | TTEC Engage | $399,825 | $417,717 | -4.3% | $7,467 | $(230,421) | 103.2% | - **TTEC Digital's operating income increase was primarily due to software sales, lower employee-related costs, improved utilization, and lower impairment expenses**[169](index=169&type=chunk) - **TTEC Engage's operating income increase was primarily attributable to the Q2 2024 goodwill impairment of $233.5 million and lower restructuring expenses**[171](index=171&type=chunk) - **Interest income increased to $3.2 million from $0.4 million, mainly due to $3.0 million interest on an aged VAT receivable**[172](index=172&type=chunk) - The **effective tax rate for Q2 2025 was 288.7%, driven by income distribution, tax holidays, foreign currency, and valuation allowances**[174](index=174&type=chunk) [Six months ended June 30, 2025 compared to six months ended June 30, 2024](index=44&type=section&id=Six%20months%20ended%20June%2030,%202025%20compared%20to%20six%20months%20ended%20June%2030,%202024) For the six months ended June 30, 2025, both segments experienced revenue declines but significant operating income improvements, with increased interest income and a 121.6% effective tax rate Segment Performance (Six Months Ended June 30, Amounts in thousands) | Segment | 2025 Revenue | 2024 Revenue | % Change Revenue | 2025 Operating Income | 2024 Operating Income (Loss) | % Change Operating Income | | :------------ | :----------- | :----------- | :--------------- | :-------------------- | :--------------------------- | :------------------------ | | TTEC Digital | $221,786 | $228,399 | -2.9% | $17,273 | $9,296 | 85.8% | | TTEC Engage | $826,013 | $882,324 | -6.4% | $25,792 | $(210,998) | 112.2% | - **TTEC Digital's operating income increase was primarily due to software sales, lower employee-related costs, improved utilization, and lower impairment expenses**[177](index=177&type=chunk) - **TTEC Engage's revenue decrease was due to a long-tenured client exiting a large line of business and lower demand from large onshore enterprise clients**[178](index=178&type=chunk) - **Interest income increased to $7.8 million from $1.4 million, mainly due to $7.3 million interest on an aged VAT receivable**[180](index=180&type=chunk) - The **effective tax rate for the six months ended June 30, 2025, was 121.6%, compared to (23.5)% in the prior year**[182](index=182&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) TTEC's liquidity is driven by operating cash flow, which significantly increased, alongside substantial free cash flow and planned capital expenditures - **Principal liquidity sources are cash from operations, cash and cash equivalents, and borrowings under the Credit Facility**[183](index=183&type=chunk) - **Net cash provided by operating activities increased to $114.3 million for the six months ended June 30, 2025, from $33.6 million in 2024**[188](index=188&type=chunk) Free Cash Flow (Six Months Ended June 30, Amounts in thousands) | Metric | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Net cash provided by operating activities | $114,301 | $33,645 | | Less: Purchases of property, plant and equipment | $12,587 | $27,682 | | **Free cash flow** | **$101,714** | **$5,963** | - **Expected total capital expenditures in 2025 are between 1.7% and 1.9% of revenue, with 53% for growth and 47% for maintenance**[195](index=195&type=chunk) - The **five largest clients accounted for 31.3% of consolidated revenue for the six months ended June 30, 2025**[197](index=197&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) TTEC faces market risks from interest rate fluctuations and foreign currency exchange rates, mitigated by a cash flow hedging program, with no marketable securities held [Interest Rate Risk](index=50&type=section&id=Interest%20Rate%20Risk) The company's variable-rate Credit Agreement exposes it to interest rate risk, with $882.5 million outstanding at an average 7.0% rate - The **interest rate on the Credit Agreement is variable, based on Prime Rate and SOFR**[200](index=200&type=chunk) - As of **June 30, 2025, $882.5 million was outstanding under the Credit Agreement, with an average interest rate of 7.0% per annum**[200](index=200&type=chunk) - A **100 basis point increase in interest rates would lead to an annualized $1.0 million additional interest expense per $100.0 million of outstanding borrowing**[200](index=200&type=chunk) [Foreign Currency Risk](index=50&type=section&id=Foreign%20Currency%20Risk) TTEC faces foreign currency risk from international operations, with 23% of revenue exposed, partially mitigated by a cash flow hedging program - **Foreign subsidiaries use local currencies for costs but derive revenue in U.S. dollars or other foreign currencies, creating foreign currency risk**[201](index=201&type=chunk) - **Revenue associated with foreign exchange risk was 23% of consolidated revenue for the six months ended June 30, 2025**[201](index=201&type=chunk) - The **company uses a cash flow hedging program to mitigate this risk, but not all exposures are hedged**[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) [Cash Flow Hedging Program](index=50&type=section&id=Cash%20Flow%20Hedging%20Program) The cash flow hedging program uses forward and option contracts to hedge foreign currency exposure, with $86.6 million notional amount as of June 30, 2025 - The **cash flow hedging program uses forward and/or option contracts to acquire functional currency at fixed exchange rates**[203](index=203&type=chunk) Cash Flow Hedges Notional Amounts (As of June 30, 2025, Amounts in thousands) | Currency | U.S. Dollar Notional | | :--------------- | :------------------- | | Philippine Peso | $69,153 | | Mexican Peso | $17,427 | | **Total** | **$86,580** | - **Net gains of $0.5 million were recorded for settled cash flow hedge contracts for the six months ended June 30, 2025**[209](index=209&type=chunk) [Fair Value of Debt and Equity Securities](index=51&type=section&id=Fair%20Value%20of%20Debt%20and%20Equity%20Securities) The company held no investments in marketable debt or equity securities as of June 30, 2025, or December 31, 2024 - The **company did not have any investments in marketable debt or equity securities as of June 30, 2025, or December 31, 2024**[211](index=211&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures, acknowledges inherent limitations, and reports no material changes in internal control [Disclosure Controls and Procedures](index=52&type=section&id=Disclosure%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025 - **Disclosure controls and procedures are designed to provide reasonable assurance that required information is recorded, processed, summarized, and reported timely**[214](index=214&type=chunk) - The **CEO and CFO concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025**[215](index=215&type=chunk) [Inherent Limitations of Internal Controls](index=52&type=section&id=Inherent%20Limitations%20of%20Internal%20Controls) Management acknowledges that internal controls provide reasonable, not absolute, assurance due to inherent limitations like faulty judgments and errors - **Internal controls can provide only reasonable, not absolute, assurance that objectives are met**[216](index=216&type=chunk) - **Inherent limitations include faulty judgments, simple errors, circumvention by individuals or collusion, and deterioration over time**[216](index=216&type=chunk) [Changes in Internal Control over Financial Reporting](index=52&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025 - **No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025**[217](index=217&type=chunk) [PART II. OTHER INFORMATION](index=52&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, other information, and exhibits for the reporting period [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings is incorporated by reference from Note 10 to the Consolidated Financial Statements - **Information on legal proceedings is incorporated by reference from Note 10 to the Consolidated Financial Statements**[219](index=219&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the Risk Factors were reported compared to the 2024 Annual Report on Form 10-K - **No material changes to the Risk Factors were reported compared to the Annual Report on Form 10-K for the year ended December 31, 2024**[221](index=221&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a stock repurchase program, but no repurchases have been authorized since 2017, with no current plans for 2025 - The **company has a stock repurchase program launched in 2001**[222](index=222&type=chunk) - The **Board has not authorized stock repurchases since 2017 and has no current plans for additional repurchases in 2025**[222](index=222&type=chunk) [Item 5. Other Information](index=54&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025 - **No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during Q2 2025**[224](index=224&type=chunk) [Item 6. Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including management incentive agreements, CEO/CFO certifications, and XBRL documents - **Exhibits include the Management Incentive Program Agreement for 2025 PRSU value equivalent award (10.32)**[226](index=226&type=chunk) - **Certifications of the CEO and CFO (31.1, 31.2, 32.1, 32.2) are filed or furnished herewith**[226](index=226&type=chunk) - **XBRL Instance Document, Taxonomy Extension Schema, Calculation, Definition, Label, and Presentation Linkbases are included (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE)**[226](index=226&type=chunk) [CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS](index=36&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD%20LOOKING%20STATEMENTS) This section provides a cautionary note regarding forward-looking statements, advising against undue reliance due to inherent risks and uncertainties [Forward-Looking Statements Disclosure](index=36&type=section&id=Forward-Looking%20Statements%20Disclosure) This disclosure cautions against undue reliance on forward-looking statements, which are subject to risks and uncertainties detailed in SEC filings - The **report contains 'forward-looking statements' regarding operations, financial condition, strategy, and other business matters**[144](index=144&type=chunk) - **Readers are cautioned not to rely unduly on forward-looking statements, as actual results may differ materially due to various risks and uncertainties**[146](index=146&type=chunk) - **Important factors that could cause actual results to differ are outlined in Part II, Item 1A. Risk Factors of this report and the Annual Report on Form 10-K**[146](index=146&type=chunk) [SIGNATURES](index=55&type=section&id=SIGNATURES) This section contains the official signatures for the report, confirming its submission in accordance with the Securities Exchange Act of 1934 [Report Signatures](index=55&type=section&id=Report%20Signatures) The report was duly signed on August 7, 2025, by the Chairman and CEO, and the Chief Financial Officer - The **report was signed on August 7, 2025**[229](index=229&type=chunk) - **Signatories include Kenneth D. Tuchman, Chairman and Chief Executive Officer, and Kenneth R. Wagers, III, Chief Financial Officer**[229](index=229&type=chunk)[230](index=230&type=chunk)

Core Insights - TTEC Holdings, Inc. has announced that its founder and CEO, Kenneth Tuchman, will not pursue his previously announced proposal to acquire outstanding shares of the company due to market conditions [1] - The Board of Directors expresses full confidence in TTEC's leadership and its ability to thrive as a public company in the customer experience (CX) sector [2] - TTEC is set to release its Q2 2025 earnings results on August 7, 2025, followed by a live webcast and conference call on August 8, 2025 [2] Company Overview - TTEC Holdings, Inc. is a leading global innovator in customer experience (CX) technology and services, focusing on AI-enabled digital CX solutions [3] - The company provides outcome-based solutions that enhance customer interactions across various channels and improve the customer journey [3] - TTEC operates two main business segments: TTEC Digital, which focuses on omnichannel contact center technology and analytics, and TTEC Engage, which delivers AI-enabled customer engagement and support services [3] - Founded in 1982, TTEC has achieved high satisfaction scores from clients, customers, and employees globally, operating on six continents [3]