Financial Performance - TTEC's Q3 2025 revenue was $519.1 million, a decrease of $10.3 million or 1.9% compared to Q3 2024, with TTEC Digital contributing $121.9 million (23%) and TTEC Engage $397.2 million (77%) to total revenue [160]. - TTEC Digital segment revenue increased by $6.2 million or 5.4% to $121.9 million in Q3 2025, while TTEC Engage segment revenue decreased by $16.5 million or 4.0% to $397.2 million [164]. - Operating income for TTEC Digital decreased to $4.9 million (4.0% margin) in Q3 2025 from $7.5 million (6.5% margin) in Q3 2024, primarily due to lower margins in recurring business [175]. - TTEC Engage's operating income increased to $7.5 million (1.9% margin) in Q3 2025 from $5.4 million (1.3% margin) in Q3 2024, attributed to lower impairment expenses [177]. - For the nine months ended September 30, 2025, TTEC Digital revenue was $343.7 million, a slight decrease of $0.4 million or 0.1%, while operating income increased by $5.4 million or 32.0% to $22.1 million [182]. - TTEC Engage revenue for the nine months ended September 30, 2025 was $1.2 billion, a decrease of $72.8 million or 5.6%, with operating income improving to $33.3 million from a loss of $205.6 million [184]. Interest and Other Income - Interest income for Q3 2025 increased to $0.5 million from $0.3 million in Q3 2024, while interest expense decreased to $16.6 million from $21.7 million due to lower utilization and rates [178]. - Other income for Q3 2025 was $3.8 million, a significant increase from an expense of $1.0 million in Q3 2024, including a $1.7 million gain from an aged VAT receivable recovery [179]. Taxation - The effective tax rate for Q3 2025 was 21,930.3%, compared to (98.1)% in Q3 2024, influenced by income distribution across jurisdictions and foreign currency gains [180]. - The effective tax rate for the nine months ended September 30, 2025, was 189.9%, compared to (26.4)% for the same period in 2024 [188]. Cash Flow and Capital Expenditures - Operating cash flows for the nine months ended September 30, 2025, were $118.5 million, a significant increase from $(57.7) million in 2024 [189][195]. - Cash and cash equivalents decreased to $73.5 million as of September 30, 2025, down from $85.0 million at the end of 2024 [194]. - Free cash flow for the nine months ended September 30, 2025, was $92.1 million, compared to $(94.2) million for the same period in 2024 [198]. - Net cash flows used in investing activities decreased to $21.9 million for the nine months ended September 30, 2025, from $36.3 million in 2024 [196]. - Net cash flows provided by/(used in) financing activities were $(102.9) million for the nine months ended September 30, 2025, compared to $14.8 million in 2024, primarily due to a $(122.5) million net change in the line of credit [197]. - Total capital expenditures in 2025 are expected to be between 1.8% and 2.0% of revenue, with 55% allocated for business growth and 45% for maintenance [202]. - The company anticipates that the amount of capital required over the next 12 months will depend on investment levels in infrastructure and potential acquisitions [203]. Client Relationships - The company has long-term relationships with its top five clients, which accounted for 31.8% of consolidated revenue for the three months ended September 30, 2025 [204]. - Some contracts with the five largest clients expire between 2026 and 2029, but the company has historically renewed most contracts [205]. - One client represented more than 10% of total revenue during the nine months ended September 30, 2025 and 2024 [204]. - The five largest clients accounted for 31.8% and 31.5% of consolidated revenue for the three months ended September 30, 2025 and 2024, respectively [204]. - For the nine months ended September 30, 2025 and 2024, the five largest clients represented 31.0% and 32.6% of consolidated revenue, respectively [204]. - Long-term relationships with top five clients range from 6 to 23 years, with multiple contract renewals completed [204]. - Contracts with the five largest clients expire between 2026 and 2029, with many clients having multiple contracts with different expiration dates [205]. - Historical renewal rate of contracts with largest clients is high, but future renewals are not guaranteed [205].

Financial Performance - Revenue for Q3 2025 was $519.1 million, a decrease of 1.9% from $529.4 million in the prior year [7] - Net loss was $11.1 million, representing a negative 2.1% of revenue, compared to a net loss of $18.968 million in the prior year [6][28] - Adjusted EBITDA was $43.4 million, or 8.4% of revenue, down from $50.3 million, or 9.5% of revenue in the prior year [5][8] Segment Performance - TTEC Digital reported revenue of $121.9 million, an increase of 5.4% compared to $115.7 million in the prior year, but operating income decreased to $4.9 million [16] - TTEC Engage generated revenue of $397.2 million, a decrease of 4.0% from $413.8 million in the prior year, with operating income increasing to $7.5 million [16] Business Outlook - The company reiterated its full-year 2025 guidance, projecting revenue between $2.064 billion and $2.114 billion, with a midpoint of $2.089 billion [14] - Non-GAAP adjusted EBITDA for the full year is expected to be between $215 million and $235 million, with a midpoint of $225 million [14] - The company is confident in the profitability growth for TTEC Engage in Q4 2025, driven by higher healthcare seasonality [13] Cash Flow and Balance Sheet - Cash flow from operations in Q3 2025 was $4.2 million, a significant improvement from a negative $91.4 million in Q3 2024 [15] - As of September 30, 2025, TTEC had cash and cash equivalents of $73.5 million and total debt of $886.0 million, resulting in a net debt position of $812.5 million [15][33] Management Commentary - The CEO highlighted that the decline in profitability was anticipated due to upfront expenses for growth and seasonal ramps in healthcare [2] - The company is focusing on a digital-first approach that integrates AI and analytics to enhance customer experience [3]

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]

Core Insights - TTEC Digital has been recognized as a member of the Microsoft Inner Circle for the 2025-2026 period, highlighting its outstanding sales achievements and innovation in AI-enabled customer experience solutions [1][2][4] - This marks the tenth consecutive year that TTEC Digital has received this recognition, underscoring its long-term collaboration with Microsoft and commitment to transforming business outcomes through AI [2][3] Company Achievements - TTEC Digital ranks among the top partners in Microsoft's AI Business Solutions global network, reflecting its high-level performance in delivering valuable solutions [1][4] - The company has previously achieved multiple Microsoft Solutions Partner designations, including Business Applications & Modern Work, Data & AI, and Digital Apps & Innovation, along with accolades such as Microsoft Dynamics 365 Marketing Partner of the Year [4] Strategic Collaboration - TTEC Digital collaborates closely with Microsoft to enhance customer engagement by integrating strategic insights with advanced technology, focusing on AI-driven solutions [3][4] - Inner Circle partners, including TTEC Digital, have opportunities to engage with Microsoft senior leaders, discuss strategies, and collaborate on best practices, which can further enhance their service offerings [3][4] Industry Impact - The recognition of TTEC Digital as an Inner Circle partner emphasizes the importance of trusted collaboration in accelerating AI-driven transformation across industries [4] - TTEC's innovative solutions aim to modernize operations, streamline decision-making, and drive sustainable growth for organizations [4]

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) |