TTEC (US:TTEC)2025-11-06 21:31Financial Performance - Third quarter 2025 revenue was $519.1 million, a 1.9% decrease from $529.4 million in the prior year[7] - Net loss for the third quarter 2025 was $11.1 million, or negative 2.1% of revenue, compared to a net loss of $5.9 million in the prior year[1] - Adjusted EBITDA for the third quarter 2025 was $43.4 million, or 8.4% of revenue, down from $50.3 million, or 9.5% of revenue in the prior year[5] - Non-GAAP income from operations for the third quarter 2025 was $28.9 million, or 5.6% of revenue, down from $34.1 million, or 6.4% of revenue in the prior year[7] - Revenue for the three months ended September 30, 2025, was $519.143 million, a decrease of 1.4% from $529.427 million in the same period of 2024[30] - Operating expenses totaled $506.814 million for the three months ended September 30, 2025, down from $516.538 million in the prior year, reflecting a reduction of 1.4%[30] - Net loss attributable to TTEC stockholders for the three months ended September 30, 2025, was $13.371 million, compared to a net loss of $21.122 million in the same period of 2024[30] - The income from operations margin for the three months ended September 30, 2025, was 2.4%, consistent with the margin from the same period in 2024[30] - TTEC Digital segment revenue for the three months ended September 30, 2025, was $121.916 million, an increase of 5.4% from $115.669 million in the same period of 2024[32] - TTEC Engage segment revenue for the three months ended September 30, 2025, was $397.227 million, a decrease of 4.0% from $413.758 million in the same period of 2024[32] - Revenue for Q3 2025 was $519,143, a decrease of 1.4% from $529,427 in Q3 2024[38] - Non-GAAP Income from Operations for Q3 2025 was $28,883, down 15.3% from $34,068 in Q3 2024[38] - Adjusted EBITDA for Q3 2025 was $43,355, representing a margin of 8.4%, compared to 9.5% in Q3 2024[38] - Non-GAAP EPS for Q3 2025 was $0.12, an increase from $0.11 in Q3 2024[39] - Free Cash Flow for Q3 2025 was $(9,590), an improvement from $(100,160) in Q3 2024[39] - TTEC Engage segment reported a Non-GAAP Income from Operations of $17,260 for Q3 2025, compared to $19,657 in Q3 2024[41] - TTEC Digital segment reported a Non-GAAP Income from Operations of $11,623 for Q3 2025, down from $14,411 in Q3 2024[41] Cash Flow and Assets - Cash flow from operations improved to $4.2 million in the third quarter 2025, compared to a negative $91.4 million in the same quarter of 2024[7] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $118.505 million, compared to a net cash outflow of $57.732 million in the same period of 2024[36] - Net cash provided by operating activities for Q3 2025 was $4,204, compared to $(91,377) in Q3 2024[39] - Cash and cash equivalents at the end of the period were $73.508 million, a decrease from $84.991 million at the beginning of the period[36] - Total assets as of September 30, 2025, were $1.682 billion, down from $1.753 billion as of December 31, 2024[34] Guidance and Future Plans - Full year 2025 revenue guidance is set between $2,064 million and $2,114 million, with a midpoint of $2,089 million[15] - Non-GAAP adjusted EBITDA for full year 2025 is expected to be between $215 million and $235 million, with a midpoint of $225 million[15] - TTEC plans to extend its Credit Facility term through November 23, 2027, enhancing financial flexibility[11] Innovation and Market Expansion - The company deployed AI in over a hundred programs across numerous customers, indicating a strong focus on innovation and market expansion[3] Tax Rate - The effective tax rate for the three months ended September 30, 2025, was 21,798%, significantly higher than the effective tax rate of (98.1)% in the same period of 2024[30] Restructuring Charges - The company incurred restructuring charges of $1,771 in Q3 2025, compared to $1,002 in Q3 2024[38]