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]