TTEC (NASDAQ: TTEC) Q2 2026 revenue falls 11% as it weighs options for Digital
Rhea-AI Filing Summary
TTEC Holdings, Inc. reported weaker results for the quarter ended June 30, 2026 and initiated a review of strategic options for its TTEC Digital segment. Second quarter 2026 GAAP revenue was $455.5 million, an 11.3% decrease from $513.6 million a year earlier. GAAP income from operations fell to $11.0 million, or 2.4% of revenue, from $18.9 million, or 3.7% of revenue. The company recorded a GAAP fully diluted net loss per share of $0.27, versus a net loss per share of $0.14 in the prior-year quarter, while Non-GAAP fully diluted earnings per share declined to $0.03 from $0.22.
By segment, TTEC Digital’s revenue was $104.0 million, down 8.5%, with income from operations of $6.7 million, or 6.4% of revenue. TTEC Engage revenue was $351.5 million, down from $399.8 million, with income from operations of $4.3 million. The board authorized management to evaluate potential strategic alternatives for TTEC Digital, with PJT Partners acting as independent financial advisor, and emphasized that no specific outcome is assured. For full year 2026, the company projects total revenue of $1.94–$1.99 billion, Non-GAAP adjusted EBITDA of $205–$225 million (margin 10.6–11.3%), and Non-GAAP EPS of $0.79–$0.99.
Positive
- None.
Negative
- Revenue declined 11.3% year over year in Q2 2026 to $455.5 million from $513.6 million, indicating a meaningful contraction in topline performance.
- Profitability deteriorated: GAAP net loss per diluted share widened to $0.27 from $0.14, and Non-GAAP EPS fell to $0.03 from $0.22 in the prior-year quarter.
- Segment margins compressed: Digital operating margin decreased to 6.4% from 10.0%, and consolidated adjusted EBITDA margin fell to 8.7% from 10.1% year over year.
Filing Explained
The TTEC Digital review remains exploratory: the board set no deadline or definitive timeline, and TTEC says it does not expect to report developments unless a definitive agreement is executed or further disclosure is appropriate or required.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Non-GAAP Income from Operations financial
strategic alternatives financial
effective tax rate financial
Earnings Snapshot
For full year 2026, the company projects revenue of $1.94–$1.99 billion, Non-GAAP adjusted EBITDA of $205–$225 million with margins of 10.6–11.3%, Non-GAAP operating income of $145–$165 million, and Non-GAAP EPS of $0.79–$0.99.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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Item 2.02 Results of Operations and Financial Condition.
On August 10, 2026 TTEC Holdings, Inc. (“TTEC”) issued a press release announcing financial results for its second quarter 2026, the reporting period ended June 30, 2026.
A copy of the August 10, 2026 press release is attached hereto as Exhibit 99.1 to this current report on Form 8-K and incorporated into this Item 2.02 by reference.
The information in this Item 2.02 of Form 8-K and Exhibit 99.1 hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press release announcing financial results for second quarter ended June 30, 2026 | |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TTEC Holdings, Inc. | ||
| (Registrant) | ||
| Date: August 10, 2026 | By: | /s/ Kenneth R. Wagers, III |
| Kenneth R. Wagers, III Chief Financial Officer | ||
2
Exhibit 99.1
TTEC Announces Second Quarter 2026 Financial Results
Updates Outlook for Full Year 2026
Reviewing Strategic Alternatives Related to its TTEC Digital Business Segment
AUSTIN, Texas, August 10, 2026 – TTEC Holdings, Inc. (NASDAQ:TTEC), a leading global technology, consulting and managed services company focused on delivering solutions at the intersection of data, AI and customer experience, announced today financial results for the second quarter ended June 30, 2026.
“Second quarter 2026 was a challenging quarter with performance that fell short of our plan. While we are disappointed in our results, we remain confident in our path forward. Across both TTEC Engage and TTEC Digital, our priorities remain clear: continue to sharpen our go-to-market approach and return to our historic levels of growth and profitability,” commented Ken Tuchman, TTEC chairman and chief executive officer.
Tuchman continued, “In TTEC Engage, we are strengthening sales execution and securing strategic enterprise wins across key verticals, including automotive, healthcare, retail, and travel. At the same time, we are working with clients to optimize or transition low-margin programs, deploying practical front-line AI and automation to boost productivity, and simplifying our overall cost structure through targeted operational efficiencies and best shore delivery models.”
“In TTEC Digital, we are gaining market traction as we successfully expand our CX technology and services to solutions in high demand – data, AI, observability and security. This increasing momentum paired with our disciplined execution and robust pipeline, reinforces our full-year outlook and keeps TTEC Digital on track to hit its revenue and profitability target,” commented Tuchman.
TTEC Exploring Strategic Alternatives for TTEC Digital
TTEC announced today that its Board of Directors authorized management to evaluate potential strategic alternatives for its TTEC Digital business to best position it to realize its full growth potential and maximize shareholder value.
While the Board is prepared to consider a range of alternatives, it will prioritize transactions that sustain and enhance the continued commercial collaboration and innovation between TTEC Engage and TTEC Digital.
PJT Partners is serving as an independent financial advisor to TTEC in connection with the review of strategic and capital markets alternatives. The Board has not set a deadline or definitive timeline for the completion of this review, and the Company does not intend to disclose developments unless or until a definitive agreement is executed or the Board determines that further disclosure is appropriate or required. There can be no assurance that this process will result in any particular transaction or outcome.
SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS
Revenue
| · | Second quarter 2026 GAAP revenue was $455.5 million, an 11.3 percent decrease compared to $513.6 million in the prior year. | |
| · | Foreign exchange had a $0.3 million negative impact on revenue in the second quarter of 2026. |
Income from Operations
| · | Second quarter 2026 GAAP income from operations was $11.0 million, or 2.4 percent of revenue, compared to $18.9 million, or 3.7 percent of revenue in the prior year. | |
| · | Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $25.7 million, or 5.7 percent of revenue, compared to $36.8 million, or 7.2 percent of revenue in the prior year. | |
| · | Foreign exchange had a $0.8 million positive impact on Non-GAAP income from operations in the second quarter of 2026. |
Adjusted EBITDA
| · | Second quarter 2026 Non-GAAP Adjusted EBITDA was $39.5 million, or 8.7 percent of revenue, compared to $51.8 million, or 10.1 percent of revenue in the prior year. |
Earnings Per Share
| · | Second quarter 2026 GAAP fully diluted net loss per share was $0.27 compared to net loss per share of $0.14 in the prior year. | |
| · | Non-GAAP fully diluted earnings per share was $0.03 compared to $0.22 in the prior year. |
CASH FLOW AND BALANCE SHEET
| · | Cash flow from operations in the second quarter of 2026 was $51.3 million compared to $92.7 million for the second quarter of 2025. |
| · | Free cash flow in the second quarter of 2026 was $38.7 million compared to $85.5 million for the second quarter of 2025. |
| · | Capital expenditures in the second quarter of 2026 were $12.6 million compared to $7.2 million for the second quarter of 2025. |
| · | As of June 30, 2026, TTEC had cash and cash equivalents of $93.8 million and debt of $860.7 million, resulting in a net debt position of $766.9 million. This compares to a net debt position of $803.7 million for the same period in 2025. |
| · | In the third quarter of 2026, TTEC obtained financial covenant flexibility for the second quarter 2026 and future quarters under its Credit Facility. For further Credit Facility details and terms, refer to the disclosures in TTEC’s second quarter 2026 quarterly report on Form 10-Q. |
| · | TTEC is in discussions with its lenders to further amend the Credit Facility to extend its maturity beyond 2027. |
SEGMENT REPORTING & COMMENTARY
TTEC reports financial results for TTEC Digital and TTEC Engage business segments. Financial highlights for the two business segments are provided below.
TTEC Digital – Design, build and operate tech-enabled, insight-driven CX solutions
| · | Second quarter 2026 GAAP revenue for TTEC Digital was $104.0 million, a decrease of 8.5 percent compared to $113.7 million for the year ago period. | |
| · | Income from operations was $6.7 million or 6.4 percent of revenue compared to $11.4 million or 10.0 percent of revenue in the prior year. | |
| · | Non-GAAP income from operations was $12.2 million, or 11.7 percent of revenue compared to operating income of $18.4 million or 16.1 percent of revenue in the prior year. |
TTEC Engage – Technology-enabled customer care, acquisition, and fraud mitigation services
| · | Second quarter 2026 GAAP revenue for TTEC Engage was $351.5 million, a 12.1 percent decrease from $399.8 million for the year ago period. |
| · | Income from operations was $4.3 million or 1.2 percent of revenue compared to $7.5 million or 1.9 percent of revenue in the prior year. |
| · | Non-GAAP income from operations was $13.5 million, or 3.8 percent of revenue, compared to operating income of $18.4 million, or 4.6 percent of revenue in the prior year. |
| · | Foreign exchange had a $0.4 million negative impact on revenue and a $0.6 million positive impact on income from operations. |
BUSINESS OUTLOOK
“Our second quarter financial results were below expectations in part due to underperformance across a small number of our Engage clients. This combined with a delay in closing new business is resulting in a revised full year 2026 outlook for our Engage segment. Our Digital segment is performing in line with expectations, and we are pleased with the progress to date. As a result, we remain confident in executing against our original 2026 full year Digital guidance. It is also a reason why our Board of Directors felt the time was right to explore strategic alternatives for our Digital business,” commented Kenny Wagers, chief financial officer of TTEC.
Wagers continued, “We remain confident in our ongoing objectives to deliver profitable growth, improved cash flow and debt reduction. With end-to-end capabilities spanning the full customer experience ecosystem, TTEC is uniquely positioned to help clients transform how they engage with customers and achieve the outcomes that matter most: increased revenue, improved profitability, and deeper customer loyalty. As we help clients navigate their own CX transformation, we remain focused on strengthening TTEC through operational excellence, talent, and disciplined execution. Our Engage and Digital segments are well positioned to deliver second half profitable growth over the prior year both in relative and absolute terms.”
| TTEC Full Year 2026 Outlook | ||||
| Full Year 2026 Guidance | Full Year 2026 Mid-Point | |||
| Revenue | $1,940M — $1,990M | $1,965M | ||
| Non-GAAP adjusted EBITDA | $205M — $225M | $215M | ||
| Non-GAAP adjusted EBITDA margins | 10.6% — 11.3% | 10.9% | ||
| Non-GAAP operating income | $145M — $165M | $155M | ||
| Non-GAAP operating income margins | 7.5% — 8.3% | 7.9% | ||
| Interest expense, net | ($70M) — ($72M) | ($71M) | ||
| Non-GAAP adjusted tax rate | 48% — 50% | 49% | ||
| Diluted share count | 48.7M — 48.9M | 48.8M | ||
| Non-GAAP earnings per a share | $0.79 — $0.99 | $0.89 |
| Engage Full Year 2026 Outlook | ||||
| Full Year 2026 Guidance | Full Year 2026 Mid-Point | |||
| Revenue | $1,520M — $1,550M | $1,535M | ||
| Non-GAAP adjusted EBITDA | $149M — $161M | $155M | ||
| Non-GAAP adjusted EBITDA margins | 9.8% — 10.4% | 10.1% | ||
| Non-GAAP operating income | $100M — $112M | $106M | ||
| Non-GAAP operating income margins | 6.6% — 7.2% | 6.9% |
| Digital Full Year 2026 Outlook | ||||
| Full Year 2026 Guidance | Full Year 2026 Mid-Point | |||
| Revenue | $420M — $440M | $430M | ||
| Non-GAAP adjusted EBITDA | $56M — $64M | $60M | ||
| Non-GAAP adjusted EBITDA margins | 13.3% — 14.6% | 14.0% | ||
| Non-GAAP operating income | $45M — $53M | $49M | ||
| Non-GAAP operating income margins | 10.6% — 12.0% | 11.3% |
The company has not quantitatively reconciled its guidance for Non-GAAP operating income, Non-GAAP operating income margins, Non-GAAP adjusted EBITDA, Non-GAAP adjusted EBITDA margins, Non-GAAP adjusted tax rate, or Non-GAAP earnings per share to their respective most comparable GAAP measures because certain of the reconciling items that impact these metrics, including restructuring and impairment charges, equity-based compensation expense, changes in acquisition contingent consideration, depreciation and amortization expense, and provision for income taxes are dependent on the timing of future events outside of the Company’s control or cannot be reliably predicted. Accordingly, the Company is unable to provide reconciliations to GAAP operating income, operating income margins, EBITDA margins, and diluted earnings per share without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the Company’s 2026 financial results as reported under GAAP.
NON-GAAP FINANCIAL MEASURES
This press release contains a discussion of certain Non-GAAP financial measures that the company includes to allow investors and analysts to measure, analyze and compare its financial condition and results of operations in a meaningful and consistent manner. A reconciliation of these Non-GAAP financial measures can be found in the tables accompanying this press release.
| · | GAAP metrics are presented in accordance with Generally Accepted Accounting Principles. |
| · | Non-GAAP - As reflected in the attached reconciliation table, the definition of Non-GAAP may exclude from operating income, EBITDA, net income and earnings per share restructuring and impairment charges, equity-based compensation expenses, and amortization of purchased intangibles, among other items. |
EARNINGS WEBCAST/CONFERENCE CALL
TTEC will host a live webcast and conference call at 8:30 a.m. ET on Tuesday, August 11, 2026. You are invited to join a live webcast of the conference call by visiting the "Investors Relations" section of the TTEC website at www.ttec.com. If you are unable to participate during the live webcast, a replay will be available on the TTEC website.
ABOUT TTEC
TTEC (pronounced T-TEC) Holdings, Inc. (NASDAQ:TTEC) is a leading global CX (customer experience) technology and services innovator for AI-enabled digital CX solutions. Serving iconic and disruptive brands, TTEC's outcome-based solutions span the entire enterprise, touch every virtual interaction channel, and improve each step of the customer journey. Leveraging next-gen digital technology, the Company's TTEC Digital business designs, builds, and operates omnichannel contact center technology, CRM, AI and analytics solutions. The company's TTEC Engage business delivers AI-enabled customer engagement, customer acquisition and growth, tech support, back office, and fraud prevention services. Founded in 1982, the company's singular obsession with CX excellence has earned it leading client, customer, and employee satisfaction scores across the globe. The company's employees operate on six continents and bring technology and humanity together to deliver happy customers and differentiated business results. To learn more visit us at https://www.ttec.com.
FORWARD-LOOKING STATEMENTS
This Earnings Press Release and related oral statements contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to our operations, expected financial position, results of operation, effective tax rate, cash flow, leverage, liquidity, business strategy, profit improvement actions, competitive position, demand for our services in international operations, acquisition opportunities and impact of acquisitions, capital allocation and dividends, growth opportunities, spending, capital expenditures and investments, competition and market forecasts, industry trends, our human capital resources, and other business, operational and financial matters that are based on our current expectations, assumptions, and projections with respect to the future, and are not a guarantee of performance.
In this Earnings Release when we use words such as “may,” “believe,” “plan,” “will,” “anticipate,” “estimate,” “expect,” “intend,” “project,” “would,” “could,” “target,” or similar expressions, or when we discuss our strategy, plans, goals, initiatives, or objectives, we are making forward-looking statements. Unless otherwise indicated or except where the context otherwise requires, the terms “TTEC,” “the Company,” “we,” “us” and “our” and other similar terms in this report refer to TTEC Holdings, Inc. and its subsidiaries. We caution you not to rely unduly on any forward-looking statements. Actual results may differ materially from those expressed in the forward-looking statements, and you should review and consider carefully the risks, uncertainties, and other factors that affect our business and may cause such differences as outlined in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 and any subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”) which are available on TTEC’s website www.ttec.com, and on the SEC's public website at www.sec.gov.
Our forward-looking statements speak only as of the date that this release is issued. We undertake no obligation to update them, except as may be required by applicable law. Although we believe that our forward-looking statements are reasonable, they depend on many factors outside of our control and we can provide no assurance that they will prove to be correct.
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 455,495 | $ | 513,571 | $ | 951,670 | $ | 1,047,799 | ||||||||
| Operating Expenses: | ||||||||||||||||
| Cost of services | 357,833 | 399,273 | 745,699 | 813,820 | ||||||||||||
| Selling, general and administrative | 61,254 | 70,654 | 127,793 | 140,691 | ||||||||||||
| Depreciation and amortization | 21,141 | 22,888 | 42,446 | 45,586 | ||||||||||||
| Restructuring charges, net | 2,364 | 1,116 | 3,814 | 3,112 | ||||||||||||
| Impairment losses | 1,894 | 764 | 2,414 | 1,525 | ||||||||||||
| Total operating expenses | 444,486 | 494,695 | 922,166 | 1,004,734 | ||||||||||||
| Income From Operations | 11,009 | 18,876 | 29,504 | 43,065 | ||||||||||||
| Other income (expense), net | (15,411 | ) | (15,312 | ) | (31,286 | ) | (26,940 | ) | ||||||||
| Income / (Loss) Before Income Taxes | (4,402 | ) | 3,564 | (1,782 | ) | 16,125 | ||||||||||
| Provision for income taxes | (8,606 | ) | (10,288 | ) | (16,403 | ) | (19,603 | ) | ||||||||
| Net Income / (Loss) | (13,008 | ) | (6,724 | ) | (18,185 | ) | (3,478 | ) | ||||||||
| Net (loss) / income attributable to noncontrolling interest | (2,370 | ) | (1,263 | ) | (4,802 | ) | (3,125 | ) | ||||||||
| Net Income / (Loss) Attributable to TTEC Stockholders | $ | (15,378 | ) | $ | (7,987 | ) | $ | (22,987 | ) | $ | (6,603 | ) | ||||
| Net Income / (Loss) Per Share | ||||||||||||||||
| Basic | $ | (0.27 | ) | $ | (0.14 | ) | $ | (0.37 | ) | $ | (0.07 | ) | ||||
| Diluted | $ | (0.27 | ) | $ | (0.14 | ) | $ | (0.37 | ) | $ | (0.07 | ) | ||||
| Net Income / (Loss) Per Share Attributable to TTEC Stockholders | ||||||||||||||||
| Basic | $ | (0.31 | ) | $ | (0.17 | ) | $ | (0.47 | ) | $ | (0.14 | ) | ||||
| Diluted | $ | (0.31 | ) | $ | (0.17 | ) | $ | (0.47 | ) | $ | (0.14 | ) | ||||
| Income From Operations Margin | 2.4 | % | 3.7 | % | 3.1 | % | 4.1 | % | ||||||||
| Net Income / (Loss) Margin | (2.9 | )% | (1.3 | )% | (1.9 | )% | (0.3 | )% | ||||||||
| Net Income / (Loss) Attributable to TTEC Stockholders Margin | (3.4 | )% | (1.6 | )% | (2.4 | )% | (0.6 | )% | ||||||||
| Effective Tax Rate | (195.5 | )% | 288.7 | % | (920.5 | )% | 121.6 | % | ||||||||
| Weighted Average Shares Outstanding | ||||||||||||||||
| Basic | 48,874 | 48,064 | 48,727 | 47,918 | ||||||||||||
| Diluted | 48,874 | 48,064 | 48,727 | 47,918 | ||||||||||||
TTEC HOLDINGS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
(unaudited)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue: | ||||||||||||||||
| TTEC Digital | $ | 104,032 | $ | 113,746 | $ | 205,897 | $ | 221,786 | ||||||||
| TTEC Engage | 351,463 | 399,825 | 745,773 | 826,013 | ||||||||||||
| Total | $ | 455,495 | $ | 513,571 | $ | 951,670 | $ | 1,047,799 | ||||||||
| Income From Operations | ||||||||||||||||
| TTEC Digital | $ | 6,704 | $ | 11,409 | $ | 8,063 | $ | 17,273 | ||||||||
| TTEC Engage | 4,305 | 7,467 | 21,441 | 25,792 | ||||||||||||
| Total | $ | 11,009 | $ | 18,876 | $ | 29,504 | $ | 43,065 | ||||||||
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 93,869 | $ | 82,901 | ||||
| Accounts receivable, net | 396,188 | 455,829 | ||||||
| Prepaids and other current assets | 89,068 | 124,006 | ||||||
| Income and other tax receivables | 13,041 | 10,615 | ||||||
| Total current assets | 592,166 | 673,351 | ||||||
| Property and equipment, net | 104,685 | 111,778 | ||||||
| Operating lease assets | 69,676 | 86,064 | ||||||
| Goodwill | 367,902 | 368,678 | ||||||
| Other intangibles assets, net | 117,909 | 133,688 | ||||||
| Income and other tax receivables, long-term | 9,171 | 8,595 | ||||||
| Other assets | 112,138 | 116,928 | ||||||
| Total assets | $ | 1,373,647 | $ | 1,499,082 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 66,517 | $ | 72,637 | ||||
| Accrued employee compensation and benefits | 114,497 | 155,400 | ||||||
| Deferred revenue | 59,564 | 58,828 | ||||||
| Current operating lease liabilities | 30,257 | 34,188 | ||||||
| Other current liabilities | 46,454 | 34,899 | ||||||
| Total current liabilities | 317,289 | 355,952 | ||||||
| Long-term liabilities: | ||||||||
| Line of credit | 855,000 | 905,000 | ||||||
| Non-current operating lease liabilities | 48,117 | 61,170 | ||||||
| Other long-term liabilities | 62,411 | 64,057 | ||||||
| Total long-term liabilities | 965,528 | 1,030,227 | ||||||
| Equity: | ||||||||
| Common stock | 492 | 486 | ||||||
| Additional paid in capital | 436,776 | 432,268 | ||||||
| Treasury stock | (584,900 | ) | (584,900 | ) | ||||
| Accumulated other comprehensive income (loss) | (111,331 | ) | (106,938 | ) | ||||
| Retained earnings | 331,164 | 354,151 | ||||||
| Noncontrolling interest | 18,629 | 17,836 | ||||||
| Total equity | 90,830 | 112,903 | ||||||
| Total liabilities and equity | $ | 1,373,647 | $ | 1,499,082 | ||||
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
| Six Months Ended | Six Months Ended | |||||||
| June 30, | June 30, | |||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | (18,185 | ) | $ | (3,478 | ) | ||
| Adjustment to reconcile net (loss) income to net cash provided by operating activities : | ||||||||
| Depreciation and amortization | 42,446 | 45,586 | ||||||
| Amortization of contract acquisition costs | 646 | 790 | ||||||
| Amortization of debt issuance costs | 1,473 | 985 | ||||||
| Provision for credit losses | 89 | 598 | ||||||
| Loss on disposal of assets | 109 | 597 | ||||||
| Impairment losses | 2,414 | 1,525 | ||||||
| Loss on dissolution of subsidiary | 102 | - | ||||||
| Deferred income taxes | 135 | 3,033 | ||||||
| Excess tax benefit from equity-based awards | 1,270 | 720 | ||||||
| Equity-based compensation expense | 5,084 | 7,301 | ||||||
| Loss / (gain) on foreign currency derivatives | 104 | (338 | ) | |||||
| Changes in assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable | 57,901 | 42,509 | ||||||
| Prepaids and other assets | 31,044 | 4,708 | ||||||
| Operating lease assets | 15,226 | 17,266 | ||||||
| Other noncurrent assets | (1,893 | ) | (4,495 | ) | ||||
| Accrued employee comp & benefits | (40,250 | ) | (1,618 | ) | ||||
| Accounts payable and other current liabilities | (1,900 | ) | 13,278 | |||||
| Deferred revenue and customer advances | 1,018 | 3,659 | ||||||
| Operating lease liabilities | (16,602 | ) | (18,051 | ) | ||||
| Other noncurrent liabilities | (1,355 | ) | (274 | ) | ||||
| Net cash provided by operating activities | 78,876 | 114,301 | ||||||
| Cash flows from investing activities: | ||||||||
| Proceeds from sale of property, plant and equipment | 1,460 | 176 | ||||||
| Purchases of property, plant and equipment | (19,040 | ) | (12,587 | ) | ||||
| Net cash used in investing activities | (17,580 | ) | (12,411 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net proceeds from / (repayments of) line of credit | (50,000 | ) | (92,500 | ) | ||||
| Proceeds from other debt | 3,665 | - | ||||||
| Payments on other debt | (768 | ) | (1,088 | ) | ||||
| Payments to noncontrolling interest | (3,600 | ) | (4,101 | ) | ||||
| Tax payments related to the issuance of restricted stock units | (570 | ) | (1,038 | ) | ||||
| Payments of debt issuance costs | (158 | ) | (200 | ) | ||||
| Net cash used in financing activities | (51,431 | ) | (98,927 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | 1,103 | (5,395 | ) | |||||
| Increase/(decrease) in cash, cash equivalents and restricted cash | 10,968 | (2,432 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 82,901 | 84,991 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 93,869 | $ | 82,559 | ||||
TTEC HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
(unaudited)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 455,495 | $ | 513,571 | $ | 951,670 | $ | 1,047,799 | ||||||||
| Reconciliation of Non-GAAP Income from Operations and EBITDA: | ||||||||||||||||
| Net Income from Operations | $ | 11,009 | $ | 18,876 | $ | 29,504 | $ | 43,065 | ||||||||
| Restructuring charges, net | 2,364 | 1,116 | 3,814 | 3,112 | ||||||||||||
| Impairment losses | 1,894 | 764 | 2,414 | 1,525 | ||||||||||||
| Property costs not related to operations | - | - | - | (46 | ) | |||||||||||
| Mexico VAT consulting fees | - | 412 | 12 | 820 | ||||||||||||
| Expenses related to non-binding offer | - | 3,830 | 659 | 7,019 | ||||||||||||
| Expenses related to alternative capital structure | 549 | - | 549 | - | ||||||||||||
| Equity-based compensation expenses | 2,258 | 4,051 | 5,084 | 7,301 | ||||||||||||
| Amortization of purchased intangibles | 7,671 | 7,738 | 15,364 | 15,488 | ||||||||||||
| Non-GAAP Income from Operations | $ | 25,745 | $ | 36,787 | $ | 57,400 | $ | 78,284 | ||||||||
| Non-GAAP Income from Operations Margin | 5.7 | % | 7.2 | % | 6.0 | % | 7.5 | % | ||||||||
| Depreciation and amortization | 13,470 | 15,150 | 27,082 | 30,098 | ||||||||||||
| Loss on sale of subsidiary | - | - | 401 | - | ||||||||||||
| Gain on property sale | - | (179 | ) | (135 | ) | (629 | ) | |||||||||
| Mexico VAT Recovery | - | (2,719 | ) | (34 | ) | (6,625 | ) | |||||||||
| Foreign exchange loss / (gain), net | (916 | ) | 3,027 | (1,291 | ) | 3,777 | ||||||||||
| Other Income (expense), net | 1,179 | (296 | ) | 1,837 | 3,293 | |||||||||||
| Adjusted EBITDA | $ | 39,478 | $ | 51,770 | $ | 85,260 | $ | 108,198 | ||||||||
| Adjusted EBITDA Margin | 8.7 | % | 10.1 | % | 9.0 | % | 10.3 | % | ||||||||
| Reconciliation of Non-GAAP EPS: | ||||||||||||||||
| Net Income / (Loss) | $ | (13,008 | ) | $ | (6,724 | ) | $ | (18,185 | ) | $ | (3,478 | ) | ||||
| Add: Asset impairment and restructuring charges | 4,258 | 1,880 | 6,228 | 4,637 | ||||||||||||
| Add: Equity-based compensation expenses | 2,258 | 4,051 | 5,084 | 7,301 | ||||||||||||
| Add: Amortization of purchased intangibles | 7,671 | 7,738 | 15,364 | 15,488 | ||||||||||||
| Add: Property costs not related to operations | - | - | - | (46 | ) | |||||||||||
| Add: Expenses related to non-binding offer | - | 3,830 | 659 | 7,019 | ||||||||||||
| Add: Expenses related to alternative capital structure | 549 | - | 549 | - | ||||||||||||
| Add: Gain on property sale | - | (179 | ) | (135 | ) | (629 | ) | |||||||||
| Add: Foreign VAT (inclusive of interest) | - | (5,266 | ) | (376 | ) | (13,089 | ) | |||||||||
| Add: Loss on sale of subsidiary | - | - | 401 | - | ||||||||||||
| Add: Foreign exchange loss / (gain), net | (916 | ) | 3,027 | (1,291 | ) | 3,777 | ||||||||||
| Less: Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above | 807 | 2,198 | 521 | 3,200 | ||||||||||||
| Non-GAAP Net Income | $ | 1,619 | $ | 10,555 | $ | 8,819 | $ | 24,180 | ||||||||
| Diluted shares outstanding | 48,874 | 48,064 | 48,727 | 47,918 | ||||||||||||
| Non-GAAP EPS | $ | 0.03 | $ | 0.22 | $ | 0.18 | $ | 0.50 | ||||||||
| Reconciliation of Free Cash Flow: | ||||||||||||||||
| Cash Flow From Operating Activities: | ||||||||||||||||
| Net (loss) / income | $ | (13,008 | ) | $ | (6,724 | ) | $ | (18,185 | ) | $ | (3,478 | ) | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
| Depreciation and amortization | 21,141 | 22,888 | 42,446 | 45,586 | ||||||||||||
| Other | 43,208 | 76,545 | 54,615 | 72,193 | ||||||||||||
| Net cash provided by operating activities | 51,341 | 92,709 | 78,876 | 114,301 | ||||||||||||
| Less - Total Cash Capital Expenditures | 12,640 | 7,181 | 19,040 | 12,587 | ||||||||||||
| Free Cash Flow | $ | 38,701 | $ | 85,528 | $ | 59,836 | $ | 101,714 | ||||||||
Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :
| TTEC Engage | TTEC Digital | TTEC Engage | TTEC Digital | |||||||||||||||||||||||||||||
| Q2 26 | Q2 25 | Q2 26 | Q2 25 | YTD 26 | YTD 25 | YTD 26 | YTD 25 | |||||||||||||||||||||||||
| Income from Operations | $ | 4,304 | $ | 7,467 | $ | 6,705 | $ | 11,409 | $ | 21,440 | $ | 25,792 | $ | 8,064 | $ | 17,273 | ||||||||||||||||
| Restructuring charges, net | 1,137 | 887 | 1,228 | 229 | 2,172 | 2,179 | 1,643 | 932 | ||||||||||||||||||||||||
| Impairment losses | 1,893 | 567 | - | 197 | 2,413 | 1,287 | - | 239 | ||||||||||||||||||||||||
| Mexico VAT Consulting Fees | - | 412 | - | - | 12 | 820 | - | - | ||||||||||||||||||||||||
| Property costs not related to operations | - | - | - | - | - | (46 | ) | - | - | |||||||||||||||||||||||
| Expenses related to non-binding offer | - | 2,592 | - | 1,238 | 357 | 5,225 | 302 | 1,794 | ||||||||||||||||||||||||
| Expenses related to alternative capital structure | 409 | - | 140 | - | 409 | - | 140 | - | ||||||||||||||||||||||||
| Equity-based compensation expenses | 1,762 | 2,417 | 496 | 1,634 | 3,605 | 4,440 | 1,479 | 2,861 | ||||||||||||||||||||||||
| Amortization of purchased intangibles | 4,022 | 4,082 | 3,649 | 3,656 | 8,065 | 8,149 | 7,299 | 7,339 | ||||||||||||||||||||||||
| Non-GAAP Income from Operations | $ | 13,527 | $ | 18,424 | $ | 12,218 | $ | 18,363 | $ | 38,473 | $ | 47,846 | $ | 18,927 | $ | 30,438 | ||||||||||||||||
| Depreciation and amortization | 10,721 | 12,342 | 2,749 | 2,808 | 21,658 | 24,481 | 5,424 | 5,617 | ||||||||||||||||||||||||
| Mexico VAT Recovery | - | (2,719 | ) | - | - | (34 | ) | (6,625 | ) | - | - | |||||||||||||||||||||
| Loss on sale of subsidiary | - | - | - | - | - | - | 401 | - | ||||||||||||||||||||||||
| Gain on Property Sale | - | (179 | ) | - | - | (135 | ) | (629 | ) | - | - | |||||||||||||||||||||
| Foreign exchange loss / (gain), net | (912 | ) | 2,821 | (4 | ) | 206 | (1,284 | ) | 3,572 | (7 | ) | 205 | ||||||||||||||||||||
| Other Income (expense), net | 1,176 | (89 | ) | 3 | (207 | ) | 1,830 | 3,498 | 7 | (205 | ) | |||||||||||||||||||||
| Adjusted EBITDA | $ | 24,512 | $ | 30,600 | $ | 14,966 | $ | 21,170 | $ | 60,508 | $ | 72,143 | $ | 24,752 | $ | 36,055 | ||||||||||||||||