TTEC Holdings Earnings Call Transcripts
Fiscal Year 2025
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2025 saw revenue exceed guidance and margin expansion despite a modest decline, with strong cash flow and reduced debt. A significant non-cash goodwill impairment in Digital reflects industry shifts, while 2026 guidance anticipates lower revenue but higher profitability and continued AI-driven transformation.
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Q3 2025 revenue declined 1.9% year-over-year to $519M, with adjusted EBITDA at $43M and net debt reduced by $119M. Investments in AI and leadership are expected to drive future growth, with Engage tracking to high-end revenue guidance and Digital segment remixing for long-term profitability.
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Q2 2025 saw revenue of $514M (down 3.8% YoY) but exceeded expectations, with adjusted EBITDA up 12% and free cash flow of $86M. The company raised full-year revenue guidance, continued deleveraging, and expanded AI and offshore capabilities amid cautious but growing client demand.
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Q1 2025 saw revenue of $534M and improved margins despite a 7.4% year-over-year decline, with strong cash flow and operational efficiency gains. Cautious client sentiment and macro uncertainty persist, but new enterprise wins, AI focus, and offshore expansion support a positive outlook.
Fiscal Year 2024
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2024 saw a 10.4% revenue decline and margin pressure, but strong new client wins and AI adoption set the stage for improved profitability in 2025. Guidance calls for higher EBITDA and EPS despite a lower top line, with margin gains expected from operational discipline and digital growth.
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Q3 2024 revenue fell 12.2% year-over-year to $529M, with adjusted EBITDA at $50M. Market headwinds persist, but new client wins and offshore growth are strong. Full-year guidance is reiterated at the lower end, with a focus on debt reduction and cost savings.
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Q2 2024 saw revenue decline 11% year-over-year, driven by macro headwinds in healthcare and public sector, while Digital showed resilience and new client wins diversified the portfolio. Cost optimization and a $196M goodwill impairment impacted results, with guidance revised downward for Engage but stable for Digital.