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TTEC

TTECA
Nasdaq / Commercial & Professional Services
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2026-08-11
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Earnings documents stored for TTEC.

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Investor releaseQuarter not tagged2026-08-11

TTEC Holdings, Inc. Q2 2026 Earnings Call Summary

Moby
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance shortfalls in the second quarter were primarily attributed to technical infrastructure failures at a third-party provider impacting a major public sector client. Management is actively rationalizing a small number of underperforming Engage programs, prioritizing margin accretion over volume by transitioning clients who do not meet profitability targets. The Engage segment is shifting its delivery model toward higher offshore mix and automation to offset structural costs and improve productivity. T-TECH Digital is successfully pivoting from traditional CCAS engagements to high-demand AI and data-driven CX transformations, with professional services growing double-digits. Enterprise clients are increasingly facing specialized talent gaps in AI and security, which is driving demand for T-TECH's integrated technology and consulting expertise. The company is streamlining its cost structure by shifting support functions to lower-cost locations and optimizing vendor returns to restore historic profitability levels. Full-year Engage guidance was revised downward due to elongated sales cycles as clients evaluate complex technology-human interaction mixes and start with smaller initial deal volumes. Management expects sequential revenue growth and margin expansion in the second half of 2026, supported by a $1.5 billion Engage backlog covering 98% of updated guidance. The Board has initiated a formal review of strategic alternatives for T-TECH Digital to maximize shareholder value, citing high market valuations for AI-centric platforms. Guidance for the Digital segment remains unchanged, predicated on the continued scaling of new CX technology partnerships to offset legacy practice pressures. Future margin improvements are expected to be driven by 'shop floor' efficiencies, specifically the internal deployment of AI tools to enhance agent productivity. A significantly higher normalized tax rate of 82.8% was driven by valuation allowances against U.S. losses, impacting EPS by $0.08. Capital expenditures were front-loaded in Q2 to $13 million to avoid imminent price increases for computer equipment scheduled for the second half of the year. The company secured covenant flexibility in its credit facility durin…Read full document

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance shortfalls in the second quarter were primarily attributed to technical infrastructure failures at a third-party provider impacting a major public sector client. Management is actively rationalizing a small number of underperforming Engage programs, prioritizing margin accretion over volume by transitioning clients who do not meet profitability targets. The Engage segment is shifting its delivery model toward higher offshore mix and automation to offset structural costs and improve productivity. T-TECH Digital is successfully pivoting from traditional CCAS engagements to high-demand AI and data-driven CX transformations, with professional services growing double-digits. Enterprise clients are increasingly facing specialized talent gaps in AI and security, which is driving demand for T-TECH's integrated technology and consulting expertise. The company is streamlining its cost structure by shifting support functions to lower-cost locations and optimizing vendor returns to restore historic profitability levels. Full-year Engage guidance was revised downward due to elongated sales cycles as clients evaluate complex technology-human interaction mixes and start with smaller initial deal volumes. Management expects sequential revenue growth and margin expansion in the second half of 2026, supported by a $1.5 billion Engage backlog covering 98% of updated guidance. The Board has initiated a formal review of strategic alternatives for T-TECH Digital to maximize shareholder value, citing high market valuations for AI-centric platforms. Guidance for the Digital segment remains unchanged, predicated on the continued scaling of new CX technology partnerships to offset legacy practice pressures. Future margin improvements are expected to be driven by 'shop floor' efficiencies, specifically the internal deployment of AI tools to enhance agent productivity. A significantly higher normalized tax rate of 82.8% was driven by valuation allowances against U.S. losses, impacting EPS by $0.08. Capital expenditures were front-loaded in Q2 to $13 million to avoid imminent price increases for computer equipment scheduled for the second half of the year. The company secured covenant flexibility in its credit facility during Q2 to align with the updated performance outlook and ensure adequate liquidity. Net debt was reduced by $58 million year-to-date, reflecting a disciplined focus on deleveraging despite operational headwinds. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is targeting high single-digit clients for economic renegotiation, focusing on those where facility and labor costs exceed contribution margins. If mutual agreements on profitability cannot be reached, T-TECH is assisting with professional transitions to free up capacity for more accretive business. Historically, some transitioned clients have returned after finding competitors unable to deliver at lower price points. The review is prompted by strong performance in AI integrations and a desire to capture favorable market valuations for digital CX assets. Management emphasized that any potential transaction would maintain a tight commercial relationship and joint go-to-market strategy with the Engage business. The Q2 shortfall was concentrated in two clients, specifically a large public sector entity experiencing third-party technology infrastructure issues. Confidence in the second-half recovery is based on a strong pipeline where new business is starting small to validate AI outcomes before scaling.

Investor releaseQuarter not tagged2026-08-11

TeleTech Q2 Earnings Call Highlights

MarketBeat
Interested in TeleTech Holdings, Inc.? Here are five stocks we like better. Q2 results declined year over year: Revenue fell 11.3% to $455 million, while adjusted EBITDA dropped to $39 million from $52 million, pressured by weakness in the Engage segment. Engage faces client and profitability challenges: Revenue declined 12.1% as public-sector and technology clients came under pressure. TTEC is reviewing a high-single-digit number of underperforming engagements and lowered its full-year Engage revenue and margin outlook. Digital strategic review and balance-sheet actions underway: TTEC began reviewing strategic alternatives for its Digital business while reiterating its full-year Digital guidance. Net debt fell to $767 million, and covenant flexibility from lenders is expected to support liquidity. TeleTech (NASDAQ:TTEC) reported second-quarter results that fell short of its plan, as revenue and profitability declined from a year earlier amid pressure in its Engage segment. Management said it is pursuing cost reductions, operational changes and client profitability reviews while beginning a strategic-alternatives review for its TTEC Digital business. Revenue for the quarter ended June 30 was $455 million, down 11.3% from $514 million in the prior-year period. Adjusted EBITDA declined to $39 million, or 8.7% of revenue, from $52 million, or 10.1% of revenue, a year earlier. Adjusted operating income was $26 million, compared with $37 million, while adjusted earnings per share fell to $0.03 from $0.22. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Chairman and CEO Ken Tuchman characterized the quarter as challenging but said the company remains focused on improving revenue, cost efficiency and profitability. “We know our progress will be measured by results, not words,” Tuchman said. TTEC Engage generated second-quarter revenue of $351 million, down 12.1% year over year. Segment operating income was $14 million, or 3.8% of revenue, compared with $18 million, or 4.6% of revenue, in the prior-year quarter. → 3 Dividend Champion Utilities for a Market That Can't Sit Still CFO Kenny Wagers said the first-half revenue decline was partly anticipated, reflecting the company’s rationalization of a small number of underperforming clients and a seasonal public-sector engagement that accounted for approximately 24% of the year-over-year revenue reduction…Read full document

Interested in TeleTech Holdings, Inc.? Here are five stocks we like better. Q2 results declined year over year: Revenue fell 11.3% to $455 million, while adjusted EBITDA dropped to $39 million from $52 million, pressured by weakness in the Engage segment. Engage faces client and profitability challenges: Revenue declined 12.1% as public-sector and technology clients came under pressure. TTEC is reviewing a high-single-digit number of underperforming engagements and lowered its full-year Engage revenue and margin outlook. Digital strategic review and balance-sheet actions underway: TTEC began reviewing strategic alternatives for its Digital business while reiterating its full-year Digital guidance. Net debt fell to $767 million, and covenant flexibility from lenders is expected to support liquidity. TeleTech (NASDAQ:TTEC) reported second-quarter results that fell short of its plan, as revenue and profitability declined from a year earlier amid pressure in its Engage segment. Management said it is pursuing cost reductions, operational changes and client profitability reviews while beginning a strategic-alternatives review for its TTEC Digital business. Revenue for the quarter ended June 30 was $455 million, down 11.3% from $514 million in the prior-year period. Adjusted EBITDA declined to $39 million, or 8.7% of revenue, from $52 million, or 10.1% of revenue, a year earlier. Adjusted operating income was $26 million, compared with $37 million, while adjusted earnings per share fell to $0.03 from $0.22. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Chairman and CEO Ken Tuchman characterized the quarter as challenging but said the company remains focused on improving revenue, cost efficiency and profitability. “We know our progress will be measured by results, not words,” Tuchman said. TTEC Engage generated second-quarter revenue of $351 million, down 12.1% year over year. Segment operating income was $14 million, or 3.8% of revenue, compared with $18 million, or 4.6% of revenue, in the prior-year quarter. → 3 Dividend Champion Utilities for a Market That Can't Sit Still CFO Kenny Wagers said the first-half revenue decline was partly anticipated, reflecting the company’s rationalization of a small number of underperforming clients and a seasonal public-sector engagement that accounted for approximately 24% of the year-over-year revenue reduction. However, second-quarter performance also faced additional pressure from a small number of clients in public sector and technology, media and communications. During the question-and-answer session, Tuchman said the largest single driver of the quarter’s weakness was a large public-sector client experiencing problems with technology and infrastructure provided by an unaffiliated third party. He said the issue had created operational effects for the service TTEC provides and that the company was working with the client toward a resolution. → Is Wingstop's Growth Story Losing Steam? Management said it is reviewing the profitability of a high-single-digit number of Engage clients. The company is discussing potential changes to those engagements, including automation, offshore delivery and operating-model redesign. Wagers said these discussions are collaborative and vary by country, facility and the cost structure associated with each program. If the parties cannot reach mutually beneficial terms, TTEC may professionally transition the business and make capacity available for other clients, executives said. Tuchman said the company’s focus is on clients that are not meeting margin expectations, though he described the affected business as a small portion of the overall portfolio. Engage backlog stood at $1.5 billion, equal to 98% of the midpoint of updated full-year revenue guidance, compared with 101% at the same point a year earlier. The segment’s trailing 12-month revenue retention rate improved to 93% from 88%. TTEC Digital revenue was $104 million, down 8.5% from the prior-year quarter. The prior-year period included a one-time $4 million sale of intellectual-property software at a 100% profit margin. Excluding that transaction, Digital’s revenue decline was 4.6%. Digital operating income was $12 million, or 11.7% of revenue, compared with $18 million, or 16.1% of revenue, a year earlier. Excluding the prior-year software sale, operating income in the comparable period was $14 million, or 13% of revenue. Wagers said the segment’s results were in line with its targets as the business shifts from traditional contact-center-as-a-service engagements toward end-to-end customer-experience transformations. Excluding two legacy CCaaS practices, professional-services revenue increased 13% year over year, following 15.3% growth reported in the first quarter. The company said its Digital pipeline remains strong, though average deal sizes are smaller and take longer to close as customers evaluate transformation investments. Digital backlog was $364 million, or 85% of the midpoint of 2026 revenue guidance, up from 83% a year ago. TTEC’s board has initiated a review of strategic alternatives for TTEC Digital after earlier retaining PJT Partners to assist in evaluating strategic and capital-market alternatives. Tuchman said the company wants to assess options that could help Digital realize its growth potential and maximize shareholder value. The review has no definitive completion timetable and could result in multiple outcomes, including Digital remaining part of TTEC. Management said the Engage and Digital businesses would continue to have commercial collaboration and innovation ties over the long term. Free cash flow was $39 million, compared with $86 million in the prior-year quarter. Wagers said the year-over-year decline partly reflected the prior-year collection of a $21 million aged VAT receivable and a $5 million increase in capital expenditures. Capital expenditures totaled $13 million, or 2.8% of revenue, up from $7 million, or 1.4% of revenue, a year earlier. The increase was primarily tied to accelerated purchases of computer equipment and accessories ahead of expected second-half price increases. As of June 30, TTEC had $94 million in cash and $861 million in debt, resulting in net debt of $767 million. Net debt declined $37 million year over year and $58 million year to date. The company’s net leverage ratio under its credit facility was 3.85 times. The company also secured covenant flexibility from its lending banks during the second quarter and in future periods. Wagers said the amendment, alongside cash on hand and positive cash-flow generation, provides liquidity to support TTEC’s operating plan. TTEC revised its full-year Engage outlook, projecting a year-over-year revenue decline of 4.1% to 8% at the midpoint of the updated range. The segment’s adjusted EBITDA margin outlook moved to 10.1% from 10.6%, though management said the updated midpoint would still represent a 110-basis-point improvement over full-year 2025. Management expects sequential revenue and margin growth in Engage during the third and fourth quarters, as well as second-half growth from the prior-year period. TTEC reiterated its original full-year 2026 guidance for Digital. TTEC Holdings, Inc (NASDAQ: TTEC) is a global customer experience technology and services company that designs, builds and delivers transformative solutions for customer acquisition and engagement. Leveraging a combination of digital consulting, technology, analytics and operations services, TTEC helps clients across industries enhance their customer journeys, automate key processes and harness data-driven insights to foster loyalty and drive revenue growth. The company's core offerings span end-to-end customer engagement solutions, including customer experience (CX) strategy consulting, cloud migration, omni-channel contact center operations and managed services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "TeleTech Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Investor releaseQuarter not tagged2026-08-11

TTEC Holdings (TTEC) Q2 Earnings and Revenues Miss Estimates

Zacks
TTEC Holdings (TTEC) came out with quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -86.96%. A quarter ago, it was expected that this customer engagement management company would post earnings of $0.25 per share when it actually produced earnings of $0.15, delivering a surprise of -40%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. TTEC, which belongs to the Zacks Technology Services industry, posted revenues of $455.5 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 4.33%. This compares to year-ago revenues of $513.57 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TTEC shares have lost about 29.2% since the beginning of the year versus the S&P 500's gain of 13.3%. While TTEC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TTEC was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) s…Read full document

TTEC Holdings (TTEC) came out with quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -86.96%. A quarter ago, it was expected that this customer engagement management company would post earnings of $0.25 per share when it actually produced earnings of $0.15, delivering a surprise of -40%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. TTEC, which belongs to the Zacks Technology Services industry, posted revenues of $455.5 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 4.33%. This compares to year-ago revenues of $513.57 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TTEC shares have lost about 29.2% since the beginning of the year versus the S&P 500's gain of 13.3%. While TTEC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TTEC was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.34 on $502.64 million in revenues for the coming quarter and $1.15 on $2.03 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Full Truck Alliance Co. Ltd. Sponsored ADR (YMM), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 19. This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +5.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Full Truck Alliance Co. Ltd. Sponsored ADR's revenues are expected to be $458.67 million, up 1.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TeleTech Holdings, Inc. (TTEC) : Free Stock Analysis Report Full Truck Alliance Co. Ltd. Sponsored ADR (YMM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TranscriptFY2026 Q22026-08-11

FY2026 Q2 earnings call transcript

Earnings source - 62 paragraphs
Operator

Welcome to TTEC's second quarter 2026 earnings conference call. I would like to remind all parties that you will be in a listen-only mode until the question and answer session. This call is being recorded at the request of TTEC. I would now like to turn the call over to Bob Belknapp, TTEC's Group Vice President, Corporate Finance. Thank you, sir. You may begin.

Bob Belknapp

Good morning, and thank you for joining us today. TTEC is hosting this call to discuss its second quarter 2026 results for the period ended June 30th, 2026. Participating on today's call are Ken Tuchman, Chairman and Chief Executive Officer of TTEC, and Kenny Wagers, Chief Financial Officer of TTEC. Yesterday, TTEC issued a press release announcing its financial results. While this call will reflect items discussed in that document, for complete information about our financial performance, we also encourage you to read our Form 10-Q for the period ended on June 30th, 2026, and the latest Form 10-K. Before we begin, I want to remind you that matters discussed on today's call may include forward-looking statements related to our operating performance, financial goals, and business outlook, which are based on management's current beliefs and assumptions.

Bob Belknapp

Please note that these forward-looking statements reflect our opinion as of the date of this call, and we undertake no obligation to update this information as a result of new developments that may occur. Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause our actual results to differ materially from those expected and described today. For a more detailed description of our risk factors, please review our 2025 Annual Report on Form 10-K. A replay of this conference call will be available on our website under the investor relations section. I will now turn the call over to Ken.

Ken Tuchman

Good morning and thank you for joining us today. Q2 was a challenging quarter with performance that fell short of our plan. While we're disappointed in our results, we remain confident in our path forward. We continue to execute a focused strategy to deliver measurable gains in revenue, cost efficiency, and profitability. With that operational context in mind, let me turn to our second quarter financial results. Revenue was $455 million. EBITDA was $39 million. Free cash flow was $39 million. Net debt decreased $36 million. In a typical quarter, I'd spend more time on industry trends, new client wins, innovation, partner growth, and strategy. While we have progress to report in all those areas, I want to focus today on the actions underway to fortify the resilience of our business.

Ken Tuchman

Across both TTEC Engage and TTEC Digital, our priorities remain clear: continue to sharpen our go-to-market approach, reduce structural cost, and restore the business to our historic levels of growth and profitability. Let me start with our focus areas in Engage. First, we continue to improve pipeline quality and sales execution. While there is more work to do, we're seeing positive momentum with new strategic enterprise opportunities, higher growth digital services, and client wins across automotive, healthcare, retail, and travel. Second, we're partnering with clients to address financially underperforming programs through automation, offshore delivery, and operating model redesign while maintaining a high level of service quality. In the event, however, a mutually beneficial path isn't possible, we're assisting clients with a professional transition. Third, on the front lines, we're successfully deploying AI and automation in focused, practical ways to improve productivity, simplify workflows, and expand capacity across our operations.

Ken Tuchman

In parallel, we're simplifying our cost structure by streamlining operations, improving the return on vendor and partner investments, and shifting select support functions to lower-cost delivery locations. While these efforts are still underway, they're strengthening our operating model, contributing to better execution, and positioning Engage for improved performance. Now moving to TTEC Digital, where we continue to successfully shift our CX technology and services mix towards the areas of highest client demand: designing, building, and operating CX solutions rooted in data, AI, observability, and security. We're executing this shift with four priorities, deepening our relationships with CX technology partners that are growing quickly with us, expanding strategically in EMEA and APAC regions, increasing sales coverage to better address the large number of opportunities in the market, and continuing to focus on operating the business efficiently with strong utilization and a model optimized for the best shore.

Ken Tuchman

Increasingly, enterprise clients are facing a set of complex technical and operational hurdles but are lacking the specialized talent to successfully address them securely and at scale. By combining our deep technology expertise with strategic relationships across all the leading CX technology partners, we're helping clients bridge this capability gap and accelerate their transformation efforts. As a result, demand for our specialized CX technology expertise continues to accelerate. This increasing market traction, 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 targets. Moving on. You may recall that earlier this year, TTEC engaged PJT Partners, an independent financial advisor to assist in the evaluation of various strategic and capital market alternatives.

Ken Tuchman

As TTEC Digital continues to grow and demonstrate the strength of its differentiated platform, our board of directors has determined that the time is right to initiate a review of strategic alternatives for TTEC Digital. Our objective is to best position TTEC Digital to realize its full growth potential and maximize shareholder value. During the evaluation process, it is business as usual for TTEC. An essential consideration in this assessment is that over the long term, there will continue to be commercial collaboration and innovation between our Engage and Digital businesses. Our board has not set a definitive timeline for the completion of this review, and the outcome may take many forms, including TTEC Digital remaining as part of TTEC. In conclusion, I want you to know that I remain fully committed to this business. We know our progress will be measured by results, not words.

Ken Tuchman

I continue to be grateful to our clients, employees, partners, and shareholders for their continued support and commitment. Now I will hand the call over to Kenny.

Kenny Wagers

Thank you, Ken, and good morning. I will start with a review of our second quarter 2026 financial results before providing context into our updated full-year 2026 financial outlook. In my discussion of second quarter financial results, reference to revenue is on a GAAP basis, while EBITDA, operating income, and earnings per share are on a non-GAAP adjusted basis. A full reconciliation of our GAAP to non-GAAP results is included in the tables attached to our earnings press release. Turning to our results. On a consolidated basis for the second quarter of 2026 compared to the prior year period, revenue was $455 million compared to $514 million, a decrease of 11.3%. Adjusted EBITDA was $39 million, or 8.7% of revenue, compared to $52 million or 10.1%. Operating income was $26 million, or 5.7% of revenue, compared to $37 million or 7.2%. EPS was $0.03 compared to $0.22.

Kenny Wagers

Note that the higher normalized tax rate in the second quarter of 2026 compared to the prior year had a negative impact on EPS of $0.08, which I will address later in my comments. Foreign exchange had a nominal impact on revenue, adjusted EBITDA, and operating income in the second quarter over the prior year period. Turning to our second quarter 2026 segment results. In our Engage segment, second quarter revenue decreased 12.1% over the prior year period to $351 million. Operating income was $14 million, or 3.8% of revenue, compared to $18 million, or 4.6% of revenue in the prior year. As stated in our first quarter commentary, we forecasted lower first half revenue for Engage compared to the prior year.

Kenny Wagers

This was primarily driven by planned revenue declines associated with our rationalization of a small number of underperforming clients, as well as a seasonal Public Sector client engagement that accounted for approximately 24% of the year-over-year revenue reduction. While these factors were anticipated and reflected in our outlook, our second quarter results were impacted by additional pressures concentrated within a small number of clients in our Public Sector and technology, media, and communications portfolio. We are working closely with these clients and taking appropriate actions to improve performance in the third quarter and beyond. The balance of the Engage business performed in line with our second quarter expectations. As the business returns to anticipated sequential revenue growth in the third and fourth quarters, we also remain keenly focused on preserving our profitability and cash flow generation through further operational efficiencies and cost management initiatives.

Kenny Wagers

Actions are already underway to drive impactful savings in the second half of this year and into 2027, which I will address further in the segment's updated outlook during my closing remarks. The Engage backlog is $1.5 billion, or 98% of our full year 2026 updated revenue guidance at the midpoint of the range, down from 101% for the same period in 2025. The Engage last 12-month revenue retention rate is 93%, an improvement over the 88% for the same period last year. In our Digital segment, second quarter revenue was $104 million, a decrease of 8.5% over the prior year. As previously mentioned, the second quarter 2025 results included a one-time sale of IP software, which generated $4 million of revenue at 100% profit margin. Adjusting for this, the second quarter 2026 revenue decline was 4.6%.

Kenny Wagers

Operating income was $12 million, or 11.7% of revenue, compared to $18 million or 16.1% of revenue for the same period last year. Adjusting for the 2025 IP software sale, the 2025 operating income was $14 million or 13% of revenue. Digital second quarter 2026 financial performance aligned with our targets as we execute on the market shift from traditional CCaaS engagements to end-to-end CX transformations. Excluding our two legacy CCaaS practices, professional services grew 13% year-over-year, adding to the 15.3% growth we communicated in our first quarter results. This growth reflects the ongoing momentum we are seeing in our expanded CX technology partnership network that now includes more than a dozen strategic partners. We are pleased with the double-digit growth in these practices but need to scale more rapidly to offset the year-over-year revenue pressure in our traditional CCaaS practices. Our digital pipeline remains strong.

Kenny Wagers

However, the average deal sizes are smaller and take longer to close as customers evaluate their investments in these transformations. As we balance this market shift, we continue to take steps to optimize our onshore-offshore delivery mix and overall utilization to maintain profit margin expectations. Based on our progress thus far, we are reiterating our full year 2026 guidance for the Digital segment. Our digital backlog is $364 million, or 85% of our 2026 revenue guidance at the midpoint of the range, up from 83% for the same period last year. Before I address other second quarter financial metrics, I want to provide an update on our credit facility. With support from our long-term relationship banks, we obtained covenant flexibility in the second quarter and future periods to align with our performance outlook.

Kenny Wagers

In addition to sufficient cash on hand and positive cash flow generation, the credit facility amendment provides adequate liquidity to support our business plan and operations. We remain focused on continuing to deleverage our balance sheet, as evidenced by a $58 million year-to-date net debt reduction. I will now share other second quarter 2026 metrics before discussing our updated outlook. Free cash flow was $39 million in the second quarter of 2026 compared to $86 million in the prior year. The year-over-year decline is partially explained by the collection of an aged VAT receivable of $21 million in the second quarter of 2025 and an increase in capital expenditures of $5 million in the second quarter of 2026 compared to the prior year.

Kenny Wagers

The increase in capital expenditures was primarily due to accelerated purchases of computer equipment and accessories to avoid imminent price increases scheduled for the second half of 2026. In the second quarter of 2026, capital expenditures were $13 million, or 2.8% of revenue, compared to $7 million, or 1.4% in the prior year. Approximately 63% of the current quarter spend relates to growth in product development, real estate expansion, and client technology investments. Our full-year capital expenditure forecast remains unchanged but was higher due to the timing in the second quarter, per my previous comment. As of June 30th, 2026, cash was $94 million, with $861 million of debt, primarily representing borrowings under our credit facility.

Kenny Wagers

The net debt position of $767 million represents a year-over-year decrease of $37 million as we continue to focus on cash flow generation and debt reduction. We ended the second quarter 2026 with a net leverage ratio as defined under our credit facility of 3.85x. Our normalized tax rate was 82.8% in the second quarter of 2026 compared to 43.4% in the prior year. The higher tax rate is largely driven by the impact of the valuation allowance against U.S. losses, partially offset by income in foreign tax jurisdictions. The second quarter tax rate is further impacted by the lower overall pre-tax income, resulting in each dollar of tax expense having a greater impact on the rate. As mentioned previously, the higher year-over-year tax rate results in a -$0.08 impact on our non-GAAP EPS.

Kenny Wagers

Turning to our 2026 outlook, I will now provide some context with regards to our updated full year financial guidance. In our Engage segment, we continue to see a growing pipeline and a diversified number of new enterprise clients and embedded base growth. However, we are seeing an elongated sales cycle as deals are becoming more complex in evaluating the mix of technology and human interaction. The new business we have closed is producing positive results, but often starts at smaller volumes to validate outcomes before scaling to significant growth. Due to these factors and our second quarter results, we are revising our Engage full year 2026 outlook. The year-over-year Engage revenue is now expected to decline from 4.1%-8% at the midpoint of the updated guidance range, while the adjusted EBITDA margin is moving from 10.6%- 10.1%.

Kenny Wagers

The updated EBITDA margin at the midpoint still reflects a 110 basis point improvement over full year 2025, and we expect both sequential quarter-over-quarter growth for the remainder of the year and second half growth over the prior year. In our Digital segment, we continue to execute on the market remix through our expanded partnership network, focusing on CX platform transformations through data, AI, observability, and security. Our pipeline has shifted to these new and expanding market opportunities and is growing overall. Given our first half results and our most recent outlook, we remain confident in executing against our original full year 2026 Digital guidance. For an update on our 2026 full year guidance at the consolidated and segment level, please refer to our commentary in the Business Outlook section of our second quarter 2026 earnings press release.

Kenny Wagers

In closing, our goals to deliver profitable growth, cash flow improvement, and debt reduction remain a constant. Our execution against these objectives remain intact and drives every decision we make. We are confident in our path forward and are grateful to our employees, clients, business partners, banks, and other stakeholders for their support. I will now turn the call back to Bob.

Bob Belknapp

Thanks, Kenny. As we open the call, we ask that you limit your questions to one or two at a time. Operator, you may open the line.

Operator

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star followed by the number one. Please unmute your phone and record your name clearly when prompted. Your name is required to introduce your question. To withdraw your request, you may press star two. One moment, please. Our first question is from George Sutton from Craig-Hallum. Thank you. Your line is now open.

George Sutton

Thank you. I wonder if you could walk through the process of going out to these customers who have lower economics from your perspective, and you are trying to address it through automation and offshore delivery and then an operating model transition. What is the pushback you get there? Can you just kind of tell us how far into that process and give us a sense of how many customers are involved?

Ken Tuchman

Good morning, George. I'm not 100% sure I'm fully understanding your question. When you say lower economics, are you speaking about customers that TTEC Digital is engaging with or with our TTEC Engage?

George Sutton

This is an Engage question.

Ken Tuchman

So-

George Sutton

This is an Engage question.

Ken Tuchman

I'm assuming.

Kenny Wagers

Hey, Ken, this is Kenny. I'll take it. George, this is Kenny. I don't know if Ken heard the question. What we're doing in Engage, and what we always do is look at our customer base and rationalize at a customer level, line of business level, the profitability and what it brings from a contribution margin standpoint. What we are engaged in right now, we're looking at roughly high single-digit clients that we're talking to about their economics. So much of it is specific to the country they're in, the facility they're in, and the ability to cover those costs outside of just what the hourly wage is, and what that markup is.

Kenny Wagers

What we do is we look at that P&L, we sit down with that customer, we walk through the contract and where we see opportunities for us to improve, and where we ask for them to look at adjustments to the engagement that we have. It's collaborative. We're an open book when we get to this point with the client because we're looking for a resolution. Again, we do this consistently and constantly in Engage, but we're a little heightened right now because we're looking for flexibility on seats offshore as we continue to grow our offshore mix. It does have a short-term impact to our top line as we rationalize with some of these clients.

Kenny Wagers

We hope to get to a mutual agreement, but if we can't, then we move on from them and then open up that capacity to other clients that we have in our pipeline.

George Sutton

Understand. Appreciate it.

Ken Tuchman

Sorry for not fully understanding your question. That is exactly right, what Kenny just described. As you know, because you followed us for so many years, we have always tried to ensure that clients are accretive to our margin goals. Right now, there's even more of a focus on clients that simply aren't achieving the profit margin that we believe is fair and competitive, et cetera. In the past, what we have found is some clients who we could not come to a resolution with, we always do a professional transition. But ironically, in multiple cases, they end up coming back because they find that the price that they were able to achieve with whoever they were negotiating with, that particular party wasn't actually able to deliver, et cetera. Although we're not necessarily expecting that, we've seen that happen multiple times.

Ken Tuchman

The good news is it's just a small portion of our business that we're focusing on to drive a margin that, like I say, is not dilutive.

George Sutton

Okay, then just one question relative to Digital. You suggested now is the time for looking at strategic alternatives. I'm just curious, why is now the time?

Ken Tuchman

The business is doing quite well, and people are really excited about all the different partners that we now have and the impact that we're having on helping them with their AI integrations, et cetera. With AI valuations being crazy, et cetera, it seems like it's a good time to check and see if there's something that would be in the benefit of all the shareholders. That's really our overall approach. The fact of the matter is that any deal that we would do would still have a very tight relationship with the TTEC Engage business, and we would still go to market together, et cetera. So it's really just a matter of trying to gauge where the market is based on other transactions that we've seen that have taken place. We want to see if we can capture some good value for the shareholders.

Ken Tuchman

The board has asked us to explore this, and we all agree, so this is the path that we're taking for now, to see if there's something that makes good sense to everybody.

George Sutton

Got you. Okay. Thanks, Ken and Kenny.

Ken Tuchman

Thanks, George.

Operator

Once again, to ask a question over the phone, you may press star followed by the number one. You will be prompted to record your name. To withdraw your request, you may press star two. Our next question is from Maggie Nolan from William Blair. Your line is now open.

Maggie Nolan

Hi, thank you. On the Engage segment, there's a couple of clients that have had shortfalls and delays in some of the closings there. Is this concentrated in a specific vertical or client type? Is there some sort of trend that we should be picking up on here? Or do you think it's reflective of broader demand pressure? If you could comment maybe on how the pipeline and bookings look in more detail there too, that would be helpful.

Ken Tuchman

Hey, Maggie, it's Ken. Good morning. I'll answer part of that question. I believe you're speaking about what was the key driver of the second half weakness on Engage. As we said, that is literally tied to two clients, the majority of which is one large Public Sector client that is having a problem with a third party that we're not affiliated with as it relates to the technology that they're offering and the infrastructure that they're offering. That is having ripples throughout the service that we're providing because the technology is not performing as they contracted. We're doing everything we can to work it out with the client. Like I say, it's a Public Sector client. We hope to have this resolved very shortly. That had the single biggest impact on the quarter.

Ken Tuchman

Kenny can comment on the overall impact of just that one client, but I think it would have allowed us to basically achieve between that and one other client, which was a smaller portion of the management plan. Kenny, do you want to take it any further?

Kenny Wagers

Yeah, Maggie. I think what's key for us, Ken outlined the impact to Q2 on those two clients in the Public Sector vertical and the telecom vertical. For us, I think it's key even as we talk about adjusting guidance for Engage, we are still looking at growth and margin expansion, both sequentially in Q3 and in Q4, as well as the second half of this year being up to the prior year. That gets to your second part of your question that we are confident in the pipeline. Our backlog is at $1.5 billion or 98% of our full year. We have line of sight to the net new revenue and the contracts that we have forecasted in the second half.

Kenny Wagers

We're confident in this new guidance, and we're confident in the year-over-year comps for the balance of the year to show that trajectory going forward because of the strength of the pipeline and the backlog going forward. We talked about Q4 a little bit last quarter. From a seasonality standpoint, we continue to see the same, again, sequential quarter growth and the same trend line that we see year-over-year by quarter for the Engage business specifically.

Maggie Nolan

Thank you. On your margin commentary there, Kenny, it sounds like, well, maybe can you help me understand the balance between how much of the margin and recovery in the back half is going to be driven by converting bookings on the timeline that you're anticipating versus the actions that you're taking on some of the less profitable relationships that you were just talking about in the prior question?

Kenny Wagers

Yeah. I would say heavily weighted towards the beginning of your question. Again, this margin rationalization, which we always do, this is a customer-specific business model tied to facilities and country P&Ls. Looking at high single-digit customers for that margin rationalization that we've identified really doesn't come close to outweighing the margin improvement and profit improvement that we see in our core business, and that we see in the net new revenue growth that we've had year-to-date, and so we continue to have in the back half of the year. So heavily weighted towards the new business, the new logos, and the core embedded base business that we have.

Kenny Wagers

Those businesses and the improvements that we call them shop floor improvements internally in the company that build on the AI technology that we're building for our agents internally to use, and then the commercial AI that we're also selling to the client. So it's that technology partnered with our agents that's really driving the margin improvement in our embedded base that far is the big driver of our margin improvement in the second half of the year.

Maggie Nolan

Thank you.

Ken Tuchman

Thank you.

Operator

Thank you. Our next question is from Vincent Colicchio from Barrington Research. Your line is now open.

Vincent Colicchio

Yeah. How much additional restructuring expense should investors expect before the cost structure is right-sized?

Kenny Wagers

Hey, Vince. This is Kenny. I would say, if you look at it again, we are constantly looking at the cost structure of the company. We are constantly evolving to make sure that our costs align with the top line of the business and align to the gross margins that we are driving. I would tell you that from a forecast standpoint for the balance of the year, it is going to be in line to what we have experienced in the first half. Because, again, we took cost actions in 2025 that annualized into the beginning of this year. So I would tell you it is roughly on the same trajectory that it has been for the previous four to six quarters.

Vincent Colicchio

Has the competitive environment changed since last quarter, particularly around pricing?

Kenny Wagers

For Engage or Digital? Do you want to be specific, or you want to talk both?

Vincent Colicchio

Yeah, for Engage. Just maybe incorporating that one of your larger competitors is having some financial issues and if that is having an effect.

Kenny Wagers

Yeah, look, I would tell you that the pricing environment really hasn't changed in the last four-plus quarters, let's call it. I think as I mentioned in my script, and Ken might have mentioned it as well, what we are seeing, and we've seen this for a couple of quarters, is with new logos specifically, they're starting a little smaller. They're kind of dipping their toe in because they want to see the technology that we've built. They want to see the use of technology with our agents to see the outcomes that they're looking for and that we are solutioning with them as we win their business.

Kenny Wagers

I wouldn't say that the pricing pressure is any different this quarter than it's been for the last four, but definitely deal size is starting off smaller, and we got to prove ourselves a little more, it seems like in the first three to six months to then get the next stage or step function change in winning that and continuing to grow that embedded base once we get the new logo.

Vincent Colicchio

Thanks for all that color.

Kenny Wagers

Got it.

Operator

This concludes TTEC's second quarter 2026 earnings conference call. You may disconnect at this time.

Investor releaseQuarter not tagged2026-08-10

TTEC: Q2 Earnings Snapshot

Associated Press

AUSTIN, Texas (AP) — AUSTIN, Texas (AP) — TTEC Holdings Inc. (TTEC) on Monday reported a loss of $15.4 million in its second quarter. On a per-share basis, the Austin, Texas-based company said it had a loss of 31 cents. Earnings, adjusted for amortization costs and asset impairment costs, were 3 cents per share. The customer engagement management company posted revenue of $455.5 million in the period. TTEC expects full-year earnings in the range of 79 cents to 99 cents per share, with revenue in the range of $1.94 billion to $1.99 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TTEC at https://www.zacks.com/ap/TTEC

Investor releaseQuarter not tagged2026-08-10

TTEC Announces Second Quarter 2026 Financial Results

GlobeNewswire
Updates Outlook for Full Year 2026 Reviewing Strategic Alternatives Related to its TTEC Digital Business Segment AUSTIN, Texas, Aug. 10, 2026 (GLOBE NEWSWIRE) -- 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…Read full document

Updates Outlook for Full Year 2026 Reviewing Strategic Alternatives Related to its TTEC Digital Business Segment AUSTIN, Texas, Aug. 10, 2026 (GLOBE NEWSWIRE) -- 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.” 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.

Investor releaseQuarter not tagged2026-08-03

TTEC Schedules Second Quarter 2026 Earnings Release and Webcast of Investor Conference Call

GlobeNewswire

AUSTIN, Texas, Aug. 03, 2026 (GLOBE NEWSWIRE) -- 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 that TTEC will release its earnings results after market close on Monday, August 10, 2026, when a press release will be issued. The Company 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 "Investor 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 consulting, technology, and managed services company delivering solutions at the intersection of data, AI, and customer experience. 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-enhanced customer engagement, customer acquisition and growth, tech support, back office, and fraud prevention services. Founded in 1982, the Company's employees operate on six continents and bring technology and humanity together to deliver differentiated business results. To learn more, visit us at https://www.ttec.com. Corporate CommsMeredith [email protected] Investor RelationsRobert [email protected]

Investor releaseQuarter not tagged2026-06-01

TTEC (TTEC) Q1 2026 Earnings Call Transcript

Motley Fool
Image source: The Motley Fool. Friday, May 8, 2026 at 8:30 a.m. ET Chairman and Chief Executive Officer — Kenneth D. Tuchman Chief Financial Officer — Kenneth Wagers Need a quote from a Motley Fool analyst? Email [email protected] Ken Tuchman, Chairman and Chief Executive Officer of TTEC; and Kenny Wagers, Chief Financial Officer of TTEC. Yesterday, TTEC issued a press release announcing its financial results. While this call will reflect items discussed in that document, for complete information about our financial performance, we also encourage you to read our Q1 2026 quarterly report on Form 10-Q. Before we begin, I want to remind you that managers discussed on today's call may include forward-looking statements related to our operating performance, financial goals and business outlook, which are based on management's current beliefs and assumptions. Please note that these forward-looking statements reflect our opinions as of the date of this call, and we undertake no obligation to update this information as a result of new developments that may occur. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause our actual results to differ materially from those expected and described today. For a more detailed description of our risk factors, please review our 2025 annual report on Form 10-K. A replay of this conference call will be available on our website under the Investor Relations section. I will now turn the call over to Ken. Kenneth Tuchman: Good morning, and thank you for joining us today. This quarter, we maintained our focus on strengthening our foundation, while continuing to invest in AI-enabled innovations across our business. For the first quarter of 2026, revenue was $496 million. EBITDA was $46 million, and we generated $21 million in free cash flow this quarter, which contributed to our reduction of $79 million in our credit facility borrowings since the first quarter of 2025. This reflects our continued focus on strengthening our balance sheet. I also want to call out that our first quarter EBITDA was impacted by a delayed receivable on one of our large public sector projects, for which a portion has already been approved. This receivable would have resulted in first quarter EBITDA of $49 million or 9.7% of revenue. We expect the $3 million of EBITDA to be reflected in our Q2 financials. Regarding…Read full document

Image source: The Motley Fool. Friday, May 8, 2026 at 8:30 a.m. ET Chairman and Chief Executive Officer — Kenneth D. Tuchman Chief Financial Officer — Kenneth Wagers Need a quote from a Motley Fool analyst? Email [email protected] Ken Tuchman, Chairman and Chief Executive Officer of TTEC; and Kenny Wagers, Chief Financial Officer of TTEC. Yesterday, TTEC issued a press release announcing its financial results. While this call will reflect items discussed in that document, for complete information about our financial performance, we also encourage you to read our Q1 2026 quarterly report on Form 10-Q. Before we begin, I want to remind you that managers discussed on today's call may include forward-looking statements related to our operating performance, financial goals and business outlook, which are based on management's current beliefs and assumptions. Please note that these forward-looking statements reflect our opinions as of the date of this call, and we undertake no obligation to update this information as a result of new developments that may occur. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause our actual results to differ materially from those expected and described today. For a more detailed description of our risk factors, please review our 2025 annual report on Form 10-K. A replay of this conference call will be available on our website under the Investor Relations section. I will now turn the call over to Ken. Kenneth Tuchman: Good morning, and thank you for joining us today. This quarter, we maintained our focus on strengthening our foundation, while continuing to invest in AI-enabled innovations across our business. For the first quarter of 2026, revenue was $496 million. EBITDA was $46 million, and we generated $21 million in free cash flow this quarter, which contributed to our reduction of $79 million in our credit facility borrowings since the first quarter of 2025. This reflects our continued focus on strengthening our balance sheet. I also want to call out that our first quarter EBITDA was impacted by a delayed receivable on one of our large public sector projects, for which a portion has already been approved. This receivable would have resulted in first quarter EBITDA of $49 million or 9.7% of revenue. We expect the $3 million of EBITDA to be reflected in our Q2 financials. Regarding our outlook, we're reiterating our full-year guidance. While our year-over-year results reflect our offshore expansion in Engage, a changing market remix in digital and the deliberate rationalization of a handful of underperforming clients, we expect these dynamics to improve our year-over-year profitability as the year progresses. With that context as a backdrop, I'd like to turn to market insights from our recent client advisory meeting. Twice a year, we sit down with several of our largest and most strategic clients to understand what's shaping their priorities. It was no surprise, AI and security were at the center of our conversations. We're seeing a real shift in how companies approach AI. Early adoption was limited to siloed proof of concepts with varied success. Now leaders are taking a much broader view Instead of just plugging in new tech for tech's sake, they're starting with their actual business goals and working backwards to build a road map. They've realized that real transformation isn't just about the software, it's about rethinking processes, culture and how the work actually gets done. We also heard from our CAB members that their internal bandwidth constrained IT teams are realizing they can't go it alone in such a fast-moving environment. They're looking for agile outside partners that have deep experience in CX as well as expertise in specialized security and fraud prevention. Facing risk of potential AI hallucinations, robots and ballooning unplanned token compute expenses. Business and IT leaders are seeking more than just technical help. They're looking for a partner that can turn these AI-specific technologies and financial challenges into a sustainable competitive advantage. This environment plays directly into our AI strategy. which has three pillars of value: one, client transformation. Because we live exclusively in the CX space, we know exactly where technology succeeds and where it can be improved. We combine premier tech partnerships with our own custom-built software to optimize our clients' tech stack, turning AI into a tool to augment associates, remove costly friction and deliver insight-driven growth. Two, human augmentation. True augmentation isn't just about giving an agent a bot. It's about knowing the technology so deeply that we can fundamentally reshape the frontline experience. We optimize the human-to-tech interface, automating the mundane so our associates can leverage personalized insights to deliver more customized, higher-value customer experiences. And three, operational excellence to strengthen our go-to-market as well as our internal operations. We're leaning into our deep technology and process expertise. We're automating internal redundant tasks and using analytics to gain insight into key value drivers to accelerate our growth and reduce cost. Our AI strategy is woven throughout our end-to-end approach, spanning consulting, technology and managed services. Now I'll share two quick stories that highlight how AI is helping us bring people, processes and technology together, not just to talk about innovation and positive business outcomes but to deliver them. First, let's look at a new client of ours, a fast-growing tele health provider. They needed to optimize a complex ecosystem of payers, providers and patients with disparate systems, customer needs and industry regulations. They chose us to design, build and operate an AI-driven road map that will unify their tech stack and empower frontline human healthcare advisers with real-time insights. With our solution in place, our client will be able to improve health outcomes at scale by balancing high-touch service with high-speed efficiency. The second example is a longtime partner of ours, a global travel brand. They were struggling with fragmented AI adoption and inconsistent results across dozens of different partners. We've been helping them move millions of their travelers around the world for over a decade. So we understand the complexity and unpredictability that they face every day. When it was time to level up their CX, they realize that their outside consultants, systems integrators and even their own internal IT teams didn't have the AI experience or operational depth to meet their needs. They chose us because we knew their systems, processes, business and most importantly, their customers almost as well as they did. Together, these examples highlight the strength of our AI-enabled end-to-end value proposition and why it's so important for our long-term growth. By integrating strategy, technology and operations into a single delivery engine, we address a core challenge in our industry, the execution gap. Because we deliver a continuously improving CX ecosystem with clear accountability we're enabling solutions that are not only innovative but durable and future-proof. We're encouraged that our strategy is beginning to take form even if it hasn't hit the numbers column yet. Our pipeline is growing. We're closing new deals and the level of engagement from our clients tells us we're on the right path for long-term growth. Now I'll turn to our segments. We'll start with our digital customer experience business, TTEC Engage. We're continuing to focus our efforts on three specific areas of the business. First, our continued offshore expansion is supporting both cost efficiency and scale. Our offshore revenue mix has increased from 34% to 38% for the 12 months ended March 31, 2026, compared to the prior-year period. We expect, by the end of the year, we will be delivering over 40% offshore. Second, we're actively refining our client mix by intentionally exiting a few lower-margin accounts and prioritizing higher value, more complex engagements. And third, embedding AI across our associates' life cycle from recruitment to learning and performance management. While these capabilities are just beginning to scale, results to date are encouraging. For example, through AI-aided hiring using our smart hire screening approach, we've increased interview to hire rates by as much as 25%, with early signals showing meaningful improvement in the retention and quality of the hire. In learning and performance, over 100 Engage clients and over 25,000 associates now operate on our TTEC Perform platform. In select programs, we're seeing improvements in NPS and higher quality scores tied to AI-enabled coaching and support, and we're seeing strong results with our accent softening and language translation platforms. These AI supported tools are enabling offshore deployment that delivers premium voice experiences without compromising scale. Our TTEC Engage pipeline is healthy as customer-centric brands seek partners that can move quickly and demonstrate results. Our vertical focused go-to-market platform is yielding year-over-year pipeline growth with larger average deal sizes. While some of these opportunities involve more complex commercial models and therefore, take longer to close, we remain confident in both the pipeline and our outcome-focused strategy. Now on to TTEC Digital, where we continue to evolve our professional and managed services to align with how clients are approaching digital transformation. As a data, AI and security partner for our CX solutions, we're helping our clients optimize the tech they already have while making sure their CCaaS, CRM and AI investments are disciplined, secure and built to scale. Q1 results were largely impacted by the short cycle nature of our professional services business. Although we achieved nearly 90% of our bookings target and a 96% book-to-bill ratio, 50% of our bookings closed in the final three weeks of the quarter. While this concentration led to a shortfall against our initial targets, the increase in late quarter demand and pipeline strength is encouraging. With new leadership in place, we're confident in our ability to manage through these timing delays as we build a more consistent and resilient foundation for growth. Our progress is driven by a clear market evolution, clients want to navigate the AI landscape without abandoning their existing investments. Our CX and technical expertise allows us to optimize their current platforms. Whether hyperscalers or best-in-breed tools, where we see gaps in the market, we're building proprietary software to stitch the CX ecosystem together. By infusing these tools with AI, we can deliver secure, rapid results without forcing our clients into those costly and disruptive rip and replace projects that everybody wants to avoid. Our AI Gateway launched this quarter highlights our fit-for-purpose software strategy. As a proprietary integration platform, it bridges existing CCaaS systems with leading AI platforms, shrinking deployment time lines from months to weeks. This momentum is extending across all our CX technology solutions, including our modern data state and our AI observability platforms currently in beta. These new software solutions are meeting growing demand as we address urgent client needs for data readiness and systems transparency and accuracy. These platforms combined with our tenured relationships with the leading CX technology titans, positions TTEC as a partner designed to accelerate scalable growth. Working side by side with our clients, we're unlocking faster insight-to-action cycles, strengthening trust and AI-driven decisions and expanding long-term value creation through more intelligent, differentiated customer experiences. In closing, across both business segments, we recognize that our financial results are still catching up to our go-to-market and operational progress. The shift, however, towards our historic growth and margin profile is well underway. We remain disciplined and focused on our fundamentals that include strengthening our differentiated position as an end-to-end CX transformation partner through our vertical-specific solutions, strategic technology partnerships and proprietary software. Winning higher-value technology and services opportunities with our existing client base and new clients, and continuing to improve our profitability by strategically rebalancing our client portfolio, driving operational efficiencies and capitalizing on global talent pools. We have the right team, platform and strategy in place to capture the significant long-term opportunities ahead. By applying an agile approach to innovation and doubling down on AI-driven efficiency, we're doing far more than just navigating a changing market. We're positioning TTEC to own it in the future. On behalf of our Board, leadership and teams around the world, thank you for your continued support. And I'll now hand the call over to Kenny. Kenneth Wagers: Thank you, Ken, and good morning. I will start with a review of our first quarter 2026 financial results before discussing our reiterated full year 2026 financial outlook. In my discussion of the first quarter financial results, reference to revenue is on a GAAP basis, while EBITDA, operating income and earnings per share are on a non-GAAP adjusted basis, a full reconciliation of our GAAP to non-GAAP results is included in the tables attached to our earnings press release. Turning to our results. On a consolidated basis for the first quarter of 2026 compared to the prior-year period, revenue was $496 million compared to $534 million, a decrease of 7.1%. Adjusted EBITDA was $46 million or 9.2% of revenue compared to $56 million or 10.6%. Operating income was $32 million or 6.4% of revenue compared to $41 million or 7.8%. And EPS was $0.15 compared to $0.28. Foreign exchange had a positive $8 million impact on revenue in the first quarter over the prior year period, primarily in our Engage segment, while having a nominal impact on adjusted EBITDA and operating income. Turning to our first quarter 2026 segment results. In our Engage segment, first quarter revenue decreased 7.5% over the prior-year period to $394 million. Operating income was $25 million or 6.3% of revenue compared to $29 million or 6.9% of revenue in the prior year. The Engage segment's first quarter revenue was in line with our expectations. As discussed in my fourth quarter 2025 earnings comments, and as Ken mentioned, we forecasted lower first half revenue for Engage compared to the prior year as we rationalized a small number of underperforming clients and continue to expand our offshore mix. These actions are deliberate as we continue to focus on profitability despite near-term pressure on revenue. Based on embedded base expansion and new client launches, we are still on track to return to top line growth in the second half of the year at higher profit margins. It is also important to note that the year-over-year revenue variance was impacted by a public sector seasonal client, which accounted for over 40% of the first quarter revenue decline. First quarter 2026 Engage profitability was slightly below our plan, primarily related to a receivable generated from one of our largest public sector clients that Ken referenced in his comments. This impact was timing related and resulted in approximately $3 million of lower revenue and profitability in the quarter. Adjusting for this impact, Engage first quarter revenue was $397 million with operating income of $28 million or 7% of revenue, a slight margin increase over the prior year. We expect this positive adjustment to be recorded in our second quarter results as a portion of this receivable has already been resolved. We remain confident in the actions we have taken and continue to implement to drive higher profitability in our Engage segment. That said, these decisions do not necessarily result in straight line improvements. While our first quarter Engage operating income declined versus the prior year, we anticipate this trajectory to positively change in the second quarter with margins further expanding throughout the second half of the year. The Engage backlog is $1.51 billion or 94% of our 2026 revenue guidance at the midpoint of the range, down from 101% for the same period of 2025. The Engage last 12-month revenue retention rate is 94%, an improvement over the 88% for the same period last year. In our Digital segment, first quarter revenue was $102 million, a decrease of 5.7% over the prior year. Operating income was $7 million or 6.6% of revenue compared to $12 million or 11.2% of revenue for the same period last year. Digital's first quarter 2026 revenue was slightly below expectations with revenue mix impacting profitability. Recurring revenue declined 7.3% primarily within one of our traditional CCaaS practices due to the ongoing market shift away from legacy contact center point solutions. This decline was expected, and we continue to structure our managed services resources to align with forecasted revenue. Excluding our two legacy CCaaS practices, professional services grew 15.3% year-over-year. This growth reflects the momentum we are seeing in our expanded CX technology partnership network as we optimize clients' existing platforms through end-to-end transformative solutions. We are pleased with the first quarter double-digit growth in these practices and expect them to scale more rapidly throughout the year. Digital's total first quarter professional services revenue decreased 4.8% compared to the prior year. As front-end consulting engagements related to cloud migrations declined. The professional services revenue was also impacted by new contracted business signed during the quarter, with approximately 50% closed during the last three weeks. This pushed revenue out to the second quarter and beyond, negatively impacting first quarter profitability. Although these deals are not reflected in our current quarter results, we are pleased with the sales momentum. First quarter revenue benefited from product resale, which represented 2.5% of Digital's total first quarter revenue compared to 1.7% in the prior year. Although we still expect these product resales to decline on a full-year basis, as discussed in our fourth quarter commentary, we will participate in intermittent opportunities as they arise. However, we remain focused on our core growth strategies across professional services and recurring revenue in our nontraditional CCaaS practices. Our Digital backlog is $325 million or 76% of our 2026 revenue guidance at the midpoint of the range, essentially flat to the 77% for the same period last year. I will now share other first quarter 2026 metrics before discussing our outlook. Free cash flow was $21 million in the first quarter of 2026 compared to $16 million in the prior year. The year-over-year improvement of $5 million is due to an additional $6 million of cash flow from operations, less an increase in capital expenditures of $1 million. The increase in cash generation reflects our continued focus on cash management and working capital improvements. In the first quarter of 2026, capital expenditures were $6 million or 1.3% of revenue compared to $5 million or 1% in the prior year. Approximately 60% of the current quarter spend relates to growth in product development, real estate expansion and client technology investments. As of March 31, 2026, cash was $89 million with $892 million of debt, primarily representing borrowings under our recently amended $1.05 billion revolving credit facility. The net debt position of $803 million represents a year-over-year decrease of $79 million as we continue to focus on cash flow generation and debt reduction. We ended the first quarter 2026 with a net leverage ratio as defined under our credit facility of 3.77x, relatively unchanged over the prior year period. Our normalized tax rate was 52.9% in the first quarter of 2026 compared to 37.9% in the prior year. The tax rate is primarily due to the jurisdictional mix of pretax income. The impact of the U.S. valuation allowance recorded against the U.S. pretax losses will continue to impact the normalized tax rate with the rate fluctuating based on the total pretax income and the mix between foreign and U.S. jurisdictions. Turning to our 2026 outlook. I will now provide some context supporting our full-year financial guidance. Overall, our first quarter results were in line with expectations, taking into account the timing considerations mentioned for both Engage and Digital. Our Engage segment is expected to return to improved profitable year-over-year growth starting in the second quarter primarily driven by the operating and cost management actions implemented over the past two years to return to historical margins. We continue to build on this foundation through the rationalization of certain clients underperforming business and the growth of offshore revenue mix. These actions don't always translate to growth over the prior year in every quarter but are important contributors to delivering to our full year improvements and keeping us on course for longer-term margin expansion. In our Digital segment, we are executing on the shifting market demands through new partnerships for AI, data and security. These factors, combined with our in-depth knowledge and years of experience working with end-to-end CX platforms position us to profitably scale these practices in 2026 as with any market shift, the timing of revenue and related margins are not necessarily aligned to reflect consistent quarterly improvements. However, we remain confident in our ability to deliver on our full year 2026 guidance. Please reference our commentary in the Business Outlook section of our first quarter 2026 earnings press release to obtain our expectations for our reiterated 2026 full year guidance at the consolidated and segment level. In closing, we remain committed to our goals of continued profitable growth, cash flow improvement and debt reduction. These objectives are at the forefront of every decision we make and require continued focus and operational execution across the business. We are appreciative of the dedication of our leadership and employees around the globe and for the support from all our stakeholders. I will now turn the call back to Bob. Bob Belknapp: Thanks Kenny [Operator Instructions]. Operator: [Operator Instructions] Our first question will be coming from George Sutton of Craig-Hallum. George Sutton: Thank you. Obviously, a little noise in the quarter. So I wanted to kind of think about the industry narrative around the whole space. On one hand, your Q4 would sort of play into the narrative. But I'd say on the other hand, your larger pipeline for Engage with higher average deal sizes would play against it. So I just wanted to make sure I sort of fully understood the pipeline that you're looking at and at the same time, they deliver rationalization you're having with some other clients. I assume the new clients you bring in come in at much higher margins than the clients that you are rationalizing. Kenneth Tuchman: George, so I'm not fully understanding the question. But maybe what I'll do is just give a bit of a narrative on the health of the pipeline and of the business. Is that what you're asking of me? George Sutton: Obviously, there is a narrative in the market about AI's impact. And your pipeline would suggest, when you're seeing larger average deal sizes in that space, that's very intriguing. I wouldn't get behind that a little bit and understand it. Kenneth Tuchman: Yes. So first of all, I'm not trying to come across as a contrarian. But up to this point; as it relates to the DCX Engage business, we're not feeling a reduction in volumes due to AI. We're not suggesting that over time, that won't take place. But at this point in time, that is not something we're seeing. As a matter of fact, what we're actually seeing right now is a significant amount of activity with net new clients that are expanding as well as our embedded base that is now coming to us and expanding on many of our larger accounts. So that, coupled with the fact that on the DCX the actual amount of deals that have already been closed in first quarter and the deals that we expect to close in the second quarter is what gives us confidence to maintain our guidance. And frankly, we're really feeling good right now about what we're seeing coming at us, the deals that we're closing, the mix of the deals that are now starting to take advantage of our digital capabilities, And we feel like that's giving us a very significant edge because we can demonstrate to clients that not only do we have the right partnerships, but we have such a deep understanding technologically of what our clients are dealing with as well as what our partners have to offer. And therefore, it's giving us an edge to be able to demonstrate to our clients that we can have an impact on their business from an efficiency standpoint as it relates to us applying technology and applying AI. But the fact of the matter is, is that the pot is still so large and we're so relatively small to the overall size of that TAM that we're still seeing and feeling and winning many, many opportunities. In the first quarter, I don't -- I actually -- we'll wait until second quarter before we quote the number of net new clients that we've signed. But what I would just simply say to you is that on a new logo standpoint, we're well ahead of last year's first quarter of net new logos. And we're confident with the logos that we are in the process of signing that, that trend is going to continue for sure through second quarter. So I'm not trying to, in any way over-emphasize the potential in the market other than to just simply say that we feel that the marketplace is healthy. The providers that are providing high-quality service are winning consolidated business from other providers, who for whatever reason, aren't performing. And that unto itself provides very significant amounts of future opportunity for us as well as the space continues to kind of go through an organic and inorganic consolidation. George Sutton: My other question relative to the concept of avoiding rip and replacement, you mentioned you can actually bridge the existing CX with AI. Can you just give sort of a tangible example of what you're referring to there? Kenneth Tuchman: You're speaking about what was in my script. Is that correct. Is that's what you're pointing at? When you say just -- again, I want to make sure that I'm being more precise on answering your question. So we have -- with our AI media gateway, if that's what you're speaking about, -- we have multiple clients. And Digital is working on not only multiple clients but actually working with multiple hyperscalers, where they're taking advantage of our AI gateway, which allows us to very quickly integrate to our client CCaaS systems virtually all the major AI product offerings that are out there that people are focused on. I'm talking about primarily the hyperscalers, which would be Google's CCAI product offerings. I'm talking about AWS, LAMA offerings, I'm talking about Microsoft's Copilot offerings, et cetera. And so we're able to demonstrate to clients through our sandbox that we can implement this in a fraction of time that the other -- whether they be GSIs or other companies. And so this has allowed us to really attract a very significant lead flow from our partners, and that lead flow is what we're focused on and what we're converting. Operator: Our next question will be coming from Maggie Nolan of William Blair. Margaret Nolan: I'm hoping you can comment on -- you made a comment that new proposals -- most of the new proposals now incorporate AI. And I'm hoping you can give us some insight into kind of the average deal size and implementation timeline for some of these AI-enabled digital engagements as they compare to legacy contracts? Kenneth Tuchman: Yes, that's a great question. It's not an easy one to answer only because it's so dependent upon our clients' data states and how much data that we can actually gain access to. What I mean by that is, is that if it's a company that was relatively born natively digital, then our ability to provide a much more AI intensive capability for -- as it relates to voice spots and chatbots can be done in a very reasonable period of time measured in three months or so. And in some cases, if it's just the basic front end, even less. But with many of our clients that are in the Fortune 500 category that have very large legacy systems with a myriad of siloed systems to give you an example, a client that we recently completed a large project for, they have 235 separate systems that we had to actually connect to real time. That project took 24 months in order for us to be able to write all the APIs, tap all the different systems, et cetera, and then get synchronization out of them. So the big misnomer about taking advantage of AI is that people don't fully appreciate how complex it is for companies to achieve a modern data estate. And that is really one of the biggest issues that most of these legacy companies have is that their data is in so many different systems, and those systems don't necessarily even talk to each other. And so then it's our job to bring all of that together. So what our focus is when we're going into a client is the stuff that we know that we can turn on almost immediately. And so therefore, those are the tools that augment their associates or our associates. So what is it that we can do with AI from a QH standpoint? What is it that we can do with AI from a real-time language translation standpoint, what is it that we can do with AI from a scheduling and forecasting standpoint -- what is it that we can do with AI from a training, learning and development standpoint of building new curriculum, new capabilities. These are all things that are designed to augment the associate to get more proficiency, more accuracy, more quality out of the associate and to allow them to focus more on the customer and less on the actual systems. So we view that as Phase 1 across all of our clients, whereas Phase 2 is going into how you can actually create self-service stat bots, voice bots, et cetera, that ultimately keep the human in the loop. And I think that without getting on my soap box, which I know I'm very guilty of doing -- all I'm going to just simply say to you is as I mentioned in our script, we do our CAP meetings every six months where some of the largest companies in the world come in and discuss what their strategies are and what they're trying to achieve. And I can say to a tea that virtually every single one of them are focused on keeping the human in the loop. They're realizing that as much as AI is capable of replacing in certain cases, certain interactions. The fact of the matter is they don't want to lose the connective tissue to customer, and therefore, they want to have us help them pick the points of intersection of where technology is touching the customer and where a human is touching the customer. And that's where we see this whole industry going. We see this industry going into -- where this is going to become a set of hybrid capabilities where customers are going to always have the actual ability and the access to a live human being and on interactions that are important to them, whether it be financially or health care wise, et cetera, in more cases than not, those will be augmented humans meaning humans that are taking advantage of AI. And in cases where it's low hanging fruit, it's transactional. It provides no additional ability to build trust or loyalty that is where we will provide self-service type capabilities, so to speak. And so every one of our clients is trying to analyze this. They're going through journeys on this. Journey mapping on this, et cetera. And we're -- frankly, we're really excited about it. And this is why we feel like our digital business has so much potential as we go through this transition of less focus on the CCaaS capabilities that we've historically had and much more focused on building modern data states and providing AI capabilities and AI-based analytics. Margaret Nolan: And then I'd like to comment on the improvement in the retention and Engage revenues on a year-over-year basis. So could you link those continued efforts and expected improvements there, continued improvements, I would suspect back to kind of the return to growth timeline and trajectory for Engage? Kenneth Wagers: Maggie, this is Kenny. I'll take that one. We are seeing very steady and good improvement in our embedded base growth. We've talked about this quarter-over-quarter -- I know in our one-on-one discussions, especially with John Abu, it's -- we're improving our quality and service, right? It has been a focus for Engage over the last two years. To get back to the historical margins that we're committed to on the Engage business. There's a direct correlation to providing outstanding service on the floor of our operational centers. And so embedded base growth, as we continue to, again, bring in the external talent that we have to our leadership team and Engage and they bring expanded ideas around lines of business that we can get into that we haven't traditionally been in that are underpinning our offshore growth in Engage. That gives us the breadth of offering to go back to our embedded base and say, "Hey, we're investing in AI and all the things that Ken talked about earlier from our performance to our training to our QA. That with the footprint that we have, now we can go sell many, many different lines of business that we couldn't in the past." And so the embedded base is moving with us they are underpinning the growth that you're going to see in the second half of the year. We've talked about that in the reaffirm that we put out on guidance. We are going to return the top line growth in Engage by the end of the year. That's a big part of it. And so we're happy with where we're at with that. We're happy with, again, the service that we're providing, the embedded base business and their desire to come back to us and grow in different lines of business in the different geographies. Operator: Our next question will be coming from Jonathan Lee of Guggenheim Partners. Jonathan Lee: Kenny, helpful that you broke out the Pub sec seasonal client is 40% plus the decline in the Engage. Of the remaining, call it, $19 million of Engage revenue decline, was any of that unplanned volume loss on retained clients? Or was it entirely delivered rationalization? And what's the same client organic growth rate for the portfolio you're choosing to keep? Kenneth Wagers: Yes. Yes, Jonathan, it is definitely a little of both. As we talked about coming into this year, as I talked about in Q4, as we look at our full year guidance. It was going to be a story of two halfs. We are rationalizing, as Ken mentioned, clients to make sure that we have the profit profile that we need for this business moving forward. And so I don't have the exact number for you, but it is definitely a portion of both. That with the timing of the bookings and the pipeline and the momentum that Ken talked about earlier, leads to a stronger second half than a first half for Engage. And so we're happy with where we're at, absolutely with the bookings that we have, with the new logos that we have and how those are going to realize -- the revenue that's going to be realized out of that in the second half of the year. Rationalizations with clients is a little bit of a push and take, right? We're going back to them, we're showing them. We're having a discussion about what we need from them and what they need from us in order to try to keep that business and make it profitable for us as well as a good quality service for them. So we don't -- we'd rather work it out to keep them in the house. But if we can't, that's fine because we have the demand especially offshore, as we've mentioned, our pipeline is up 17% year-over-year with offshore demand. And so -- we are, again, very focused on the diversification of the Engage business from a geographic standpoint, from a line of business standpoint and from a vertical standpoint. Kenneth Tuchman: I will say, though, that interestingly enough, the public sector pipeline is actually fairly healthy. And what I will say is that with my personal involvement along with John Abou's involvement. We are going out of our way in ensuring that the net new public sector accounts or accounts that are profitable day one to start. We inherited multiple public sector clients through an old acquisition that was done many years ago. And that is -- some of those accounts, a few of them -- a couple of them are ones that Kenny was referring to, et cetera. And -- but what I would just simply say is that the government sector is still a very healthy sector, not only for Engage, but also for Digital, especially Digital actually. A lot of federal spending going on right now and modernization and our goal is to get our piece of that. Jonathan Lee: Got it. And just as a follow-u,p, I want to tie it back to margins. Adjusted you're up, you're at, call it, 7% for Engage. But you've executed, call it, 400 basis points of offshore shift. Your near full AI deployment, you've exited unprofitable work. And in 3Q of last year, I think you told us we'd see far better efficiencies in 2026. Than last quarter. Ken, I believe you said you're 100% volunteering AI savings on new pitches to win new business. Is that the answer the tailwinds are real, but you're giving them back on new deals? And if so, when does volume from those wins overcome the rate concession? Kenneth Tuchman: Yes. So I think you had multiple questions there. So no, we're not getting it away. So if that's your question, I'd rather Kenny answer the financial side but only to say the following in the script, I think you probably heard that our Engage number -- but for a receivable that's being pushed into second quarter was pretty much dead on the money of where we -- where management plan forecasted, which I believe was in 9.8% or 9.7%. And so I'm not sure what you were referring as operating income. Oh okay . It was OI -- excuse me. So my point is that we always anticipated that our EBITDA number was going to be at that number for first quarter. To answer your question, it's all in the second half of the year. And we've always been rear-end loaded in the 40 years we've been in business. It's always been towards the second half of the year. You win the business in the first two quarters. You continue to hopefully keep winning business in the third and fourth quarter. But meanwhile, you're ramping a big chunk of that business, first and second quarter, and you realize the benefits of that business in third and fourth quarter. It's just the nature of the business as you're ramping. And because we are so focused on client diversification right now, there is a fair amount of ramps that are taking place, let alone embedded base that's ramping. Kenny, is there anything else you want to add to that? Kenneth Wagers: Yes, Jonathan, I think to your specific question on that, again, we are -- as Ken mentioned earlier, we're still not seeing the monetization fall one way or the other on AI from a pricing standpoint. The AI that we have deployed around CA quality, performance, those aren't hard negotiations around where does the pricing fall between client and us on that. What we're really seeing is, again, the normalization of the offshore growth which has near-term pressure on the top line revenue. But ultimately, as you know very well, is a better EBITDA margin profile for us. And so as we move through the new business, the new logos, the embedded base growth that we have this year towards year-over-year top line revenue growth, that revenue is fortified on the offshore portion of the business. Again, I think last quarter, we committed to being over 40% by the end of the year, and we're well on target to do that. And so it is that mix that is giving us the margin -- a big portion of the margin improvement for the Engage business throughout the full year of guidance. Operator: Thank you for your questions. That is all the time we have today. This concludes TTEC's First Quarter 2026 Earnings Conference Call. You may disconnect at this time. Before you buy stock in TTEC Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TTEC Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. TTEC (TTEC) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Investor releaseQuarter not tagged2026-05-09

TeleTech Q1 Earnings Call Highlights

MarketBeat
Interested in TeleTech Holdings, Inc.? Here are five stocks we like better. TeleTech’s Q1 results weakened year over year, with revenue falling 7.1% to $496 million and adjusted EPS dropping to $0.15 from $0.28. Adjusted EBITDA also declined to $46 million, though management said a delayed public-sector receivable will add about $3 million of EBITDA in Q2. Cash flow and balance-sheet improvement remained a bright spot. Free cash flow rose to $21 million, and net debt fell $79 million from a year ago, leaving the company with $803 million in net debt and a 3.77x net leverage ratio. Management reiterated full-year guidance and leaned on AI, offshore delivery and client rationalization to lift profitability. TTEC expects Engage margins to improve later in the year as offshore mix rises above 40%, while Digital is adapting to market shifts through AI, data and security partnerships. TeleTech (NASDAQ:TTEC) reported lower first-quarter revenue and profit compared with a year earlier, while management reiterated its full-year 2026 outlook and said investments in artificial intelligence, offshore delivery and client portfolio changes are expected to support improved profitability as the year progresses. Chairman and Chief Executive Officer Ken Tuchman said revenue for the quarter ended March 31, 2026, was $496 million, adjusted EBITDA was $46 million and free cash flow was $21 million. He said the company has reduced credit facility borrowings by $79 million since the first quarter of 2025, reflecting a continued focus on strengthening the balance sheet. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Tuchman also noted that first-quarter EBITDA was affected by a delayed receivable tied to a large public sector project. He said a portion of the receivable has already been approved and that, had it been reflected in the quarter, EBITDA would have been $49 million, or 9.7% of revenue. The company expects the $3 million EBITDA impact to be reflected in second-quarter results. Chief Financial Officer Kenny Wagers said consolidated first-quarter revenue fell 7.1% year over year to $496 million from $534 million. Adjusted EBITDA declined to $46 million, or 9.2% of revenue, from $56 million, or 10.6% of revenue, in the prior-year quarter. Adjusted operating income was $32 million, or 6.4% of revenue, compared with $41 million, or 7.8%, a year earlier. Ad…Read full document

Interested in TeleTech Holdings, Inc.? Here are five stocks we like better. TeleTech’s Q1 results weakened year over year, with revenue falling 7.1% to $496 million and adjusted EPS dropping to $0.15 from $0.28. Adjusted EBITDA also declined to $46 million, though management said a delayed public-sector receivable will add about $3 million of EBITDA in Q2. Cash flow and balance-sheet improvement remained a bright spot. Free cash flow rose to $21 million, and net debt fell $79 million from a year ago, leaving the company with $803 million in net debt and a 3.77x net leverage ratio. Management reiterated full-year guidance and leaned on AI, offshore delivery and client rationalization to lift profitability. TTEC expects Engage margins to improve later in the year as offshore mix rises above 40%, while Digital is adapting to market shifts through AI, data and security partnerships. TeleTech (NASDAQ:TTEC) reported lower first-quarter revenue and profit compared with a year earlier, while management reiterated its full-year 2026 outlook and said investments in artificial intelligence, offshore delivery and client portfolio changes are expected to support improved profitability as the year progresses. Chairman and Chief Executive Officer Ken Tuchman said revenue for the quarter ended March 31, 2026, was $496 million, adjusted EBITDA was $46 million and free cash flow was $21 million. He said the company has reduced credit facility borrowings by $79 million since the first quarter of 2025, reflecting a continued focus on strengthening the balance sheet. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Tuchman also noted that first-quarter EBITDA was affected by a delayed receivable tied to a large public sector project. He said a portion of the receivable has already been approved and that, had it been reflected in the quarter, EBITDA would have been $49 million, or 9.7% of revenue. The company expects the $3 million EBITDA impact to be reflected in second-quarter results. Chief Financial Officer Kenny Wagers said consolidated first-quarter revenue fell 7.1% year over year to $496 million from $534 million. Adjusted EBITDA declined to $46 million, or 9.2% of revenue, from $56 million, or 10.6% of revenue, in the prior-year quarter. Adjusted operating income was $32 million, or 6.4% of revenue, compared with $41 million, or 7.8%, a year earlier. Adjusted earnings per share were $0.15, down from $0.28. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Foreign exchange had a positive $8 million impact on revenue, primarily in the Engage segment, while having a nominal effect on adjusted EBITDA and operating income, Wagers said. Free cash flow increased to $21 million from $16 million a year earlier, driven by an additional $6 million of cash flow from operations, partially offset by a $1 million increase in capital expenditures. Capital expenditures were $6 million, or 1.3% of revenue, with about 60% of the spending tied to product development, real estate expansion and client technology investments. → Years in the Making, AMD’s Upside Movement Has Just Begun As of March 31, TTEC had $89 million of cash and $892 million of debt, primarily borrowings under its recently amended $1.05 billion revolving credit facility. Net debt was $803 million, down $79 million from a year earlier. The company ended the quarter with a net leverage ratio, as defined under its credit facility, of 3.77 times. In TTEC Engage, first-quarter revenue fell 7.5% year over year to $394 million. Operating income was $25 million, or 6.3% of revenue, compared with $29 million, or 6.9% of revenue, a year earlier. Wagers said Engage revenue was in line with the company’s expectations, reflecting a forecast for lower first-half revenue as TTEC rationalizes a small number of underperforming clients and continues expanding its offshore mix. He said the actions are deliberate and designed to improve profitability despite near-term revenue pressure. A public sector seasonal client accounted for more than 40% of the first-quarter revenue decline, he added. Adjusting for the delayed public sector receivable, Wagers said Engage revenue would have been $397 million and operating income would have been $28 million, or 7% of revenue, representing a slight margin increase from the prior year. Tuchman said the company’s offshore revenue mix in Engage rose to 38% for the 12 months ended March 31, 2026, from 34% in the prior-year period. He said TTEC expects to be delivering more than 40% offshore by the end of the year. The company is also embedding AI across recruiting, learning and performance management. Tuchman said AI-aided hiring through the company’s SmartHire screening approach has increased interview-to-hire rates by as much as 25% in some cases. Wagers said the Engage backlog was $1.51 billion, or 94% of 2026 revenue guidance at the midpoint, down from 101% for the same period in 2025. The segment’s last-12-month revenue retention rate improved to 94% from 88% a year earlier. TTEC Digital revenue declined 5.7% year over year to $102 million. Operating income fell to $7 million, or 6.6% of revenue, from $12 million, or 11.2%, in the prior-year period. Wagers said Digital revenue was slightly below expectations, with the revenue mix weighing on profitability. Recurring revenue declined 7.3%, primarily in one traditional CCaaS practice, due to a market shift away from legacy contact center point solutions. Excluding two legacy CCaaS practices, professional services grew 15.3% year over year, reflecting momentum in expanded CX technology partnerships. Total Digital professional services revenue declined 4.8% year over year, partly due to fewer front-end consulting engagements tied to cloud migrations. Wagers also said about 50% of new contracted business signed during the quarter closed in the final three weeks, pushing revenue into the second quarter and beyond. Tuchman said TTEC Digital is focused on helping clients optimize existing technology investments rather than pursue “costly and disruptive rip-and-replace projects.” He highlighted the company’s AI Gateway, a proprietary integration platform designed to connect existing CCaaS systems with leading AI platforms and reduce deployment timelines “from months to weeks.” Tuchman said recent client advisory meetings showed that AI and security are top priorities for TTEC’s large strategic clients. He said companies are moving beyond isolated proofs of concept and are increasingly approaching AI from the standpoint of business goals, processes and operating models. Management described TTEC’s AI strategy as focused on three areas: client transformation, human augmentation and operational excellence. Tuchman cited examples involving a fast-growing telehealth provider and a global travel brand, saying both illustrate demand for AI-enabled customer experience services that combine consulting, technology and managed operations. During the question-and-answer session, Tuchman said TTEC is not currently seeing volume reductions in its digital customer experience Engage business due to AI. Instead, he said the company is seeing activity from new clients and expansion within its existing base. He said new logos signed in the first quarter were “well ahead” of the prior-year first quarter, though he did not provide a specific number. Asked about AI implementation timelines, Tuchman said they vary widely depending on the state of a client’s data systems. For companies that are more digitally native, AI-enabled voice bots and chatbots may be implemented in roughly three months or less for basic front-end use cases. For large legacy enterprises with many siloed systems, he said projects can be far more complex, citing one completed project involving 235 separate systems that took 24 months. TTEC reiterated its full-year 2026 guidance. Wagers said first-quarter results were in line with expectations after accounting for timing issues in both Engage and Digital. He said Engage is expected to return to improved profitable year-over-year growth starting in the second quarter, supported by cost management actions, client rationalization and offshore growth. In Digital, Wagers said the company is responding to shifting market demand through partnerships in AI, data and security, while leveraging its experience with end-to-end customer experience platforms. “We remain committed to our goals of continued profitable growth, cash flow improvement, and debt reduction,” Wagers said. TTEC Holdings, Inc (NASDAQ: TTEC) is a global customer experience technology and services company that designs, builds and delivers transformative solutions for customer acquisition and engagement. Leveraging a combination of digital consulting, technology, analytics and operations services, TTEC helps clients across industries enhance their customer journeys, automate key processes and harness data-driven insights to foster loyalty and drive revenue growth. The company's core offerings span end-to-end customer engagement solutions, including customer experience (CX) strategy consulting, cloud migration, omni-channel contact center operations and managed services. The article "TeleTech Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Investor releaseQuarter not tagged2026-05-08

TTEC Announces First Quarter 2026 Financial Results and Reiterates Outlook for Full Year 2026

GlobeNewswire
AUSTIN, Texas, May 07, 2026 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2026. "While our performance this quarter was impacted by timing shifts across the business, our commitment to our annual plan is steadfast. Our momentum moving into the balance of the year with recent exciting new client wins and embedded base growth in our diversified portfolio, gives us confidence that we are on our way to achieving our full year objectives,” commented Ken Tuchman, chairman and chief executive officer, TTEC. Tuchman continued, "Market demand for our AI expertise is accelerating. Enterprise brands are looking for partners who can bridge the gap between high-level AI strategy and practical, large-scale CX technology and services execution. Our ability to design, build, and operate secure and scalable solutions provides a distinct competitive advantage that is translating into new contract wins and a growing pipeline. While we have more work to do to achieve our historic growth and margin profile, we have the right strategies and teams in place to deliver on our full year commitments, and lead in this rapidly evolving customer experience market.” FIRST QUARTER 2026 FINANCIAL HIGHLIGHTS Revenue First quarter 2026 GAAP revenue was $496.2 million, a 7.1 percent decrease compared to $534.2 million in the prior year. Foreign exchange had a $7.8 million positive impact on revenue in the first quarter of 2026. Income from Operations First quarter 2026 GAAP income from operations was $18.5 million, or 3.7 percent of revenue, compared to $24.2 million, or 4.5 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 $31.7 million, or 6.4 percent of revenue, compared to $41.5 million, or 7.8 percent of revenue in the prior year. Foreign exchange had a $0.6 million negative impact on Non-GAAP income from operations in the first quarter of 2026. Adjusted EBITDA First quarter 2026 Non-GAAP Adjusted EBITDA was $45.8 million, or 9.2 percent of revenue, compared to $56.4 million, or 10.6 percent…Read full document

AUSTIN, Texas, May 07, 2026 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2026. "While our performance this quarter was impacted by timing shifts across the business, our commitment to our annual plan is steadfast. Our momentum moving into the balance of the year with recent exciting new client wins and embedded base growth in our diversified portfolio, gives us confidence that we are on our way to achieving our full year objectives,” commented Ken Tuchman, chairman and chief executive officer, TTEC. Tuchman continued, "Market demand for our AI expertise is accelerating. Enterprise brands are looking for partners who can bridge the gap between high-level AI strategy and practical, large-scale CX technology and services execution. Our ability to design, build, and operate secure and scalable solutions provides a distinct competitive advantage that is translating into new contract wins and a growing pipeline. While we have more work to do to achieve our historic growth and margin profile, we have the right strategies and teams in place to deliver on our full year commitments, and lead in this rapidly evolving customer experience market.” FIRST QUARTER 2026 FINANCIAL HIGHLIGHTS Revenue First quarter 2026 GAAP revenue was $496.2 million, a 7.1 percent decrease compared to $534.2 million in the prior year. Foreign exchange had a $7.8 million positive impact on revenue in the first quarter of 2026. Income from Operations First quarter 2026 GAAP income from operations was $18.5 million, or 3.7 percent of revenue, compared to $24.2 million, or 4.5 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 $31.7 million, or 6.4 percent of revenue, compared to $41.5 million, or 7.8 percent of revenue in the prior year. Foreign exchange had a $0.6 million negative impact on Non-GAAP income from operations in the first quarter of 2026. Adjusted EBITDA First quarter 2026 Non-GAAP Adjusted EBITDA was $45.8 million, or 9.2 percent of revenue, compared to $56.4 million, or 10.6 percent of revenue in the prior year. Earnings Per Share First quarter 2026 GAAP fully diluted net loss per share was $0.11 compared to net income per share of $0.07 in the prior year. Non-GAAP fully diluted earnings per share was $0.15 compared to $0.28 in the prior year. CASH FLOW AND BALANCE SHEET Cash flow from operations in the first quarter of 2026 was $27.5 million compared to $21.6 million for the first quarter of 2025. Free cash flow in the first quarter of 2026 was $21.1 million compared to $16.2 million for the first quarter of 2025. Capital expenditures in the first quarter of 2026 were $6.4 million compared to $5.4 million for the first quarter of 2025. As of March 31, 2026, TTEC had cash and cash equivalents of $88.7 million and debt of $891.5 million, resulting in a net debt position of $802.7 million. This compares to a net debt position of $881.4 million for the same period 2025. 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 First quarter 2026 GAAP revenue for TTEC Digital was $101.9 million, a decrease of 5.7 percent compared to $108.0 million for the year ago period. Income from operations was $1.4 million or 1.3 percent of revenue compared to $5.9 million or 5.4 percent of revenue in the prior year. Non-GAAP income from operations was $6.7 million, or 6.6 percent of revenue compared to operating income of $12.1 million or 11.2 percent of revenue in the prior year. TTEC Engage – Technology-enabled customer care, acquisition, and fraud mitigation services First quarter 2026 GAAP revenue for TTEC Engage was $394.3 million, a 7.5 percent decrease from $426.2 million for the year ago period. Income from operations was $17.1 million or 4.3 percent of revenue compared to $18.3 million, or 4.3 percent of revenue in the prior year. Non-GAAP income from operations was $24.9 million, or 6.3 percent of revenue, compared to operating income of $29.4 million, or 6.9 percent of revenue in the prior year. Foreign exchange had a $6.9 million positive impact on revenue and a $0.8 million negative impact on income from operations. BUSINESS OUTLOOK “Our first quarter financial results were slightly below expectations across both segments, primarily due to timing factors. In TTEC Digital, we signed significant new professional services engagements with a large portion phased late in the quarter, impacting near-term revenue and profitability. With this sales momentum and a growing pipeline, we are confident we will deliver meaningful growth in our diversified practices throughout the remainder of the year. In TTEC Engage, we continue to focus on profit optimization through the rationalization of certain underperforming clients, infusing AI-technology into business process enhancements, and growing our offshore revenue mix. These initiatives are anticipated to deliver profitability improvements throughout the remainder of the year,” commented Kenny Wagers, chief financial officer of TTEC. Wagers continued, “Our confidence in the business segments remains unchanged and we are re-affirming our full year guidance.” 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 2025 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, 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 Friday, May 8, 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 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.

Investor releaseQuarter not tagged2026-05-08

TTEC: Q1 Earnings Snapshot

Associated Press

AUSTIN, Texas (AP) — AUSTIN, Texas (AP) — TTEC Holdings Inc. (TTEC) on Thursday reported a loss of $7.6 million in its first quarter. The Austin, Texas-based company said it had a loss of 16 cents per share. Earnings, adjusted for one-time gains and costs, were 15 cents per share. The customer engagement management company posted revenue of $496.2 million in the period. TTEC expects full-year earnings in the range of $1.06 to $1.32 per share, with revenue in the range of $2.01 billion to $2.06 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TTEC at https://www.zacks.com/ap/TTEC

Investor releaseQuarter not tagged2026-05-08

TTEC Holdings (TTEC) Misses Q1 Earnings Estimates

Zacks
TTEC Holdings (TTEC) came out with quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -40.00%. A quarter ago, it was expected that this customer engagement management company would post earnings of $0.39 per share when it actually produced earnings of $0.47, delivering a surprise of +20.51%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. TTEC, which belongs to the Zacks Technology Services industry, posted revenues of $496.18 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.85%. This compares to year-ago revenues of $534.23 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TTEC shares have lost about 17.2% since the beginning of the year versus the S&P 500's gain of 7.6%. While TTEC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TTEC was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) st…Read full document

TTEC Holdings (TTEC) came out with quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -40.00%. A quarter ago, it was expected that this customer engagement management company would post earnings of $0.39 per share when it actually produced earnings of $0.47, delivering a surprise of +20.51%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. TTEC, which belongs to the Zacks Technology Services industry, posted revenues of $496.18 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.85%. This compares to year-ago revenues of $534.23 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TTEC shares have lost about 17.2% since the beginning of the year versus the S&P 500's gain of 7.6%. While TTEC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TTEC was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.27 on $481.85 million in revenues for the coming quarter and $1.20 on $2.03 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Society Pass Incorporated (SOPA), is yet to report results for the quarter ended March 2026. This company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +75%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Society Pass Incorporated's revenues are expected to be $2.61 million, up 77.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TeleTech Holdings, Inc. (TTEC) : Free Stock Analysis Report Society Pass Incorporated (SOPA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As of 2026-08-15 • Updated weeklySource: Earnings sourceIngestion runbook