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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 6, 2025

 

TTEC Holdings, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware 001-11919 84-1291044
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification Number)

 

100 Congress Avenue, Suite 1425,  Austin, TX 78701

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: 303-397-8100

 

Not Applicable
(Former name or former address if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock of TTEC Holdings, Inc., $0.01 par value per share TTEC NASDAQ

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 


 

Item 2.02. Results of Operations and Financial Condition.

 

On November 6, 2025, TTEC Holdings, Inc. issued a press release announcing financial results for its third quarter 2025, the reporting period ended September 30, 2025.

 

A copy of the November 6, 2025 press release is attached hereto as Exhibit 99.1 to this current report on Form 8-K.

 

Item 9.01.   Financial Statements and Exhibits

 

(d)  Exhibits.

 

EXHIBIT INDEX

 

Exhibit No.   Description
99.1   Press release announcing financial results for third quarter ended September 30, 2025
104   Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

 

The information in this Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

 

SIGNATURE

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  TTEC Holdings, Inc.
  (Registrant)
   
     
Date: November 6, 2025 By: /s/ Kenneth R. Wagers, III
   

Kenneth R. Wagers, III

Chief Financial Officer

 

2

 

EX-99.1 2 tm2530356d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

TTEC Announces Third Quarter 2025

Financial Results

 

 

Third Quarter 2025

 

 

Revenue was $519.1 Million

 

Net Loss was $11.1 Million or negative 2.1 Percent of Revenue

(Net Income of $5.9 Million or 1.1 Percent of Revenue Non-GAAP)

 

Adjusted EBITDA was $43.4 Million or 8.4 Percent of Revenue

 

Reiterates Outlook for Full Year 2025

Announces Term Extension of Credit Facility

 

 

AUSTIN, Texas, November 6, 2025 – TTEC Holdings, Inc. (NASDAQ:TTEC), a leading global CX (customer experience) technology and services innovator for AI-enabled CX with solutions from TTEC Engage and TTEC Digital, announced today financial results for the third quarter ended September 30, 2025.

 

"Our third quarter 2025 financial performance delivered to plan as we continue to balance operational excellence with investments in innovation and growth. As expected, our Engage third quarter profitability was down compared to the prior year. This short-term decline was the result of expenses ahead of our fourth quarter healthcare seasonal ramps and planned investments for future growth. Consequently, our Engage operating margins this quarter do not reflect the momentum we are seeing in the underlying business. Our digital first approach that blends AI and analytics with CX technical expertise and operational excellence continues to resonate in the market with both new and existing clients,” commented Ken Tuchman, chairman and chief executive officer of TTEC. 

 

“In TTEC Engage, we added new significant clients, expanded our existing client relationships with our full portfolio of CX services, and deployed AI in over a hundred programs across numerous customers. In TTEC Digital, we closed many meaningful new clients this quarter and grew our professional services revenue with our AI focused partners. Looking ahead, every organization today faces an immediate mandate to transform. With our end-to-end AI-enabled technology and services platform, we are well-positioned to drive each client's vision forward," Tuchman continued.

 

 

 


 

 

THIRD QUARTER 2025 FINANCIAL HIGHLIGHTS

 

Revenue

 

· Third quarter 2025 GAAP revenue was $519.1 million, a 1.9 percent decrease compared to $529.4 million in the prior year.
· Foreign exchange had a $2.2 million positive impact on revenue in the third quarter of 2025.

 

Income from Operations

 

· Third quarter 2025 GAAP income from operations was $12.3 million, or 2.4 percent of revenue, compared to income from operations of $12.9 million, or 2.4 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 $28.9 million, or 5.6 percent of revenue, compared to $34.1 million, or 6.4 percent of revenue in the prior year.
· Foreign exchange had a nominal impact on Non-GAAP income from operations in the third quarter of 2025.

 

Adjusted EBITDA

 

· Third quarter 2025 Non-GAAP Adjusted EBITDA was $43.4 million, or 8.4 percent of revenue, compared to $50.3 million, or 9.5 percent of revenue in the prior year.

 

Earnings Per Share

 

· Third quarter 2025 GAAP fully diluted net loss per share was $0.23 compared to net loss per share of $0.40 in the prior year.
· Non-GAAP fully diluted earnings per share was $0.12 compared to $0.11 in the prior year.

 

CASH FLOW AND BALANCE SHEET

 

· Cash flow from operations in the third quarter of 2025 was $4.2 million compared to a negative $91.4 million for the third quarter of 2024.

 

· Free cash flow in the third quarter of 2025 was a negative $9.6 million compared to a negative $100.2 million for the third quarter of 2024.

 

· Capital expenditures in the third quarter of 2025 were $13.8 million compared to $8.8 million for the third quarter of 2024.

 

 

 


 

 

· As of September 30, 2025, TTEC had cash and cash equivalents of $73.5 million and debt of $886.0 million, resulting in a net debt position of $812.5 million. This compares to a net debt position of $931.5 million for the same period 2024.

 

· On November 5, 2025, TTEC extended the term of its Credit Facility through November 23, 2027. For further details about our Credit Facility and its terms, please refer our disclosure in our quarterly report on Form 10-Q.

 

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

· Third quarter 2025 GAAP revenue for TTEC Digital was $121.9 million, an increase of 5.4 percent compared to $115.7 million for the year ago period.
· Income from operations was $4.9 million or 4.0 percent of revenue compared to $7.5 million or 6.5 percent of revenue in the prior year.
· Non-GAAP income from operations was $11.6 million, or 9.5 percent of revenue compared to non-GAAP operating income of $14.4 million or 12.5 percent of revenue in the prior year.

 

TTEC Engage – Technology-enabled customer care, acquisition, and fraud mitigation services

· Third quarter 2025 GAAP revenue for TTEC Engage was $397.2 million, a 4.0 percent decrease from $413.8 million for the year ago period.
· Income from operations was $7.5 million or 1.9 percent of revenue compared to $5.4 million or 1.3 percent of revenue in the prior year.
· Non-GAAP income from operations was $17.3 million, or 4.3 percent of revenue, compared to non-GAAP operating income of $19.7 million, or 4.8 percent of revenue in the prior year.
· Foreign exchange had a $2.1 million positive impact on revenue and a nominal impact on income from operations in the third quarter of 2025.

 

 

 


 

 

BUSINESS OUTLOOK

 

“Although our third quarter results reflect a decline in profitability compared to the prior year, they were in line with our expectations. In TTEC Digital, we continue to diversify and scale with our CX technology partners as the market shifts from legacy infrastructure to enterprise-wide digital transformations in the cloud. We are pleased with the growth from our new partnerships, recognizing the remix is creating temporary pressure on the segment’s revenue and profit margins. In TTEC Engage, the profitability decline was expected as we incurred up-front expenses to grow key clients and ramp for higher fourth quarter healthcare seasonality. We are confident the Engage fourth quarter profitability will deliver year over year growth both in the quarter and for the second half of the year,” commented Kenny Wagers, chief financial officer of TTEC.

 

 

 


 

 

TTEC Full Year 2025 Outlook

 

  Full Year 2025   Full Year 2025
  Guidance   Mid-Point
Revenue $2,064M — $2,114M   $2,089M
Non-GAAP adjusted EBITDA $215M — $235M   $225M
Non-GAAP adjusted EBITDA margins 10.4% — 11.1%   10.8%
Non-GAAP operating income $154M — $174M   $164M
Non-GAAP operating income margins 7.4% — 8.2%   7.8%
Interest expense, net ($72M) — ($74M)   ($73M)
Non-GAAP adjusted tax rate 40% — 44%   42%
Diluted share count 48.1M — 48.5M   48.3M
Non-GAAP earnings per a share $0.95 — $1.20   $1.08

 

Engage Full Year 2025 Outlook

 

  Full Year 2025   Full Year 2025
  Guidance   Mid-Point
Revenue $1,606M — $1,636M   $1,621M
Non-GAAP adjusted EBITDA $151M — $163M   $157M
Non-GAAP adjusted EBITDA margins 9.4% — 10.0%   9.7%
Non-GAAP operating income $101M — $113M   $107M
Non-GAAP operating income margins 6.3% — 6.9%   6.6%

 

Digital Full Year 2025 Outlook      

 

  Full Year 2025   Full Year 2025
  Guidance   Mid-Point
Revenue $458M — $478M   $468M
Non-GAAP adjusted EBITDA $64M — $72M   $68M
Non-GAAP adjusted EBITDA margins 13.9% — 15.0%   14.5%
Non-GAAP operating income $53M — $61M   $57M
Non-GAAP operating income margins 11.5% — 12.7%   12.1%

  

 

 


 

 

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, November 7, 2025. 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, 2024 and any subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”) which are available on TTEC’s website www.ttec.com, and on the SEC's public website at www.sec.gov.

 

Our forward-looking statements speak only as of the date that this release is issued. We undertake no obligation to update them, except as may be required by applicable law. Although we believe that our forward-looking statements are reasonable, they depend on many factors outside of our control and we can provide no assurance that they will prove to be correct.

 

 

 


 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)

 

    Three months ended     Nine months ended  
    September 30,     September 30,  
    2025     2024     2025     2024  
                         
Revenue   $ 519,143     $ 529,427     $ 1,566,942     $ 1,640,150  
                                 
Operating Expenses:                                
Cost of services     413,635       415,226       1,227,455       1,286,934  
Selling, general and administrative     68,941       71,580       209,632       219,881  
Depreciation and amortization     22,026       24,042       67,612       74,258  
Restructuring charges, net     1,771       1,002       4,883       6,346  
Impairment losses     441       4,688       1,966       241,544  
Total operating expenses     506,814       516,538       1,511,548       1,828,963  
                                 
Income / (Loss) From Operations     12,329       12,889       55,394       (188,813 )
                                 
Other income (expense), net     (12,278 )     (22,462 )     (39,218 )     (60,573 )
                                 
Income / (Loss) Before Income Taxes     51       (9,573 )     16,176       (249,386 )
                                 
Provision for income taxes     (11,117 )     (9,395 )     (30,720 )     (65,850 )
                                 
Net Income / (Loss)     (11,066 )     (18,968 )     (14,544 )     (315,236 )
                                 
Net (loss) / income attributable to noncontrolling interest     (2,305 )     (2,154 )     (5,430 )     (7,730 )
                                 
Net Income / (Loss) Attributable to TTEC Stockholders   $ (13,371 )   $ (21,122 )   $ (19,974 )   $ (322,966 )
                                 
                                 
Net Income / (Loss) Per Share                                
                                 
Basic   $ (0.23 )   $ (0.40 )   $ (0.30 )   $ (6.63 )
                                 
Diluted   $ (0.23 )   $ (0.40 )   $ (0.30 )   $ (6.63 )
                                 
Net Income / (Loss) Per Share Attributable to TTEC Stockholders                                
                                 
Basic   $ (0.28 )   $ (0.44 )   $ (0.42 )   $ (6.79 )
                                 
Diluted   $ (0.28 )   $ (0.44 )   $ (0.42 )   $ (6.79 )
                                 
                                 
Income / (Loss) From Operations Margin     2.4%       2.4%       3.5%       (11.5)%  
Net Income / (Loss) Margin     (2.1)%       (3.6)%       (0.9)%       (19.2)%  
Net Income / (Loss) Attributable to TTEC Stockholders Margin     (2.6)%       (4.0)%       (1.3)%       (19.7)%  
Effective Tax Rate     21798.0%       (98.1)%       189.9%       (26.4)%  
                                 
                                 
Weighted Average Shares Outstanding                                
Basic     48,460       47,723       48,098       47,573  
Diluted     48,460       47,723       48,098       47,573  

 

 


 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
(unaudited)
                 

 

    Three months ended     Nine months ended  
    September 30,     September 30,  
    2025     2024     2025     2024  
                         
Revenue:                                
TTEC Digital   $ 121,916     $ 115,669     $ 343,702     $ 344,068  
TTEC Engage     397,227       413,758       1,223,240       1,296,082  
Total   $ 519,143     $ 529,427     $ 1,566,942     $ 1,640,150  
                                 
Income / (Loss) From Operations                                
TTEC Digital   $ 4,859     $ 7,474     $ 22,132     $ 16,771  
TTEC Engage     7,470       5,415       33,262       (205,584 )
Total   $ 12,329     $ 12,889     $ 55,394     $ (188,813 )

 

 


 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
         

    September 30,     December 31,  
    2025     2024  
             
ASSETS                
Current assets:                
Cash and cash equivalents   $ 73,508     $ 84,991  
Accounts receivable, net     424,454       452,573  
Prepaids and other current assets     110,393       92,947  
Income and other tax receivables     27,264       21,785  
Total current assets     635,619       652,296  
                 
Property and equipment, net     116,803       132,051  
Operating lease assets     90,888       91,263  
Goodwill     573,790       571,197  
Other intangibles assets, net     141,451       164,808  
Income and other tax receivables, long-term     12,770       31,781  
Other assets     110,327       109,984  
                 
Total assets   $ 1,681,648     $ 1,753,380  
                 
LIABILITIES AND EQUITY                
Current liabilities:                
Accounts payable   $ 78,067     $ 84,180  
Accrued employee compensation and benefits     131,913       137,636  
Deferred revenue     69,400       64,752  
Current operating lease liabilities     34,178       33,358  
Other current liabilities     49,581       34,010  
Total current liabilities     363,139       353,936  
                 
Long-term liabilities:                
Line of credit     882,500       975,000  
Non-current operating lease liabilities     66,832       71,008  
Other long-term liabilities     88,371       85,317  
Total long-term liabilities     1,037,703       1,131,325  
                 
                 
Equity:                
Common stock     485       477  
Additional paid in capital     429,350       420,181  
Treasury stock     (584,900 )     (584,900 )
Accumulated other comprehensive income (loss)     (108,183 )     (132,121 )
Retained earnings     526,643       546,617  
Noncontrolling interest     17,411       17,865  
Total equity     280,806       268,119  
                 
Total liabilities and equity   $ 1,681,648     $ 1,753,380  

 

 


 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
       

 

    Nine Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2025     2024  
             
Cash flows from operating activities:                
Net (loss) income   $ (14,544 )   $ (315,236 )
Adjustment to reconcile net (loss) income to net cash provided by operating activities :                
Depreciation and amortization     67,612       74,258  
Amortization of contract acquisition costs     1,047       1,363  
Amortization of debt issuance costs     1,587       1,578  
Imputed interest expense and fair value adjustments to contingent consideration     -       (1,496 )
Provision for credit losses     700       2,744  
Loss on disposal of assets     904       1,778  
Impairment losses     1,966       241,544  
Loss on dissolution of subsidiary     -       -  
Deferred income taxes     (1,846 )     38,922  
Excess tax benefit from equity-based awards     1,861       3,921  
Equity-based compensation expense     10,378       15,249  
Loss / (gain) on foreign currency derivatives     (331 )     244  
Changes in assets and liabilities, net of acquisitions:                
Accounts receivable     32,893       (37,497 )
Prepaids and other assets     21,166       (12,959 )
Accounts payable and accrued expenses     16,456       (49,122 )
Deferred revenue and other liabilities     (21,344 )     (23,023 )
Net cash provided by operating activities     118,505       (57,732 )
                 
Cash flows from investing activities:                
Proceeds from sale of property, plant and equipment     4,476       146  
Purchases of property, plant and equipment     (26,381 )     (36,465 )
Net cash used in investing activities     (21,905 )     (36,319 )
                 
Cash flows from financing activities:                
Net proceeds from / (repayments of) line of credit     (92,500 )     30,000  
Payments on other debt     (1,770 )     (1,873 )
Dividends paid to shareholders     -       (2,847 )
Payments to noncontrolling interest     (6,396 )     (6,908 )
Tax payments related to the issuance of restricted stock units     (1,201 )     (945 )
Payments of debt issuance costs     (1,031 )     (2,635 )
Net cash used in financing activities     (102,898 )     14,792  
                 
Effect of exchange rate changes on cash and cash equivalents and restricted cash     (5,185 )     2,283  
                 
(Decrease) in cash, cash equivalents and restricted cash     (11,483 )     (76,976 )
Cash, cash equivalents and restricted cash, beginning of period     84,991       173,905  
Cash, cash equivalents and restricted cash, end of period   $ 73,508     $ 96,929  

 

 


 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
(unaudited)
                       

    Three months ended     Nine months ended  
    September 30,     September 30,  
    2025     2024     2025     2024  
                         
Revenue   $ 519,143     $ 529,427     $ 1,566,942     $ 1,640,150  
                                 
Reconciliation of Non-GAAP Income from Operations and EBITDA:                                
                                 
Net Income / (Loss) from Operations   $ 12,329     $ 12,889     $ 55,394     $ (188,813 )
Restructuring charges, net     1,771       1,002       4,883       6,346  
Impairment losses     441       4,688       1,966       241,544  
Property costs not related to operations     -       424       (46 )     2,329  
Mexico VAT consulting fees     106       -       926       -  
Liability related to notifications triggered by labor scheme (1)     -       2,563       -       (187 )
Expenses related to non-binding offer     3,426       -       10,445       -  
Equity-based compensation expenses     3,083       4,333       10,384       15,249  
Amortization of purchased intangibles     7,727       8,169       23,215       25,053  
                                 
Non-GAAP Income from Operations   $ 28,883     $ 34,068     $ 107,167     $ 101,521  
                                 
Non-GAAP Income from Operations Margin     5.6%       6.4%       6.8%       6.2%  
                                 
Depreciation and amortization     14,299       15,873       44,397       48,152  
Changes in acquisition contingent consideration     -       (449 )     -       (1,496 )
Gain on property sale     -       -       (629 )     -  
Mexico VAT Recovery     (1,716 )     -       (8,341 )     -  
Foreign SS Tax Recovery     -       -       -       (853 )
Foreign VAT receivable writeoff     -       -       -       770  
Foreign exchange loss / (gain), net     (1,959 )     1,825       1,818       2,381  
Other Income (expense), net     3,848       (1,041 )     7,141       953  
                                 
Adjusted EBITDA   $ 43,355     $ 50,276     $ 151,553     $ 151,428  
                                 
Adjusted EBITDA Margin     8.4%       9.5%       9.7%       9.2%  
                                 
                                 
Reconciliation of Non-GAAP EPS:                                
                                 
Net Income   $ (11,066 )   $ (18,968 )   $ (14,544 )   $ (315,236 )
Add:Asset impairment and restructuring charges     2,212       5,690       6,849       247,890  
Add:Equity-based compensation expenses     3,083       4,333       10,384       15,249  
Add:Amortization of purchased intangibles     7,727       8,169       23,215       25,053  
Add:Property costs not related to operations     -       424       (46 )     2,329  
Add:Liability related to notifications triggered by labor scheme     -       2,563       -       (187 )
Add:Foreign SS Tax Recovery     -       -       -       (853 )
Add:Foreign VAT receivable writeoff     -       -       -       770  
Add:Changes in acquisition contingent consideration     -       (449 )     -       (1,496 )
Add:Foreign VAT (inclusive of interest)     (1,889 )     -       (14,978 )     -  
Add:Fees related to non-binding offer     3,426       -       10,445       -  
Add:Gain on property sale     -       -       (629 )     -  
Add:Foreign exchange loss / (gain), net     (1,959 )     1,825       1,818       2,381  
Less:Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above     4,324       1,810       7,525       48,752  
                                 
Non-GAAP Net Income   $ 5,858     $ 5,397     $ 30,039     $ 24,652  
                                 
Diluted shares outstanding     48,460       47,723       48,098       47,573  
                                 
Non-GAAP EPS   $ 0.12     $ 0.11     $ 0.62     $ 0.52  
                                 
Reconciliation of Free Cash Flow:                                
                                 
Cash Flow From Operating Activities:                                
Net (loss) / income   $ (11,066 )   $ (18,968 )   $ (14,544 )   $ (315,236 )
Adjustments to reconcile net income to net cash provided by operating activities:                                
Depreciation and amortization     22,026       24,042       67,612       74,258  
Other     (6,756 )     (96,451 )     65,437       183,246  
Net cash provided by operating activities     4,204       (91,377 )     118,505       (57,732 )
                                 
Less - Total Cash Capital Expenditures     13,794       8,783       26,381       36,465  
                                 
Free Cash Flow   $ (9,590 )   $ (100,160 )   $ 92,124     $ (94,197 )

 

(1) -  For further information, please see discussion in the Risk Factors section of the 2024 Form 10-K filed on February 27, 2025.

 

 


 

TTEC HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
(unaudited)

 

Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :                    

    TTEC Engage     TTEC Digital     TTEC Engage     TTEC Digital  
    Q3 25     Q3 24     Q3 25     Q3 24     YTD 25     YTD 24     YTD 25     YTD 24  
                                                 
(Loss) / Income from Operations   $ 7,470     $ 5,414     $ 4,859     $ 7,474     $ 33,262     $ (205,585 )   $ 22,132     $ 16,771  
Restructuring charges, net     1,163       202       608       801       3,342       5,697       1,540       650  
Impairment losses     441       4,255       -       433       1,728       238,600       239       2,944  
Property costs not related to operations     -       424       -       -       (46 )     2,329       -       -  
Mexico VAT Consulting Fees     106       -       -       -       926       -       -       -  
Expenses related to non-binding offer     2,107       -       1,319       -       7,332       -       3,113       -  
Liability related to notifications triggered by labor scheme     -       2,563       -       -       -       (187 )     -       -  
Equity-based compensation expenses     1,903       2,701       1,180       1,632       6,343       9,748       4,041       5,501  
Amortization of purchased intangibles     4,070       4,098       3,657       4,071       12,219       12,306       10,996       12,747  
                                                                 
Non-GAAP Income from Operations   $ 17,260     $ 19,657     $ 11,623     $ 14,411     $ 65,106     $ 62,908     $ 42,061     $ 38,613  
                                                                 
Depreciation and amortization     11,964       12,958       2,335       2,915       36,444       39,849       7,952       8,303  
Changes in acquisition contingent consideration     -       (449 )     -       -       -       (1,496 )     -       -  
Gain on Property Sale     -       -       -       -       (629 )     -       -       -  
Mexico VAT Recovery     (1,716 )     -       -       -       (8,341 )     -       -       -  
Foreign VAT receivable writeoff     -       -       -       -       -       770       -       -  
Foreign SS Tax Recovery     -       -       -       -       -       (853 )     -       -  
Foreign exchange loss / (gain), net     (1,959 )     1,725       -       100       1,610       2,518       209       (138 )
Other Income (expense), net     3,848       (944 )     -       (97 )     7,347       833       (206 )     121  
                                                                 
Adjusted EBITDA   $ 29,397     $ 32,947     $ 13,958     $ 17,329     $ 101,537     $ 104,529     $ 50,016     $ 46,899