TTEC Holdings, Inc.
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
TTEC$1.38-6.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001558370-25-010783
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001104659-25-107771
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 86 previous paragraphs and 85 current paragraphs.
49 unchanged; 33 reworded; 2 added; 4 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024
Current report
The Company believes that the Tenth Amendment to the Credit Facility provides additional liquidity and flexibility to support ongoing operations in the short term. The increased pricing, reduced size of the Credit Facility, and more restrictive covenants may limit the Company’s ability to pursue certain strategic initiatives, including acquisitions. Management expects to continue to monitor the credit markets and, starting in 2026, to actively seek alternative credit arrangements designed to provide the Company with greater flexibility. Pending any refinancing of the Credit Facility, management will continue to evaluate the impact of these changes on the Company’s financial position and results of operations.
Removed paragraphs (4)
Previous report
Recent Developments
Previous report
As previously disclosed in the Company’s press release of September 30, 2024, TTEC founder, Chairman and Chief Executive Officer, Kenneth Tuchman sent to the Company’s Board of Directors (the “Board”) the unsolicited, preliminary, non-binding proposal to take the Company private at a proposed purchase price of $6.85 per share, subject to various conditions (“Non-Binding Proposal”). The Board established a special committee consisting of independent directors to evaluate the Non-Binding Proposal. On July 31, 2025, the Board received a letter from Mr. Tuchman, advising that due to market conditions, he has decided not to pursue the Non-Binding Proposal. Mr. Tuchman beneficially owns approximately 58% of the Company’s common stock, as set forth in Amendment No. 4 to Schedule 13D filed with the SEC by Mr. Tuchman and certain entities affiliated with Mr. Tuchman on August 1, 2025.
Previous report
Included in the three months ended June 30, 2024 was a $0.8 million gain related to recovery of a social security tax credit related to 2008-2012.
Previous report
Six months ended June 30, 2025 compared to six months ended June 30, 2024
Reworded paragraphs (33)
Previous wording
Founded in 1982, TTEC is a global customer experience (“CX”) outsourcing partner for marquee and disruptive brands and public sector clients. The Company designs, builds, and operates technology-enabled customer experiences across live interaction channels and provides data-driven digital solutions to help clients improve customer satisfaction and loyalty, increase customer revenue and profitability, and optimize overall cost to serve. As of June 30, 2025, TTEC served approximately 690 clients across targeted industry verticals including financial services, healthcare, public sector, communications, technology, media, entertainment, travel and hospitality, automotive and retail.
Current wording
Founded in 1982, TTEC is a global customer experience (“CX”) outsourcing partner for marquee and disruptive brands and public sector clients. The Company designs, builds, and operates technology-enabled customer experiences across live interaction channels and provides data-driven digital solutions to help clients improve customer satisfaction and loyalty, increase customer revenue and profitability, and optimize overall cost to serve. As of September 30, 2025, TTEC served approximately 660 clients across targeted industry verticals including financial services, healthcare, public sector, communications, technology, media, entertainment, travel and hospitality, automotive and retail.
Previous wording
During 2025, the TTEC global operating platform delivered onshore, nearshore, and offshore services in 22 countries on six continents -- the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Egypt, Germany, Greece, Honduras, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, and the United Kingdom with contributions from approximately 50,000 customer care associates, consultants, technologists, and CX professionals.
Current wording
During 2025, the TTEC global operating platform delivered onshore, nearshore, and offshore services in 22 countries on six continents -- the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Egypt, Germany, Greece, Honduras, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, and the United Kingdom with contributions from approximately 52,000 customer care associates, consultants, technologists, and CX professionals.
Previous wording
Our revenue for second quarter 2025 was $513.6 million, of which approximately $113.7 million, or 22% was generated from our TTEC Digital segment and $399.8 million, or 78%, was generated from our TTEC Engage segment.
Current wording
Our revenue for third quarter 2025 was $519.1 million, of which approximately $121.9 million, or 23% was generated from our TTEC Digital segment and $397.2 million, or 77%, was generated from our TTEC Engage segment.
Previous wording
In the second quarter of 2025, our revenue decreased $20.5 million, or 3.8%, to $513.6 million over the same period in 2024 including an increase of $2.4 million, or 0.4%, due to foreign currency fluctuations. The decrease in revenue was comprised of a $2.6 million, or 2.3%, decrease for TTEC Digital and a decrease of $17.9 million, or 4.3%, for TTEC Engage.
Current wording
In the third quarter of 2025, our revenue decreased $10.3 million, or 1.9%, to $519.1 million over the same period in 2024 including an increase of $2.2 million, or 0.4%, due to foreign currency fluctuations. The decrease in revenue was comprised of a $6.2 million, or 5.4%, increase for TTEC Digital and a decrease of $16.5 million, or 4.0%, for TTEC Engage.
Previous wording
Our second quarter 2025 income (loss) from operations increased $243.3 million to $18.9 million or 3.7% of revenue, compared to $(224.4) million or (42.0)% of revenue in the second quarter of 2024. The increase in operating income margin is due to the Q2 2024 goodwill impairment of $233.5 million and other factors across both segments. The TTEC Digital operating margin increased 4.8% over the same period last year primarily due to the sale of software, lower employee-related costs and improved utilization. The TTEC Engage operating margin increased 57.1% over the same period last year due to lower impairment and restructuring expenses.
Current wording
Our third quarter 2025 income (loss) from operations decreased $0.6 million to $12.3 million or 2.4% of revenue, compared to $12.9 million or 2.4% of revenue in the third quarter of 2024. The TTEC Digital operating margin decreased 2.5% over the same period last year primarily due to lower margins in our recurring business and higher one-time on-premise revenue that yields lower margins. The TTEC Engage operating margin increased 0.6% over the same period last year due to lower impairment expenses.
Previous wording
Income (loss) from operations in the second quarter of 2025 and 2024 included $1.9 million and $241.8 million of restructuring charges and asset impairments, respectively.
Current wording
Income (loss) from operations in the third quarter of 2025 and 2024 included $2.2 million and $5.7 million of restructuring charges and asset impairments, respectively.
Previous wording
Our offshore customer experience centers spanning 15 countries serve clients based in the U.S. and in other countries with 22,938 workstations, representing 83% of our global delivery capability. Revenue for our TTEC Engage segment provided in these offshore locations represented 37% of our revenue for the second quarter of 2025, as compared to 33% of our revenue for the corresponding period in 2024.
Current wording
Our offshore customer experience centers spanning 15 countries serve clients based in the U.S. and in other countries with 22,000 workstations, representing 82% of our global delivery capability. Revenue for our TTEC Engage segment provided in these offshore locations represented 39% of our revenue for the third quarter of 2025, as compared to 35% of our revenue for the corresponding period in 2024.
Previous wording
Our seat utilization is defined as the total number of utilized workstations compared to the total number of available production workstations. As of June 30, 2025, the total production workstations for our TTEC Engage segment was 27,700, a net decrease of 3,300 workstations over the same period last year, with an overall capacity utilization 71% versus 72% in the prior year period, The slight decline was due to reduced client forecasts and ramp up of production seats in offshore geographies, partially offset by seat reductions in the U.S. and Philippines.
Current wording
Our seat utilization is defined as the total number of utilized workstations compared to the total number of available production workstations. As of September 30, 2025, the total production workstations for our TTEC Engage segment was 26,600, a net decrease of 3,600 workstations over the same period last year, with an overall capacity utilization 73% versus 70% in the prior year period, The increase was due to seat reductions in the U.S. and Philippines, partially offset by reduced client forecasts.
Previous wording
The decrease in revenue for the TTEC Digital segment was driven by lower one-time on-premise related revenue.
Current wording
The increase in revenue for the TTEC Digital segment was driven by higher one-time on-premise related revenue.
Previous wording
The operating income increase was primarily related to the sale of software, lower employee related costs, improved utilization and lower impairment expenses. Operating income as a percentage of revenue increased to 10.0% in the second quarter of 2025 as compared to 5.2% in the prior period. Included in operating income was amortization expense related to acquired intangibles of $3.7 million and $4.3 million for the quarters ended June 30, 2025 and 2024, respectively.
Current wording
The operating income decrease was primarily related to lower margins in our recurring business and higher one-time on-premise revenue that yields lower margins. Operating income as a percentage of revenue decreased to 4.0% in the third quarter of 2025 as compared to 6.5% in the prior period. Included in operating income was amortization expense related to acquired intangibles of $3.7 million and $4.1 million for the quarters ended September 30, 2025 and 2024, respectively.
Previous wording
The operating income increase was primarily attributable to the Q2 2024 goodwill impairment of $233.5 million and lower restructuring expenses. Operating income as a percentage of revenue increased to 1.9% in the second quarter of 2025 as compared to (55.2)% in the prior period. Included in operating income was amortization expense related to acquired intangibles of $4.1 million and $4.1 million for the quarters ended June 30, 2025 and 2024, respectively.
Current wording
The operating income increase was primarily attributable to lower impairment expenses. Operating income as a percentage of revenue increased to 1.9% in the third quarter of 2025 as compared to 1.3% in the prior period. Included in operating income was amortization expense related to acquired intangibles of $4.1 million and $4.1 million for the quarters ended September 30, 2025 and 2024, respectively.
Previous wording
For the six months ended June 30, 2025 interest income increased to $7.8 million from $1.4 million in the same period in 2024 due to $7.3 million of interest income on an aged VAT receivable. Interest expense decreased to $38.0 million during 2025 from $41.5 million during 2024 due to the termination of the factoring agreement, lower utilization and lower rates.
Current wording
For the three months ended September 30, 2025 interest income increased to $0.5 million from $0.3 million in the same period in 2024 due to $0.3 million of interest income on an aged VAT receivable. Interest expense decreased to $16.6 million during 2025 from $21.7 million during 2024 due to lower utilization and lower rates.
Previous wording
For the three months ended June 30, 2025 Other income (expense), net decreased to income of $0.3 million from income of $1.8 million during the prior year quarter.
Current wording
For the three months ended September 30, 2025 Other income (expense), net increased to income of $3.8 million from expense of $1.0 million during the prior year quarter.
Previous wording
Included in the three months ended June 30, 2025 was a $2.7 million gain related to a recovery of an aged VAT receivable.
Current wording
Included in the three months ended September 30, 2025 was a $1.7 million gain related to a recovery of an aged VAT receivable.
Previous wording
Included in the six months ended June 30, 2024 was a $1.0 million gain related to the fair value adjustment of a contingent consideration accrual.
Current wording
Included in the three months ended September 30, 2024 was a $0.5 million gain related to the fair value adjustment of a contingent consideration accrual.
Previous wording
The effective tax rate for the three months ended June 30, 2025 was 288.7%. This compares to an effective tax rate of (22.3)% for the comparable period of 2024. The effective tax rate for the three months ended June 30, 2025 is primarily driven by the distribution of income between the U.S. and international tax jurisdictions, earnings in international jurisdictions currently under an income tax holiday, foreign currency gains and losses, and the impact of valuation allowances in the United States and several other jurisdictions.
Current wording
The effective tax rate for the three months ended September 30, 2025 was 21,930.3%. This compares to an effective tax rate of (98.1)% for the comparable period of 2024. The effective tax rate for the three months ended September 30, 2025 is primarily driven by the distribution of income between the U.S. and international tax jurisdictions, earnings in international jurisdictions currently under an income tax holiday, foreign currency gains and losses, and the impact of valuation allowances in the United States and several other jurisdictions.
Previous wording
The tables included in the following sections are presented to facilitate an understanding of Management’s Discussion and Analysis of Financial Condition and Results of Operations and present certain information by segment for the six months ended June 30, 2025 and 2024 (in thousands). All intercompany transactions between the reported segments for the periods presented have been eliminated.
Current wording
The tables included in the following sections are presented to facilitate an understanding of Management’s Discussion and Analysis of Financial Condition and Results of Operations and present certain information by segment for the nine months ended September 30, 2025 and 2024 (in thousands). All intercompany transactions between the reported segments for the periods presented have been eliminated.
Previous wording
The decrease in revenue for the TTEC Digital segment was driven by a slight decrease in both recurring and non-recurring revenue.
Current wording
The slight decrease in revenue for the TTEC Digital segment was driven by lower recurring revenue offset by higher one-time on-premise related revenue.
Previous wording
The operating income increase is primarily attributable to the sale of software, lower employee related costs, improved utilization, and lower impairment expenses. Operating income as a percentage of revenue increased to 7.8% for the six months ended June 30, 2025 as compared to 4.1% in the prior period. Included in operating income was amortization expense related to acquired intangibles of $7.3 million and $8.7 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
The operating income increase is primarily attributable to the sale of software, lower employee related costs, improved utilization, and lower impairment expenses. Operating income as a percentage of revenue increased to 6.4% for the nine months ended September 30, 2025 as compared to 4.9% in the prior period. Included in operating income was amortization expense related to acquired intangibles of $11.0 million and $12.7 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
The operating income (loss) change was primarily attributable to the Q2 2024 goodwill impairment of $233.5 million and lower restructuring expenses. As a result, operating income (loss) as a percentage of revenue increased to 3.1% for the six months ended June 30, 2025 as compared to (23.9)% in the prior period. Included in operating income was amortization expense related to acquired intangibles of $8.1 million and $8.2 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
The operating income (loss) change was primarily attributable to the Q2 2024 goodwill impairment of $233.5 million and lower impairment expenses. As a result, operating income (loss) as a percentage of revenue increased to 2.7% for the nine months ended September 30, 2025 as compared to (15.9)% in the prior period. Included in operating income was amortization expense related to acquired intangibles of $12.2 million and $12.3 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
For the three months ended June 30, 2025 interest income increased to $3.2 million from $0.4 million in the same period in 2024 due to $3.0 million of interest income on an aged VAT receivable. Interest expense decreased to $18.0 million during 2025 from $20.4 million during 2024 due to the termination of the factoring agreement, lower utilization and lower rates.
Current wording
For the nine months ended September 30, 2025 interest income increased to $8.3 million from $1.7 million in the same period in 2024 due to $7.6 million of interest income on an aged VAT receivable. Interest expense decreased to $54.7 million during 2025 from $63.2 million during 2024 due to the termination of the factoring agreement, lower utilization and lower rates.
Previous wording
For the six months ended June 30, 2025 Other income (expense), net increased to net income of $3.3 million from net income of $2.0 million during the prior year period.
Current wording
For the nine months ended September 30, 2025 Other income (expense), net increased to net income of $7.1 million from net income of $1.0 million during the prior year period.
Previous wording
Included in the six months ended June 30, 2025 was a $6.6 million gain related to a recovery of an aged VAT receivable.
Current wording
Included in the nine months ended September 30, 2025 was a $8.3 million gain related to a recovery of an aged VAT receivable.
Previous wording
The effective tax rate for the six months ended June 30, 2025 was 121.6%. This compared to an effective tax rate of (23.5)% for the comparable period of 2024. The effective tax rate for the six months ended June 30, 2025 is primarily driven by the distribution of income between the U.S. and international tax jurisdictions, earnings in international jurisdictions currently under an income tax holiday, foreign currency gains and losses, and the impact of valuation allowances in the United States and several other jurisdictions.
Current wording
The effective tax rate for the nine months ended September 30, 2025 was 189.9%. This compared to an effective tax rate of (26.4)% for the comparable period of 2024. The effective tax rate for the nine months ended September 30, 2025 is primarily driven by the distribution of income between the U.S. and international tax jurisdictions, earnings in international jurisdictions currently under an income tax holiday, foreign currency gains and losses, and the impact of valuation allowances in the United States and several other jurisdictions.
Previous wording
Our principal sources of liquidity are our cash generated from operations, our cash and cash equivalents, and borrowings under our Credit Facility. During the six months ended June 30, 2025, we generated operating cash flows of $114.3 million. We believe that our cash generated from operations, existing cash and cash equivalents, and available credit will be sufficient to meet expected operating and capital expenditure requirements for the next 12 months. However, if our access to capital is restricted or our borrowing costs increase, our operations and financial condition could be adversely impacted.
Current wording
Our principal sources of liquidity are our cash generated from operations, our cash and cash equivalents, and borrowings under our Credit Facility. During the nine months ended September 30, 2025, we generated operating cash flows of $118.5 million. We believe that our cash generated from operations, existing cash and cash equivalents, and available credit will be sufficient to meet expected operating and capital expenditure requirements for the next 12 months. However, if our access to capital is restricted or our borrowing costs increase, our operations and financial condition could be adversely impacted.
Previous wording
The following discussion highlights our cash flow activities during the six months ended June 30, 2025 and 2024.
Current wording
The following discussion highlights our cash flow activities during the nine months ended September 30, 2025 and 2024.
Previous wording
We consider all liquid investments purchased within three months of their original maturity to be cash equivalents. Our cash and cash equivalents totaled $82.6 million and $85.0 million as of June 30, 2025 and December 31, 2024, respectively.
Current wording
We consider all liquid investments purchased within three months of their original maturity to be cash equivalents. Our cash and cash equivalents totaled $73.5 million and $85.0 million as of September 30, 2025 and December 31, 2024, respectively.
Previous wording
For the six months ended June 30, 2025 and 2024, net cash flows provided by operating activities was $114.3 million and $33.6 million, respectively. The increase is primarily due to a $68.6 million increase in net working capital and a $12.1 million increase in net cash income from operations.
Current wording
For the nine months ended September 30, 2025 and 2024, net cash flows provided by/(used in) operating activities was $118.5 million and $ (57.7) million, respectively. The increase is primarily due to a $171.8 million increase in net working capital and a $4.4 million increase in net cash income from operations.
Previous wording
For the six months ended June 30, 2025 and 2024, net cash flows used in investing activities was $12.4 million and $27.6 million, respectively. The decrease was due to a $15.1 million decrease in capital expenditures as we rephased our timing of capital expenditures.
Current wording
For the nine months ended September 30, 2025 and 2024, net cash flows used in investing activities was $21.9 million and $36.3 million, respectively. The decrease was due to a $10.1 million decrease in capital expenditures as we rephased our timing of capital expenditures.
Previous wording
For the six months ended June 30, 2025 and 2024, net cash flows used in financing activities was $98.9 million and $75.7 million, respectively. The change in net cash flows from 2024 to 2025 was primarily due to a $27.5 million net change in the line of credit.
Current wording
For the nine months ended September 30, 2025 and 2024, net cash flows provided by/(used in) financing activities was $(102.9) million and $14.8 million, respectively. The change in net cash flows from 2024 to 2025 was primarily due to a $(122.5) million net change in the line of credit.
Previous wording
Free cash flow (see “Presentation of Non-GAAP Measurements” below for the definition of free cash flow) increased for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to an increase in net working capital and cash from operations. Free cash flow was $101.7 million and $6.0 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Free cash flow (see “Presentation of Non-GAAP Measurements” below for the definition of free cash flow) increased for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in net working capital and cash from operations. Free cash flow was $92.1 million and ($94.2) million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
We expect total capital expenditures in 2025 to be between 1.7% and 1.9% of revenue. Approximately 53% of these expected capital expenditures are to support growth in our business and 47% relate to the maintenance for existing assets. The anticipated level of 2025 capital expenditures are primarily driven by facility refreshes and maintenance, site optimizations, IT network modernization and PC refreshes, digital product development and ongoing site expansions/new sites but not at the same level as the prior year.
Current wording
We expect total capital expenditures in 2025 to be between 1.8% and 2.0% of revenue. Approximately 55% of these expected capital expenditures are to support growth in our business and 45% relate to the maintenance for existing assets. The anticipated level of 2025 capital expenditures are primarily driven by facility refreshes and maintenance, site optimizations, IT network modernization and PC refreshes, digital product development and ongoing site expansions/new sites but not at the same level as the prior year.
Previous wording
During the six months ended June 30, 2025 and 2024, one of our clients represented more than 10% of our total revenue. Our five largest clients, collectively, accounted for 32.2% and 31.7% of our consolidated revenue for the three months ended June 30, 2025 and 2024, respectively and 31.3% and 33.8% of our consolidated revenue for the six months ended June 30, 2025 and 2024, respectively. We have had long-term relationships with our top five TTEC Engage clients, ranging from 5 to 25 years, with all of these clients having completed multiple contract renewals with us. The relative contribution of any single client to consolidated earnings is not always proportional to the relative revenue contribution on a consolidated basis and varies greatly based upon specific contract terms. In addition, clients may adjust business volumes served by us based on their business requirements. We believe the risk of this concentration is mitigated, in part, by the long-term contracts we have with our largest clients. Although certain client contracts may be terminated for convenience by either party, we believe this risk is mitigated, in part, by the service level disruptions and transition/migration costs that would arise for our clients if they terminated our contract for convenience.
Current wording
During the nine months ended September 30, 2025 and 2024, one of our clients represented more than 10% of our total revenue. Our five largest clients, collectively, accounted for 31.8% and 31.5% of our consolidated revenue for the three months ended September 30, 2025 and 2024, respectively and 31.0% and 32.6% of our consolidated revenue for the nine months ended September 30, 2025 and 2024, respectively. We have had long-term relationships with our top five TTEC Engage clients, ranging from 6 to 23 years, with all of these clients having completed multiple contract renewals with us. The relative contribution of any single client to consolidated earnings is not always proportional to the relative revenue contribution on a consolidated basis and varies greatly based upon specific contract terms. In addition, clients may adjust business volumes served by us based on their business requirements. We believe the risk of this concentration is mitigated, in part, by the long-term contracts we have with our largest clients. Although certain client contracts may be terminated for convenience by either party, we believe this risk is mitigated, in part, by the service level disruptions and transition/migration costs that would arise for our clients if they terminated our contract for convenience.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Included in the nine months ended September 30, 2024 was a $1.5 million gain related to the fair value adjustment of a contingent consideration accrual.