TTEC Holdings, Inc.
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
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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, 2026 · Filed Nov 9, 2026
TTEC$1.40+1.1%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001104659-26-093402
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001104659-26-124608
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 94 previous paragraphs and 93 current paragraphs.
50 unchanged; 38 reworded; 5 added; 6 removed; 0 previous and 0 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 (5)
Current report
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025
Current report
The operating income increase was primarily related to lower operating costs, which more than offset the impact of the decrease in revenue. Included in operating income was amortization expense related to acquired intangibles of $12.1 million and $12.2 million for the nine months ended September 30, 2026 and 2025, respectively.
Current report
On November 9, 2026, the Company entered into the Thirteenth Amendment (the "Thirteenth Amendment") to the Credit Agreement, as amended, (the “Credit Agreement”), with the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent. The Thirteenth Amendment, among other matters: extended the maturity of the Credit Agreement from November 23, 2027 to November 23, 2028; reduced the revolving credit facility commitment from $960.0 million to $945.0 million, with scheduled reductions to $915.0 million by October 1, 2027; and set the SOFR credit margin at 4.00% (and the base rate margin at 3.00%) through maturity, in lieu of the increases to 6.25% and 5.25%, respectively, scheduled for November 16, 2026. The Company paid the lenders an extension fee of approximately $2.4 million and agreed to an exit fee of 3.0% of the $945.0 million commitment, with one-third of such exit fee to be paid in January 2028 and the remainder to be paid at maturity. The amount of the exit fee is subject to certain potential reductions if specified commitment reductions are achieved during 2027, including in connection with a sale of the Company's Digital business.
Current report
The Thirteenth Amendment also increased the maximum permitted net leverage ratio to 4.25:1.00 for the quarter ending March 31, 2027, and to 4.00:1.00 for the quarters ending June 30 and September 30, 2027, and extended the 4.00:1.00 maximum net leverage ratio and the 2.00:1.00 minimum interest coverage ratio through the extended maturity date, which we believe provides additional covenant compliance headroom necessary to operate the business. In addition, the Company agreed to certain milestones relating to the potential sale of its Digital business which if not met could result in a further $10.0 million reduction in commitments. The terms of any such sale are subject to the consent of lenders.
Current report
As of September 30, 2026, our net leverage ratio was 3.63:1.00 compared to the maximum permitted net leverage ratio of 4.25:1.00 for the quarter, and we were in compliance with all covenants under the Credit Agreement.
Removed paragraphs (6)
Previous report
Included in the three months ended June 30, 2026 was a $1.0 million gain due to changes in foreign currency rates.
Previous report
Six months ended June 30, 2026 compared to six months ended June 30, 2025
Previous report
The change in operating income (loss) was primarily related to lower revenue which exceeded the benefit of reduced operating expenses. Included in operating income was amortization expense related to acquired intangibles of $8.1 million and $8.1 million for the six months ended June 30, 2026 and 2025, respectively.
Previous report
Included in the six months ended June 30, 2026 was a $1.3 million gain due to change in foreign currency rates.
Previous report
On August 7, 2026, we entered into the Eleventh Amendment to our Credit Agreement, which reduced our revolving credit facility commitment to $975.0 million, increased the SOFR credit margin from 3.00% to 3.25% through September 30, 2026, and from 6.00% to 6.25% thereafter, expanded the collateral and guarantee package (including certain assets of certain foreign subsidiaries and equity interests therein), and imposed additional restrictions on indebtedness, liens, investments, dispositions, acquisitions, and restricted payments. At the same time, the Eleventh Amendment eased certain of our financial covenants, increasing the maximum permitted net leverage ratio to up to 4.25 in fiscal 2026 and up to 4.00 in fiscal 2027 and reducing the minimum required interest coverage ratio to 2.00 in fiscal 2027, which we believe provides additional covenant compliance headroom necessary to operate the business.
Previous report
The Company’s actual net leverage ratio of 3.85 as of June 30, 2026 exceeded the 3.75 maximum net leverage ratio then applicable to the quarter under the Tenth Amendment. To secure compliance with net leverage ratio for the quarter ended June 30, 2026, on July 15, 2026, prior to finalizing our financial statements for the quarter, we obtained a waiver, of the maximum net leverage ratio covenant for the quarter.
Reworded paragraphs (38)
Previous wording
Founded in 1982, TTEC is a global customer experience (“CX”) technology and services outsourcing partner for marquee and disruptive brands and public sector clients. The Company designs, builds, and operates AI-enabled customer experiences across live interaction channels and provides data-driven, AI-enabled 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, 2026, TTEC served approximately 735 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”) technology and services outsourcing partner for marquee and disruptive brands and public sector clients. The Company designs, builds, and operates AI-enabled customer experiences across live interaction channels and provides data-driven, AI-enabled 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, 2026, TTEC served approximately 700 clients across targeted industry verticals including financial services, healthcare, public sector, communications, technology, media, entertainment, travel and hospitality, automotive and retail.
Previous wording
During 2026, the TTEC global operating platform delivered onshore, nearshore, and offshore services in 22 countries on six continents -- the United States, Australia, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Egypt, Germany, Greece, India, Ireland, Malaysia, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Spain, Thailand, and the United Kingdom, with contributions from approximately 44,900 customer care associates, consultants, technologists, and CX professionals.
Current wording
During 2026, the TTEC global operating platform delivered onshore, nearshore, and offshore services in 22 countries on six continents -- the United States, Australia, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Egypt, Germany, Greece, India, Ireland, Malaysia, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Spain, Thailand, and the United Kingdom, with contributions from approximately 48,400 customer care associates, consultants, technologists, and CX professionals.
Previous wording
Our revenue for second quarter 2026 was $455.5 million, of which approximately $104.0 million, or 23%, was generated from our TTEC Digital segment and $351.5 million, or 77%, was generated from our TTEC Engage segment.
Current wording
Our revenue for third quarter 2026 was $492.2 million, of which approximately $122.1 million, or 25%, was generated from our TTEC Digital segment and $370.1 million, or 75%, was generated from our TTEC Engage segment.
Previous wording
In the second quarter of 2026, our revenue decreased $58.1 million, or 11.3%, to $455.5 million over the same period in 2025 including a decrease of $0.3 million, or 0.1%, due to foreign currency fluctuations. The decrease in revenue was comprised of $9.7 million, or 8.5%, decrease for TTEC Digital and a decrease of $48.4 million, or 12.1%, for TTEC Engage.
Current wording
In the third quarter of 2026, our revenue decreased $26.9 million, or 5.2%, to $492.2 million over the same period in 2025 including a decrease of $2.1 million, or 0.4%, due to foreign currency fluctuations. The decrease in revenue was comprised of $27.1 million, or 6.8%, decrease for TTEC Engage offset by an increase of $0.2 million, or 0.2%, for TTEC Digital.
Previous wording
Our second quarter 2026 income (loss) from operations decreased $7.9 million to $11.0 million or 2.4% of revenue, compared to $18.9 million, or 3.7% of revenue in the second quarter of 2025. The TTEC Digital operating margin decreased 3.6% over the same period last year primarily due to lower margins in our recurring and professional services business. The TTEC Engage operating margin decreased 0.7% over the same period last year primarily due to a decline in revenue that exceeded the reduction in operating expenses.
Current wording
Our third quarter 2026 income (loss) from operations increased $11.0 million to $23.3 million or 4.7% of revenue, compared to $12.3 million, or 2.4% of revenue in the third quarter of 2025. TTEC Digital operating income increased 37.6% over the same period last year, and its operating margin increased to 5.5% from 4.0%, primarily due to higher margins in our professional services business. TTEC Engage operating income increased 122.3% over the same period last year, and its operating margin increased to 4.5% from 1.9%, primarily due to resolution of a client dispute related to the waiver of performance penalties previously assessed under a client contract, which contributed approximately $7.4 million to TTEC Engage operating income in the quarter.
Previous wording
Income (loss) from operations in the second quarter of 2026 and 2025 included $4.3 million and $1.9 million, respectively, of restructuring charges and asset impairments.
Current wording
Income (loss) from operations in the third quarter of 2026 and 2025 included $1.8 million and $2.2 million, respectively, of restructuring charges and asset impairments.
Previous wording
Our offshore customer experience centers spanning 13 countries serve clients based in the U.S. and in other countries with 22,000 workstations, representing 83% of our global delivery capability. Revenue for our TTEC Engage segment provided in these offshore locations represented 43% of our revenue for the second quarter of 2026, as compared to 37% of our revenue for the corresponding period in 2025.
Current wording
Our offshore customer experience centers spanning 13 countries serve clients based in the U.S. and in other countries with 22,000 workstations, representing 83% of our global delivery capability. Revenue for our TTEC Engage segment provided in these offshore locations represented 42% of our revenue for the third quarter of 2026, as compared to 39% of our revenue for the corresponding period in 2025.
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, 2026, the total production workstations for our TTEC Engage segment was 26,800 with an overall capacity utilization of 70% versus 71% in the prior year period. The decrease was primarily driven by reduced client forecasts, partially offset by targeted seat reductions in the United States and Philippines along with country exits in Honduras and Rwanda.
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, 2026, the total production workstations for our TTEC Engage segment was 26,600 with an overall capacity utilization of 71% versus 73% in the prior year period. The decrease was primarily driven by reduced client forecasts, partially offset by targeted seat reductions in the United States and Philippines along with a site exit from Brazil.
Previous wording
The Redomestication became effective on May 28, 2026 (the “effective Time”), at which time the Company converted from a corporation organized under the laws of the State of Delaware to a corporation organized under the laws of the State of Texas. In connection with the Redomestication, the Company’s stockholders are subject to the Texas Certificate of Formation and Texas Bylaws in place of the Company’s prior Delaware charter and Bylaws. Certain rights of the Company’s stockholders were changed as a result of the Redomestication, as more fully described in the Company’s Current Report on Form 8-K filed with the SEC on May 27, 2026 and in the Company’s definitive proxy statement on Schedule 14A for the Annual Stockholders Meeting filed with the SEC on April 10, 2026.
Current wording
The Redomestication became effective on May 28, 2026, at which time the Company converted from a corporation organized under the laws of the State of Delaware to a corporation organized under the laws of the State of Texas. In connection with the Redomestication, the Company’s stockholders are subject to the Texas Certificate of Formation and Texas Bylaws in place of the Company’s prior Delaware charter and Bylaws. Certain rights of the Company’s stockholders were changed as a result of the Redomestication, as more fully described in the Company’s Current Report on Form 8-K filed with the SEC on May 27, 2026 and in the Company’s definitive proxy statement on Schedule 14A for the Annual Stockholders Meeting filed with the SEC on April 10, 2026.
Previous wording
The decrease in revenue for the TTEC Digital segment was driven by lower recurring revenue and a one-time asset sale in the prior year period.
Current wording
The increase in revenue for the TTEC Digital segment was driven by higher professional services revenue offset by lower recurring and product revenue.
Previous wording
The operating income decrease was primarily related to lower margins in our recurring and professional services business. Included in operating income was amortization expense related to acquired intangibles of $3.6 million and $3.7 million for the quarters ended June 30, 2026 and 2025, respectively.
Current wording
The operating income increase was primarily related to higher margins in our professional services business. Included in operating income was amortization expense related to acquired intangibles of $3.7 million and $3.7 million for the quarters ended September 30, 2026 and 2025, respectively.
Previous wording
The decrease in revenue for the TTEC Engage segment is primarily due to client attrition and the absence of revenue from a short-term contract that was completed during the prior year period.
Current wording
The decrease in revenue for the TTEC Engage segment is primarily due to client attrition.
Previous wording
TTEC Engage’s operating income decreased as a percentage of revenue was primarily related to lower revenue, which exceeded the benefit of reduced operating expenses. Included in operating income was amortization expense related to acquired intangibles of $4.0 million and $4.1 million for the quarters ended June 30, 2026 and 2025, respectively.
Current wording
The increase in TTEC Engage’s operating income and operating margin was primarily related to resolution of a client dispute related to the waiver of performance penalties previously assessed under a client contract, which contributed approximately $7.4 million. Included in operating income was amortization expense related to acquired intangibles of $4.0 million and $4.1 million for the quarters ended September 30, 2026 and 2025, respectively.
Previous wording
For the three months ended June 30, 2026 interest income decreased to $0.1 million from $3.2 million in the same period in 2025 due to lower interest income on an aged VAT receivable received during the prior year period. Interest expense decreased to $16.7 million during 2026 from $18.2 million during 2025 due to lower utilization and lower rates.
Current wording
For the three months ended September 30, 2026 interest income decreased to $0.1 million from $0.5 million in the same period in 2025 due to higher interest income received on an aged VAT receivable received during the prior year period. Interest expense increased to $17.2 million during 2026 from $16.6 million during 2025 due to higher interest rates offset by lower utilization.
Previous wording
For the three months ended June 30, 2026 Other income (expense), net increased to income of $1.2 million from expense of $0.3 million during the prior year quarter.
Current wording
For the three months ended September 30, 2026 Other income (expense), net decreased to income of $0.5 million from income of $3.8 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
The effective tax rate for the three months ended June 30, 2026 was 195.5%. This compares to an effective tax rate of 288.7% for the comparable period of 2025. The effective tax rate for the three months ended June 30, 2026 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, 2026 was 140.7%. This compares to an effective tax rate of 21,930.3% for the comparable period of 2025. The effective tax rate for the three months ended September 30, 2026 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, 2026 and 2025 (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, 2026 and 2025 (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 lower recurring revenue and one-time on-premise related revenue.
Current wording
The decrease in revenue for the TTEC Digital segment was driven by lower recurring revenue and one-time on-premise related revenue offset by higher professional services revenue.
Previous wording
The operating income decrease is primarily attributable to lower margins in our recurring and professional services revenue. Included in operating income was amortization expense related to acquired intangibles of $7.3 million and $7.3 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
The operating income decrease is primarily attributable to lower margins in our recurring and professional services revenue. Included in operating income was amortization expense related to acquired intangibles of $11.0 million and $11.0 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
The decrease in revenue for the TTEC Engage segment is primarily due to client attrition and the absence of revenue from a short-term contract that was completed during the prior year period.
Current wording
The decrease in revenue for the TTEC Engage segment is primarily due to client attrition and the absence of revenue from a short-term contract that was completed during the prior year.
Previous wording
For the six months ended June 30, 2026 interest income decreased to $0.5 million from $7.8 million in the same period in 2025 due to $7.3 million of interest income on an aged VAT receivable during the six months period ended June 30, 2025. Interest expense decreased to $33.7 million during 2026 from $38.0 million during 2025 due to lower utilization and lower rates.
Current wording
For the nine months ended September 30, 2026 interest income decreased to $0.7 million from $8.3 million in the same period in 2025 due to $7.6 million of interest income on an aged VAT receivable during the nine months period ended September 30, 2025. Interest expense decreased to $50.8 million during 2026 from $54.7 million during 2025 due to lower utilization and lower rates.
Previous wording
For the six months ended June 30, 2026 Other income (expense), net decreased to net income of $1.8 million from net income of $3.3 million during the prior year period.
Current wording
For the nine months ended September 30, 2026 Other income (expense), net decreased to net income of $2.3 million from net income of $7.1 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 an $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, 2026 was 920.4%. This compared to an effective tax rate of 121.6% for the comparable period of 2025. The effective tax rate for the six months ended June 30, 2026 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, 2026 was 521.0%. This compared to an effective tax rate of 189.9% for the comparable period of 2025. The effective tax rate for the nine months ended September 30, 2026 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, 2026, we generated operating cash flows of $78.9 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, 2026, we generated operating cash flows of $115.9 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
We are also in discussions with our lender group regarding a potential extension of the maturity of the Credit Facility beyond 2027. We believe these amended terms, together with the covenant relief described above, will support our liquidity and covenant compliance over the next twelve months.
Current wording
We believe these amended terms, together with the covenant relief described above, will support our liquidity and covenant compliance over the next twelve months.
Previous wording
We manage a centralized global treasury function in the United States with a focus on safeguarding and optimizing the use of our global cash and cash equivalents. Our cash is held in the U.S. in U.S. dollars, and outside of the U.S. in U.S. dollars and foreign currencies. We expect to use our cash to fund working capital, global operations, dividends, acquisitions, and other strategic activities. While there are no assurances, we believe our global cash is well protected given our cash management practices, banking partners and utilization of diversified bank deposit accounts and other high-quality investments.
Current wording
We manage a centralized global treasury function in the United States with a focus on safeguarding and optimizing the use of our global cash and cash equivalents. Our cash is held in the U.S. in U.S. dollars, and outside of the U.S. in U.S. dollars and foreign currencies. We expect to use our cash to fund working capital, global operations, debt service and other activities permitted under the Credit Agreement, which currently restricts dividends, acquisitions, and other restricted payments, subject to limited exceptions. While there are no assurances, we believe our global cash is well protected given our cash management practices, banking partners and utilization of diversified bank deposit accounts and other high-quality investments.
Previous wording
The following discussion highlights our cash flow activities during the six months ended June 30, 2026 and 2025.
Current wording
The following discussion highlights our cash flow activities during the nine months ended September 30, 2026 and 2025.
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 $93.9 million and $82.9 million as of June 30, 2026 and December 31, 2025, 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 $91.1 million and $82.9 million as of September 30, 2026 and December 31, 2025, respectively.
Previous wording
We reinvest our cash flows to grow our client base, expand our infrastructure, invest in research and development, make strategic acquisitions and to pay dividends.
Current wording
We reinvest our cash flows to grow our client base, expand our infrastructure and invest in research and development.
Previous wording
For the six months ended June 30, 2026 and 2025, net cash flows provided by operating activities was $78.9 million and $114.3 million, respectively. The decrease is primarily due to a $21.6 million decrease in net cash income from operations and a $13.8 million decrease in net working capital.
Current wording
For the nine months ended September 30, 2026 and 2025, net cash flows provided by operating activities was $115.9 million and $118.5 million, respectively. The decrease is primarily due to a $10.0 million decrease in net cash income from operations offset by a $7.4 million increase in net working capital.
Previous wording
For the six months ended June 30, 2026 and 2025, net cash flows used in investing activities was $17.6 million and $12.4 million, respectively. The increase was primarily due to a $6.5 million increase in capital expenditures.
Current wording
For the nine months ended September 30, 2026 and 2025, net cash flows used in investing activities was $26.6 million and $21.9 million, respectively. The increase was primarily due to a $3.0 million decrease in proceeds from the sale of long-lived assets and a $1.7 million increase in capital expenditures.
Previous wording
For the six months ended June 30, 2026 and 2025, net cash flows used in financing activities was $51.4 million and $98.9 million, respectively. The change in net cash flows from 2025 to 2026 was primarily due to a $42.5 million net change in the line of credit.
Current wording
For the nine months ended September 30, 2026 and 2025, net cash flows used in financing activities was $82.5 million and $102.9 million, respectively. The change in net cash flows from 2025 to 2026 was primarily due to a $17.5 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) decreased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to a decrease in net working capital and cash from operations. Free cash flow was $59.8 million and $101.7 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Free cash flow (see “Presentation of Non-GAAP Measurements” below for the definition of free cash flow) decreased for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to a decrease in net cash provided by operating activities and an increase in capital expenditures. Free cash flow was $87.8 million and $92.1 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
There were no material changes to the Company’s contractual obligations and future capital requirements outside the normal course of business from the date of our 2025 Form 10-K filing on February 26, 2026 through the filing of this report.
Current wording
Other than the amendments to the Credit Agreement described above, including the scheduled increase in the applicable margins beginning November 16, 2026, there were no material changes to the Company’s contractual obligations and future capital requirements outside the normal course of business from the date of our 2025 Form 10-K filing on February 26, 2026 through the filing of this report.
Previous wording
We expect total capital expenditures in 2026 to be between 1.9% and 2.1% of revenue. Approximately 60% of these expected capital expenditures are to support growth in our business and 40% relate to the maintenance for existing assets. The anticipated level of 2026 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 2026 to be between 1.9% and 2.1% of revenue. Approximately 65% of these expected capital expenditures are to support growth in our business and 35% relate to the maintenance for existing assets. The anticipated level of 2026 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, 2026 and 2025, one of our clients represented more than 10% of our total revenue. Our five largest clients, collectively, accounted for 34.7% and 32.2% of our consolidated revenue for the three months ended June 30, 2026 and 2025, respectively, and 34.0% and 31.3% of our consolidated revenue for the six months ended June 30, 2026 and 2025, respectively. We have had long-term relationships with our top five TTEC Engage clients, ranging from 6 to 26 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, 2026 and 2025, one of our clients represented more than 10% of our total revenue. Our five largest clients, collectively, accounted for 32.2% and 31.8% of our consolidated revenue for the three months ended September 30, 2026 and 2025, respectively, and 33.1% and 31.0% of our consolidated revenue for the nine months ended September 30, 2026 and 2025, respectively. We have had long-term relationships with our top five TTEC Engage clients, ranging from 4 to 27 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.