TTEC Holdings, Inc. reported its fourth‑quarter 2025 results on February 26, 2026, delivering revenue of $570.0 million and a non‑GAAP earnings per share of $0.47. The revenue figure surpassed the consensus estimate of $524.8 million, while the EPS beat the $0.37 estimate by $0.10, a 27% over‑performance that underscores the company’s disciplined cost management and favorable mix of higher‑margin services.
The quarter’s revenue growth of 0.4% year‑over‑year was driven by a 9.2% increase in TTEC Digital revenue, reflecting robust demand for digital transformation and AI‑enabled solutions. In contrast, TTEC Engage revenue fell 1.8% YoY, a decline attributed to a slowdown in legacy contact‑center contracts. Despite the mixed segment performance, the company’s overall revenue remained flat, while the full‑year 2025 revenue fell 3.2% YoY, indicating modest top‑line pressure.
Margin expansion was a key theme for the quarter. Non‑GAAP income from operations for TTEC Engage rose to 8.1% from 4.9% YoY, driven by higher pricing power and improved operational leverage. TTEC Digital’s margin slipped to 9.4% from 11.0% YoY, reflecting the impact of a one‑time goodwill impairment of $205.4 million related to the Digital reporting unit. The goodwill charge was a non‑cash expense and did not affect cash flows or the company’s ability to execute its strategy.
CEO Ken Tuchman highlighted the company’s focus on AI integration and outcome‑based solutions. He stated, "2025 was a year of focused execution across the business with solid results. We expanded our client base, deepened strategic partnerships, and scaled AI integration both internally and for our clients externally, all while strengthening our leadership team, operational agility, and balance sheet." Tuchman added, "Despite the AI overhang impacting valuations for CX and many other industries, our end‑to‑end technology and managed services solutions are more relevant than ever. While many brands are struggling to realize a return on their AI investments due to fragmented data and legacy technology ecosystems, TTEC's deep understanding of the full CX tech stack and complex workflows is enabling us to bridge the gap." He also noted, "Regarding the impairment charge, it was a non‑cash expense with no impact on our broader ability to execute our strategy or the value of our CX technology solutions."
Looking ahead, TTEC guided for full‑year 2026 revenue of $2.005 billion to $2.055 billion, with a midpoint of $2.030 billion. The company also projected non‑GAAP EPS of $1.06 to $1.32, a midpoint of $1.19. While the revenue guidance sits below analyst consensus, the EPS guidance signals confidence in higher‑margin business and an expected expansion of adjusted EBITDA margins to 11.0%–11.7%. The company also reported a reduction in net debt and positive cash flow from operations, reinforcing its balance‑sheet strength.
Investors responded positively to the earnings beat and margin expansion, reflecting confidence in TTEC’s strategic focus on AI and higher‑margin services. The company’s ability to deliver a strong EPS beat, improve profitability, and maintain a solid balance sheet positions it well for the upcoming fiscal year, while the goodwill impairment highlights a one‑time adjustment that does not alter the company’s long‑term execution trajectory.
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