TTEC Holdings, Inc. (TTEC) Market Cap
TTEC Holdings, Inc. has a market capitalization of $157M.
Financials based on reported quarter end 2025-12-31
Price: $3.23
▼ -0.16 (-4.72%)
Market Cap: 157.01M
NASDAQ · time unavailable
CEO: Kenneth D. Tuchman
Sector: Technology
Industry: Information Technology Services
IPO Date: 1996-08-01
Website: https://www.ttec.com
TTEC Holdings, Inc. (TTEC) - Company Information
Market Cap: 157.01M · Sector: Technology
TTEC Holdings, Inc., a customer experience technology and services company, that designs, builds, orchestrates, and delivers digitally enabled customer experiences designed for various brands. It operates in two segments, TTEC Digital and TTEC Engage. The TTEC Digital segments designs, builds, and operates robust digital experiences for clients and their customers through the contextual integration and orchestration of customer relationship management, data, analytics, customer experience as a service technology, and intelligent automation to ensure customer experience (CX) outcomes. The TTEC Engage segment provides digitally enabled CX managed services; delivers omnichannel customer care, tech support, order fulfillment, customer acquisition, growth, and retention services; and delivers digitally enabled back office and industry specific specialty services, such as AI operations, content moderation, and fraud management services. It serves clients in the automotive, communication, financial services, government, healthcare, logistics, media and entertainment, e-tail/retail, technology, transportation, and travel industries with operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Costa Rica, Germany, Greece, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, Singapore, South Africa, Thailand, and the United Kingdom. The company was formerly known as TeleTech Holdings, Inc. and changed its name to TTEC Holdings, Inc. in January 2018. TTEC Holdings, Inc. was founded in 1982 and is headquartered in Englewood, Colorado.
Analyst Sentiment
Based on 14 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 2 sources)
Consensus Price Target
Low
$4
Median
$40
High
$59
Average
$34
Potential Upside: 957.9%
Price & Moving Averages
Related Companies in Technology
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"TTEC reported revenue of $569.96M for the fiscal year ending December 31, 2025, but experienced a net loss of $172.49M, translating to an earnings per share (EPS) of -$3.57. Operating cash flow was negative at -$118.51M, reflecting operational challenges. The company's total assets stood at $1.49B, offset by liabilities of $1.39B, resulting in equity of only $112.90M, indicative of a highly leveraged balance sheet with net debt at $980M. Shareholder returns have been minimal, with dividends totaling $0.06 in the most recent quarter and no significant buyback activity, while stock performance has deteriorated with a 1-year price decline of approximately 29.18%. Despite its annual revenue, TTEC must navigate ongoing profitability issues and negative free cash flow, suggesting a need for strategic pivoting to restore investor confidence."
Revenue Growth
Revenue shows potential but needs growth momentum.
Profitability
Consistent net losses indicate severe profitability issues.
Cash Flow Quality
Negative operating and free cash flow reflects operational distress.
Leverage & Balance Sheet
High debt levels vs. low equity suggest leverage concerns.
Shareholder Returns
Minimal dividends and negative stock performance reduce returns.
Analyst Sentiment & Valuation
Market sentiment is negative, but valuation metrics may invite speculation.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
TTEC’s Q4 and full-year 2025 results show strong profitability progress (adjusted EBITDA margin +80 bps full-year to 10%, and +190 bps in Q4 to 10.9%) alongside sharply improved EPS ($0.47 in Q4; $1.10 full-year). However, the company is simultaneously navigating structural revenue pressure: Engage revenue down 4.6% full-year (with a 2026 -~4% outlook) and Digital revenue shift issues, including product resale dynamics (Digital recurring revenue down 4% full-year) and an explicitly cited 2026 revenue headwind from rationalizing underperforming contracts. GAAP investors were also hit by a $205M noncash Digital goodwill impairment plus tax valuation adjustment. In the Q&A, management’s “near 100% AI adoption” claim was reframed to mean clients adopt TTEC’s AI tools broadly (associate enablement, QA, internal efficiency, plus low-value transaction automation with human-in-the-loop), not necessarily end-user autonomous AI. This is a key mismatch: management is confident on execution, while analysts are pressing for commercial impact (revenue mix/recurring transitions), where the near-term numbers remain pressured.
Growth Catalysts
- Deepening wallet share with largest clients via end-to-end consulting, technology, and managed services
- AI-enabled solutions penetration across the embedded base; integrating AI functionality into every new TTEC Engage and TTEC Digital opportunity
- Vertical-specific solutions and cross-sell in Engage
- Scaling AI/data/automation-driven professional services; growing partnership-driven services (16% outside legacy CCaaS practices)
Business Development
- Global travel and hospitality brand partnership: engagement evolved over four years from legacy contact center end-of-life mitigation to full digital transformation (integrated CCaaS/CRM migration, unified data estate, deployed generative AI for guest personalization)
- Technology partnerships expanding multiphase professional and managed services relationships (referenced generally; no additional named vendors/customers in excerpt)
Financial Highlights
- Q4 2025 revenue: $570.0M vs $567.0M prior year (slight increase).
- Q4 2025 adjusted EBITDA: $62.0M = 10.9% of revenue vs $51.0M = 9.0% (margin +190 bps).
- Q4 2025 operating income: $48.0M = 8.4% vs $35.0M = 6.2% (+220 bps).
- Q4 2025 EPS (non-GAAP): $0.47 vs $0.19 prior year.
- Full-year 2025 revenue: $2.136B exceeding high end of guidance; GAAP revenue down 3.2% to $2.140B vs $2.210B prior year (management cited both $2.136B and $2.140B).
- Full-year 2025 adjusted EBITDA: $214.0M = 10.0% vs $202.0M = 9.2% (+80 bps YoY).
- Full-year 2025 operating income: $155.0M = 7.3% vs $136.0M = 6.2% (+110 bps).
- One-time noncash goodwill impairment: $193.0M impairment charge in Q4 plus $12.0M incremental tax noncash charge; total impairment $205.0M (Digital reporting unit).
- Normalized (non-GAAP) tax rate: 37.1% in 2025 vs 40.9% prior year.
- Q4 FX: +$4.0M revenue and -$1.0M operating income impact vs prior year (primarily Engage).
Capital Funding
- 2025 free cash flow: +$83.0M vs -$104.0M prior year (improvement +$86.0M).
- Credit facility borrowings reduced by $70.0M in 2025.
- Cash at 12/31/2025: $83.0M.
- Debt at 12/31/2025: $908.0M (primarily revolving credit facility).
- Net debt at 12/31/2025: $825.0M (YoY improvement -$68.0M).
- Net leverage ratio: 3.58x (vs 3.99x prior year end).
- Capital expenditures: $38.0M in 2025 (1.8% of revenue; 60% growth-oriented).
Strategy & Ops
- Engage profitability/margin expansion despite revenue decline: cost structure realignment, operating efficiency improvements, and increased offshore revenue mix.
- Underperforming contracts rationalization: management noted a temporary 2026 revenue headwind to secure a healthier client portfolio with superior margins.
- Digital revenue mix pressure: recurring revenue declined 5.6% in Q4; product resale drove Q4 revenue growth (+$15.0M YoY), but management expects product resale opportunities to diminish over time.
- Market shift in Digital: away from traditional CCaaS point solutions toward end-to-end CX transformations optimizing existing platforms.
- Backlog metrics impacting visibility: Engage next 12 months backlog $1.480B (92% of 2026 midpoint guidance; down from 96% in 2025); Digital next 12 months backlog $287.0M (67% of 2026 guidance midpoint; up slightly from 66% prior year).
Market Outlook
- 2026 midpoint guidance: GAAP revenue $2.030B (-5% YoY).
- 2026 midpoint guidance: adjusted EBITDA $230.0M (+7.6% YoY) at 11.3% margin (vs 10.0% in prior year).
- 2026 midpoint guidance: non-GAAP operating income $169.0M (+9% YoY) at 8.3% margin (vs 7.3%).
- 2026 midpoint guidance: non-GAAP EPS $1.19 (+9% YoY).
- 2026 guidance: capex 1%–2% of revenue (~60% growth-oriented).
- 2026 guidance: effective tax rate 38%–42%.
- 2026 seasonality/phasing: ~52% of revenue in the second half of the year.
- Segment expectations (qualitative): Engage revenue decline ~4% in 2026 (concentrated in 1H, flattening later); Digital revenue decline ~8.4% in 2026 driven by lower product resale opportunities; Eng/Offshore shift expected to pressure near-term top line.
Risks & Headwinds
- AI overhang: management cited AI-related valuation pressure across CX/IT/SaaS services and potential impact on lower-value interactions within a cited $400B TAM.
- Execution risk: success depends on balancing rapid AI innovation with operational realities and seamless human-centric delivery.
- Transformation bottleneck: cited Bain study that 88% of transformations fail due to lack of organizational readiness and employee alignment.
- Near-term revenue headwinds by design: (1) rationalization of underperforming Engage contracts and (2) moving/growing Engage revenue offshore; both expected to pressure 2026 revenue despite margin improvement.
- Digital mix risk: product resale is declining/expected to diminish as clients transition to cloud-based CX delivery solutions; recurring revenue pressure noted (Digital recurring revenue -4% full year; -5.6% in Q4).
- Goodwill impairment risk (GAAP optics): Digital recurring reporting unit fair value declined below carrying value, resulting in $205M total noncash impairment + tax valuation allowance impact.
Sentiment: MIXED
Note: This summary was synthesized by AI from the TTEC Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.