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TTEC Holdings, Inc. (TTEC)
NASDAQ:TTEC
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TTEC Holdings
(NASDAQ:TTEC)
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Rating:50Neutral
Price Target:
$3.00
▼(-7.98% Downside)
Action:ReiteratedDate:03/11/26
The score is held back primarily by weak financial performance (ongoing profitability issues, high leverage, and significant equity erosion). Earnings-call outlook provides partial support via guided margin/EBITDA improvement and deleveraging, but top-line guidance remains negative and Digital headwinds persist. Technicals and valuation are neutral-to-weak given negative MACD, mixed moving averages, and a negative P/E.
Positive Factors
Engage retention & backlog
High retention (95%) and a sizable Engage backlog ($1.48B) provide durable revenue visibility and reduce churn-driven volatility. This sticky services base supports stable cash flows and allows operational leverage as margin improvement continues, making core outsourcing revenues more predictable over months.
Cash flow & margin improvement
A material FCF turnaround and rising adjusted EBITDA show improving cash conversion and operating discipline. Positive free cash flow and deleveraging enhance financial flexibility to fund AI investments, reduce debt over time, and sustain margin expansion even if top-line growth is muted.
Strategic AI investments & Fin-TTEC
Launching a fintech practice and accelerating AI adoption are structural moves to broaden addressable market and raise higher-value consulting/managed-services mix. These initiatives can increase differentiation, improve long-term revenue mix toward higher-margin digital services, and deepen client stickiness.
Negative Factors
High leverage & equity erosion
Material equity erosion and elevated leverage reduce financial flexibility and raise refinancing risk. A thin equity base magnifies earnings volatility, limits capacity for strategic M&A or investments, and increases sensitivity to interest-rate or cash-flow shocks over the medium term.
Sustained top-line pressure
Ongoing revenue declines and weaker recurring digital sales indicate structural demand or mix challenges. Persistent top-line pressure constrains operating leverage, limits ability to sustain margin gains, and raises the risk that cost rationalizations (offshoring/contract pruning) will permanently reduce scale.
Large goodwill impairment
A significant goodwill write-down in Digital signals impaired long-term expectations for legacy offerings and weaker returns on past investments. This structural hit reflects diminished pricing/pipeline for certain services and may necessitate further restructuring or reinvestment to restore sustainable ROIC.
TTEC Holdings (TTEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$158.32M
Dividend YieldN/A
Average Volume (3M)647.13K
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth-5.70%
EPS Growth94.70%
CountryUS
Employees50,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.47
Shares Outstanding48,565,548
10 Day Avg. Volume897,358
30 Day Avg. Volume647,130
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.83
Price to Sales (P/S)0.08
P/FCF Ratio2.13
Enterprise Value/Market Cap7.19
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit2.56
Enterprise Value/Ebitda-95.33
Forecast
1Y Price Target
$5.00Price Target Upside53.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.21
Revenue Forecast (FY)$2.05B
TTEC Holdings Business Overview & Revenue Model
Company DescriptionTTEC 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.
How the Company Makes MoneyTTEC primarily makes money by providing contracted services to client organizations, typically under multi-month or multi-year agreements that outsource portions of customer interaction operations and related CX functions. A major revenue stream comes from operating contact center and customer engagement programs (e.g., customer care, technical support, sales/retention, back-office support), where fees are commonly tied to service volumes and/or staffing and performance commitments (for example, per-agent/per-hour, per interaction, per transaction, and in some cases outcome- or performance-based incentives/penalties). Another revenue stream comes from CX consulting, implementation, and managed services that support digital transformation (e.g., CX strategy and design, journey/experience design, process and operating model improvements, analytics, and automation), which are typically billed as professional services projects and/or ongoing managed services. The company’s earnings are influenced by client program volumes, seat/agent utilization and labor costs, mix of delivery locations (onshore/nearshore/offshore), service-level performance, and client concentration and renewals/expansions. Specific partnership names and detailed pricing terms are not available in this prompt; therefore: null.
TTEC Holdings Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: the company delivered improved profitability (adjusted EBITDA growth, margin expansion), a meaningful free cash flow turnaround, EPS improvement, and debt reduction while investing in AI, talent, and strategic partnerships. However, those positives were offset by continued top-line pressure (full-year revenue decline and 2026 revenue guidance down ~5%), a sizable $205M noncash goodwill impairment in the Digital reporting unit, Digital recurring revenue/mix challenges, and transitory reliance on product resale. Management expects near-term revenue tradeoffs from offshoring and contract rationalizations but projects continued EBITDA and margin improvement in 2026.Q4-2025 Updates
Positive Updates
Full-Year Financial Results Beat Guidance with EBITDA Growth
Full-year 2025 GAAP revenue roughly $2.14B (exceeded the high end of guidance), adjusted EBITDA $214.0M (+5.6% year-over-year) representing ~10% of revenue (up ~80 bps). Non-GAAP operating income grew to $155M (7.3% of revenue) and full-year EPS improved to $1.10 from $0.71.
Quarterly Improvement — Q4 Margin and EPS Upside
Q4 2025 revenue $570M (vs $567M prior year), adjusted EBITDA $62M (10.9% of revenue vs 9% prior year). Q4 operating income $48M (8.4% of revenue vs 6.2%) and Q4 EPS increased to $0.47 from $0.19.
Significant Free Cash Flow Turnaround and Deleveraging
2025 free cash flow positive $83M versus negative $104M in the prior year (normalized improvement ~$86M). Reduced net borrowings by ~$68M to a net debt position of $825M; cash of $83M and net leverage improved to 3.58x from 3.99x.
Engage Segment — Profitability and Retention Strength
Engage full-year revenue $1.67B (down 4.6%) but operating income rose to $101M (+18.8% year-over-year) with margin expansion of ~120 bps. Q4 Engage operating income increased 62% to $36M (8.1% margin). Last 12-month revenue retention improved to 95% (from 82% prior year). Engage backlog for next 12 months $1.48B (92% of 2026 midpoint guidance).
Digital Segment Growth in Product Resale and Adjacent Services
Digital full-year revenue $469M (+2.2%) driven largely by product resale which nearly doubled (+$24M). Q4 Digital revenue $125M (+9% YoY) with product resale contributing ~$15M. Professional services outside legacy CCaaS offerings grew ~15.8%.
Operational and Strategic Investments
Investments in AI-enabled CX, increased hiring and organizational strengthening (CTO and Digital COO appointments). Earned Great Place to Work certification in 15 countries and emphasized near-term goal of broad AI adoption across client base (management expects near 100% adoption of internal AI tools with clients by year-end 2026).
Positive 2026 Profitability Outlook
2026 midpoint guidance anticipates GAAP revenue of ~$2.03B (-~5% YoY) but adjusted EBITDA of $230M (+7.6% YoY) and EBITDA margin expansion to ~11.3% (from 10% in 2025). Non-GAAP operating income and EPS guidance also target ~9% growth versus 2025.
Negative Updates
Top-Line Pressure and Year-over-Year Revenue Declines
Consolidated full-year revenue declined ~3.2% YoY to ~$2.14B. Engage revenue down ~4.6% and Digital recurring revenue down (~4% full year). Company expects 2026 GAAP revenue to decline ~5% YoY (guidance midpoint) with Engage revenue ~-4% and Digital revenue ~-8.4% driven by product resale declines and contract rationalizations.
Large Noncash Goodwill Impairment in Digital
Recorded a $193M noncash goodwill impairment for the Digital recurring reporting unit in Q4, plus a $12M related tax adjustment — total noncash charge ~$205M. Management states this is due to shifting industry dynamics away from legacy point solutions.
Digital Recurring Revenue and Mix Headwinds
Excluding product resale, Digital revenue declined ~$14M (-3.2%); recurring revenue fell ~4% for the year. Management noted product resale gains are likely transitory and will diminish over time, signaling potential ongoing top-line pressure for Digital.
Near-Term Revenue Tradeoffs from Offshoring and Rationalizations
Management is intentionally rationalizing underperforming contracts and shifting work offshore to drive margin improvement. These actions are expected to create temporary revenue headwinds, concentrated in the first half of 2026, though intended to improve long-term profitability.
Market Valuation Pressure and Strategic Uncertainty
Company highlighted an 'AI overhang' reducing sector valuations and stated current stock price does not reflect business differentiation; working with advisers on the credit facility and acknowledging external market pressures on valuation and capital flexibility.
High Absolute Debt Level Despite Improvement
Total debt stands at ~$908M against $83M cash; net debt $825M. While net leverage improved to 3.58x, the absolute debt level remains material and management is prioritizing further deleveraging in 2026.
Loss of Large Public Sector Client and Other Client-Level Impacts
Engage experienced a decline in the public sector portfolio due to the loss of a large, previously disclosed client which reduced revenue; management indicated several underperforming contracts are being optimized or wound down.
Company Guidance
TTEC’s 2026 guidance calls for GAAP revenue of $2.03B (≈‑5% YoY) with adjusted EBITDA of $230M (≈+7.6% YoY; 11.3% of revenue), non‑GAAP operating income of $169M (≈+9%; 8.3% margin) and non‑GAAP EPS of $1.19 (≈+9%); capital expenditures are guided at 1–2% of revenue (≈60% growth‑oriented), the full‑year effective tax rate is expected at 38–42%, and ~52% of revenue is anticipated in H2. At the segment level management expects Engage revenue to decline ~4% (Engage backlog $1.48B, or 92% of 2026 midpoint) with continued margin expansion, and Digital revenue to decline ~8.4% (Digital backlog $287M, or 67% of midpoint) as product resale and legacy recurring services normalize. Management also reiterated plans to grow EBITDA while continuing deleveraging (2025 free cash flow $83M; year‑end cash $83M; debt $908M; net debt $825M; net leverage 3.58x) and to drive near‑100% AI adoption across clients by year‑end 2026.TTEC Holdings Financial Statement Overview
Summary
Financials remain weak despite a TTM revenue rebound: profitability is still poor (loss-making/very weak margins), equity has eroded materially, and leverage is elevated. Free cash flow improved to positive in TTM, but operating cash flow weakness and volatility keep the risk profile high.Income Statement
TTM (Trailing-Twelve-Months) revenue rebounded (+11.8%), but profitability remains very weak: net losses persist (TTM net margin -0.8%; 2024 net margin -14.5%) and operating results are still negative (2024 operating losses; TTM still loss-making). The longer-term trend shows a sharp deterioration from solid profits in 2020–2022 to near-breakeven in 2023 and large losses in 2024, indicating execution and cost pressure risk despite the recent revenue uptick.28
Negative
Balance Sheet
Leverage is high and rising as equity has eroded: debt-to-equity is elevated in TTM (~3.7x) and was even higher in 2024 (~4.3x) versus ~1.2–1.9x in 2020–2023. Equity has compressed materially (TTM ~$113M vs. ~$599M in 2023), which reduces financial flexibility and increases refinancing/credit risk. Returns on equity are negative in TTM and 2024, reflecting that losses are being borne by a thinner equity base.22
Negative
Cash Flow
Cash generation is mixed. Free cash flow turned positive in TTM (~$29M) after being negative in 2024 (~-$104M), but it is down sharply versus the prior period (TTM free cash flow growth -70%). Operating cash flow is reported at $0 in TTM (after negative in 2024 and positive historically), which raises questions about near-term cash conversion stability even as free cash flow improved.30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.14B | 2.21B | 2.46B | 2.44B | 2.27B |
| Gross Profit | 375.54M | 471.72M | 529.94M | 587.19M | 568.95M |
| EBITDA | -8.77M | -54.25M | 220.32M | 301.21M | 316.97M |
| Net Income | -192.47M | -320.96M | 8.43M | 103.24M | 140.97M |
Balance Sheet | |||||
| Total Assets | 1.50B | 1.75B | 2.19B | 2.15B | 2.00B |
| Cash, Cash Equivalents and Short-Term Investments | 82.90M | 84.99M | 172.75M | 153.44M | 158.21M |
| Total Debt | 1.00B | 1.08B | 1.13B | 1.06B | 899.88M |
| Total Liabilities | 1.39B | 1.49B | 1.57B | 1.52B | 1.40B |
| Stockholders Equity | 95.07M | 250.25M | 598.63M | 559.91M | 522.21M |
Cash Flow | |||||
| Free Cash Flow | 81.53M | -103.99M | 76.93M | 53.04M | 190.94M |
| Operating Cash Flow | 119.64M | -58.82M | 144.76M | 137.05M | 251.30M |
| Investing Cash Flow | -41.82M | 477.00K | -67.58M | -226.20M | -541.98M |
| Financing Cash Flow | -73.67M | -38.30M | -68.23M | 89.04M | 319.64M |
TTEC Holdings Technical Analysis
Positive
3.26
Price Trends
2.91
Positive
3.13
Positive
3.68
Negative
Market Momentum
0.04
Negative
62.22
Neutral
75.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTEC, the sentiment is Positive. The current price of 3.26 is above the 20-day moving average (MA) of 2.47, above the 50-day MA of 2.91, and below the 200-day MA of 3.68, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.22 is Neutral, neither overbought nor oversold. The STOCH value of 75.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTEC.
TTEC Holdings Risk Analysis
TTEC Holdings disclosed 48 risk factors in its most recent earnings report. TTEC Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TTEC Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.85B | 29.41 | 9.26% | 2.05% | 5.92% | -2.98% | |
73 Outperform | $6.50B | 14.72 | 21.81% | 1.41% | 7.40% | -14.45% | |
70 Outperform | $7.42B | 30.32 | 10.27% | ― | 14.26% | -15.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $158.32M | ― | -85.51% | ― | -5.70% | 94.70% | |
49 Neutral | $1.96B | -1.80 | -33.22% | 3.38% | 3.40% | 53.13% |
* Technology Sector Average
TTEC
TTEC Holdings
3.26
-0.26
-7.39%
DLB
Dolby Laboratories
61.19
-19.38
-24.05%
EPAM
Epam Systems
137.05
-49.17
-26.40%
G
Genpact
38.28
-11.27
-22.74%
CNXC
Concentrix
31.96
-13.05
-28.99%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.