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TTEC Holdings, Inc. (TTEC)
NASDAQ:TTEC
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TTEC Holdings (TTEC) AI Stock Analysis

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TTEC

TTEC Holdings

(NASDAQ:TTEC)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
$2.50
▲(17.92% Upside)
Action:Reiterated
Date:08/11/26
The score is held down primarily by weak financial performance (sustained losses, declining revenue, and very high leverage with a thin equity cushion). Earnings-call details add near-term risk due to revenue/margin pressure and a reduced Engage outlook, partially offset by positive free cash flow, debt reduction, and Digital business momentum. Technicals are neutral, and valuation lacks support due to negative earnings and no provided dividend yield.
Positive Factors
Improving free cash flow generation
Consistent positive operating cash flow and rising free cash flow provide enduring liquidity to support operations, service debt, and fund strategic investments. While prior years were inconsistent, multi-year FCF improvement increases resilience versus purely loss-driven financing and enables optionality for restructuring or growth.
Negative Factors
Very high leverage and shrinking equity cushion
Extremely high leverage with a dramatically reduced equity base materially limits financial flexibility. This raises covenant, refinancing, and interest‑service risk, reducing the company's ability to invest, absorb further shocks, or pursue strategic transactions without dilutive or restrictive financing alternatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving free cash flow generation
Consistent positive operating cash flow and rising free cash flow provide enduring liquidity to support operations, service debt, and fund strategic investments. While prior years were inconsistent, multi-year FCF improvement increases resilience versus purely loss-driven financing and enables optionality for restructuring or growth.
Read all positive factors

TTEC Holdings (TTEC) vs. SPDR S&P 500 ETF (SPY)

TTEC Holdings Business Overview & Revenue Model

Company Description
TTEC Holdings, Inc. is a global leader in customer experience (CX) technology and services, dedicated to designing, building, and delivering advanced, digitally-enabled customer interactions for brands worldwide. The company operates through two m...
How the Company Makes Money
TTEC primarily makes money by contracting with enterprise clients to deliver outsourced customer experience services and related CX technology and consulting. A major revenue stream comes from operating CX delivery centers and remote-agent program...

TTEC Holdings Earnings Call Summary

Earnings Call Date:Aug 10, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Negative
The call conveyed mixed results: the company delivered positive free cash flow, reduced net debt, maintained positive adjusted EBITDA, and showed clear momentum in its Digital business (backlog growth, professional services growth, and a strategic review to unlock value). However, material top-line pressure (consolidated revenue down 11.3%), margin compression, a sharp drop in EPS driven in part by an elevated tax rate, a significant decline in free cash flow versus prior year, and concentrated client issues in Engage outweigh the positives in the near term. Management outlined credible operational actions (AI/automation, cost structure changes, offshore delivery) and retains visibility via backlog and pipeline, but near-term performance and guidance revisions for Engage reflect meaningful challenges.
Positive Updates
Positive Cash Flow and Debt Reduction
Free cash flow of $39 million in Q2 2026 (positive FCF), year-to-date net debt reduction of $58 million, net debt down roughly $36–37 million year-over-year to a net debt position of ~$767 million, and cash on hand of approximately $94 million. Net leverage was 3.85x and the credit facility amendment provided covenant flexibility and adequate liquidity.
Negative Updates
Significant Revenue Decline
Consolidated revenue of $455 million in Q2 2026 versus $525 million in the prior-year period, a decline of 11.3% year-over-year.
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Q2-2026 Updates
Negative
Positive Cash Flow and Debt Reduction
Free cash flow of $39 million in Q2 2026 (positive FCF), year-to-date net debt reduction of $58 million, net debt down roughly $36–37 million year-over-year to a net debt position of ~$767 million, and cash on hand of approximately $94 million. Net leverage was 3.85x and the credit facility amendment provided covenant flexibility and adequate liquidity.
Read all positive updates
Company Guidance
Management updated 2026 guidance alongside Q2 results: consolidated Q2 revenue was $455M (vs $525M prior year), adjusted EBITDA $39M (8.7% margin), free cash flow $39M, EPS $0.03 (vs $0.22) with a normalized tax rate of 82.8% that reduced EPS by ~$0.08; cash was ~$94M versus $861M debt (net debt ~$767M), a year‑over‑year net debt reduction of roughly $37–58M and net leverage of 3.85x. They revised Engage full‑year outlook downward (backlog $1.5B = 98% of FY guidance midpoint; LTM revenue retention 93%) with an adjusted EBITDA margin at the midpoint of ~10.1% (still ~110 bps better than 2025) and expect sequential Q3/Q4 revenue recovery; Digital reiterated its full‑year guidance (Q2 revenue $104M, down 8.5% or 4.6% ex a $4M 2025 IP sale; operating income $12M/11.7%; backlog $364M = 85% of digital FY midpoint) and the Board has initiated a strategic review of the Digital business. They also highlighted Q2 capex $13M (2.8% of revenue), seasonal and pipeline dynamics (smaller initial deal sizes, longer closes), and lender covenant flexibility that they say preserves liquidity.

TTEC Holdings Financial Statement Overview

Summary
Overall financial quality is weak: revenue is declining and profitability is deeply negative (2026 TTM net margin ~-9.6% with a sizable net loss). Leverage is high with a sharply reduced equity base (debt-to-equity ~9–10x), increasing financial risk. The main offset is positive and improving free cash flow in 2025 and 2026 TTM, but durability is a concern given continued losses and prior cash flow volatility.
Income Statement
22
Negative
Balance Sheet
18
Very Negative
Cash Flow
55
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.04B2.14B2.21B2.46B2.44B2.27B
Gross Profit319.13M466.21M471.72M529.94M587.19M568.95M
EBITDA-87.13M-8.77M-54.25M220.32M301.21M316.97M
Net Income-208.85M-192.47M-320.96M8.43M103.24M140.97M
Balance Sheet
Total Assets781.48M1.50B1.75B2.19B2.15B2.00B
Cash, Cash Equivalents and Short-Term Investments93.87M82.90M84.99M172.75M153.44M158.21M
Total Debt933.37M1.00B1.08B1.13B1.06B899.88M
Total Liabilities965.53M1.39B1.49B1.57B1.52B1.40B
Stockholders Equity90.83M95.07M250.25M598.63M559.91M522.21M
Cash Flow
Free Cash Flow2.25M81.53M-103.99M76.93M53.04M190.94M
Operating Cash Flow34.17M119.64M-58.82M144.76M137.05M251.30M
Investing Cash Flow-27.95M-41.82M477.00K-67.58M-226.20M-541.98M
Financing Cash Flow-788.00K-73.67M-38.30M-68.23M89.04M319.64M

TTEC Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.12
Price Trends
50DMA
2.27
Positive
100DMA
2.50
Negative
200DMA
2.81
Negative
Market Momentum
MACD
0.09
Negative
RSI
48.53
Neutral
STOCH
45.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTEC, the sentiment is Negative. The current price of 2.12 is below the 20-day moving average (MA) of 2.34, below the 50-day MA of 2.27, and below the 200-day MA of 2.81, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 45.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$5.81B10.0422.91%2.29%6.89%11.22%
77
Outperform
$5.79B26.098.68%2.83%0.55%-13.85%
67
Neutral
$5.03B13.1411.19%10.76%4.93%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
$1.57B-1.20-41.80%6.47%3.89%-681.89%
48
Neutral
$124.08M-0.54-156.79%-3.08%37.75%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TTEC
TTEC Holdings
2.33
-1.27
-35.28%
DLB
Dolby Laboratories
62.10
-9.06
-12.73%
EPAM
Epam Systems
97.37
-55.56
-36.33%
G
Genpact
34.13
-8.39
-19.74%
CNXC
Concentrix
25.50
-18.75
-42.37%

TTEC Holdings Corporate Events

Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
TTEC Completes Texas Re-Domestication After Shareholder Approvals
Neutral
May 27, 2026
At its May 21, 2026 annual meeting, TTEC Holdings shareholders elected seven directors to the board, ratified PricewaterhouseCoopers LLP as the independent auditor for 2026, and approved on an advisory basis the compensation of the company’s...
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.Date of analysis: Aug 11, 2026