TTEC Holdings, Inc.

What they do

TTEC designs, builds and operates AI-enabled customer experiences across live and digital channels for brands and public sector clients. TTEC Digital provides CX technology consulting, managed services for cloud platforms including AWS, Cisco, Genesys, Google and Microsoft, and proprietary IP. TTEC Engage delivers omnichannel customer care, acquisition, retention, tech support, fraud mitigation and back-office services at scale. As of June 30, 2026, it served approximately 735 clients across 22 countries with about 44,900 employees.

Revenue drivers

• TTEC Engage — Outsourced customer care and managed services delivered onshore, nearshore and offshore. Generated $1,668 million, or 78% of fiscal 2025 revenue, and $351.5 million, or 77% of second quarter 2026 revenue.
• TTEC Digital — CX technology consulting, cloud platform managed services, and proprietary IP. Generated $469 million, or 22% of fiscal 2025 revenue, and $104.0 million, or 23% of second quarter 2026 revenue.
• Offshore delivery — Offshore customer experience centers in 13 countries with 22,000 workstations representing 83% of global delivery capability. These locations produced 43% of second quarter 2026 revenue, up from 37% a year earlier.

Recent performance

Second quarter 2026 revenue fell 11.3% to $455.5 million from $513.6 million a year earlier, with TTEC Digital down 8.5% and TTEC Engage down 12.1%. GAAP income from operations was $11.0 million, or 2.4% of revenue, versus $18.9 million, or 3.7%, in the prior-year quarter. GAAP fully diluted net loss per share was $0.27 compared to a loss of $0.14 a year earlier, and non-GAAP diluted EPS was $0.03 versus $0.22. Cash flow from operations was $51.3 million versus $92.7 million in the prior-year quarter.

Strategy

TTEC is investing in AI-enabled CX technology, data analytics and consulting to modernize its offerings and diversify core customer care services. The company is working with clients to optimize or transition low-margin programs, deploy front-line AI and automation, and simplify its cost structure through best-shore delivery models. On August 10, 2026, the Board authorized management to evaluate strategic alternatives for the TTEC Digital segment, prioritizing transactions that sustain commercial collaboration between the two segments. PJT Partners is serving as independent financial advisor, and no timeline has been set for the review. The company also obtained financial covenant flexibility in the third quarter of 2026.

Risks

• Revenue decline — Second quarter 2026 revenue fell 11.3% year over year, with both segments declining and TTEC Engage down 12.1%.
• Customer concentration and competition — TTEC competes in a highly competitive CX market and depends on large enterprise clients; failure to win and retain work could pressure results.
• Strategic alternatives uncertainty — The review of TTEC Digital may not result in any transaction, and no deadline has been set, creating uncertainty for the segment.
• Margin and cost pressure — GAAP operating margin fell to 2.4% in second quarter 2026 from 3.7% a year earlier, with restructuring and impairment charges of $4.3 million in the quarter.

Outlook

Management updated its full-year 2026 outlook and said second quarter performance fell short of plan. The company remains confident in its path forward, citing sales execution improvements in TTEC Engage and momentum in TTEC Digital across data, AI, observability and security. TTEC Digital is described as on track to hit its revenue and profitability target, and the Board is evaluating strategic alternatives for that segment.