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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on TTEC

TTEC Holdings' recent performance was negatively impacted by its Q3 earnings miss, with quarterly earnings of $0.12 per share, falling short of the Zacks Consensus Estimate of $0.25 per share. This underperformance was a significant deviation from expectations. Despite achieving the Microsoft AI Business Solutions Inner Circle award and multiple workplace awards, the company's earnings disappointment overshadowed these positive developments. The partnership with VoxEQ to deliver real-time voice biometrics also did not offset the earnings miss.

1.c. Company Highlights

2. TTEC's Q3 2025 Earnings: Navigating AI-Driven CX Transformation

TTEC's third-quarter 2025 financial results revealed revenue of $519 million, adjusted EBITDA of $43 million, operating income of $29 million, and EPS of $0.12. The revenue figure was in line with the company's trajectory, while the EPS fell short of estimates at $0.25. The adjusted EBITDA margin stood at approximately 8.3%, indicating the company's ability to maintain profitability amidst a challenging market environment.

Publication Date: Nov -18

📋 Highlights
  • Revenue and Debt Reduction: Q3 revenue reached $519 million, with adjusted EBITDA at $43 million and net debt reduced by $119 million year-over-year.
  • AI-Driven Growth: TTEC implemented 125 AI projects with clients, leveraging 1,700 AI-skilled engineers to optimize CX solutions and target 10-year AI tailwinds.
  • Client Expansion: Added 11 new significant clients in Q3, with 19 large enterprise clients added over 7 quarters, expected to contribute >$50 million in in-year revenue.
  • Segment Performance: Digital segment revenue grew 5.4% to $122 million, while Engage revenue declined 4% to $397 million due to legacy solution transitions.
  • Free Cash Flow and Debt Strategy: Q3 free cash flow was -$10 million (vs. -$100 million prior year), with normalized free cash flow at -$18 million, prioritizing debt reduction and deleveraging.

Segment Performance

The Engage segment's revenue decreased 4% year-over-year to $397 million, with operating income at $17 million. Conversely, the Digital segment's revenue grew 5.4% to $122 million. The Engage backlog stood at $1.66 billion, up 99% from the same period in 2024, indicating a strong pipeline of future revenue. The Digital backlog was $444 million, or 95% of its 2025 revenue guidance, up from 92% last year.

AI-Enabled CX Solutions and Growth Prospects

TTEC is expanding its AI-enabled CX solutions across both business segments, with a focus on nurturing existing client relationships and attracting new ones. The company has approximately 1,700 full-time engineers with AI backgrounds and is working on around 125 AI projects with clients in its digital group. This positions TTEC for long-term growth, as it integrates AI with CCaaS systems and client subsystems.

Valuation and Financial Health

With a P/E Ratio of -7.25 and an EV/EBITDA of 7.52, the market appears to have factored in the challenges TTEC faces. The Net Debt / EBITDA ratio stands at 6.58, indicating a significant debt burden. However, the company has made progress in reducing its net debt position by $119 million year-over-year. The current valuation metrics suggest that the market is pricing in a challenging near-term environment, but the company's efforts to integrate AI and drive CX transformation may yield long-term benefits.

Outlook and Conclusion

TTEC is maintaining its full-year guidance at the lower end of the range due to market shift factors. The company's investments in AI capabilities and its diversified partnerships with hyperscalers position it for future growth. As the company navigates the complexities of AI-driven CX transformation, its financial performance and valuation metrics will be closely watched by investors. With a focus on debt reduction and improving free cash flow, TTEC is working towards achieving its financial goals in the near term.

3. NewsRoom

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TTEC Expands Operations in Egypt Following Global Offshoring Summit Engagement

Nov -26

Source: globenewswire.com

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TTEC Builds Momentum Across Latin America as Leading Retail Banks Turn to the Region for Customer Experience Excellence

Nov -20

Source: globenewswire.com

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Campbell & CO Investment Adviser LLC Invests $262,000 in TeleTech Holdings, Inc. $TTEC

Nov -18

Source: defenseworld.net

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Fast-Forward to 2026: TTEC Reveals the Next Big Shifts in Customer Experience

Nov -10

Source: globenewswire.com

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TTEC Holdings, Inc. (TTEC) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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TTEC Holdings (TTEC) Lags Q3 Earnings Estimates

Nov -07

Source: zacks.com

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TTEC Schedules Third Quarter 2025 Earnings Release and Webcast of Investor Conference Call

Oct -15

Source: prnewswire.com

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TTEC Digital achieves 2025-2026 Microsoft AI Business Solutions Inner Circle award

Sep -25

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.85%)

6. Segments

TTEC Engage

Expected Growth: 12.3%

Growing demand for omnichannel engagement, increasing adoption of cloud-based solutions, and rising need for workforce management and analytics drive the growth of TTEC Engage platform.

TTEC Digital

Expected Growth: 15.1%

Growing demand for digital transformation, increasing adoption of AI and automation, and rising need for human-centered design to enhance customer experience drive the growth of TTEC Digital's customer experience solutions.

7. Detailed Products

Customer Experience as a Service (CXaaS)

TTEC's CXaaS provides a comprehensive suite of customer experience solutions, including customer acquisition, care, and growth services.

Humanify

Humanify is TTEC's cloud-based customer engagement platform, offering omnichannel engagement, workforce management, and analytics.

Digital CX

TTEC's Digital CX solutions provide AI-powered chatbots, virtual assistants, and automation tools to enhance customer self-service and reduce friction.

Workforce Management

TTEC's Workforce Management solutions provide forecasting, scheduling, and performance management capabilities to optimize contact center operations.

Analytics and Insights

TTEC's Analytics and Insights solutions provide real-time data analytics, customer feedback, and sentiment analysis to inform business decisions.

Automation and AI

TTEC's Automation and AI solutions provide robotic process automation, machine learning, and natural language processing to automate tasks and enhance customer experiences.

8. TTEC Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TTEC Holdings, Inc. is medium due to the presence of alternative customer experience solutions. While there are some substitutes available, they may not offer the same level of customization and integration as TTEC's solutions.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of alternative solutions and the high demand for customer experience services. Large customers may have significant negotiating power, which could impact TTEC's pricing and revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers and the lack of differentiation in the market. TTEC has a diverse supplier base, which reduces its dependence on any single supplier.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the customer experience market. New entrants would need to invest heavily in technology, talent, and marketing to compete with established players like TTEC.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the customer experience market. Companies like Convergys, Alorica, and SYKES compete fiercely for market share, which could impact TTEC's pricing, revenue, and market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.36%
Debt Cost 9.20%
Equity Weight 36.64%
Equity Cost 9.20%
WACC 9.20%
Leverage 172.96%

11. Quality Control: TTEC Holdings, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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IBEX

A-Score: 5.0/10

Value: 5.0

Growth: 5.7

Quality: 6.1

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

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Usio

A-Score: 4.0/10

Value: 6.2

Growth: 4.7

Quality: 5.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

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WidePoint

A-Score: 3.8/10

Value: 5.1

Growth: 4.6

Quality: 4.4

Yield: 0.0

Momentum: 7.5

Volatility: 1.3

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Unisys

A-Score: 3.5/10

Value: 9.8

Growth: 2.2

Quality: 4.8

Yield: 0.0

Momentum: 1.0

Volatility: 3.0

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Grid Dynamics

A-Score: 2.9/10

Value: 4.3

Growth: 4.3

Quality: 5.5

Yield: 0.0

Momentum: 0.5

Volatility: 3.0

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TTEC

A-Score: 2.6/10

Value: 8.1

Growth: 1.3

Quality: 2.2

Yield: 2.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.54$

Current Price

3.54$

Potential

-0.00%

Expected Cash-Flows