TTEC (TTEC) investor relations material

Executive summary

• Q3 revenue declined 5.2% YoY to $492.245M; adjusted EBITDA rose to $51.5M, or 10.5% of revenue, and free cash flow was $27.9M.

• GAAP operating income rose to $23.3M from $12.3M, including a one-time $7.4M benefit from waived client performance penalties; net loss narrowed to $5.0M from $13.4M.

• FY2026 guidance was reaffirmed; management cited improving margins, healthy backlog and pipeline momentum into Q4 and 2027.

• Strategic alternatives for Digital are under review, while a November credit amendment extended facility maturity and set sale-process milestones.

Financial highlights

• Q3 revenue was $492.245M versus $519.143M YoY; FX reduced revenue by $2.1M.

• Adjusted EBITDA was $51.5M versus $43.4M; non-GAAP operating income was $37.3M versus $28.9M, and non-GAAP diluted EPS was $0.22 versus $0.12.

• GAAP operating income was $23.293M versus $12.329M; Q3 diluted net loss per share was $0.06 versus $0.23.

• Net loss attributable to stockholders was $5.034M in Q3 and $28.021M for 9M, versus losses of $13.371M and $19.974M in the comparable 2025 periods.

• Q3 operating cash flow was $37.0M versus $4.2M; free cash flow was $27.9M versus negative $9.6M.

Outlook and guidance

• FY2026 revenue guidance is $1.940B–$1.990B, with a $1.965B midpoint; adjusted EBITDA guidance is $205M–$225M, midpoint $215M.

• FY2026 non-GAAP operating income guidance is $145M–$165M, midpoint $155M; margin guidance is 7.5%–8.3%, midpoint 7.9%.

• FY2026 non-GAAP EPS guidance is $0.79–$0.99, midpoint $0.89; adjusted tax-rate midpoint is 49%.

• Engage is expected in the low-to-mid range of adjusted EBITDA and operating income guidance; Digital remains on track with initial guidance.

• Engage revenue decline is expected to level off through H2; management expects Q4 and 2027 improvement, with sequential and YoY margin gains across both segments.