Teleperformance (TEP) Q3 2025 TU earnings summary

Executive summary

• Achieved 1.5% like-for-like revenue growth in Q3 and 9M 2025, with total revenue at €7,623 million, driven by strong Core Services performance in EMEA, APAC, and improving Americas.

• Core Services grew 3.2% LFL in 9M 2025 and 3.9% in Q3, with double-digit growth in back-office BPO and AI-powered solutions.

• Specialized Services declined 8.7% LFL in 9M 2025, mainly due to the non-renewal of a major visa contract, but adjusted LFL growth was 2.6%.

• Over 400 new AI projects launched in 9M 2025, with more than 150 in Q3, and a Value Creation Office established to drive transformation.

• Strategic transformation initiatives focus on AI adoption, process efficiency, and value creation.

Financial highlights

• Q3 2025 revenue was €2,507 million (+1.5% LFL), with negative currency effects of €225 million in 9M 2025.

• Core Services contributed roughly €200 million in growth, while Specialized Services were negatively impacted by contract loss.

• Consolidation of ZP activities and Agents Only contributed positively to revenue growth.

• Double-digit growth in back-office BPO and AI-powered solutions across regions.

• Application of IAS 29 for hyperinflation in Argentina and Turkey resulted in a -0.1% impact on LFL revenue growth.

Outlook and guidance

• 2025 guidance: group LFL revenue growth between 1%-2%, recurring EBITA margin of 14.7%-15%, and net free cash flow around €900 million, excluding non-recurring items.

• 2028 ambitions: 4–6% organic consolidated yearly revenue growth, recurring EBITA margin of ~15.5%, and cumulative net FCF of ~€3 billion over 2026–28.

• Cautious Q4 outlook due to continued weakness in Specialized Services, macro volatility, and client caution.

• AI transformation and process excellence initiatives are expected to drive future growth and efficiency.