TELUS International (Cda) (TIXT) Q2 2025 earnings summary

Executive summary

• Revenue grew 7% year-over-year to $699 million in Q2 2025, driven by existing and new clients, with positive FX impact and a non-recurring favorable contractual adjustment.

• Parent company contributed 26% of year-to-date revenues; AI and data solutions service line showed strong momentum.

• Net loss widened to $272 million from $3 million year-over-year, mainly due to a $224 million non-cash goodwill impairment and higher operating expenses.

• Margin pressures persisted due to competitive pricing, labor inflation, and complex work requirements.

• Focused on operational improvements, service quality, and talent development to drive sustainable growth.

Financial highlights

• Q2 2025 revenue: $699 million (+7% reported, +6% constant currency); YTD revenue: $1,369 million (+5%).

• Q2 net loss: $272 million (net loss margin 38.9%); YTD net loss: $297 million (net loss margin 21.7%).

• Adjusted EBITDA: $94 million in Q2 (13.4% margin), $184 million YTD (13.4% margin), down year-over-year due to higher operating expenses and absence of prior year one-time income.

• Free cash flow for the quarter was $33 million, with a year-over-year decline due to higher expenses, capital expenditures, and FX impacts.

• Adjusted Diluted EPS: $0.06 in Q2, $0.12 YTD.

Outlook and guidance

• Reiterated full-year 2025 outlook: revenue growth of ~2% (constant currency, organic), adjusted EBITDA of ~$400 million, and adjusted diluted EPS of ~$0.32.

• Targeting $67 million in investments and $50 million in efficiency gains for the year.