TTEC Holdings, Inc. released its third‑quarter 2025 financial results on November 6, 2025, reporting total revenue of $519.1 million, a 1.9% decline from the $529.4 million recorded in the same quarter last year. The company posted a non‑GAAP earnings per share of $0.12, falling short of the consensus estimate of $0.25 (or $0.23) by 47.8% to 52.0%. Despite the earnings miss, management reiterated its full‑year 2025 revenue guidance of $2.064 billion to $2.114 billion, maintaining confidence in the company’s growth trajectory.
Revenue was driven by a 5.4% year‑over‑year increase in the Digital segment, which generated $121.9 million, while the Engage segment saw a 4.0% decline to $397.2 million. The Digital growth was fueled by new client wins and expanded professional‑services revenue, whereas the Engage decline reflected higher operating costs associated with healthcare seasonal ramps and strategic investments in future growth.
The EPS miss can be traced to a combination of higher operating expenses and a shift in the revenue mix toward lower‑margin services. Adjusted EBITDA fell to $43.4 million, or 8.4% of revenue, down from 9.5% a year earlier, indicating margin compression. The company’s cost‑control initiatives were insufficient to offset the increased spend required to support its AI‑enabled platform rollout and the expansion of its offshore delivery footprint.
Ken Tuchman, Chairman and CEO, emphasized that the quarter’s results were “delivered to plan” and that the short‑term profitability dip in Engage was a consequence of “expenses ahead of our fourth‑quarter healthcare seasonal ramps and planned investments for future growth.” He added that the company’s “digital‑first approach that blends AI and analytics with CX technical expertise” continues to resonate with clients, supporting the Digital segment’s growth.
CFO Kenny Wagers highlighted confidence in the company’s ability to improve profitability in the coming quarters, stating that “Engage fourth‑quarter profitability will deliver year‑over‑year growth both in the quarter and for the second half of the year.” The guidance for the remainder of the year reflects a cautious outlook on operating margin, while maintaining the revenue target range.
Investors reacted negatively to the earnings release, with the primary driver being the significant EPS miss. The market’s response underscored concerns about short‑term profitability pressures, even as the company’s revenue beat and strategic focus on AI‑enabled solutions signal long‑term growth potential.
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