TELUS Digital Reports Q2 2025 Results with 7% Revenue Growth and $699mln Revenue.

TELUS Digital reported Q2 2025 revenue of $699 million, up 7% YoY, driven by growth from existing and new clients. However, the company experienced a net loss of $272 million due to a $224 million non-cash goodwill impairment charge and increased operating expenses. Adjusted EBITDA declined to $94 million from $130 million in the same quarter of the previous year.

TELUS Digital Experience (TELUS Digital or the Company) (NYSE and TSX: TIXT), a leading global technology company specializing in digital customer experiences, reported its second-quarter (Q2) 2025 results on August 1, 2025. The company's revenue grew by 7% year-over-year (YoY) to $699 million, driven primarily by growth in services provided to existing clients, including TELUS and certain social media clients, as well as new clients added since the same period in the prior year [1].

However, the company faced a net loss of $272 million, primarily due to a $224 million non-cash goodwill impairment charge and increased operating expenses. This resulted in a net loss margin of 38.9%, compared to 0.5% in the same quarter of the prior year. Adjusted EBITDA declined to $94 million from $130 million in the same quarter of the previous year [1].

Jason Macdonnell, Acting Chief Executive Officer and Chief Operating Officer, TELUS Digital and President, Customer Experience, attributed the revenue growth to the company's existing client base and the tailwind of generative AI large language models' development. Tobias Dengel, President of TELUS Digital Solutions, highlighted the robust demand for cost optimization and efficiencies from automation, as well as several net new client and expansion opportunities [1].

Gopi Chande, Chief Financial Officer, reiterated the company's full-year outlook for 2025, balancing revenue upside seen year-to-date and the commitment to working through the pressures on profitability margins. The company remains vigilant in protecting its operating margins, which remain pressured due to the overall competitive pricing environment in the industry [1].

TELUS Digital's adjusted net income was $16 million, compared to $46 million in the same quarter of the prior year. Cash provided by operating activities was $63 million, and Free Cash Flow was $33 million, compared to $124 million and $95 million, respectively, in the same quarter of the prior year. The net debt to adjusted EBITDA leverage ratio as of June 30, 2025, was 3.75x, compared to 3.40x as of March 31, 2025, and 3.20x as of December 31, 2024 [1].

TELUS Digital will host a conference call today, August 1, 2025, at 10:30 a.m. (ET) / 7:30 a.m. (PT), where management will review the second-quarter results and answer questions from pre-qualified analysts. A webcast of the conference call will be streamed live on the TELUS Digital Investor Relations website.

References:
[1] https://www.businesswire.com/news/home/20250801634848/en/TELUS-Digital-reports-second-quarter-2025-results-with-incremental-improvement-in-revenue-growth