William Blair Maintains Buy Rating on TTEC Holdings Despite Q2 Revenue Decline

William Blair analyst Maggie Nolan maintained a Buy rating on TTEC Holdings, citing the company's solid growth, particularly in its Engage segment, despite a 3.8% YoY revenue decrease. Nolan noted the company's cost optimization strategies and raised full-year revenue outlook to $2.06-$2.11 billion. TTEC provides customer experience technology and services using artificial intelligence.

TTEC Holdings Inc. (NASDAQ: TTEC), a leading global customer experience (CX) technology and services provider, released its second-quarter (Q2) 2025 financial results on August 7, 2025. The company reported a 3.8% year-over-year (YoY) decrease in revenue to $513.6 million, marking a challenging quarter for the Austin, Texas-based firm. However, TTEC's results were bolstered by cost optimization strategies and the integration of artificial intelligence (AI) across its operations.

Revenue and Earnings Highlights

- Revenue: GAAP revenue for Q2 2025 was $513.6 million, down 3.8% from the prior year's $534.1 million. Foreign exchange had a positive impact of $2.4 million on revenue in the second quarter of 2025.
- Income from Operations: GAAP income from operations was $18.9 million, or 3.7% of revenue, compared to a loss from operations of $224.4 million, or a negative 42.0% of revenue in the prior year.
- Adjusted EBITDA: Adjusted EBITDA was $51.8 million, or 10.1% of revenue.
- Net Loss: The company reported a net loss of $6.7 million, or negative 1.3% of revenue.

AI-Driven Transformation and Cost Optimization

TTEC's Q2 results underscore the company's ongoing transformation to AI-driven CX solutions. The company is deploying AI in operational efficiency, client integration, and talent optimization, as highlighted by its Digital segment's 22.8% increase in operating income despite a 2.3% revenue decline. These improvements reflect TTEC's strategic pivot towards higher-margin projects and cost discipline.

Investment Considerations

Maggie Nolan, an analyst at William Blair, maintained a Buy rating on TTEC Holdings, citing the company's solid growth in its Engage segment and raised the full-year revenue outlook to $2.06-$2.11 billion. Nolan noted the company's cost optimization strategies and the potential for AI-driven demand to drive long-term growth.

Risks and Opportunities

While TTEC's deleveraging progress and improved cash flow generation are positive signals, the company's net debt position remains a concern. The company's debt-to-equity ratio of 4.02 and a leverage ratio of 3.39x suggest elevated leverage. Additionally, the transition to AI-driven models may pressure short-term margins, and market volatility could disrupt client spending.

Conclusion

TTEC Holdings is navigating a pivotal juncture, balancing the demands of deleveraging with the long-term promise of AI-driven CX solutions. The company's Q2 results demonstrate that it can execute on its transformation while maintaining financial discipline. Investors should weigh the company's strategic pivot and potential for AI-driven demand against the risks of elevated leverage and market volatility. Those willing to bet on TTEC's ability to navigate the transition may find the stock offers an attractive risk-reward profile.

References

[1] Reuters. (2025). TTEC Holdings Inc. expected to post earnings of 20 cents a share. Retrieved from [https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TX3TR:0-ttec-holdings-inc-expected-to-post-earnings-of-20-cents-a-share-earnings-preview/](https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TX3TR:0-ttec-holdings-inc-expected-to-post-earnings-of-20-cents-a-share-earnings-preview/)

[2] AInvest. (2025). TTEC Holdings navigating AI-driven CX transformation. Retrieved from [https://www.ainvest.com/news/ttec-holdings-navigating-ai-driven-cx-transformation-earnings-resilience-2508/](https://www.ainvest.com/news/ttec-holdings-navigating-ai-driven-cx-transformation-earnings-resilience-2508/)

[3] PR Newswire. (2025). TTEC announces second-quarter 2025 financial results. Retrieved from [https://www.prnewswire.com/news-releases/ttec-announces-second-quarter-2025-financial-results-302524602.html](https://www.prnewswire.com/news-releases/ttec-announces-second-quarter-2025-financial-results-302524602.html)