TTEC Holdings Inc

F:TH1

Quarter softer: TTEC said Q2 was a challenging quarter and results fell short of plan, with revenue of $455 million, adjusted EBITDA of $39 million and EPS of $0.03.

Engage pressure: Engage revenue fell 12.1% to $351 million, hurt by planned client rationalization and a seasonal public-sector engagement, plus extra pressure from a small number of clients in public sector and technology, media and communications.

Digital holding up: Digital revenue fell 8.5% to $104 million, but management said the core business is performing in line with targets and professional services grew 13% year over year excluding legacy CCaaS practices.

Guidance reset: Full-year Engage guidance was lowered, while Digital guidance was reiterated. Management still expects sequential growth in Engage in Q3 and Q4 and second-half growth versus last year.

Strategic review: The board has begun a strategic alternatives review for TTEC Digital, with management saying the timing makes sense given the business momentum and the strong market interest around AI.

Liquidity focus: Cash was $94 million, debt was $861 million and net debt fell to $767 million. The company also secured covenant flexibility with its banks and remains focused on deleveraging.