TTEC Holdings Reports $496.2 Million Revenue in Q1 2026, Down 7.1% Year-Over-Year

TTEC Holdings, Inc. reported a revenue of $496.2 million for the first quarter of 2026, a decrease of 7.1% compared to $534.2 million in the same period of 2025. The decline was attributed to a $31.9 million drop in revenue from the TTEC Engage segment, which accounted for 79.5% of total revenue, and a $6.2 million decrease from the TTEC Digital segment. The company noted that foreign currency fluctuations contributed an increase of $7.8 million to revenue, indicating that the underlying performance was weaker than the headline figures suggest. The net loss attributable to TTEC stockholders was $7.6 million, compared to a net income of $1.4 million in the prior year.

Operating income for the first quarter was $18.5 million, down from $24.2 million in the previous year, reflecting a decrease in operating margins from 4.5% to 3.7%. The TTEC Digital segment experienced a significant drop in operating income, falling to $1.4 million from $5.9 million, primarily due to lower margins in its recurring and professional services business. In contrast, the TTEC Engage segment maintained a stable operating margin of 4.3%, despite a decrease in revenue.

In terms of operational metrics, TTEC's offshore customer experience centers, which serve clients globally, accounted for 40% of revenue in the first quarter, up from 34% in the same period last year. The company reported a total of 26,850 production workstations, a decrease of 2,290 from the previous year, with a capacity utilization rate of 72%. TTEC plans to continue expanding its offshore delivery capabilities while managing its exposure to foreign currency fluctuations through a multi-currency hedging program.

Strategically, TTEC has relocated its principal place of business to Austin, Texas, to better align with its operational goals and access a skilled workforce. The company is also seeking shareholder approval to redomesticate from Delaware to Texas, which it believes will enhance operational flexibility and reduce litigation risks. Looking ahead, TTEC anticipates continued investment in innovation and service offerings to strengthen its market position, although it faces challenges related to client concentration and the need for ongoing capital expenditures. The company expects to generate sufficient cash flow to meet its operational needs over the next 12 months, despite the constraints imposed by its credit facility.