We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TTEC Holdings Records $83M FCF in 2025: Analyzing This Strategic Pivot
Read MoreHide Full Article
Key Takeaways
TTEC Holdings posts $83M FCF in 2025, rebounding from $104M cash burn, aided by factoring exit.
TTEC sees $79M rise in operating cash and $7M lower CapEx; cuts borrowings by $70M, net debt to $825.1M.
TTEC leverage hits 3.58X and current ratio 1.89; aims for EBITDA growth, better margins and less debt in 2026.
TTEC Holdings, Inc.’s (TTEC - Free Report) financial performance in 2025 is a solid example of prudent cash management. The company ended 2024 with a cash burn of $104 million. However, it recovered from this drag in 2025, reporting free cash flow of $83 million. The discontinuation of the factoring facility led to this recovery, resulting in a $86-million year-over-year improvement. It was a combined effect of a $79-million surge in cash flow from operations and a $7-million dip in CapEx.
This significant turnaround strengthened the company’s balance sheet, improving liquidity and lowering its net debt position. TTEC generated $83 million in cash flow and reduced credit facility borrowings by $70 million. It resulted in lowering the net debt position to $825.1 million as of the end of December 2025 from $893 million reported at the end of the preceding year.
During the fourth-quarter 2025 earnings call, the CFO of TTEC, Kenneth Wagers, revealed that the company ended 2025 with a net leverage ratio of 3.58X compared with 3.99X at the end of the preceding year. It indicates better financial stability and improved debt payment ability.
TTEC ended 2025 with a current ratio of 1.89, up from the preceding year’s 1.84. It is a clear indication of a strong liquidity position, translating into an efficient short-term debt coverage ability. The company optimized its capital structure and improved its cash management ability, which improved its financial flexibility.
Management stated that it is inclined to continue this performance in 2026 by increasing its EBITDA and operating income, boosting margins and lowering debt. Therefore, the goal is to prioritize sustaining profitability as TTEC navigates ongoing top-line rationalization across its business segments.
The TTEC stock has dipped 7.9% in a year against 46.1% rally in its industry. Its competitors, Genpact (G - Free Report) , fell 19.5%, while Maximus (MMS - Free Report) moved up 5%.
1-Year Stock Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, TTEC trades at a 12-month forward price-to-sales ratio of 0.08X, lower than Genpact’s and Maximus’ 1.13X and 0.68X, respectively.
Price/Sales F12M
Image Source: Zacks Investment Research
TTEC Holdings, Genpact and Maximus carry a Value Score of A.
The Zacks Consensus Estimate for TTEC’s 2026 and 2027 earnings has been flat at $1.2 and $1.33 per share over the past 30 days, respectively.
View the Zacks #1 Rank List
Image: Bigstock
TTEC Holdings Records $83M FCF in 2025: Analyzing This Strategic Pivot
Key Takeaways
TTEC Holdings, Inc.’s (TTEC - Free Report) financial performance in 2025 is a solid example of prudent cash management. The company ended 2024 with a cash burn of $104 million. However, it recovered from this drag in 2025, reporting free cash flow of $83 million. The discontinuation of the factoring facility led to this recovery, resulting in a $86-million year-over-year improvement. It was a combined effect of a $79-million surge in cash flow from operations and a $7-million dip in CapEx.
This significant turnaround strengthened the company’s balance sheet, improving liquidity and lowering its net debt position. TTEC generated $83 million in cash flow and reduced credit facility borrowings by $70 million. It resulted in lowering the net debt position to $825.1 million as of the end of December 2025 from $893 million reported at the end of the preceding year.
During the fourth-quarter 2025 earnings call, the CFO of TTEC, Kenneth Wagers, revealed that the company ended 2025 with a net leverage ratio of 3.58X compared with 3.99X at the end of the preceding year. It indicates better financial stability and improved debt payment ability.
TTEC ended 2025 with a current ratio of 1.89, up from the preceding year’s 1.84. It is a clear indication of a strong liquidity position, translating into an efficient short-term debt coverage ability. The company optimized its capital structure and improved its cash management ability, which improved its financial flexibility.
Management stated that it is inclined to continue this performance in 2026 by increasing its EBITDA and operating income, boosting margins and lowering debt. Therefore, the goal is to prioritize sustaining profitability as TTEC navigates ongoing top-line rationalization across its business segments.
TTEC Holdings’ Price Performance, Valuation & Estimates
The TTEC stock has dipped 7.9% in a year against 46.1% rally in its industry. Its competitors, Genpact (G - Free Report) , fell 19.5%, while Maximus (MMS - Free Report) moved up 5%.
1-Year Stock Price Performance
From a valuation perspective, TTEC trades at a 12-month forward price-to-sales ratio of 0.08X, lower than Genpact’s and Maximus’ 1.13X and 0.68X, respectively.
Price/Sales F12M
TTEC Holdings, Genpact and Maximus carry a Value Score of A.
The Zacks Consensus Estimate for TTEC’s 2026 and 2027 earnings has been flat at $1.2 and $1.33 per share over the past 30 days, respectively.
TTEC Holdings currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.