TTEC Holdings, Inc.

Welcome to T-TECH's fourth quarter and full year 2025 earnings conference call. I would like to remind all parties that you will be in a listen-only mode until the question and answer session. This call is being recorded at the request of T-TECH. I would now like to turn the call over to Bob Belknap, T-TECH's Vice President, Conference Finance. Thank you, sir, and you may begin.

Good morning and thank you for joining us today. TTEC is hosting this call to discuss its fourth quarter and full year 2025 results for the period ended December 31st, 2025. Participating on today's call are Ken Tuckman, Chairman and Chief Executive Officer of TTEC, and Kenny Wagers, Chief Financial Officer of TTEC. Yesterday, TTEC issued a press release announcing its financial results. While this call will reflect items discussed in that document, for complete information about our financial performance, We also encourage you to read our annual report on Form 10-K for the period ended on December 31st, 2025. Before we begin, I want to remind you that matters discussed on today's call may include forward-looking statements related to our operating performance, financial goals, and business outlook which are based on management's current beliefs and assumptions. Please note that these forward-looking statements reflect our opinions as of the date of this call, and we undertake no obligation to update this information as a result of new developments that may occur. Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause our actual results to differ materially from those expected and described today. For a more detailed description of our risk factors, please review our 2025 annual report on Form 10-K. A replay of this conference call will be available on our website under the Investor Relations section. I will now turn the call over to Ken.

Good morning, and thank you for joining us today. 2025 was a pivotal year for T-TECH, one in which we met our financial commitments, improved our balance sheet, and fortified our position as the leader in AI-enabled CX. For the full year 2025, revenue was $2,136,000,000, exceeding the high end of our guidance. Adjusted EBITDA was $214,000,000, reflecting year-over-year growth of 5.6%. We generated $83 million in cash flow and reduced our credit facility borrowings by $70 million. This reflects our continued focus on strengthening our balance sheet. Before moving on to our business overview, I'd like to point out that our operating improvements and disciplined budget management were offset by a one-time goodwill non-cash impairment on a portion of our T-TECH digital segment in the fourth quarter. This was due to the decline in our market capitalization and the annual fair value assessment. While impactful from an accounting gap perspective, the impairment was a non-cash expense and has no impact on our broader ability to execute our strategy or the value of our CX technology solutions. Now on to some highlights from the year. We deepened our relationships with our largest clients capturing an increased share of wallet as they expanded their use of our end-to-end consulting, technology, and managed services portfolio. Sales of new lines of business launched in 2025 to our base were strong in both our engage and digital segments, increasing year over year. Across the business, we attracted a substantial number of new clients with our AI forward and vertical solutions approach. Several of these clients are new to having a CX partner, a shift driven by data and AI landscape that has become too complex for clients to navigate alone. We grew our strategic technology partnerships as we collaborated on new client sales opportunities and innovative solution development. Our professional services with these technology partners grew 16% outside of our legacy CCaaS practices. We continued to increase the penetration of our AI-enabled solutions with our embedded base, and are integrating this innovation functionality in every new T-TECH Engage and T-TECH Digital opportunity. We expect that we will achieve near 100% AI adoption with our current clients by the end of this year. And importantly, we continue to invest in our global team of CX engineers, consultants, data analysts, and associates, earning Great Place to Work certification in 15 countries, several more countries than last year. Before we move into the discussion of our segment performance, I'd like to share some thoughts on the current macro environment. Clearly, there is an AI overhang casting a shadow over valuations for CX, IT, and SaaS-based business services companies. We are fully cognizant. that over time there will be an impact on lower-value interactions, which are part of the current $400 billion TAM. However, the opportunity is sufficiently large to support the companies serving the market today, let alone the new solutions that are emerging. Based on our experience, AI isn't eliminating the need for CX. It's making it more effective. By automating routine transactions, it's enabling humans in the loop to focus on the high-stakes interactions that define a brand. But even as we navigate the fastest tech adoption curve in history, we must remain mindful that the promise of AI is only as good as its execution. Success lies in balancing this rapid innovation with the operational realities required to deliver a seamless, human-centric experience. Our point of view is shaped by several market realities. One, transformation requires a long runway. It took almost 30 years from the Internet's debut to achieve total global integration. It demanded decades to build the infrastructure, technology, tools, and adoption to achieve worldwide ubiquity. Two, system sprawl is massive. Today, the average Fortune 1000 company operates hundreds of software applications and technology systems, both in the cloud and on-premise. Although not all of them are required for CX, less than a quarter of them are integrated. 3. Internal cultural adoption creates a bottleneck. According to a recent Bain & Company study, 88% of business transformations fail to achieve their goals because of lack of organizational readiness and employee alignment. Success requires businesses to rethink how they organize, empower, train, and measure the effectiveness of their people and AI counterparts. And finally, technology is only as valuable as the end consumer's willingness to use and trust it. Just as the EV market shifted towards hybrid cars when consumers demanded the security of traditional engines alongside new tech, CX is entering a hybrid era where consumers appreciate the potential convenience and personalization of agentic AI, but demand the trust and authenticity of a human in the loop for high value, complex interactions. In this environment, enterprises are seeking guidance and expertise like never before. They're looking to architect modern data states, integrate disparate systems and redefine workflows. In some cases, rather than struggling to do it themselves in-house. They choose to work with an end-to-end partner like T-TECH. This convergence of complexity and urgency is exactly where we excel. We don't just provide the technology or the people. We provide the strategic CX bridge that turns AI potential into operational reality. With 42% of general AI initiatives failing due to lack of depth, Companies are shifting budgets to CX specialists like us, who don't just know AI, but have the precious final mile CX experience to move fast, remove risk, and deliver brand differentiation. To achieve the full potential of our unique platform, we continue to build on our strong leadership foundation with new talent. I am pleased to announce several key appointments that will further accelerate our strategic roadmap. Alfredo Rizzo, a longstanding leader within our T-TECH digital organization, has moved into the newly created role of Chief Technology Officer of T-TECH, reporting directly to me. His deep institutional knowledge, client-centric experience, and AI-first approach will be vital as he fast-tracks our efforts to deliver next-generation AI solutions at scale. Joining him is Ramki Desireju, our new Chief Operating Officer at T-TECH Digital. His deep domain expertise gained at IBM, among others, will help us further bridge the gap between operational excellence and technology-enabled transformation, ensuring our digital initiatives continue to deliver measurable impact for our clients. Now I will turn to a discussion of our business segments. Let's start with the digital CX segment, Engage. As planned, we delivered solid progress this quarter, as we continue to advance our transformation agenda with a disciplined focus on profitable and sustainable growth. We're seeing encouraging traction across the business as clients increasingly turn to us for modern digital-first CX solutions and operational excellence. We're expanding our role by introducing new vertical-specific solutions, increasing cross-sell of digital capabilities, and consistently delivering on the priorities that matter most to our clients. At the same time, our new client pipeline reflects healthy momentum, attracting world-class brands that are seeking AI-forward CX solutions that deliver the highest quality interactions. We remain disciplined in our pursuit of operating leverage and margin expansion. Our digital-first strategy is yielding significant efficiencies, and our strengthened leadership team has energized our frontline performance as well as continued to optimize our global delivery mix. We are focused on winning new business that meets our profitability expectations. In parallel, we're working to optimize a few underperforming contracts. While this creates a temporary revenue headwind in 2026, it secures a healthier client portfolio, superior margins, and a more resilient growth profile. Ultimately, these deliberate actions ensure we are not just growing, but growing profitably and sustainably. Turning to T-TECH Digital. We continue to evolve our professional and managed services to meet the changing needs and priorities of the market. Clients are looking to us as experts to help them navigate their digital evolution. Because we specialize in building value through the strategic application of data, AI, and automation, we're helping ensure that every innovation translates directly into disciplined, measurable business outcomes. While these engagements may begin smaller than traditional CCaaS migrations, they are highly strategic and sticky. They leverage our expertise in the application of AI, data analytics, consulting, journey orchestration, and systems integration. Because of our fluency with all the major CX technologies, these engagements often benefit from the network effect, where they expand into multi-phase professional and managed services relationships. The shift is broadening our addressable market, increasing both our share of wallet and existing clients and attracting new ones. Our technology agnostic approach, combined with our ability to rapidly pilot use cases across all major hyperscalers, is positioning us as a trusted partner for complex, multi-platform CX transformations. As a result, we're seeing growing demand for adjacent services and strong momentum in professional services pipelines and bookings. Our partnership with a global travel and hospitality brand is one example of how our ability to combine consulting, technology, and analytic insight is driving sustainable growth. Our relationship began when this enterprise was facing a critical end-of-life cliff with their on-premise contact center technology. They brought us in to initially to mitigate risk and assess their path forward. Fast forward four years, that tactical engagement has evolved into a complete digital transformation that will persist well into the future. We've modernized their foundation by successfully migrating them to an integrated CCaaS and CRM platform. We've architected a modern data state with a clean unified data environment required for advanced CX and activated AI by deploying generative AI functionality to personalize guest interactions at scale. We've fundamentally moved this client from a high risk, high cost legacy environment to a high reward AI ready CX engine. Their CX operations are no longer a cost center. Today, They are primarily a driver of revenue growth and long-term customer loyalty. This is the blueprint that we're now scaling across multiple clients. Digital-first automation handles low-complexity tasks, reserving human expertise empowered with AI for authentic, empathetic, white-gloved moments. It demonstrates what can happen when we change the conversation from managing cost to mastering outcomes. As a global consulting, technology, and managed services company delivering solutions at the intersection of data, AI, and customer experience, we are evolving our business to capitalize on the massive opportunity before us. Which brings me to our financial resilience. We expect to continue delivering EBITDA growth while revenue in each business segment is anticipated to be slightly down this year. As we codify the next generation of the CX Playbook, We're proactively remixing our solutions, delivery models, and commercial constructs. Regarding our stock price, it is our view that the current valuation does not reflect the differentiation and value in our business. Obviously, entire sectors have been put under similar pressure and are being treated as though they have no terminal value. Our strategy remains focused on the factors that we control and on building an enduring business for the long term. While we're collaborating with financial advisors and banking partners on our credit facility, the business performance continues to improve with stronger balance sheet and cash flow. These efforts will enhance our long-term flexibility, supporting both our operations and innovation agenda. As we pivot to the year ahead, we remain focused on returning the company to its historic growth and margin profile. we are prioritizing high-yield complex client engagements with ample opportunity for growth, expanding our role as a strategic end-to-end transformation partner, driving differentiation through vertical solutions and proprietary IP, deepening our technology partnerships, continuing to improve efficiency through AI and automation, and investing in specialized talent with deep vertical CX operational and technical expertise. These priorities are the critical path for continued success. By leveraging our unique end-to-end solutions and investing in our people, platform, and strategic partnerships, we will continue to capture the demand for AI-enabled CX solutions well into the future. I continue to appreciate and value the dedication and support of our board and talented teams across the globe. I'll now hand it over to Kenny.