TTEC reported lower revenue but stronger profitability and cash generation in the third quarter of 2026, as operating margins and per-share results improved from a year earlier. The customer-experience services company also reaffirmed its full-year outlook.
Chief Executive Ken Tuchman said the company had improved its sales pipeline and program economics and expanded the use of AI tools among frontline teams. He said TTEC still has work to do to return to its historical growth and profitability levels.
Key details
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Revenue declined 5.2% to $492.2 million from $519.1 million a year earlier. Foreign-exchange movements reduced third-quarter revenue by $2.1 million.
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GAAP operating income nearly doubled to $23.3 million, or 4.7% of revenue, from $12.3 million, or 2.4%, in the prior-year quarter.
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Non-GAAP operating income—which excludes restructuring and impairment charges, equity compensation, amortization of purchased intangibles and other items—rose to $37.3 million from $28.9 million. The operating margin on this basis increased to 7.6% from 5.6%. Foreign exchange added $1.5 million to non-GAAP operating income.
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Adjusted EBITDA increased to $51.5 million, or 10.5% of revenue, from $43.4 million, or 8.4%.
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The GAAP diluted loss per share narrowed to 6 cents from 23 cents. Non-GAAP diluted earnings per share rose to 22 cents from 12 cents.
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Cash generation improved: cash flow from operations was $37.0 million, compared with $4.2 million a year earlier. Free cash flow was positive $27.9 million, versus negative $9.6 million. Capital expenditures fell to $9.1 million from $13.8 million.
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TTEC reaffirmed its 2026 full-year outlook. The announcement provided here does not include the numerical guidance.
Plain-English implications
TTEC’s results show improved operating profitability and cash generation despite a year-over-year revenue decline. The company remained loss-making on a GAAP per-share basis, though its loss narrowed; its non-GAAP earnings per share increased.