TTEC swings to $83M FCF in 2025 from prior cash burn, driven by factoring exit, stronger operations and lower CapEx, boosting liquidity and cutting debt.
TTEC Holdings, Inc.’s TTEC 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, fell 19.5%, while Maximus MMS moved up 5%.
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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.
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.
Image Source: Zacks Investment Research
TTEC Holdings currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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