{"url_path":"/sec/ttec/10-k/2026/item-16","section_key":"item-16","section_title":"Item 16 FORM 10-K SUMMARY**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-26","source_url":"https://www.sec.gov/Archives/edgar/data/1013880/0001104659-26-020532-index.html","accession_number":"0001104659-26-020532","cik":"0001013880","ticker":"TTEC","issuer_name":"TTEC Holdings, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1013880/0001104659-26-020532-index.html","primary_entity_key":"0001013880","primary_entity_name":"TTEC Holdings, Inc."},"word_count":27893,"has_tables":true,"body_markdown":"**ITEM 16. FORM 10-K SUMMARY**\n\n​\n\nNone\n\n​\n\n​\n\n52\n\n[Table of Contents](#Toc)\n\n**SIGNATURE****S**\n\n​\n\nPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned; thereunto duly authorized on\nFebruary 26, 2026.\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTTEC HOLDINGS, INC.\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBy:\n\n/s/ KENNETH D. TUCHMAN\n\n​\n\n​\n\nChief Executive Officer\n\n​\n\nPursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on February 26, 2026, by the following persons on behalf of the registrant and in the capacities indicated:\n\n​\n\n​\n\n​\n\n​\n\n**Signature**\n\n​\n\n**Title**\n\n​\n\n​\n\n​\n\n/s/ KENNETH D. TUCHMAN\n\n​\n\nPRINCIPAL EXECUTIVE OFFICER\n\nKenneth D. Tuchman\n\n​\n\nChief Executive Officer and Chairman of the Board\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n/s/ KENNETH R WAGERS, III\n\n​\n\nPRINCIPAL FINANCIAL AND ACCOUNTING OFFICER\n\nKenneth R. Wagers, III\n\n​\n\nChief Financial Officer\n\n​\n\n​\n\n​\n\n*\n\n​\n\nDIRECTOR\n\nSteven J. Anenen\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*\n\n​\n\nDIRECTOR\n\nTracy L. Bahl\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*\n\n​\n\nDIRECTOR\n\nGregory A. Conley\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*\n\n​\n\nDIRECTOR\n\nRobert N. Frerichs\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*\n\n​\n\nDIRECTOR\n\nMarc L. Holtzman\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*\n\n​\n\nDIRECTOR\n\nGina Loften\n\n​\n\n​\n\n​\n\n* By /s/ Kenneth R. Wagers, III under Power of Attorney as attached hereto as Exhibit 24.1\n\n​\n\n​\n\n53\n\n[Table of Contents](#Toc)\n\n​\n\n**INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS OF TTEC HOLDINGS, INC****.**\n\n​\n\n​\n\n​\n\n​\n\n**Page No.**\n\n[Report of Independent Registered Public Accounting Firm](#ReportofIndependentRegisteredPublic) (PCAOB ID 238)\n\nF-2\n\n[Consolidated Balance Sheets as of December 31, 2025 and 2024](#ConsolidatedBalanceSheets_529096)\n\nF-5\n\n[Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2025, 2024 and 2023](#ConsolidatedStatementsofComprehensiveInc)\n\nF-6\n\n[Consolidated Statements of Stockholders’ Equity and Mezzanine Equity for the Years Ended December 31, 2025, 2024 and 2023](#ConsolidatedStatementsofStockholdersEqui)\n\nF-7\n\n[Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024 and 2023](#ConsolidatedStatementsofCashFlows_71511)\n\nF-8\n\n[Notes to the Consolidated Financial Statements](#NotestotheConsolidatedFinancialStat)\n\nF-9\n\n​\n\n​\n\nF-1\n\n[Table of Contents](#Toc)\n\n**Report of Independent Registered Public Accounting Firm**\n\n​\n\nTo the Board of Directors and Stockholders of TTEC Holdings, Inc.\n\nOpinions on the Financial Statements and Internal Control over Financial Reporting\n\nWe have audited the accompanying consolidated balance sheets of TTEC Holdings, Inc. and its subsidiaries (the \"Company\") as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income (loss), of stockholders' equity and mezzanine equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the \"consolidated financial statements\"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework*(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).\n\nIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework*(2013) issued by the COSO.\n\nBasis for Opinions\n\nThe Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.\n\nOur audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.\n\nDefinition and Limitations of Internal Control over Financial Reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized\n\nF-2\n\n[Table of Contents](#Toc)\n\nacquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\nCritical Audit Matters\n\nThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.\n\n*Revenue****Recognition*\n\nAs described in Note 1 to the consolidated financial statements, the Company recognizes revenue from contracts and programs when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration management expects to be entitled to in exchange for those goods or services. Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. The Company’s revenue was $2,136 million for the year ended December 31, 2025.\n\nThe principal consideration for our determination that performing procedures relating to revenue recognition is a critical audit matter is a high degree of auditor effort in performing procedures related to the Company’s revenue recognition.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process. These procedures also included, among others (i) evaluating certain revenue transactions by either (a) testing, on a sample basis, the revenue recognized by obtaining and inspecting source documents, such as executed contracts, invoices, shipping and delivery documents, and cash receipts; or (b) testing the issuance and settlement of invoices and credit memos, tracing transactions not settled to a detailed listing of accounts receivable, and testing the completeness and accuracy of certain data provided by management; and (ii) confirming a sample of outstanding customer invoice balances as of December 31, 2025, and, for confirmations not returned, obtaining and inspecting source documents, such as executed contracts, invoices, shipping and delivery documents, and subsequent cash receipts.\n\n*Annual****Goodwill****Impairment****Assessments*\n\nAs described in Notes 1 and 6 to the consolidated financial statements, the Company’s goodwill balance, which is comprised of the Digital Recurring, Digital Professional Services and Engage reporting units , was $369 million as of December 31, 2025. Management evaluates goodwill for possible impairment at least annually on December 1, and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying value of a reporting unit is in excess of its fair value, management will record an impairment equal to the amount by which a reporting unit’s carrying value exceeds its fair value. As of the date of the annual impairment testing, management concluded that the fair values of the Engage and Digital Professional Services reporting units were in excess of the respective carrying values and the goodwill for those reporting units was not impaired. The fair value of the Digital Recurring reporting unit decreased below its carrying value, which resulted in a $205 million impairment loss that was recognized in the fourth quarter. The determination of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term growth rates for the businesses, the useful lives over which the cash flows will occur and determination of appropriate discount rates (based in part on the Company’s weighted average cost of capital). Management used a market approach and an income approach\n\nF-3\n\n[Table of Contents](#Toc)\n\nto estimate the fair value of each reporting unit which incorporated significant assumptions, including revenue growth rates, revenue terminal growth rates, EBITDA margin projections, income tax rates, working capital, capital expenditures, discount rates, guideline public company revenue multiples and EBITDA multiples, guideline transaction revenue multiples, and market participant acquisition premiums.\n\nThe principal considerations for our determination that performing procedures relating to the annual goodwill impairment assessments is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the Company’s reporting units ; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to revenue growth rates, and EBITDA margin projections for the Digital Recurring, Digital Professional Services and Engage reporting units; revenue terminal growth rates, discount rates, guideline public company revenue multiples and EBITDA multiples, and market participant acquisition premiums for the Digital Recurring and Digital Professional Services reporting units; guideline transaction revenue multiples for the Digital Professional Services reporting unit; and capital expenditures for the Digital Recurring reporting unit; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s goodwill impairment assessment, including controls over the valuation of each reporting unit. These procedures also included, among others (i) testing management’s process for developing the fair value estimate of the reporting units; (ii) evaluating the appropriateness of the income and market approaches used by management; (iii) testing the completeness and accuracy of underlying data used in the income and market approaches; and (iv) evaluating the reasonableness of the significant assumptions used by management related to revenue growth rates and EBITDA margin projections for the Digital Recurring, Digital Professional Services and Engage reporting units; revenue terminal growth rates, discount rates, guideline public company revenue multiples and EBITDA multiples, and market participant acquisition premiums for the Digital Recurring and Digital Professional Services reporting units; guideline transaction revenue multiples for the Digital Professional Services reporting unit; and capital expenditures for the Digital Recurring reporting unit. Evaluating management’s assumptions related to revenue growth rates and EBITDA margin projections for the Digital Recurring, Digital Professional Services and Engage reporting units; revenue terminal growth rates for the Digital Recurring and Digital Professional reporting units; and capital expenditures for the Digital Recurring reporting unit involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of each reporting unit; (ii) the consistency with external market and industry data, where applicable; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the income and market approaches and (ii) the reasonableness of the discount rates, guideline public company revenue multiples and EBITDA multiples, and market participant acquisition premiums assumptions for the Digital\n\nRecurring and Digital Professional Services reporting units; and guideline transaction revenue multiples assumption for the Digital Professional Services reporting unit.\n\n​\n\n/s/ PricewaterhouseCoopers LLP\n\n​\n\nDallas, Texas\n\nFebruary 26, 2026\n\nWe have served as the Company’s auditor since 2007.\n\n​\n\n​\n\n​\n\nF-4\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Consolidated Balance Sheets**\n\n**(Amounts in thousands, except share amounts)**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31,**\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n** **\n\n**ASSETS**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Current assets**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash and cash equivalents\n\n​\n\n$\n\n82,901\n\n​\n\n$\n\n84,991\n\n​\n\nAccounts receivable, net of allowance of $4,908 and $5,244\n\n​\n\n \n\n455,829\n\n​\n\n \n\n452,573\n\n​\n\nPrepaids and other current assets\n\n​\n\n \n\n124,006\n\n​\n\n \n\n92,947\n\n​\n\nIncome and other tax receivables\n\n​\n\n \n\n10,615\n\n​\n\n \n\n21,785\n\n​\n\nTotal current assets\n\n​\n\n \n\n673,351\n\n​\n\n \n\n652,296\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Long-term assets**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProperty, plant and equipment, net\n\n​\n\n \n\n111,778\n\n​\n\n \n\n132,051\n\n​\n\nOperating lease assets\n\n​\n\n​\n\n86,064\n\n​\n\n​\n\n91,263\n\n​\n\nGoodwill\n\n​\n\n \n\n368,678\n\n​\n\n \n\n571,197\n\n​\n\nDeferred tax assets, net\n\n​\n\n \n\n6,581\n\n​\n\n \n\n8,498\n\n​\n\nOther intangible assets, net\n\n​\n\n \n\n133,688\n\n​\n\n \n\n164,808\n\n​\n\nIncome and other tax receivables, long-term\n\n​\n\n​\n\n8,595\n\n​\n\n​\n\n31,781\n\n​\n\nOther long-term assets\n\n​\n\n \n\n110,347\n\n​\n\n \n\n101,486\n\n​\n\nTotal long-term assets\n\n​\n\n \n\n825,731\n\n​\n\n \n\n1,101,084\n\n​\n\nTotal assets\n\n​\n\n$\n\n1,499,082\n\n​\n\n$\n\n1,753,380\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**LIABILITIES, STOCKHOLDERS’ EQUITY AND MEZZANINE EQUITY**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Current liabilities**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAccounts payable\n\n​\n\n$\n\n72,637\n\n​\n\n$\n\n84,180\n\n​\n\nAccrued employee compensation and benefits\n\n​\n\n \n\n155,400\n\n​\n\n \n\n137,636\n\n​\n\nOther accrued expenses\n\n​\n\n \n\n19,674\n\n​\n\n \n\n22,578\n\n​\n\nIncome tax payable\n\n​\n\n \n\n11,959\n\n​\n\n \n\n3,007\n\n​\n\nDeferred revenue\n\n​\n\n \n\n58,828\n\n​\n\n \n\n64,752\n\n​\n\nCurrent operating lease liabilities\n\n​\n\n​\n\n34,188\n\n​\n\n​\n\n33,358\n\n​\n\nOther current liabilities\n\n​\n\n \n\n3,266\n\n​\n\n \n\n8,425\n\n​\n\nTotal current liabilities\n\n​\n\n \n\n355,952\n\n​\n\n \n\n353,936\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Long-term liabilities**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nLine of credit\n\n​\n\n \n\n905,000\n\n​\n\n \n\n975,000\n\n​\n\nDeferred tax liabilities, net\n\n​\n\n \n\n1,225\n\n​\n\n \n\n17,457\n\n​\n\nNon-current income tax payable\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\nNon-current operating lease liabilities\n\n​\n\n​\n\n61,170\n\n​\n\n​\n\n71,008\n\n​\n\nOther long-term liabilities\n\n​\n\n \n\n62,832\n\n​\n\n \n\n67,860\n\n​\n\nTotal long-term liabilities\n\n​\n\n \n\n1,030,227\n\n​\n\n \n\n1,131,325\n\n​\n\nTotal liabilities\n\n​\n\n \n\n1,386,179\n\n​\n\n \n\n1,485,261\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Commitments and contingencies (Note 13)**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Stockholders’ equity**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPreferred stock; $0.01 par value; 10,000,000 shares authorized; zero shares outstanding as of December 31, 2025 and December 31, 2024\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\nCommon stock; $0.01 par value; 150,000,000 shares authorized; 48,560,973 and 47,749,494 shares outstanding as of December 31, 2025 and December 31, 2024, respectively\n\n​\n\n \n\n486\n\n​\n\n \n\n477\n\n​\n\nAdditional paid-in capital\n\n​\n\n \n\n432,268\n\n​\n\n \n\n420,181\n\n​\n\nTreasury stock at cost: 34,328,112 and 34,328,112 shares as of December 31, 2025 and December 31, 2024, respectively\n\n​\n\n \n\n(584,900)\n\n​\n\n \n\n(584,900)\n\n​\n\nAccumulated other comprehensive income (loss)\n\n​\n\n \n\n(106,938)\n\n​\n\n \n\n(132,121)\n\n​\n\nRetained earnings\n\n​\n\n \n\n354,151\n\n​\n\n \n\n546,617\n\n​\n\nNoncontrolling interest\n\n​\n\n \n\n17,836\n\n​\n\n \n\n17,865\n\n​\n\nTotal stockholders’ equity\n\n​\n\n \n\n112,903\n\n​\n\n \n\n268,119\n\n​\n\nTotal liabilities, stockholders’ equity and mezzanine equity\n\n​\n\n$\n\n1,499,082\n\n​\n\n$\n\n1,753,380\n\n​\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\nF-5\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Consolidated Statements of Comprehensive Income (Loss****)**\n\n**(Amounts in thousands, except per share amounts)**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n**Year Ended December 31,**\n\n** **\n\n​\n\n  ​ ​ ​\n\n \n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\n**Revenue**\n\n​\n\n​\n\n$\n\n2,136,899\n\n​\n\n$\n\n2,207,587\n\n​\n\n$\n\n2,462,817\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Operating expenses**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCost of services (exclusive of depreciation and amortization presented separately below)\n\n​\n\n​\n\n \n\n1,670,687\n\n​\n\n \n\n1,735,865\n\n​\n\n \n\n1,932,877\n\n​\n\nSelling, general and administrative\n\n​\n\n​\n\n \n\n280,333\n\n​\n\n \n\n293,042\n\n​\n\n \n\n290,873\n\n​\n\nDepreciation and amortization\n\n​\n\n​\n\n \n\n89,760\n\n​\n\n \n\n97,955\n\n​\n\n \n\n101,272\n\n​\n\nRestructuring charges, net\n\n​\n\n​\n\n​\n\n5,897\n\n​\n\n​\n\n10,152\n\n​\n\n​\n\n8,041\n\n​\n\nImpairment losses\n\n​\n\n​\n\n \n\n207,367\n\n​\n\n \n\n244,093\n\n​\n\n \n\n11,733\n\n​\n\nTotal operating expenses\n\n​\n\n​\n\n \n\n2,254,044\n\n​\n\n \n\n2,381,107\n\n​\n\n \n\n2,344,796\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Income (loss) from operations**\n\n​\n\n​\n\n \n\n(117,145)\n\n​\n\n \n\n(173,520)\n\n​\n\n \n\n118,021\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Other income (expense)**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInterest income\n\n​\n\n​\n\n \n\n9,368\n\n​\n\n \n\n2,732\n\n​\n\n \n\n5,150\n\n​\n\nInterest expense\n\n​\n\n​\n\n \n\n(71,706)\n\n​\n\n \n\n(84,315)\n\n​\n\n \n\n(78,321)\n\n​\n\nOther income (expense), net\n\n​\n\n​\n\n \n\n9,246\n\n​\n\n \n\n18,586\n\n​\n\n \n\n(4,126)\n\n​\n\nTotal other income (expense)\n\n​\n\n​\n\n \n\n(53,092)\n\n​\n\n \n\n(62,997)\n\n​\n\n \n\n(77,297)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Income (loss) before income taxes**\n\n​\n\n​\n\n \n\n(170,237)\n\n​\n\n \n\n(236,517)\n\n​\n\n \n\n40,724\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProvision for income taxes\n\n​\n\n​\n\n \n\n(14,835)\n\n​\n\n \n\n(74,100)\n\n​\n\n \n\n(22,460)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Net income (loss)**\n\n​\n\n​\n\n \n\n(185,072)\n\n​\n\n \n\n(310,617)\n\n​\n\n \n\n18,264\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet income attributable to noncontrolling interest\n\n​\n\n​\n\n \n\n(7,394)\n\n​\n\n \n\n(10,348)\n\n​\n\n \n\n(9,836)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Net income (loss) attributable to TTEC stockholders**\n\n​\n\n​\n\n$\n\n(192,466)\n\n​\n\n$\n\n(320,965)\n\n​\n\n$\n\n8,428\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Other comprehensive income (loss)**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet income (loss)\n\n​\n\n​\n\n$\n\n(185,072)\n\n​\n\n$\n\n(310,617)\n\n​\n\n$\n\n18,264\n\n​\n\nForeign currency translation adjustments\n\n​\n\n​\n\n \n\n22,319\n\n​\n\n \n\n(30,841)\n\n​\n\n \n\n30,783\n\n​\n\nDerivative valuation, gross\n\n​\n\n​\n\n \n\n3,709\n\n​\n\n \n\n(11,898)\n\n​\n\n \n\n8,416\n\n​\n\nDerivative valuation, tax effect\n\n​\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(2,190)\n\n​\n\nOther, net of tax\n\n​\n\n​\n\n \n\n(72)\n\n​\n\n \n\n330\n\n​\n\n \n\n(391)\n\n​\n\nTotal other comprehensive income (loss)\n\n​\n\n​\n\n \n\n25,956\n\n​\n\n \n\n(42,409)\n\n​\n\n \n\n36,618\n\n​\n\n**Total comprehensive income (loss)**\n\n​\n\n​\n\n \n\n(159,116)\n\n​\n\n \n\n(353,026)\n\n​\n\n \n\n54,882\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nLess: Comprehensive income attributable to noncontrolling interest\n\n​\n\n​\n\n \n\n(8,167)\n\n​\n\n \n\n(10,184)\n\n​\n\n \n\n(9,501)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Comprehensive income (loss) attributable to TTEC stockholders**\n\n​\n\n​\n\n$\n\n(167,283)\n\n​\n\n$\n\n(363,210)\n\n​\n\n$\n\n45,381\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Weighted average shares outstanding**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBasic\n\n​\n\n​\n\n \n\n48,211\n\n​\n\n \n\n47,614\n\n​\n\n \n\n47,335\n\n​\n\nDiluted\n\n​\n\n​\n\n \n\n48,211\n\n​\n\n \n\n47,614\n\n​\n\n \n\n47,419\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Net income (loss) per share attributable to TTEC stockholders**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBasic\n\n​\n\n​\n\n$\n\n(3.99)\n\n​\n\n$\n\n(6.74)\n\n​\n\n$\n\n0.18\n\n​\n\nDiluted\n\n​\n\n​\n\n$\n\n(3.99)\n\n​\n\n$\n\n(6.74)\n\n​\n\n$\n\n0.18\n\n​\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\nF-6\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Consolidated Statements of Stockholders’ Equit****y and Mezzanine Equity**\n\n**(Amounts in thousands)**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Stockholders’ Equity of the Company**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**Accumulated**\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n​\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Other**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Total**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**Common Stock**\n\n​\n\n**Treasury**\n\n​\n\n**Additional**\n\n​\n\n**Comprehensive**\n\n​\n\n**Retained**\n\n​\n\n**Noncontrolling**\n\n​\n\n​\n\n**Stockholders'**\n\n​\n\n**Mezzanine**\n\n** **\n\n​\n\n​\n\n**Shares**\n\n​\n\n**Amount**\n\n​\n\n**Stock**\n\n​\n\n**Paid-in Capital**\n\n​\n\n**Income (Loss)**\n\n​\n\n**Earnings**\n\n​\n\n**interest**\n\n​\n\n**Equity**\n\n​\n\n**Equity**\n\n** **\n\n**Balance as of December 31, 2022**\n\n \n\n47,224\n\n​\n\n$\n\n472\n\n​\n\n$\n\n(593,164)\n\n​\n\n$\n\n367,673\n\n​\n\n$\n\n(126,301)\n\n​\n\n$\n\n911,233\n\n​\n\n$\n\n18,192\n\n​\n\n$\n\n578,105\n\n​\n\n$\n\n55,645\n\n​\n\nBuyout of mezzanine equity\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n24,067\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n24,067\n\n​\n\n​\n\n(24,067)\n\n​\n\nNet income\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n8,428\n\n​\n\n​\n\n9,308\n\n​\n\n​\n\n17,736\n\n​\n\n​\n\n528\n\n​\n\nDividends to shareholders ($1.04 per common share)\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(49,232)\n\n​\n\n \n\n—\n\n​\n\n \n\n(49,232)\n\n​\n\n \n\n—\n\n​\n\nBuyout of noncontrolling interest or mezzanine equity\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(31,920)\n\n​\n\nPayments distributed to noncontrolling interest or mezzanine equity\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(10,786)\n\n​\n\n​\n\n(10,786)\n\n​\n\n​\n\n(186)\n\n​\n\nForeign currency translation adjustments\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n30,590\n\n​\n\n \n\n—\n\n​\n\n \n\n193\n\n​\n\n \n\n30,783\n\n​\n\n \n\n—\n\n​\n\nDerivatives valuation, net of tax\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n6,226\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n6,226\n\n​\n\n \n\n—\n\n​\n\nVesting of restricted stock units\n\n \n\n203\n\n​\n\n \n\n2\n\n​\n\n \n\n3,357\n\n​\n\n \n\n(6,396)\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(3,037)\n\n​\n\n \n\n—\n\n​\n\nEquity-based compensation expense\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n22,071\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n22,071\n\n​\n\n \n\n—\n\n​\n\nOther, net of tax\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(391)\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(391)\n\n​\n\n \n\n—\n\n​\n\n**Balance as of December 31, 2023**\n\n \n\n47,427\n\n​\n\n$\n\n474\n\n​\n\n$\n\n(589,807)\n\n​\n\n$\n\n407,415\n\n​\n\n$\n\n(89,876)\n\n​\n\n$\n\n870,429\n\n​\n\n$\n\n16,907\n\n​\n\n$\n\n615,542\n\n​\n\n$\n\n—\n\n​\n\nNet income (loss)\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(320,965)\n\n​\n\n​\n\n10,348\n\n​\n\n​\n\n(310,617)\n\n​\n\n​\n\n—\n\n​\n\nDividends to shareholders ($0.06 per common share)\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(2,847)\n\n​\n\n \n\n—\n\n​\n\n \n\n(2,847)\n\n​\n\n \n\n—\n\n​\n\nPayments distributed to noncontrolling interest\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(9,226)\n\n​\n\n​\n\n(9,226)\n\n​\n\n​\n\n—\n\n​\n\nForeign currency translation adjustments\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(30,677)\n\n​\n\n \n\n—\n\n​\n\n \n\n(164)\n\n​\n\n \n\n(30,841)\n\n​\n\n \n\n—\n\n​\n\nDerivatives valuation, net of tax\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(11,898)\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(11,898)\n\n​\n\n \n\n—\n\n​\n\nVesting of restricted stock units\n\n \n\n322\n\n​\n\n \n\n3\n\n​\n\n \n\n4,907\n\n​\n\n \n\n(5,924)\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(1,014)\n\n​\n\n \n\n—\n\n​\n\nEquity-based compensation expense\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n18,690\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n18,690\n\n​\n\n \n\n—\n\n​\n\nOther, net of tax\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n330\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n330\n\n​\n\n \n\n—\n\n​\n\n**Balance as of December 31, 2024**\n\n \n\n47,749\n\n​\n\n$\n\n477\n\n​\n\n$\n\n(584,900)\n\n​\n\n$\n\n420,181\n\n​\n\n$\n\n(132,121)\n\n​\n\n$\n\n546,617\n\n​\n\n$\n\n17,865\n\n​\n\n$\n\n268,119\n\n​\n\n$\n\n—\n\n​\n\nNet income (loss)\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(192,466)\n\n​\n\n \n\n7,394\n\n​\n\n \n\n(185,072)\n\n​\n\n \n\n—\n\n​\n\nPayments distributed to noncontrolling interest\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(8,196)\n\n​\n\n \n\n(8,196)\n\n​\n\n \n\n—\n\n​\n\nForeign currency translation adjustments\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n21,546\n\n​\n\n \n\n—\n\n​\n\n \n\n773\n\n​\n\n \n\n22,319\n\n​\n\n \n\n—\n\n​\n\nDerivatives valuation, net of tax\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n3,709\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n3,709\n\n​\n\n \n\n—\n\n​\n\nVesting of restricted stock units\n\n \n\n811\n\n​\n\n \n\n9\n\n​\n\n \n\n—\n\n​\n\n \n\n(1,354)\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(1,345)\n\n​\n\n \n\n—\n\n​\n\nEquity-based compensation expense\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n13,441\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n13,441\n\n​\n\n \n\n—\n\n​\n\nOther, net of tax\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(72)\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(72)\n\n​\n\n \n\n—\n\n​\n\n**Balance as of December 31, 2025**\n\n \n\n48,560\n\n​\n\n$\n\n486\n\n​\n\n$\n\n(584,900)\n\n​\n\n$\n\n432,268\n\n​\n\n$\n\n(106,938)\n\n​\n\n$\n\n354,151\n\n​\n\n$\n\n17,836\n\n​\n\n$\n\n112,903\n\n​\n\n$\n\n—\n\n​\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n​\n\nF-7\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Consolidated Statements of Cash Flow****s**\n\n**(Amounts in thousands)**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\n**Cash flows from operating activities**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet income (loss)\n\n​\n\n$\n\n(185,072)\n\n​\n\n$\n\n(310,617)\n\n​\n\n$\n\n18,264\n\n​\n\nAdjustments to reconcile net income to net cash provided by operating activities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDepreciation and amortization\n\n​\n\n \n\n89,760\n\n​\n\n \n\n97,955\n\n​\n\n \n\n101,272\n\n​\n\nAmortization of contract acquisition costs\n\n​\n\n \n\n1,344\n\n​\n\n \n\n1,995\n\n​\n\n \n\n2,288\n\n​\n\nAmortization of debt issuance costs\n\n​\n\n \n\n2,291\n\n​\n\n \n\n2,020\n\n​\n\n \n\n1,067\n\n​\n\nImputed interest expense and fair value adjustments to contingent consideration\n\n​\n\n \n\n—\n\n​\n\n \n\n(1,496)\n\n​\n\n \n\n7,579\n\n​\n\nProvision for credit losses\n\n​\n\n \n\n980\n\n​\n\n \n\n3,596\n\n​\n\n \n\n2,009\n\n​\n\n(Gain) loss on disposal of assets\n\n​\n\n \n\n1,174\n\n​\n\n \n\n(13,281)\n\n​\n\n \n\n2,219\n\n​\n\nLoss on dissolution of subsidiary\n\n​\n\n​\n\n517\n\n​\n\n​\n\n—\n\n​\n\n​\n\n301\n\n​\n\nImpairment losses\n\n​\n\n \n\n207,367\n\n​\n\n \n\n244,093\n\n​\n\n \n\n11,733\n\n​\n\nDeferred income taxes\n\n​\n\n \n\n(17,155)\n\n​\n\n \n\n58,530\n\n​\n\n \n\n(7,528)\n\n​\n\nExcess tax benefit from equity-based awards\n\n​\n\n \n\n2,194\n\n​\n\n \n\n4,352\n\n​\n\n \n\n1,705\n\n​\n\nEquity-based compensation expense\n\n​\n\n \n\n13,441\n\n​\n\n \n\n18,690\n\n​\n\n \n\n22,071\n\n​\n\n(Gain) loss on foreign currency derivatives\n\n​\n\n \n\n(230)\n\n​\n\n \n\n384\n\n​\n\n \n\n(3)\n\n​\n\nChanges in assets and liabilities, net of acquisitions:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAccounts receivable\n\n​\n\n \n\n1,641\n\n​\n\n \n\n(66,329)\n\n​\n\n \n\n22,359\n\n​\n\nPrepaids and other assets\n\n​\n\n \n\n36,685\n\n​\n\n \n\n(17,120)\n\n​\n\n \n\n8,570\n\n​\n\nAccounts payable and accrued expenses\n\n​\n\n \n\n25,065\n\n​\n\n \n\n(43,220)\n\n​\n\n \n\n9,518\n\n​\n\nDeferred revenue and other liabilities\n\n​\n\n \n\n(58,927)\n\n​\n\n \n\n(38,370)\n\n​\n\n \n\n(58,659)\n\n​\n\nNet cash (used in)/provided by operating activities\n\n​\n\n \n\n121,075\n\n​\n\n \n\n(58,818)\n\n​\n\n \n\n144,765\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Cash flows from investing activities**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProceeds from sale of long-lived assets\n\n​\n\n \n\n4,483\n\n​\n\n \n\n45,650\n\n​\n\n \n\n261\n\n​\n\nPurchases of property, plant and equipment, net of acquisitions\n\n​\n\n \n\n(38,109)\n\n​\n\n \n\n(45,173)\n\n​\n\n \n\n(67,839)\n\n​\n\nNet cash provided by/(used in) investing activities\n\n​\n\n \n\n(33,626)\n\n​\n\n \n\n477\n\n​\n\n \n\n(67,578)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Cash flows from financing activities**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProceeds from/(repayments of) line of credit\n\n​\n\n \n\n(70,000)\n\n​\n\n \n\n(20,000)\n\n​\n\n \n\n35,000\n\n​\n\nPayments on other debt\n\n​\n\n \n\n(2,322)\n\n​\n\n \n\n(2,405)\n\n​\n\n \n\n(2,317)\n\n​\n\nPayments of contingent consideration and hold-back payments to acquisitions\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(37,676)\n\n​\n\nDividends paid to shareholders\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(2,847)\n\n​\n\n​\n\n(49,232)\n\n​\n\nPayments to noncontrolling interest or mezzanine equity\n\n​\n\n \n\n(8,196)\n\n​\n\n \n\n(9,226)\n\n​\n\n \n\n(10,972)\n\n​\n\nTax payments related to issuance of restricted stock units\n\n​\n\n​\n\n(1,345)\n\n​\n\n​\n\n(1,014)\n\n​\n\n​\n\n(3,037)\n\n​\n\nPayments of debt issuance costs\n\n​\n\n \n\n(1,434)\n\n​\n\n \n\n(2,804)\n\n​\n\n \n\n—\n\n​\n\nNet cash (used in)/provided by financing activities\n\n​\n\n \n\n(83,297)\n\n​\n\n \n\n(38,296)\n\n​\n\n \n\n(68,234)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nEffect of exchange rate changes on cash, cash equivalents and restricted cash\n\n​\n\n \n\n(6,242)\n\n​\n\n \n\n7,723\n\n​\n\n \n\n(2,112)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nIncrease/(decrease) in cash, cash equivalents and restricted cash\n\n​\n\n \n\n(2,090)\n\n​\n\n \n\n(88,914)\n\n​\n\n \n\n6,841\n\n​\n\nCash, cash equivalents and restricted cash, beginning of period\n\n​\n\n \n\n84,991\n\n​\n\n \n\n173,905\n\n​\n\n \n\n167,064\n\n​\n\nCash, cash equivalents and restricted cash, end of period\n\n​\n\n$\n\n82,901\n\n​\n\n$\n\n84,991\n\n​\n\n$\n\n173,905\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Supplemental disclosures**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash paid for interest\n\n​\n\n$\n\n68,960\n\n​\n\n$\n\n82,076\n\n​\n\n$\n\n77,199\n\n​\n\nCash paid for income taxes\n\n​\n\n$\n\n25,288\n\n​\n\n$\n\n43,611\n\n​\n\n$\n\n46,129\n\n​\n\n**Non-cash investing and financing activities**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAcquisition of long-lived assets through finance leases\n\n​\n\n$\n\n2,047\n\n​\n\n$\n\n886\n\n​\n\n​\n\n3,126\n\n​\n\nAcquisition of equipment through increase in accounts payable, net\n\n​\n\n$\n\n(2,458)\n\n​\n\n$\n\n(2,872)\n\n​\n\n$\n\n2,626\n\n​\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n​\n\nF-8\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**(1)****OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**\n\n**Overview**\n\nFounded in 1982, TTEC Holdings, Inc. (“TTEC”, “the Company”; pronounced “T-TEC”) is a global customer experience (“CX”) technology and services outsourcing partner for marquee and high-growth brands and public sector clients. The Company designs, builds, and operates AI-enabled customer experiences across live interaction channels and data-driven digital solutions to help clients improve customer satisfaction and loyalty, increase customer revenue and profitability, and optimize overall cost to serve. As of December 31, 2025, TTEC served over 720 clients across targeted industry verticals including financial services, healthcare, public sector, communications, technology, media, entertainment, travel and hospitality, automotive and retail.\n\nThe Company operates and reports its financial results of operation through two business segments:\n\n•**TTEC Digital** is one of the largest CX technology and service providers and is focused on the intersection of Contact Center as a Service (“CCaaS”), Customer Relationship Management (“CRM”), and AI and Analytics. A professional services organization comprised of software engineers, systems architects, data scientists and CX strategists, this segment creates and implements strategic CX transformation roadmaps; sells, operates, and provides managed services for cloud platforms and premise-based CX technologies including Amazon Web Services (“AWS”), Cisco, Genesys, Google, and Microsoft; and creates proprietary IP to support industry specific and custom client needs. TTEC Digital serves clients across enterprise and small and medium-sized business segments and has a dedicated unit with government technology certifications serving the public sector.\n\n•**TTEC Engage** provides digital first, AI-enabled CX operational and managed services to support large, complex enterprise clients’ end-to-end customer interactions at scale across the world. Tailored to meet industry specific business needs, this segment delivers data-driven omnichannel customer care, customer acquisition, growth and retention services, tech support, fraud mitigation and back-office solutions. The segment’s digital first delivery model covers the entire solution lifecycle including associate recruitment, onboarding, training, delivery, workforce management and quality assurance.\n\nTTEC pursues its CX market leadership through strategic collaboration across TTEC Digital and TTEC Engage. Together, TTEC’s ability to deliver comprehensive and transformational customer experience solutions to its clients is a marketplace differentiation, including integrated AI-enabled CX technology and service solutions, go-to-market strategies, and innovative offerings.\n\nDuring 2025, TTEC Digital and TTEC Engage global operating platform delivered onshore, nearshore and offshore services in 22 countries on six continents – the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Egypt, Germany, Greece, Honduras, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, and the United Kingdom – with contribution from approximately 51,000 customer care associates, consultants, technologists, and CX professionals.\n\n**Basis of Presentation**\n\nThe Consolidated Financial Statements are comprised of the accounts of TTEC, its wholly owned subsidiaries, its 55% equity owned subsidiary Percepta, LLC, its 70% equity owned subsidiary First Call Resolution, LLC through March 31, 2023 and then 100% owned subsequently, and its 70% equity owned subsidiary Serendebyte, Inc. through December 8, 2023 and then 100% owned subsequently (see Note 2). All intercompany balances and transactions have been eliminated in consolidation.\n\nF-9\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**Use of Estimates**\n\nThe preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, litigation reserves, restructuring reserves, allowance for credit losses, contingent consideration, redeemable noncontrolling interest, and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions.\n\n**Out-of-period Adjustment**\n\nThe Consolidated Financial Statements for the year ended December 31, 2023 included an adjustment of $14.2 million to other comprehensive income and deferred tax assets, to correct for an error identified by management during the preparation of the financial statements. This adjustment was to reflect the deferred tax impact of currency translation adjustments, of which $14.2 million related to prior annual fiscal periods. Management has determined that this error was not material to the historical financial statements in any individual period or in the aggregate and did not result in the previously issued financial statements being materially misstated. As such, management recorded the correction as an out-of-period adjustment in the year ended December 31, 2023.\n\n**Cash, Cash Equivalents and Restricted Cash**\n\nCash and cash equivalents consist of cash, primarily held in interest-bearing investments, and liquid short-term investments, which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations.\n\nThe Company manages a centralized global treasury function in the United States with a focus on safeguarding and optimizing the use of its global cash and cash equivalents. The Company’s cash is held in the U.S. in U.S. dollars and outside of the U.S. in U.S. dollars and foreign currencies. The Company believes that it has effectively mitigated and managed its risk relating to its global cash through its cash management practices, banking partners, and utilization of diversified bank deposit accounts and high quality investments. However, the Company can provide no assurances that it will not sustain losses.\n\nThe following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statement of Cash Flows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, 2025**\n\n**  ​ ​ ​**\n\n**December 31, 2024**\n\n**  ​ ​ ​**\n\n**December 31, 2023**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash and cash equivalents\n\n​\n\n​\n\n$\n\n82,901\n\n \n\n$\n\n84,991\n\n \n\n$\n\n172,747\n\n​\n\nRestricted cash included in \"Prepaid and other current assets\"\n\n​\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n1,158\n\n​\n\nTotal\n\n​\n\n​\n\n$\n\n82,901\n\n \n\n$\n\n84,991\n\n \n\n$\n\n173,905\n\n​\n\n​\n\n**Concentration of Credit Risk**\n\nThe Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial due to the Company monitoring its collection processes to reduce its credit risk. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across eight investment-grade financial institutions.\n\nF-10\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**Fair Value of Financial Instruments**\n\nFair values of cash equivalents, accounts receivable, accounts payable and debt approximate the carrying amounts because of their short-term nature.\n\n**Accounts Receivable**\n\nAt the end of each quarter an allowance for credit losses will be calculated based on the current quarterly revenue multiplied by the historical loss percentage of the prior three-year period and recorded in the Consolidated Statements of Comprehensive Income (Loss). In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against this allowance when the Company determines a balance is uncollectible.\n\n**Derivatives**\n\nThe Company enters into foreign exchange forward and option contracts to reduce its exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. Upon proper qualification, these contracts are designated as cash flow hedges. The Company formally documents at the inception of the hedge all relationships between hedging instruments and hedged items as well as its risk management objective and strategy for undertaking various hedging activities.\n\nAll derivative financial instruments are reported at fair value and recorded in Prepaids and other current assets, Other long-term assets, Other current liabilities, and Other long-term liabilities in the accompanying Consolidated Balance Sheets as applicable for each period end. Changes in fair value of derivative instruments designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss), a component of Stockholders’ Equity, to the extent they are deemed effective. Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Based on the criteria established by current accounting standards, the Company’s cash flow hedge contracts are deemed to be highly effective. Any realized gains or losses resulting from the foreign currency cash flow hedges are recognized together with the hedged transaction within Revenue. Gains and losses from the settlements of the Company’s net investment hedges remain in Accumulated other comprehensive income (loss) until partial or complete liquidation of the applicable net investment.\n\nThe Company also enters into fair value derivative contracts that hedge against foreign currency exchange gains and losses primarily associated with short-term payables and receivables. Changes in the fair value of derivative instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss).\n\n**Property, Plant and Equipment**\n\nProperty, plant and equipment are stated at historical cost less accumulated depreciation and amortization. Maintenance, repairs and minor renewals are expensed as incurred.\n\nDepreciation and amortization are computed on the straight-line method based on the following estimated useful lives:\n\n​\n\n​\n\n​\n\nBuilding\n\n  ​ ​ ​\n\n30 years\n\nComputer equipment and software\n\n \n\n3 to 7 years\n\nTelephone equipment\n\n \n\n4 to 7 years\n\nFurniture and fixtures\n\n \n\n5 years\n\nLeasehold improvements\n\n \n\nLesser of economic useful life (typically 10 years) or original lease term\n\nOther\n\n \n\n3 to 7 years\n\n​\n\nF-11\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nThe Company evaluates the carrying value of property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of forecasted future cash flows.\n\n**Software Development Costs**\n\nThe Company capitalizes costs incurred to acquire or develop software for internal use. Capitalized software development costs are amortized using the straight-line method over the estimated useful life equal to the lesser of the license term or 4 or 7 years depending on the software type. The expense related to these assets has been classified as amortization expense within the income statement except for assets that are classified as cloud computing arrangements are presented in other long-term assets within the Consolidated Balance Sheets and expensed as operating expenses within the Consolidated Statements of Comprehensive Income (Loss).\n\n**Goodwill**\n\nThe Company evaluates goodwill for possible impairment at least annually on December 1, and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses a two-step process to assess the realizability of goodwill. The first step, Step 0, is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, the Company analyzes changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. A qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years. If the qualitative assessment indicates a stable or improved fair value, no further testing is required.\n\nIf a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit’s fair value has historically been closer to its carrying value, the Company will proceed to Step 1 testing where the Company calculates the fair value of a reporting unit. If Step 1 indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will record an impairment equal to the amount by which a reporting unit’s carrying value exceeds its fair value.\n\n**Other Intangible Assets**\n\nThe Company has other intangible assets that include customer relationships (definite-lived), trade names (definite-lived) and non-compete agreements (definite-lived). Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from 1 to 12 years. The Company evaluates the carrying value of its definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A definite-lived intangible asset is considered to be impaired when the forecasted undiscounted cash flows of its asset group are estimated to be less than its carrying value.\n\nThe Company evaluates indefinite-lived intangible assets for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Similar to goodwill, the Company may first use a qualitative analysis to assess the realizability of its indefinite-lived intangible assets. The qualitative analysis will include a review of changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of an indefinite-lived intangible asset. If a quantitative analysis is completed, an indefinite-lived intangible asset (i.e. trade name) is evaluated for possible impairment by comparing the fair value of the asset with its carrying value. Fair value is estimated as the discounted value of future revenues arising from a trade name using a royalty rate that a market participant would pay for use of that trade name. An impairment charge is recorded if the intangible asset’s carrying value exceeds its estimated fair value.\n\nF-12\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**Restructuring Liabilities**\n\nThe Company routinely assesses the profitability and utilization of its customer engagement centers and existing markets. In some cases, the Company has chosen to close under-performing customer engagement centers and complete reductions in workforce to enhance future profitability. Severance payments that occur from reductions in workforce are in accordance with the Company’s postemployment plans and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and reasonably estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, rather than upon commitment to a plan.\n\n**Income Taxes**\n\nAccounting for income taxes requires recognition of deferred tax assets and liabilities for the expected future income tax consequences of transactions that have been included in the Consolidated Financial Statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Gross deferred tax assets may then be reduced by a valuation allowance for amounts that do not satisfy the realization criteria established by current accounting standards.\n\nThe Company accounts for uncertain tax positions using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit. The second step is to estimate and measure the tax benefit as the amount that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. The Company evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on the consideration of several factors including changes in facts or circumstances, changes in applicable tax law, and settlement of issues under audit. The Company recognizes interest and penalties related to uncertain tax positions as a part of the Provision for income taxes in the accompanying Consolidated Statements of Comprehensive Income (Loss).\n\nDuring the fourth quarter of 2023, the Company released its indefinite reinvestment assertion. The Company has completed its analysis in regard to the full tax impact of these changes in its indefinite reinvestment reassertion and any related taxes have been recorded. The Company generally intends to limit distributions from non-U.S. subsidiaries to cash balances available in foreign jurisdictions.\n\nNo additional income taxes have been provided for any remaining outside basis difference inherent in our foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. Determination of any unrecognized deferred tax liability related to the outside basis difference in investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which we operate.\n\nThe Organization for Economic Co-operation and Development (OECD) has issued model rules establishing a global minimum tax rate of 15% applicable to certain multinational enterprises (“Pillar Two”). These rules are being implemented through domestic legislation on a jurisdiction basis, with certain jurisdictions enacting legislation effective in 2024 and others expected to enact legislation in future periods.\n\nThe Company operates in jurisdictions that have enacted or are in the process of enacting Pillar Two related legislation. Based on its current assessment, the Company does not expect the adoption of enacted legislation to have a material impact on its consolidated effective tax rate. The Company continues to monitor developments related to Pillar Two, including additional guidance issued by the OECD and legislative and administrative developments in the jurisdictions in which it operates.\n\nF-13\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**Revenue Recognition**\n\nThe Company recognizes revenue from contracts and programs when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Performance obligation is the unit of accounting for revenue recognition under the provisions of ASC Topic 606, “Revenue from Contracts with Customers” and all related amendments (“ASC 606”). A contract’s transaction price is allocated to each distinct performance obligation in recognizing revenue.\n\nThe Business Process Outsourcing (“BPO”) inbound and outbound service fees are based on either a per minute, per hour, per FTE, per transaction or per call basis, which represents the majority of our contracts. These contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For example, services for the training of the Company’s agents (which are separately billable to the customer) are a separate promise in the BPO contracts, but they are not distinct from the primary service obligations to transfer services to the customers. The performance of the customer service by the agents is highly dependent on the initial, growth, and seasonal training services provided to the agents during the life of a program. The training itself is not considered to have value to the customer on a standalone basis, and therefore, training on a standalone basis cannot be considered a separate unit of accounting. The Company therefore defers revenue from certain training services that are rendered mainly upon commencement of a new client contract or program, including seasonal programs. Revenue is also deferred when there is significant growth training in an existing program. Accordingly, recognition of initial, growth, and seasonal training revenues and associated costs (consisting primarily of labor and related expenses) are deferred and amortized over the period of economic benefit. With the exception of training, which is typically billed upfront and deferred, the remainder of revenue is invoiced on a monthly or quarterly basis as services are performed and does not create a contract asset or liability.\n\nIn addition to revenue from BPO services, revenue also consists of fees from services for program launch, professional consulting, fully-hosted or managed technology and learning innovation services. The contracts containing these service offerings may contain multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The Company forecasts its expected cost based on historical data, current prevailing wages, other direct and indirect costs incurred in recently completed contracts, market conditions, and other client specific cost considerations. For these services, the point at which the transfer of control occurs determines when revenue is recognized in a specific reporting period. Within the TTEC Digital segment, where there are product sales, the attribution of revenue is recognized when the transfer of control is completed, and the products are delivered to the client’s location. Where services are rendered to a customer, the attribution is aligned with the progress of work and is recognized over time (i.e. based on measuring the progress toward complete satisfaction of a performance obligation using an output method or an input method). Where an output method is used, revenue is recognized on the basis of direct measurements of the value to the customer of the goods or services transferred relative to the remaining goods or services promised under the contract. The majority of the Company’s services are recognized over time using the input method in which revenue is recognized on the basis of efforts or inputs toward satisfying a performance obligation (for example, resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to satisfy the performance obligation. The measures used provide faithful depiction of the transfer of goods or services to the customers. For example, revenue is recognized on certain consulting contracts based on labor hours expended as a measurement of progress where the consulting work involves input of consultants’ time. The progress is measured based on the hours expended over total number of estimated hours included in the contract multiplied by the total contract consideration. The contract consideration can be a fixed price or an hourly rate, and in either case, the use of labor hours expended as an input measure provides a faithful depiction of the transfer of services to the customers. Deferred revenues for\n\nF-14\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nthese services represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from i) receipt of license fees that are deferred due to one or more of the revenue recognition criteria not being met, and ii) the billing of annual customer support agreements, annual managed service agreements, and billings for other professional services that have not yet been performed by the Company. The Company records amounts billed and received, but not earned, as deferred revenue. These amounts are recorded in either Deferred revenue or Other long-term liabilities, as applicable, in the accompanying Consolidated Balance Sheets based on the period over which the Company expects to render services. Costs directly associated with revenue deferred, consisting primarily of labor and related expenses, are also deferred and recognized in proportion to the expected future revenue from the contract.\n\nVariable consideration exists in contracts for certain client programs that provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based conditions. Variable consideration is estimated at contract inception at its most likely value and updated at the end of each reporting period as additional performance data becomes available. Revenue related to such variable consideration is recognized only to the extent that a significant reversal of any incremental revenue is not considered probable.\n\nContract modifications are routine in the performance of the customer contracts. Contracts are often modified to account for customer mandated changes in the contract specifications or requirements, including service level changes. In most instances, contract modifications relate to goods or services that are incremental and distinctly identifiable, and, therefore, are accounted for prospectively.  \n\n*Incremental Costs to Obtain a Contract*\n\nDirect and incremental costs to obtain or fulfill a contract are capitalized, and the capitalized costs are amortized over the corresponding period of benefit, determined on a contract-by-contract basis. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a customer contract that it would not have incurred if the contract had not been obtained. Contract acquisition costs consist primarily of payment of commissions to sales personnel and are incurred when customer contracts are signed. The deferred sales commission amounts are amortized based on the expected period of economic benefit and are classified as current or non-current based on the timing of when they are expected to be recognized as an expense. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained. Sales commissions are paid for obtaining new clients only and are not paid for contract renewals or contract modifications. Capitalized costs of obtaining contracts are periodically reviewed for impairment. As of December 31, 2025 and 2024, the Company has a deferred asset of $9.5 million and $11.0 million, respectively, in Prepaids and other current assets and Other long-term assets in the Consolidated Balance Sheets, related to sales commissions.\n\nIn certain cases, the Company negotiates an upfront payment to a customer in conjunction with the execution of a contract. Such upfront payments are critical to acquisition of new business and are often used as an incentive to negotiate favorable rates from the clients and are accounted for as upfront discounts for future services. Such payments are either made in cash at the time of execution of a contract or are netted against the Company’s service invoices. Payments to customers are capitalized as contract acquisition costs and are amortized in proportion to the expected future revenue from the contract, which in most cases results in straight-line amortization over the life of the contract. Such payments are considered a reduction of the selling prices of the Company’s products or services, and therefore, are accounted for as a reduction of revenue when amortized. Such capitalized contract acquisition costs are periodically reviewed for impairment taking into consideration ongoing future cash flows expected from the contract and estimated remaining useful life of the contract.\n\nF-15\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n*Practical Expedients and Exemptions*\n\nSome of the Company’s service contracts are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. Also in alignment with ASC 606-10-50-14, the Company does not disclose the value of unsatisfied performance obligations for contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. Additionally, the Company’s standard payment terms are less than one year from transfer of goods or services. Given the foregoing, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. Pursuant to the Company’s election of the practical expedient under ASC 606-10-32-2A, sales, value add, and other taxes that are collected from customers concurrent with revenue-producing activities, which the Company has an obligation to remit to the governmental authorities, are excluded from revenue.\n\n**Lease Expense**\n\nThe Company has negotiated certain rent holidays, landlord/tenant incentives and escalations in the base price of lease payments over the initial term of its operating leases. The initial term could include the “build-out” period of leases, where no lease payments are typically due. The Company recognizes rent holidays and rent escalations on a straight-line basis to lease expense over the lease term. The landlord/tenant incentives are recorded as a reduction to the right of use asset and depreciated on a straight line basis over the remaining lease term once the assets are placed in service.\n\n**Equity-Based Compensation Expense**\n\nEquity-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, which is typically the vesting term of the share-based payment award. The Company estimates the forfeiture rate annually based on its historical experience of forfeited awards.\n\n**Foreign Currency Translation**\n\nThe assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated at the exchange rates in effect on the last day of the period and income and expenses are translated using the monthly average exchange rates in effect for the period in which the items occur. Foreign currency translation gains and losses are recorded in Accumulated other comprehensive income (loss) within Stockholders’ Equity. Foreign currency transaction gains and losses are included in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss).\n\n**Liquidity**\n\nAs discussed in Note 12, the Company’s Credit Agreement includes a number of financial covenants and operating restrictions, failure to comply with which could result in a default under the Credit Agreement. On November 5, 2025, the Company entered into a Tenth Amendment (the “Tenth Amendment”) to the Credit Agreement, which extends the maturity date to November 23, 2027 and modifies certain other material terms of the Credit Facility, including the size of the facility, pricing, and certain covenants. The Tenth Amendment is discussed in more detail in Note 12. As of the issuance of these Consolidated Financial Statements, the Company believes it has sufficient cash on hand, positive working capital, and availability to access additional cash under the Credit Facility to meet its business operating requirements and make its capital expenditures and to continue to comply with the financial covenants under the Credit Agreement for the next 12 months from the issuance of these financial statements. In the event that the Company does not remain in compliance with the financial covenants under the Credit Agreement, it may need to negotiate additional amendments to or waivers of the terms of such credit facilities, refinance its debt, reduce discretionary spending or raise additional capital.\n\nF-16\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**Recently Adopted Accounting Pronouncements**\n\nIn November 2023, the FASB issued ASU 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures” related to disclosures regarding a public entity’s reportable segments and provides more detailed information about a reportable segment’s expenses. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with retrospective application required. The Company adopted the standard January 1, 2024. The adoption resulted in the Company adding the required detailed segment information within the Company’s segment disclosure footnote.\n\nIn July 2025, the FASB issued ASU 2025-05, “Financial Instruments – Credit Losses” which related to measurement of credit losses for accounts receivable and contract assets and provides a practical expedient. When developing reasonable and supportable forecasts as part of estimating credit losses, all entities may elect a practical expedient that assumes current conditions as of the balance sheet do not change for the remaining life of the asset. The ASU is effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. The Company adopted the standard September 30, 2025. The adoption did not impact the Company’s consolidated balance sheet or income statement.\n\nIn December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” to enhance the transparency and decision usefulness of income tax disclosures. The ASU is effective for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company adopted the standard December 31, 2025, prospectively to all periods presented in the financial statements. The adoption resulted in the Company adding the improvements within the Company’s income tax disclosure footnote. The adoption did not impact the Company’s consolidated balance sheets or income statements.\n\n**Other Accounting Pronouncements**\n\nIn November 2024, the FASB issued ASU 2024-03, “Disaggregation of Income statement expenses” in response to longstanding requests from investors for more information about an entity’s expenses, specifically categories of expenses such as (purchases of inventory, employee compensation, depreciation, and amortization, and depletion). The ASU is effective for fiscal years beginning after December 15, 2026, with retrospective application permitted. The Company is still evaluating the potential impact of the pronouncement.\n\nIn September 2025, the FASB issued ASU 2025-06, “Intangibles-Goodwill and Other Internal Use Software” which was issued to modernize the accounting for software costs and removes all references to prescriptive and sequential software development stages. The ASU is effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those fiscal reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is still evaluating the potential impact of the pronouncement.\n\nIn November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging” which was issued to more closely align hedge accounting with the economics of an entity’s risk management activities. The ASU is effective for fiscal years beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is still evaluating the potential impact of the pronouncement.\n\n​\n\n​\n\n​\n\n**(2)****ACQUISITIONS**\n\n*Serendebyte*\n\nIn connection with the acquisition by TTEC Digital, LLC of a 70% interest in Serendebyte Inc. (“Serendebyte”), Serendebyte’s founder exercised his put rights on December 8, 2023, which required TTEC to acquire the remaining 30% interest in Serendebyte. As part of the exercise, the Serendebyte founder failed to fulfill the agreed provisions of the sale and purchase agreement that parties executed on February 7, 2020.\n\nF-17\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nIn connection with triggering the option, on December 8, 2023, a $0.3 million accrual was reclassified from Redeemable noncontrolling interest to Accrued expenses and the remaining balance was reclassified to Additional paid in capital.\n\n*FCR*\n\nPursuant to the Membership Interest Purchase Agreement of October 26, 2019 between Ortana Holdings, Inc. and TTEC Services Corporation for the acquisition by TTEC of a 70% interest in First Call Resolution, LLC (“FCR” and “FCR MIPA”, respectively), Ortana Holdings exercised its put rights in January 2023, which required TTEC to acquire Ortana Holdings’ remaining 30% interest in FCR. The purchase price for the remaining 30% interest was determined based on the express provisions of the FCR MIPA and was based on FCR’s performance during 2022. The buyout agreement was signed on April 4, 2023 and reflected a buyout purchase price of $22.4 million.\n\nIn connection with the triggering of the option, as of March 31, 2023, the $22.4 million purchase price was reclassified from Redeemable noncontrolling interest to Accrued expenses and the remaining balance of $20.5 million was reclassified to Additional paid in capital. In February 2023, a $9.2 million payment related to excess cash distribution was completed and in April 2023, the final payment of $22.4 million was completed.\n\n*Certain Assets of Faneuil*\n\nOn April 1, 2022, the Company completed an asset acquisition through its subsidiary TTEC Government Solutions LLC, of certain public sector citizen experience contracts in the transportation infrastructure and healthcare exchange industries from Faneuil, Inc., a subsidiary of ALJ Regional Holdings, Inc., (“the Faneuil Transaction”). The acquired business is operated as part of the TTEC Engage segment and was fully consolidated into the financial statements of TTEC. The Faneuil Transaction was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date.\n\nTotal cash paid at the time of acquisition was $142.4 million. The Faneuil Transaction included contingent payments that were based on the revenue and EBITDA performance of certain contracts with the value of the contingent payments to be determined.\n\nDuring the second quarter of 2023, the contingent payment obligation was modified to a minimum payment of $7.4 million and a maximum payment of $10.4 million. An initial payment of $7.4 million was completed in May 2023. During 2023, a combined $3.0 million net expense was recorded related to fair value adjustments for the estimated contingent payment based on changes in estimated EBITDA, the timing of cash flows and market interest rate changes. During 2024, a combined $1.5 million net gain was recorded related to fair value adjustments for the estimated contingent consideration payment based on changes in estimated EBITDA, the timing of cash flows and market interest rate changes. These benefits (expenses) were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). The earn-out period was completed at the end of January 2025. Based on final results, no final earn-out payment was required.\n\n**Assets Held for Sale**\n\nIn the second quarter of 2024, the Company reclassified $29.4 million from Property, plant and equipment, net to Assets held for sale as the Company expected to sell its former headquarters building in Englewood, Colorado within the next twelve months. This included $16.7 million from leasehold improvements, $6.7 million from buildings, $5.9 million from land, and $0.1 million from other Property, plant and equipment categories. These assets were allocated 85% to the TTEC Engage segment and 15% to the TTEC Digital segment. Funds received were used to reduce the Company’s existing debt. The Company ceased depreciation on the assets upon reclassification. The estimated fair value less costs to sell the assets held for sale exceeded their carrying value as of the quarter ended June 30, 2024 and no impairment was considered necessary. On November 5, 2024, TTEC Holdings, Inc., through its wholly owned subsidiary, TTEC Services Corporation, entered into a definitive agreement to sell and subsequently closed the sale of its former headquarters building in Englewood, Colorado.\n\n​\n\n​\n\n​\n\nF-18\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**(3)****SEGMENT INFORMATION**\n\nThe Company has two reportable segments, TTEC Digital and TTEC Engage based on nature of product and independent management of each business segment. Each segment is led by a senior executive reporting to the CEO and the products and services sold are described below. Resources are allocated and performance is assessed by our CEO, who holds the function of Chief Operating Decision Maker (“CODM”) for the purposes of these disclosures. The CODM uses income from operations to assess the performance of each segment in the budgeting and forecasting process and when making decisions regarding allocating capital and personnel to the segments.\n\n**TTEC Digital and the CX Technology Services Industry**\n\nTTEC Digital clients are seeking solutions in many areas including cost optimization, CX technology modernization, inclusive of migrating to a more agile cloud-based ecosystem, improved CX talent and expertise, and practical solutions to further enable CX applications, including the design, implementation and pragmatic delivery of AI capabilities. TTEC Digital takes a technology agnostic approach to these challenges and focuses on designing and delivering solutions to each client’s specific business needs at the intersection of contact center, CRM, and AI and Analytics. TTEC Digital supports the majority of CX platform and solution requirements through its strategic partnerships with the leading CX software vendors including Genesys, Microsoft, Cisco, AWS, Google, Salesforce, ServiceNow, and Nice among others.\n\nTTEC Digital’s solutions are built to respond to market needs for both enterprise and small and medium-sized business clients. AI design and delivery capabilities are woven across all five pillars of the Company offerings.\n\n•Professional Services: System design, configuration and integration\n\n•Managed Services: Cloud application and premise support\n\n•CX Consulting: Transformation strategy and design\n\n•CX Data and Analytics: Data science, engineering, and visualization\n\n•IP & Software: Custom software engineering through TTEC Digital’s IP and Software division\n\nThe segment has a three-pronged go to market strategy that includes growing existing client relationships, partner channel motions and general market development.\n\n**TTEC Engage and the CX BPO Services Industry**\n\nThe TTEC Engage segment’s solutions are built to respond to the following market needs for clients.\n\n•Customer Support  \n\n•Tech Support\n\n•Revenue Generation and Growth Services\n\n•Fraud Mitigation\n\n•AI Operations, including data annotation and labeling\n\n•Back-office Support\n\nTTEC Engage goes to market through a vertical approach with customized solutions that include industry specific talent, technology, certifications, and capabilities. For example, in the Banking, Financial Services and Insurance (BFSI) vertical, we support several lines of business with customized offerings for retail banking, online banking, credit card, property and casualty and loans. In healthcare, the segment supports care, technical support, revenue generation and back-office capabilities to meet the needs of payer, provider, clinical and pharma clients.\n\nThe Company allocates to each segment its portion of corporate operating expenses following the Company’s standard accounting policies.\n\nF-19\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nThe following tables present certain financial data by segment (in thousands). The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.\n\n**For the Year Ended December 31, 2025**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**TTEC Engage**\n\n​\n\n**TTEC Digital**\n\n​\n\n**Total**\n\n​\n\nRevenue\n\n​\n\n​\n\n$\n\n1,667,698\n\n​\n\n$\n\n469,201\n\n​\n\n$\n\n2,136,899\n\n​\n\nCost of services (exclusive of depreciation and amortization presented separately below) (1)\n\n​\n\n​\n\n​\n\n1,349,281\n\n​\n\n​\n\n321,406\n\n​\n\n​\n\n1,670,687\n\n​\n\nSelling, general and administrative\n\n​\n\n​\n\n​\n\n187,431\n\n​\n\n​\n\n92,902\n\n​\n\n​\n\n280,333\n\n​\n\nDepreciation and amortization\n\n​\n\n​\n\n​\n\n64,551\n\n​\n\n​\n\n25,209\n\n​\n\n​\n\n89,760\n\n​\n\nOther segment items(2)\n\n​\n\n​\n\n​\n\n5,760\n\n​\n\n​\n\n207,504\n\n​\n\n​\n\n213,264\n\n​\n\nIncome from operations\n\n​\n\n​\n\n​\n\n60,675\n\n​\n\n​\n\n(177,820)\n\n​\n\n​\n\n(117,145)\n\n​\n\nInterest income\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n9,368\n\n​\n\nInterest expense\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(71,706)\n\n​\n\nOther income (expense), net\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n9,246\n\n​\n\nIncome before income taxes\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(170,237)\n\n​\n\n​\n\n**For the year ended December 31, 2024**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**TTEC Engage**\n\n​\n\n**TTEC Digital**\n\n​\n\n**Total**\n\n​\n\nRevenue\n\n​\n\n​\n\n$\n\n1,748,569\n\n​\n\n$\n\n459,018\n\n​\n\n$\n\n2,207,587\n\n​\n\nCost of services (exclusive of depreciation and amortization presented separately below) (1)\n\n​\n\n​\n\n​\n\n1,423,747\n\n​\n\n​\n\n312,118\n\n​\n\n​\n\n1,735,865\n\n​\n\nSelling, general and administrative\n\n​\n\n​\n\n​\n\n201,718\n\n​\n\n​\n\n91,324\n\n​\n\n​\n\n293,042\n\n​\n\nDepreciation and amortization\n\n​\n\n​\n\n​\n\n70,075\n\n​\n\n​\n\n27,880\n\n​\n\n​\n\n97,955\n\n​\n\nOther segment items(2)\n\n​\n\n​\n\n​\n\n250,240\n\n​\n\n​\n\n4,005\n\n​\n\n​\n\n254,245\n\n​\n\nIncome from operations\n\n​\n\n​\n\n​\n\n(197,211)\n\n​\n\n​\n\n23,691\n\n​\n\n​\n\n(173,520)\n\n​\n\nInterest income\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n2,732\n\n​\n\nInterest expense\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(84,315)\n\n​\n\nOther income (expense), net\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n18,586\n\n​\n\nIncome before income taxes\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(236,517)\n\n​\n\n​\n\n**For the Year Ended December 31, 2023**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**TTEC Engage**\n\n​\n\n**TTEC Digital**\n\n​\n\n**Total**\n\n​\n\nRevenue\n\n​\n\n​\n\n$\n\n1,975,935\n\n​\n\n$\n\n486,882\n\n​\n\n$\n\n2,462,817\n\n​\n\nCost of services (exclusive of depreciation and amortization presented separately below) (1)\n\n​\n\n​\n\n​\n\n1,598,907\n\n​\n\n​\n\n333,970\n\n​\n\n​\n\n1,932,877\n\n​\n\nSelling, general and administrative\n\n​\n\n​\n\n​\n\n201,634\n\n​\n\n​\n\n89,239\n\n​\n\n​\n\n290,873\n\n​\n\nDepreciation and amortization\n\n​\n\n​\n\n​\n\n74,040\n\n​\n\n​\n\n27,232\n\n​\n\n​\n\n101,272\n\n​\n\nOther segment items(2)\n\n​\n\n​\n\n​\n\n13,179\n\n​\n\n​\n\n6,595\n\n​\n\n​\n\n19,774\n\n​\n\nIncome from operations\n\n​\n\n​\n\n​\n\n88,175\n\n​\n\n​\n\n29,846\n\n​\n\n​\n\n118,021\n\n​\n\nInterest income\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n5,150\n\n​\n\nInterest expense\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(78,321)\n\n​\n\nOther income (expense), net\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(4,126)\n\n​\n\nIncome before income taxes\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n40,724\n\n​\n\n​\n\n(1) Cost of services primarily includes employee related and technology costs.\n\n(2) Other segment items include impairment losses and restructuring charges.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the Year Ended December 31,**\n\n** **\n\n​\n\n** **\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\n**Capital Expenditures**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTTEC Digital\n\n​\n\n​\n\n$\n\n7,997\n\n​\n\n$\n\n8,245\n\n​\n\n$\n\n8,232\n\n​\n\nTTEC Engage\n\n​\n\n​\n\n \n\n30,112\n\n​\n\n \n\n36,928\n\n​\n\n \n\n59,607\n\n​\n\nTotal\n\n​\n\n​\n\n$\n\n38,109\n\n​\n\n$\n\n45,173\n\n​\n\n$\n\n67,839\n\n​\n\n​\n\nF-20\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31,**\n\n​\n\n​\n\n​\n\n​\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n​\n\n**Total Assets**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTTEC Digital\n\n​\n\n​\n\n$\n\n566,057\n\n \n\n$\n\n776,099\n\n​\n\nTTEC Engage\n\n​\n\n​\n\n \n\n933,025\n\n​\n\n \n\n977,281\n\n​\n\nTotal\n\n​\n\n​\n\n$\n\n1,499,082\n\n \n\n$\n\n1,753,380\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nThe following tables present certain financial data based upon the geographic location where the services are provided (in thousands).\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of and for the**\n\n** **\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\n**Revenue**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nUnited States / Canada\n\n​\n\n​\n\n$\n\n1,451,928\n\n​\n\n$\n\n1,497,887\n\n​\n\n$\n\n1,710,716\n\n​\n\nPhilippines / Asia Pacific / India\n\n​\n\n​\n\n \n\n374,973\n\n​\n\n \n\n419,856\n\n​\n\n \n\n477,455\n\n​\n\nEurope / Middle East / Africa\n\n​\n\n​\n\n \n\n203,544\n\n​\n\n \n\n174,155\n\n​\n\n \n\n142,665\n\n​\n\nLatin America\n\n​\n\n​\n\n \n\n106,454\n\n​\n\n \n\n115,689\n\n​\n\n \n\n131,981\n\n​\n\nTotal\n\n​\n\n​\n\n$\n\n2,136,899\n\n​\n\n$\n\n2,207,587\n\n​\n\n$\n\n2,462,817\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Property, plant and equipment, gross**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nUnited States / Canada\n\n​\n\n​\n\n$\n\n342,528\n\n​\n\n$\n\n427,631\n\n​\n\n​\n\n​\n\n​\n\nPhilippines / Asia Pacific / India\n\n​\n\n​\n\n \n\n143,272\n\n​\n\n \n\n150,567\n\n​\n\n \n\n​\n\n​\n\nEurope / Middle East / Africa\n\n​\n\n​\n\n \n\n45,675\n\n​\n\n \n\n39,952\n\n​\n\n \n\n​\n\n​\n\nLatin America\n\n​\n\n​\n\n \n\n41,430\n\n​\n\n \n\n43,967\n\n​\n\n \n\n​\n\n​\n\nTotal\n\n​\n\n​\n\n$\n\n572,905\n\n​\n\n$\n\n662,117\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Other long-term assets**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nUnited States / Canada\n\n​\n\n​\n\n$\n\n102,881\n\n​\n\n$\n\n89,849\n\n​\n\n​\n\n​\n\n​\n\nPhilippines / Asia Pacific / India\n\n​\n\n​\n\n \n\n5,476\n\n​\n\n \n\n9,298\n\n​\n\n \n\n​\n\n​\n\nEurope / Middle East / Africa\n\n​\n\n​\n\n \n\n1,336\n\n​\n\n \n\n1,559\n\n​\n\n \n\n​\n\n​\n\nLatin America\n\n​\n\n​\n\n \n\n654\n\n​\n\n \n\n780\n\n​\n\n \n\n​\n\n​\n\nTotal\n\n​\n\n​\n\n$\n\n110,347\n\n​\n\n$\n\n101,486\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(4)****ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS**\n\nAccounts receivable, net in the accompanying Consolidated Balance Sheets consists of the following (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n** **\n\nAccounts receivable\n\n​\n\n$\n\n460,737\n\n​\n\n$\n\n457,817\n\n​\n\nLess: Allowance for credit losses\n\n​\n\n \n\n(4,908)\n\n​\n\n \n\n(5,244)\n\n​\n\nAccounts receivable, net\n\n​\n\n$\n\n455,829\n\n​\n\n$\n\n452,573\n\n​\n\n​\n\nAt the end of each quarter, an allowance for credit losses has been calculated based on the current quarterly revenue multiplied by the historical loss percentage of the prior three-year period and recorded in the income statement. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against this allowance when the Company determines a balance is uncollectible.\n\nF-21\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nActivity in the Company’s Allowance for credit losses consists of the following (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\nBalance, beginning of year\n\n​\n\n$\n\n5,244\n\n​\n\n$\n\n2,248\n\n​\n\n$\n\n3,524\n\n​\n\nProvision for credit losses\n\n​\n\n \n\n980\n\n​\n\n \n\n3,596\n\n​\n\n \n\n2,009\n\n​\n\nUncollectible receivables written-off\n\n​\n\n \n\n(1,316)\n\n​\n\n \n\n(908)\n\n​\n\n \n\n(3,641)\n\n​\n\nEffect of foreign currency and other\n\n​\n\n​\n\n—\n\n​\n\n​\n\n308\n\n​\n\n​\n\n356\n\n​\n\nBalance, end of year\n\n​\n\n$\n\n4,908\n\n​\n\n$\n\n5,244\n\n​\n\n$\n\n2,248\n\n​\n\n​\n\n**Significant Clients**\n\nThe Company had one client that contributed in excess of 10% of total revenue for each of the years ended December 31, 2025, 2024 and 2023. This client operates in the automotive industry and is included in the TTEC Engage segment. The revenue from this client as a percentage of total revenue is as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n**2024**\n\n​\n\n**2023**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAutomotive client\n\n​\n\n11\n\n%  \n\n​\n\n11\n\n%  \n\n​\n\n10\n\n%\n\n​\n\n​\n\nAccounts receivable from this client was as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAutomotive client\n\n​\n\n$\n\n31,266\n\n​\n\n$\n\n32,773\n\n​\n\n$\n\n35,514\n\n​\n\n​\n\nThe Company does have clients with aggregate revenue exceeding $100 million annually and the loss of one or more of these clients could have a material adverse effect on the Company’s business, operating results, or cash flows. To mitigate this risk, the Company’s business arrangements with these larger clients are structured as multiple contracts with different statements of work that are specific to a different line of business service; each of these contracts have different durations and renewal dates and a revenue opportunity below the $100 million aggregate. In the first quarter of 2024, one of our larger financial services clients notified us that it is exiting one of the lines of business that we support.\n\nTo limit the Company’s credit risk with its clients, management performs periodic credit evaluations, maintains allowances for credit losses and may require pre-payment for services from certain clients whose financial stability practices raise concerns. Based on currently available information, management does not believe significant credit risk existed as of December 31, 2025, beyond what was already recognized.\n\n**Accounts Receivable Factoring Agreement**\n\nIn the third quarter of 2024, the Company terminated its Uncommitted Receivables Purchase Agreement (“Agreement”) with BMO Bank, N.A. (“Bank”, or “BMO”), under the terms of which the Company had the right to sell, on a revolving basis, U.S. accounts receivables of certain clients at a discount to the Bank for cash on a limited recourse basis. The sales of accounts receivable in accordance with the prior Agreement are reflected as a reduction of Accounts Receivable, net on the Consolidated Balance Sheets. The Company retained no interest in the sold receivables but did retain all collection responsibilities on behalf of the Bank. The discount on the accounts receivable sold is recorded within Other expense, net in the Consolidated Statements of Comprehensive Income (Loss). The cash proceeds from the prior Agreement are included in the change in accounts receivable within the operating activities section of the Consolidated Statements of Cash Flow.\n\n​\n\n​\n\nF-22\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**(5)****PROPERTY, PLANT AND EQUIPMENT**\n\n​\n\nProperty, plant and equipment consisted of the following (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n** **\n\nComputer equipment and software\n\n​\n\n$\n\n347,181\n\n​\n\n$\n\n402,768\n\n​\n\nTelephone equipment\n\n​\n\n \n\n32,361\n\n​\n\n \n\n40,018\n\n​\n\nFurniture and fixtures\n\n​\n\n \n\n51,571\n\n​\n\n \n\n57,005\n\n​\n\nLeasehold improvements\n\n​\n\n \n\n140,978\n\n​\n\n \n\n162,300\n\n​\n\nMotor vehicles\n\n​\n\n \n\n30\n\n​\n\n \n\n26\n\n​\n\nConstruction-in-progress and other\n\n​\n\n \n\n784\n\n​\n\n \n\n—\n\n​\n\nProperty, plant and equipment, gross\n\n​\n\n \n\n572,905\n\n​\n\n \n\n662,117\n\n​\n\nLess: Accumulated depreciation and amortization\n\n​\n\n \n\n(461,127)\n\n​\n\n \n\n(530,066)\n\n​\n\nProperty, plant and equipment, net\n\n​\n\n$\n\n111,778\n\n​\n\n$\n\n132,051\n\n​\n\n​\n\nDepreciation and amortization expense for property, plant and equipment was $53.9 million, $61.2 million and $64.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.\n\nIncluded in the computer equipment and software is internally developed software of $55.9 million net and $54.4 million net as of December 31, 2025 and 2024, respectively. During 2025, 2024 and 2023, impairments of internally developed software of $0.2 million, $3.7 million and $0.1 million, respectively, were expensed and included in Impairment losses in the Consolidated Statements of Comprehensive Income (Loss).\n\nOn November 5, 2024, TTEC Holdings, Inc., through its wholly-owned subsidiary, TTEC Services Corporation, entered into a definitive agreement to sell and subsequently closed the sale of a real estate asset in Englewood, Colorado for $45.5 million, subject to certain customary adjustments. The Company recorded a pre-tax gain of approximately $15.5 million upon close of the transaction in the fourth quarter of 2024 in other income (expense), net within the Consolidated Statements of Comprehensive Income (Loss). The Company utilized the proceeds from the sale to reduce its outstanding balance under its revolving line of credit.\n\n​\n\n​\n\n​\n\n**(6)****GOODWILL**\n\nGoodwill consisted of the following (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Effect of**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**December 31,**\n\n​\n\n**Acquisitions /**\n\n​\n\n​\n\n​\n\n​\n\n**Foreign**\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n​\n\n**2024**\n\n​\n\n**Adjustments**\n\n​\n\n**Impairments**\n\n​\n\n**Currency**\n\n​\n\n**2025**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTTEC Digital\n\n​\n\n$\n\n498,213\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(205,367)\n\n​\n\n$\n\n2,356\n\n​\n\n$\n\n295,202\n\n​\n\nTTEC Engage\n\n​\n\n \n\n72,984\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n492\n\n​\n\n \n\n73,476\n\n​\n\nTotal\n\n​\n\n$\n\n571,197\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(205,367)\n\n​\n\n$\n\n2,848\n\n​\n\n$\n\n368,678\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Effect of**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**December 31,**\n\n​\n\n**Acquisitions /**\n\n​\n\n​\n\n​\n\n​\n\n**Foreign**\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n​\n\n**2023**\n\n​\n\n**Adjustments**\n\n​\n\n**Impairments**\n\n​\n\n**Currency**\n\n​\n\n**2024**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTTEC Digital\n\n​\n\n$\n\n500,576\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(2,363)\n\n​\n\n$\n\n498,213\n\n​\n\nTTEC Engage\n\n​\n\n \n\n308,412\n\n​\n\n \n\n—\n\n​\n\n \n\n(233,532)\n\n​\n\n \n\n(1,896)\n\n​\n\n \n\n72,984\n\n​\n\nTotal\n\n​\n\n$\n\n808,988\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(233,532)\n\n​\n\n$\n\n(4,259)\n\n​\n\n$\n\n571,197\n\n​\n\n​\n\nF-23\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**Impairment**\n\nThe Company has three reporting units with goodwill and performs a goodwill impairment test on at least an annual basis. The Company conducts its annual goodwill impairment test during the fourth quarter, or more frequently, if indicators of impairment exist. During the first, second, and third quarters of 2025, the Company concluded there were no triggering events and completed its qualitative assessment of impairment indicators, which included, among other things, an assessment of changes in macroeconomic conditions, comparison of the actual results to those forecasted in the most recent annual impairment test and performed sensitivity analysis on key assumptions.\n\nFor the annual goodwill impairment analysis, the Company elected to perform a Step 1 evaluation for all of its reporting units, which includes comparing a reporting unit’s estimated fair value to its carrying value. The determination of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term growth rates for the businesses, the useful lives over which the cash flows will occur and determination of appropriate discount rates (based in part on the Company’s weighted average cost of capital). Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. As of December 1, 2025, the date of the annual impairment testing, the Company concluded that for the Engage and Digital Professional Services reporting units, resulting fair values were in excess of the respective carrying values and the goodwill for those reporting units was not impaired. The resulting fair value of the Digital Recurring reporting unit decreased below its carrying value, which resulted in recording a $193.0 million noncash pre-tax impairment charge. Recognition of this non-cash goodwill impairment charge resulted in a tax benefit that generated an incremental deferred tax asset of $12.4 million to the reporting unit’s carrying value. Accordingly, the Company recorded an additional non-cash charge of $12.4 million to reduce the Company’s carrying value to its previously determined fair value in accordance with the applicable goodwill impairment guidance. In total, a non-cash impairment loss of $205.4 million was recognized for the fourth quarter ended December 31, 2025.\n\nDuring the Company’s annual impairment testing as of December 1, 2025, the Company identified one reporting unit, Digital Professional Services, being at risk for future impairment. The carrying value of Digital Professional Services was $228.8 million at December 1, 2025, including approximately $189.7 million of goodwill. Based on the Company’s assessment, the estimated fair value of the Digital Professional Services reporting unit exceeded its carrying value by approximately 8%. If all assumptions are held constant, either a 0.5% increase in the discount rate or a 4.0% decrease in each year’s projected revenue over the forecast period would result in approximately a $17.7 million decrease in the estimated fair value of the Digital Professional Services reporting unit. Such a change in either of these assumptions individually would have resulted in the Digital Professional Services reporting unit failing Step 1 of the goodwill impairment analysis on December 1, 2025.\n\nAs an international outsourcing agent, TTEC’s revenue and cash flows are susceptible to global economic conditions and client business volumes. In performing the Step 1 evaluation, the reporting unit’s current backlog and pipeline of customer business were considered, as well as inflation rates, gross domestic product rates, historical revenue growth and profitability, and state of the CX industry. The estimates of fair value were based on generally accepted valuation techniques and information available at the date of the assessment, which incorporated management’s assumptions about expected revenues, future cash flows and available market information for comparable companies. The process of evaluating the fair value of the reporting units is highly subjective and requires significant judgment and estimates as the reporting units operate in a number of markets and geographical regions. The Company used a market approach and an income approach to determine its best estimates of fair value which incorporated the following significant assumptions:\n\n●Revenue projections, including revenue growth during the forecast periods ranging from (23.3)% to 15.0% and revenue terminal growth rates between 1.8% and 3.0%;\n\n●EBITDA margin projections held relatively flat over the forecast periods ranging from 8.0% to 20.0%;\n\n●Estimated income tax rates of 26.1% to 26.5%;\n\n●Estimated working capital of 4.5% to 17.9% of revenue;\n\n●Estimated capital expenditures ranging from 1.0% to 2.6% of revenue;\n\nF-24\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n●Discount rates ranging from 15.0% to 16.5% based on various inputs, including the risks associated with the specific reporting units, the Company’s capital structure, the country of operations as well as their revenue growth and EBITDA margin assumptions;\n\n●Guideline public company revenue multiples of 0.4 to 1.5 and EBITDA multiples of 4.0 to 11.5;\n\n●Guideline transaction revenue multiples of 0.2 to 9.8; and\n\n●Market participant acquisition premiums of 0.0% to 118.8%.\n\n​\n\n​\n\n**(7)****OTHER INTANGIBLE ASSETS**\n\nOther intangible assets, net which are included in the accompanying Consolidated Balance Sheets consisted of the following (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Acquisitions**\n\n**  ​ ​ ​**\n\n**Effect of**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**December 31,**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**and**\n\n​\n\n**Foreign**\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n​\n\n**2024**\n\n​\n\n**Amortization**\n\n​\n\n**Impairments**\n\n​\n\n**Adjustments**\n\n​\n\n**Currency**\n\n​\n\n**2025**\n\n** **\n\nCustomer relationships, gross\n\n​\n\n$\n\n352,711\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n654\n\n​\n\n$\n\n353,365\n\n​\n\nCustomer relationships - accumulated amortization\n\n​\n\n \n\n(188,010)\n\n​\n\n \n\n(30,898)\n\n​\n\n \n\n—\n\n \n\n​\n\n—\n\n \n\n​\n\n(838)\n\n​\n\n \n\n(219,746)\n\n​\n\nOther intangible assets, gross\n\n​\n\n \n\n20,843\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n \n\n​\n\n—\n\n \n\n​\n\n296\n\n​\n\n \n\n21,139\n\n​\n\nOther intangible assets - accumulated amortization\n\n​\n\n \n\n(20,736)\n\n​\n\n \n\n(38)\n\n​\n\n \n\n—\n\n \n\n​\n\n—\n\n \n\n​\n\n(296)\n\n​\n\n \n\n(21,070)\n\n​\n\nOther intangible assets, net\n\n​\n\n$\n\n164,808\n\n​\n\n$\n\n(30,936)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(184)\n\n​\n\n$\n\n133,688\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**Acquisitions**\n\n**  ​ ​ ​**\n\n**Effect of**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**December 31,**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**and**\n\n​\n\n**Foreign**\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n​\n\n**2023**\n\n​\n\n**Amortization**\n\n​\n\n**Impairments**\n\n​\n\n**Adjustments**\n\n​\n\n**Currency**\n\n​\n\n**2024**\n\n** **\n\nCustomer relationships, gross\n\n​\n\n$\n\n348,673\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n7,198\n\n​\n\n$\n\n(3,160)\n\n​\n\n$\n\n352,711\n\n​\n\nCustomer relationships - accumulated amortization\n\n​\n\n \n\n(150,385)\n\n​\n\n \n\n(32,939)\n\n​\n\n \n\n—\n\n​\n\n \n\n(7,198)\n\n​\n\n \n\n2,512\n\n​\n\n \n\n(188,010)\n\n​\n\nOther intangible assets, gross\n\n​\n\n \n\n21,099\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n(1)\n\n​\n\n \n\n(255)\n\n​\n\n \n\n20,843\n\n​\n\nOther intangible assets - accumulated amortization\n\n​\n\n \n\n(20,954)\n\n​\n\n \n\n(38)\n\n​\n\n \n\n—\n\n​\n\n \n\n1\n\n​\n\n \n\n255\n\n​\n\n \n\n(20,736)\n\n​\n\nOther intangible assets, net\n\n​\n\n$\n\n198,433\n\n​\n\n$\n\n(32,977)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(648)\n\n​\n\n$\n\n164,808\n\n​\n\n​\n\nCustomer relationships are being amortized over the remaining weighted average useful life of 4.7 years and other intangible assets are being amortized over the remaining weighted average useful life of 6.8 years. Amortization expense related to intangible assets was $30.9 million, $33.0 million and $35.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.\n\nExpected future amortization of other intangible assets as of December 31, 2025 is as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n2026\n\n  ​ ​ ​\n\n$\n\n30,822\n\n2027\n\n​\n\n \n\n30,822\n\n2028\n\n​\n\n \n\n30,071\n\n2029\n\n​\n\n \n\n24,272\n\n2030\n\n​\n\n \n\n10,019\n\nThereafter\n\n​\n\n \n\n7,682\n\nTotal\n\n​\n\n$\n\n133,688\n\n​\n\n​\n\n​\n\n**(8)****DERIVATIVES**\n\nTTEC’s Financial Risk Management Committee monitors cash flow and fair value foreign exchange exposures and interest rate exposures on a worldwide basis, assesses the potential economics and earnings impact from foreign exchange and/or interest rate fluctuations, and deploys risk management policies and solutions to reduce volatility related to TTEC’s exposure to foreign exchange rate changes and interest rate changes.\n\nF-25\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nThe Company enters into foreign exchange forward and option contracts to reduce its exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. Upon proper qualification, these contracts are designated as cash flow hedges. The Company formally documents at the inception of the hedge all relationships between hedging instruments and hedged items as well as its risk management objective and strategy for undertaking various hedging activities.\n\nThe Company also enters into fair value derivative contracts that hedge against foreign currency exchange gains and losses primarily associated with short-term payables and receivables. These swap contracts are not designated as hedges under ASC Topic 815, *Derivatives and Hedging*.\n\nIt is the Company’s policy to only enter into derivative contracts with investment grade counterparty financial institutions, and correspondingly, the fair value of derivative assets considers, among other factors, the creditworthiness of these counterparties. Conversely, the fair value of derivative liabilities reflects the Company’s creditworthiness. As of December 31, 2025, the Company has not experienced, nor does it anticipate, any issues related to derivative counterparty defaults.\n\nAll derivative financial instruments are reported at gross fair value and recorded in Prepaids and other current assets, Other long-term assets, Other current liabilities, and Other long-term liabilities in the accompanying Consolidated Balance Sheets as applicable for each period end.\n\n**Fair Value of Derivative Instruments**\n\nThe fair value and location of derivatives in the Consolidated Balance Sheets as of December 31, 2025 and December 31, 2024 were as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, 2025**\n\n** **\n\n​\n\n​\n\n**Designated**\n\n**Not Designated**\n\n** **\n\n​\n\n​\n\n**as Hedging**\n\n**as Hedging**\n\n​\n\n**Designation:**\n\n​\n\n**Instruments**\n\n**Instruments**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**Foreign**\n\n**  ​ ​ ​**\n\n**Foreign**\n\n** **\n\n**Derivative contract type:**\n\n​\n\n**Exchange**\n\n​\n\n**Exchange**\n\n** **\n\n**Derivative classification:**\n\n​\n\n**Cash Flow**\n\n​\n\n**Fair Value**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFair value and location of derivative in the Consolidated Balance Sheet:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPrepaids and other current assets\n\n​\n\n$\n\n1,632\n\n​\n\n$\n\n54\n\n​\n\nOther long-term assets\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\nOther current liabilities\n\n​\n\n \n\n(1,260)\n\n​\n\n \n\n—\n\n​\n\nOther long-term liabilities\n\n​\n\n \n\n(31)\n\n​\n\n \n\n—\n\n​\n\nTotal fair value of derivatives, net\n\n​\n\n$\n\n341\n\n​\n\n$\n\n54\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, 2024**\n\n** **\n\n​\n\n​\n\n**Designated**\n\n**Not Designated**\n\n** **\n\n​\n\n​\n\n**as Hedging**\n\n**as Hedging**\n\n​\n\n**Designation:**\n\n​\n\n**Instruments**\n\n**Instruments**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**Foreign**\n\n**  ​ ​ ​**\n\n**Foreign**\n\n** **\n\n**Derivative contract type:**\n\n​\n\n**Exchange**\n\n​\n\n**Exchange**\n\n** **\n\n**Derivative classification:**\n\n​\n\n**Cash Flow**\n\n​\n\n**Fair Value**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFair value and location of derivative in the Consolidated Balance Sheet:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPrepaids and other current assets\n\n​\n\n$\n\n783\n\n​\n\n$\n\n6\n\n​\n\nOther long-term assets\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\nOther current liabilities\n\n​\n\n \n\n(2,679)\n\n​\n\n \n\n(183)\n\n​\n\nOther long-term liabilities\n\n​\n\n \n\n(1,471)\n\n​\n\n \n\n—\n\n​\n\nTotal fair value of derivatives, net\n\n​\n\n$\n\n(3,367)\n\n​\n\n$\n\n(177)\n\n​\n\n​\n\nF-26\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**Cash Flow Hedges**\n\nChanges in fair value of derivative instruments designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss), a component of Stockholders’ Equity, to the extent they are deemed effective. Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Based on the criteria established by current accounting standards, the Company’s cash flow hedge contracts are deemed to be highly effective. Any realized gains or losses resulting from the foreign currency cash flow hedges are recognized together with the hedged transaction within Revenue.\n\nThe Company’s foreign exchange cash flow hedging instruments as of December 31, 2025 and 2024 are summarized as follows (in thousands). All hedging instruments are forward contracts.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Local**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**Currency**\n\n​\n\n**U.S. Dollar**\n\n​\n\n​\n\n**% Maturing**\n\n​\n\n​\n\n**Contracts**\n\n** **\n\n​\n\n​\n\n**Notional**\n\n​\n\n**Notional**\n\n​\n\n​\n\n**in the next**\n\n​\n\n​\n\n**Maturing**\n\n** **\n\n**As of December 31, 2025**\n\n​\n\n**Amount**\n\n​\n\n**Amount**\n\n​\n\n​\n\n**12 months**\n\n​\n\n​\n\n**Through**\n\n** **\n\nPhilippine Peso\n\n \n\n4,025,000\n\n​\n\n$\n\n69,458\n\n(1)\n\n​\n\n97.0\n\n%  \n\n​\n\nMarch 2027\n\n​\n\nMexican Peso\n\n \n\n314,000\n\n​\n\n$\n\n15,618\n\n​\n\n​\n\n100.0\n\n%  \n\n​\n\nDecember 2026\n\n​\n\nColombian Peso\n\n \n\n8,000,000\n\n​\n\n \n\n1,931\n\n​\n\n​\n\n100.0\n\n%  \n\n​\n\nAugust 2026\n\n​\n\n​\n\n​\n\n​\n\n​\n\n$\n\n87,007\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Local**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Currency**\n\n​\n\n**U.S. Dollar**\n\n​\n\n​\n\n**% Maturing**\n\n​\n\n​\n\n**Contracts**\n\n​\n\n​\n\n​\n\n**Notional**\n\n​\n\n**Notional**\n\n** **\n\n​\n\n**in the next**\n\n** **\n\n​\n\n**Maturing**\n\n​\n\n**As of December 31, 2024**\n\n​\n\n**Amount**\n\n​\n\n**Amount**\n\n** **\n\n​\n\n**12 months**\n\n​\n\n​\n\n**Through**\n\n​\n\nPhilippine Peso\n\n \n\n6,034,000\n\n​\n\n \n\n105,098\n\n(1)\n\n​\n\n67.8\n\n%  \n\n​\n\nMarch 2027\n\n​\n\nMexican Peso\n\n \n\n548,000\n\n​\n\n \n\n26,682\n\n​\n\n​\n\n64.6\n\n%  \n\n​\n\nDecember 2026\n\n​\n\n​\n\n​\n\n​\n\n​\n\n$\n\n131,780\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(1)Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on December 31, 2025 and December 31, 2024.\n\n​\n\nThe amounts and location of gains and losses on Cash Flow Hedges within the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Foreign Exchange Cash Flow Hedges, effective:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAmount of gain (loss) recognized in Other comprehensive income (loss) (1)\n\n​\n\n$\n\n4,384\n\n​\n\n$\n\n(9,988)\n\n​\n\n$\n\n9,160\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAmount and location of gain (loss) reclassified from Accumulated OCI to:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nRevenue\n\n​\n\n$\n\n912\n\n​\n\n$\n\n2,582\n\n​\n\n$\n\n3,965\n\n​\n\nProvision for income taxes\n\n​\n\n​\n\n(237)\n\n​\n\n​\n\n(672)\n\n​\n\n​\n\n(1,031)\n\n​\n\nNet income (loss)\n\n​\n\n$\n\n675\n\n​\n\n$\n\n1,910\n\n​\n\n$\n\n2,934\n\n​\n\n(1) As a result of the valuation allowance recorded in Q2 2024 against the Company’s U.S. Deferred Tax Assets, there is no tax impact recognized in Other comprehensive income (loss) for unrealized foreign exchange cash flow hedge gains or losses in 2025.\n\nThe activity related to the change in net unrealized gains and losses on the cash flow hedges included in “Accumulated other comprehensive income (loss)” in our audited consolidated statements of stockholders’ equity is presented in Note 17.\n\nF-27\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**Fair Value Hedges**\n\nChanges in the fair value of derivative instruments not designated as hedges are recognized in earnings in Other income (expense), net on a before tax basis and are offset by gains and losses on the related hedged items.\n\nThe Company’s volume of foreign exchange fair value derivative contracts as of December 31, 2025 and 2024 are summarized as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Local**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**Currency**\n\n​\n\n**U.S. Dollar**\n\n​\n\n​\n\n​\n\n**Notional**\n\n​\n\n**Notional**\n\n​\n\n**As of December 31, 2025**(2)\n\n​\n\n**Amount**\n\n​\n\n**Amount**\n\n​\n\nAustralian Dollar\n\n \n\n3,300\n\n​\n\n$\n\n2,210\n\n​\n\nEuro\n\n \n\n5,350\n\n​\n\n​\n\n6,298\n\n​\n\nBritish Pound\n\n​\n\n5,950\n\n​\n\n​\n\n8,021\n\n​\n\nMexican Peso\n\n​\n\n70,000\n\n​\n\n​\n\n3,891\n\n​\n\nNew Zealand Dollar\n\n \n\n1,100\n\n​\n\n​\n\n639\n\n​\n\nPolish Zloty\n\n​\n\n11,000\n\n​\n\n​\n\n3,072\n\n​\n\n​\n\n​\n\n​\n\n​\n\n$\n\n24,131\n\n​\n\n(2) All fair value hedges are short-term and matured in January 2026.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Local**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**Currency**\n\n​\n\n**U.S. Dollar**\n\n​\n\n​\n\n​\n\n**Notional**\n\n​\n\n**Notional**\n\n** **\n\n**As of December 31, 2024**(3)\n\n​\n\n**Amount**\n\n​\n\n**Amount**\n\n** **\n\nAustralian Dollar\n\n \n\n3,850\n\n​\n\n$\n\n2,393\n\n​\n\nCanadian Dollar\n\n​\n\n5,850\n\n​\n\n​\n\n4,137\n\n​\n\nEuro\n\n​\n\n11,000\n\n​\n\n​\n\n11,456\n\n​\n\nBritish Pound\n\n \n\n5,600\n\n​\n\n​\n\n7,066\n\n​\n\nMexican Peso\n\n \n\n130,000\n\n​\n\n \n\n6,307\n\n​\n\nNew Zealand Dollar\n\n \n\n3,400\n\n​\n\n​\n\n1,914\n\n​\n\n​\n\n​\n\n​\n\n​\n\n$\n\n33,273\n\n​\n\n(3) All fair value hedges are short-term and matured in January 2025.\n\n​\n\nThe amounts and location of before tax gains and losses on Fair Value Hedges within the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025 and 2024, respectively, were as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n​\n\n​\n\n​\n\n**2025**\n\n​\n\n**2024**\n\n​\n\n**2023**\n\n​\n\n**Designation:**\n\n** **\n\n**Not Designated as Hedging Instruments**\n\n​\n\n**Derivative contract type:**\n\n** **\n\n**Foreign Exchange**\n\n​\n\n**Derivative classification:**\n\n \n\n**Fair Value**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAmount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOther income (expense), net\n\n \n\n$\n\n173\n\n \n\n$\n\n(1,255)\n\n \n\n$\n\n1,882\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nF-28\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**(9)****FAIR VALUE**\n\nThe authoritative guidance for fair value measurements establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:\n\nLevel 1 —\n\nQuoted prices in active markets for identical assets or liabilities.\n\n​\n\n​\n\nLevel 2 —\n\nObservable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data.\n\n​\n\n​\n\nLevel 3 —\n\nUnobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.\n\n​\n\nThe following presents information as of December 31, 2025 and 2024 of the Company’s assets and liabilities required to be measured at fair value on a recurring basis, as well as the fair value hierarchy used to determine their fair value.\n\n*Accounts Receivable and Payable* - The amounts recorded in the accompanying balance sheets approximate fair value because of their short-term nature.\n\n*Investments –*The Company measures investments, including cost and equity method investments, at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. The fair values of these investments are determined based on valuation techniques using the best information available and may include market observable inputs and discounted cash flow projections. An impairment charge is recorded when the cost of the investment exceeds its fair value and this condition is determined to be other-than-temporary.\n\n*Debt* - The Company’s debt consists primarily of the Company’s Credit Agreement, which permits floating-rate borrowings based upon the current Prime Rate or SOFR plus a credit spread as determined by the Company’s leverage ratio calculation (as defined in the Credit Agreement). As of December 31, 2025 and 2024, the Company had $905.0 million and $975.0 million, respectively, of borrowings outstanding under the Credit Agreement. During 2025 and 2024, borrowings accrued interest at an average rate of 7.0% and 7.5% per annum, respectively, excluding unused commitment fees. The amounts recorded in the accompanying Balance Sheets approximate fair value due to the variable nature of the debt based on level 2 inputs.\n\n*Derivatives -* Net derivative assets (liabilities) are measured at fair value on a recurring basis. The portfolio is valued using models based on market observable inputs, including both forward and spot foreign exchange rates, interest rates, implied volatility, and counterparty credit risk, including the ability of each party to execute its obligations under the contract. As of December 31, 2025, credit risk did not materially change the fair value of the Company’s derivative contracts.\n\nF-29\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nThe following is a summary of the Company’s fair value measurements for its net derivative assets (liabilities) as of December 31, 2025 and 2024 (in thousands):\n\n**As of December 31, 2025**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Fair Value Measurements Using**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**Quoted Prices in**\n\n**  ​ ​ ​**\n\n**Significant**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n​\n\n** **\n\n​\n\n​\n\n**Active Markets**\n\n​\n\n**Other**\n\n​\n\n**Significant**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**for Identical**\n\n​\n\n**Observable**\n\n​\n\n**Unobservable**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**Assets**\n\n​\n\n**Inputs**\n\n​\n\n**Inputs**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**(Level 1)**\n\n​\n\n**(Level 2)**\n\n​\n\n**(Level 3)**\n\n​\n\n**At Fair Value**\n\n** **\n\nCash flow hedges\n\n​\n\n$\n\n—\n\n​\n\n$\n\n341\n\n​\n\n$\n\n—\n\n​\n\n$\n\n341\n\n​\n\nFair value hedges\n\n​\n\n \n\n—\n\n​\n\n \n\n54\n\n​\n\n \n\n—\n\n​\n\n \n\n54\n\n​\n\nTotal net derivative asset (liability)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n395\n\n​\n\n$\n\n—\n\n​\n\n$\n\n395\n\n​\n\n​\n\n**As of December 31, 2024**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Fair Value Measurements Using**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**Quoted Prices in**\n\n**  ​ ​ ​**\n\n**Significant**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n​\n\n** **\n\n​\n\n​\n\n**Active Markets**\n\n​\n\n**Other**\n\n​\n\n**Significant**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**for Identical**\n\n​\n\n**Observable**\n\n​\n\n**Unobservable**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**Assets**\n\n​\n\n**Inputs**\n\n​\n\n**Inputs**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**(Level 1)**\n\n​\n\n**(Level 2)**\n\n​\n\n**(Level 3)**\n\n​\n\n**At Fair Value**\n\n** **\n\nCash flow hedges\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(3,367)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(3,367)\n\n​\n\nFair value hedges\n\n​\n\n \n\n—\n\n​\n\n \n\n(177)\n\n​\n\n \n\n—\n\n​\n\n \n\n(177)\n\n​\n\nTotal net derivative asset (liability)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(3,544)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(3,544)\n\n​\n\n​\n\nThe following is a summary of the Company’s fair value measurements as of December 31, 2025 and 2024 (in thousands):\n\n​\n\n**As of December 31, 2025**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Fair Value Measurements Using**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**Quoted Prices in**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Significant**\n\n** **\n\n​\n\n​\n\n**Active Markets for**\n\n​\n\n**Significant Other**\n\n​\n\n**Unobservable**\n\n** **\n\n​\n\n​\n\n**Identical Assets**\n\n​\n\n**Observable Inputs**\n\n​\n\n**Inputs**\n\n** **\n\n​\n\n​\n\n**(Level 1)**\n\n​\n\n**(Level 2)**\n\n​\n\n**(Level 3)**\n\n** **\n\nAssets\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDerivative instruments, net\n\n​\n\n$\n\n—\n\n​\n\n$\n\n395\n\n​\n\n$\n\n—\n\n​\n\nDeferred compensation plan asset\n\n​\n\n​\n\n34,964\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\nTotal assets\n\n​\n\n$\n\n34,964\n\n​\n\n$\n\n395\n\n​\n\n$\n\n—\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nLiabilities\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDerivative instruments, net\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\nTotal liabilities\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n​\n\nF-30\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**As of December 31, 2024**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Fair Value Measurements Using**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**Quoted Prices in**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Significant**\n\n** **\n\n​\n\n​\n\n**Active Markets for**\n\n​\n\n**Significant Other**\n\n​\n\n**Unobservable**\n\n** **\n\n​\n\n​\n\n**Identical Assets**\n\n​\n\n**Observable Inputs**\n\n​\n\n**Inputs**\n\n** **\n\n​\n\n​\n\n**(Level 1)**\n\n​\n\n**(Level 2)**\n\n​\n\n**(Level 3)**\n\n** **\n\nAssets\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDerivative instruments, net\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\nDeferred compensation plan asset\n\n​\n\n​\n\n33,269\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\nTotal assets\n\n​\n\n$\n\n33,269\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nLiabilities\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDerivative instruments, net\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(3,544)\n\n​\n\n$\n\n—\n\n​\n\nTotal liabilities\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(3,544)\n\n​\n\n$\n\n—\n\n​\n\n​\n\n*Deferred Compensation Plan*—**The Company maintains a non-qualified deferred compensation plan for certain eligible employees. The deferred compensation asset represents the combined fair value of all the funds based on quoted values and market observable inputs.\n\n*Contingent Consideration*— The Company recorded contingent consideration payable related to the acquisition of Faneuil that closed in 2022. The contingent payables for Faneuil were calculated using a Monte Carlo simulation including a discount rate of 19.3%. The measurements were based on significant inputs not observable in the market. The Company records interest expense each period using the effective interest method until the future value of these contingent payables reaches their expected future value.\n\nDuring 2022 and 2023, fair value adjustments of a $2.9 million benefit and a $3.0 million expense, respectively, were recorded related to fair value adjustments of the estimated contingent payments associated with the Faneuil acquisition based on updated discount factors, the passage of time, updated EBITDA estimates and a modification to the agreement (see Note 2) for one contract and a complete reduction for the second contract as it was not awarded to the Company. During 2024, a fair value adjustment of a $1.5 million benefit was recorded related to fair value adjustments of the estimated contingent payments associated with the Faneuil acquisition based on updated discount factors, the passage of time, and updated EBITDA estimates. The fair value adjustment benefits(expenses) were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). As of December 31, 2024, the contingent consideration payment was accrued at zero. The earn-out period was completed at the end of January 2025. Based on final results, no final earn-out payment was required.\n\n*Contingent Receivables* – The Company recorded a contingent receivable related to the Faneuil acquisition that closed in 2022. During 2023, the Company recorded fair a value adjustment for the receivable based on current information which caused the receivable to decrease, $4.4 million expense, and included in Other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss). As of December 31, 2023, the contingent receivable was recorded at zero.\n\nA rollforward of the activity in the Company’s fair value of the contingent consideration payable is as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​ ​**\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**December 31,**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n​\n\n**2023**\n\n​\n\n**Acquisitions**\n\n​\n\n**Payments**\n\n​\n\n**Adjustments**\n\n​\n\n**2024**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFaneuil\n\n​\n\n$\n\n(1,496)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n1,496\n\n​\n\n$\n\n—\n\n​\n\nTotal\n\n​\n\n$\n\n(1,496)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n1,496\n\n​\n\n$\n\n—\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nF-31\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**(10)****INCOME TAXES**\n\nThe sources of pre-tax operating income are as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\nDomestic\n\n​\n\n$\n\n(266,435)\n\n​\n\n$\n\n(259,737)\n\n​\n\n$\n\n(39,871)\n\n​\n\nForeign\n\n​\n\n \n\n96,198\n\n​\n\n \n\n23,220\n\n​\n\n \n\n80,595\n\n​\n\nTotal\n\n​\n\n$\n\n(170,237)\n\n​\n\n$\n\n(236,517)\n\n​\n\n$\n\n40,724\n\n​\n\n​\n\nThe Company’s selection of an accounting policy with respect to both the GILTI and BEAT rules is to compute the related taxes in the period the entity becomes subject to either. A reasonable estimate of the effects of these provisions has been included in the 2025 annual financial statements.\n\nOn July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, extending provisions of the 2017 Tax Cuts and Jobs Act. It does not have a material impact on the Company’s consolidated financial statements.\n\nDuring the fourth quarter of 2023, the Company released its indefinite reinvestment assertion related to earnings for all foreign operations. As a result, in 2025, the Company recorded additional taxes of $2.5 million related to the earnings of its foreign subsidiaries as required. The Company generally intends to limit distributions from non-U.S. subsidiaries to cash balances available in foreign jurisdictions.\n\nNo additional income taxes have been provided for any remaining outside basis difference inherent in the Company’s foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. The Company has an estimated $159 million of outside-basis differences as of December 31, 2025. Determination of any unrecognized deferred tax liability related to the outside-basis difference in investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates.\n\nThe components of the Company’s Provision for (benefit from) income taxes are as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\nCurrent provision for (benefit from)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFederal\n\n​\n\n$\n\n2,529\n\n​\n\n$\n\n229\n\n​\n\n$\n\n3,625\n\n​\n\nState\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n1,893\n\n​\n\nForeign\n\n​\n\n \n\n29,461\n\n​\n\n \n\n15,341\n\n​\n\n \n\n24,470\n\n​\n\nTotal current provision for (benefit from)\n\n​\n\n \n\n31,990\n\n​\n\n \n\n15,570\n\n​\n\n \n\n29,988\n\n​\n\nDeferred provision for (benefit from)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFederal\n\n​\n\n \n\n(18,404)\n\n​\n\n \n\n51,389\n\n​\n\n \n\n(14,357)\n\n​\n\nState\n\n​\n\n \n\n403\n\n​\n\n \n\n3,494\n\n​\n\n \n\n(848)\n\n​\n\nForeign\n\n​\n\n \n\n846\n\n​\n\n \n\n3,647\n\n​\n\n \n\n7,677\n\n​\n\nTotal deferred provision for (benefit from)\n\n​\n\n \n\n(17,155)\n\n​\n\n \n\n58,530\n\n​\n\n \n\n(7,528)\n\n​\n\nTotal provision for (benefit from) income taxes\n\n​\n\n$\n\n14,835\n\n​\n\n$\n\n74,100\n\n​\n\n$\n\n22,460\n\n​\n\n​\n\nIn December 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The Company adopted ASU 2023-09 effective January 1, 2025 on a prospective basis. Accordingly, the guidance has been applied only to current-year income tax disclosures, and comparative prior-year information has not been recast. The adoption did not have an impact on the Company’s consolidated financial position, results of operations, or cash flows, as the guidance relates solely to disclosure requirements.\n\nF-32\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nThe following two tables reconcile the Company’s effective tax rate to the federal statutory rate (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\nIncome tax per U.S. federal statutory rate (21%, 21%)\n\n​\n\n$\n\n(49,668)\n\n​\n\n$\n\n8,552\n\n​\n\nState income taxes, net of federal deduction\n\n​\n\n \n\n(9,581)\n\n​\n\n \n\n(1,355)\n\n​\n\nChange in valuation allowances\n\n​\n\n \n\n110,753\n\n​\n\n \n\n14,917\n\n​\n\nForeign income taxes at different rates than the U.S.\n\n​\n\n \n\n7,495\n\n​\n\n \n\n208\n\n​\n\nForeign withholding taxes\n\n​\n\n \n\n3,771\n\n​\n\n​\n\n—\n\n​\n\nTaxes related to compensation\n\n​\n\n​\n\n3,515\n\n​\n\n​\n\n1,542\n\n​\n\nLiabilities for uncertain tax positions\n\n​\n\n \n\n616\n\n​\n\n \n\n1,759\n\n​\n\nImpacts of foreign branch operations\n\n​\n\n​\n\n(2,378)\n\n​\n\n​\n\n(283)\n\n​\n\nNon-taxable earnings of noncontrolling interest\n\n​\n\n \n\n(1,810)\n\n​\n\n \n\n(1,508)\n\n​\n\nForeign dividend less foreign tax credits\n\n​\n\n \n\n(1,209)\n\n​\n\n \n\n(1,294)\n\n​\n\nImpacts of impairments\n\n​\n\n​\n\n10,586\n\n​\n\n \n\n—\n\n​\n\nState and Federal income tax credits and NOL's\n\n​\n\n \n\n(3,585)\n\n​\n\n \n\n(4,611)\n\n​\n\nForeign earnings taxed currently in U.S.\n\n​\n\n \n\n5,221\n\n​\n\n \n\n2,409\n\n​\n\nTaxes related to prior year filings\n\n​\n\n \n\n(850)\n\n​\n\n​\n\n675\n\n​\n\nOther\n\n​\n\n \n\n1,224\n\n​\n\n \n\n1,449\n\n​\n\nIncome tax per effective tax rate\n\n​\n\n$\n\n74,100\n\n​\n\n$\n\n22,460\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nEffective tax rate percentage\n\n​\n\n​\n\n(31.3)%\n\n​\n\n​\n\n55.2%\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n** **\n\n​\n\n​\n\n**Tax Effect**\n\n​\n\n**Rate Effect**\n\n​\n\nTax at U.S. Statutory Rate\n\n​\n\n$\n\n(35,750)\n\n​\n\n21.0\n\n%\n\n​\n\nState and local income taxes (1)\n\n​\n\n​\n\n7,339\n\n​\n\n(4.3)\n\n%\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nForeign tax effects:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOther foreign jurisdictions\n\n​\n\n​\n\n9,769\n\n​\n\n(5.7)\n\n%\n\n​\n\nEffect of cross-border tax laws\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nGlobal intangible low-taxed income\n\n​\n\n​\n\n14,779\n\n​\n\n(8.7)\n\n%\n\n​\n\nTax credits\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOther\n\n​\n\n​\n\n(7,840)\n\n​\n\n4.6\n\n%\n\n​\n\nChanges in valuation allowances\n\n​\n\n​\n\n25,192\n\n​\n\n(14.8)\n\n%\n\n​\n\nChanges in unrecognized tax benefits\n\n​\n\n​\n\n(7,079)\n\n​\n\n4.2\n\n%\n\n​\n\nOther adjustments\n\n​\n\n​\n\n8,425\n\n​\n\n(5.0)\n\n%\n\n​\n\n​\n\n​\n\n$\n\n14,835\n\n​\n\n(8.7)\n\n%\n\n​\n\n(1) The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include Texas.\n\nManagement has evaluated its foreign operations and determined that no individual foreign jurisdiction is significant to the Company’s consolidated financial statements.\n\nThe Company’s income taxes paid (net of refunds) is summarized as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**December 31, 2025**\n\n** **\n\nU.S. Federal\n\n​\n\n$\n\n(2,791)\n\n​\n\nU.S. State and Local\n\n​\n\n \n\n921\n\n​\n\nForeign\n\n​\n\n \n\n21,328\n\n​\n\n​\n\n​\n\n$\n\n19,458\n\n​\n\n​\n\nF-33\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nFrom the above amounts, income taxes paid (net of refunds) exceed the 5% of taxes paid threshold in the following foreign jurisdictions (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**December 31, 2025**\n\n​\n\nCanada\n\n​\n\n$\n\n2,768\n\n​\n\nIndia\n\n​\n\n​\n\n7,907\n\n​\n\nNetherlands\n\n​\n\n​\n\n973\n\n​\n\nMexico\n\n​\n\n \n\n1,374\n\n​\n\nPhilippines\n\n​\n\n \n\n2,917\n\n​\n\n​\n\n​\n\n$\n\n15,939\n\n​\n\n​\n\nFrom the above amounts, states that equal more than 50% of our state income taxes paid (net of refunds) and exceed the 5% of taxes paid threshold include the following jurisdiction (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**December 31, 2025**\n\n​\n\nU.S. State and Local\n\n​\n\n​\n\n​\n\n​\n\nTexas\n\n​\n\n$\n\n1,084\n\n​\n\n​\n\n​\n\n$\n\n1,084\n\n​\n\n​\n\nThe Company’s deferred income tax assets and liabilities are summarized as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n** **\n\nDeferred tax assets, gross\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAccrued compensation and employee benefits\n\n​\n\n$\n\n8,917\n\n​\n\n$\n\n8,436\n\n​\n\nAllowance for credit losses, insurance and other accruals\n\n​\n\n \n\n4,924\n\n​\n\n \n\n6,580\n\n​\n\nAmortization of deferred lease liabilities\n\n​\n\n \n\n15,077\n\n​\n\n \n\n15,817\n\n​\n\nNet operating losses\n\n​\n\n \n\n27,243\n\n​\n\n \n\n22,099\n\n​\n\nEquity compensation\n\n​\n\n \n\n1,732\n\n​\n\n​\n\n2,206\n\n​\n\nCustomer acquisition and deferred revenue accruals\n\n​\n\n \n\n11,535\n\n​\n\n \n\n13,307\n\n​\n\nFederal and state tax credits, net\n\n​\n\n \n\n11,364\n\n​\n\n \n\n8,818\n\n​\n\nIntangible assets\n\n​\n\n​\n\n23,878\n\n​\n\n​\n\n—\n\n​\n\nDepreciation and amortization\n\n​\n\n​\n\n27,920\n\n​\n\n​\n\n29,059\n\n​\n\nUnremitted foreign earnings\n\n​\n\n​\n\n29,523\n\n​\n\n​\n\n31,026\n\n​\n\nInterest expense\n\n​\n\n​\n\n47,130\n\n​\n\n​\n\n30,286\n\n​\n\nUnrealized gains on derivatives\n\n​\n\n​\n\n—\n\n​\n\n​\n\n867\n\n​\n\nPartnership deferred investment\n\n​\n\n​\n\n3,521\n\n​\n\n​\n\n3,464\n\n​\n\nOther\n\n​\n\n \n\n2,174\n\n​\n\n \n\n1,038\n\n​\n\nTotal deferred tax assets, gross\n\n​\n\n \n\n214,938\n\n​\n\n \n\n173,003\n\n​\n\nValuation allowances\n\n​\n\n \n\n(196,955)\n\n​\n\n \n\n(157,383)\n\n​\n\nTotal deferred tax assets, net\n\n​\n\n \n\n17,983\n\n​\n\n \n\n15,620\n\n​\n\nDeferred tax liabilities\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nUnrealized gain on derivatives\n\n​\n\n​\n\n(87)\n\n​\n\n​\n\n—\n\n​\n\nContract acquisition costs\n\n​\n\n \n\n(22)\n\n​\n\n​\n\n—\n\n​\n\nIntangible assets\n\n​\n\n \n\n—\n\n​\n\n \n\n(10,232)\n\n​\n\nOperating lease assets\n\n​\n\n \n\n(12,516)\n\n​\n\n \n\n(12,559)\n\n​\n\nOther\n\n​\n\n \n\n—\n\n​\n\n \n\n(1,789)\n\n​\n\nTotal deferred tax liabilities\n\n​\n\n \n\n(12,625)\n\n​\n\n \n\n(24,580)\n\n​\n\nNet deferred tax assets\n\n​\n\n$\n\n5,358\n\n​\n\n$\n\n(8,960)\n\n​\n\n​\n\nQuarterly, the Company assesses the likelihood by jurisdiction that its net deferred tax assets will be recovered. Based on the weight of all available evidence, both positive and negative, the Company records a valuation allowance against deferred tax assets when it is more-likely-than-not that a future tax benefit will not be realized.\n\nF-34\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nAs of December 31, 2025 the Company had approximately $5.3 million deferred tax assets across their foreign operations. As of December 31, 2025 the deferred tax valuation allowance was $197.0 million related primarily to tax losses in jurisdictions which do not meet the “more-likely-than-not” standard under current accounting guidance.\n\nWhen there is a change in judgment concerning the recovery of deferred tax assets in future periods, a valuation allowance is recorded into earnings during the quarter in which the change in judgment occurred. In 2025, the Company made adjustments to its deferred tax assets and corresponding valuation allowances. The net change to the valuation allowance consisted of the following: a $35.4 million increase in the United States, a $1.5 million increase in Australia, a $1.5 million increase in the Netherlands, and a $2.0 million increase in various other jurisdictions for deferred tax assets that do not meet the “more-likely-than-not” standard offset by a $0.6 million decrease of valuation allowances in New Zealand, and a $0.3 million decrease in Australia related to the utilization or write-off of deferred tax assets.\n\nActivity in the Company’s valuation allowance accounts consists of the following (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\nBeginning balance\n\n​\n\n$\n\n157,383\n\n​\n\n$\n\n39,902\n\n​\n\n$\n\n24,944\n\n​\n\nAdditions of deferred income tax expense\n\n​\n\n \n\n41,297\n\n​\n\n \n\n121,085\n\n​\n\n \n\n18,410\n\n​\n\nReductions of deferred income tax expense\n\n​\n\n \n\n(1,725)\n\n​\n\n \n\n(3,604)\n\n​\n\n \n\n(3,452)\n\n​\n\nEnding balance\n\n​\n\n$\n\n196,955\n\n​\n\n$\n\n157,383\n\n​\n\n$\n\n39,902\n\n​\n\n​\n\nAs of December 31, 2025, after consideration of all tax loss carry back opportunities, the Company had tax affected tax loss carry forwards worldwide expiring as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n2026\n\n  ​ ​ ​\n\n$\n\n5,590\n\n2027\n\n​\n\n \n\n—\n\n2028\n\n​\n\n \n\n19\n\n2029\n\n​\n\n \n\n127\n\nAfter 2029\n\n​\n\n \n\n9,132\n\nNo expiration\n\n​\n\n \n\n12,375\n\nTotal\n\n​\n\n$\n\n27,243\n\n​\n\nThe Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Costa Rica. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted multiple agreements under local laws which result in an overall reduced tax rate. These incentives have varying benefit year over year and expire at various times beginning in 2031. The aggregate benefit to income tax expense for the years ended December 31, 2025, 2024 and 2023 was approximately $3.0 million, $2.8 million and $2.3 million, respectively, which had a favorable impact on diluted net income (loss) per share of $0.06, $0.06 and $0.05, respectively.\n\n**Accounting for Uncertainty in Income Taxes**\n\nIn accordance with ASC 740, the Company has recorded a reserve for uncertain tax positions. The total amount of interest and penalties recognized in the accompanying Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss) as of December 31, 2025, 2024 and 2023 was approximately $0.1 million, $3.4 million and $2.7 million, respectively.\n\nThe Company had a reserve for uncertain tax benefits, on a net basis, of $0.2 million and $6.5 million for the years ended December 31, 2025 and 2024, respectively.\n\nF-35\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nThe tabular reconciliation of the reserve for uncertain tax benefits on a gross basis without interest for the three years ended December 31, 2025 is presented below (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance as of December 31, 2022\n\n  ​ ​ ​\n\n$\n\n6,567\n\nAdditions for current year tax positions\n\n​\n\n \n\n212\n\nReductions in prior year tax positions\n\n​\n\n \n\n(203)\n\nBalance as of December 31, 2023\n\n​\n\n \n\n6,576\n\nAdditions for current year tax positions\n\n​\n\n \n\n218\n\nReductions in prior year tax positions\n\n​\n\n \n\n(275)\n\nBalance as of December 31, 2024\n\n​\n\n \n\n6,519\n\nAdditions for current year tax positions\n\n​\n\n \n\n—\n\nReductions in prior year tax positions\n\n​\n\n \n\n(6,255)\n\nBalance as of December 31, 2025\n\n​\n\n$\n\n264\n\n​\n\nAt December 31, 2025, the amount of uncertain tax benefits including interest, that, if recognized, would reduce tax expense was $0.3 million.\n\nThe Company and its domestic and foreign subsidiaries (including Percepta LLC and its domestic and foreign subsidiaries) file income tax returns as required in the U.S. federal jurisdiction and various state and foreign jurisdictions. The following table presents the major tax jurisdictions and tax years that are open as of December 31, 2025 and subject to examination by the respective tax authorities:\n\n​\n\n​\n\n​\n\n​\n\n**Tax Jurisdiction**\n\n**  ​ ​ ​**\n\n**Tax Year Ended**\n\nUnited States\n\n \n\n2021 - Present\n\nNetherlands\n\n \n\n2021 - Present\n\nIndia\n\n \n\n2017 - Present\n\nCanada\n\n \n\n2021 - Present\n\nMexico\n\n \n\n2020 - Present\n\nPhilippines\n\n \n\n2022 - Present\n\n​\n\nThe Company’s U.S. income tax returns filed for the tax years ending December 31, 2021 to present, remain open tax years. The Company has been notified of the intent to audit, or is currently under audit of, income taxes for the Philippines for tax year 2023 and India for tax years 2017 through 2022. Although the outcome of examinations by taxing authorities are always uncertain, it is the opinion of management that the resolution of these audits will not have a material effect on the Company’s Consolidated Financial Statements.\n\n​\n\n​\n\n​\n\n**(11)****IMPAIRMENT OF ASSETS OTHER THAN GOODWILL**\n\nThe Company evaluated the recoverability of its leasehold improvement assets at certain customer engagement centers as well as all internally developed software projects. An asset group is considered to be impaired when the anticipated undiscounted future cash flows of its asset group is estimated to be less than the asset group’s carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. During the years ended December 31, 2025, 2024 and 2023, TTEC Digital recognized impairment losses related to leasehold improvements assets, right of use lease assets, capitalized software and certain computer equipment of $0.2 million, $2.9 million and $2.8 million, respectively. During the years ended December 31, 2025, 2024 and 2023, TTEC Engage recognized impairment losses related to leasehold improvement assets, right of use lease assets, capitalized software and certain computer equipment of $1.8 million, $7.7 million and $8.9 million, respectively.\n\n​\n\nF-36\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**(12)****INDEBTEDNESS**\n\n**Credit Facility**\n\nOn November 5, 2025, the Company entered into the Tenth Amendment (the “Tenth Amendment”), which extends the maturity date to November 23, 2027 (the “New Maturity Date”) and modifies certain other material terms of the Credit Facility, including the size of the facility, pricing and certain covenants. The aggregate revolving commitment is reduced from $1.2 billion to $1.05 billion, with further reductions of $25 million each on April 1, 2026 and July 1, 2026. The letter of credit sublimit is reduced from $100 million to $50 million. Base rate loans bear interest at a rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 0.50%, and (c) SOFR in effect on such day plus 1.0%. Base rate loans shall be based on the base rate, plus the applicable credit margin of 2.0% through September 30, 2026, increasing to 5.0% thereafter. SOFR loans bear interest at a rate equal to the applicable spread adjusted SOFR plus applicable credit margin of 3.0% through September 30, 2026, increasing to spread adjusted SOFR plus 6.0% thereafter. Alternative currency loans (not denominated in U.S. Dollars) bear interest at rates applicable to their respective currencies. A one-time extension fee of 1.5% of the aggregate revolving credit commitment is payable if the Credit Facility is still in effect on October 1, 2026. Limits on certain indebtedness, liens, investments and mergers are reduced by 50%, while acquisitions and restricted payments (subject to limited exceptions) are reduced by 100%. Certain other uses of cash are also restricted, subject to limited exceptions. The period during which certain covenant adjustments apply are as of March 31, 2026 and June 30, 2026. The maximum net leverage ratio steps down from the currently permitted 4.00 to 3.00 by the third quarter of 2027 (TTEC’s fourth quarter of 2025 net leverage ratio is 3.58). The upfront fee payable to consenting lenders is 20 basis points of the revolving credit commitment.\n\nFailure to comply with the financial covenants and operating restrictions set forth in the Credit Agreement could result in a default. As of the issuance of these Consolidated Financial Statements, the Company believes it has sufficient cash on hand, positive working capital, and availability to access additional cash under the Credit Facility to meet its business operating requirements and make its capital expenditures and to continue to comply with the financial covenants under the Credit Agreement for the next 12 months. In the event the Company does not remain in compliance with the financial covenants under the Credit Agreement, it would need to negotiate additional amendments to or waivers of the terms of such credit facilities, refinance its debt, reduce discretionary spending or raise additional capital.\n\nLetter of credit fees are one eighth of 1% of the stated amount of the letter of credit on the date of issuance, renewal or amendment, plus an annual fee equal to the borrowing margin for SOFR loans.\n\nAs of December 31, 2025, and 2024, the Company had borrowings of $905.0 million and $975.0 million, respectively, under its Credit Agreement and its average daily utilization was $982.9 million and $1,050.3 million for the years ended December 31, 2025 and 2024, respectively. Based on the current level of availability based on the covenant calculations, the Company’s remaining borrowing capacity was approximately $95 million as of December 31, 2025. As of December 31, 2025, the Company was in compliance with all covenants and conditions under its Credit Agreement.\n\n​\n\n​\n\n​\n\n​\n\n**(13)****COMMITMENTS AND CONTINGENCIES**\n\n**Letters of Credit**\n\nAs of December 31, 2025, outstanding letters of credit under the Credit Facility totaled $0.2 million. As of December 31, 2025, letters of credit and contract performance guarantees issued outside of the Credit Agreement totaled $0.1 million.\n\n**Guarantees**\n\nIndebtedness under the Credit Agreement is guaranteed by the Company’s present and future subsidiaries.\n\nF-37\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**Legal Proceedings**\n\nFrom time to time, the Company has been involved in legal actions, both as plaintiff and defendant, which arise in the ordinary course of business. The Company accrues for exposures associated with such legal actions to the extent that losses are deemed both probable and reasonably estimable. To the extent specific reserves have not been made for certain legal proceedings, their ultimate outcome, and consequently, an estimate of possible loss, if any, cannot reasonably be determined at this time.\n\nBased on currently available information and advice received from counsel, the Company believes that the disposition or ultimate resolution of any current legal proceedings, except as otherwise specifically reserved for in its financial statements, will not have a material adverse effect on the Company’s financial position, cash flows or results of operations. In the event of unexpected further developments, however, it is possible that the ultimate resolution of these matters, or other similar matters, if unfavorable, may be materially adverse to the Company’s financial position, cash flows, or results of operations.\n\n​\n\n**(14)****DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS**\n\n​\n\nDeferred revenue in the accompanying Consolidated Balance Sheets consist of the following (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n** **\n\nDeferred Revenue - Current\n\n​\n\n$\n\n58,828\n\n​\n\n$\n\n64,752\n\n​\n\nDeferred Revenue - Long-term (included in Other long-term liabilities)\n\n​\n\n \n\n3,140\n\n​\n\n \n\n4,414\n\n​\n\nTotal Deferred Revenue\n\n​\n\n$\n\n61,968\n\n​\n\n$\n\n69,166\n\n​\n\n​\n\nDeferred costs in the accompanying Consolidated Balance Sheets consist of the following (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n** **\n\nDeferred Costs - Current (included in Prepaids and other current assets)\n\n​\n\n$\n\n26,618\n\n​\n\n$\n\n31,238\n\n​\n\nDeferred Costs - Long-term (included in Other long-term assets)\n\n​\n\n \n\n15,162\n\n​\n\n \n\n12,027\n\n​\n\nTotal Deferred Costs\n\n​\n\n$\n\n41,780\n\n​\n\n$\n\n43,265\n\n​\n\n​\n\nPrior period amounts have been adjusted to correct for identified errors in the calculation of long-term deferred costs for the twelve months ended December 31, 2024.\n\nActivity in the Company’s Deferred revenue accounts consists of the following (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance as of December 31, 2024\n\n​\n\n$\n\n69,166\n\n​\n\nAdditions\n\n​\n\n \n\n274,781\n\n​\n\nAmortization\n\n​\n\n \n\n(281,979)\n\n​\n\nBalance as of December 31, 2025\n\n​\n\n$\n\n61,968\n\n​\n\n​\n\nRevenue recognized for the year ended December 31, 2025 from amounts included in deferred revenue as of December 31, 2024 was $64.8 million. Revenue recognized for the year ended December 31, 2024 from amounts included in deferred revenue as of December 31, 2023 was $81.2 million.\n\nRemaining performance obligations (“RPO”) represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. The Company’s RPO excludes performance obligations from on-demand arrangements as there are no minimum purchase commitments associated with these arrangements, and certain time and materials contracts that are billed in arrears.\n\nAs of December 31, 2025, the Company’s RPO was $358.6 million, which will primarily be delivered and recognized within the next five years. The Company expects to recognize approximately 59% of the RPO over the next 12 months, 25% of the RPO over the subsequent 13 to 24 months, and the remainder thereafter.\n\n​\n\n​\n\nF-38\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**(15)****LEASES**\n\nOperating leases are included in our Consolidated Balance Sheet as Operating lease assets, Current operating lease liabilities and Non-current operating lease liabilities. Finance leases are included in Property, plant and equipment, Other current liabilities and Other long-term liabilities in our Consolidated Balance Sheet. The Company primarily leases real estate and equipment under various arrangements that provide the Company the right-of-use for the underlying asset that require lease payments over the lease term. The Company determines the value of each lease by computing the present value of each lease payment using the interest rate implicit in the lease, if available; otherwise the Company estimates its incremental borrowing rate over the lease term. The Company determines its incremental borrowing rate based on its estimated credit risk with adjustments for each individual leases’ geographical risk and lease term. Operating lease assets also include prepaid rent and initial direct costs less any tenant improvements.\n\nThe Company’s real estate portfolio typically includes one or more options to renew, with renewal terms that generally can extend the lease term from one to five years. The exercise of these lease renewal options is at the Company’s discretion and is included in the lease term only if the Company is reasonably certain to exercise. The Company also has service arrangements whereby it controls specific space provided by a third-party service provider. These arrangements meet the definition of a lease and are accounted for under ASC 842. Lease expense for operating leases is recognized on a straight-line basis over the lease term and is included in the Consolidated Statements of Comprehensive Income (Loss). The Company’s lease agreements do not contain any material residual value guarantees or restrictive guarantees.\n\nThe components of lease expense for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Location in Statements of**\n\n​\n\n**Year Ended December 31,**\n\n​\n\n**Description**\n\n**  ​ ​ ​**\n\n**Comprehensive Income (Loss)**\n\n**  ​ ​ ​**\n\n**2025**\n\n  ​ ​ ​\n\n**2024**\n\n  ​ ​ ​\n\n**2023**\n\n  ​ ​ ​\n\nAmortization of ROU assets - finance leases\n\n​\n\nDepreciation and amortization\n\n​\n\n$\n\n1,646\n\n​\n\n$\n\n2,283\n\n​\n\n$\n\n2,832\n\n​\n\nInterest on lease liabilities - finance leases\n\n​\n\nInterest expense\n\n​\n\n​\n\n118\n\n​\n\n​\n\n184\n\n​\n\n​\n\n115\n\n \n\nOperating lease cost (cost resulting from lease payments)\n\n​\n\nCost of services\n\n​\n\n \n\n34,132\n\n​\n\n \n\n35,957\n\n​\n\n \n\n36,872\n\n​\n\nOperating lease cost (cost resulting from lease payments)\n\n​\n\nSelling, general and administrative\n\n​\n\n​\n\n1,618\n\n​\n\n​\n\n1,384\n\n​\n\n​\n\n1,625\n\n​\n\nOperating lease cost (cost resulting from lease payments)\n\n​\n\nRestructuring\n\n​\n\n​\n\n567\n\n​\n\n​\n\n1,116\n\n​\n\n​\n\n788\n\n​\n\nOperating lease cost\n\n​\n\nImpairment\n\n​\n\n​\n\n1,829\n\n​\n\n​\n\n3,980\n\n​\n\n​\n\n10,096\n\n​\n\nOperating lease cost (cost resulting from lease payments)\n\n​\n\nOther income (expense), net\n\n​\n\n​\n\n1,388\n\n​\n\n​\n\n1,294\n\n​\n\n​\n\n1,352\n\n​\n\nShort-term lease cost\n\n​\n\nCost of services\n\n​\n\n \n\n3,395\n\n​\n\n \n\n2,211\n\n​\n\n \n\n1,182\n\n​\n\nVariable lease cost (cost excluded from lease payments\n\n​\n\nCost of services\n\n​\n\n​\n\n285\n\n​\n\n​\n\n777\n\n​\n\n​\n\n827\n\n​\n\nLess: Sublease income\n\n​\n\nSelling, general and administrative\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(555)\n\n​\n\nLess: Sublease income\n\n​\n\nOther income (expense), net\n\n​\n\n \n\n(3,304)\n\n​\n\n \n\n(2,893)\n\n​\n\n \n\n(3,034)\n\n​\n\nTotal lease cost\n\n​\n\n​\n\n​\n\n$\n\n41,674\n\n \n\n$\n\n46,293\n\n \n\n$\n\n52,100\n\n​\n\n​\n\nOther supplementary information for the years ended December 31, 2025, 2024 and 2023 are as follows (dollar values in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n  ​ ​ ​\n\n**2024**\n\n  ​ ​ ​\n\n**2023**\n\n  ​ ​ ​\n\nFinance lease - operating cash flows\n\n​\n\n$\n\n39\n\n​\n\n$\n\n59\n\n​\n\n$\n\n38\n\n​\n\nFinance lease - financing cash flows\n\n​\n\n$\n\n1,799\n\n​\n\n$\n\n2,405\n\n​\n\n$\n\n2,527\n\n​\n\nOperating lease - operating cash flows (fixed payments)\n\n​\n\n$\n\n42,118\n\n​\n\n$\n\n46,785\n\n​\n\n$\n\n49,691\n\n​\n\nNew ROU assets - operating leases\n\n​\n\n$\n\n5,336\n\n​\n\n$\n\n3,357\n\n​\n\n$\n\n28,024\n\n​\n\nRenewals of ROU assets - operating leases\n\n​\n\n$\n\n19,401\n\n​\n\n$\n\n8,811\n\n​\n\n$\n\n44,129\n\n​\n\nNew ROU assets - finance leases\n\n​\n\n$\n\n263\n\n​\n\n$\n\n886\n\n​\n\n$\n\n3,124\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, 2025**\n\n​\n\n**December 31, 2024**\n\n​\n\n**December 31, 2023**\n\n​\n\nWeighted average remaining lease term - finance leases\n\n​\n\n​\n\n1.27 years\n\n​\n\n​\n\n1.82 years\n\n​\n\n​\n\n2.22 years\n\n​\n\nWeighted average remaining lease term - operating leases\n\n​\n\n​\n\n3.27 years\n\n​\n\n​\n\n3.57 years\n\n​\n\n​\n\n4.12 years\n\n​\n\nWeighted average discount rate - finance leases\n\n​\n\n​\n\n6.42%\n\n​\n\n​\n\n6.16%\n\n​\n\n​\n\n5.51%\n\n​\n\nWeighted average discount rate - operating leases\n\n​\n\n​\n\n7.62%\n\n​\n\n​\n\n7.27%\n\n​\n\n​\n\n6.88%\n\n​\n\n​\n\nF-39\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nOperating and financing lease right-of-use assets and lease liabilities within our Consolidated Balance Sheet as of December 31, 2025 and 2024 are as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Description**\n\n**Location in Balance Sheet**\n\n​\n\n**December 31, 2025**\n\n​\n\n**December 31, 2024**\n\n** **\n\n**Assets**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOperating lease assets\n\nOperating lease assets\n\n​\n\n$\n\n86,064\n\n​\n\n$\n\n91,263\n\n​\n\nFinance lease assets\n\nProperty, plant and equipment, net\n\n​\n\n \n\n1,326\n\n​\n\n \n\n2,709\n\n​\n\nTotal leased assets\n\n​\n\n​\n\n$\n\n87,390\n\n​\n\n$\n\n93,972\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Liabilities**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOperating\n\nCurrent operating lease liabilities\n\n​\n\n$\n\n34,188\n\n​\n\n$\n\n33,358\n\n​\n\nFinance\n\nOther current liabilities\n\n​\n\n​\n\n1,099\n\n​\n\n​\n\n1,662\n\n​\n\nNon-current\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOperating\n\nNon-current operating lease liabilities\n\n​\n\n​\n\n61,170\n\n​\n\n​\n\n71,008\n\n​\n\nFinance\n\nOther long-term liabilities\n\n​\n\n​\n\n274\n\n​\n\n​\n\n1,076\n\n​\n\nTotal lease liabilities\n\n​\n\n​\n\n$\n\n96,731\n\n​\n\n$\n\n107,104\n\n​\n\n​\n\nThe future minimum operating lease and finance lease payments required under non-cancelable leases as of December 31, 2025 and 2024 are as follows (in thousands):\n\n**December 31, 2025**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Operating**\n\n**  ​ ​ ​**\n\n**Sub-lease**\n\n**  ​ ​ ​**\n\n**Finance**\n\n** **\n\n​\n\n​\n\n**Leases**\n\n​\n\n**Income**\n\n​\n\n**Leases**\n\n** **\n\nYear 1\n\n​\n\n$\n\n41,954\n\n​\n\n$\n\n(3,170)\n\n​\n\n$\n\n1,119\n\n​\n\nYear 2\n\n​\n\n \n\n33,732\n\n​\n\n \n\n(3,244)\n\n​\n\n \n\n251\n\n​\n\nYear 3\n\n​\n\n \n\n18,409\n\n​\n\n \n\n(2,900)\n\n​\n\n \n\n48\n\n​\n\nYear 4\n\n​\n\n \n\n8,729\n\n​\n\n \n\n(2,900)\n\n​\n\n \n\n—\n\n​\n\nYear 5\n\n​\n\n \n\n5,223\n\n​\n\n \n\n(2,900)\n\n​\n\n \n\n—\n\n​\n\nThereafter\n\n​\n\n \n\n2,461\n\n​\n\n \n\n(3,686)\n\n​\n\n \n\n—\n\n​\n\nTotal minimum lease payments\n\n​\n\n$\n\n110,508\n\n​\n\n$\n\n(18,800)\n\n​\n\n$\n\n1,418\n\n​\n\nLess imputed interest\n\n​\n\n​\n\n(15,150)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(45)\n\n​\n\nTotal lease liability\n\n​\n\n$\n\n95,358\n\n​\n\n​\n\n​\n\n​\n\n$\n\n1,373\n\n​\n\n​\n\n**December 31, 2024**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Operating**\n\n**  ​ ​ ​**\n\n**Sub-lease**\n\n**  ​ ​ ​**\n\n**Finance**\n\n** **\n\n​\n\n​\n\n**Leases**\n\n​\n\n**Income**\n\n​\n\n**Leases**\n\n** **\n\nYear 1\n\n​\n\n$\n\n39,343\n\n​\n\n$\n\n(3,476)\n\n​\n\n$\n\n1,699\n\n​\n\nYear 2\n\n​\n\n \n\n32,980\n\n​\n\n \n\n(965)\n\n​\n\n \n\n1,024\n\n​\n\nYear 3\n\n​\n\n \n\n27,402\n\n​\n\n \n\n(363)\n\n​\n\n \n\n156\n\n​\n\nYear 4\n\n​\n\n \n\n12,439\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\nYear 5\n\n​\n\n \n\n2,936\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\nThereafter\n\n​\n\n \n\n3,931\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\nTotal minimum lease payments\n\n​\n\n$\n\n119,031\n\n​\n\n$\n\n(4,804)\n\n​\n\n$\n\n2,879\n\n​\n\nLess imputed interest\n\n​\n\n​\n\n(14,665)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(142)\n\n​\n\nTotal lease liability\n\n​\n\n$\n\n104,366\n\n​\n\n​\n\n​\n\n​\n\n$\n\n2,737\n\n​\n\n​\n\nFrom time to time, the Company subleases portions of its leased facilities to third-parties for the remaining terms of the related leases. Sublease income is recognized on a straight-line basis over the term of each sublease. At December 31, 2025, the Company had two sublease agreements in place with remaining terms expiring between 2027 and 2031.\n\n​\n\n​\n\n​\n\n​\n\nF-40\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n​\n\n**(16) OTHER LONG-TERM LIABILITIES**\n\nThe components of Other long-term liabilities as of December 31, 2025 and 2024 are as follows (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, 2025**\n\n**  ​ ​ ​**\n\n**December 31, 2024**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDeferred revenue\n\n​\n\n​\n\n$\n\n3,140\n\n \n\n$\n\n4,414\n\n​\n\nDeferred compensation plan\n\n​\n\n​\n\n​\n\n34,515\n\n​\n\n​\n\n34,914\n\n​\n\nOther\n\n​\n\n​\n\n \n\n25,177\n\n​\n\n \n\n28,532\n\n​\n\nTotal\n\n​\n\n​\n\n$\n\n62,832\n\n \n\n$\n\n67,860\n\n​\n\n​\n\n​\n\n**(17)****ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)**\n\nThe following table presents changes in the accumulated balance for each component of Other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Foreign**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**Currency**\n\n​\n\n**Derivative**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**Translation**\n\n​\n\n**Valuation, Net**\n\n​\n\n**Other, Net**\n\n​\n\n​\n\n​\n\n** **\n\n​\n\n​\n\n**Adjustment**\n\n​\n\n**of Tax**\n\n​\n\n**of Tax**\n\n​\n\n**Totals**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Accumulated other comprehensive income (loss) at December 31, 2022**\n\n​\n\n$\n\n(123,734)\n\n​\n\n$\n\n89\n\n​\n\n$\n\n(2,656)\n\n​\n\n$\n\n(126,301)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOther comprehensive income (loss) before reclassifications\n\n​\n\n \n\n30,891\n\n​\n\n \n\n9,160\n\n​\n\n \n\n(39)\n\n​\n\n \n\n40,012\n\n​\n\nAmounts reclassified from accumulated other comprehensive income (loss)\n\n​\n\n \n\n(301)\n\n​\n\n \n\n(2,934)\n\n​\n\n \n\n(352)\n\n​\n\n \n\n(3,587)\n\n​\n\nNet current period other comprehensive (income) loss\n\n​\n\n \n\n30,590\n\n​\n\n \n\n6,226\n\n​\n\n \n\n(391)\n\n​\n\n \n\n36,425\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Accumulated other comprehensive income (loss) at December 31, 2023**\n\n​\n\n$\n\n(93,144)\n\n​\n\n$\n\n6,315\n\n​\n\n$\n\n(3,047)\n\n​\n\n$\n\n(89,876)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Accumulated other comprehensive income (loss) at December 31, 2023**\n\n​\n\n$\n\n(93,144)\n\n \n\n$\n\n6,315\n\n \n\n$\n\n(3,047)\n\n \n\n$\n\n(89,876)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOther comprehensive income (loss) before reclassifications\n\n​\n\n \n\n(30,677)\n\n​\n\n \n\n(9,988)\n\n​\n\n \n\n31\n\n​\n\n \n\n(40,634)\n\n​\n\nAmounts reclassified from accumulated other comprehensive income (loss)\n\n​\n\n \n\n—\n\n​\n\n \n\n(1,910)\n\n​\n\n \n\n299\n\n​\n\n \n\n(1,611)\n\n​\n\nNet current period other comprehensive income (loss)\n\n​\n\n \n\n(30,677)\n\n​\n\n \n\n(11,898)\n\n​\n\n \n\n330\n\n​\n\n \n\n(42,245)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Accumulated other comprehensive income (loss) at December 31, 2024**\n\n​\n\n$\n\n(123,821)\n\n \n\n$\n\n(5,583)\n\n \n\n$\n\n(2,717)\n\n \n\n$\n\n(132,121)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Accumulated other comprehensive income (loss) at December 31, 2024**\n\n​\n\n$\n\n(123,821)\n\n \n\n$\n\n(5,583)\n\n \n\n$\n\n(2,717)\n\n \n\n$\n\n(132,121)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOther comprehensive income (loss) before reclassifications\n\n​\n\n \n\n22,063\n\n​\n\n \n\n4,384\n\n​\n\n \n\n(7)\n\n​\n\n \n\n26,440\n\n​\n\nAmounts reclassified from accumulated other comprehensive income (loss)\n\n​\n\n \n\n(517)\n\n​\n\n \n\n(675)\n\n​\n\n \n\n(65)\n\n​\n\n \n\n(1,257)\n\n​\n\nNet current period other comprehensive income (loss)\n\n​\n\n \n\n21,546\n\n​\n\n \n\n3,709\n\n​\n\n \n\n(72)\n\n​\n\n \n\n25,183\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Accumulated other comprehensive income (loss) at December 31, 2025**\n\n​\n\n$\n\n(102,275)\n\n \n\n$\n\n(1,874)\n\n \n\n$\n\n(2,789)\n\n \n\n$\n\n(106,938)\n\n​\n\nF-41\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n​\n\nThe following table presents the classification and amount of the reclassifications from Accumulated other comprehensive income (loss) to the Consolidated Statements of Comprehensive Income (Loss) (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Statement of**\n\n** **\n\n​\n\n​\n\n**For the Year Ended December 31,**\n\n​\n\n**Comprehensive Income**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**(Loss) Classification**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Derivative valuation**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(Gain)/loss on foreign currency forward exchange contracts\n\n​\n\n$\n\n912\n\n​\n\n$\n\n2,582\n\n​\n\n$\n\n3,964\n\n** **\n\nRevenue\n\n​\n\nTax effect\n\n​\n\n \n\n(237)\n\n​\n\n \n\n(672)\n\n​\n\n \n\n(1,030)\n\n \n\nProvision for income taxes\n\n​\n\n​\n\n​\n\n$\n\n675\n\n​\n\n$\n\n1,910\n\n​\n\n$\n\n2,934\n\n \n\nNet income (loss)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Other**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nActuarial loss on defined benefit plan\n\n​\n\n$\n\n72\n\n​\n\n$\n\n(349)\n\n​\n\n$\n\n391\n\n \n\nCost of services\n\n​\n\nGain on liquidation\n\n​\n\n​\n\n—\n\n​\n\n​\n\n19\n\n​\n\n​\n\n—\n\n​\n\nOther income (expense), net\n\n​\n\nTax effect\n\n​\n\n \n\n(7)\n\n​\n\n \n\n31\n\n​\n\n \n\n(39)\n\n \n\nProvision for income taxes\n\n​\n\n​\n\n​\n\n$\n\n65\n\n​\n\n$\n\n(299)\n\n​\n\n$\n\n352\n\n \n\nNet income (loss)\n\n​\n\n​\n\n​\n\n​\n\n**(18)****WEIGHTED AVERAGE SHARE COUNTS**\n\nThe following table sets forth the computation of basic and diluted shares for the periods indicated (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nShares used in basic earnings per share calculation\n\n​\n\n \n\n48,211\n\n \n\n47,614\n\n \n\n47,335\n\n​\n\nEffect of dilutive securities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nRestricted stock units\n\n​\n\n \n\n—\n\n \n\n—\n\n \n\n78\n\n​\n\nPerformance-based restricted stock units\n\n​\n\n \n\n—\n\n \n\n—\n\n \n\n6\n\n​\n\nTotal effects of dilutive securities\n\n​\n\n \n\n—\n\n \n\n—\n\n \n\n84\n\n​\n\nShares used in dilutive earnings per share calculation\n\n​\n\n \n\n48,211\n\n \n\n47,614\n\n \n\n47,419\n\n​\n\n​\n\nFor the years ended December 31, 2025, 2024 and 2023, restricted stock units of 3.2 million, 2.6 million, and 0.9 million, respectively, were outstanding but not included in the computation of diluted net income per share because the effect would have been anti-dilutive.\n\n​\n\n**(19)****EMPLOYEE COMPENSATION PLANS**\n\n**Employee Benefit Plan**\n\nThe Company currently has a 401(k) profit-sharing plan that allows participation by U.S. employees who have completed six months of service, as defined, and are 21 years of age or older. Participants may defer up to 75% of their gross pay, up to a maximum limit determined by U.S. federal law. Participants are also eligible for a matching contribution. The Company may from time to time, at its discretion, make a “matching contribution” based on the amount and rate of the elective deferrals. The Company determines how much, if any, it will contribute for each dollar of elective deferrals. Participants vest in matching contributions over a three-year period. Company matching contributions to the 401(k) plan(s) totaled $9.6 million, $9.4 million and $11.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.\n\nF-42\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**Equity Compensation Plans**\n\nIn February 2020, the Company adopted the TTEC Holdings, Inc., 2020 Equity Incentive Plan (the “2020 Plan”), which permits awards of incentive stock options, non-qualified stock options, stock appreciation rights, shares of restricted common stock, performance stock units and restricted stock units. The 2020 Plan will also provide for annual equity-based compensation grants to members of the Company’s Board of Directors. Options granted to employees under the 2020 Plan generally vest over three to five years and have a contractual life of ten years. Options issued to Directors vest over one year and have a contractual life of ten years. At the 2020 Annual Stockholder Meeting, the Company received shareholder approval for the 2020 Plan, including 4.0 million shares of common stock to be reserved for issuance under the Plan. At the 2024 Annual Stockholder Meeting, the Company received shareholder approval for an additional 4.5 million shares of TTEC common stock to be reserved for future issuance under the Plan.\n\nThe following table presents the total equity-based compensation expense (stock options and RSUs) for the years ended December 31, 2025, 2024 and 2023 (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31,**\n\n** **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n**2024**\n\n​\n\n**2023**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nEquity-based compensation expense recognized in Cost of services\n\n​\n\n$\n\n4,705\n\n​\n\n$\n\n7,237\n\n​\n\n$\n\n9,766\n\n​\n\nEquity-based compensation expense recognized in Selling, general and administrative\n\n​\n\n​\n\n8,736\n\n​\n\n​\n\n11,453\n\n​\n\n​\n\n12,305\n\n​\n\nTotal equity-based compensation expense\n\n​\n\n$\n\n13,441\n\n​\n\n$\n\n18,690\n\n​\n\n$\n\n22,071\n\n​\n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\n​\n\nTotal tax benefit recognized\n\n​\n\n$\n\n1,148\n\n​\n\n$\n\n747\n\n​\n\n$\n\n2,329\n\n​\n\n​\n\n*Restricted Stock Units*\n\n*2023, 2024 and 2025 RSU Awards:*The Company granted RSUs in 2023, 2024 and 2025 to new and existing employees that vest over three to five years. The Company also granted RSUs in 2023, 2024 and 2025 to members of the Board of Directors that vest over one year.\n\n*Summary of RSUs:*Settlement of the RSUs shall be made in shares of the Company’s common stock by delivery of one share of common stock for each RSU then being settled. The Company calculates the fair value for RSUs based on the closing price of the Company’s stock on the date of grant and records compensation expense over the vesting period using a straight-line method. The Company factors an estimated forfeiture rate in calculating compensation expense on RSUs and adjusts for actual forfeitures upon the vesting of each tranche of RSUs. The Company also factors in the present value of the estimated dividend payments that will have accrued as these RSUs are vesting.\n\nThe weighted average grant-date fair value of RSUs, including performance-based RSUs, granted during the years ended December 31, 2025, 2024, and 2023 was $4.36, $6.55, and $33.34, respectively. The total intrinsic value and fair value of RSUs vested during the years ended December 31, 2025, 2024, and 2023 was $15.6 million, $22.6 million, and $17.7 million, respectively.\n\n*Performance Based Restricted Stock Unit Grants*\n\nDuring 2021, the Company awarded performance-based RSUs (“PRSUs”) that were subject to service and performance vesting conditions. If defined minimum targets were met, the annual value of the PRSUs issued would be between $1.2 million and $4.9 million and vest immediately in 2024. If the defined minimum targets were not met, then no shares would be issued. The number of shares that were awarded was based on the Company's annual revenue and adjusted operating income for the fiscal year 2023. The Company recognized compensation expense related to the 2021 PRSUs of $0.7 million for the year ended December 31, 2023 with 7,452 shares issued in March 2024.\n\nF-43\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\nDuring 2022, the Company granted awards of two different PRSU programs that were subject to service and performance vesting conditions:  ordinary course annual PRSUs and one-time stretch financial goals PRSUs. For the ordinary course annual PRSUs, if defined minimum targets were met, the annual value of the PRSUs issued would have been between $0.9 million and $3.5 million and the PRSUs would have vested in March 2025. If the defined minimum targets were not met, then no shares would be issued. The number of shares that would have been awarded would have been based on the Company’s annual revenue and adjusted EBITDA for the fiscal year 2024. For the 2022 ordinary course annual PRSUs, no shares were issued in March 2025 as defined minimum targets were not met. For the one-time stretch financial goals PRSUs, if defined minimum targets at TTEC Engage and TTEC Digital business segments’ levels were met, the number of shares of PRSUs issued would be between 0.0 million shares and 0.5 million shares and would vest immediately in March 2026. If the defined minimum targets were not met, then no shares would be issued. The number of shares to be awarded would be based on the TTEC Engage and TTEC Digital business segments’ annual revenue and adjusted EBITDA for the fiscal year 2025. The Company did not recognize any compensation expense related to these awards for the year ended December 31, 2025, as defined minimum targets were not met.\n\nDuring 2023, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets were met, the annual value of the PRSUs issued would be between zero and $8.9 million and would vest immediately in 2026. If the defined minimum targets were not met, then no shares would be issued. The number of shares that would be awarded would be based on the Company’s annual revenue and adjusted EBITDA for fiscal year 2025. The Company did not recognize any compensation expense related to these awards for the year ended December 31, 2025, as defined minimum targets were not met.\n\nDuring 2024, the Company awarded PRSUs to senior executives that are subject to service and performance vesting conditions. If defined minimum targets are met, the Company will issue PRSUs with an annual value between zero and $5.9 million that vest in 2026. If the defined minimum targets are not met, then no PRSUs will be issued. The number of PRSUs awarded will be based on the Company’s annual revenue and adjusted EBITDA for fiscal year 2026 and on TTEC Digital’s annual revenue and adjusted EBITDA for fiscal year 2026. Expense for these awards will begin at the start of the requisite service period, beginning January 1, 2026.\n\nA summary of the status of the Company’s non-vested RSUs and PRSUs and activity for the year ended December 31, 2025 is as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**Weighted**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n**Average**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n**Grant Date**\n\n** **\n\n​\n\n​\n\n**Shares**\n\n​\n\n**Fair Value**\n\n** **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nUnvested as of December 31, 2024\n\n \n\n4,245,246\n\n​\n\n$\n\n14.13\n\n​\n\nGranted\n\n \n\n863,040\n\n​\n\n$\n\n4.36\n\n​\n\nVested\n\n \n\n(1,105,963)\n\n​\n\n$\n\n14.06\n\n​\n\nCancellations/expirations\n\n \n\n(523,382)\n\n​\n\n$\n\n13.81\n\n​\n\nUnvested as of December 31, 2025\n\n \n\n3,478,941\n\n​\n\n$\n\n11.64\n\n​\n\n​\n\nBeginning in the third quarter of 2024, all vesting will be from the 2020 equity plan and new common shares will be issued. As of December 31, 2025, there was approximately $16.0 million of total unrecognized compensation expense and approximately $12.5 million in total intrinsic value related to non-vested RSU grants. The unrecognized compensation expense will be recognized over the remaining weighted-average vesting period of 1.3 years using the straight-line method.\n\n​\n\nF-44\n\n[Table of Contents](#Toc)\n\n**TTEC HOLDINGS, INC. AND SUBSIDIARIES**\n\n**Notes to the Consolidated Financial Statements**\n\n**(20)****NON-QUALIFIED DEFERRED COMPENSATION PLAN**\n\nThe Company maintains a non-qualified deferred compensation plan for executive officers and other eligible employees that permits such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment (the “NQ Deferred Compensation Plan”). The Plan allows for deferral of up to 75% of a participant’s base salary, bonus, commissions, and any amounts that U.S. highly compensated employees are limited from contributing into TTEC’s Deferred Tax Retirement Savings Plan (the “401K Plan”). All amounts deferred under the Plan are unfunded, unsecured obligations and are recorded within Other long-term liabilities in the accompanying Consolidated Balance Sheets. In the event of bankruptcy, the assets of this plan are available to satisfy the claims of general creditors. Participants may choose among alternative earnings rates for the amounts they defer, which are primarily based on investment options within the 401K Plan. Amounts contributed and deferred under the Plan are credited or charged with the performance of investment options offered under the plan as elected by the participants. The Company manages the risk of changes in the fair value of the liability for deferred compensation by electing to match its liability under the plan with investment vehicles that offset a portion of its exposure including a Company owned life insurance policy held in a rabbi trust. In the fourth quarter of 2024 the Company suspended additional deferrals into the Plan for 2025 and until further notice.\n\n​\n\n**(21)****RELATED PARTY TRANSACTIONS**\n\nThe Company entered into an agreement under which Avion, LLC (“Avion”) and Airmax LLC (“Airmax”) provide certain aviation flight services as requested by the Company. Such services include the use of an aircraft and flight crew. Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company, has an indirect 100% beneficial ownership interest in Avion and Airmax. During 2025, 2024 and 2023, the Company expensed $0.8 million, $0.6 million and $1.0 million, respectively, to Avion and Airmax for services provided to the Company. There was $0.2 million in payments due and outstanding to Avion and Airmax as of December 31, 2025.\n\nIn 2025, the Company entered into service agreements with Mantucket Capital Management Corporation (“Mantucket”) to provide staff augmentation and cloud migration services. Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company, has a 100% beneficial ownership interest in Mantucket. During the year ended December 31, 2025, the Company recognized revenue under these agreements of $0.2 million.\n\nMs. Michelle Swanback, former President of the Company, whose resignation was effective on December 31, 2024, is a member of the board of directors of WTW (NYSE:WTW) (aka “Willis”), that provides compensation consulting and insurance brokerage services to the Company. During the year ended December 31, 2024, the Company expensed $2.8 million for these services.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nF-45"}