Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of August 2025

Commission File Number 001-39968

TELUS International (Cda) Inc.

(Registrant’s name)

Floor 5, 510 West Georgia Street

Vancouver, BC V6B 0M3

Tel.: (604) 695-3455

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x Form 40-F o

INCORPORATION BY REFERENCE

TELUS International (Cda) Inc.’s unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024 and management’s discussion and analysis of the three and six months ended June 30, 2025 are attached as exhibits to this Report of Foreign Private Issuer on Form 6-K.

This report on Form 6-K shall be deemed to be incorporated by reference in TELUS International (Cda) Inc.’s registration statements on Form F-3 (File No. 333-264066) and Form S-8 (File No. 333-252685) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

SIGNATURE

Pursuant to the requirements 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.


	TELUS International (Cda) Inc.

Date: August 1, 2025	By:	/s/ Gopi Chande
	Name:	Gopi Chande
	Title:	Chief Financial Officer

EXHIBIT


Exhibit			Description of Exhibit

99.1			Condensed Interim Consolidated Financial Statements for the Three and Six Months Ended June 30 , 2025 and 2024
99.2			Management’s Discussion and Analysis for the Three and Six Months Ended June 30 , 2025 and 2024
99.3			Form 52-109F2 Certificate of Interim Filings by CEO (pursuant to Canadian regulations)
99.4			Form 52-109F2 Certificate of Interim Filings by CFO (pursuant to Canadian regulations)

Document

Exhibit 99.1


TELUS INTERNATIONAL (CDA) INC. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2025

TELUS International (Cda) Inc.

Condensed Interim Consolidated Statements of Income (Loss) and Other Comprehensive Income (Loss)

(unaudited)


		Three months				Six months
Periods ended June 30 (millions except earnings per share)	Note	2025		2024		2025		2024
REVENUE	3	$	699	$	652	$	1,369	$	1,309

OPERATING EXPENSES
Salaries and benefits		463		426		907		842
Goods and services purchased		136		117		265		233
Share-based compensation	4	6		10		13		11
Acquisition, integration and other		50		9		56		16
Depreciation	10	39		35		74		69
Amortization of intangible assets and impairment of goodwill	11	271		44		317		89
		965		641		1,632		1,260

OPERATING (LOSS) INCOME		(266)		11		(263)		49

OTHER EXPENSES (INCOME)
Changes in business combination-related provisions	12	—		(31)		—		(60)
Interest expense	5	34		36		64		71
Foreign exchange loss		7		5		5		—
(LOSS) INCOME BEFORE INCOME TAXES		(307)		1		(332)		38
Income tax (recovery) expense	6	(35)		4		(35)		13
NET (LOSS) INCOME		(272)		(3)		(297)		25

OTHER COMPREHENSIVE INCOME (LOSS)
Items that may subsequently be reclassified to income
Change in unrealized fair value of derivatives designated as cash flow hedges		(39)		5		(59)		21
Exchange differences arising from translation of foreign operations		48		(8)		93		(39)
		9		(3)		34		(18)
COMPREHENSIVE (LOSS) INCOME		$	(263)	$	(6)	$	(263)	$	7

EARNINGS (LOSS) PER SHARE	7
Basic		$	(0.98)	$	(0.01)	$	(1.07)	$	0.09
Diluted		$	(0.98)	$	(0.08)	$	(1.07)	$	(0.05)

TOTAL WEIGHTED AVERAGE SHARES OUTSTANDING (millions)
Basic	7	278		275		277		274
Diluted	7	278		294		277		291

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

TELUS International (Cda) Inc.

Condensed Interim Consolidated Statements of Financial Position

(unaudited)


As at (millions)	Note	June 30, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents		$	151	$	174
Accounts receivable	8	491		454
Due from affiliated companies	16(a)	28		16
Income and other taxes receivable		18		8
Prepaid and other assets		65		42
Current portion of derivative assets	9	8		13
		761		707
Non-current assets
Property, plant and equipment, net	10	507		456
Intangible assets, net	11	1,344		1,379
Goodwill	11	1,789		1,926
Derivative assets	9	—		15
Deferred income taxes		12		12
Other long-term assets	17(b)	26		26
		3,678		3,814
Total assets		$	4,439	$	4,521

LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities	17(b)	$	356	$	321
Due to affiliated companies	16(a)	314		231
Income and other taxes payable		61		68
Current portion of provisions	12	49		7
Current maturities of long-term debt	13	126		116
Current portion of derivative liabilities	9	1		2
		907		745
Non-current liabilities
Provisions	12	114		139
Long-term debt	13	1,434		1,409
Derivative liabilities	9	38		—
Deferred income taxes		220		256
Other long-term liabilities		32		27
		1,838		1,831
Total liabilities		2,745		2,576

Owners’ equity		1,694		1,945
Total liabilities and owners’ equity		$	4,439	$	4,521

Contingent liabilities	15

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

TELUS International (Cda) Inc.

Condensed Interim Consolidated Statements of Changes in Owners’ Equity

(unaudited)


(millions)	Number of shares	Share capital		Contributed surplus		Retained earnings (deficit)		Accumulated other comprehensive income (loss)		Total
Balance as at January 1, 2024	274	$	1,648	$	55	$	347	$	(13)	$	2,037
Net income	—	—		—		25		—		25
Other comprehensive loss	—	—		—		—		(18)		(18)
Multiple Voting Shares converted to Subordinate Voting Shares	(3)	(11)		—		—		—		(11)
Subordinate Voting Shares converted from Multiple Voting Shares	3	11		—		—		—		11
Share-based compensation	1	14		(4)		—		—		10
Balance as at June 30, 2024	275	$	1,662	$	51	$	372	$	(31)	$	2,054

Balance as at January 1, 2025	276	$	1,656	$	69	$	286	$	(66)	$	1,945
Net loss	—	—		—		(297)		—		(297)
Other comprehensive income	—	—		—		—		34		34
Share-based compensation	2	16		(4)		—		—		12
Balance as at June 30, 2025	278	$	1,672	$	65	$	(11)	$	(32)	$	1,694

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

TELUS International (Cda) Inc.

Condensed Interim Consolidated Statements of Cash Flows

(unaudited)


		Three months				Six months
Periods ended June 30 (millions)	Note	2025		2024		2025		2024
OPERATING ACTIVITIES
Net (loss) income		$	(272)	$	(3)	$	(297)	$	25
Adjustments:
Depreciation, amortization and impairment of goodwill		310		79		391		158
Interest expense		34		36		64		71
Income tax (recovery) expense		(35)		4		(35)		13
Share-based compensation		6		10		13		11
Changes in business combination-related provisions		—		(31)		—		(60)
Change in market value of derivatives and other		(44)		2		(54)		(4)
Net change in non-cash operating working capital	17(c)	81		43		74		54

Income taxes paid, net		(17)		(16)		(24)		(18)
Cash provided by operating activities		63		124		132		250

INVESTING ACTIVITIES
Cash payments for capital assets	17(c)	(30)		(29)		(57)		(51)
Cash receipts from other assets		—		1		—		1
Cash payments for acquisitions	11	(1)		—		(1)		(3)
Cash used in investing activities		(31)		(28)		(58)		(53)

FINANCING ACTIVITIES
Shares issued		1		1		2		2
Withholding taxes paid related to net share settlement of equity awards	4(a)	(1)		(1)		(3)		(3)
Long-term debt issued	17(d)	237		45		387		90
Repayment of long-term debt	17(d)	(241)		(118)		(452)		(212)

Interest paid on credit facilities		(22)		(24)		(41)		(48)
Cash used in financing activities		(26)		(97)		(107)		(171)

Effect of exchange rate changes on cash and cash equivalents		8		(1)		10		(1)

CASH POSITION
Increase (decrease) in cash and cash equivalents		14		(2)		(23)		25
Cash and cash equivalents, beginning of period		137		154		174		127
Cash and cash equivalents, end of period		$	151	$	152	$	151	$	152

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

TELUS International (Cda) Inc.

Notes to Condensed Interim Consolidated Financial Statements

(unaudited)


TELUS International (Cda) Inc. (TELUS Digital or the Company), formally rebranded to TELUS Digital Experience in the third quarter of 2024, is a digital customer experience innovator that provides digitally enabled customer experience solutions and creates future-focused digital transformations that can withstand disruption and deliver value for our clients. TELUS Digital was incorporated under the Business Corporations Act (British Columbia) on January 2, 2016, and is a subsidiary of TELUS. TELUS Digital maintains its registered office at 510 West Georgia Street, Vancouver, British Columbia. The terms we, us, our or ourselves are used to refer to TELUS Digital and, where the context of the narrative permits or requires, its subsidiaries. Additionally, the term TELUS is a reference to TELUS Corporation, and where the context of the narrative permits or requires, its subsidiaries, excluding TELUS Digital.	Notes to the condensed interim consolidated financial statements		Page
	General application
	1.	Condensed interim consolidated financial statements	5
	2.	Capital structure financial policies	6
	3.	Revenue	7
	4.	Share-based compensation	7
	5.	Interest expense	8
	6.	Income taxes	9
	7.	Earnings (loss) per share	9
	8.	Accounts receivable	10
	9.	Financial instruments	11
	10.	Property, plant and equipment	12
	11.	Intangible assets and goodwill	12
	12.	Provisions	13
	13.	Long-term debt	14
	14.	Share capital	15
	15.	Contingent liabilities	15
	16.	Related party transactions	16
	17.	Additional financial information	18

1. Condensed interim consolidated financial statements

(a) Basis of presentation

The notes presented in our condensed interim consolidated financial statements include only significant events and transactions and are not fully inclusive of all matters normally disclosed in our annual audited financial statements; thus, our interim consolidated financial statements are referred to as condensed. Our financial results may vary from period to period during any fiscal year. The seasonality in our business, and consequently, our financial performance, mirrors that of our clients. Our revenues are typically higher in the third and fourth quarters than in other quarters, but this can vary if there are material changes to our clients’ operating environment, such as potential impacts of a recession and our clients’ response to those impacts, or material changes in the foreign currency rates that we operate in.

These condensed interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2024, and are expressed in United States dollars and follow the same accounting policies and methods of their application as set out in our audited consolidated financial statements for the year ended December 31, 2024. The generally accepted accounting principles that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS® Accounting Standards). Our condensed interim consolidated financial statements comply with IAS 34, Interim Financial Reporting and reflect all adjustments (which are of a normal recurring nature) that are, in our opinion, necessary for a fair statement of the results for the interim periods presented.

These condensed interim consolidated financial statements as at and for the three-and six-month period ended June 30, 2025 were authorized by our Board of Directors for issue on August 1, 2025.

(b) Accounting policy developments

Standards, interpretations and amendments to standards and interpretations not yet effective and not yet applied

In April 2024, the International Accounting Standards Board issued IFRS 18, Presentation and Disclosure in Financial Statements, which sets out the overall requirements for presentation and disclosures in the financial statements. The new standard will replace IAS 1, Presentation of Financial Statements. Although much of the substance of IAS 1, Presentation of Financial Statements, will carry over into the new standard, the new standard incrementally will:

•With a view to improving comparability amongst entities, require presentation in the statement of operations of a subtotal for operating profit and a subtotal for profit before financing and income taxes (both subtotals as defined in the new standard);

•Require disclosure and reconciliation, within a single financial statement note, of management-defined performance measures that are used in public communications to share management’s views of various aspects of an entity’s performance and which are derived from the statement of income and other comprehensive income;

•Enhance the requirements for aggregation and disaggregation of financial statement amounts; and

•Require limited changes to the statement of cash flows, including elimination of options for the classification of interest and dividend cash flows.

The new standard is effective for annual reporting periods beginning on or after January 1, 2027, with earlier adoption permitted. We are currently assessing the impacts of the new standard; while there will be a limited shift of where a number of our management-defined performance measures are disclosed and reconciled (primarily a shift from management’s discussion and analysis to the financial statements), we do not expect that the totality of our financial disclosure will be materially affected by the application of the new standard.

In May 2024, the International Accounting Standards Board issued Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7). The narrow scope amendments are to address diversity in accounting practice in respect of: the classification of financial assets with environmental, social and corporate governance and similar features; and to clarify the date on which a financial asset or financial liability is de-recognized when using electronic payment systems. The new standard is effective for annual reporting periods beginning on or after January 1, 2026, with earlier adoption permitted. We are currently assessing the impacts of the new standard but do not expect to be materially affected by the application of the amendments.

2. Capital structure financial policies

Our objective when managing capital is to maintain a flexible capital structure that optimizes the cost and availability of capital at acceptable risk levels.

In the management of capital and in its definition, we include owners’ equity (excluding accumulated other comprehensive income), long-term debt (including long-term credit facilities and any hedging assets or liabilities associated with our long-term debt, net of amounts recognized in accumulated other comprehensive income and excluding lease liabilities) and cash and cash equivalents. We manage capital by monitoring the financial covenants in our credit facility (Note 13—Long-term debt).

We manage our capital structure and make adjustments to it in light of changes in economic conditions and the risk characteristics of our business. In order to maintain or adjust our capital structure, we may issue new shares, issue new debt with different terms or characteristics, which may be used to replace existing debt, or pay down our debt balance with cash flows from operations.

3. Revenue

We earn revenue pursuant to contracts with our clients, who operate in various industry verticals. The following presents our earned revenue disaggregation for our five largest industry verticals:


	Three months				Six months
Periods ended June 30 (millions)	2025		2024		2025		2024
Tech and Games	$	304	$	275	$	586	$	553
Communications and Media	175		158		348		318
eCommerce and FinTech	56		65		114		133
Healthcare	51		47		101		96
Banking, Financial Services and Insurance	42		39		82		75
All others1	71		68		138		134
	$	699	$	652	$	1,369	$	1,309

1.All others includes, among others, travel and hospitality, energy and utilities, retail, and consumer packaged goods industry verticals.

We serve our clients, who are primarily domiciled in North America, from multiple delivery locations across four geographic regions. In addition, our AI & data solutions service line has clients that are largely supported by crowdsourced contractors that are globally dispersed and not limited to the physical locations of our delivery centres. The following table presents our earned revenue disaggregated by geographic region, based on location of our delivery centre or where service was provided, for the following periods:


	Three months				Six months
Periods ended June 30 (millions)	2025		2024		2025		2024
Europe	$	212	$	187	$	415	$	383
North America	200		180		384		368
Asia-Pacific1	160		164		317		321
Central America and others1	127		121		253		237
	$	699	$	652	$	1,369	$	1,309

1.Effective for the first quarter of 2025, Asia-Pacific includes Africa, and Central America and others includes South America. Comparative information has been restated to conform with the current period presentation.

4. Share-based compensation

(a) Restricted share unit plan

We grant restricted share units (RSUs) and performance restricted share units (PSUs), which are accounted for as equity-settled, as this is the expected manner of their settlement when granted. All awards granted under the restricted share unit plan are nominally equal in value to one TELUS Digital subordinate voting share. Our PSU grants largely have the same features as our RSUs, but have a variable payout (0% — 300%) that depend upon the achievement of operating performance targets (non-market conditions), or total shareholder return on TELUS Digital subordinate voting shares relative to an international peer group of customer experience and digital IT services companies (market conditions). The grant-date fair value of our PSUs affected by the achievement of non-market conditions equals the share price of the corresponding TELUS Digital subordinate voting share as of the grant date. Reflecting a variable payout, we estimate the grant-date fair value of our PSUs affected by the relative total shareholder return performance condition using a Monte Carlo simulation.

The following table presents a summary of the activity related to our restricted share unit plan:


	Three months				Six months
	Number of units		Weighted average grant-date fair value		Number of units		Weighted average grant-date fair value
Periods ended June 30, 2025	Non-vested	Vested			Non-vested	Vested
Outstanding, beginning of period	25,277,511	1,298,199	$	4.92	20,180,936	—	$	6.33
Granted	103,094	—	$	3.63	8,882,253	—	$	2.83
Vested	(105,969)	105,969	$	21.54	(3,167,785)	3,167,785	$	7.85
Exercised1	—	(1,397,191)	$	4.38	—	(3,160,808)	$	7.86
Forfeited	(3,521,056)	(6,977)	$	5.37	(4,141,824)	(6,977)	$	5.32
Outstanding, June 30, 2025	21,753,580	—	$	4.87	21,753,580	—	$	4.87

1.During the three-month period ended June 30, 2025, 1,397,191 RSUs were exercised and settled with 1,374,489 subordinate voting shares issued from treasury and $1.0 million in withholding taxes paid. During the six-month period ended June 30, 2025, 2,989,749 RSUs and 171,059 PSUs were exercised and settled with 2,434,432 subordinate voting shares issued from treasury and $3 million in withholding taxes paid.

As at June 30, 2025, the outstanding restricted share units comprised of 12,308,395 RSUs, 8,670,676 PSUs with non-market conditions, and 774,509 PSUs with market conditions.

(b) Share option award plan

We grant share option awards, which are accounted for as equity-settled, as this is the expected manner of their settlement when granted. Share option awards grant the right to the employee recipient to purchase and receive a subordinate voting share of TELUS Digital for a pre-determined exercise price, and are generally exercisable for a period of ten years from the date of grant. The following table presents the activity related to our share option award plan:


	Three months				Six months
	Number of share option award units		Weighted average exercise price		Number of share option award units		Weighted average exercise price
Periods ended June 30, 2025	Non-vested	Vested			Non-vested	Vested
Outstanding, beginning of period	2,899,794	2,452,934	$	6.53	2,988,882	2,363,846	$	6.53

Vested	—	—	—		(89,088)	89,088	25.00


Forfeited	(83,279)	—	$	3.69	(83,279)		$	3.69
Outstanding, June 30, 20251	2,816,515	2,452,934	$	6.57	2,816,515	2,452,934	$	6.57
Exercisable, June 30, 2025	—	2,452,934	$	9.89	—	2,452,934	$	9.89

1.The exercise price for options outstanding as at June 30, 2025 ranged from $3.69 for 2,816,515 options with a weighted-average remaining contractual life of 9.2 years, $4.87 to $8.95 for 2,096,582 options with a weighted-average remaining contractual life of 1.5 years, and $25.00 for 356,352 options with a weighted-average remaining contractual life of 5.7 years.

5. Interest expense


	Three months				Six months
Periods ended June 30 (millions)	2025		2024		2025		2024
Interest on long-term debt, excluding lease liabilities	$	21	$	26	$	41	$	50
Interest on lease liabilities	9		8		16		15
Amortization of financing fees and other	1		—		2		1
Interest accretion on provisions	3		2		5		5
	$	34	$	36	$	64	$	71

6. Income taxes


	Three months				Six months
Periods ended June 30 (millions)	2025		2024		2025		2024
Current income tax expense (recovery)
For current reporting period	$	12	$	14	$	23	$	27
Pillar Two global minimum tax	—		—		1		1
Adjustments recognized in the current period for income tax of prior periods	(13)		(4)		(14)		(6)
	(1)		10		10		22
Deferred income tax recovery
Arising from the origination and reversal of temporary differences	(34)		(6)		(45)		(9)

	(34)		(6)		(45)		(9)
	$	(35)	$	4	$	(35)	$	13

Our income tax expense (recovery) and effective income tax rate differ from that calculated by applying the applicable statutory

rates for the following reasons:


	Three months								Six months
Periods ended June 30 (millions except percentages)	2025				2024				2025				2024
Income taxes computed at applicable statutory income tax rates	$	(80)	26.1	%	$	(2)	(256.2)	%	$	(89)	26.7	%	$	5	13.7	%
Adjustments recognized in the current period for income tax of prior periods	(13)				(4)				(14)				(6)
Pillar Two global minimum tax	—				—				1				1
Impairment of goodwill	40				—				40				—
Losses not recognized	13				1				14				2
Withholding and other taxes	7				7				11				12
Foreign tax differential	(1)				(1)				(2)				(2)
Non-deductible (taxable) items	—				4				5				2
Other	(1)				(1)				(1)				(1)
Income tax expense	$	(35)	11.4	%	$	4	400.0	%	$	(35)	10.5	%	$	13	34.2	%

7. Earnings (loss) per share

(a)Basic earnings (loss) per share

Basic earnings (loss) per share is calculated by dividing net income (loss) by the total weighted average number of equity shares outstanding during the period.


	Three months				Six months
Periods ended June 30 (millions except earnings per share)	2025		2024		2025		2024
Net (loss) income for the period	$	(272)	$	(3)	$	(297)	$	25
Weighted average number of equity shares outstanding	278		275		277		274
Basic (loss) earnings per share	$	(0.98)	$	(0.01)	$	(1.07)	$	0.09

(b)Diluted earnings (loss) per share

Diluted earnings (loss) per share is calculated to give effect to the potential dilutive effect that could occur if additional equity shares were assumed to be issued under securities or instruments that may entitle their holders to obtain equity shares in the

future, which include share-based compensation awards (see Note 4—Share-based compensation for additional details) and provision for written put options (see Note 14(c)—Intangible assets and goodwill—Business acquisitions in our Annual Report and Note 12—Provisions for additional details). The number of additional shares for inclusion in the diluted earnings per share calculation was determined using the treasury stock method and, for the provision for written put options, the if-converted method.


	Three months				Six months
Periods ended June 30 (millions except earnings per share)	2025		2024		2025		2024
Net (loss) income for the period	$	(272)	$	(3)	(297)		25
After-tax impact of provisions for written put options	—		(21)		—		(40)
Fully diluted net (loss) income	$	(272)	$	(24)	$	(297)	$	(15)
Weighted average number of equity shares outstanding	278		275		277		274
Dilutive effect of share-based compensation	—		—		—		—
Dilutive effect of provisions for written put options	—		19		—		17
Weighted average number of diluted equity shares outstanding	278		294		277		291
Diluted (loss) earnings per share	$	(0.98)	$	(0.08)	$	(1.07)	$	(0.05)

For the three and six-month periods ended June 30, 2025, the dilutive effect of share-based compensation awards and written put options were excluded from the calculation of diluted loss per share, since their conversion to equity shares would decrease diluted loss per share for the period. During the six-month period ended June 30, 2024, NIL Share Options were anti-dilutive and excluded from the calculation of diluted earnings per share.

8. Accounts receivable


As at (millions)	June 30, 2025		December 31, 2024
Accounts receivable – billed	$	228	$	194
Accounts receivable – unbilled	229		240
Other receivables	43		28
	500		462
Allowance for doubtful accounts	(9)		(8)
Total	$	491	$	454

The following table presents an analysis of the age of customer accounts receivable. Any late payment charges are levied at a negotiated rate on outstanding non-current customer account balances.


As at (millions)	June 30, 2025		December 31, 2024
Customer accounts receivable – billed, net of allowance for doubtful accounts
Less than 30 days past billing date	$	131	$	123
30-60 days past billing date	56		52
61-90 days past billing date	23		8
More than 90 days past billing date	9		3
	219		186
Accounts receivable – unbilled	229		240
Other receivables	43		28
Total	$	491	$	454

We maintain allowances for lifetime expected credit losses related to doubtful accounts. Economic conditions (including forward-looking macroeconomic data), historical information (including credit agency reports, if available), reasons for the accounts being past due and line of business from which the customer accounts receivable arose are all considered when determining whether to make allowances for past-due accounts. The same factors are considered when determining whether to write off amounts charged to the allowance for doubtful accounts against the customer accounts receivable. The doubtful accounts expense is calculated on a specific-identification basis for customer accounts receivable over a specific balance

threshold and on a statistically derived allowance basis for the remainder. No customer accounts receivable balances are written off directly to bad debt expense.

The following table presents a summary of the activity related to our allowance for doubtful accounts:


	Three months				Six months
Periods ended June 30 (millions)	2025		2024		2025		2024
Balance, beginning of period	$	8	$	5	$	8	$	2
Additions	1		—		1		3


Balance, end of period	$	9	$	5	$	9	$	5

9. Financial instruments

General

The carrying values of cash and cash equivalents, due from or to affiliated companies, accounts receivable, accounts payable and accrued liabilities and certain provisions approximate their fair values due to the immediate or short-term maturity of these financial instruments. Our long-term debt, measured at amortized cost, approximates fair value as it bears interest at applicable market rates.

The fair values of the derivative financial instruments we use to manage our exposure to currency risks are estimated based upon quoted market prices in active markets for the same or similar financial instruments or on the current rates offered to us for financial instruments of the same maturity, as well as discounted future cash flows determined using current rates for similar financial instruments subject to similar risks and maturities (such fair value estimates being largely based on the EUR: USD and PHP: USD forward exchange rates as at the statement of financial position dates).

Derivative

The derivative financial instruments that we measure at fair value on a recurring basis subsequent to initial recognition are set out below; all such items use significant other observable inputs (Level 2) for measuring fair value at the reporting date.


		June 30, 2025							December 31, 2024
As at (millions)	Designation	Maximum maturity date	Notional amount		Fair value and carrying value		Price or rate		Maximum maturity date	Notional amount		Fair value and carrying value		Price or rate
Current assets1
Derivatives used to manage
Currency risks arising from Euro business acquisition	HFH3	2026	$	35	$	6	USD:1.00 EUR:0.92		2025	$	30	$	—	USD:1.00 EUR:0.92
Currency risks arising from Philippine peso denominated purchases	HFT2	2026	$	66	$	2	USD:1.00 PHP:57.89		2025	$	31	$	12	USD:1.00 PHP:58.48
Interest rate risk associated with non-fixed rate credit facility amounts drawn	HFH3	2026	$	8	$	—	3.52	%	2025	$	9	$	1	3.52%

Non-current assets1
Derivatives used to manage
Currency risks arising from Euro business acquisition	HFH3	—	$	—	$	—	—		—	$	387	$	14	USD:1.00 EUR:0.92
Interest rate risk associated with non-fixed rate credit facility amounts drawn	HFH3	—	$	—	$	—	—	%	—	$	146	$	1	—



Current liabilities1
Derivatives used to manage

Currency risks arising from Philippine peso denominated purchases	HFT2	2026	$	65	$	1	USD:1.00 PHP:55.99		2025	$	89	$	2	USD:1.00 PHP:56.66


Non-current liabilities1
Derivatives used to manage
Currency risks arising from Euro business acquisition	HFH3	2028	$	422	$	37	USD:1.00 EUR:0.92		—	$	—	$	—	—
Interest rate risk associated with non-fixed rate credit facility amounts drawn	HFH3	2028	$	143	$	1	3.52	%	—	$	—	$	—	—

1.Notional amounts of derivative financial assets and liabilities are not set off.

2.Foreign currency hedges are designated as held for trading (HFT) upon initial recognition; hedge accounting is not applied.

3.Designated as held for hedging (HFH) upon initial recognition (cash flow hedging item); hedge accounting is applied. Unless otherwise noted, hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items.

10. Property, plant and equipment


	Owned assets										Right-of-use lease assets
(millions)	Network assets		Buildings and leasehold improvements		Computer equipment, furniture, and other		Assets under construction		Total		Buildings		Total
At cost
As at January 1, 2025	$	55	$	170	$	312	$	37	$	574	$	479	$	1,053
Additions	3		4		13		26		46		61		107

Dispositions, retirements and other	—		(1)		(4)		—		(5)		(6)		(11)
Transfers	1		3		11		(15)		—		—		—
Foreign exchange	1		9		10		5		25		17		42
As at June 30, 2025	$	60	$	185	$	342	$	53	$	640	$	551	$	1,191
Accumulated depreciation
As at January 1, 2025	$	37	$	94	$	205	$	—	$	336	$	261	$	597
Depreciation	4		9		24		—		37		37		74
Dispositions, retirements and other	—		(1)		(3)		—		(4)		(3)		(7)
Foreign exchange	—		7		7		—		14		6		20
As at June 30, 2025	$	41	$	109	$	233	$	—	$	383	$	301	$	684
Net book value
As at December 31, 2024	$	18	$	76	$	107	$	37	$	238	$	218	$	456
As at June 30, 2025	$	19	$	76	$	109	$	53	$	257	$	250	$	507

11. Intangible assets and goodwill

(a) Intangible assets and goodwill


(millions)	Customer relationships		Crowdsource assets		Software		Brand and other		Total intangible assets		Goodwill		Total intangible assets and goodwill
At cost
As at January 1, 2025	$	1,737	$	120	$	85	$	103	$	2,045	$	1,926	$	3,971
Additions	—		—		13		—		13		—		13
Additions from acquisition1	5		—		2		—		7		28		35
Dispositions, retirements and other	—		—		(3)		(1)		(4)		—		(4)
Foreign exchange	70		—		5		1		76		59		135
As at June 30, 2025	$	1,812	$	120	$	102	$	103	$	2,137	$	2,013	$	4,150
Accumulated amortization
As at January 1, 2025	$	530	$	60	$	35	$	41	$	666	$	—	$	666
Amortization2	70		8		7		8		93		—		93
Impairment	—		—		—		—		—		224		224
Dispositions, retirements and other	—		—		(2)		—		(2)		—		(2)
Foreign exchange	35		—		1		—		36		—		36
As at June 30, 2025	$	635	$	68	$	41	$	49	$	793	$	224	$	1,017
Net book value
As at December 31, 2024	$	1,207	$	60	$	50	$	62	$	1,379	$	1,926	$	3,305
As at June 30, 2025	$	1,177	$	52	$	61	$	54	$	1,344	$	1,789	$	3,133

1.During the three-month period ended June 30, 2025, we acquired a business which expanded our digital solutions service line for a purchase price of $16.1 million, including cash consideration of $0.5 million.

2.During the three-month period ended June 30, 2025, $46.0 million of amortization of intangible assets was recognized.

(b) Impairment testing of goodwill

As at June 30, 2025, relevant events and circumstances were such that it was considered appropriate to test the carrying value of the Company’s single cash-generating unit. During the six-month period ended June 30, 2025, the Company’s competitive industry continued to experience prolonged macroeconomic pressures affecting the level and timing of customer demand, with commensurate impacts on our key future growth and operating metric assumptions and estimates resulting in an estimated recoverable amount of $3.2 billion as at June 30, 2025 and goodwill impairment loss of $224 million recorded in Amortization of intangible assets and impairment of goodwill line of the Condensed Interim Consolidated Statements of Income (Loss) and Other Comprehensive Income (Loss).

The recoverable amount was determined based on a fair value less costs of disposal method (such method categorized as a Level 3 fair value measure) and used a discount rate of 10.1% (December 31, 2024 – 9.8%), a perpetual growth rate of 2.5% (December 31, 2024 – 3.0%) and cash flow projections through the end of 2029. The recoverable amount was principally affected by changes in key valuation assumptions including the weighted average cost of capital, the perpetual growth rate and lower cash flow forecasts arising from gross margin pricing pressure.There is a material degree of uncertainty with respect to the estimate of the recoverable amount, given the necessity of making key economic assumptions about future cash flows.

The fair value less costs of disposal method uses discounted cash flow projections that employ the following key assumptions: future cash flows and growth projections; associated economic risk assumptions and estimates of the likelihood of achieving key operating metrics and drivers; and the future weighted average cost of capital. If the future financial performance were to adversely differ from management’s best estimates for the key assumptions and associated cash flows were to be materially adversely affected, we could potentially experience additional future material impairment charges in respect of the Company’s cash-generating unit.

12. Provisions


(millions)	Employee related1		Written put options2		Other3		Total
As at January 1, 2025	$	6	$	134	$	6	$	146
Additions	49		—		22		71
Use	(46)		—		(8)		(54)
Reversals	—		(3)		—		(3)
Interest effect and other	—		3		—		3
As at June 30, 2025	$	9	$	134	$	20	$	163
Current	6		42		1		49
Non-current	3		92		19		114
As at June 30, 2025	$	9	$	134	$	20	$	163

1.During the second quarter of fiscal 2025, the Company implemented a workforce restructuring initiative at one of our delivery locations, which is reflected in our employee-related restructuring provisions.

2.In connection with our acquisition of WillowTree in 2023, a provision for written put options to acquire the non-controlling interest in the WillowTree business retained by certain members of WillowTree management was established.

3.Other provisions relate to legal and other activities that arise during the normal course of operations including earnouts related to acquisition.

13. Long-term debt

(a) Details of long-term debt


As at (millions)	June 30, 2025		December 31, 2024
Credit facility	$	1,280	$	1,284
Deferred debt transaction costs	(9)		(8)
	1,271		1,276
Lease liabilities	289		249
Long-term debt	$	1,560	$	1,525
Current	126		116
Non-current	1,434		1,409
Long-term debt	$	1,560	$	1,525

(b) Credit facility

We have a credit facility secured by our assets with a syndicate of financial institutions, which includes TELUS as a lender, maturing on January 3, 2028. As at June 30, 2025, TELUS participates as a lender of 7.17% of our total credit facility (December 31, 2024 - 7.17%). The credit facility is comprised of an $800 million revolving credit facility and an amortizing $1.2 billion term loan. As at June 30, 2025, the revolving credit facility and term loan had an effective interest rate of 6.7% (December 31, 2024 - 6.5%).


	June 30, 2025						December 31, 2024
As at (millions)	Revolving component		Term loan component1		Total		Revolving component		Term loan component		Total
Available	$	545	$	—	$	545	$	611	$	—	$	611
Outstanding
Due to TELUS	18		73		91		14		78		92
Due to Other	237		952		1,189		175		1,017		1,192
	255		1,025		1,280		189		1,095		1,284
Total	$	800	$	1,025	$	1,825	$	800	$	1,095	$	1,895

1.Relative to amounts owed to the syndicate of financial institutions, excluding TELUS, we have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively convert an amortizing amount of $398 million of the principal payments, and associated interest obligations, to European euro obligations with an effective fixed interest rate of 2.6% and an effective fixed exchange rate of US$1.088:€1.00 on the principal amount; the initial notional amount of these foreign exchange derivatives was US$448 million. These have been accounted for as a net investment hedge in a foreign operation (see Note 9—Financial instruments for additional details)

The credit facility bears interest at prime rate, U.S. dollar base rate, or term secured overnight financing rate (SOFR) (all such terms as used or defined in the credit facility) plus applicable margins. The credit facility includes customary representations, warranties and covenants, including two financial quarter-end ratio tests. Net Debt to Adjusted EBITDA ratio, both measures as defined in our credit agreement, must not exceed 3.75:1.00 for each quarter in fiscal 2025 and 3.25:1.00 subsequently. The Adjusted EBITDA to Debt Service (interest and scheduled principal repayment) ratio must not be less than 1.50:1.00, all as defined in the credit facility. If an acquisition with an aggregate cash consideration in excess of $250 million occurs in any twelve-month period, the maximum permitted Net Debt to Adjusted EBITDA ratio per credit agreement may be increased by 0.50:1.00 and shall return to the then applicable Net Debt to Adjusted EBITDA ratio after eight fiscal quarters.

The term loan under the credit facility is subject to an amortization schedule requiring that a minimum of 1.25% of the original principal amount be repaid each quarter, with the remaining balance due at maturity of the amended credit facility on January 3, 2028.

As at June 30, 2025, we were in compliance with all financial covenants, financial ratios and all of the terms and conditions of our credit facility and long-term debt agreement. Should our Net Debt to Adjusted EBITDA exceed the current

covenant in future quarters, we may undertake a combination of measures including requesting shareholder loan support from the Parent company with terms that are compliant with the Credit Agreement or to seek a Credit Facility amendment.

Anticipated requirements to meet long-term debt repayments, calculated upon such long-term debts owing as at June 30, 2025, are as follows:


Composite long-term debt denominated in	U.S. dollars						European euros		Other currencies
For each fiscal year ending December 31 (millions)	Long-term debt, excluding leases		Leases		Total		Leases		Leases		Total
2025 (remainder of year)	$	30	$	10	$	40	$	8	$	12	$	60
2026	60		18		78		11		26		115
2027	60		17		77		8		21		106
2028	1,130		16		1,146		5		19		1,170
2029	—		20		20		5		14		39
Thereafter	—		33		33		27		19		79
Future cash outflows in respect of composite long-term debt principal repayments	1,280		114		1,394		64		111		1,569
Future cash outflows in respect of associated interest and like carrying costs1	225		62		287		16		40		343
Undiscounted contractual maturities	$	1,505	$	176	$	1,681	$	80	$	151	$	1,912

1.Future cash outflows in respect of associated interest and carrying costs for amounts drawn under our credit facility (if any) have been calculated based upon the rates in effect at June 30, 2025.

14. Share capital

Our authorized and issued share capital is as follows:

Authorized

Issued

As at (millions)

June 30, 2025

December 31, 2024

June 30, 2025

December 31, 2024

Preferred Shares

unlimited

—

Equity Shares

Multiple Voting Shares

unlimited

164

Subordinate Voting Shares

unlimited

114

112

As at June 30, 2025, there were 66 million authorized but unissued subordinate voting shares reserved for issuance under our share-based compensation plans, and 4 million authorized but unissued subordinate voting shares reserved for issuance under our employee share purchase plan.

15. Contingent liabilities

(a)Indemnification obligations

In the normal course of operations, we provide indemnification in conjunction with certain transactions. The terms of these indemnification obligations range in duration. These indemnifications would require us to compensate the indemnified parties for costs incurred as a result of failure to comply with contractual obligations or litigation claims or statutory sanctions or damages that may be suffered by an indemnified party. In some cases, there is no maximum limit on these indemnification obligations. The overall maximum amount of an indemnification obligation will depend on future events and conditions and

therefore cannot be reasonably estimated. Where appropriate, an indemnification obligation is recorded as a liability. Other than obligations recorded as liabilities at the time of such transactions, if applicable, historically we have not made significant payments under these indemnifications. As at June 30, 2025, we had no liability recorded in respect of indemnification obligations (December 31, 2024 - $NIL).

(b)Claims and lawsuits

We are party to various legal proceedings and claims that arise in the ordinary course of business. The ultimate outcome of these matters is inherently uncertain. Therefore, if one or more of these matters were resolved against us for amounts in excess of management's estimates of loss, or if any outcome becomes more likely than not and estimable, our results of operations and financial condition could be adversely affected.

16. Related party transactions

(a)Transactions with TELUS

TELUS produces consolidated financial statements available for public use and is the ultimate parent and controlling party of TELUS Digital.

Recurring transactions

TELUS and its subsidiaries receive customer care, integrated business process outsourcing, information technology outsourcing, and digital product development services from us, and provide services (including people, network, finance, communications, and regulatory) to us. We also participate in defined benefit pension plans that share risks between TELUS and its subsidiaries.


	2025						2024
Three months ended June 30 (millions)	TELUS (parent)		Subsidiaries of TELUS		Total		TELUS (parent)		Subsidiaries of TELUS		Total
Transactions with TELUS and subsidiaries
Revenues from services provided to	$	—	$	179	$	179	$	—	$	159	$	159
Goods and services purchased from	—		(6)		(6)		—		(4)		(4)
	—		173		173		—		155		155
Receipts from related parties	—		(192)		(192)		—		(147)		(147)
Payments to related parties	—		8		8		—		5		5
Payments (made) collected by related parties on our behalf and other adjustments	(37)		7		(30)		(28)		13		(15)
Foreign exchange	(16)		—		(16)		10		—		10
Change in balance	(53)		(4)		(57)		(18)		26		8
Accounts with TELUS and subsidiaries
Balance, beginning of period	(246)		17		(229)		(156)		24		(132)
Balance, end of period	$	(299)	$	13	$	(286)	$	(174)	$	50	$	(124)
Accounts with TELUS and subsidiaries
Due from affiliated companies	$	10	$	18	$	28	$	20	$	54	$	74
Due to affiliated companies	(309)		(5)		(314)		(194)		(4)		(198)
	$	(299)	$	13	$	(286)	$	(174)	$	50	$	(124)


	2025						2024
Six months ended June 30 (millions)	TELUS (parent)		Subsidiaries of TELUS		Total		TELUS (parent)		Subsidiaries of TELUS		Total
Transactions with TELUS and subsidiaries
Revenues from services provided to	$	—	$	357	$	357	$	—	$	319	$	319
Goods and services purchased from	—		(13)		(13)		—		(9)		(9)
	—		344		344		—		310		310
Receipts from related parties	—		(362)		(362)		—		(321)		(321)
Payments to related parties	—		12		12		—		12		12
Payments (made) collected by related parties on our behalf and other adjustments	(63)		14		(49)		(28)		14		(14)
Foreign exchange	(16)		—		(16)		5		—		5
Change in balance	(79)		8		(71)		(23)		15		(8)
Accounts with TELUS and subsidiaries
Balance, beginning of period	(220)		5		(215)		(151)		35		(116)
Balance, end of period	$	(299)	$	13	$	(286)	$	(174)	$	50	$	(124)
Accounts with TELUS and subsidiaries	—		—				—		—
Due from affiliated companies	$	10	$	18	$	28	$	20	$	54	$	74
Due to affiliated companies	(309)		(5)		(314)		(194)		(4)		(198)
	$	(299)	$	13	$	(286)	$	(174)	$	50	$	(124)

In the condensed interim consolidated statement of financial position, amounts due from affiliates and amounts due to affiliates, where contractually required, are generally due 30 days from billing and are cash-settled on a gross basis.

(b)Transactions with key management personnel

Our key management personnel have the authority and responsibility for overseeing, planning, directing and controlling our activities and consist of our Board of Directors and our Executive Leadership Team.

During the three-month period ended June 30, 2025, share-based compensation expense of $3 million was recognized. There were no RSU or PSU grants to our key management personnel.

During the six-month period ended June 30, 2025, share-based compensation expense of $5 million was recognized. We granted 2,042,833 RSUs and 1,377,090 PSUs, with total grant-date fair value of $10 million.

17. Additional financial information

(a)Statements of income (loss) and other comprehensive income (loss)

During the six-month periods ended June 30, 2025 and 2024, TELUS, our controlling shareholder and largest client, accounted for 26.1% and 24.4% of our consolidated revenue, respectively, while our second largest client, Google, accounted for 11.6% and 14.3% of our consolidated revenue, respectively.

(b)Statements of financial position


As at (millions)	June 30, 2025		December 31, 2024
Other long-term assets
Lease deposits	$	16	$	15
Prepaid software and maintenance costs	6		6
Other	4		5
	$	26	$	26
Accounts payable and accrued liabilities
Trade accounts payable	$	21	$	36
Accrued liabilities	106		102
Payroll and other employee-related liabilities	175		159
Advance billings	20		12
Other	34		12
	$	356	$	321

(c)Statements of cash flows—operating activities and investing activities


	Three months				Six months
Periods ended June 30 (millions)	2025		2024		2025		2024
Net change in non-cash operating working capital
Accounts receivable	$	23	$	11	$	38	$	29
Due to and from affiliated companies, net	56		(8)		70		8
Prepaid expenses	(8)		5		(22)		(16)
Other long-term assets	—		(1)		—		(1)
Accounts payable and accrued liabilities	2		27		(16)		23
Income and other taxes receivable and payable, net	(1)		4		(2)		4
Provisions	5		3		1		2
Other long-term liabilities	4		2		5		5
	$	81	$	43	$	74	$	54
Cash payments for capital assets
Capital asset additions
Capital expenditures
Property, plant and equipment, excluding right-of-use assets	(24)		(16)		(46)		(29)
Intangible assets	(8)		(12)		(14)		(18)
	(32)		(28)		(60)		(47)
Change in accrued payables related to the purchase of capital assets	2		(1)		3		(4)
	$	(30)	$	(29)	$	(57)	$	(51)

(d)Changes in liabilities arising from financing activities


			Statements of cash flows				Non-cash changes
Three-month period ended June 30, 2025 (millions)	Beginning of Period		Issued or received		Redemptions, repayments or payments		Foreign exchange movement		Other		End of period
Long-term debt
Credit facility	$	1,245	$	237	$	(217)	$	—	$	15	$	1,280
Lease liabilities	254		—		(24)		5		54		289
Deferred debt transaction costs	(9)		—		—		—		—		(9)
	$	1,490	$	237	$	(241)	$	5	$	69	$	1,560


			Statements of cash flows				Non-cash changes
Three-month period ended June 30, 2024 (millions)	Beginning of Period		Issued or received		Redemptions, repayments or payments		Foreign exchange movement		Other		End of period
Long-term debt
Credit facility	$	1,436	$	45	$	(95)	$	—	$	—	$	1,386
Lease liabilities	288		—		(23)		(1)		14		278
Deferred debt transaction costs	(10)		—		—		—		—		(10)
	$	1,714	$	45	$	(118)	$	(1)	$	14	$	1,654


			Statements of cash flows				Non-cash changes
Six-month period ended June 30, 2025 (millions)	Beginning of Period		Issued or received		Redemptions, repayments or payments		Foreign exchange movement		Other		End of period
Long-term debt
Credit facility	$	1,284	$	387	$	(406)	$	—	$	15	$	1,280
Lease liabilities	249		—		(46)		8		78		289
Deferred debt transaction costs	(8)		—		—		—		(1)		(9)
	$	1,525	$	387	$	(452)	$	8	$	92	$	1,560


			Statements of cash flows						Non-cash changes
Six-month period ended June 30, 2024 (millions)	Beginning of Period		Issued or received		Redemptions, repayments or payments				Foreign exchange movement		Other		End of period
Long-term debt
Credit facility	$	1,463	$	90	$	(167)			$	—	$	—	$	1,386
Lease liabilities	298		—		(45)				(3)		28		278
Deferred debt transaction costs	(11)		—		—				—		1		(10)
	$	1,750	$	90	$	(212)	$	—	$	(3)	$	29	$	1,654

Document

Exhibit 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Table of Contents


Caution Regarding Forward-Looking Statements			1
Overview of the Business			1
Factors Affecting Our Performance and Related Trends			2
Results of Operations			4
Non-GAAP Financial Measures and non-GAAP Ratios			11
Summary of Consolidated Quarterly Results and Trends			15
Related Party Transactions			16
Liquidity and Capital Resources			17
Capital Expenditures			19
Contractual Obligations			19
Off-Balance Sheet Arrangements			20
Quantitative and Qualitative Disclosures about Market Risk			20
Changes in Internal Control over Financial Reporting			21
Special Note Regarding Forward-Looking Statements			21

Caution Regarding Forward-Looking Statements

The following is a discussion of the financial condition and financial performance of TELUS International (Cda) Inc. (the Company or TELUS Digital) for the three and six months ended June 30, 2025 and is dated August 1, 2025. This discussion and analysis of our financial condition and financial performance should be read in conjunction with the Company’s unaudited condensed interim consolidated financial statements and the related notes thereto for the three and six months ended June 30, 2025, and the audited annual consolidated financial statements and the related notes thereto for the year ended December 31, 2024, and the risk factors identified under “Item 3D—Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended December 31, 2024, (Annual Report) filed with the SEC at www.sec.gov/edgar.shtml and on SEDAR+ at www.sedarplus.ca, as such risk factors are updated herein. This discussion is presented in U.S. dollars, except where otherwise indicated and based on financial information prepared in accordance with generally accepted accounting principles (GAAP). The GAAP that we use are the International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS® Accounting Standards), which might differ in material respects from accounting principles generally accepted in other jurisdictions, including the United States.

Information contained in this discussion, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. By their nature, forward-looking statements are subject to risks and uncertainties and are based on assumptions, including assumptions about future economic conditions, events and courses of action, many of which we do not control. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements. You should review the section at the end of this discussion entitled “Special Note Regarding Forward-Looking Statements,” and the risk factors identified under “Item 3D—Risk Factors” in our Annual Report for a discussion of important factors that could cause actual results to differ materially from the results projected, described in or implied by the forward-looking statements contained in the following discussion. In our discussion, we also use certain non-GAAP financial measures and non-GAAP ratios to evaluate our performance, monitor compliance with debt covenants and manage our capital structure. These measures are defined, qualified and reconciled with the most directly comparable GAAP measures in the “Non-GAAP Financial Measures and Non-GAAP Ratios” section below.

Overview of the Business

TELUS Digital provides digitally enabled customer experience solutions and creates future-focused digital transformations that can withstand disruption and deliver value for our clients. Our end-to-end capabilities address multiple client needs, including digital customer experience management and the digital transformation of IT and customer experience systems, as well as new and emerging client needs, such as digital trust, safety and security, AI data services and generative AI solutions in customer experience. We were established in 2005 under the ownership of TELUS, who remains our controlling shareholder.

Over the years, we have grown through organic investments and acquisitions to serve our global clients, including the expansion of our delivery model in multiple regions, including Asia-Pacific, Europe, North America and Central America, and developed a broader set of digital capabilities.

We believe our ability to help clients realize better business outcomes begins with the talented team members dedicated to supporting them. We have a unique and differentiated culture that places people and a shared set of values at the forefront of everything we do, driving team member engagement, retention and customer satisfaction.

Our delivery locations are strategically selected based on factors, such as access to diverse, skilled talent, proximity to clients and ability to deliver our services over multiple time zones and in multiple languages. They are connected through a robust infrastructure backed by cloud technologies, enabling globally distributed and virtualized teams. As at June 30, 2025, we had over 78,000 team members in 64 delivery locations and global operations across 31 countries.

Today, our clients include companies across multiple verticals, including Tech and Games, Communications and Media, eCommerce and FinTech, Healthcare, and Banking, Financial Services and Insurance (BFSI), among others. Our relationship with TELUS, our largest client and controlling shareholder, is subject to a master services agreement for a term of ten years beginning in January 2021 and a minimum annual spend of $200 million, subject to adjustment in accordance with its terms. For more information, see “Item 7B—Related Party Transactions—Our Relationship with TELUS—Master Services Agreement” in our Annual Report.

Factors Affecting Our Performance and Related Trends

A comprehensive list of risk factors that may impact our business performance is included under section “Item 3D-Risk Factors” in our Annual Report. We believe that the key factors affecting our business and financial performance include:

Our Ability to Expand and Retain Existing Client Relationships and Attract New Clients

We have a diverse base of clients, including leaders and disruptors across the industry verticals we serve. Through our commitment to customer experience and innovation, we have been able to sustain long-term partnerships with many clients, often expanding our relationship through multiple service offerings that we provide through a number of delivery locations.

To grow our revenue, we seek to continue to increase the number and scope of service offerings we provide to our existing clients. In addition, our continued revenue growth will depend on our ability to win new clients, particularly given that a limited number of clients account for a significant portion of our revenue. We seek to partner with prospective clients that value premium digital and customer experience solutions and services.

Our ability to maintain and expand relationships with our clients, as well as to attract new clients, will depend on a number of factors, including: our ability to maintain a “customers-first” culture across our organization; our level of innovation, expertise and retention of team member talent; a consistently high level of service experience and our ability to implement effective practices, processes and technologies in support of that service level, as evidenced by, among others measures, the satisfaction ratings that our clients receive from their customers based on the services we provide; the technological advantages we offer; our positive reputation, as a result of our corporate social responsibility initiatives and otherwise; and changes in the legal and regulatory landscape in relation to the services we offer.

Our Ability to Attract and Retain Talent

As at June 30, 2025, we had over 78,000 team members located across 31 countries in various geographic regions, servicing clients in over 50 languages. In addition, our AI & data solutions service line is supported by a community of over one million crowdsourced contractors that are geographically dispersed across the globe.

Ensuring that our team members feel valued and engaged is integral to our performance, as our team members enable us to provide our unique, “customer-first” and caring culture to our clients’ customers, which has driven our strong client retention, higher satisfaction scores and overall better experience for our clients’ customers. This has, in part, been responsible for our growth and differentiation in the marketplace, enabling us to enhance our existing client relationships and build new ones. As a result, we make significant investments to attract, select, retain and develop talent across our product and service offerings. We have devoted, and will continue to devote, substantial resources to creating engaging, inspiring, world-class physical workplaces; recruiting; cultivating talent selection proficiencies and proprietary methods of performance measurement; growing employee engagement including rewards and development; supporting our corporate sustainability initiatives; and acquiring new talent and capabilities to meet our clients’ evolving needs. Our ability to attract and retain team member talent will depend on a number of factors, including our ability to: compete for talent with competitive service providers in the geographies in which we operate; provide innovative compensation packages and benefits to our team members; retain and integrate talent from our acquisitions; and meet or exceed evolving expectations related to corporate sustainability.

Impact of Government and Legislation

Recent political developments, particularly those in the United States, may result in changes to existing laws that would restrict or require disclosure of offshore outsourcing by our clients or impose new standards that negatively impact our operating results. Additionally, trade disputes may lead to unexpected operating difficulties in certain countries, including enhanced regulatory scrutiny and increased tariffs, which may increase the overall costs and negatively impact the economics of our business.

Securities markets worldwide have experienced, and are likely to continue to experience, significant price and volume fluctuations. This market volatility, as well as general natural, economic, market or political conditions, have subjected and could continue to subject the market price of our subordinate voting shares to price fluctuations regardless of our operating performance.

Impact of Legal Proceedings

Certain of our shareholders recently brought proposed class action lawsuits against us, and the magnitude of potential losses may remain uncertain for an extended period of time. These, and potential future lawsuits, may require significant resources to defend and may divert management's attention from our business. Such legal actions may harm our profitability and reputation and may result in unfavorable settlements. Additionally, negative public announcements during litigation may negatively impact our share price.

Impact of Inflation and Interest Rates

The global economy remains in a period of uncertainty with respect to inflation, interest rates and uncertain economic growth. Some regions may experience a recessionary period and we cannot predict where or how long such conditions may last or what their ultimate impact may be on our business. Global economic conditions may adversely affect our liquidity and financial condition, and the liquidity and financial condition of our clients, increase the cost of borrowing and cause credit to become more limited, limit our ability to access financing or increase our cost of financing to meet liquidity needs or fund acquisitions, and affect the ability of our clients to use credit to purchase our services or to make timely payments to us, all of which could have a material adverse effect on our business, financial condition, financial performance and cash flows. Changes in the general level of economic activity, such as decreases in business and consumer spending, could result in pricing pressure on our services and a decrease or delay in demand for the products and services that our clients provide to their customers, and in turn, our clients’ demand for our own services. In addition, because the majority of our costs are fixed in the short-term, we may experience a temporary delay in our ability to immediately right-size our cost structure in response to lower client demand. During the six-months ended June 30, 2025, certain of our clients continue to cut their costs, which resulted in reductions and delays in demand for our services, as well as delays in converting opportunities into spend commitments and pricing pressure, all of which reduced, and could continue to reduce, our revenues and profitability. We cannot predict the ultimate duration or scale of such demand reductions, delays and reduced growth from new clients, or the ultimate impact of these factors on our business. Continued reduction, pricing pressure or delay in demand from existing or potential clients could continue to reduce our revenue and profitability and factor into our decisions on workforce management.

Inflationary pressures have, and could continue to, drive up wage costs in many of the countries where we operate and we are not always able to, and may not be able to in the future, control such wage increases or pass them on to our clients in full or in significant part. In connection with potential future growth and inflation, as well as unexpected increases in the complexity of work, we may need to retrain team members or increase our team member compensation more rapidly than in the past to remain competitive in attracting and retaining the quality and number of team members that our business requires, even if we are unable to increase the prices of our services. To the extent that we are not able to control or sufficiently share wage increases with our clients, wage increases may continue to reduce our margins and net cash flows.

Industry Trends

The industry trends affecting us and that may have an impact on our future performance and financial performance include the trends described in “Item 4B—Business Overview” in our Annual Report.

Seasonality

Our financial results may vary from period to period during any year. The seasonality in our business, and consequently, our financial performance, generally mirrors that of our clients. Our revenues are typically higher in the third and fourth quarters than in other quarters, but this can vary if there are material changes to our clients operating environment, such as potential impacts of a recession and our clients’ response to those impacts, or material changes in the foreign currency rates that we operate in.

Foreign Currency Fluctuations

While our primary operating currency is the U.S. dollar, we are also party to revenue contracts denominated in the European euro and other currencies and a significant portion of our operating expenses are incurred in currencies other than the U.S. dollar. Movements in the exchange rates between the U.S. dollar and these other currencies have an impact on our financial results. The tables below outline revenue and expenses by currency and the percentage of each of the total revenue and operating expenses for each period.


	Three Months Ended June 30								Six Months Ended June 30
	2025				2024				2025				2024
(millions except percentages)	Revenue		% of total		Revenue		% of total		Revenue		% of total		Revenue		% of total
U.S. dollar	$	509	72	%	$	472	72	%	$	991	72	%	$	943	72	%
European euro	145		21	%	141		22	%	282		21	%	285		22	%
Canadian dollar	33		5	%	35		5	%	70		5	%	68		5	%
Other	12		2	%	4		1	%	26		2	%	13		1	%
Total Revenue	$	699	100	%	$	652	100	%	$	1,369	100	%	$	1,309	100	%


	Three Months Ended June 30								Six Months Ended June 30
	2025				2024				2025				2024
(millions except percentages)	Expenses		% of total		Expenses		% of total		Expenses		% of total		Expenses		% of total
U.S. dollar	$	474	49	%	$	234	37	%	$	703	43	%	$	473	38	%
European euro	133		14	%	100		16	%	238		15	%	194		15	%
Philippine peso	79		8	%	73		11	%	154		9	%	149		12	%
Canadian dollar	82		8	%	67		10	%	160		10	%	126		10	%
Other1	197		20	%	167		26	%	377		23	%	318		25	%
Total Operating Expenses	$	965	99	%	$	641	100	%	$	1,632	100	%	$	1,260	100	%

1.Includes currencies such as the Guatemalan quetzal, Bulgarian lev, Romanian leu, Indian rupee and Turkish lira, among others.

The following table presents information on the average foreign exchange rates between the U.S. dollars and the key currencies to which we have exposure:


	Six Months Ended June 30
	2025	2024
European euro to U.S. dollar	1.0915	1.0810
Philippine peso to U.S. dollar	0.0175	0.0176
Canadian dollar to U.S. dollar	0.7095	0.7362

Results of Operations


	Three Months Ended June 30										Six Months Ended June 30
(millions, except per share amounts and percentages)	2025			2024			$ change		% change		2025		2024		$ change		% change
Revenue	$	699		$	652		$	47	7	%	$	1,369	$	1,309	$	60	5	%
Operating Expenses
Salaries and benefits	463			426			37		9	%	907		842		65		8	%
Goods and services purchased	136			117			19		16	%	265		233		32		14	%
Share-based compensation	6			10			(4)		(40)	%	13		11		2		18	%
Acquisition, integration and other	50			9			41		n/m		56		16		40		n/m
Depreciation	39			35			4		11	%	74		69		5		7	%
Amortization of intangible assets and impairment of goodwill	271			44			227		n/m		317		89		228		n/m
	$	965		$	641		$	324	51	%	$	1,632	$	1,260	$	372	30	%
Operating Income	$	(266)		$	11		$	(277)	n/m		$	(263)	$	49	$	(312)	n/m
Changes in business combination-related provisions	—			(31)			31		(100)	%	—		(60)		60		n/m
Interest expense	34			36			(2)		(6)	%	64		71		(7)		(10)	%
Foreign exchange loss	7			5			2		40	%	5		—		5		n/m
(Loss) Income before Income Taxes	(307)			1			(308)		n/m		(332)		38		(370)		n/m
Income taxes expense (recovery)	(35)			4			(39)		n/m		(35)		13		(48)		n/m
Net (Loss) Income	$	(272)		$	(3)		$	(269)	n/m		$	(297)	$	25	$	(322)	n/m

Earnings (Loss) per Share
Basic (Loss) Earnings per Share	$	(0.98)		$	(0.01)		$	(0.97)	n/m		$	(1.07)	$	0.09	$	(1.16)	n/m
Diluted (Loss) Earnings per Share	$	(0.98)		$	(0.08)		$	(0.90)	n/m		$	(1.07)	$	(0.05)	$	(1.02)	n/m

Other financial information
Net (Loss) Income Margin	(38.9)		%	(0.5)		%	—		(38.4)	pp	(21.7)%		1.9%		—		(23.6)	pp
Adjusted Net Income1,2	$	16		$	46		$	(30)	(65)	%	$	33	$	111	$	(78)	(70)	%
Adjusted Basic Earnings per Share1,2	$	0.06		$	0.17		$	(0.11)	(65)	%	$	0.12	$	0.41	$	(0.29)	(71)	%
Adjusted Diluted Earnings per Share1,2,3	$	0.06		$	0.16		$	(0.10)	(63)	%	$	0.12	$	0.38	$	(0.26)	(68)	%
Adjusted EBITDA1,2	$	94		$	130		$	(36)	(28)	%	$	184	$	283	$	(99)	(35)	%
Adjusted EBITDA Margin1	13.4%			19.9%			—		(6.5)	pp	13.4%		21.6%		—		(8.2)	pp
Cash provided by operating activities	$	63		$	124		$	(61)	(49)	%	$	132	$	250	$	(118)	(47)	%
Free Cash Flow1	$	33		$	95		$	(62)	(65)	%	$	75	$	199	$	(124)	(62)	%
Gross Profit1	$	(70)		$	150		$	(220)	(147)	%	$	73	$	308	$	(235)	(76)	%
Gross Profit Margin1	(10.0)%			23.0%			—		(33.0)	pp	5.3%		23.5%		—		(18.2)	pp
Adjusted Gross Profit1	$	240		$	229		$	11	5	%	$	464	$	466	$	(2)	—	%
Adjusted Gross Profit Margin1	34.3%			35.1%			—		(0.8)	pp	33.9%		35.6%		—		(1.7)	pp

Notations used in MD&A: n/m – not meaningful; pp – percentage points.

1.Adjusted Net Income, Gross Profit, Adjusted Gross Profit, Adjusted EBITDA, and Free Cash Flow are non-GAAP financial measures. Adjusted Basic Earnings per Share, Adjusted Diluted Earnings per Share, Adjusted EBITDA Margin, Gross Profit Margin and Adjusted Gross Profit Margin are non-GAAP ratios. These non-GAAP financial measures and ratios do not have a standardized meaning under IFRS Accounting Standards and are therefore unlikely to be comparable

to similar measures presented by other issuers. See section Non-GAAP Financial Measures and Non-GAAP Ratios for a reconciliation to the most directly comparable GAAP measure.

2.Adjusted Diluted Earnings per Share is calculated by dividing Adjusted Net Income by the weighted average number of diluted equity shares outstanding during the period. See section Non-GAAP Financial Measures and Non-GAAP Ratios for additional information.

Revenue

We earn revenue pursuant to contracts with our clients that generally take the form of a master services agreement (MSA), or other service contracts. MSAs, which are framework agreements with terms in our customer experience (CX) and trust, safety and security service contracts generally ranging from three to five years, with the vast majority having a term of three years, and for our digital solutions and AI & data solutions service lines, generally less than one year. These are supplemented by statements of work (SOWs) that identify the specific services to be provided and the related pricing for each service. There are a number of factors that impact the pricing of the services identified in each SOW or service contract, including, but not limited to, the nature and scope of services being provided, service levels and, under certain of our CX and trust, safety and security service MSAs, our ability to share, to a certain extent, our higher costs of services and foreign exchange risk arising from currency fluctuations. The majority of our revenue is earned based on a time and materials billing model. While we also generate revenue from fixed-fee contracts in our digital solutions service line, this represents a relatively small portion of our overall revenue mix, reflecting the limited scope and shorter-term nature of these arrangements.

Most of our contracts, other than with TELUS, do not commit our clients to a minimum annual spend or to specific volume of services. Although our CX and trust, safety and security client contracts generally provide for terms that range from three to five years, the arrangements may be terminated by our clients for convenience with limited notice and without payment of a penalty or termination fee. Additionally, our clients may also delay, postpone, cancel or reduce the volume of certain of the services we provide without canceling the whole contract. Many of our contracts contain provisions that would require us to pay penalties to our clients and/or provide our clients with the right to terminate the contract if we do not meet pre-agreed service level requirements.

From period to period, the fluctuation in our revenue is primarily a function of changes to existing SOWs, new SOWs with existing clients, MSAs signed with new clients, and the impact of foreign exchange on non-U.S. dollar-denominated contracts. While we provide a discussion and analysis of our results of operations below, we are unable to quantify the effects of changes in price or volume in relation to our revenue growth. We do not track standard measures of a per-unit rate or volume, since our measures of price and volume are extremely complex. Each of our customers is unique, with varying needs and requirements that span our diverse services offerings, which is reflected in a customized services contract and pricing model that does not fit into standard comparability measurements. Revenue for our services is a function of the nature of each specific service to be provided as specified by each client, the jurisdiction where the service is to be performed, the skills required and/or the outcome sought, estimated costs to perform, contract terms and other factors.

Comparison of Three Months Ended June 30, 2025 and 2024. Our revenue increased by $47 million, or 7%, to $699 million during the three months ended June 30, 2025, primarily due to growth in services provided to existing clients, including TELUS and certain social media clients, among others, and new clients added since the same period in the prior year, partially offset by lower revenues from certain technology and eCommerce clients. Revenue for the quarter reflected the non-recurring favorable impact of a certain contractual scope adjustment. Additionally, there was a favorable foreign currency impact of approximately 1%, attributed to the higher average EUR:USD exchange rate associated with the weakening U.S. dollar against the European euro during the current three-month period as compared to the same period in the prior year.

Comparison of Six months ended June 30, 2025 and 2024. Our revenue increased by $60 million, or 5%, to
$1,369 million during the six months ended June 30, 2025, primarily due to growth in services provided to existing clients, including TELUS and certain social media clients, among others, and new clients added since the same period in the prior year, partially offset by lower revenues from certain technology and eCommerce clients. Revenue for the period reflected the non-recurring favorable impact of a certain contractual scope adjustment. During the six months ended June 30, 2025, revenue growth was not materially impacted by changes in foreign currency rates. Revenue from our top 10 clients for the six months ended June 30, 2025 was 67%, compared to 65% in the prior year comparative period.

We deliver tailored solutions to a diverse set of clients active in various verticals from our delivery locations around the world. However, these services are marketed, sold and delivered to clients in an integrated manner in order to provide a unified, seamless sales and delivery experience. Our chief operating decision maker reviews financial information presented on a consolidated basis for the purposes of evaluating financial performance and making resource allocation decisions. Accordingly, we report our results and manage our business as a single operating and reporting segment.

We earn revenue pursuant to contracts with our clients, who operate in various industry verticals. The following table presents our earned revenue disaggregation for our five largest industry verticals:


	Three Months Ended June 30								Six Months Ended June 30
(millions except percentages)	2025		2024		$ change		% change		2025		2024		$ change		% change
Revenue by Industry Vertical
Tech and Games	$	304	$	275	$	29	11	%	$	586	$	553	$	33	6	%
Communications and Media	175		158		17		11	%	348		318		30		9	%
eCommerce and FinTech	56		65		(9)		(14)	%	114		133		(19)		(14)	%
Healthcare	51		47		4		9	%	101		96		5		5	%
Banking, Financial Services and Insurance	42		39		3		8	%	82		75		7		9	%
All others1	71		68		3		4	%	138		134		4		3	%
Total	$	699	$	652	$	47	7	%	$	1,369	$	1,309	$	60	5	%

1.Includes, among others, travel and hospitality, energy and utilities, retail, and consumer packaged goods industry verticals.

During the three-and six-months ended June 30, 2025, compared to the same period in the prior year, revenue generated from the Tech and Games industry vertical increased 11% due to higher revenues from certain social media clients and other technology clients, partially offset by lower revenue from other clients within this industry vertical, including Google. Revenue generated from the Communications and Media industry vertical grew 11% due to higher revenue from TELUS, partially offset by lower service revenue from certain other telecommunication clients. Revenue generated from the eCommerce and FinTech industry vertical decreased 14% due to decline in service volume. Increases in our Healthcare industry vertical were primarily due to additional services provided to the TELUS health segment and certain other healthcare clients. Banking, Financial Services and Insurance industry vertical increased 8% primarily due to growth from a variety of North American and global financial services clients. Increases in all other verticals were due to higher service volume across various client accounts. The reported revenue growth rates for the six-month periods ended June 30, 2025, were not materially impacted by foreign currency exchange rate movements compared to the same period in the prior year.

We serve our clients, who are primarily domiciled in North America and Europe, from multiple delivery locations across various geographic regions. In addition, our AI & data solutions clients are largely supported by crowdsourced contractors that are globally dispersed and not limited to the physical locations of our delivery centres. During the three-and six-months ended June 30, 2025, changes in our revenue earned in Europe, North America, Asia-Pacific and Central America and others was primarily due to fluctuations in service volume demand from our clients in each of these regions. The table below presents the revenue generated in each geographic region, based on the location of our delivery centres or where the services were provided from, for the periods presented.


	Three Months Ended June 30								Six Months Ended June 30
(millions except percentages)	2025		2024		$ change		% change		2025		2024		$ change		% change
Revenue by Geographic Region
Europe	$	212	$	187	$	25	13	%	$	415	$	383	$	32	8	%
North America	200		180		20		11	%	384		368		16		4	%
Asia-Pacific(1)	160		164		(4)		(2)	%	317		321		(4)		(1)	%
Central America and others(1)	127		121		6		5	%	253		237		16		7	%
Total	$	699	$	652	$	47	7	%	$	1,369	$	1,309	$	60	5	%

Salaries and benefits

The principal components of salaries and benefits expense include all compensation and benefits paid to our front-line and administrative employees, excluding share-based compensation, paid to our front-line and administrative employees.

Comparison of Three Months Ended June 30, 2025 and 2024. Salaries and benefits increased by $37 million, or 9%, to $463 million during the three months ended June 30, 2025, due to the higher average team member count resulting from the expansion in our service programs across our various regions, higher staffing levels in some geographies as well as higher team member training activity, investments in corporate initiatives including the expansion of our commercial sales team, and higher average salaries and wages. Salaries and benefits as a percentage of revenue increased to 66% in the current three-month period, compared to 65% in the comparative period. Total team member count was 78,569 at June 30, 2025, compared to 74,617 at June 30, 2024.

Comparison of Six months ended June 30, 2025 and 2024. Salaries and benefits increased by $65 million, or 8%, to $907 million during the six months ended June 30, 2025, primarily due to the same factors described above. Salaries and benefits as a percentage of revenue were 66% in the current six-month period, compared to 64% in the prior year comparative period.

Goods and services purchased

Goods and services purchased include items such as software licensing costs that are required to support our operations, contracted labor costs, sales and marketing expenses associated with promoting and selling our services, compliance expenses such as legal and audit fees and business taxes, other IT expenditures, bad debt expenses and facility expenses.

Comparison of Three Months Ended June 30, 2025 and 2024. Goods and services purchased increased by $19 million, or 16%, to $136 million during the three months ended June 30, 2025. The increase was due to growth in our AI & data solutions service line, which incurred higher contractor costs through our crowdsource-enabled workforce, and increases in external contractor costs in our digital solutions service line associated with higher service volume, investments in corporate initiatives, such as operational effectiveness programs, and investments to develop and launch new products and services.

Comparison of Six months ended June 30, 2025 and 2024. Goods and services purchased increased by $32 million, or 14%, to $265 million during the six months ended June 30, 2025, primarily due to the same factors described above.

Share-based compensation

Share-based compensation relates to equity-settled restricted share unit awards and share option awards granted to employees, as well as equity-settled performance-based share-based compensation awards granted in relation to our acquisitions.

Comparison of Three Months Ended June 30, 2025 and 2024. Share-based compensation decreased by $4 million to $6 million during the three months ended June 30, 2025, primarily due to timing of award grants and associated expense recognition, and decrease in expense associated with certain equity-settled earnouts for our business acquisitions in prior periods.

Comparison of Six months ended June 30, 2025 and 2024. Share-based compensation increased by $2 million to $13 million during the six months ended June 30, 2025 primarily due to the reversal of share-based compensation expense recognized on certain performance restricted share unit awards during the prior year’s comparative period arising from a downward revision of the estimated achievement of certain non-market performance conditions, partially offset by timing of award grants and associated expense recognition.

Acquisition, integration and other

Acquisition, integration and other is comprised primarily of costs related to our business acquisitions, including transaction costs and integration activities, which could vary from year to year depending on the volume, nature and complexity of the transactions completed in each fiscal year. We also, from time to time, incur costs associated with streamlining our operations, including ongoing and incremental efficiency initiatives, which may include personnel-related costs and rationalization of real

estate. Other costs may also include external costs that are unusual in their nature or significance, such as adverse litigation judgments or regulatory decisions, and other costs that do not contribute normally to the earning of revenues.

Comparison of Three Months Ended June 30, 2025 and 2024. Acquisition, integration and other increased by
$41 million to $50 million during the three months ended June 30, 2025, primarily attributable to restructuring costs associated with a workforce restructuring initiative at one of our delivery locations.

Comparison of Six months ended June 30, 2025 and 2024. Acquisition, integration and other increased by
$40 million to $56 million during the six months ended June 30, 2025, primarily due to restructuring costs associated with a workforce restructuring initiative at one of our delivery locations as described above.

Depreciation, amortization and impairment of goodwill

Depreciation and amortization includes depreciation of property, plant and equipment and right-of-use lease assets as well as amortization expense for software and intangible assets recognized primarily in connection with acquisitions. Impairment charges relate to goodwill and represent the excess of carrying amount of net assets over the recoverable amount of TELUS Digital.

Comparison of Three Months Ended June 30, 2025 and 2024. Depreciation and amortization increased by $231 million to $310 million during the three months ended June 30, 2025, primarily due to a non-cash impairment charge for goodwill of $224 million, as well as higher depreciation and amortization associated with our investments in capital assets over the past 12 months, which were partially offset by timing of fully depreciated or amortized capital assets. Refer to Note 11(b) - Intangible assets and goodwill in our condensed interim consolidated financial statements for the six months ended June 30, 2025 for additional details.

Comparison of Six months ended June 30, 2025 and 2024. Depreciation and amortization increased by
$233 million to $391 million during the six months ended June 30, 2025, primarily due to a non-cash impairment charge for goodwill of $224 million, as well as higher depreciation and amortization associated with our investments in capital assets over the past 12 months, which were partially offset by timing of fully depreciated or amortized capital assets as described above. Refer to Note 11(b) - Intangible assets and goodwill in our condensed interim consolidated financial statements for additional details.

Changes in business combination-related provisions

Changes in business combination-related provisions reflect gains or losses recognized on the revaluation of provisions arising from our acquisitions, which includes our provisions for written put options recognized in connection with our acquisition of WillowTree.

Comparison of Three Months Ended June 30, 2025 and 2024. Changes in business combination-related provisions were $NIL during the three months ended June 30, 2025, compared to $31 million in the comparative period, which arose due to a downward revision to our estimates of certain performance-based criteria associated with the WillowTree business, resulting in a reduction of our provisions for written put options.

Comparison of Six months ended June 30, 2025 and 2024. Changes in business combination-related provisions generated other income of $NIL during the six months ended June 30, 2025, compared to $60 million which was due in part to a downward revision to our estimates of certain performance-based criteria associated with the WillowTree business and certain other TELUS Digital products and services, and amendments to the written put options described above.

Interest expense

Interest expense includes interest expense on short-term and long-term borrowings and on our lease liabilities, and interest accretion on our provisions for written put options.

Comparison of Three Months Ended June 30, 2025 and 2024. Interest expense decreased by $2 million to $34 million during the three months ended June 30, 2025, due to lower interest expense on our credit facilities resulting from lower average interest rates and debt levels.

Comparison of Six months ended June 30, 2025 and 2024. Interest expense decreased by $7 million to $64 million during the six months ended June 30, 2025, due to lower interest expense on our credit facilities resulting from lower average interest rates and debt levels.

Foreign exchange

Foreign exchange is comprised of gains and losses recognized on certain derivatives, as well as foreign exchange gains and losses recognized on the revaluation and settlement of foreign currency transactions. See “Item 11—Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk” in our Annual Report for a discussion of our hedging programs.

Comparison of Three Months Ended June 30, 2025 and 2024. Foreign exchange loss was $7 million during the three months ended June 30, 2025, compared to a loss of $5 million in the comparative period, reflecting the impact of changes in foreign exchange rates in the currencies in which we transact.

Comparison of Six months ended June 30, 2025 and 2024. Foreign exchange was loss of $5 million during the six months ended June 30, 2025 compared to $NIL in the prior year comparative period, reflecting the impact of changes in foreign exchange rates in the currencies in which we transact.

Income tax expense


	Three Months Ended June 30						Six Months Ended June 30
(millions except percentages)	2025			2024			2025			2024
Income tax expense (recovery)	$	(35)		$	4		$	(35)		$	13
Weighted average statutory income tax rate	26.1		%	(256.2)		%	26.7		%	13.7		%
Effective tax rate	11.4		%	400.0		%	10.5		%	34.2		%

Comparison of Three Months Ended June 30, 2025 and 2024. Income tax expense decreased by $39 million for the three months ended June 30, 2025, resulting in income tax recovery of $35 million compared to an expense of $4 million in the comparative period. The effective tax rate, calculated as tax expense as a percentage of net income before taxes, decreased from 400.0% to 11.4%. The decrease in the effective tax rate was primarily due to a change in income (loss) before taxes and the impairment of goodwill.

Comparison of Six months ended June 30, 2025 and 2024. Income tax expense decreased by $48 million during the six months ended June 30, 2025, resulting in income tax recovery of $35 million compared to an expense of $13 million in the comparative period. The effective tax rate, calculated as tax expense as a percentage of income before taxes, decreased from 34.2% to 10.5%. The decrease in the effective tax rate was primarily due to a change in income (loss) before taxes and the impairment of goodwill.

Net (loss) income

Comparison of Three Months Ended June 30, 2025 and 2024. During the three months ended June 30, 2025, we generated a net loss of $272 million, compared to a net loss of $3 million in the comparative period. The increase in net loss was primarily due to a non-cash charge related to impairment of goodwill of $224 million, as well an increase in operating expenses outpacing revenue growth and other income recognized in the comparative period arising from changes in business combination-related provisions that did not reoccur in the current period, partially offset by lower income taxes and interest expense. Net loss margin, calculated by dividing net loss by revenue for the period, was 38.9% for the three months ended June 30, 2025, compared to 0.5% in the prior year comparative period.

Comparison of Six months ended June 30, 2025 and 2024. Net income decreased by $322 million to a loss of $297 million during the six months ended June 30, 2025, which was due to a non-cash charge related to impairment of goodwill of $224 million, as well an increase in operating expenses outpacing revenue growth, and other income recognized in the comparative period arising from changes in business combination-related provisions that did not reoccur in the current period, partially offset by lower income taxes and interest expense. Net loss margin was 21.7% for the six months ended June 30, 2025, compared to a net income margin of 1.9% in the prior year comparative period.

Non-GAAP Financial Measures and Non-GAAP Ratios

We regularly review the non-GAAP financial measures and non-GAAP ratios presented below to evaluate our operating performance and analyze underlying business results and trends. We use these non-GAAP financial measures and non-GAAP ratios to manage our business by establishing budgets and operational goals against these measures. We also use these non-GAAP financial measures to monitor compliance with debt covenants, which are based on the same or similar financial metrics, and manage our capital structure. We believe these non-GAAP financial measures and non-GAAP ratios provide investors with a consistent basis on which to evaluate our operating performance with our comparative period results, and additionally provide supplemental information to the financial measures and ratios that are calculated and presented in accordance with GAAP. A reconciliation for each non-GAAP financial measure to the nearest GAAP measure is provided below. These non-GAAP financial measures or non-GAAP ratios do not have any standardized meaning as prescribed by the IFRS Accounting Standards and therefore may not be comparable to GAAP measures or ratios and may not be comparable to similarly titled non-GAAP financial measures or non-GAAP ratios reported by other companies, including those within our industry and TELUS, our controlling shareholder. Consequently, our non-GAAP measures and ratios should not be evaluated in isolation, but rather, should be considered together with the most directly comparable GAAP measure or ratio and our consolidated financial statements for the periods presented. The non-GAAP financial measures and non-GAAP ratios we present in this discussion should not be considered a substitute for, or superior to, financial measures or ratios determined or calculated in accordance with GAAP.

Adjusted Net Income, Adjusted Basic Earnings per Share and Adjusted Diluted Earnings per Share.

Adjusted Net Income is a non-GAAP financial measure, and Adjusted Basic Earnings per Share and Adjusted Diluted Earnings per Share (EPS) are non-GAAP ratios. We regularly monitor Adjusted Net Income, Adjusted Basic EPS and Adjusted Diluted EPS as they provide a consistent measure for management and investors to evaluate our period-over-period operating performance, to better understand our ability to manage operating costs and to generate profits. The following items are excluded from Adjusted Net Income: acquisition, integration and other, amortization of purchased intangible assets and impairment of goodwill, interest accretion on written put options, foreign exchange gains or losses, and the related tax-effect of these adjustments. Adjusted Basic EPS is calculated by dividing Adjusted Net Income by the basic total weighted average number of equity shares outstanding during the period. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the weighted average number of diluted equity shares outstanding during the period. Adjusted Basic EPS and Adjusted Diluted EPS are non-GAAP ratios used by management to assess the profitability of our business operations on a per share basis.


	Three Months Ended June 30				Six Months Ended June 30
(millions, except per share amounts)	2025		2024		2025		2024
Net (loss) income	$	(272)	$	(3)	$	(297)	$	25
Add back (deduct):
Acquisition, integration and other1	50		9		56		16
Real estate rationalization-related impairments2	3		—		3		—
Amortization of purchased intangible assets and impairment of goodwill3	267		43		310		85
Interest accretion on written put options4	3		3		5		6
Foreign exchange loss5	7		5		5		—
Tax effect of the adjustments above	(42)		(11)		(49)		(21)
Adjusted Net Income	$	16	$	46	$	33	$	111
Adjusted Basic Earnings Per Share	$	0.06	$	0.17	$	0.12	$	0.41
Adjusted Diluted Earnings Per Share	$	0.06	$	0.16	$	0.12	$	0.38

1.Acquisition, integration and other is comprised primarily of business acquisition transaction costs, integration expenses associated with these acquisitions, costs associated with streamlining our operations, and other costs as applicable. These costs do not form part of the costs to operate our ongoing operations, and may significantly fluctuate period-over-period depending on the size and timing of related acquisitions, and are not indicative of such costs in the future.

2.Real estate rationalization-related impairments arise from our initiatives to reduce or exit real estate leases for certain delivery sites to better align with client service demand in regions that we operate in, which results in the recognition of accelerated depreciation on our right-of-use and property, plant and equipment assets associated with these locations. These costs are non-cash and do not form part of the costs to operate our ongoing operations.

3.Amortization of purchased intangible assets primarily relate to the amortization of acquired customer relationships, brand and crowdsource assets. Amortization of these intangible assets is excluded as it is a non-cash expense derived from purchase price allocations that incorporate significant and subjective valuation assumptions and estimates that are not comparable to the timing and investment had these assets been developed internally. We do not exclude the revenue generated by such purchased intangible assets from our revenues and, as a result, Adjusted Net Income includes revenue generated, in part, by such purchased intangible assets. Impairment charges on goodwill are non-cash and relate to the excess of the carrying amount of net assets of TELUS Digital over its recoverable amount. Refer to Note 11(b) - Intangible assets and goodwill in our condensed interim consolidated financial statements for the six months ended June 30, 2025 of our accompanying Financial Statements for additional detail.

4.Interest accretion on written put options arises from our acquisition of WillowTree, which is recorded at the present value of a future obligation, is non-cash in the period, and does not form part of the costs to conduct our ongoing operations.

5.Foreign exchange gains or losses arise from fluctuations in foreign exchange rates of the currencies we transact in, which are driven by macroeconomic conditions that are generally not reflective of our underlying business operations.

Comparison of Three Months Ended June 30, 2025 and 2024. Adjusted Net Income decreased $30 million, or 65%, during the three months ended June 30, 2025, primarily due to higher salaries and benefits, goods and services purchased, and other income recognized in the comparative period arising from changes in business combination-related provisions that did not reoccur in the current period, which were partially offset by higher revenues earned, including the non-recurring favorable impact of a certain contractual scope adjustment, as well as lower income tax and interest expense.

Comparison of Six months ended June 30, 2025 and 2024. Adjusted Net Income decreased $78 million, or 70%, during the six months ended June 30, 2025, primarily due to higher salaries and benefits, goods and services purchased, and other income recognized in the comparative period arising from changes in business combination-related provisions that did not reoccur in the current period, which were partially offset by higher revenues earned, including the non-recurring favorable impact of a certain contractual scope adjustment, as well as lower income tax and interest expense, as described as above.

Gross Profit, Adjusted Gross Profit, Gross Profit Margin, and Adjusted Gross Profit Margin.

Gross Profit and Adjusted Gross Profit are non-GAAP financial measures, and Gross Profit Margin and Adjusted Gross Profit Margin are non-GAAP ratios. We regularly monitor these financial measures to assess how efficiently we are servicing our clients and to monitor the growth in our direct costs in comparison to growth in revenue. We calculate Gross Profit by deducting operating expenses net of indirect and administrative expenses from revenue. Indirect and administrative expenses are comprised of indirect salaries and benefits and goods and services purchased associated with our administrative and corporate employees, share-based compensation, and acquisition, integration and other. We calculate Adjusted Gross Profit by excluding depreciation and amortization charges and goodwill impairment from Gross Profit, because the timing of the underlying capital expenditures and other investing activities do not correlate directly with the revenue earned in a given reporting period. We calculate Gross Profit Margin by taking Gross Profit divided by revenue, and we calculate Adjusted Gross Profit Margin by taking Adjusted Gross Profit divided by revenue.


	Three Months Ended June 30						Six Months Ended June 30
(millions, except percentages)	2025			2024			2025			2024
Revenue	$	699		$	652		$	1,369		$	1,309
Less: Operating expenses	(965)			(641)			(1,632)			(1,260)
Add back: Indirect and administrative expenses	196			139			336			259
Gross Profit	(70)			150			73			308
Add back: Depreciation and amortization and impairment of goodwill	310			79			391			158
Adjusted Gross Profit	$	240		$	229		$	464		$	466
Gross Profit Margin	(10.0)		%	23.0		%	5.3		%	23.5		%
Adjusted Gross Profit Margin	34.3		%	35.1		%	33.9		%	35.6		%

Comparison of Three Months Ended June 30, 2025 and 2024. During the three months ended June 30, 2025, Gross Profit Margin decreased to negative 10.0% compared to 23.0% and Adjusted Gross Profit Margin decreased to 34.3% compared to 35.1% in the comparative period. The decrease was primarily due to higher service delivery costs, including training costs for our team members due to elevated attrition levels and increased client task complexity, and higher average salaries and wages

associated with our team members. These were partially offset by the non-recurring favorable impact of a certain contractual scope adjustment, as well as cost efficiencies realized during the period.

Comparison of Six months ended June 30, 2025 and 2024. During the six months ended June 30, 2025, Gross Profit Margin decreased from 23.5% to 5.3%, and Adjusted Gross Profit Margin decreased from 35.6% to 33.9%. Gross Profit Margin and Adjusted Gross Profit Margin decreased primarily due to higher service delivery costs, including training costs for our team members due to elevated attrition levels and increased client task complexity, and higher average salaries and wages associated with our team members. These were partially offset by the non-recurring favorable impact of a certain contractual scope adjustment, as well as cost efficiencies realized during the period.

Adjusted EBITDA and Adjusted EBITDA Margin.

Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA Margin is a non-GAAP ratio. We regularly monitor Adjusted EBITDA and Adjusted EBITDA Margin to evaluate our operating performance compared to established budgets, operational goals and the performance of industry peers. Adjusted EBITDA is commonly used by our industry peers and provides a measure for investors to compare and evaluate our relative operating performance. We use it to assess our ability to service existing and new debt facilities, and to fund accretive growth opportunities and acquisition targets. In addition, certain financial debt covenants associated with our credit facility are based on Adjusted EBITDA, which requires us to monitor this non-GAAP financial measure in connection with our financial covenants. Certain items are adjusted for the same reasons described above in Adjusted Net Income. Adjusted EBITDA should not be considered an alternative to net income in measuring our financial performance, and it should not be used as a replacement measure of current and future operating cash flows. However, we believe a financial measure that presents net income adjusted for these items would enable an investor to better evaluate our underlying business trends, our operational performance and overall business strategy. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by consolidated revenue.


	Three Months Ended June 30						Six Months Ended June 30
(millions, except percentages)	2025			2024			2025			2024
Net (loss) income	$	(272)		$	(3)		$	(297)		$	25
Add back (deduct):
Acquisition, integration and other1	50			9			56			16
Depreciation and amortization and impairment of goodwill	310			79			391			158
Interest expense	34			36			64			71
Foreign exchange loss2	7			5			5			—
Income tax (recovery) expense	(35)			4			(35)			13
Adjusted EBITDA	$	94		$	130		$	184		$	283
Net (Loss) Income Margin	(38.9)		%	(0.5)		%	(21.7)		%	1.9		%
Adjusted EBITDA Margin	13.4		%	19.9		%	13.4		%	21.6		%

2.Foreign exchange gains or losses arise from fluctuations in foreign exchange rates of the currencies we transact in, which are driven by macroeconomic conditions that are generally not reflective of our underlying business operations.

Comparison of Three Months Ended June 30, 2025 and 2024. Adjusted EBITDA decreased by $36 million, or 28%, for the three months ended June 30, 2025, primarily due to the increases in salaries and benefits and goods and services purchased outpacing revenue growth, as well as other income generated in the prior year’s comparative period from changes in business combination-related provisions.

Comparison of Six months ended June 30, 2025 and 2024.Adjusted EBITDA decreased $99 million, or 35%, for the six months ended June 30, 2025, primarily due to the increases in salaries and benefits and goods and services purchased outpacing revenue growth, as well as other income generated in the prior year’s comparative period from changes in business combination-related provisions, as described above.

Free Cash Flow.

Free Cash Flow is a non-GAAP financial measure. We calculate Free Cash Flow by deducting capital expenditures from cash provided by operating activities, as we believe capital expenditures are a necessary ongoing cost to maintain our existing productive capital assets and support our organic business operations. We use Free Cash Flow to evaluate the cash flows generated from our ongoing business operations that can be used to meet our financial obligations, service debt facilities and lease liabilities, reinvest in our business, and to fund, in part, potential future acquisitions.


	Three Months Ended June 30				Six Months Ended June 30
(millions)	2025		2024		2025		2024
Cash provided by operating activities	$	63	$	124	$	132	$	250
Less: capital expenditures	(30)		(29)		(57)		(51)
Free Cash Flow	$	33	$	95	$	75	$	199

Comparison of Three Months Ended June 30, 2025 and 2024. During the three months ended June 30, 2025, Cash provided by operating activities decreased $61 million, or 49%, and Free Cash Flow decreased $62 million, or 65%. The decrease was primarily due to increases in operating expenses outpacing revenue growth and a negative non-cash impact in the quarter from foreign currency swaps due to stronger euro exchange against the U.S. dollar as well as higher capital expenditures.

Comparison of Six months ended June 30, 2025 and 2024. During the six months ended June 30, 2025, Cash provided by operating activities decreased $118 million, or 47%, and Free Cash Flow decreased $124 million, or 62%. The decrease was primarily due to increases in operating expenses outpacing revenue growth and a negative non-cash impact from foreign currency swaps due to stronger euro exchange against the U.S. dollar as well as higher capital expenditures.

Summary of Consolidated Quarterly Results and Trends

The following table sets forth our unaudited quarterly statements of operations data for each of the last eight quarters ended June 30, 2025. The information for each of these quarters has been prepared on the same basis as the audited annual financial statements included in our Annual Report and, in the opinion of management, includes all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the results of operations for these periods. This data should be read in conjunction with our audited consolidated financial statements and related notes thereto included in our Annual Report. These quarterly results of operations are not necessarily indicative of our future results of operations that may be expected for any future period.


(millions, except per share amounts)	2025 Q2		2025 Q1		2024 Q4		2024 Q3		2024 Q2		2024 Q1		2023 Q4		2023 Q3
REVENUE	$	699	$	670	$	691	$	658	$	652	$	657	$	692	$	663

OPERATING EXPENSES
Salaries and benefits	463		444		436		423		426		416		406		403
Goods and services purchased	136		129		145		126		117		116		122		116
Share-based compensation	6		7		7		14		10		1		—		5
Acquisition, integration and other	50		6		13		16		9		7		7		11
Depreciation	39		35		40		35		35		34		39		36
Amortization of intangible assets and impairment of goodwill	271		46		45		46		44		45		45		44
	965		667		686		660		641		619		619		615
OPERATING INCOME (LOSS)	(266)		3		5		(2)		11		38		73		48
OTHER EXPENSES (INCOME)
Changes in business combination-related provisions	—		—		—		—		(31)		(29)		(20)		—
Interest expense	34		30		32		35		36		35		37		38
Foreign exchange (gain) loss	7		(2)		(5)		1		5		(5)		4		(2)
(LOSS) INCOME BEFORE INCOME TAXES	(307)		(25)		(22)		(38)		1		37		52		12
Income tax expense (recovery)	(35)		—		32		(6)		4		9		14		3
NET (LOSS) INCOME	$	(272)	$	(25)	$	(54)	$	(32)	$	(3)	$	28	$	38	$	9
Basic (loss) earnings per share	$	(0.98)	$	(0.09)	$	(0.20)	$	(0.12)	$	(0.01)	$	0.10	$	0.14	$	0.03
Diluted (loss) earnings per share	$	(0.98)	$	(0.09)	$	(0.20)	$	(0.12)	$	(0.08)	$	0.05	$	0.10	$	0.03

The historical trend over the past eight quarters in consolidated revenue reflects changes in service volume demand from our existing clients and services provided to new clients. During 2024 and the first six months of 2025, we observed a stabilization in service volume demand after experiencing a notable reduction which became more pronounced beginning in the second quarter of 2023, arising from some of our larger technology clients that was more significant than expected, particularly in Europe. At the same time, several of our key clients also began to reduce their costs, which resulted in delays and near-term reductions in spending commitments.

Salaries and benefits expense increased due to the expansion of our team member base to service stabilizing volumes and increased client complexity from both our existing and new clients, including those arising from our acquisition of WillowTree, higher average salaries and wages over time, and higher training costs due to elevated attrition and absenteeism. Beginning in the second quarter of 2023, these increases were partly offset by employee-related cost efficiency initiatives resulting in decreases in our team member count in response to the reduction in service volume demand from some of our clients, and a favorable mix of labor sourced from lower-cost jurisdictions.

Goods and services purchased reflect changes in external labor requirements to support the growth in our digital solutions service line, changes in our crowdsourced enabled workforce to support our AI & data solutions service line, increases in our software licensing costs associated with our growing team member base and increases in administrative expenses and facility costs to support overall business growth and acquisitions.

Share-based compensation fluctuates quarter-over-quarter, which generally reflects the timing of expense on awards granted in relation to our annual long-term incentive plan, which include performance-based share-based compensation awards

that are impacted by changes in our estimates of the achievement of operating performance targets, and awards granted in relation to our acquisitions, which are impacted by changes in our estimates of acquired businesses’ performance targets.

Acquisition, integration and other costs fluctuates quarter-over-quarter, and are dependent on the size of business acquisitions and the timing of associated transaction and integration costs, as well as costs associated with streamlining our operations, including ongoing and incremental cost efficiency efforts, which may include personnel-related costs.

Apart from a non-cash charge related to impairment of goodwill of $224 million in the second quarter of the year, depreciation and amortization have generally been steady as growth in capital assets to support the expansion of our delivery sites required to service customer demand have been offset by the timing of full depreciation or amortization of existing capital assets.

The trend in net (loss) income reflects the items noted above, as well as the relative mix of income and expenses among the geographic areas and the associated tax rates for the countries that we operate in. Net (loss) income is also impacted by interest expense incurred on our long-term debt, changes in business combination-related provisions arising from the revaluation of our written put options, and foreign exchange gains or losses. Historically, the trend in basic (loss) earnings per share and diluted (loss) earnings per share have been impacted by the same trends as net (loss) income.

Related Party Transactions

Recurring Transactions with TELUS

In 2021, we entered into an amended and restated TELUS MSA, which provides for a ten-year master services agreement and we also entered into a ten-year transition and shared services agreement with TELUS. Revenues earned pursuant to the TELUS MSA are recorded as revenue and fees incurred in connection with the shared services agreement for certain shared services provided to us are recorded as goods and services purchased.

The following table summarizes the transactions with TELUS and its subsidiaries:


	Three Months Ended June 30				Six Months Ended June 30
(millions)	2025		2024		2025		2024
Revenue	$	179	$	159	$	357	$	319
Goods and services purchased	(6)		(4)		(13)		(9)
Total	$	173	$	155	$	344	$	310
Amounts Received from TELUS	$	192	$	147	$	362	$	321
Amounts Paid to TELUS	$	8	$	5	$	12	$	12

Amounts receivable from TELUS were $28 million and $74 million as at June 30, 2025, and June 30, 2024, respectively, and amounts payable to TELUS were $314 million and $198 million as at June 30, 2025, and June 30, 2024, respectively. We also participate in defined benefit pension plans that share risks between TELUS and its subsidiaries.

Non-binding proposal from TELUS

On June 11, 2025, we received a non-binding proposal from TELUS to acquire 100% of the outstanding multiple voting shares and subordinate voting shares of TELUS Digital that it does not already own. Our Board of Directors has formed a special committee of independent directors to review, evaluate and consider the TELUS proposal and any relevant alternatives. The special committee has retained independent advisors and is progressing its consideration of the proposal. TELUS Digital cautions the Company’s shareholders and others considering trading in TELUS Digital’s securities that no decisions have been made with respect to the proposal. There can be no assurance that any binding offer will be completed, that any definitive agreement will be executed relating to the transaction contemplated by the proposal, or that the transaction contemplated by the proposal or any other similar transaction will be approved or consummated.

Liquidity and Capital Resources

Capital resources

As at June 30, 2025, we had $696 million (December 31, 2024 - $785 million) of available liquidity, comprised of cash and cash equivalents of $151 million (December 31, 2024 - $174 million), and available borrowings under our revolving credit facility of $545 million (December 31, 2024 - $611 million) (see Note 13(b)—Long-term debt—Credit facility in our condensed interim consolidated financial statements for the six months ended June 30, 2025 for additional details). Our objective when managing capital is to maintain a flexible capital structure that optimizes the cost and availability of capital at acceptable risk levels.

In the management of capital and in its definition, we include owners’ equity (excluding accumulated other comprehensive income), long-term debt (including long-term credit facilities and any hedging assets or liabilities associated with long-term debt items, net of amounts recognized in accumulated other comprehensive income) and cash and cash equivalents. We manage capital by monitoring the financial covenants prescribed in our credit facility. For additional information, see Note 13(b)—Long-term debt—Credit facility in our condensed interim consolidated financial statements for the six months ended June 30, 2025 for additional details.

We manage our capital structure and make adjustments to it in light of changes in economic conditions and the risk characteristics of our business. In order to maintain or adjust our capital structure, we may issue new shares, issue new debt with different terms or characteristics which may be used to replace existing debt, or pay down our debt balance with cash flows from operations. We believe that our financial objectives are supportive of our long-term strategy.

We monitor capital utilizing the financial covenants prescribed in our credit facility agreements. As at June 30, 2025, we were in compliance with all of our covenants including maintaining a net debt to EBITDA ratio as calculated in accordance with the credit facility of less than 3.75:1.00. For additional information, see Note 13(b)—Long-term debt—Credit facility in our condensed interim consolidated financial statements for the three months ended June 30, 2025.

The following table presents a summary of our cash flows and ending cash balances for the three-and six-month periods ended June 30, 2025 and 2024:


	Three Months Ended June 30				Six Months Ended June 30
(millions)	2025		2024		2025		2024
Cash provided by operating activities	$	63	$	124	$	132	$	250
Cash used in investing activities	(31)		(28)		(58)		(53)
Cash used in financing activities	(26)		(97)		(107)		(171)
Effect of exchange rate changes on cash	8		(1)		10		(1)
(Decrease) increase in cash position during the period	14		(2)		$	(23)	$	25
Cash and cash equivalents, beginning of period	137		154		$	174	$	127
Cash and cash equivalents, end of period	$	151	$	152	$	151	$	152

Operating activities

Comparison of Three Months Ended June 30, 2025 and 2024. During the three-month period ended June 30, 2025, we generated cash from operating activities of $63 million, a decrease of $61 million from the comparative period, primarily due to increases in operating expenses outpacing revenue growth and and a negative impact in the quarter from foreign currency swaps due to stronger euro exchange against the U.S. dollar, partially offset by an increase in net change in non-cash operating working capital.

Comparison of Six Months Ended June 30, 2025 and 2024. During the six-month period ended June 30, 2025, we generated cash from operating activities of $132 million, a decrease of $118 million from the comparative period, primarily due to increases in operating expenses outpacing revenue growth and a negative impact in the quarter from foreign currency swaps due to stronger euro exchange against the U.S. dollar, partially offset by an increase in net change in non-cash operating working capital.

Investing activities

Comparison of Three Months Ended June 30, 2025 and 2024. During the three-month period ended June 30, 2025, we used $31 million cash in investing activities, an increase of $3 million compared to $28 million in the comparative period, which was primarily due to higher investments in capital assets.

Comparison of Six Months Ended June 30, 2025 and 2024. During the six-month period ended June 30, 2025, we used $58 million cash in investing activities, a increase of $5 million from the comparative period, which was primarily due to higher investments in capital assets.

Financing activities

Comparison of Three Months Ended June 30, 2025 and 2024. During the three-month period ended June 30, 2025, we used $26 million of cash in financing activities, a decrease of $71 million compared to $97 million in the comparative period, primarily due to lower net repayments on our credit facility and by lower cash interest paid.

Comparison of Six Months Ended June 30, 2025 and 2024. During the six-month period ended June 30, 2025, we used $107 million of cash in financing activities, an decrease of $64 million compared to $171 million in the comparative period, primarily due to lower net repayments on our credit facility and lower cash interest paid.

Future Capital Requirements

We believe that our existing cash and cash equivalents combined with our expected cash flow from operations and liquidity available under our credit facilities will be sufficient to meet our projected operating and capital expenditure requirements for at least the next 12 months and we possess the financial flexibility to execute our strategic objectives, including the ability to make acquisitions and strategic investments in the foreseeable future. Our ability to generate cash, however, is subject to our performance, general economic conditions, industry trends and other factors. To the extent that existing cash and cash equivalents and operating cash flow are insufficient to fund our future activities and requirements, we may need to raise additional funds through equity or debt financing. If we raise funds through the issuance of additional debt, we may be subject to additional contractual restrictions on our business. There is no assurance that we would be able to raise additional funds on favorable terms or at all. See “Item 3D—Risk Factors—Risks Related to Our Business”. We may need to raise additional funds to pursue our growth strategy or continue our operations, and we may be unable to raise capital when needed or on acceptable terms, which could lead us to be unable to expand our business.

Net Debt and Adjusted EBITDA, both as per our credit agreement, are non-GAAP financial measures used to calculate our leverage ratio debt covenant (Net Debt to Adjusted EBITDA Leverage Ratio, a non-GAAP ratio), as presented below. We seek to maintain a Net Debt to Adjusted EBITDA Leverage Ratio in the range of 2-3x. As of June 30, 2025, our Net Debt to Adjusted EBITDA Leverage Ratio was 3.75x. We may deviate from our target Net Debt to Adjusted EBITDA Leverage Ratio to pursue acquisitions and other strategic opportunities that may require us to borrow additional funds and, additionally, our ability to maintain this targeted ratio depends on our ability to continue to grow our business, general economic conditions, industry trends and other factors. As of June 30, 2025, the Company is in compliance with its Net Debt to Adjusted EBITDA financial covenant per its credit facility. Should our Net Debt to Adjusted EBITDA exceed the current covenant in future quarters, we may undertake a combination of measures including requesting shareholder loan support from the Parent company with terms that are compliant with the Credit Agreement or to seek a Credit Facility amendment.

The following table presents a calculation of our Net Debt to Adjusted EBITDA Leverage Ratio as at June 30, 2025 and December 31, 2024:


As at (millions except for ratio)	June 30, 2025		December 31, 2024
Outstanding credit facility	$	1,280	$	1,284
Contingent facility utilization	7		7
Contingent liability related to M&A (cash component)	5		—
Net derivative liabilities	29		2
Cash balance1	(150)		(150)
Net Debt as per credit agreement	$	1,171	$	1,143
Adjusted EBITDA (trailing 12 months)2	$	382	$	481
Adjustments required as per credit agreement	$	(70)	$	(124)
Net Debt to Adjusted EBITDA Leverage Ratio as per credit agreement	3.75		3.20

1.Maximum cash balance permitted as a reduction to net debt, as per the credit agreement, is $150 million.

2.Adjusted EBITDA is a non-GAAP financial measure, see section “—Non-GAAP Financial Measures and Non-GAAP Ratios” for more information.

Capital Expenditures


	Three Months Ended June 30				Six Months Ended June 30
(millions)	2025		2024		2025		2024
Capital expenditures	$	30	$	29	$	57	$	51

Comparison of Three Months Ended June 30, 2025 and 2024. Capital expenditures increased by $1 million to $30 million during the three months ended June 30, 2025. The increase was primarily driven by increased investments in site builds in Asia Pacific and Europe, as well as increased investments in our digital solutions service line.

Comparison of Six months ended June 30, 2025 and 2024. Capital expenditures increased by $6 million to $57 million during the six months ended June 30, 2025. The increase was primarily driven by increased investments in site builds in Asia Pacific and Europe, as well as increased investments in our digital solutions service line.

Contractual Obligations

Our principal sources of liquidity are cash generated from operations, our available credit facility, and to a lesser extent, our cash and cash equivalents. For the six months ended June 30, 2025, our cash provided by operations was $132 million. As of June 30, 2025, available borrowings under the revolving credit facility of our amended credit facility were $545 million, and our cash and cash equivalents balance was $151 million.

Our primary uses of liquidity are cash used in our normal business operations such as employee compensation expense, goods and services purchased, and working capital requirements. In addition, we are required to meet the payment obligations under our credit facility and lease agreements. We expect that our cash flow from operations and our available cash and cash equivalents (including the revolving component of our credit facility) will be sufficient to meet our ongoing cash flow needs and operating requirements. The expected maturities of our undiscounted financial liabilities, excluding long-term-debt, do not differ significantly from the contractual maturities, other than as noted below. The contractual maturities of our undiscounted financial liabilities, as at June 30, 2025 including interest thereon (where applicable), are as set out in the following table:


	Non-derivative								Derivative
					Composite long-term debt				Currency swap agreement amounts to be exchanged
For each fiscal year ending December 31, (millions)	Non- interest bearing financial liabilities		Due to affiliated companies		Long-term debt, excluding leases		Leases		(Receive)		Pay		Interest rate swap agreement		Total
2025 (remainder of year)	$	396	$	314	$	73	$	47	$	(121)	$	116	$	—	$	825
2026	82		—		143		84		(73)		69		—		305
2027	15		—		139		70		(38)		34		(1)		219
2028	5		—		1,149		58		(342)		370		—		1,240
2029	—		—		—		51		—		—		—		51
Thereafter	—		—		—		97		—		—		—		97
Total	$	498	$	314	$	1,504	$	407	$	(574)	$	589	$	(1)	$	2,737

Off-Balance Sheet Arrangements

We do not have any material obligations under guarantee contracts or other contractual arrangements other than as disclosed in Note 15—Contingent liabilities in the notes to our condensed interim consolidated financial statements for the six months ended June 30, 2025, and Note 18—Contingent liabilities in the notes to our audited consolidated financial statements for the year ended December 31, 2024 included in our Annual Report. We have not entered into any transactions with unconsolidated entities where we have financial guarantees, subordinated retained interests, derivative instruments, or other contingent arrangements that expose us to material continuing risks, contingent liabilities, or any other obligation under a variable interest in an unconsolidated entity that provides financing, liquidity, market risk, or credit risk support to us, or engages in leasing, hedging, or research and development services with us.

Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Risk

Amounts drawn on our long-term debt facilities expose us to changes in interest rates. Holding other variables constant, including the total amount of outstanding indebtedness, a 25-basis-point change in interest rates on our variable-rate debt would cause an estimated impact in net income (loss) of approximately $3 million per year, based on the amounts outstanding as at June 30, 2025.

Foreign Currency Risk

Our condensed interim consolidated financial statements are reported in U.S. dollars but our international operating model exposes us to foreign currency exchange rate changes that could impact the translation of foreign denominated assets and liabilities into U.S. dollars and future earnings and cash flows from transactions denominated in different currencies. The European euro is the foreign currency to which we currently have the largest exposure. The sensitivity analysis of our exposure to foreign currency risk at the reporting date has been determined based upon a hypothetical change taking place at the relevant statement of financial position date. The European euro, Canadian dollar and Philippine peso denominated balances as at the statement of financial position dates have been used in the calculations below.


	Net income (loss)				Other comprehensive income (loss)				Comprehensive income
Six months ended June 30,	2025		2024		2025		2024		2025		2024
Reasonably possible changes in market risks
10% change in US$: CDN$ exchange rate
US$ appreciates	$	31	$	15	$	—	$	—	$	31	$	15
US$ depreciates	$	(31)	$	(20)	$	—	$	—	$	(31)	$	(20)
10% change in US$: Euro exchange rate
US$ appreciates	$	10	$	8	$	(48)	$	(60)	$	(38)	$	(52)
US$ depreciates	$	(10)	$	(8)	$	54	$	55	$	44	$	47
10% change in US$: Philippine Peso exchange rate
US$ appreciates	$	(4)	$	(3)	$	—	$	—	$	(4)	$	(3)
US$ depreciates	$	4	$	3	$	—	$	—	$	4	$	3

We therefore face exchange rate risk through fluctuations in relative currency prices, which are unpredictable and costly to hedge. Appreciation of foreign currencies against the United States dollar will increase our cost of doing business and could adversely affect our business, financial condition or financial performance. Our foreign exchange risk management includes the use of swaps to manage the currency risk associated with European euro denominated inflows being used to service the United States dollar denominated debt, as well as foreign currency forward contracts to fix the exchange rates on short-term Philippine peso denominated transactions and commitments.

Changes in Internal Control over Financial Reporting

During the three-and six-months ended June 30, 2025, there were no changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This discussion contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business, result of operations and financial condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “aim”, “anticipate”, “assume”, “believe”, “contemplate”, “continue”, “could”, “due”, “estimate”, “expect”, “goal”, “intend”, “may”, “objective”, “plan”, “predict”, “potential”, “positioned”, “seek”, “should”, “target”, “will”, “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements are based on our current expectations, estimates, forecasts and projections about our business and the industry in which we operate and management's beliefs and assumptions, including the non-occurrence of the risks and uncertainties that are described in the filings made with the SEC and the applicable Canadian securities regulators or other events occurring outside of our normal course of business, and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements may turn out to be inaccurate. Factors that may cause actual results to differ materially from current expectations include, among other things, those factors listed under “Risk Factors” in our Annual Report for the year ended December 31, 2024, filed with the SEC on EDGAR and with the Canadian securities regulators on SEDAR+.

Document

Exhibit 99.3

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

TELUS International (Cda) Inc.

I, Jason Macdonnell, Acting Chief Executive Officer of TELUS International (Cda) Inc., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of TELUS International (Cda) Inc. (the "issuer") for the interim period ended June 30, 2025.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

5.2N/A

5.3N/A

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on April 1, 2025 and ended on June 30, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.


Date: August 1, 2025.

/s/ Jason Macdonnell
Jason Macdonnell
President and Acting Chief Executive Officer

Document

Exhibit 99.4

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

TELUS International (Cda) Inc.

I, Gopi Chande, Chief Financial Officer of TELUS International (Cda) Inc., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of TELUS International (Cda) Inc. (the "issuer") for the interim period ended June 30, 2025.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

5.2N/A

5.3N/A


Date: August 1, 2025.

/s/ Gopi Chande
Gopi Chande
Chief Financial Officer