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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 monthsSix months
Periods ended June 30 (millions except earnings per share)Note2025202420252024
REVENUE3$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 compensation46 10 13 11 
Acquisition, integration and other50 9 56 16 
Depreciation1039 35 74 69 
Amortization of intangible assets and impairment of goodwill
11271 44 317 89 
  965 641 1,632 1,260 
    
OPERATING (LOSS) INCOME (266)11 (263)49 
  
OTHER EXPENSES (INCOME)
 
Changes in business combination-related provisions12— (31)— (60)
Interest expense 534 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) 
Basic7278 275 277 274 
Diluted7278 294 277 291 
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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TELUS International (Cda) Inc.
Condensed Interim Consolidated Statements of Financial Position
(unaudited)
As at (millions)NoteJune 30, 2025December 31, 2024
ASSETS   
Current assets   
Cash and cash equivalents $151 $174 
Accounts receivable8491 454 
Due from affiliated companies16(a)28 16 
Income and other taxes receivable18 8 
Prepaid and other assets 65 42 
Current portion of derivative assets98 13 
  761 707 
Non-current assets   
Property, plant and equipment, net10507 456 
Intangible assets, net111,344 1,379 
Goodwill111,789 1,926 
Derivative assets9— 15 
Deferred income taxes 12 12 
Other long-term assets17(b)26 26 
  3,678 3,814 
Total assets $4,439 $4,521 
    
LIABILITIES AND OWNERS’ EQUITY   
Current liabilities   
Accounts payable and accrued liabilities17(b)$356 $321 
Due to affiliated companies16(a)314 231 
Income and other taxes payable 61 68 
Current portion of provisions1249 7 
Current maturities of long-term debt13126 116 
Current portion of derivative liabilities91 2 
  907 745 
Non-current liabilities   
Provisions12114 139 
Long-term debt131,434 1,409 
Derivative liabilities938 — 
Deferred income taxes 220 256 
Other long-term liabilities 32 27 
  1,838 1,831 
Total liabilities 2,745 2,576 
    
Owners’ equity1,694 1,945 
Total liabilities and owners’ equity $4,439 $4,521 
  
Contingent liabilities15
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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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, 2024275 $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 compensation2 16 (4)— — 12 
Balance as at June 30, 2025278 $1,672 $65 $(11)$(32)$1,694 
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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TELUS International (Cda) Inc.
Condensed Interim Consolidated Statements of Cash Flows
(unaudited)
  Three monthsSix months
Periods ended June 30 (millions)Note2025202420252024
OPERATING ACTIVITIES   
Net (loss) income
 $(272)$(3)$(297)$25 
Adjustments: 
Depreciation, amortization and impairment of goodwill
310 79 391 158 
Interest expense34 36 64 71 
Income tax (recovery) expense
(35)4 (35)13 
Share-based compensation6 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 capital17(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 assets17(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 issued1 1 2 2 
Withholding taxes paid related to net share settlement of equity awards4(a)(1)(1)(3)(3)
Long-term debt issued
17(d)
237 45 387 90 
Repayment of long-term debt17(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.
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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 statementsPage
General application
1.Condensed interim consolidated financial statements
2.Capital structure financial policies
3.Revenue
4.Share-based compensation
5.Interest expense
6.Income taxes
7.
Earnings (loss) per share
8.Accounts receivable
9.Financial instruments
10.Property, plant and equipment
11.Intangible assets and goodwill
12.Provisions
13.Long-term debt
14.Share capital
15.Contingent liabilities
16.Related party transactions
17.Additional financial information

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.

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(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. 
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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 monthsSix months
Periods ended June 30 (millions)2025202420252024
Tech and Games$304 $275 $586 $553 
Communications and Media175 158 348 318 
eCommerce and FinTech56 65 114 133 
Healthcare51 47 101 96 
Banking, Financial Services and Insurance42 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 monthsSix months
Periods ended June 30 (millions)2025202420252024
Europe$212 $187 $415 $383 
North America200 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.
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The following table presents a summary of the activity related to our restricted share unit plan:
Three monthsSix months
Number of unitsWeighted average grant-date fair valueNumber of unitsWeighted average grant-date fair value
Periods ended June 30, 2025Non-vestedVestedNon-vestedVested
Outstanding, beginning of period25,277,511 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, 202521,753,580 — $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 monthsSix 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, 2025Non-vestedVestedNon-vestedVested
Outstanding, beginning of period2,899,794 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 monthsSix months
Periods ended June 30 (millions)2025202420252024
Interest on long-term debt, excluding lease liabilities$21 $26 $41 $50 
Interest on lease liabilities9 8 16 15 
Amortization of financing fees and other1 — 2 1 
Interest accretion on provisions3 2 5 5 
 $34 $36 $64 $71 
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6. Income taxes
Three monthsSix months
Periods ended June 30 (millions)2025202420252024
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)$13 
Our income tax expense (recovery) and effective income tax rate differ from that calculated by applying the applicable statutory
rates for the following reasons:
 Three monthsSix months
Periods ended June 30 (millions except percentages)2025202420252024
Income taxes computed at applicable statutory income tax rates$(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 goodwill40 — 40 — 
Losses not recognized13 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 monthsSix months
Periods ended June 30 (millions except earnings per share)2025202420252024
Net (loss) income for the period
$(272)$(3)$(297)$25 
Weighted average number of equity shares outstanding278 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
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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 monthsSix months
Periods ended June 30 (millions except earnings per share)2025202420252024
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 outstanding278 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 outstanding278 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, 2025December 31, 2024
Accounts receivable – billed$228 $194 
Accounts receivable – unbilled229 240 
Other receivables43 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, 2025December 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 date56 52 
61-90 days past billing date23 8 
More than 90 days past billing date9 3 
 219 186 
Accounts receivable – unbilled229 240 
Other receivables43 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
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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 monthsSix months
Periods ended June 30 (millions)2025202420252024
Balance, beginning of period$8 $5 $8 $2 
Additions1 — 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, 2025December 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:0.922025$30 $— 
USD:1.00 EUR:0.92
Currency risks arising from Philippine peso denominated purchases
HFT2
2026$66 $2 USD:1.00 PHP:57.892025$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:55.992025$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.
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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 assetsRight-of-use
lease assets
(millions)Network assetsBuildings and
leasehold
improvements		Computer equipment, furniture, and otherAssets
under
construction		TotalBuildingsTotal
At cost       
As at January 1, 2025$55 $170 $312 $37 $574 $479 $1,053 
Additions3 4 13 26 46 61 107 
Dispositions, retirements and other— (1)(4)— (5)(6)(11)
Transfers1 3 11 (15)— — — 
Foreign exchange1 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 
Depreciation4 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		SoftwareBrand and
other		Total
intangible
assets		GoodwillTotal
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 exchange70 — 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 exchange35 — 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.
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(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 
Additions49 — 22 71 
Use(46)— (8)(54)
Reversals— (3)— (3)
Interest effect and other— 3 — 3 
As at June 30, 2025$9 $134 $20 $163 
Current6 42 1 49 
Non-current3 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.
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13. Long-term debt
(a)    Details of long-term debt
As at (millions)June 30, 2025December 31, 2024
Credit facility$1,280 $1,284 
Deferred debt transaction costs(9)(8)
 1,271 1,276 
Lease liabilities289 249 
Long-term debt$1,560 $1,525 
Current126 116 
Non-current1,434 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, 2025December 31, 2024
As at (millions)Revolving component
Term loan component1 
TotalRevolving componentTerm loan componentTotal
Available$545 $— $545 $611 $— $611 
Outstanding
Due to TELUS
18 73 91 14 78 92 
Due to Other237 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
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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.

(c)    Long-term debt maturities
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 inU.S. dollarsEuropean
euros		Other
currencies		 
For each fiscal year ending December 31 (millions)Long-term
debt, excluding
leases		LeasesTotalLeasesLeasesTotal
2025 (remainder of year)$30 $10 $40 $8 $12 $60 
202660 18 78 11 26 115 
202760 17 77 8 21 106 
20281,130 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 repayments1,280 114 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:
AuthorizedIssued
As at (millions)June 30, 2025December 31, 2024June 30, 2025December 31, 2024
Preferred Sharesunlimitedunlimited— — 
Equity Shares
Multiple Voting Sharesunlimitedunlimited164 164 
Subordinate Voting Sharesunlimitedunlimited114 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
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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 - $NIL).
(b)Claims and lawsuits
We are party to various legal proceedings and claims that arise in the ordinary course of business. The ultimate outcome of these matters is inherently uncertain. Therefore, if one or more of these matters were resolved against us for amounts in excess of management's estimates of loss, or if any outcome becomes more likely than not and estimable, our results of operations and financial condition could be adversely affected.
16. Related party transactions
(a)Transactions with TELUS
TELUS produces consolidated financial statements available for public use and is the ultimate parent and controlling party of TELUS Digital.
Recurring transactions
TELUS and its subsidiaries receive customer care, integrated business process outsourcing, information technology outsourcing, and digital product development services from us, and provide services (including people, network, finance, communications, and regulatory) to us. We also participate in defined benefit pension plans that share risks between TELUS and its subsidiaries.
20252024
Three months ended June 30 (millions)
TELUS
(parent)
Subsidiaries
of TELUS
Total
TELUS
(parent)
Subsidiaries of
 TELUS
Total
Transactions with TELUS and subsidiaries
Revenues from services provided to$— $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 $(124)
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20252024
Six months ended June 30 (millions)
TELUS
(parent)
Subsidiaries
of TELUS
Total
TELUS
(parent)
Subsidiaries of
 TELUS
Total
Transactions with TELUS and subsidiaries
Revenues from services provided to$— $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.

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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, 2025December 31, 2024
Other long-term assets  
Lease deposits
$16 $15 
Prepaid software and maintenance costs
6 6 
Other4 5 
 $26 $26 
Accounts payable and accrued liabilities  
Trade accounts payable$21 $36 
Accrued liabilities106 102 
Payroll and other employee-related liabilities175 159 
Advance billings
20 12 
Other34 12 
 $356 $321 
(c)Statements of cash flows—operating activities and investing activities
 Three monthsSix months
Periods ended June 30 (millions)2025202420252024
Net change in non-cash operating working capital  
Accounts receivable$23 $11 $38 $29 
Due to and from affiliated companies, net56 (8)70 8 
Prepaid expenses(8)5 (22)(16)
Other long-term assets— (1)— (1)
Accounts payable and accrued liabilities2 27 (16)23 
Income and other taxes receivable and payable, net(1)4 (2)4 
Provisions5 3 1 2 
Other long-term liabilities4 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 assets2 (1)3 (4)
 $(30)$(29)$(57)$(51)
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(d)Changes in liabilities arising from financing activities
Statements of cash flowsNon-cash changes
Three-month period ended June 30, 2025
(millions)
Beginning
of Period		Issued or receivedRedemptions,
repayments or payments		Foreign
exchange movement		OtherEnd of
period
Long-term debt      
Credit facility$1,245 $237 $(217)$— $15 $1,280 
Lease liabilities254 — (24)5 54 289 
Deferred debt transaction costs(9)— — — — (9)
 $1,490 $237 $(241)$5 $69 $1,560 
Statements of cash flowsNon-cash changes
Three-month period ended June 30, 2024
(millions)
Beginning
of Period		Issued or receivedRedemptions,
repayments or payments		Foreign
exchange movement		OtherEnd of
period
Long-term debt
Credit facility$1,436 $45 $(95)$— $— $1,386 
Lease liabilities288 — (23)(1)14 278 
Deferred debt transaction costs(10)— — — — (10)
$1,714 $45 $(118)$(1)$14 $1,654 
Statements of cash flowsNon-cash changes
Six-month period ended June 30, 2025
(millions)
Beginning
of Period		Issued or receivedRedemptions,
repayments or payments		Foreign
exchange movement		OtherEnd of
period
Long-term debt      
Credit facility$1,284 $387 $(406)$— $15 $1,280 
Lease liabilities249 — (46)8 78 289 
Deferred debt transaction costs(8)— — — (1)(9)
 $1,525 $387 $(452)$8 $92 $1,560 
Statements of cash flowsNon-cash changes
Six-month period ended June 30, 2024
(millions)
Beginning
of Period		Issued or receivedRedemptions,
repayments or payments		Foreign
exchange movement		OtherEnd of
period
Long-term debt
Credit facility$1,463 $90 $(167)$— $— $1,386 
Lease liabilities298 — (45)(3)28 278 
Deferred debt transaction costs(11)— — — 1 (10)
$1,750 $90 $(212)$— $(3)$29 $1,654 
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