Summary of IBEX Q4 2026 Earnings Call

1Key Financial Results and Metrics

Q4 Revenue: $164.3 million, up 12% year-over-year from $147.1 million.

Full Year Revenue: $644.1 million, a 15.4% increase from $558.3 million.

Adjusted EBITDA: $20.2 million (12.3% of revenue), slightly down from $20.5 million (13.9% of revenue) in Q4 2025.

GAAP Net Income: $8.7 million, down from $9.6 million in the prior year quarter.

Adjusted Net Income: $12.7 million, consistent with Q4 2025.

Free Cash Flow: Record inflow of $31.2 million for the fiscal year.

EPS: GAAP EPS of $0.59 (down from $0.66); Non-GAAP adjusted EPS of $0.85 (down from $0.87).

2Strategic Updates and Business Highlights

New Logo Wins: 9 new trophy clients added in Q4, totaling 17 for the fiscal year.

Client Retention: Over 99% retention rate, with a world-class Net Promoter Score of 71.

HealthTech Growth: Revenue grew 42% in Q4, exceeding the target of $100 million for the year, reaching $114 million.

AI Integration: Strategic partnership with Sierra AI to enhance AI agent solutions, leading to significant client wins and operational efficiencies.

Diversification: Revenue from the top 5, 10, and 25 clients represented 33%, 53%, and 75% of total revenue, indicating a well-diversified client base.

3Forward Guidance and Outlook

Fiscal Year 27 Revenue Guidance: Expected between $700 million and $715 million (9% to 11% growth).

Adjusted EBITDA Guidance: Projected between $90 million and $94 million (9% to 14% growth).

Q1 Fiscal Year 27 Revenue Guidance: Expected between $168 million and $170 million (11% to 12% growth).

Capital Expenditures: Anticipated between $25 million and $30 million for the year.

4Bad News, Challenges, or Points of Concern

GAAP Net Income Decline: Decreased from the prior year due to higher training expenses, work transfer impacts, and increased fuel costs.

Adjusted EBITDA Margin Pressure: Slight decrease in margin due to expenses related to new client onboarding and operational transitions.

Tax Rate Fluctuations: The effective tax rate was lower in Q4 due to discrete items; expected to normalize between 20% and 22% going forward.

5Notable Q&A Insights

AI Impact on Growth: Management noted that the integration of AI solutions is driving growth and differentiating IBEX from competitors, positioning the company for future success.

Vertical Growth Prospects: Strong pipelines in HealthTech and eCommerce, with continued market share gains expected in 2027.

Competitive Landscape: IBEX is leveraging its AI capabilities to outperform traditional BPO competitors, which are not adapting as quickly to AI advancements. Overall, IBEX reported strong financial performance in Q4 2026, marked by significant revenue growth and strategic advancements in AI integration, despite some challenges in net income and margins. The company is optimistic about future growth driven by its diversified client base and innovative solutions.