IBEX — First Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Revenue increased 15.9% year-over-year to a record $175.2 million, marking the seventh consecutive quarter of double-digit organic growth.
• Net income rose 22.7% to $14.8 million, with net income margin expanding to 8.4% from 8.0% in the prior year quarter.
• Adjusted net income grew 25.1% to $16.4 million, resulting in an adjusted net income margin of 9.4% compared to 8.7% previously.
• Adjusted EBITDA reached a record $25.2 million, a 29.4% increase from $19.5 million, with margins expanding 150 basis points to 14.4%.
• Diluted EPS increased 19.6% to $0.99, while adjusted diluted EPS grew 21.2% to $1.10.
• Operating cash flow hit a first-quarter record of $16.3 million, up from $15.7 million in the prior year quarter.
• Free cash flow improved to $9.2 million from $8.0 million in the prior year quarter.
• Net cash position increased to $35.0 million from $30.9 million as of June 30, 2026.
• Capital expenditures were $7.2 million, down from $7.6 million in the prior year quarter.
• Total debt stood at $1.654 million ($872 million current, $782 million non-current) as of September 30, 2026.

Guidance and Future Outlook

• Fiscal 2027 revenue guidance raised to $720–$735 million, reflecting 12–14% growth versus the previous guidance of $700–$715 million (9–11% growth).
• Fiscal 2027 adjusted EBITDA guidance raised to $96–$99 million, reflecting 17–20% growth versus the previous guidance of $90–$94 million (9–14% growth).
• Full-year capital expenditures guidance set at approximately $30 million, at the high end of the previous $25–$30 million range.
• Management expressed increased confidence in driving double-digit growth and year-over-year margin expansion for the remainder of fiscal 2027.

Business Segments and Product Lines

• Broad-based revenue growth occurred across four verticals: HealthTech (+39.9%), Travel/Transportation/Logistics (+16.4%), Technology (+9.8%), and Retail & E-commerce (+8.7%).
• Growth was driven by new logos and expansion within the embedded client base.
• Four new customer logos were secured in the quarter, including two in the FinTech sector.
• The Sierra partnership continues to show strong momentum, with four new AI agent wins recorded since the quarter ended and a robust pipeline.
• Capital expenditures were directed toward capacity expansion in highest-margin offshore regions to meet strong demand.

Market and Competitive Landscape

• Management stated the company is consistently taking market share from competitors with existing clients.
• The company highlighted a "new logo engine" winning at an unprecedented rate due to its differentiated strategy.
• The AI agent solution is identified as a new vector of growth contributing to market differentiation.

Risks and Challenges

• Forward-looking statements note risks including the ability to attract new business, retain key clients, and manage profitability based on utilization, pricing, and costs.
• Potential risks include client consolidation, insourcing trends reversing, and general economic uncertainty such as inflation, rising interest rates, and recession.
• Operational risks involve managing international operations in the Philippines, Jamaica, Pakistan, and Nicaragua, as well as geopolitical conditions, natural events, and health epidemics.
• Technology and workforce risks include the ability to implement IT solutions keeping pace with industry standards, effective AI adoption, and recruiting/retaining a global workforce.
• Compliance risks involve data privacy, information security, and potential impacts from cyberattacks.

Management Commentary and Tone

• CEO Bob Dechant described the quarter as a "record-breaking start" with the highest adjusted EBITDA in company history, attributing success to differentiation and a strong new logo engine.
• CFO Taylor Greenwald noted the results were driven by stellar growth from new logos and embedded client expansion, underscoring the long-term value of the company's strategy.
• Management tone is confident, citing momentum that supports raising full-year guidance for both revenue and adjusted EBITDA.

Other Key Points

• The company repurchased 122,806 shares for $4.4 million at an average price of $35.92 during the quarter.
• Deferred revenue increased, with current deferred revenue rising to $7.971 million and non-current deferred revenue at $1.916 million as of September 30, 2026.
• The company employs approximately 39,000 human CX experts globally.
• No quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA to GAAP measures is provided due to the inability to predict non-recurring expenses, foreign currency gains/losses, and stock-based compensation with reasonable certainty.