IBEX — Fiscal Year 2026 Earnings Summary

Financial Performance

• Q4 2026 revenue reached $164.3 million, an 11.6% increase year-over-year (YoY) from $147.1 million.
• Full-year 2026 revenue totaled $644.1 million, a 15.4% increase YoY from $558.3 million.
• Q4 2026 net income was $8.7 million, a decrease from $9.6 million in the prior year quarter; full-year net income rose to $46.3 million from $36.9 million.
• Q4 2026 diluted EPS was $0.59, down from $0.66; full-year diluted EPS increased 32.8% to $3.13 from $2.36.
• Q4 2026 adjusted net income was $12.7 million (up 0.8% YoY); full-year adjusted net income grew 21.3% to $52.2 million from $43.0 million.
• Q4 2026 adjusted diluted EPS was $0.85, down from $0.87; full-year adjusted diluted EPS increased 28.3% to $3.52 from $2.75.
• Q4 2026 adjusted EBITDA was $20.2 million, down 1.3% from $20.5 million; full-year adjusted EBITDA grew 14.5% to $82.4 million from $72.0 million.
• Q4 2026 net income margin was 5.3% (down 120 bps YoY); full-year net income margin improved to 7.2% (up 60 bps YoY).
• Q4 2026 adjusted EBITDA margin was 12.3% (down 160 bps YoY); full-year adjusted EBITDA margin was 12.8% (down 10 bps YoY).
• Q4 2026 operating cash flow was $24.8 million; full-year operating cash flow reached a record $59.0 million, up from $45.7 million.
• Q4 2026 free cash flow was $21.7 million; full-year free cash flow was $31.2 million, up from $27.3 million.
• Capital expenditures for the full year were $27.8 million, compared to $18.4 million in the prior year.
• Net cash position improved to $30.9 million at June 30, 2026, from $13.7 million the prior year.

Guidance and Future Outlook

• Fiscal 2027 revenue guidance is set between $700 million and $715 million, representing 9-11% growth.
• Fiscal 2027 adjusted EBITDA guidance is set between $90 million and $94 million, representing 9-14% growth.
• Q1 Fiscal 2027 revenue guidance is $168 million to $170 million, representing 11-12% growth.
• Q1 Fiscal 2027 adjusted EBITDA guidance is $22 million to $23 million, representing 13-18% growth.
• Fiscal 2027 capital expenditures are expected to range from $25 million to $30 million.

Business Segments and Product Lines

• Q4 2026 revenue growth was driven by HealthTech (+42.3%), Technology (+27.4%), Travel, Transportation and Logistics (+17.8%), and Retail & E-Commerce (+7.0%).
• Full-year 2026 revenue growth was driven by HealthTech (+38.5%), Technology (+25.6%), Travel, Transportation and Logistics (+17.2%), and Retail & E-commerce (+14.1%).
• The company secured nine new logo wins in Q4 2026, including two strategic AI Agent wins.
• The company has delivered more than 10 successful AI Agent implementations across five verticals.
• Growth in Wave iX solutions and the digital acquisition business contributed to full-year revenue performance.
• Q4 2026 net income margin compression was attributed to training costs for new client wins and temporary work transfers from nearshore to offshore delivery centers.

Market and Competitive Landscape

• The company reported six consecutive quarters of double-digit revenue growth.
• Management stated the company is outperforming competition operationally and gaining significant market share.
• A strategic partnership with Sierra, a conversational AI leader, has strengthened ibex's leadership position in the AI-powered BPO market.
• The company differentiates itself from traditional BPO providers through AI-enabled solution offerings.

Risks and Challenges

• Q4 2026 net income margin decreased due to training costs and delivery center transfer impacts.
• Forward-looking statements note risks including client consolidation, insourcing trends, economic uncertainty, inflation, interest rates, and foreign exchange fluctuations.
• Operational risks include managing international operations in the Philippines, Jamaica, Pakistan, and Nicaragua, as well as workforce recruitment and retention.
• Technology risks involve the ability to implement IT solutions keeping pace with industry standards and effective AI adoption.
• Cybersecurity vulnerabilities, data privacy regulations, and geopolitical conditions are cited as potential impacts.

Management Commentary and Tone

• CEO Bob Dechant described the quarter as "record-breaking" and the year as "amazing," citing top-line organic growth over 15% and adjusted EPS growth over 28%.
• CFO Taylor Greenwald expressed confidence that the strategy will continue to generate results outpacing the market in fiscal 2027.
• Management highlighted the "transformational step forward" in defining a new era of BPO powered by AI agents.

Other Key Points

• The company repurchased 0.1 million shares in Q4 2026 for $4.3 million at an average price of $29.83.
• Total share repurchases for fiscal 2026 were approximately 0.5 million shares for $14.4 million at an average price of $31.70.
• The company has a global team of approximately 35,000 human CX experts.
• Non-GAAP financial measures (adjusted net income, adjusted EBITDA) are used internally for forecasting and operational goals.
• The company is unable to provide a quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA to GAAP due to uncertainty regarding non-recurring expenses, foreign currency gains/losses, and stock-based compensation.