IBEX Limited

Fourth-quarter revenue was $164.3 million, up 12% from $147.1 million a year ago. GAAP net income was $8.7 million versus $9.6 million last year, GAAP EPS was $0.59 versus $0.66, adjusted EBITDA was $20.2 million versus $20.5 million, adjusted EBITDA margin was 12.3% versus 13.9%, adjusted net income was $12.7 million, and adjusted EPS was $0.85 versus $0.87. Full-year revenue was $644.1 million, up 15.4% from $558.3 million; GAAP net income was $46.3 million versus $36.9 million; GAAP EPS rose 32.8% to $3.13; adjusted EBITDA increased to $82.4 million from $72 million; adjusted EBITDA margin was 12.8% versus 12.9%; adjusted net income rose 21% to $52.2 million; adjusted EPS rose 28% to $3.52; operating cash flow was a record $59 million; and free cash flow was a record $31.2 million. Q4 gross margin was 28.6%. For fiscal 2027, IBEX guided revenue to $700 million to $715 million, representing 9% to 11% growth, adjusted EBITDA to $90 million to $94 million, or 9% to 14% growth, first-quarter revenue to $168 million to $170 million, and first-quarter adjusted EBITDA to $22 million to $23 million. Capital expenditures are expected to be $25 million to $30 million, and management expects the tax rate to be 20% to 22%.

CEO Bob Dechant framed fiscal 2026 as a banner year and said IBEX is widening its separation from traditional BPO competitors. He emphasized a “flywheel” of differentiation, new-logo wins, strong retention, and high client satisfaction, while highlighting that AI agents with Sierra are turning a perceived threat into a growth opportunity. His tone was confident and expansive, especially around the company’s ability to lead with AI and then expand into traditional human-agent work.

CFO Taylor Greenwald focused on the operating leverage beneath the top line: Q4 revenue grew 12% to $164.3 million, but margins were pressured by new-client training costs, work shifting from nearshore to offshore, and higher fuel/utility costs. She noted Q4 adjusted EBITDA was $20.2 million, adjusted EBITDA margin was 12.3%, and full-year adjusted EBITDA reached a record $82.4 million with free cash flow of $31.2 million and operating cash flow of $59 million. She also pointed to a strong balance sheet, with $32.6 million of cash, $1.7 million of debt, net cash of $30.9 million, a renewed HSBC revolver through October 2029 with up to $76 million of capacity, and $17.9 million remaining under the share repurchase authorization.

Analysts focused on whether AI was already helping growth and whether it could become a bigger driver. Management said the Sierra partnership improves differentiation and is accelerating both traditional business and AI-agent opportunities, with proof-of-concept deployments moving quickly to full rollout and meaningful enterprise volume. They also asked about the lower Q4 tax rate; CFO said it was helped by discrete items and that the normalized rate should be 20% to 22% going forward. On verticals, management said HealthTech, ecommerce, and travel are all seeing strong pipelines and that the 9 new Q4 logos were not a one-off.