This article first appeared on GuruFocus .
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Q4 Revenue:$164.3 million, up 12% year over year from $147.1 million; sixth consecutive quarter of double-digit growth.
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Full-Year Revenue:$644.1 million, up 15.4% from $558.3 million; record full-year revenue.
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Q4 Gross Margin:28.6%.
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Q4 GAAP Net Income:$8.7 million, down from $9.6 million in the prior year quarter.
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Q4 GAAP Diluted EPS:$0.59, down from $0.66 in the prior year quarter.
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Q4 Adjusted EBITDA:$20.2 million, or 12.3% of revenue, down from $20.5 million, or 13.9% of revenue, in the prior year quarter.
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Q4 Adjusted Net Income:$12.7 million, consistent with the prior quarter.
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Q4 Non-GAAP Diluted Adjusted EPS:$0.85, compared to $0.87 in the prior year quarter.
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Full-Year Net Income:$46.3 million, up from $36.9 million in the prior year.
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Full-Year GAAP Diluted EPS:$3.13, up 32.8%.
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Full-Year Adjusted EBITDA:Record $82.4 million, up from $72 million; margin of 12.8% versus 12.9% prior year.
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Full-Year Adjusted Net Income:$52.2 million, up 21% from $43 million.
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Full-Year Non-GAAP Diluted Adjusted EPS:$3.52, up 28% from $2.75.
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Operating Cash Flow:Record $59 million for fiscal year 2026, up from $45.7 million.
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Free Cash Flow:Record inflow of $31.2 million, up from $27.3 million.
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Capital Expenditures:$27.8 million, or 4.3% of revenue, versus $18.4 million, or 3.3% of revenue, prior year.
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DSOs:69 days for the quarter, down from 72 days at the end of last year.
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Health Tech Vertical:Q4 revenue grew 42% to $29.4 million; full-year grew 38% to $114 million, surpassing the $100 million target.
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Technology Vertical:Q4 grew 27%; full-year grew 26%.
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Travel, Transportation & Logistics Vertical:Q4 grew 18%; full-year grew 17%.
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Retail & E-commerce Vertical:Q4 grew 7%; full-year grew 14%.
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FinTech Vertical:Q4 revenue up 3%, representing 9.7% of revenue.
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Telecommunications Vertical:Q4 exposure decreased to 9.4% of revenue from 10.9% prior year quarter.
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Onshore Region:Q4 grew 15%; full-year grew 25%; expanded to 28% of total revenue.
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Offshore Region:Q4 grew 14%; full-year grew 16%; comprised 50% of Q4 revenue and 51% of full-year revenue.
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Nearshore Region:Q4 grew 2%; full-year grew 5%.
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Digital & Omnichannel Services:Q4 grew 12%, reaching 82% of total revenue.
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Client Concentration:Largest client 9% of Q4 revenue; top 5, top 10, and top 25 clients represented 33%, 53%, and 75% of revenue, respectively.
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Client Retention:Over 99% for fiscal year 2026; client NPS of 71.
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New Logos:Nine new trophy logos added in Q4; 17 total for the year.
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Share Repurchases:143,000 shares repurchased in Q4 for $4.3 million at an average price of $29.83; full-year repurchases of 453,000 shares for $14.4 million at an average price of $31.70.
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Balance Sheet:Ended Q4 with $32.6 million cash and $1.7 million debt, for a net cash position of $30.9 million.
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FY2027 Revenue Guidance:$700 million to $715 million, or 9% to 11% growth.
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FY2027 Adjusted EBITDA Guidance:$90 million to $94 million, or 9% to 14% growth.
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Q1 FY2027 Revenue Guidance:$168 million to $170 million, or 11% to 12% growth.
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Q1 FY2027 Adjusted EBITDA Guidance:$22 million to $23 million, or 13% to 18% growth.
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FY2027 Capital Expenditures Guidance:$25 million to $30 million.
Release Date: September 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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IBEX Ltd ( NASDAQ:IBEX ) reported record Q4 revenue of $164.3 million, up 12% year-over-year, marking the sixth consecutive quarter of double-digit revenue growth.
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Full-year organic revenue growth was 15% to $644.1 million, with record adjusted EBITDA, EPS, adjusted EPS, operating cash flow, and free cash flow.
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The Health Tech vertical grew 42% in Q4 to $29.4 million and 38% for the full year to $114 million, surpassing the $100 million target.
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IBEX Ltd ( NASDAQ:IBEX ) added nine new trophy logos in Q4, bringing the annual total to 17 wins, and revenue from top five, top 10, and top 25 clients grew 24%, 22%, and 15% respectively.
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The company achieved a world-class client Net Promoter Score of 71 and revenue and client retention rates north of 99%, with employee Net Promoter Score increasing to 82.
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IBEX Ltd ( NASDAQ:IBEX ) is leading in AI agent solutions through its partnership with Sierra AI, with double-digit client deployments across five verticals, driving incremental growth and future-proofing the business.
Negative Points
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Q4 GAAP net income decreased to $8.7 million from $9.6 million in the prior year quarter, and fully diluted GAAP EPS fell to $0.59 from $0.66.
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Adjusted EBITDA margin declined to 12.3% in Q4 from 13.9% a year earlier, due to training expenses for new client wins, work transfers from nearshore to offshore, and higher fuel prices.
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The nearshore region grew only 2% in Q4 and 5% for the full year, underperforming other regions.
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Telecommunications vertical revenue decreased to 9.4% of total revenue from 10.9% in the prior year quarter, due to lower volume from legacy carriers.
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The effective tax rate is expected to normalize to 20-22% in fiscal 2027, up from 14.7% in fiscal 2026, which could impact net income.
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Fiscal year 2027 revenue guidance of $700-$715 million implies 9-11% growth, a deceleration from 15% growth in fiscal 2026.
Q & A Highlights
Q: Your growth has accelerated pretty nicely since the AI fears have kicked in, ironically. Are you guys already seeing benefits from AI? Is that part of what is driving this growth, or can that be an accelerating factor in the years to come here? A: CEO Robert Dechant said the Sierra AI partnership puts IBEX in a different classification versus the rest of the BPO pack, positioning it as a partner for both human agents today and AI agents as clients evolve. He noted AI deployments ramp from proof of concept to 20%-40% of enterprise volume almost immediately, versus the long hiring and training cycles required on the human side, creating another dimension of growth. He believes IBEX has future-proofed the business by getting out in front of the AI threat.
Q: On the FQ4 tax rate, it was a bit lower. How do you think about that for the coming year? Should that go back to near 20%, or does that stay structurally lower for a little bit? A: CFO Taylor Greenwald said the fourth quarter benefited from discrete tax items, including a favorable resolution of a tax matter with the tax authority. For modeling purposes, he expects the tax rate going forward to be in the 20% to 22% range.
Q: Congrats on the good results. Looks like broad-based growth across all four verticals. Could you provide a little bit more color on each vertical out into 1Q and to 2027? Is growth going to be accelerating, or where should we be focused? A: CEO Robert Dechant said Health Tech is performing well with big payers and a strong pipeline, plus wins in specialty areas like non-emergency medical transportation. In E-commerce, IBEX is winning new logos and taking massive share by outperforming competitors, with the Pakistan market growing rapidly. In Travel, Transportation and Logistics, the company is containing calls with AI while winning share, as highlighted by the Philippine Airlines win. He feels strongly about the FY2027 trajectory, viewing the nine Q4 new logos as driven by brand, differentiation, and the AI agent play, where BPO competitors are not leaning in.
Q: (Operator) Are there any further questions in the queue? A: The operator indicated no further questions, and CEO Robert Dechant closed by thanking the team, expressing pride in the year's performance, and noting the company looks forward to speaking again in November.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
