Q4 2026 Ibex Ltd Earnings Call Transcript
Key Points
- IBEX Ltd (IBEX) reported record Q4 revenue of $164.3 million, up 12% year-over-year, marking the sixth consecutive quarter of double-digit revenue growth.
- 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.
- 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.
- IBEX Ltd (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.
- 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.
- IBEX Ltd (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.
- 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.
- 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.
- The nearshore region grew only 2% in Q4 and 5% for the full year, underperforming other regions.
- 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.
- 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.
- Fiscal year 2027 revenue guidance of $700-$715 million implies 9-11% growth, a deceleration from 15% growth in fiscal 2026.
Hello and welcome to IBEX's fourth quarter and full-year 2026 earnings conference call. (Operator Instructions) To note, there is an accompanying presentation available on the IBEX Investor Relations website at investor.ibex.co.
I would now like to hand the conference over to Mr. Greg Bradbury, Investor Relations for IBEX. Sir, you may begin.
Good afternoon and thank you for joining us today. Before we begin, I want to remind you that matters discussed on today's call may include forward-looking statements related to our operating performance, financial goals, and business outlook, which are based on management's current beliefs and assumptions. Please note that these forward-looking statements reflect as of the date of this call, and we undertake no obligation to revise this information as a result of new developments which may occur.
Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause our actual results to differ materially from those
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