IBEX Q4 Earnings Call Highlights

IBEX NASDAQ: IBEX reported record fourth-quarter and fiscal 2026 results, supported by double-digit revenue growth, expansion in health tech and other verticals, and increasing traction for its AI agent offerings.

Fourth-quarter revenue rose 12% year over year to $164.3 million, marking the company’s sixth consecutive quarter of double-digit revenue growth.

For the full fiscal year, revenue increased 15.4% to $644.1 million.

Chief Executive Officer Bob Dechant said the company’s growth reflected its differentiated positioning in the business-process outsourcing market, its new-client wins, and its ability to expand relationships with existing customers.

“We delivered record fourth quarter revenue,” Dechant said, adding that the company also produced full-year records for adjusted EBITDA, earnings per share, adjusted earnings per share, operating cash flow and free cash flow.

IBEX added nine new “trophy” client logos during the fourth quarter, bringing its fiscal-year total to 17 across multiple geographies and industry verticals.

Revenue from its top five, top 10 and top 25 clients increased 24%, 22% and 15%, respectively, during the year, according to management.

The company said it achieved revenue and client retention rates above 99% in fiscal 2026.

Dechant also said three Fortune 500 clients, each among IBEX’s top 10 customers, named the company Partner of the Year.

Its client net promoter score was 71, while employee net promoter score rose to 82 from 77, with 95% participation.

Health tech remained a major growth driver.

Fourth-quarter health-tech revenue increased 42% to $29.4 million, while full-year revenue in the vertical climbed 38% to $114 million.

The company had previously targeted building the health-tech operation into a $100 million business by the end of the fiscal year.

Chief Financial Officer Taylor Greenwald said fourth-quarter growth also included a 27% increase in technology revenue, an 18% increase in travel, transportation and logistics revenue, and 7% growth in retail and e-commerce.

For the year, health tech grew 38%, technology grew 26%, travel, transportation and logistics rose 17%, and retail and e-commerce increased 14%.

IBEX’s onshore revenue rose 15% in the fourth quarter, while offshore revenue grew 14% and nearshore revenue increased 2%.

Offshore operations accounted for 50% of quarterly revenue.

Digital and omnichannel services grew 12% and represented 82% of revenue, management said.

Dechant highlighted the company’s partnership with Sierra AI as a key part of IBEX’s strategy.

The company formalized the partnership in late January and announced it publicly in May.

IBEX said it now has AI agent deployments with a double-digit number of clients across five verticals.