IBEX (IBEX) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $164.4 million, up 16.8% year-over-year, with double-digit growth in revenue, adjusted EBITDA, and EPS for multiple consecutive quarters, driven by Health Tech, Technology, Retail & E-commerce, and Travel, Transportation & Logistics, partially offset by declines in Telecommunications.

• Diluted EPS rose 22% to $0.89, and adjusted EPS increased 11% to $0.91, with net income up 27.3% to $13.3 million.

• Maintained 100% client retention for the quarter and 99.9% revenue retention for the year, with 11 new client wins through April.

• Announced a strategic partnership with Sierra/Sierra.ai to integrate AI-powered CX solutions, accelerating deal wins and positioning as a leader in AI-powered BPO 3.0.

• Growth attributed to expansion in higher margin offshore regions, new client wins, and increased digital acquisition business.

Financial highlights

• Net income increased to $13.3 million from $10.5 million year-over-year; fully diluted EPS rose to $0.89 from $0.73.

• Adjusted EBITDA reached $22.0 million (13.4% of revenue), up from $19.4 million (13.8%) year-over-year.

• Free cash flow for the quarter was $6.6 million, up from $3.6 million year-over-year; for the nine months ended March 31, 2026, free cash flow was $9.5 million.

• SG&A expenses decreased to 16.7% of revenue from 19.2% year-over-year.

• Cash and cash equivalents as of March 31, 2026, were $15.4 million, with net cash of $14.0 million and total debt of $1.4 million.

Outlook and guidance

• Fiscal year 2026 revenue guidance raised to $638–$642 million (previously $620–$630 million); adjusted EBITDA guidance increased to $82–$84 million (previously $80–$82 million).

• CapEx guidance increased to $25–$30 million to support growth in higher-margin regions.

• Management expects continued growth driven by expansion in offshore regions, digital solutions, and AI integration.

• Expect DSOs to remain stable in the low to mid-70s; DSO improved to 71 days from 77 days year-over-year.

• Macroeconomic factors such as inflation, interest rates, and global uncertainty may impact future results.