10-Q · May 6, 2026
IBEX reported a strong Q3 2026 with revenues of $164.4 million, a 16.8% increase year-over-year, exceeding estimates and leading to an EPS of $0.91. Growth was driven by key verticals such as HealthTech and Technology,…
Earnings analysis · 10-K
IBEX earnings analysis
Filed September 10, 2026 · Our reading of the company's report
The latest report
IBEX delivered a strong fiscal 2026, with revenue up 15.4%, diluted EPS up 32.8% to $3.13, and free cash flow up 14.3% to $31.2 million. Growth was broad-based across HealthTech, Retail & E-commerce, Travel,…
Read full summary
IBEX delivered a strong fiscal 2026, with revenue up 15.4%, diluted EPS up 32.8% to $3.13, and free cash flow up 14.3% to $31.2 million. Growth was broad-based across HealthTech, Retail & E-commerce, Travel, Transportation & Logistics, Technology, and digital acquisition, while offshore expansion and AI investment strengthen the company’s positioning. Operating margin improved modestly to 8.5%, although adjusted EBITDA margin declined slightly to 12.8% from 12.9% and labor, client concentration, currency, and AI execution remain material risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.13
- Segment
- Single reportable segment; FY2026 revenue was $644.1 million.
- Segment
- Vertical mix: Retail & E-commerce 25.7%, HealthTech 17.7%, Travel, Transportation & Logistics 14.1%, Telecommunications 9.2%, Technology 8.4%, and Other 14.9%.
- Segment
- Delivery mix: Onshore $169.6 million, offshore $327.3 million, and nearshore $147.2 million.
What stood out
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Strong double-digit growth and EPS expansion
Revenue increased 15.4% to $644.1 million in fiscal 2026 from $558.3 million in fiscal 2025, while net income rose 25.7% to $46.3 million and diluted EPS increased to $3.13 from $2.36.
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Broad-based vertical growth
Growth was broad-based in key verticals: HealthTech increased 38.5% ($31.7 million), Travel, Transportation & Logistics increased 17.2% ($13.3 million), Retail & E-commerce increased 14.1% ($20.5 million), and Technology increased 25.6% ($11.1 million).
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Offshore scale supports operating leverage
The company added 17 new clients, increased offshore headcount by approximately 1,700 employees, and reported that approximately 97% of workstations were in nearshore or offshore geographies as of June 30, 2026.
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AI roadmap expands the addressable market
IBEX is positioning Wave iX around a three-part AI strategy: improving agent productivity, enhancing customer-journey insights, and deploying AI agents for low-complexity voice and chat transactions, translation, and AI-to-human interactions.
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Cash generation and balance sheet improved
Free cash flow increased 14.3% to $31.2 million from $27.3 million, despite capital expenditures rising 51.3% to $27.8 million. Year-end net cash increased to $30.9 million from $13.7 million.
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Meaningful share repurchases continue
The company repurchased 452,758 shares for $14.4 million in fiscal 2026 and authorized a further $20 million program on May 11, 2026, with $17.9 million remaining at year-end.
What to watch
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AI disruption and deployment risk
AI adoption creates both substitution and execution risk: the filing states that third-party AI may automate or reduce demand for standardized services, while flawed outputs, data bias, privacy issues, regulatory changes, or system failures could harm operations. Developing, testing, deploying, and governing AI may also increase costs.
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U.S. demand and foreign-currency exposure
The business remains highly concentrated geographically and operationally: 97% of revenue came from U.S.-based customers, while 30.9% of payroll costs were in Philippine pesos, 8.9% in Jamaican dollars, and 11.6% in Pakistani rupees. A 10% appreciation of those currencies would increase expenses by $14.3 million, $4.3 million, and $6.2 million, respectively.
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Client concentration and volume volatility
Client concentration and contract flexibility remain material: the top three clients represented 24% of fiscal 2026 revenue and the largest client represented 9%; most contracts have no minimum volume requirements and generally can be terminated for convenience with 30 to 120 days’ notice.
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Wage inflation and utilization pressure
Labor is the dominant cost base, with payroll and related costs plus stock-based compensation equal to $420 million, or 65% of revenue, in fiscal 2026. The filing also reports increasing wage pressure in all geographies and $1.2 million of severance costs related to transferring work from nearshore to offshore centers.
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International operating disruption
The company relies on international delivery locations, particularly the Philippines, Pakistan, Jamaica, and Nicaragua, and operated 30 centers with 21,705 workstations at June 30, 2026. Power outages, geopolitical events, natural disasters, labor disruption, or regulatory changes in these locations could impair service levels and profitability.
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Potential warrant dilution
The Amazon warrant covers 1,171,812 vested shares, is exercisable at $9.42 per share through November 12, 2027, and is included in diluted share calculations. Exercise could dilute existing shareholders and reduce EPS.
Management's outlook
The 10-K provides no numeric revenue or EPS guidance. It expects fiscal 2027 capital expenditures of $25 million to $30 million, with slightly more than 50% allocated to capacity expansion. Revenue and adjusted EBITDA outlook was provided separately in the fiscal 2026 earnings release.
Earlier filings 4
10-Q · May 8, 2025
IBEX reported a strong recovery in Q3 FY2025, achieving a revenue of $140.7 million, which was a notable increase of 10.2% from the prior quarter and a robust 10.9% year-over-year. Gross margin improved to 31.8%, and…
10-Q · May 9, 2024
IBEX reported revenue of $126,795,000 for the three months ended March 31, 2024, down from $131,557,000 a year earlier. Income from operations fell to $11,282,000 and diluted EPS was $0.57 (down from $0.59). Operating…
10-K · September 13, 2023
IBEX positions itself as a technology-led BPO ("BPO 2.0") leveraging the WaveX platform to move clients from commoditized call-center services to digital-first omnichannel CX. The filing highlights scale (~24,000…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.