IBEX Limited Q2 FY2026 earnings call

• Recognized the IBEX organization for delivering an outstanding quarter with headline revenue growth of 17% and adjusted EPS growth of 46%.
• Fourth consecutive period of double-digit organic revenue growth. HealthTech vertical growing rapidly, on track to be $100M by end of fiscal year.
• Expansion into India with 2 sites and nearly 1,000 agents, offering broader services beyond traditional contact center.
• Achieved milestones in 2025: surpassed $600M in revenue, grew 16% profitably with $80M EBITDA and 13% margins.
• Market-leading growth due to differentiation, new logo engine winning trophy clients in HealthTech and FinTech.
• AI capabilities with Wave iX solution, leveraging business insights and internal AI deployment for efficiency.
• Promoted Mike Darwal to Chief AI and Digital Officer.

In the second quarter of FY 2026, IBEX achieved headline revenue growth of 17% and adjusted EPS growth of 46%. Revenue breakdown by verticals: HealthTech increased to 17.4% of revenue from 15.1% prior year, Travel, transportation and logistics to 14.1% from 13.7%, Retail and e-commerce remained 28.6%, Other increased to 13.7% from 10.6%, FinTech was 9.3% (relatively flat), and Telecommunications decreased to 8.7% from 13.1%. Geographically, offshore revenues comprised 52.3% of total revenue, onshore revenues expanded to 24% from 22% prior year, nearshore grew 8.5%, and higher-margin digital and omnichannel services grew 19% to 82% of total revenue.

• Revenue expected to be in the range of $620 million to $630 million, up from previous range of $605 million to $620 million.
• Adjusted EBITDA expected to be in the range of $80 million to $82 million, up from previous range of $78 million to $81 million.
• Capital expenditures expected to be at the upper end of the previous $20 million to $25 million range.

• Deferred training revenue impact during high-growth phase as training costs are expensed in period but revenue is spread over the program.
• Investment in India still ongoing with margins not yet fully realized as it's less than a year since expansion.

Q: A lot of market turbulence around AI and who's going to win and who's going to lose and new products coming out. Is your industry and your company a benefit of AI? Is it a headwind?

A: Yes, we've established AI leadership position. Helps new logo engine win BPO deals, aids operational execution to distance from pack, and creates unique AI agentic solutions with seamless end-to-end journey.

Q: The mix of business is changing, does that change the sequential pattern of revenue? And the gross margins went down year-over-year, but operating expense percent of revenue got more favorable. What's driving that?

A: Mix change leads to less massive spike in Q2 historically. SG&A expenses are growing less than revenue, so SG&A as percent of revenue is decreasing. Headwinds include deferred training revenue impact and investment in India still affecting margins but are due to growth.