IBEX Limited

What they do

IBEX operates 32 delivery centers worldwide and employs roughly 36,000 people to run customer service, technical support, revenue generation, and back-office processes for more than 140 clients. It sells through two main business units: Connect, which handles core outsourced CX operations, and ibex Digital, which provides digital marketing, e-commerce technology, and acquisition solutions. The company's Wave iX platform integrates AI, analytics, and omnichannel communication to support its service delivery.

Revenue drivers

• HealthTech — Grew 53.7% in the quarter ended March 31, 2026, making it a key high-growth vertical.
• Technology — Grew 42.6% in the same quarter, contributing to broad-based revenue growth.
• Travel, Transportation & Logistics — Grew 15.1% in the quarter ended March 31, 2026, a significant vertical for the company.
• Retail & E-commerce — Grew 8.3% in the quarter ended March 31, 2026, and represents one of the core verticals.

Recent performance

In the fiscal third quarter ended March 31, 2026, IBEX reported record revenue of $164.4 million, up 16.8% year over year, and net income of $13.3 million, up 27.3% from $10.5 million. Diluted EPS rose 21.9% to $0.89, and adjusted EPS rose 10.7% to $0.91. For the nine months through March 31, 2026, revenue increased 16.7% to $479.8 million and net income grew 37.8% to $37.6 million. Management said growth was driven by higher-margin offshore regions and lower SG&A as a percentage of revenue.

Strategy

IBEX is pursuing a 'BPO 3.0' strategy that combines human and AI-powered customer experience, highlighted by a strategic partnership with Sierra AI to integrate their AI platform with IBEX's CX expertise. The company is focusing on new client wins in strategic verticals, with eight new clients year-to-date in fiscal 2026, and is expanding its digital acquisition business. Management is also leveraging cost-shifting trends, as clients seek offshore delivery, and continues to invest in its Wave iX technology and AI capabilities to differentiate service.

Risks

• Client concentration — Top three clients account for 26% of revenue and the top client for 11%, so losing a major client would materially hurt results.
• Utilization and cost management — Profitability depends on efficient use of people and facilities; inability to transition employees or manage costs would pressure margins.
• Macroeconomic and geopolitical exposure — Operations in the Philippines, Jamaica, Pakistan, and Nicaragua are exposed to natural events, health epidemics, geopolitical conflicts, and currency fluctuations.
• AI disruption — The increasing adoption of AI in the BPO industry could change demand dynamics, and IBEX must keep pace with evolving technology to remain competitive.

Outlook

Management raised full-year fiscal 2026 guidance for revenue and adjusted EBITDA, citing continued strong demand and the fifth consecutive quarter of double-digit revenue growth. The Sierra AI partnership is expected to accelerate deal velocity and win new clients. Growth is anticipated to continue across key verticals, with emphasis on higher-margin offshore delivery.