IBEX 2026 Q1 Earnings Record $12.04M Net Income, 16.5% Revenue Growth

IBEX Limited (NASDAQ: IBEX) delivered a strong start to fiscal 2026, surpassing market expectations with robust revenue and earnings growth. The company raised its full-year guidance, reflecting confidence in sustained momentum driven by AI integration and digital service expansion.

Revenue

IBEX reported first-quarter revenue of $151.18 million, a 16.5% year-over-year increase from $129.72 million. Growth was fueled by high-margin digital and omnichannel services, which now account for 82% of total revenue. Specific segment performance highlighted Retail & E-commerce’s 25.0% surge, HealthTech’s 19.5% expansion, and Travel, Transportation & Logistics’ 15.4% rise. Offshore revenue grew 20%, while onshore digital acquisition services surged 21%.

Earnings/Net Income

Net income soared to $12.04 million in Q1 2026, up 59.9% from $7.53 million in the prior-year period. Adjusted EPS reached $0.90, doubling from $0.45, while net income margin expanded to 8.0% from 5.8%. The company’s profitability gains were driven by operational efficiencies, lower tax expenses, and strategic cost management. The EPS nearly doubled year-over-year, underscoring robust earnings growth and operational efficiency.

Post-Earnings Price Action Review

Despite beating expectations, IBEX’s stock faced short-term selling pressure, declining 5.66% in the latest trading day, 1.39% for the week, and 1.65% month-to-date. The mixed market reaction contrasted with the company’s strong fundamentals, including a 12.9% adjusted EBITDA margin and $8.0 million in free cash flow. Analysts attributed the dip to broader market caution rather than company-specific concerns, noting IBEX’s improved balance sheet and strategic AI investments as long-term positives.

CEO Commentary

CEO Bob Dechant emphasized IBEX’s leadership in AI-driven customer experience (CX) solutions, citing 75+ pipeline opportunities and 15+ active deployments. He highlighted a 67% increase in high-revenue clients and a client Net Promoter Score of 71 (world-class), alongside 98% revenue retention. Dechant expressed optimism about margin expansion and market share gains, attributing success to AI automation, trophy client wins, and operational execution.

Guidance

IBEX raised fiscal 2026 revenue guidance to $605–$620 million (up from $590–$610 million) and adjusted EBITDA to $78–$81 million (up from $75–$79 million). The CFO cited strong Q1 performance, including $8.0 million in free cash flow, to justify the upward revision. Capital expenditures are expected to remain in the $20–$25 million range, supporting AI expansion and high-margin region investments.

Additional News

IBEX announced the appointment of Michael Ringman as CTO to accelerate AI technology roadmaps, signaling a strategic pivot toward innovation. The company also repurchased 92,000 shares for $2.7 million, with $10.6 million remaining in its buyback authorization. Additionally, IBEX expanded AI Automate Agent deployments, winning seven high-profile clients against larger competitors, and reported a record employee Net Promoter Score of 77, reflecting internal alignment with growth initiatives.