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Ibex : Q3 FY26 Earnings Call Presentation
Ibex : Q3 FY26 Earnings Call
About this update from Ibex Limited
. Compellifig Tr6ck Record of Outperformifig the Ifidustry Strong Financial Profile Growth Leader, Strong EBITDA, EPS, Free Cash Flow 17% YoY Q3 Revenue Growth 14% YoY Q3 Adj. EBITDA Growth 11% YoY Q3 Adj. EPS Growth Leader in BPO 2.0 Top Performer with our Trophy Clients 19% Growth with Top 10 Clients Best in Class Culture & Client Partnerships World class employee NPS, client NPS & Client Retention Powerful AI Enabled Tech Stack 77 Employee NPS 400+ 71 Client NPS >98% Client Retention 12 Award winning Wave iX technology CX & AI Developers Awards won in FY25 Deep Analytics & Business Insights Top-Tier Business Insights & Quality Analyst Team 800+ Data & QA Analysts Defining the Market in End-to-End AI Solutions for CX Strategic Partnerships with Sierra.ai, Maven AGI & Sanas BPO 3.0 Key Highlights ✓ Ke Record Revenue in Q3 of $164m: 17% Growth, 11% adjusted EPS Growth Fifth straight quarter of double-digit revenue growth Seventh of our last eight quarters of double-digit adjusted EBITDA growth Eighth consecutive quarter of double-digit GAAP and adjusted EPS growth ~25% growth within our Top 10 clients over last 5 quarters 100% client retention for Q3 FY26; 99.9% revenue retention FY26 11 new clients wins through April FY26 L6fidm6rk Afifiouficemefit Partnership of Best-In-Class Companies Agent Human Experience Business Insights Tech Integration • • • ibex: Best-in-Class BPO Conversational AI platform Human Experiences from AI • • Sierra: Best-in-Class AI Agent Seamless Experiences from AI Agent through Human Agent ibex extefidifig differefiti6tiofi ifito BPO 3.0 Leader in BPO 2.0 Leading in BPO 3.0 Culture Tech Deep Analytics 77 Industry-Best Employee NPS Purpose Built Tech Stack Market-Leading Business Insights Leadership in AI Best-in-Class AI Agent Solution ibex: Defining the Future of BPO . Q3 FY2026: Fifi6fici6l Highlights - US GAAP Record Q3 Revenue and EPS Revenue $164.4m Q3 FY26 vs. $140.7m Q3 FY25 16.8% YoY growth Fifth straight quarter of double-digit growth Growth in high margin HealthTech vertical (+53.7%), Technology vertical (42.6%), Travel, Transportation & Logistics (+15.1%) and Retail & E-commerce (+8.3%) partially offset by an expected decline in Telecommunications vertical (-23.1%) from prior year quarter Continued growth in our digital acquisition business Net Income $13.3m Q3 FY26 vs. $10.5m Q3 FY25 14% revenue growth in our higher margin offshore regions vs. prior year quarter 37% revenue growth in our onshore region driven by high margin digital acquisition business Operating leverage gained from SG&A expenses as they decreased to 16.7% from 19.2% of revenue in prior year quarter partially offset by $0.8m severance expense Fully Diluted EPS $0.89 Q3 FY26 vs. $0.73 Q3 FY25 Eight consecutive quarters of double-digit growth Strong Operating performance Lower Tax rate of 16.6% versus 19.2% in prior year quarter, primarily attributable to changes in revenue mix across our taxable jurisdictions, and favorable discrete tax benefits in current year quarter Q3 FY2026: Fifi6fici6l Highlights - Nofi-GAAP Adjusted Net Income $13.6m Q3 FY26 vs. $11.8m Q3 FY25 Adjusted EPS $0.91 per share Q3 FY26 vs. $0.82 per share Q3 FY25 Adjusted EBITDA $22.0m Q3 FY26 vs. $19.4m Q3 FY25 Seven of eight quarters of double-digit Adjusted EBITDA growth 40 bps decrease in Adjusted EBITDA margin is driven by: Temporary impact of work shifting from nearshore to offshore Less positive impact from Deferred Training revenue Partially offset by lower SG&A expenses as a percent of revenue FY26 YTD adjusted EBITDA margin has improved 50 bps to 13.0% $22.0 Q3 YoY Adjusted EBITDA and margin 13.8% Margin 13.4% Margin $22.0m $20.0 $19.4m $18.0 $16.0 $14.0 $12.0 Q3 FY25 Q3 FY26 Revefiue: Model Cliefit Diversific6tiofi 35% 54% Q3 FY26 Client Statistics (% of Revenue) Top 5 Clients (22% growth) Top 10 Clients (19% growth) 77% Top 25 Clients (16% growth) Largest Client 9% 70 clients > $1m annualized revenue; up ~20% YoY Wififiifig ifi Str6tegic Vertic6ls Maintaining Strong Diversification while Growing Organically Across Vertical Markets $45.0 $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 $36.3 $39.3 $22.2 $34.1 Revenue by vertical ($m) & % of Total revenue 20.8% 13.8% 9.7% 9.2% 8.6% 23.9% 25.8% 15.8% 14.0% 13.1% 13.0% 10.8% 7.5% $19.7 $18.5 $14.2 $15.2 $15.9 $18.2 $15.1 $10.6 14.0% Q3 FY25 Q3 FY26 $22.6 $23.2 Revenue increases by vertical HealthTech increased 53.7% YoY Technology increased 42.6% YoY Travel, Transportation & Logistics increased 15.1% YoY Retail & E-commerce increased 8.3% YoY FinTech increased 4.6% YoY Q3 FY2026: C6sh Flow 6fid C6pEx Net Cash Generated from Operations $11.9m Q3 FY26 $8.8m Q3 FY25 Capital Expenditures Q3 FY26: $5.3m, 3.2% of Revenue Q3 FY25: $5.3m, 3.7% of Revenue DSO 71 days Q3 FY26 Non-GAAP Free Cash Flow 73 days Q2 FY26 $6.6m Q3 FY26 77 days Q3 FY25 $3.6m Q3 FY25 M6rch 2026 B6l6fice Sheet Cash and Cash Equivalents $15.4m June 30, 2025, $15.4m Total Debt ~$1.4m June 30, 2025, $1.6m Repurchased approx. 140,000 shares for $4.5m at an average price of $32.43, bringing our fiscal year share repurchases to approx. 310,000 for $10.1m Maintaining strong Balance sheet Net Cash ~$14.0m June 30, 2025, $13.7m Full Ye6r 2026 Guid6fice FY26 $638-642m Up from $620-630m Revenue $82-84m Up from $80-82m Adj. EBITDA $25-30m Up from $20-25m CapEx . . Recoficili6tiofi of Net Ificome to Adjusted Net Ificome US$ in thousands, except per share Three months ended Twelve months ended 31-March 30-June amounts, unaudited 2026 2025 2025 2024 Net income $ 13,325 $ 10,469 $ 36,864 $ 33,655 Net income margin 8.1% 7.4% 6.6% 6.6% Severance Costs 814 - 558 1,621 Impairment losses - - 1,429 1,532 Warrant contra revenue - - - 1,183 Foreign currency (gains)/losses (913) 121 693 (1,815) Stock-based compensation expense 788 1,601 5,432 3,765 Total adjustments $ 689 $ 1,722 $ 8,112 $ 6,286 Tax impact of adjustments (437) (404) (1,975) (1,590) Adjusted net income $ 13,577 $ 11,787 $ 43,001 $ 38,351 Adjusted Net Income Margin 8.3% 8.4% 7.7% 7.5% Diluted earnings per share $ 0.89 $ 0.73 $ 2.36 $ 1.84 Per share impact of adj. to Net Income 0.02 0.09 0.39 0.26 Adj. earnings per share - diluted $ 0.91 $ 0.82 $ 2.75 $ 2.10 Weighted average diluted shares outstanding 14,994 14,404 15,725 18,255 17 Recoficili6tiofi of Net Ificome to Adjusted EBITDA Three months ended Twelve months ended 31-March 30-June US$ in thousands, unaudited 2026 2025 2025 2024 Net income $ 13,325 $ 10,469 $ 36,864 $ 33,655 Net income margin 8.1% 7.4% 6.6% 6.6% Interest expense 249 404 1,634 514 Income tax expense 2,644 2,488 9,068 7,331 Depreciation and amortization 5,170 4,329 17,232 19,461 EBITDA $ 21,388 $ 17,690 $ 64,798 $ 60,961 Severance Costs 814 - 558 1,621 Impairment losses - - 1,429 1,532 Interest Income (62) (32) (955) (2,071) Warrant contra revenue - - - 1,183 Foreign currency (gains)/losses (913) 121 693 (1,815) Stock-based compensation expense 788 1,601 5,432 3,765 Adjusted EBITDA $ 22,015 $ 19,380 $ 71,955 $ 65,176 Adjusted EBITDA Margin 13.4% 13.8% 12.9% 12.8% 18 Recent Industry Awards 2026 AI Excellence Award 2026, 2024, 2023 & 2022 Product of the Year Award 2026 & 2025 Excellence in Customer Experience 2026 America's Dream Employers 2026 & 2025 America's Most Admired Workplaces 2025 & 2024 Globee Technology Award for Wave iX 2025 & 2024 Business Award for Achievement in Technology Innovation 2025 & 2024 Excellence in Customer Service "Technology of the Year" 2025, 2024, 2023 & 2022 2025 Leader in Frost Radar for Customer Experience Management Customer Experience Innovation Award 2025 America's Greatest Workplaces for Inclusion/Diversity 2025 America's Best Employers for Women 2025 America's Greatest Workplaces for Professional Services 2025 America's Best Large Employers 2024 Golden Bridge Business and Innovation Awards for Business Services 2025 Top 10 Best Place to Work in Central America and Caribbean 2025 & 2024 American Business Awards for Innovation 2024, 2022, 2021, 2020 & 2019 Great Place to Work - ibex Nicaragua 2024 Ranked #10 in North America Top 100 Inspiring Workplaces 2024 Generative AI Product of the Year Award 2024, 2023 & 2022 Contact Center Technology Award 2025 Asia's Most Influential Companies 2024 Technology Excellence for Wave iX 2024 Ranked #2 in America's Best Employers for Tech Workers 2025 Gold Stevie® Award in the Achievement in Technology Innovation 2024 Top Customer Outsourcing Service Provider 2024 Best Employers for Diversity 2025 Product of the Year (Wave iX Translate and AI Virtual Agent) 2024 Technological Breakthrough of the Year - Artificial Intelligence 2024 Artificial Intelligence Excellence Award for Wave iX Attention : This is an excerpt of the original content. 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