IBEX reports record Q4 revenue and sets 2027 growth targets

IBEX Limited reported record fourth-quarter revenue of $164.3 million, a 12% year-over-year increase, according to results shared with the market. This performance marks the company’s sixth consecutive quarter of double-digit top-line growth. For the full fiscal year 2026, total revenue rose 15.4% to $644.1 million, driven by new client acquisitions and expanded service footprints within existing accounts. Management attributed the results to IBEX’s positioning in the business process outsourcing sector and its ability to deepen relationships with key customers.

The company also announced full-year records for adjusted EBITDA, earnings per share, and operating cash flow. CFO Taylor Greenwald noted that revenue growth was broad-based, with technology services up 27% in the quarter and travel, transportation, and logistics up 18%. Digital and omnichannel services accounted for 82% of total revenue, growing 12% year over year. Offshore operations remained a major contributor, representing 50% of quarterly revenue, while onshore revenue increased by 15%.

Health tech leads vertical growth

Health tech emerged as the primary growth engine for IBEX in the latest period. Quarterly revenue in this vertical jumped 42% to $29.4 million, significantly outpacing the company-wide average. For the full fiscal year, health tech revenue increased 38% to $114 million, surpassing the company’s internal target of building a $100 million business by year-end. This vertical now represents a substantial portion of IBEX’s total revenue, reflecting strong demand for specialized healthcare support services.

Client retention and satisfaction metrics remained strong, with IBEX reporting retention rates above 99% for the fiscal year. The company added 17 new high-value client logos during the period, including nine in the fourth quarter alone. Revenue from the top five clients grew 24% annually, while the top 25 clients contributed 15% growth. Three Fortune 500 clients, all within IBEX’s top ten customer base, recognized the company as Partner of the Year. The client net promoter score stood at 71, indicating high levels of customer loyalty.

AI agents drive new revenue opportunities

IBEX is integrating AI agents into its service offerings, having formalized a partnership with Sierra AI in late January. The company currently has AI agent deployments with a double-digit number of clients across five industry verticals, including Philippine Airlines and BJ's Wholesale. Management emphasized that these AI tools are designed to expand revenue opportunities and support human agents rather than replace them. This strategy aims to enhance operational efficiency and offer clients more scalable solutions without compromising service quality.

The deployment of AI agents is part of IBEX’s broader effort to modernize its technology stack and meet evolving client demands. By leveraging these tools, IBEX seeks to maintain its competitive edge in the outsourcing market. The company’s approach focuses on augmenting human capabilities with artificial intelligence, allowing for faster response times and more personalized client interactions. This strategic move positions IBEX to capture new market segments while strengthening its existing relationships.

Fiscal 2027 outlook and capital allocation

Looking ahead, IBEX expects fiscal 2027 revenue to range between $700 million and $715 million. This represents a growth rate of 9% to 11% compared to the previous year. Adjusted EBITDA is projected to be between $90 million and $94 million, a 9% to 14% increase. The company’s cash flow strengthened throughout the year, allowing it to repurchase $14.4 million of its own stock. IBEX ended the fiscal year with $30.9 million in net cash, providing a solid financial foundation for future investments and operations.

The positive outlook reflects management’s confidence in IBEX’s growth trajectory and operational efficiency. The company plans to continue investing in technology and talent to support its expanding client base. With a strong balance sheet and consistent growth, IBEX is well-positioned to navigate market challenges and capitalize on emerging opportunities in the business process outsourcing industry. The focus remains on delivering value to clients while maintaining financial discipline and operational excellence.

Sustained growth driven by health tech and AI

The company has now recorded six straight quarters of double-digit revenue increases, a trend management attributes to strong performance in the health technology sector. This vertical emerged as a primary engine of expansion, with quarterly revenue surging 42% and full-year figures reaching $114 million, surpassing internal targets.

Simultaneously, IBEX is seeing initial traction from its AI agent deployments across multiple industry verticals. These early integrations are positioned to complement existing human-agent services, creating new revenue opportunities while maintaining high client retention rates that remained above 99% for the fiscal year.

Looking ahead, the firm projects its revenue growth will remain robust, forecasting a 9% to 11% increase for fiscal 2027. This outlook reflects confidence in its diversified client base and the continued scaling of its digital service offerings.