IBEX: 3 Key Takeaways for Long-Term Investors
On its first quarter of fiscal year 2027 earnings call, held on Nov. 5, 2026, IBEX (IBEX +5.39%) announced a 16% revenue increase to an all-time quarterly record of $175.2 million. For long-term investors, the business process outsourcing (BPO) provider demonstrated that artificial intelligence tools accelerate revenue growth rather than disrupt its core operations. Three takeaways from management’s discussion stand out.
1. Artificial Intelligence Partnership Drives New Customer Wins
By pairing software from partner Sierra with human call center staff, IBEX accelerates customer experience (CX) service deployments to displace legacy competitors. That fast setup helped new client wins account for approximately 50% of revenue growth in the quarter.
Together, IBEX combines Sierra’s market-leading conversational AI technology with our best-in-class CX expertise, technology integration capabilities, and our deep analytics. This enables us to design and deploy scalable end-to-end AI-powered CX solutions for leading global brands in weeks, not months or years.
— Robert Dechant, Chief Executive Officer
2. High-Margin Delivery Regions Propel Record Earnings Growth
Offshore locations and health technology contracts lifted gross profit margin to 30.4%. Adjusted earnings per share (EPS) grew 21% to $1.10, while adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, rose 29% to $25.2 million.
Our first quarter results are the strongest in our history. They included all-time records across nearly every key operating metric, including revenue, net income, adjusted net income, adjusted EBITDA, EPS, and adjusted EPS.
— Taylor Greenwald, Chief Financial Officer
3. Existing Client Relationships Drive Market Share Expansion
Client revenue retention remained above 99%, allowing IBEX to capture a larger share of customer spending over time. Revenue from the company’s top 25 accounts grew 18% year over year as clients consolidated operations with top-performing partners.
During the quarter, we gained significant market share with our existing clients, driven by our stellar operational performance. Revenues from our top 5, top 10, and top 25 clients increased 14%, 13%, and 18%, respectively, year-over-year.
— Robert Dechant, Chief Executive Officer
Looking Ahead
Organic revenue growth is accelerating across key customer verticals. That momentum prompted management to raise full-year financial targets while expanding offshore delivery capacity and monitoring contract deployment timelines.
Looking ahead, this momentum gives us increased confidence in our outlook for fiscal year ’27 to continue to drive double-digit growth and year-over-year margin expansion. In response, we are raising both revenue and adjusted EBITDA guidance for the year.
— Taylor Greenwald, Chief Financial Officer
Deploying artificial intelligence tools alongside human support enables the company to win larger contracts from legacy competitors while deepening relationships with established accounts.
We are winning AI-led opportunities, traditional BPO opportunities, and increasingly, engagements that combine both. Our pipeline remains robust. AI deployments are accelerating and demand is growing among clients seeking an integrated solution that brings together AI agents and industry-leading human support.
— Robert Dechant, Chief Executive Officer
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