[Management View]
IBEX reported strong Q1 2026 results with revenue of $151.2 million, up 16.5% YoY, driven by retail, e-commerce, health tech, and travel sectors. Adjusted EBITDA rose 24.9% to $19.5 million, and net income increased to $12 million. The company emphasized its strategic focus on AI integration and offshore expansion.

[Outlook]
IBEX raised its fiscal 2026 revenue guidance to $605-$620 million and adjusted EBITDA to $78-$81 million. The company plans to continue investing in AI capabilities and expanding in strategic markets.

[Financial Performance]
Revenue increased by 16.5% YoY to $151.2 million. Adjusted EBITDA grew 24.9% to $19.5 million. Net income rose to $12 million from $7.5 million YoY. Adjusted EPS increased by 74.1% to $0.90.

[Q&A Highlights]
Question 1: What impact has GenAI had on IBEX and the industry? How much revenue does it generate now, and what is the future outlook?
Answer: GenAI has been positive for IBEX, with the company leaning into AI more aggressively than competitors. AI is used internally to improve execution and externally for customer experiences. While AI is not yet significantly impacting revenue, it is expected to contribute to growth and margin expansion by late FY 2026 and into FY 2027.

Question 2: Why were gross margins down in Q1, and what is the outlook for the full year?
Answer: Gross margins were impacted by investments in India and training costs for new wins. Despite this, IBEX expects full-year EBITDA margins to improve due to operating leverage and future benefits from AI and offshore growth.

[Sentiment Analysis]
Analysts and management maintained a positive tone, highlighting strong performance and strategic investments in AI and offshore capabilities.

[Quarterly Comparison]
| Metric | Q1 2026 | Q1 2025 | YoY Change |
|-----------------------|---------------|---------------|--------------|
| Revenue | $151.2 million| $129.7 million| +16.5% |
| Adjusted EBITDA | $19.5 million | $15.6 million | +24.9% |
| Net Income | $12 million | $7.5 million | +60% |
| Adjusted EPS | $0.90 | $0.52 | +74.1% |
| Free Cash Flow | $8 million | $4.1 million | +95.1% |

[Risks and Concerns]
Potential risks include the impact of ongoing investments in AI and offshore regions, as well as the volatility in telecommunications revenue.

[Final Takeaway]
IBEX delivered a robust Q1 2026 performance, driven by strategic investments in AI and offshore expansion. The company raised its fiscal 2026 guidance, reflecting confidence in continued growth. While gross margins faced short-term pressures, long-term prospects remain strong with expected benefits from AI and operational efficiencies.