A：Ibex reported headline revenue growth of 14%, an adjusted EPS growth of 46% quarter over quarter, and highlighted double-digit organic revenue growth for the fourth consecutive period.

A：Ibex experienced significant wins in Healthtech and FinTech, with Healthtech growing rapidly since its launch in 2021 and on track to reach $100 million by the end of the fiscal year.

A：Ibex's expansion into India has contributed to its growth by providing services beyond traditional contact center services, including revenue cycle management and credentialing services, and by achieving organic growth with existing clients and new logo wins in the region.

A：In calendar year 2025, Ibex milestones included surpassing $600 million in revenue while growing 16% and generating $80 million of EBITDA with 13% margins.

A：The Ibex brand is strong, with world-class employee and client net promoter scores, indicating that the company's internal culture and external image are consistent and highly regarded.

A：The Wave IX AI solution has two dimensions: one involves creating successful AI solutions for clients leveraging business insights, AI technology partnerships, and a seamless end-to-end customer journey; the second dimension involves deploying AI internally to drive operations more efficiently and improve agent life cycle processes.

A：Ibex is defining the market for BPO 3.0 and is investing in talent and strategic partnerships to support growth, recently promoting its President of Ibex Digital and Deputy CFO Mike Darwin to the role of chief AI and Digital Officer.

A：Ibex is well positioned for success in the remainder of the fiscal year and beyond, with a structurally sound company, a market leading growth profile, expanding margins, strong cash flow generation, a growing roster of trophy clients, and a leadership position in the AI evolution of the space.

A：Jack Jones has been named the new chairman of Ibex. He has been an invaluable board member for nearly nine years, was one of the biggest buyers of BPO services, and was a key executive at Expert Global Solutions.

A：The company's record second quarter revenue was driven by growth in the high-margin Healthtech vertical (35.1%), Travel, Transportation, and Logistics (20.2%), and Retail and E-Commerce (17.2%) as well as strong performance by Digital Acquisition Services, partially offset by a decline in the smallest vertical, Telecommunications.

A：The revenue growth led to a second quarter net income increase to $12.2 million from $9.3 million in the prior year quarter, with an increase in fully diluted EPS to 83 cents from 57 cents, primarily driven by growth in higher-margin offshore regions and operating leverage.

A：The tax rate decreased to 19.1% from 20.2% in the prior year quarter, mainly due to changes in revenue mix across taxable jurisdictions and favorable discrete tax benefits. The company expects its effective tax rate before discrete items to remain consistent at 20% to 22% for the remaining fiscal year 2026.

A：The company's ongoing share repurchase program resulted in fewer diluted shares outstanding, which were 14.7 million versus 16.5 million in the prior year. This contributed to the growth in fully diluted EPS.

A：The company has achieved client diversification, with the second quarter's largest client accounting for 10% of revenue, and top 5, top 10, and top 25 client concentrations representing 39%, 57%, and 79% of overall revenue, respectively, indicating a well-diversified client portfolio.

A：Capital expenditures were $11.7 million or 7.1% of revenue, and free cash flow was an outflow of $5.1 million in the current quarter compared to an outflow of $3.2 million in the prior year quarter. The increase in capital expenditures and free cash flow outflow was attributed to higher investments in offshore expansion.

A：Net cash generated from operating activities for the second quarter was $6.6 million, an increase from $1.100 million in the prior year quarter, driven by increased revenues, profitability, and lower use of working capital.

A：The company raised its revenue guidance to a range of $620 to $630 million from the previous range of $605 to $620 million and its adjusted EBITDA guidance to a range of $80 to $82 million from the previous range of $78 to $81 million for the fiscal year. The company also expects higher capital expenditures at the upper end of its previous range of $20 to $25 million.

A：The company is performing well, evidenced by market turbulence around AI and new product offerings. The company's position in the industry is strengthening, which positively impacts both traditional business deals and operational execution. It enables the company to grow market share, with a 20% increase in top 10 clients, driven by outperforming competitors.

A：The company's approach to AI and AI agentic solutions is unique due to its leveraging of business insights and human expertise. They create a seamless end-to-end journey and an integrated supply chain, which increases efficiency and enhances the customer experience.

A：The change in business mix is making revenue patterns more favorable. There is a shift from telecom to healthcare, which is resulting in higher margins and better growth. The traditionally heavy December quarter in retail is seeing less impact, with sequential revenue patterns not showing the typical decline in Q3 and Q4. The company is experiencing a more consistent flow of revenue over the fourth quarter.

A：The decrease in year-over-year gross margins is primarily due to headwinds such as deferred training costs and investments in India, which are recognized in the period but associated with future revenue. The company is doing well in managing operating expenses, which have grown less than revenue. The trajectory of gross margins is positive in the long term due to growth in high-margin sectors like vertical markets, offshore geos, and services, as well as the addition of AI to these high-margin areas. However, the mentioned headwinds are temporarily impacting the company's financial performance.