Operator: Welcome to the ibex Third Quarter FY 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] To note, there is an accompanying earnings presentation available on the ibex Investor Relations website at investors.ibex.co. I will now turn this conference over to Mr. Greg Bradbury, Investor Relations for ibex.
Greg Bradbury: Good afternoon, and thank you for joining us today. Before we begin, I want to remind you that matters discussed on today's call may include forward-looking statements related to our operating performance, financial goals and business outlook, which are based on management's current beliefs and assumptions. Please note that these forward-looking statements reflect our opinion as of the date of this call, and we undertake no obligation to revise this information as a result of new developments, which may occur. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause our results to differ materially from those expected and described today. For a more detailed description of our risk factors, please review our annual report on Form 10-K filed with the U.S. Securities and Exchange Commission on September 11, 2025, and any other risk factors we include in subsequent filings with the SEC. With that, I will now turn the call over to ibex's CEO, Bob Dechant.
Robert Dechant: Thanks, Greg. Good afternoon, and thank you all for joining us today as we discuss our third quarter results for fiscal 2026. I'm excited to report that our third quarter represented yet another period of outperformance where we again extended the separation between ourselves and the rest of the traditional BPO market. We delivered record revenue growth of 17% to $164.4 million, while adjusted EPS grew by 11% to $0.91. This was our fifth straight quarter of double digit revenue growth, seventh of our last 8 quarters of double digit growth in adjusted EBITDA and it was our eighth consecutive quarter of double digit GAAP and adjusted EPS growth, all done organically. Put together, we have a proven track record of delivering strong results and are confident in our momentum we have going into FY '27 and beyond. Our strong results were again anchored by our 2 key pillars of growth, driving new wins with key logos and market share gains with existing clients, driven by our continued ability to outperform the competition operationally. In fact, over the last 5 quarters, our growth within our top 10 clients, where we often compete against our multibillion-dollar competitors has averaged more than 25%. We also had 100% client retention for the quarter and revenue retention for the year of 99.9%. This is the flywheel we have created that continues to drive blistering growth for ibex. In the quarter, we won another new logo and have since added 3 additional significant wins in the first few weeks of April for a total of 11 year-to-date. These will set us up well for FY '27. Growth within our existing customers continues to be strong and broad-based, coming primarily across our strategic verticals. We continue to win big in our health tech vertical, where growth was nearly 54% and represented the high watermark for the quarter. This vertical has been a standout performer, growing rapidly since we launched it in 2021 and now will far exceed a $100 million business by the end of this fiscal year. This success demonstrates our ability to build and scale new verticals from the ground up and validates our ongoing investment in India as a high-growth market for our business now and in the future. The ibex brand today is stronger than it's ever been. Our employee and client Net Promoter Scores remain world-class and our focus on culture and operational excellence is reinforcing our position as a trusted partner and industry leader. And all this is before we factor in our landmark strategic partnership with Sierra ai that we formally announced earlier this week. Through this partnership, ibex will integrate Sierra's market-leading AI technology with our best-in-class CX expertise, tech integration and deep analytics to design and deploy scalable end-to-end AI-powered CX solutions. We believe we can stand up these solutions in weeks, not months or years. We are now uniquely positioned to provide a seamless solution that leverages the strengths of both leading AI and human-powered support. The volume and velocity of opportunities in just the first months since signing this partnership has been great, along with several decisive early wins. More to come on this in the near future. We believe this collaboration will be transformative for our business and set ibex up well for the future. Within that context of AI's impact on our industry, I'd like to take some time to share our thoughts on the current state of the market and ibex's place in it. Today, there is a pervasive view that with the advent of generative AI, a lot of traditional call center work will be replaced by AI. The belief is that the size of the call center industry and volume of interactions handled by human agents will shrink over time. And as a result, the BPO volumes will shrink as well. This is the perceived threat that is front and center in our industry and for labor arbitrage only driven businesses, what I call BPO 1.0. I honestly believe this perceived threat is real and represents a big challenge for their businesses. However, for differentiated providers like ibex that are leaning into Agentic AI, this instead is an opportunity. Let me explain. Clients today are looking for partners that are more than labor arbitrage, ones that bring culture, technology and business insights to create a great experience for their customers. I call this BPO 2.0. They continue to rapidly move away from their legacy BPO 1.0 vendors, shifting from bigger to better in the decision-making process. This plays well for BPOs that are faster, more flexible and differentiated. For ibex, our land and expand flywheel, where we win trophy new clients and then take significant market share from the competition has enabled us to post record results over many consecutive quarters and established ibex as the best BPO in the industry. And we have done this as many of our clients are currently deploying Agentic AI. In fact, one of our larger clients began deploying an AI agent solution last summer. Within 6 months, their call volumes decreased by 20% due to the containments of the AI solution. Yet over the same time, we have been able to continue to grow our overall business at 17%, while revenues with this client hold strong as we continue to take market share away from underperforming competitors. And now that we have established our partnership with Sierra, we have the opportunity to deliver on that solution ourselves capitalizing on our deep understanding of the customer journeys and strong client partnerships. We believe these solutions will be accretive to our business as we add on the AI volumes on top of our BPO business and create another vector for highly profitable revenue growth. In summary, I am confident that this industry is extremely viable if you are a strong differentiated BPO with the ability to deliver a great Agentic AI solution. And I am even more confident in ibex and our ability to lead this transformation in the BPO industry. And now as I look forward, adding this powerful new arrow to our quiver uniquely enables us to provide a truly seamless customer experience from AI agent to human agent. This significantly widens and deepens our already compelling competitive moat and supercharges our already powerful business and defines our leadership position in BPO 3.0. That is the importance of this announcement to our business. To this point, our AI agent solution is seeing early and fast wins. We are winning opportunities versus other AI technology companies, SaaS companies and BPO competitors, beating them across the board in terms of deal wins, speed to deployment and successful containment and resolution. As an example, in one of our early wins with a leading airline, we competed against all 3 competitor types and easily outperformed the various competitors in a bake-off having our deployment with Sierra in place and delivering results far exceeding the targeted benchmarks before our competitors could even go live. And we did this solution in 3 languages. As a result, we have now been awarded all the business. We are also seeing exciting traditional BPO opportunities coming to us as a result of our Sierra partnership. As an example, we recently were introduced to a leading luxury activewear brand, looking for the right partner to help them scale human agent support to complement their great AI solution as their brand experiences hyper growth. And within 30 days, we signed and launched this new client in April. Our ability to respond and execute with speed and experience and as I like to say, moving at the speed of AI is setting ibex apart. Additionally, it is clear that AI is raising the bar for exceptional human agent customer support, which plays very well into our strengths. We are excited with the velocity of our AI pipeline. In summary, we are confident in our ability to outperform the BPO industry. But more importantly, we will continue to define and lead the new era of BPO 3.0 as we aim to make ourselves even more valuable and essential to our existing and new clients. I am proud of our team's execution quarter-over-quarter and remain more optimistic than ever about our future. With that, I will now turn the call over to Taylor to go into more detail on our fiscal third quarter financial results and guidance. Taylor?
Taylor Greenwald: Thank you, Bob, and good afternoon, everyone. Thank you for joining the call today. In my discussion of our third quarter fiscal year 2026 financial results, references to revenue, net income and net cash generated from operations are on a U.S. GAAP basis, while adjusted net income, adjusted earnings per share, adjusted EBITDA and free cash flow are on a non-GAAP basis. Reconciliations of our U.S. GAAP to non-GAAP measures are included in the tables attached to our earnings press release. Turning to our results. Our third quarter results are once again among the strongest in our history with record revenue, adjusted EBITDA, EPS and adjusted EPS. As Bob mentioned, this was our fifth consecutive quarter of double digit revenue growth. It was our seventh in our last 8 quarters of double digit adjusted EBITDA growth and it was our eighth consecutive quarter of double digit GAAP and adjusted EPS growth. Our differentiated solutions and execution are clearly separating us from the pack. Third quarter revenue was $164.4 million, an increase of 16.8% from $140.7 million in the prior year quarter. Revenue growth was driven predominantly by broad-based growth in our high-margin HealthTech vertical of 53.7%, technology vertical of 42.6%, travel, transportation and logistics of 15.1% and retail and e-commerce of 8.3%, along with continued growth in our digital acquisition business, partially offset by an expected decline in telecommunications, one of our smallest verticals at 23.1%. We continue to win and grow in all geographic markets during the quarter. Our onshore region grew 36.8% compared to the prior year quarter, driven by growth of our high-margin digital acquisition business and several clients in our higher-margin HealthTech vertical. Our highest margin offshore revenues grew 13.9% and our nearshore locations grew 3.7%. Offshore revenue comprises 50% of total revenue, as onshore revenue expanded to 27.9% of total revenue from 23.8% in the prior year quarter, reflective of the growth in our digital acquisition services and onshore HealthTech delivery. Our higher-margin digital and omnichannel services continue to strengthen, growing 18% versus the prior year quarter to 82% of our total revenue. We have structurally built ibex so that our growth vectors are our highest margin regions, services and vertical markets and we expect that we will continue to be successful driving growth in these higher-margin areas as new client wins and growth in our embedded base continue to be focused in these areas. Third quarter net income increased to $13.3 million compared to $10.5 million in the prior year quarter. The increase was primarily driven by the continued revenue growth and operating leverage gained from SG&A expenses as they decreased from 19.2% to 16.7% of revenue, partially offset by $800,000 of severance expense. The severance expense was incurred as one of our clients shifted their volumes from our nearshore to higher-margin offshore region. In the shift, we were able to pick up moderate market share. We expect an additional asset impairment charge related to this move in the fourth quarter as we adjust capacity. Our tax rate was 16.6% versus 19.2% in the prior year quarter, primarily attributable to changes in revenue mix across our taxable jurisdictions and favorable discrete tax benefits in the current year quarter. We expect our effective tax rate before discrete items for the fourth quarter to be approximately 19%. Fully diluted EPS was $0.89, up 22% from $0.73 in the prior year quarter. Contributing to the EPS growth was the impact from strong operating performance. Our weighted average diluted shares outstanding for the quarter were 15 million shares versus 14.4 million 1 year ago. Moving to non-GAAP measures. Adjusted EBITDA increased to a record of $22 million or 13.4% of revenue from $19.4 million or 13.8% of revenue for the same period last year. The 40 basis point decline in adjusted EBITDA margin was primarily driven by the temporary impact of the work shifting from nearshore to offshore and a less positive impact from deferred training revenue, partially offset by lower SG&A expenses as a percent of revenue compared to the same quarter in the prior year. It's worth noting that for the first 9 months of fiscal year 2026, our adjusted EBITDA margin is up 50 basis points to 13%. Adjusted net income increased to $13.6 million from $11.8 million in the prior year quarter. Non-GAAP fully diluted adjusted earnings per share increased 11% to $0.91 from $0.82 in the prior year quarter. As a company, we are pleased with the client diversification we have established over the last several years. For the third quarter of fiscal year 2026, our largest client accounted for 9% of revenue and our top 5, top 10 and top 25 clients, where we see many of our largest competitors grew 22%, 19.3% and 15.8%, demonstrating our ability to win market share. The concentrations for these same cohorts represented 35%, 54% and 77% of overall revenue, respectively, as compared to 38%, 54% and 80% of the overall revenue in the prior year quarter, representative of a well-diversified client portfolio. Over the past decade, we have done a tremendous job of not only retaining our top 25 clients, but also winning and growing new strategic clients. Two great examples of this are one of our signature client wins from fiscal year '25 growing into a top 20 client and one of our signature client wins for fiscal year '24 growing into a top 10 client. Another signal of our ability to win and scale clients is the growth we continue to see in clients averaging more than $1 million per annum in revenue, the count of which has grown nearly 20% from the prior year quarter to 70 clients in the third quarter. Switching to our verticals, HealthTech grew 54% and increased to 20.8% of the third quarter revenue versus 15.8% in the prior year quarter. Technology grew 43% and increased to 9.2% compared to 7.5% and our other vertical increased 27% to 14% of total revenue compared to 13% in the prior year quarter. These increases were driven by continued growth in multiple offshore geographies and our continued ability to win significant new clients in these verticals. Conversely, our exposure to the lower-margin telecommunications vertical decreased to 8.6% of revenue for the quarter versus 13.1% in the prior year quarter as we see lower volume from legacy carriers. Revenues from the fintech vertical were up 5% and represented 9.7% of revenue for the quarter versus 10.8% in the prior year quarter and revenues from retail and e-commerce grew 8.3%, represented 23.9% of revenue versus 25.8% in the prior year. Travel, transportation and logistics grew 15% and stayed relatively constant at 13.8% of revenue. Moving to cash flow. Net cash generated from operating activities was a strong $11.9 million for the third quarter of fiscal year 2026 compared to $8.8 million for the prior year quarter. The increase was primarily driven by increased revenue and profitability. Our DSOs were 71 days, down from 73 days at the end of the second quarter, which is consistent with our expectations. We expect our DSOs to remain stable in the low to mid-70s on a go-forward basis. Capital expenditures were $5.3 million or 3.2% of revenue for the third quarter of fiscal year 2026, consistent with the prior year quarter. Free cash flow was an inflow of $6.6 million in the current quarter compared to an inflow of $3.6 million in the prior year quarter, driven by the increase in net cash generated from operating activities. During the quarter, we repurchased approximately 140,000 shares for $4.5 million, bringing our fiscal year share repurchase to 310,000 shares for $10.1 million and leaving $3.2 million on our share repurchase authorization. We ended the third quarter with $15.4 million of cash and debt of $1.4 million for a net cash of $14 million, consistent with a net cash position of $13.7 million at the end of our last fiscal year. Our strong financial results in fiscal year 2026 are being driven by our differentiated strategy and sustainable growth trends with our clients, giving us confidence in continued outperformance heading into fiscal year 2027. Our third quarter revenue was again led by meaningful growth in our higher-margin services and vertical markets, particularly a robust growth in HealthTech. This combination of drivers led to a record quarterly adjusted EBITDA of $22 million. As we head into the fourth quarter, our healthy balance sheet and cash flows are enabling us to make thoughtful investments to support increased capacity for anticipated growth as well as further extend our current AI leadership position. Reflective of our outstanding performance thus far and our forward momentum, we are again raising our revenue and adjusted EBITDA guidance for the year. Revenue is now expected to be in the range of $638 million to $642 million, up from $620 million to $630 million. Adjusted EBITDA is now expected to be in the range of $82 million to $84 million, up from $80 million to $82 million. Capital expenditures are now expected to be in the range of $25 million to $30 million, up from our previous range of $20 million to $25 million as a result of ongoing investment to meet increased demand in higher-margin regions. Our business is well positioned for today and for the years ahead and we're excited about the future of ibex as we head into the fourth quarter of fiscal year 2026 and beyond. With that, Bob and I will now take questions. Operator, please open the line.
Operator: [Operator Instructions] Our first question comes from Dave Koning with Baird.
David Koning: Congrats on another good quarter.
Robert Dechant: Thanks, Dave. Yes, we're very proud of what we continue to do.
David Koning: Yes, for sure. Well, I wanted to kick off just the new AI partnership. Two questions around that. One is model. And then secondly, around that, how do you decide whether to use some of your AI solutions for their AI solutions? And does this cannibalize some of your stuff? Or kind of how does that all work?
Robert Dechant: Sure, Dave. And I will -- let me repeat what I think I heard you say because you were a little bit garbled, at least from my end. The question was really around with the Sierra, how does that impact or versus the stuff that we've built ourselves. And I think it's very easy to describe that. The elements that we've built in the Wave iX stack are in our internally focused business, things that can help our agents do their jobs better, things like training simulators for agents, things like agent assist, something at their side that they can use that's AI to help them resolve a complex issue quicker. Those are the elements that we have built internally. As it relates to AI agents, our philosophy was there's no way we could compete against the best-in-class out there that are creating that engine. So for us trying to build that, we would have fallen flat on our face in front of every CTO in the industry. And we, therefore, believe that we wanted to partner with the leading player in the industry. Sierra is clearly that leader, cut above. And from their standpoint, when they looked at us, they said, "Look, what you guys are doing, how you've leaned in, you guys are a cut above." And so really aligned very, very well with the 2 companies' visions, philosophies and positions in the industry. And so to your point, it does not impact at all. In fact, this gives us now the best-in-class engine with the best-in-class BPO.
David Koning: Yes. Okay. And I also asked about the economic model. How does that -- how does the [ rev ] share work on that?
Robert Dechant: Sure. So the contracts that we're going to be doing are going to be ibex contracts that we will be billing our clients on that. And then the -- our teams will be working building the implementations, et cetera. And then we will then -- we have an arrangement with Sierra that those costs -- we've negotiated a cost structure for those resolutions and all. And with the combination of the 2, Dave, we believe it's very accretive to BPO margins. And just directionally, our BPO margins are in the 30% gross margin range. These are technology/software margins, which, as you know, are significantly higher. And so we feel that this is a high-growth vector for us that will drive significant margin expansion for us when you put all that into the equation. Now I think your last part of your question, Dave, if I got it right, was, hey, how do you see this cannibalizing your business? And look, we're leaning into that. We're leaning into that. We've been -- our clients have been -- are moving in AI and we're growing our business at the highest of anybody in the industry, as you can see. And that's been many quarters. And we've been able to do that because of the flywheel, winning new clients and then taking market share from those clients. This accelerates that because it validates us as a cut above, as a differentiated player. As I mentioned on my remarks, they brought us opportunities that we've closed in AI speed, not BPO speed. And so we think that on whole, this is going to accelerate our overall growth business. It will cannibalize some of our business that we have as human volume gets displaced by AI. But if we have that solution in place, I can guarantee you that the models say that it will be accretive for revenue. And having the AI solution and the revenues associated to that, plus what we have on the BPO side, on the human side, add those 2 together, it will be a growth vector for us. And so one of the real advantages of being fast, nimble, leaned in and where all of this is opportunity for us.
David Koning: Yes. Great. Maybe if I can just do one more. On health, 54% growth. How much of that was new clients? How much of that is just existing clients growing? And is there any lumpy revenue, like not unsustainable revenue in Q3 because it was so strong?
Robert Dechant: Yes. Great question, Dave. And so over the last 2 years, we've brought in 6 new logos on the health care space that are meaningful new logos, players that are leaders in their respective spaces. It's a combination of that. And then we have a couple of the, in particular, the largest payer in the world and we've just been taking a whole lot of market share. So our 54% growth is an and. We're taking market share where clients have massive budgets north of $600 million. And then we are winning a lot of very competitive new logos that we're winning that's driving that growth. And what's interesting is some of that is landing in the U.S. And I will just call out the beauty of that is -- and Dave, you've been with us forever. You know that our U.S. business has, over the years, been a low-margin business where the majority of our margins remain outside the U.S. Over the last couple of years with our play in health care, we have done a complete transformation of the U.S. market. And so now you can see it's actually not at a trough. It's growing and growing well, but it's growing profitably because we've just taken what I would call legacy old telcos where nobody ever makes money on them and we've replaced them with leading health care companies, an amazing shift that we've done that is -- you can see that in the results on top line and bottom line results.
Taylor Greenwald: And Bob, just to follow up on Dave's question too. None of that revenue was onetime in nature, Dave. It's all sustainable and this is the new run rate for health care.
Robert Dechant: Yes, Dave, and to that point, what Taylor just said is if you look at how our business flows now, historically, if you go back 5 years ago, Q2 for us, our Q2, the December quarter was always a big increase and then our revenues came down, would come down hard as a result of the retail and some of the open enrollment, let's say, for health care in the early days of that. Today, if you look the last couple of years, we've been very smooth from Q2 to Q3 and beyond. And that's how we've -- our business is structurally built that way. And so to Taylor's point, there's no real Q3 or Q2 kind of onetime bumps that -- or Q3 onetime bumps that are going to go down. It is sustainable and repeatable.
Operator: I would now like to turn the call back over to Bob Dechant for any closing remarks.
Robert Dechant: Thanks, Josh, and thank you all for listening today. I'd like to close by once again just thanking my entire organization who is the best in the industry. They continue to deliver and execute. And we built this amazing flywheel here and we love the trajectory of our business in the future. And now with our Sierra announcement, we believe our business is extremely future-proofed and will be strong over the long haul. So thank you all. Look forward to talking next quarter.
Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.