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Date

Wednesday, May 6, 2026 at 4:30 p.m. ET

Call participants

  • Chief Executive Officer — Bob Dechant
  • Chief Financial Officer — Taylor Greenwald
  • Operator — [No full name provided]

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Risks

  • CFO Greenwald stated, "We expect an additional asset impairment charge related to this move in the fourth quarter as we adjust capacity," signaling a pending expense.
  • The telecommunications vertical declined 23.1%, and exposure dropped to 8.6% of revenue, "as we see lower volume from legacy carriers," suggesting sustained segment contraction.
  • CEO Dechant said, "It will cannibalize some of our business as human volume gets displaced by AI," acknowledging direct risk of substitution, although the company expects net accretive impact through market share gains and AI revenues.

Takeaways

  • Revenue -- $164.4 million, up 16.8% year over year, marking the fifth consecutive quarter of double-digit revenue growth.
  • Adjusted earnings per share (EPS) -- $0.91, increasing 11% year over year, with GAAP EPS at $0.89, up 22%.
  • Adjusted EBITDA -- $22 million or 13.4% of revenue, rising from $19.4 million (13.8% margin) the previous year, primarily due to higher growth in health tech and digital services.
  • HealthTech vertical growth -- 53.7% year over year, driving segment revenue to 20.8% of total, compared to 15.8% last year.
  • Technology vertical growth -- 42.6%, moving to 9.2% of revenue from 7.5% in the prior-year quarter.
  • Travel, transportation, and logistics vertical growth -- 15.1%, representing 13.8% of revenue.
  • Retail and ecommerce vertical growth -- 8.3%, now comprising 23.9% of total revenue.
  • Telecommunications vertical decline -- Down 23.1%, now at 8.6% of revenue, compared to 13.1% one year ago.
  • Onshore revenue growth -- 36.8%, increasing share to 27.9% of total revenue from 23.8% last year, reflecting success in digital acquisition and health tech delivery.
  • Offshore revenue growth -- 13.9%, with offshore representing 50% of total revenue, the highest-margin region.
  • Nearshore revenue growth -- 3.7%, partially affected by client volume shifts.
  • Digital and omnichannel services -- 18% growth, now accounting for 82% of total revenue.
  • Net income -- $13.3 million, up from $10.5 million, with operating leverage from SG&A reduction (19.2% to 16.7% of revenue), offset by $0.8 million in severance costs.
  • Client diversification -- Largest client represents 9% of revenue, with top five, top ten, and top 25 clients growing 22%, 19.3%, and 15.8%, respectively.
  • Clients exceeding $1 million -- Client count grew nearly 20% to 70, indicating successful execution in scaling meaningful client relationships.
  • Net cash from operations -- $11.9 million, up from $8.8 million last year, reflecting improved operating performance.
  • Free cash flow -- $6.6 million inflow, compared to $3.6 million prior year, driven by increased profitability and working capital discipline.
  • Days sales outstanding (DSO) -- 71 days, down from 73 last quarter, with expectations to remain stable in the low-to-mid-70s range.
  • Capital expenditures -- $5.3 million or 3.2% of revenue, consistent with the prior-year quarter.
  • Share repurchases -- 0.14 million shares bought back in the quarter for $4.5 million; $3.2 million remains under the current authorization.
  • Cash and debt position -- $15.4 million in cash, $1.4 million in debt, for net cash of $14 million, nearly flat versus last year.
  • Full-year revenue guidance raised -- Projected range increased to $638 million-$642 million, up from $620 million-$630 million, reflecting "forward momentum."
  • Full-year adjusted EBITDA guidance raised -- Now expected at $82 million-$84 million versus prior $80 million-$82 million, indicating confidence in margin trends.
  • Full-year capital expenditure guidance raised -- Now projected between $25 million-$30 million (up from $20 million-$25 million), due to "ongoing investment to meet increased demand in higher-margin regions."
  • Client retention -- 100% retention for the quarter, and revenue retention for the year of 99.9%, highlighting portfolio stability.
  • New client wins -- 11 new logos added year to date, supported by three significant wins since the beginning of April.
  • Sierra AI partnership -- The recently announced strategic partnership aims to integrate Sierra’s AI technology into IBEX Limited (IBEX 0.85%)'s CX offerings, with early results described as "transformative" and "accretive to BPO margins."
  • AI revenue model -- CEO Dechant said, "The contracts that we are going to be doing are going to be IBEX Limited contracts that we will be billing our clients on...We believe it is very accretive to BPO margins," highlighting expectation of technology/software-level margins from new AI-led solutions.
  • HealthTech revenue quality -- CFO Greenwald confirmed, "none of that revenue was one time in nature...it is all sustainable, and this is the new run rate for health care."

Summary

IBEX Limited reported record revenue and profitability, driven by significant growth in health tech, technology, and digital service lines, alongside disciplined cost management and increased scale across key client segments. Management raised full-year guidance for both revenue and adjusted EBITDA, citing expanding new client wins and the early impact of the Sierra AI partnership, which is positioned to enhance margin structure. The company reported sustained client and revenue retention at near-perfect levels, while confirming recent growth trends are structural and sustainable. Strategic investments in AI and capacity expansion are set to support anticipated demand, despite planned asset impairments and ongoing vertical shifts within the portfolio.

  • Management cited average growth of more than 25% in the top 10 client cohort over the last five quarters, highlighting sharp execution against large-scale competitors.
  • CEO Dechant described the Sierra AI integration as providing margin expansion potential, stating, "These are technology/software margins, which, as you know, are significantly higher," and forecasted that the AI partnership would "accelerate our overall growth business."
  • The company demonstrated resilience to AI-driven volume reductions at key clients, noting one large client reduced call volume by 20% within six months after deploying an AI agent, while IBEX Limited continued to grow 17% overall and maintain revenue with that client by taking market share.
  • Early competitive wins, including deployments in multiple languages and rapid go-live times, were highlighted as validation of IBEX Limited's positioning in "BPO 3.0."
  • There were no disclosed one-time health tech revenue benefits, with management emphasizing a consistent and repeatable earnings trajectory.

Industry glossary

  • BPO: Business process outsourcing, the contracting of non-primary business activities and functions to a third-party provider.
  • DSO: Days sales outstanding, a measure of the average number of days it takes to collect payment after a sale has been made.
  • Omnichannel: A multichannel approach to customer service, integrating various digital and traditional communication methods into a unified experience.
  • AI containment: The degree to which AI agents successfully resolve customer inquiries without human intervention, reducing volume routed to human agents.
  • Agentic AI: Artificial intelligence that can perform tasks autonomously, simulating the work of human agents in customer experience processes.

Full Conference Call Transcript

Bob Dechant: Thanks, Greg. Good afternoon, and thank you all for joining us today as we discuss our third quarter results for fiscal 2026. I am 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 eight 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 the momentum we have going into FY 2027 and beyond. Our strong results were again anchored by our two 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 five 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 Limited. In the quarter, we won another new logo and have since added three 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 2027. 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 care 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 $100 million 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 Limited brand today is stronger than it has 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 Limited 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 Limited up well for the future. Within that context of AI’s impact on our industry, I would like to take some time to share our thoughts on the current state of the market and IBEX Limited’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, 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 Limited 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 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 Limited, 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 establish IBEX Limited 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 six 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, differentiating BPO with the ability to deliver a great agentic AI solution. And I am even more confident in IBEX Limited 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, leading 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 three 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 three 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 hypergrowth, 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 Limited 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 through 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 discussions 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—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 eight 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 health tech vertical of 53.7%, technology vertical of 42.6%, travel, transportation, and logistics of 15.1%, and retail and ecommerce 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 continued 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 health tech 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 health tech 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 Limited 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 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 $0.8 million 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, with the increase driven by strong operating performance. Our weighted average diluted shares outstanding for the quarter were 15 million shares, versus 14.4 million one 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 is worth noting for the first nine 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 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 2026, our largest client accounted for 9% of revenue, and our top five, 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. Concentrations for these same cohorts represented [inaudible] of overall revenue, respectively, as compared to [inaudible] of 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 2025 growing into a top 20 client, and one of our signature client wins from fiscal year 2024 growing into a top 10 client. Another signal of our ability to win and scale clients is the growth we continue to see in client counts 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 third quarter revenue versus 15.8% in the prior-year quarter.

Technology grew 43%, an increase 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 ecommerce grew 8.3% to 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 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 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 0.14 million shares for $4.5 million, bringing our fiscal year share repurchase to 0.31 million shares for $10.1 million, 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 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 robust growth in health tech. 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 to $642 million, up from $620 to $630 million. Adjusted EBITDA is now expected to be in the range of $82 to $84 million, up from $80 to $82 million.

Capital expenditures are now expected to be in the range of $25 to $30 million, up from our previous range of $20 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. We are excited about the future of IBEX Limited as we head into 2026 and beyond. With that, Bob and I will now take questions. Operator, please open the line. We will now open the call for questions.

Operator: Please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again. One moment for questions. Our first question comes from David Koning with Baird. You may proceed.

David Koning: Yes. Hey, guys. Congrats on another good quarter.

Bob Dechant: Thanks, Dave. Yes, we are very proud of what we continue to do.

David Koning: Yes, for sure. I wanted to kick it off with the new AI partnership. I had two questions around that. One is model, and then secondly, how do you decide whether to use some of your AI solutions or their AI solutions? And does this cannibalize some of your stuff? How does that all work?

Bob Dechant: Sure, Dave. Let me repeat what I think I heard you say, because you were a little bit garbled from my end. The question was really around, with Sierra, how does that impact versus the stuff that we have built ourselves? I think it is very easy to describe that. The elements that we have 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 is 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 is no way we could compete against the best in class out there that are creating that engine. 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 believed that we wanted to partner with the leading player in the industry. Sierra is clearly that leader, a cut above. From their standpoint, when they looked at us, they said, “What you are doing, how you have leaned in, you are a cut above.” So it really aligned very well with the two companies’ visions, philosophies, and positions in the industry.

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 the rev share work on that?

Bob Dechant: Sure. The contracts that we are going to be doing are going to be IBEX Limited contracts that we will be billing our clients on, and then our teams will be working, building the implementation, etc. We have an arrangement with Sierra that we have negotiated a cost structure for those resolutions and all. With the combination of the two, we believe it is very accretive to BPO margins and, directionally, our BPO margins are in the 30% gross margin range. These are technology/software margins, which, as you know, are significantly higher. We feel 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 how do you see this cannibalizing your business? Look, we are leaning into that. Our clients are moving at AI, and we are growing our business the highest of anybody in the industry, as you can see, and that has been many quarters. We have 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 in my remarks, they brought us opportunities that we have closed in AI speed, not BPO speed.

We think that on the whole, this is going to accelerate our overall growth business. It will cannibalize some of our business as human volume gets displaced by AI, but if we have that solution in place, I can guarantee you that the model says it will be accretive for revenue. Having the AI solution and the revenues associated with that, plus what we have on the BPO side—the human side—add those together, it will be a growth factor for us. One of the real advantages is being fast, nimble, leaned in, where all of this is opportunity for us.

David Koning: Yes, great. Maybe if I can just do one more. The 54% growth—how much of that was new clients? How much of that is existing clients growing? And is there any lumpy revenue, like unsustainable revenue, in Q3 because it was so strong?

Bob Dechant: Great question, Dave. Over the last two years, we have brought in six new logos in the health care space that are meaningful new logos—players that are leaders in their respective spaces. It is a combination of that, and then we have a couple of, in particular, the largest payer in the world, and we have been taking a whole lot of market share. So our 54% growth is a combination: we are taking market share where clients have massive budgets north of $600 million, and we are winning a lot of very competitive new logos that are driving that growth.

What is interesting is some of that is landing in the U.S., and I will just call out the beauty of that. Dave, you have 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 were made 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. Now you can see it is actually not at a trough; it is growing, and growing well.

It is growing profitably because we have taken what I would call legacy old telcos—where nobody ever makes money on them—and we have replaced them with leading health care companies. An amazing shift that we have done that you can see 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 one time in nature, Dave. It is all sustainable, and this is the new run rate for health care.

David Koning: Awesome. Thanks, guys. Good job.

Bob Dechant: Yes, David. To that point, what Taylor just said is if you look at how our business flows now—historically, go back five years ago—our Q2, December, was always a big increase, and then our revenues would come down hard as a result of retail and some of the open enrollment in the early days of health care. Today, if you look at the last couple of years, we have been very smooth from Q2 to Q3 and beyond. That is how our business is structurally built now. To Taylor’s point, there are no real Q2 or Q3 one-time bumps that go down. It is sustainable and repeatable.

David Koning: Gotcha. Well, thanks, guys. Good job.

Bob Dechant: Thanks, Dave.

Taylor Greenwald: Thanks, Dave. Thank you.

Operator: I would now like to turn the call back over to Bob Dechant for any closing remarks.

Bob Dechant: Thanks, Josh. And thank you all for listening today. I would like to close by once again thanking my entire organization, who is the best in the industry. They continue to deliver and execute, and we have built this amazing flywheel here. We love the trajectory of our business in the future. Now with our Sierra announcement, we believe our business is extremely future-proofed and will be strong over the long haul. Thank you all. We look forward to talking next quarter.

Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.