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DATE

Thursday, Sept. 10, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

  • Investor Relations - Greg Bradbury
  • Chief Executive Officer - Robert T. Dechant
  • Chief Financial Officer - Taylor C. Greenwald

TAKEAWAYS

  • Full-Year Revenue -- $644.1 million for fiscal year 2026, representing 15.4% organic growth driven by expansion in the HealthTech and technology verticals.
  • Fourth Quarter Revenue -- $164.3 million, a 11.6% increase versus the prior year quarter, marking the company's sixth consecutive quarter of double-digit growth.
  • Full-Year Adjusted EBITDA -- $82.4 million, a record for the company and a 14.5% increase compared to $72.0 million in fiscal year 2025.
  • HealthTech Vertical Revenue -- $114 million for the full year, a 38.5% increase that exceeded the company's $100 million target due to strong performance with large insurance payers.
  • Technology Vertical Growth -- 27.4% revenue growth in the fourth quarter, reflecting new client wins and expansion within the existing customer base.
  • Travel, Transportation, and Logistics Growth -- 17.8% revenue growth in the fourth quarter, supported by new implementations such as the AI agent partnership with Philippine Airlines.
  • Retail and E-Commerce Growth -- 7.0% revenue growth in the fourth quarter, driven by market share gains and demand for services in low-cost markets.
  • Fiscal Year 2027 Revenue Guidance -- $700 million to $715 million, representing expected growth of 9% to 11% driven by a strong new logo pipeline.
  • Fiscal Year 2027 Adjusted EBITDA Guidance -- $90 million to $94 million, representing expected growth of 9% to 14%.
  • First Quarter 2027 Guidance -- $168 million to $170 million in revenue, representing 11% to 12% growth, and $22 million to $23 million in adjusted EBITDA.
  • Capital Expenditures -- $27.8 million for fiscal year 2026, up from $18.4 million in the prior year, to support offshore capacity expansions and IT infrastructure.
  • Operating Cash Flow -- $59.0 million for the full year, an increase from $45.7 million in fiscal year 2025 due to higher revenue and profitability.
  • Free Cash Flow -- $31.2 million for fiscal year 2026, a record level achieved despite the planned increase in capital expenditures.
  • New Logo Wins -- Nine new trophy logos added in the fourth quarter, bringing the annual total to 17 wins across multiple geographies and verticals.
  • Onshore Region Revenue -- 15% growth in the fourth quarter, increasing to 28% of total revenue from 27% in the prior year quarter.
  • Offshore Region Revenue -- 14% growth in the fourth quarter, now representing 50% of total revenue as clients seek higher-margin delivery centers.
  • Share Repurchases -- $14.4 million utilized to repurchase 453,000 shares at an average price of $31.70 during fiscal year 2026.
  • Digital and Omnichannel Services -- 82% of total revenue in the fourth quarter, reflecting a 12% growth rate as the company scales its AI-enabled solutions.
  • Employee Net Promoter Score -- 82 for the year, an increase from 77 in the prior year, with a 95% participation rate among staff.
  • Fiscal Year 2027 Tax Rate Outlook -- 20% to 22% expected normalized rate, following a lower 10% rate in the fourth quarter due to discrete tax items.
  • Days Sales Outstanding -- 69 days at quarter end, an improvement from 72 days at the end of the prior fiscal year.
  • Client Diversification -- Top five clients represented 33% of revenue in the fourth quarter, down from 36% in the prior year quarter.
  • Net Cash Position -- $30.9 million at the end of the fourth quarter, representing a $17.2 million improvement compared to the end of fiscal year 2025.

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RISKS

  • Greenwald stated, "Results were primarily driven by training expenses related to the many new client wins in the quarter and a temporary impact of work transferring from nearshore to offshore delivery centers as well as the impact of higher fuel prices on utility and transportation expenses particularly in our offshore region," highlighting the factors that lowered quarterly net income.
  • Management indicated that exposure to the lower-margin telecommunications vertical decreased to 9.4% of revenue from 10.9% in the prior year quarter, reflecting lower volumes from legacy carriers.

SUMMARY

IBEX Limited (IBEX +2.36%) reported record fiscal year 2026 financial results, characterized by double-digit revenue growth and the expansion of its AI-powered services. Management stated that the company achieved record levels for revenue, adjusted EBITDA, and free cash flow while transitioning toward a BPO 3.0 model. This model integrates human agents with AI solutions through a strategic partnership with Sierra AI, aimed at increasing call containment and customer satisfaction. The company reported significant growth in the HealthTech vertical, which exceeded its annual revenue target, and provided guidance for continued growth in fiscal year 2027.

  • CEO Dechant stated, "Our strategic partnership with Sierra AI firmly establishes IBEX as a leading provider of AI agents."
  • The company reported that its AI agent solution for Philippine Airlines achieved resolution rates above 20% and a customer satisfaction score of 4.7 out of 5.0 during its proof of concept.
  • Management reported that a new AI deployment for BJ's Wholesale reached resolution rates above 40%, exceeding scores previously delivered by legacy human agents.
  • Dechant indicated that the company is winning market share in the e-commerce sector by leveraging low-cost delivery markets such as Pakistan.
  • CFO Greenwald reported that digital and omnichannel services increased to 82% of total revenue, reflecting the growing contribution of AI-enabled solutions.

INDUSTRY GLOSSARY

  • BPO: Business Process Outsourcing, the practice of contracting specific business functions to a third-party provider.
  • NPS: Net Promoter Score, a metric used to measure customer or employee loyalty and satisfaction.
  • DSO: Days Sales Outstanding, a measure of the average number of days it takes a company to collect payment after a sale.
  • CSAT: Customer Satisfaction Score, a metric used to gauge how satisfied customers are with a specific interaction or service.
  • IVR: Interactive Voice Response, an automated telephony system that interacts with callers and gathers information.
  • AI Agent: An autonomous software program powered by artificial intelligence designed to handle complex customer service interactions.
  • BPO 3.0: Management's term for the new era of outsourcing that integrates human expertise with advanced conversational artificial intelligence.

Full Conference Call Transcript

Operator: Hello, and welcome to iBEC's Fourth Quarter Full Year 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a Q&A session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. To note, there is an accompanying presentation available on the IBEX Investor Relations website at investors.ibex.co. I would now like to hand the conference over to Mr. Greg Bradbury, investor relations for IBEX. Sir? You may begin.

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 actual 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 US Securities and Exchange Commission on 09/10/2026, and any other risk factors we include in the subsequent filings with the SEC, With that, I will now turn the call over to IBEX CEO, Bob Dechant.

Robert T. Dechant: Thanks, Greg. Good afternoon, and thank you all for joining us today as we review our fourth quarter and fiscal year 26 results. I am pleased to report that our fourth quarter marked another period of outperformance. Continuing the momentum we have built throughout fiscal 26 as we further expanded our differentiation while creating additional separation between Ibex and the rest of the traditional BPO market. We delivered record fourth quarter revenue growing 12% to $164.3 million bringing our full year organic revenue growth to 15% or $644.1 million We also did this while generating full year records for adjusted EBITDA EPS, adjusted EPS, operating cash flow, and free cash flow.

The quarter also marked our sixth straight quarter of double digit revenue growth. These results demonstrate the strength of IBEX and the separation we have from the competition. We have created a powerful flywheel that enables us to consistently outperform the market. It starts with our differentiation and proven track record. Which enables us to win trophy new logo clients across key verticals. We then operationally outperform our competition allowing us to rapidly take significant market share. As a result, we have built a business with best in class client retention rates, The proof points of our flywheel are clear. In Q4, our new logo engine accelerated considerably.

During the period, we added 9 new trophy logos, bringing our annual total to 17 wins across multiple verticals and geographies. For the year, revenue from our top 5 top 10, and top 25 clients grew 24%, 22%, and 15%, respectively. This growth represents market share we are taking from our competitors. I am proud to report that Ibex was named partner of the year by 3 different Fortune 500 companies. All of which are top 10 clients, highlighting that our clients clearly recognize the impact of our solution on their business outcomes.

In fiscal 26, we recorded revenue and client retention rates north of 99% indicating our ability to deliver not just for a select few clients, but across our client base. Additionally, our client net promoter score remains world class at 71. While our financial results already underscore this point, it is another strong validation that our clients remain incredibly supportive of the work we are doing. On the topic of growth, earlier this year, we announced our target of growing the health tech vertical into a $100 million business by the end of the fiscal year.

During the fourth quarter, the segment grew 42% to $29.4 million and grew 38% for the full year to $114 million, significantly surpassing the revenue goal we set for the business. What makes that performance especially compelling is that this growth has been built organically and will continue to be 1 of Ibex's most important growth vectors in fiscal 27 and beyond. While HealthTech represents a large and important vertical to us, it also serves as a strong showcase of our proven ability to build and scale new verticals organically across new geographies, further validating our ongoing investment and expansion into additional high growth markets.

1 attribute of that I am particularly proud of is our ability to improve as we grow. That applies to our business, our team, and our brand. I am pleased to report that our employee net promoter score increased this year from an already impressive 77 to 82, with a 95% participation rate. Putting us in unprecedented territory not only amongst traditional BPO peers, but across all industries. This is an important part of our competitive moat and a foundation for our ability to consistently outperform the competition. Fiscal 26 also marked the transformational step forward in defining a new era of BPO, 1 powered by AI agents.

Our strategic partnership with Sierra AI firmly establishes IBEX, as a leading provider of AI agents. We bring an integrated solution to market that enables us to deliver both effective AI agent call containment and high levels of customer satisfaction. Many studies, including 1 by MIT, have highlighted that AI agent solutions often fall short on ROI or deliver poor quality interactions. Our solution is designed to deliver both significant cost savings and high quality AI driven interactions. It combines a best in class AI agent engine with our best in class business insights to create customer journeys that deliver in the end. We formalized the strategic partnership in late January and announced it publicly in May.

In that short period of time, we have achieved tremendous traction across both new and existing clients. Demonstrating that our AI strategy is translating into a transformational success for our clients, and IBEX. The following are 4 distinct and meaningful case studies that highlight the progress we are making it at AI speed. In the first, IBEX beat out a pure play AI technology company, a SaaS technology company, and a traditional multibillion dollar BPO peer to win and launch an AI agent partnership with Philippine Airlines, an existing IBEX client. We won the proof of concept in Q4 and reached full scale deployment at the start of fiscal 27.

During the proof of concept phase, IBEX launched an AI agent solution in 3 languages, English, Tagalog, and Taglish. Achieved resolution rates above 20% and delivered CSAT above 4.7 out of 5.0. On par with our traditional human agents while our competitors struggled. Importantly, and consistent with our thesis going in, this solution is not cannibalizing our revenues. As we continue to be a critical partner we are able to take share from our BPO competitors on the human agent side. This is a significant net win and a strong early proof point of how we intend to win in the evolving BPO 3.0 market. The second example is with BJ's Wholesale.

The new trophy-client win in which we led with our AI solution not traditional BPO. We launched in June and achieved impressive results in weeks not months. We are attaining resolution rates above 40% and CSAT scores above 4.7 out of 5.0. Exceeding the human agent scores delivered by the client's legacy BPO vendor. Based on the outstanding performance and the strength of the partnership we have forged, we now anticipate launching traditional human agents in the first half of fiscal 27. This adds another dimension to our powerful land and expand model.

We believe BJ's is a great illustration of our ability to lead with AI deliver meaningful client outcomes, and then win additional business proving that our AI agent solutions are not merely an ancillary offer but a leading solution that will drive future growth. The third example comes from deploying Sierra AI on our digital customer acquisition business. In this case, we are leveraging AI agent solutions we built to take inbound call volume that was previously handled through traditional IVR and converting them into incremental sales opportunities for our human agents. This creates a virtuous cycle.

We are easily able to scale to answer all the call volume generated through our own digital marketing efforts efficiently convert them into additional revenue opportunities, and reinvest in new digital marketing campaigns to further expand this growing business. The last and fourth example highlights the strength of our partnership. Not only are we winning new business by leading with the IBEX Sierra solution, We are also winning traditional CX business through the partnership. Earlier in the year, Sierra introduced us to a leading luxury activewear brand seeking the right partner to scale human agent support alongside its AI solution as the brand experiences hypergrowth.

Based on the strength of Sierra's partnership, and the trust it had developed with the client, we signed and launched the proof of concept within 30 days. Following our outperformance versus the incumbent vendor, we signed a long term agreement and are now executing an aggressive ramp. This is a great example of how our traditional BPO can work and now move at the speed of AI not BPO. Each of these 4 solutions are driving incremental growth for Ibex. And we currently have double digit client deployments with our AI agent solutions spread across 5 verticals, creating additional vectors of growth.

Importantly, we have now turned the perceived threat of AI for BPOs into an important growth opportunity for IBEX. The result is a business that is strategically built for today and tomorrow For many quarters, we have demonstrated our ability to outperform the traditional BPO market. On the human agent side of the business Now we have created the ability to deliver best in class AI agents as well. Which gives us confidence in our ability to continue to deliver on our growth trajectory both near term and long term. To summarize, we will look back on fiscal 26 not only as another banner year across the business, but also as the start of something greater.

We began to define the new era of BPO, BPO 3.0, and we are confident in our ability to build on this momentum and solidify Ibex's industry leadership position. I firmly believe our business today is stronger than ever and that we are best positioned for the future. Lastly, I want to thank my team for their tireless efforts in making IBEX the best in the industry. With that, I will now turn the call over to Taylor to go into more detail on our fourth quarter and fiscal year 26 financial results and guidance. Taylor?

Taylor C. Greenwald: Thank you, Bob, and good afternoon, everyone. Thank you for joining the call today. In my discussions of our fourth quarter and fiscal year 26 financial results, references to revenue, net income, and net cash generated from operations are on a US 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, We had a strong fourth quarter across many key operating metrics, including revenue, adjusted EBITDA, EPS and free cash flow.

This was our sixth consecutive quarter of double digit revenue growth, resulting in top line growth of 12% for the quarter, Our differentiated solutions and execution are clearly separating us from the traditional BPO pack. Fourth quarter revenue was $164.3 million up from $147.1 million in the prior year quarter. Revenue growth was driven by vertical growth in HealthTech of 42%, technology of 27%, travel, transportation, and logistics of 18%, retail and ecommerce of 7%, with help from growth in our AI agent solutions. We continue to win and grow in all geographic markets during the quarter.

Our onshore region grew 15% compared to the prior year quarter, driven by clients won and launched during fiscal year 26, including several clients in our higher margin health tech vertical. Our highest margin offshore region grew 14% from the prior year quarter, and our nearshore locations grew 2%. Offshore revenue comprised 50% of total revenue, allowing us to maintain our strong gross margin of 28.6% for the quarter. Onshore revenue expanded to 28% of total revenue, from 27% in the prior year quarter. Our higher margin digital and omnichannel services also continue to strengthen, growing 12% versus the prior year quarter to 82% of total revenue.

This continued mix shift reflects the growing contribution of our digital and AI enabled solutions, and reinforces the strategic and financial impact as deployments begin to scale. 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 long term margin growth. Fourth quarter GAAP net income was $8.7 million compared to $9.6 million in the prior year quarter.

Results were primarily driven by training expenses related to the many new client wins in the quarter and a temporary impact of work transferring from nearshore to offshore delivery centers as well as the impact of higher fuel prices on utility and transportation expenses particularly in our offshore region. Our GAAP results also include $2 million of lease termination losses and severance expense associated with the shift of work from our nearshore to offshore regions, as well as impairment losses and asset disposal gains.

Our tax rate was 10% versus 19% in the prior year quarter, primarily attributable to changes in revenue mix across our taxable jurisdictions and discrete tax items, including a favorable resolution of an uncertain tax position during the current year. Fully diluted GAAP EPS was $0.59 down from $0.66 in the prior year quarter. Moving to non GAAP measures. Adjusted EBITDA decreased slightly to $20.2 million or 12.3% of revenue, from $20.5 million or 13.9% of revenue for the same period last year and driven primarily by the expenses related to new client wins, the temporary impact of work transferring from nearshore to offshore, as well as the impact of higher fuel prices.

We expect adjusted EBITDA margins to return to expanding in the first quarter of fiscal year 27. In addition to our customary non GAAP adjustments of stock based compensation and foreign currency gains and losses, Our non GAAP results also exclude the $2 million of lease termination losses, severance expense, impairment losses, and asset disposal gains discussed above. Adjusted net income remained consistent at $12.7 million when compared to the prior year quarter. Non-GAAP fully diluted adjusted earnings per share was $0.85 compared to $0.87 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 fourth quarter of fiscal year 26, our largest client accounted for 9% of revenue, and our top 5, top 10, and top 25 clients represented 33%, 53%, and 75%, respectively, of overall revenue compared to 36%, 54%, and 79% respectively, of overall revenue in the prior year quarter, representative of a well diversified client portfolio which continues to diversify with new clients. 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. 2 great examples of this are 2 of our signature client wins from fiscal year 25 going into top-25 clients.

And 1 of our signature client wins from fiscal year 24 growing into a top 10 client. Switching to our verticals, health tech grew 42% and increased to 17.9% fourth quarter revenue versus 14% in the prior year quarter. Technology grew 27% and increased to 8.4% compared to 7.4%. Travel transportation logistics grew 18% and increased to 14.5% compared to 13.8%. And retail and ecommerce grew 7% and comprised 24.2% of total revenue compared to 25.3% in prior year quarter. These increases 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 9.4% of revenue for the quarter.

Versus 10.9% in the prior year quarter, as we see lower volume from legacy carriers. Revenues from the fintech vertical were up 3% and represented 9.7% of revenue for the quarter, versus 10.6% in the prior year quarter. Moving on to our full year results, achieved record full year revenue adjusted EBITDA, EPS, adjusted EPS, operating cash flow, and free cash flow for fiscal year 26. Fiscal year 2026 revenue was $644.1 million, an increase of 15.4% from $558.3 million in the prior Revenue growth was driven by vertical growth in HealthTech of 38%, technology of 26%, travel, transportation, and logistics of 17%, and retail and ecommerce of 14%.

Along with accelerating growth in our digital acquisition business and our AI agent solutions. During fiscal year 26, these AI enabled offerings progressed from an emerging growth vector to becoming a more meaningful contributor to our results, supporting both new client wins and expansion within our embedded base. We grew in both our onshore and offshore regions throughout the year. Our onshore region grew 25% compared to prior year, driven by growth of several clients in our higher margin health tech vertical and our high margin AI agent solutions and digital acquisition business. Our highest margin offshore region comprised 51% of total revenue and grew 16 compared to prior year.

Revenue from our near shore locations grew 5% compared to the prior year. Fiscal year 2026 net income increased to $46.3 million versus $36.9 million in the prior year. The increase was primarily driven by the continued revenue growth and operating leverage gained from SG&A expenses. Our effective tax rate was 14.7%, versus 19.7% for fiscal year 26, which was attributable to changes in revenue mix across our taxable jurisdictions and discrete items recognized in the current year. Excluding the discrete tax benefits from stock based compensation and favorable resolution of uncertain tax positions, our effective tax rate would have been 18.2% for fiscal year 2026.

We expect our normalized tax rate going forward to be in the 20% to 22% range, benefiting from higher net income, and lower diluted shares outstanding, our GAAP fully diluted earnings per share increased 32.8% to $3.13. Reviewing our non GAAP measures for the full year, adjusted EBITDA increased to a record of $82.4 million compared to $72 million for the prior year. Adjusted EBITDA margin was 12.8% for fiscal year 26, consistent with 12.9% for the prior year. Adjusted net income increased 21% to $52.2 million compared to $43 million in the prior year, Non GAAP fully diluted adjusted earnings per share increased 28% to $3.52 compared to $2.75.

The increase in non GAAP adjusted net income and non GAAP fully diluted earnings per share was primarily driven by the top and bottom line operating performance discussed earlier in our lower tax rate and share count. Moving to cash flow. Net cash generated from operating activities was a record $59 million for fiscal year 26 compared to 45.7 million for fiscal year 25. Which was driven by an increase in our revenues and profitability offset by higher use of working capital. Our DSOs were 69 days for the quarter, down from 72 days at the end of last year, We expect our DSOs to remain stable in the low to mid seventies on a go forward basis.

Capital expenditures were $27.8 million or 4.3% of revenue for fiscal year 26, versus $18.4 million or 3.3% of revenue in the prior year. This increase was primarily driven by expansions in our offshore regions and purchases of IT and telecommunications equipment to support the company's continued growth. Free cash flow for fiscal year 26 was a record inflow of $31.2 million compared to an inflow of $27.3 million in the prior year. The increase was primarily driven by the increase in net cash generated from operating activities offset by the planned increase in capital expenditures. We are proud to have achieved record cash flow levels while investing for high growth.

During the quarter, we repurchased 143 thousand shares for $4.3 million at an average price of 29.83 bringing our fiscal year share repurchases to 453 thousand shares or $14.4 million at an average price of $31.70. On May 11, 2026, the board authorized a new share repurchase program for $20 million and the total amount available for repurchase as of 06/30/2026 was $17.9 million.

We ended the fourth quarter with $32.6 million of cash and debt of $1.7 million for a net cash position of $30.9 million an improvement of $16.9 million compared to net cash of $14 million at the end of the third quarter and an improvement of $17.2 million compared to net cash of $13.7 million at the end of our last fiscal year. I am also pleased to mention 2 additional items. First, we just renewed our revolving HSBC credit facilities through October 2029, a total capacity of up to $76 million. Additionally, as it is now been over 5 years since our IPO, we have exited emerging growth status.

And are well prepared for the SOC certification process to attest to the effectiveness of our financial reporting and disclosure controls. Looking back, fiscal 26 was a banner year that included record performance across many key operating metrics, including revenue, adjusted EBITDA, EPS, free cash flow. Our financial results were driven by consistent performance throughout the year, supported by our differentiated strategy and increased traction in our AI enabled solution offerings. Looking ahead, this momentum gives us confidence that our strategy will continue generating results that outpace our market as we head into fiscal year 27.

Forecasting the year ahead, our healthy balance sheet and cash flows are enabling us to continue to make smart investments to support increased capacity for anticipated growth as well as to further extend our current AI leadership position. Reflective of our current position and forward momentum, we are providing initial first quarter and fiscal year 27 revenue and adjusted EBITDA guidance. For fiscal year 27, revenue is expected to be in the range of $700 to $715 million for 9% to 11% growth, Adjusted EBITDA is expected to be in the range of $90 million to $94 million or 9% to 14% growth.

For first quarter of fiscal year 27, revenue is expected to be in the range of $168 to $170 million, or 11 to 12% growth, Adjusted EBITDA is expected to be in the range of $22 million to $23 million or 13% to 18% growth. Capital expenditures for the year are expected to be in the range of $25 million to $30 million Our business is well positioned for today and the years ahead and we are excited about the momentum we have built as we head ininto fiscal year 27 and beyond, With that, Bob and I will now take questions. Operator, please open the line.

Operator: Thank you. Then wait for your name to be announced. To withdraw your question, please press 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of David Koning with Baird. Your line is open.

Jacob Hagerty: Hey, guys. Congrats on another great quarter here. Just a question real quick. Could you like your growth has accelerated pretty nicely since the AI fears have kicked in ironically. Are you guys already seeing benefits from AI? Is that part of what is driving this growth? Or can that be an accelerating factor in the years to come here?

Robert T. Dechant: Hey, David. it is Bob, and thanks for, the question and appreciate your being on the call. So here's my belief is our performance continues to stand out. And that is noticed by potential clients that are looking at us, etcetera. But when we do the announcement with Sierra, such a strong player in the AI world, It also helps them take notice, and it puts us, I think, into a different classification versus the rest of the pack. And really moves us into that position of being a BPO player that can be their partner for today in the in the human world, but also be their partner as they now evolve in the bring AI agents to market.

So it further differentiates us. And I think that is what we are seeing is the acceleration of our business, our traditional business, our business to our ability to win new logos, but it also now creates what we are really excited about is another dimension for growth because if you think about our implementations, we go from a proof of concept to rapidly full deployment. We go to 20 to 40% of their enterprise volume as I highlighted in those case studies. Now do you know how long that would take to hire the 20 to 40% on the human side between training and hiring? It take takes a long time to build that type of scale.

And now we are building that scale almost immediately with the, with the scale of the AI agent solution. So we think pathway to revenue for that is really exciting. So we just think that adds a whole another dimension of growth to our business. And like I said, in the face of the threat of AI, and we are out in front of it, so we actually truly believe we future proof this business. Yeah. No. That makes a lot of sense.

Taylor C. Greenwald: And just a modeling question really quick on the FQ4 tax rate, it was a bit lower. How do you think about that for the coming year? Like, should that go back to near 20%? Or does that stay structurally lower for a little bit? Good question, David, and good to hear from you. You are right. So going forward, we would expect our tax rate to continue to be in that 20 to 22% range. In the fourth quarter, we benefited from some discrete tax items, including a favorable resolution from a tax matter with the with the tax authority. So I think, for modeling purposes, 20% to 22% would be the right range.

Robert T. Dechant: Awesome. Thank you, guys. Thank you.

Operator: Please stand by for our next question. Our next question comes from the line of David Koning with RBC. Your line is open.

David Page: Hi, good afternoon. Thank you for taking my question. Congrats on the good results. Looks like broad based growth across all 4 verticals. So I was just wondering if you could provide a little bit more color on each vertical out into Q1 and to 2027. Is growth going to be accelerating? Or where should we be focused on? Thanks so much.

Robert T. Dechant: Sure, David, thank you for joining. Thank you for that question. And I like how you touched on that because we are seeing growth in our key verticals, and that is something that is we believe is important, how we have built ourselves as a diversified business from a client and a vertical standpoint. Let's start with the health care, health tech vertical. We are doing an amazing job with the big payers. And the pipeline is really strong in that space with those--you know, those players. And we feel like that will continue to fuel a lot of growth for us as we win those throughout the course of this year. Our pipeline is really strong there.

But we have also won in what I will call more specialty areas of the health care ecosystem. Things like nonemergency medical transportation where we are just winning deal after deal after deal. And so we are really excited because we have you know, the strength of those that have massive budgets for CX, and then we are winning in, you know, in with the specialty companies. That allow us to really, you know, kind of have a really strong 1-2 punch. When I think about the ecommerce world, we are doing very well in the ecommerce world. We are winning new logos.

We are winning as the ecommerce world is looking for disruptive markets, low price points, our Pakistan market is on fire. Growing rapidly as are several of our other low cost markets. But we are 1 area of growth there is we are just winning mass market share. Against our competitors by simply outperforming them, which is a really good position to be in because, you know, that is obviously then really sticky. If you are outperforming, if you are growing with them, And then if you are bringing some of these innovative solutions, you become a more and more trusted partner. And so I think we are, you know, we are doing very well in that space.

I would say similarly in the travel transportation where we are winning you know-- look, We highlighted what we did with Philippine Airlines. Well, we are we are deferring and containing a lot of the calls that we are going to humans with AI but we are doing that. We are winning market share, and we are growing with them. And so we are able to win new businesses just based on what we are doing in as a business and our differentiated value proposition. As I look into 2027, I feel really strong about the trajectory of the business. The 9 new logos, I do not think are a 1-off That we did in Q4.

I really think that is a that is a combination of the brand that we have created, the differentiation that we continually highlight, and then our strong AI play and in particular, AI agent play. Our competition in the BPO space they are not leaning into this. And so we are well ahead of anybody in the pack. And as clients look at that, they want a provider that can deliver successful AI agents, and that is the solution that we built with Sierra leveraging the strength of them and the strength of us. We put it together. And as you can see, we are delivering in the end. that is resonating, and that is driving growth.

So I feel really strong about the trajectory of this business. Greg. that is very helpful. Thank you. Congrats on the good results. Greg. Thank you. Yeah. And we are really proud of what we have done. Thank you.

Operator: Ladies and gentlemen, I am showing no further questions in the queue. I would now like to turn the call back over to CEO, Bob Dechant, for closing remarks.

Robert T. Dechant: Thanks, operator, and thanks to all for participating today. As you can tell, we are really proud of the work that we have done here. And, again, it is all driven by the best team in the industry. So I wanna thank them. A special call out to them. I appreciate all your efforts that you put out throughout the entire year. I could not be more proud of what you have done and what we have done as a company. Thank you all for joining us today, and we look forward to speaking with you shortly next quarter in November. Have a good night.

Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.