IBEX Limited: Sierra AI Partnership Marks the Leap to BPO 3.0
Record revenue, a 54% HealthTech surge, and a transformative AI tie-up position IBEX at the center of agentic CX
IBEX · Earnings Call · 2026-05-06
Another Record Quarter, a Pivotal Announcement
IBEX Limited delivered yet another quarter of outperformance in fiscal Q3 2026, but the headline is the landmark partnership with Sierra AI, announced just before the call. CEO Bob Dechant framed it as the company's next chapter: “we again extended the separation between ourselves and the rest of the traditional BPO market.” — Bob Dechant, CEO · 2026-05-06 The quarter itself was strong – revenue up 17% to $164.4M, with HealthTech growing 54% – but it's the partnership that makes this report stand out. The partnership with Sierra is a strategic pivot. IBEX will integrate Sierra's AI engine with its own CX expertise to deliver end-to-end AI-powered solutions. Dechant described it as a move to 'BPO 3.0,' where AI agents and human agents work in harmony. This is a fresh, company-specific theme that goes beyond the usual industry talk. The company's keyword trajectory shows AI agent and agentic AI surging in the current quarter, confirming the new direction.The Economics of the AI Pivot
Guiding the narrative, Dechant explained that the Sierra deal is accretive, with software-like margins layered on top of existing BPO margins. He said,That sentiment echoes his prior optimism: in the May 2025 call, he noted,We believe this collaboration will be transformative for our business and set IBEX Limited up well for the future.
– and that belief is now becoming concrete. Financially, the quarter confirms the momentum. Total revenue rose 16.8% year-over-year to $164.4M, with HealthTech (up 53.7%) and Technology (up 42.6%) leading the way. The company raised its full-year guidance to $638–642M revenue and $82–84M adjusted EBITDA. Free cash flow turned positive at $6.6M, and net cash stands at $14M. The market has taken notice: the stock has rallied 33% over the past 90 days, though it remains 13% below its September 2025 peak. The AI story is now real, and IBEX is making a deliberate move to own it.we believe AI will come in and be even a higher margin service than any of the other services we have in our stack