Cuộc họp công bố kết quả kinh doanh quý 1 năm tài chính 2027 của IBEX: Doanh thu kỷ lục và nâng định hướng

IBEX công bố kết quả kinh doanh kỷ lục trong quý 1 năm tài chính 2027 nhờ thu hút thêm khách hàng mới, mở rộng quy mô hợp đồng với các khách hàng hiện hữu và tăng trưởng ở các mảng dịch vụ cũng như khu vực có biên lợi nhuận cao hơn. Ban lãnh đạo công ty đã nâng dự báo doanh thu và EBITDA điều chỉnh cho cả năm.

Điểm nhấn chính

• Doanh thu tăng 16% so với cùng kỳ năm trước lên mức kỷ lục 175,2 triệu USD, đánh dấu quý thứ bảy liên tiếp đạt mức tăng trưởng hữu cơ hai con số.
• EBITDA điều chỉnh tăng 29% lên 25,2 triệu USD. Biên EBITDA điều chỉnh mở rộng 150 điểm cơ bản lên 14,4%.
• Lợi nhuận ròng theo GAAP đạt 14,8 triệu USD, trong khi EPS pha loãng theo GAAP tăng 20% lên 0,99 USD. EPS điều chỉnh tăng 21% lên 1,10 USD.
• Các khách hàng mới ký kết trong năm tài chính 2026 và đầu năm tài chính 2027 đóng góp khoảng 50% mức tăng trưởng doanh thu hàng quý. IBEX cũng duy trì tỷ lệ giữ chân doanh thu và khách hàng ở mức trên 99%.
• Ban lãnh đạo đã nâng dự báo doanh thu năm tài chính 2027 lên 720 triệu - 735 triệu USD và dự báo EBITDA điều chỉnh lên 96 triệu - 99 triệu USD.
• Thỏa thuận hợp tác với Sierra đang thúc đẩy nhanh quá trình triển khai các tác tử AI của IBEX. Kể từ cuối quý, công ty đã giành được bốn hợp đồng tác tử AI mới và nhận được sự đồng thuận miệng cho ba cơ hội BPO truyền thống dự kiến sẽ triển khai trong quý hiện tại.

Dữ liệu tài chính cốt lõi

IBEX kết thúc quý với 36,7 triệu USD tiền mặt và 1,7 triệu USD nợ, mang lại lượng tiền mặt ròng 35,0 triệu USD. Trong quý, công ty đã mua lại khoảng 123.000 cổ phiếu với giá 4,4 triệu USD, tương ứng mức giá trung bình 35,92 USD/cổ phiếu. Hạn mức mua lại cổ phiếu còn lại là 13,5 triệu USD.

Hiệu quả kinh doanh và hoạt động

Doanh thu mảng HealthTech tăng 40% và chiếm 17,5% doanh thu hàng quý. Mảng Du lịch, Vận tải và Logistics tăng 16%, Công nghệ tăng 10%, còn Bán lẻ và Thương mại điện tử tăng 9%. Nhóm ngành Khác tăng trưởng 31%, nhờ mảng kinh doanh thu hút khách hàng kỹ thuật số.

Doanh thu trong nước (onshore) tăng 37%, phản ánh sự tăng trưởng ở các dịch vụ thu hút khách hàng kỹ thuật số có biên lợi nhuận cao hơn và cung cấp dịch vụ HealthTech. Doanh thu ở nước ngoài (offshore) tăng 14% và chiếm 50% tổng doanh thu. Doanh thu tại các quốc gia lân cận (nearshore) không thay đổi so với cùng kỳ năm trước.

Doanh thu từ 5 khách hàng hàng đầu, 10 khách hàng hàng đầu và 25 khách hàng hàng đầu của IBEX lần lượt tăng 14%, 13% và 18%. Khách hàng lớn nhất đóng góp 9% doanh thu, trong khi nhóm 5, 10 và 25 khách hàng hàng đầu lần lượt chiếm 34%, 53% và 75%.

IBEX đã ký hợp đồng với bốn khách hàng BPO truyền thống mới trong quý. Ba khách hàng ký kết kể từ quý 4 năm tài chính 2026 đã trên đà lọt vào nhóm 25 khách hàng hàng đầu của công ty trong năm tài chính 2027.

Công ty cho biết thỏa thuận hợp tác với Sierra đang hỗ trợ triển khai nhanh hơn các tác tử AI và các giải pháp trải nghiệm khách hàng tích hợp giữa AI và con người. Trong một dự án triển khai cho nhà cung cấp mạng cáp quang, IBEX đã ra mắt một tác tử AI và giải pháp CCaaS tích hợp chỉ trong sáu tuần. Giải pháp này đã giúp giảm hơn 60% tỷ lệ cuộc gọi bị bỏ dở mà khách hàng không cần tuyển thêm nhân sự. Sau đó, khách hàng này đã giao toàn bộ mảng trải nghiệm khách hàng do tổng đài viên truyền thống đảm nhiệm cho IBEX, với quá trình chuyển giao dự kiến hoàn tất vào cuối tháng 12.

IBEX cũng mở rộng sang Ai Cập, bổ sung công suất phục vụ tiếng Anh ở nước ngoài (offshore) và nâng cao năng lực đa ngôn ngữ trên quy mô rộng hơn. Ban lãnh đạo cho biết công ty đã giành được nhiều chương trình bằng tiếng Anh và tiếng Pháp tại đây.

Dự báo của ban lãnh đạo

Ban lãnh đạo cho biết triển vọng này ngụ ý biên EBITDA điều chỉnh sẽ mở rộng từ 50 đến 70 điểm cơ bản trong năm tài chính 2027. Công ty kỳ vọng biên lợi nhuận sẽ cải thiện so với cùng kỳ năm trước ở mỗi quý còn lại, dù không đạt tốc độ 150 điểm cơ bản như đã ghi nhận trong quý 1 năm tài chính.

Công ty dự kiến thuế suất thực tế khoảng 21%-22% trước các khoản mục riêng lẻ. Chi phí vốn dự kiến sẽ vượt 4% doanh thu, trong đó khoảng 1,5% dành cho việc duy trì và phần còn lại hỗ trợ tăng trưởng.

Rủi ro và các yếu tố cần theo dõi

Thuế suất thực tế của IBEX đã tăng từ 11% lên 19%, phản ánh sự thay đổi trong cơ cấu doanh thu giữa các khu vực pháp lý chịu thuế và các lợi ích riêng lẻ thuận lợi trong cùng kỳ năm trước.

Số ngày thu tiền bình quân tăng lên 72 ngày từ mức 69 ngày vào cuối quý trước và 71 ngày vào cùng kỳ năm trước. Ban lãnh đạo kỳ vọng DSO sẽ duy trì trong khoảng từ đầu đến giữa 70 ngày.

Doanh thu mảng Viễn thông đi ngang và giảm tỷ trọng xuống 8,8% tổng doanh thu so với mức 10,2%. Doanh thu mảng FinTech cũng tương đối đi ngang và chiếm 9,3%, giảm so với mức 11%.

Cuộc họp cũng đề cập đến tác động tiềm ẩn của AI đối với khối lượng công việc của tổng đài viên là con người. Ban lãnh đạo lưu ý rằng AI có thể xử lý 20%-40% các tương tác trong một số trường hợp khách hàng nhất định, nhưng cho biết IBEX đã bù đắp điều này thông qua doanh thu từ AI, khách hàng mới và việc giành thêm thị phần trong các dịch vụ do con người đảm nhận.

Điểm nhấn phiên hỏi đáp với chuyên gia phân tích

Ban lãnh đạo cho biết các khách hàng hiện hữu của IBEX thường có ngân sách thuê ngoài dao động từ 100 triệu USD đến 1 tỷ USD, tạo dư địa để tiếp tục giành thêm thị phần. Công ty cho rằng sự mở rộng trong các khách hàng này là nhờ năng lực thực thi vận hành và tỷ lệ giữ chân khách hàng trên 99%.

Về biên lợi nhuận, ban lãnh đạo tái khẳng định rằng dự báo năm tài chính 2027 bao gồm việc tiếp tục mở rộng biên EBITDA điều chỉnh so với cùng kỳ năm trước ở tất cả các quý còn lại, trong khi vẫn duy trì đầu tư cho tăng trưởng.

Về phân bổ vốn, IBEX cho biết ưu tiên hàng đầu là mở rộng công suất ở nước ngoài (offshore), nơi thời gian hoàn vốn dự kiến là khoảng một năm. Mua lại cổ phiếu vẫn là một phần của chiến lược, nhưng các thương vụ mua lại và sáp nhập không phải là ưu tiên cao do sự tăng trưởng hữu cơ của công ty và trọng tâm hướng tới các giải pháp tác tử AI. Ban lãnh đạo sẽ xem xét một giao dịch nếu giúp bổ sung thêm khu vực địa lý mục tiêu hoặc thị trường ngách.

Toàn văn biên bản cuộc họp công bố kết quả kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

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

Robert Dechant

Thanks, Greg. Good afternoon, and thank you all for joining us today for our first quarter fiscal '27 earnings call. Fiscal Q1 marked another period of strong growth and great momentum. IBEX continued to capitalize on its differentiated offerings, driving top-line performance from our new logo engine, and further market share gains within our existing customer base. We also achieved important wins with our AI agent solution, supported by our growing partnership with Sierra.

We began the fiscal year with a powerful 16% increase in revenue, bringing quarterly revenue to an all-time high of $175.2 million, marking our 7th consecutive quarter of double-digit growth. Our top-line growth continues to flow throughout the P&L. In the first quarter, we delivered record results for net income, adjusted net income, adjusted EBITDA, EPS, adjusted EPS, operating cash flow, and free cash flow. Adjusted EBITDA margin was a robust 14.4%, up 150 basis points year-over-year. GAAP EPS and adjusted EPS have now each grown by double digits in 9 of the past 10 quarters.

As we have said previously, IBEX is structurally built for performance, with each of our growth vectors also contributing to margin expansion, a trend we expect to continue. Perhaps most importantly, these results continue to validate a core theme we have discussed for several quarters: IBEX is getting better as it grows. Our financial performance continues to set new records, our new logo engine is accelerating, our client and employee satisfaction scores are reaching new heights, and our differentiation continues to separate us further from the legacy BPO pack.

As we scale, this flywheel effect is becoming more powerful, and we are now seeing the impact of this compounding across the business, giving us increased confidence in our future performance. Our business continues to build momentum, fueled in part by our strategic partnership with Sierra. In the quarter, we signed 4 new logos for traditional BPO services. And in the weeks since, we have won 4 new AI agent deals and secured verbal wins on 3 more traditional BPO opportunities, all of which we expect to launch this quarter.

Combined with the 9 new logo additions in Q4 FY '26, our new logo engine is firing on all cylinders, not only powering our growth flywheel, but accelerating it. We are seeing both the number of deals and the size of the opportunities increase across our land and expand model, and we are excited about the opportunities ahead. The revenues from our new logo wins for FY '26 and the first quarter of FY '27 further illustrate this momentum.

Our FY '26 new logo cohort and our recent FY '27 wins accounted for approximately 50% of our revenue growth in the quarter. This is a significant increase from the prior 3 years, and we expect in-year revenue from the FY '27 cohort to reach an all-time high. This performance demonstrates the strength of our BPO 3.0 strategy as our competitive moat is growing wider and deeper.

Our growth extended beyond new logos. During the quarter, we gained significant market share with our existing clients, driven by our stellar operational performance. Revenues from our top 5, top 10, and top 25 clients increased 14%, 13%, and 18%, respectively, year-over-year. This performance also reflects strong revenue and client retention, which remain at world-class levels above 99%. These results reinforce our confidence that IBEX is well positioned to navigate the broader AI transition.

I now would like to share an update on our landmark partnership with Sierra, which we formally announced in May 2026. Together, IBEX combines Sierra's market-leading conversational AI technology with our best-in-class CX expertise, technology integration capabilities, and our deep analytics. This enables us to design and deploy scalable, end-to-end AI-powered CX solutions for leading global brands in weeks, not months or years.

Momentum in the partnership continues to exceed our expectations. We are seeing strong results in implementation speed, resolution rates, and customer satisfaction. Our ability to orchestrate seamless interactions between AI agents and human agents further differentiates us. As I noted earlier, these results are contributing to new logo wins and market share gains with existing clients. We are winning AI-led opportunities, traditional BPO opportunities, and increasingly, engagements that combine both.

Our pipeline remains robust, AI deployments are accelerating, and demand is growing among clients seeking an integrated solution that brings together AI agents and industry-leading human support. These solutions also create opportunities for revenue growth and margin expansion, further strengthening our business model.

As an example, earlier this year, we won an opportunity with a leading fiber provider that was facing significant issues in their customer care model, starting with their legacy IVR. IBEX delivered an impactful solution by implementing an AI agent powered by Sierra's solution paired with an integrated CCaaS solution. Within 6 weeks, the AI agent solution was developed, deployed, and launched, displacing their legacy IVR.

By having all contacts immediately reaching an AI agent, we were able to reduce abandoned calls by more than 60% without the need for our client to add additional headcount. Our solution is also showing a marked improvement in CSAT and significant cost savings. Based on the success we are having with this solution, our client has now awarded us their traditional call center work. By the end of December, we will fully displace 1 of our multibillion-dollar competitors, taking 100% of their traditional human agent CX work as well.

This is another example of how AI agents is a growth vector for us in our land and expand strategy. Our ability to respond and execute at the pace of AI has positioned IBEX to bring together the strengths of the leading AI and human-powered support in a seamless solution spanning the customer journey. This is the foundation of our BPO 3.0 leadership, and we are confident it will continue to deliver value for our clients and growth for our business.

I have previously spoken about how proud I am of the strength of our business, our teams, and our brand. In our September call, I reported how our Employee Net Promoter Score increased from an already impressive 77 to an amazing 82. I am now pleased to report that for the year, our Client Net Promoter Score increased from an equally impressive 71 to 83. These combined scores put us in unprecedented territory, not only for traditional BPO peers, but across all industries.

While our financial results already underscore this fact, it's also great to have another validation point that both our employees and our clients remain incredibly committed to IBEX. In September, we announced our official expansion into Egypt, a strategically important market for IBEX. The expansion further strengthens our best-in-class offshore English language footprint while broadening our multilingual capabilities to meet more clients' language needs. Since launch, we have already secured multiple wins, both English and French language programs.

In summary, Fiscal 2027 is off to an outstanding start, positioning us for our 3rd year of double-digit organic growth. We are growing faster, winning larger opportunities, advancing our AI leadership, and deepening our relationships with our clients and employees. As we continue to lead the next era of BPO 3.0, we are confident in our ability to build on this momentum. With that, I will now turn the call over to Taylor to go into more detail on our first quarter 2027 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 first quarter fiscal year '27 financial results, references to revenue, net income, and net cash generated from operations are on a U.S. GAAP basis. 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 table attached to our earnings press release.

Turning to our results, our first quarter results are the strongest in our history. They included all-time records across nearly every key operating metric, including revenue, net income, adjusted net income, adjusted EBITDA, EPS, and adjusted EPS. In addition, operating cash flow and free cash flow were first quarter records. This was our 7th consecutive quarter of double-digit organic revenue growth, resulting in top-line growth of 16% for the quarter. Our differentiated solutions and execution are clearly separating us from the traditional BPO pack.

First quarter revenue was $175.2 million, up from $151.2 million in the prior year quarter. Revenue expansion was driven by vertical growth in HealthTech of 40%, Travel, Transportation, and Logistics of 16%, Technology of 10%, and Retail and E-commerce of 9%, with continued growth in our digital acquisition business and accelerating revenues in our AI agent solutions. We continued to win and grow in our onshore and offshore regions during the quarter.

Our onshore region grew 37% compared to the prior year quarter, primarily driven by growth of our high-margin digital acquisition business and in our higher-margin HealthTech vertical. Our highest-margin offshore revenues grew 14% compared to the prior year quarter. Our nearshore locations remained even with the prior year. Offshore revenue comprised 50% of total revenue, remaining relatively consistent as a percentage of our total business and helping us to achieve our strong gross margins of 30.4% for the quarter.

Onshore revenue expanded to 29% of total revenue from 25% in the prior quarter, reflecting the growth in our high-margin digital acquisition services and onshore HealthTech delivery. 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.

First quarter GAAP net income increased to $14.8 million compared to $12 million in the prior year quarter. The increase was primarily driven by the continued revenue growth, particularly in our higher-margin service offerings and regions, which helped to drive gross margin expansion of 90 basis points to 30.4% and operating leverage gained from SG&A as it decreased from 17.5% to 17.2% of revenue, partially offset by an increase in income tax expense compared to the prior year quarter.

Our tax rate was 19% versus 11% in the prior year, primarily attributable to changes in revenue mix across our taxable jurisdictions and favorable discrete tax benefits recognized during the prior year quarter. We expect our effective tax rate before discrete items for the fiscal year to be approximately 21% to 22%. Fully diluted GAAP EPS was $0.99, up 20% from $0.82 in the prior year quarter. Contributing to the EPS growth was the impact from strong operating performance.

Moving to non-GAAP measures, adjusted EBITDA increased 29% from the prior year to a record of $25.2 million, or 14.4% of revenue, from $19.5 million, or 12.9% of revenue, for the same period last year, which represented a 14% increase from our previous adjusted EBITDA record of $22 million in the third quarter of fiscal '26. The 150 basis point improvement in adjusted EBITDA margin was driven by improvement in our gross profit margin and a reduction in SG&A expenses as a percentage of revenue.

Adjusted net income increased to $16.4 million from $13.1 million in the prior year quarter. Non-GAAP fully diluted adjusted earnings per share increased 21% to $1.10 from $0.90 in the prior year quarter. As a company, we're pleased with the client diversification we've established over the last several years.

For the first quarter of fiscal year '27, 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, represented 34%, 53%, and 75% of overall revenue, respectively, representative of a well-diversified client portfolio. Importantly, we're continuing to grow with our top 5, top 10, and top 25 clients as they grew 14%, 13%, and 18%, respectively, versus the prior year as we continue to gain market share with them.

We've done a tremendous job of not only retaining and growing our top clients, but also winning and growing new strategic clients. In fact, 3 of the new logos we have won since the fourth quarter of fiscal year '26 are already on pace to being our top 25 clients for fiscal year '27.

Switching to our verticals, HealthTech grew 40% and increased to 17.5% of first quarter revenue versus 14.5% in the prior year quarter. Our other vertical grew 31% to 18.1% compared to 16% in the prior year quarter, driven by growth in our digital acquisition business. Retail and E-commerce grew 9% and represented 24.6% compared to 26.3% in the prior year quarter. Travel, Transportation, and Logistics grew 16% and Technology grew 10%, both remaining relatively consistent with the prior year quarter at 14% and 8% of revenue, respectively.

These increases were driven by continued growth in multiple offshore and onshore geographies and our continued ability to win significant new clients in these verticals. Conversely, our exposure to the lower-margin Telecommunications vertical decreased to 8.8% of revenue for the quarter versus 10.2% in the prior year quarter as revenue remained flat in this vertical. Revenues from the FinTech vertical were also relatively flat and represented 9.3% of first quarter revenue versus 11% in the prior year quarter.

Moving to cash flow, net cash generated from operating activities was a first quarter record of $16.3 million compared to $15.7 million for the prior year quarter, which was driven by an increase in our revenues and profitability. Our DSOs were 72 days, up from 69 days at the end of the last quarter and 71 days in the first quarter last year. We expect our DSOs to remain stable in the low to mid-70s on a go-forward basis.

Capital expenditures were $7.2 million, or 4.1% of revenue, for the first quarter of fiscal year '27, down slightly from $7.6 million, or 5.1% of revenue, in the prior year quarter. The capital expenditures during the quarter were driven by $4.6 million related to facility expansions in our offshore regions and $2.6 million to purchases of IT and telecommunications equipment to support growth. Free cash flow for the quarter was also a first quarter record inflow of $9.2 million compared to an inflow of $8 million in the prior year quarter. The increase was primarily driven by the increase in net cash generated from operating activities. We're proud to be achieving record cash flow levels while investing for high growth.

During the quarter, we repurchased approximately 123,000 shares for $4.4 million at an average price of $35.92, leaving $13.5 million on our share repurchase authorization. We ended the first quarter with $36.7 million of cash and debt of $1.7 million for net cash of $35 million, an improvement of $4.1 million compared to net cash of $30.9 million at the end of our last fiscal year.

As I mentioned earlier, fiscal year '27 is off to an exceptional start with first quarter performance that included records across nearly every key operating metric, including revenue, adjusted EBITDA, EPS, and free cash flow. Our financial results were driven by stellar growth from new logos and further augmented expansion in our embedded client base. This combination makes us stronger as we grow, underscoring the long-term and durable value of our differentiated strategy.

Looking ahead, this momentum gives us increased confidence in our outlook for fiscal year '27 to continue to drive double-digit growth and year-over-year margin expansion. In response, we are raising both revenue and adjusted EBITDA guidance for the year. Revenue is now expected to be in the range of $720 million to $735 million, up 12% to 14% from fiscal year '26 versus our previous guidance of $700 million to $715 million for 9% to 11% growth.

Adjusted EBITDA is now expected in the range of $96 million to $99 million, up 17% to 20% from fiscal year '26, versus our previous guidance of $90 million to $94 million for 9% to 14% growth. Capital expenditures for the year are expected to be approximately $30 million at the high end of the previous $25 million to $30 million range, given the increased growth expectations. This represents slightly over 4% of revenue, of which just approximately 1.5% is for maintenance CapEx and the rest for growth.

Looking ahead, we continue to believe in our business as well positioned to continue outperforming the industry and we are excited about the future of IBEX as we head into the second quarter of fiscal year '27 and beyond. With that, Bob and I will now take questions. Operator, please open the line. Thank you.

Operator

[Operator Instructions] And our first question comes from David Koning with Baird. You may proceed.

Phần hỏi đáp

David Koning

Yes. Hey, guys. Great job. You've turned into one of the fastest growers on our entire list in a market where people have worried that you would get displaced. So clearly you're doing a lot right.

I guess my question is, is the ability to just penetrate the wallets of your clients with new services something that you can actually win more business than they've ever spent with you before because you're bringing new solutions? So, like, are you actually opening up the market rather than AI being like a headwind at all?

Robert Dechant

Yes, Dave, great question. And thanks for joining on the call. Look, we have built a really good flywheel here. And your question about the embedded base clients is really spot on and accurate about how we're winning. We're going in, we're outperforming, the KPIs that we continually deliver on are higher than our competitors, and that's repeated. And over time, our clients just keep awarding us market share based on our ability to out-execute.

And we have numerous examples and that's why we give visibility to our growth with those clients. And it's strong growth, and it has been that way for a while. Now, most of these clients look like this: they have large outsourcing spends, $100 million, $800 million, up to $1 billion. That's all upside for us. That's all TAM for us to go after, which we continually do by our ability to out-execute them.

Now, that alone puts us in a really, really good position. I know I have to touch on, and we have the best revenue retention in the industry. Clients don't leave us. And so you have the back end shored up.

Now, the other element is our new logo engine is on fire, and it's gotten stronger as we continually articulate that we are the best BPO in the industry in delivering human agents. And we've been demonstrating that quarter-over-quarter for the last several years. But now when you add this AI solution on top of that, that gives our ability and the client the ability to select us to deliver that end-to-end solution, whether it starts with AI or whether it starts with human agents. But it evolves to that land and expand to both.

And then we move into new geographies. We move into additional services. And most of those clients have been sitting with the legacy players, the pack, as I like to call them, the guys that have serviced them for 15 to 20 years, and they're looking for better and we're winning. And so when you put the 2 of those together, we believe that we are able to create a business that will continue to grow double-digit.

Now let me touch on, 'cause you made the comment on AI and what's going to happen to volumes as a result of AI. Well, first and foremost, and we keep articulating this, when we're winning these new logos, the AI revenue and the human agent revenue is all incremental. And you put that together and that is accelerating our growth.

And then by delivering those solutions into our embedded base, we believe that that creates more revenue, higher-margin revenue for us in that embedded base client. Even though we may be, as we highlighted with PAL (Philippine Airlines) last call, same thing with a company like BJ's. Even though we're solving 20% to 40% of those interactions with AI, we're winning the market share game of the human agents.

So we feel like we have a powerful stacking of growth vectors that is putting us in unique space and significantly higher growth rates than anybody in this industry. And we believe that we are in a really good position to continue that. Sorry for the long answer, but there's a lot of complexity into that.

David Koning

Yes, no, that was great. Thank you. And maybe for Taylor, Q1 was a pretty huge margin quarter. You expanded margins a ton, and you really don't need to expand margins, maybe at all even, the rest of the year to hit your full year guidance. Are you being conservative just in how you're thinking about the rest of the year, or are you just going to invest a lot of the margin expansion away just to keep winning clients, keep investing in AI?

Taylor Greenwald

Yes. Thanks for the question, David. And so if you look at our guidance, our guidance implies 50 to 70 basis point improvement in our EBITDA margins in fiscal year '27 versus fiscal year '26, which is exactly what we want, right? Because if you look at the revenue guidance, it's up 12% to 14%, but our EBITDA guidance is up 17% to 20%. So we're getting good leverage throughout the P&L.

But it also implies that we will and we expect to see year-over-year EBITDA improvement throughout the year every quarter, not to the extent that we saw in Q1, but we do expect year-over-year improvement throughout each quarter for the remainder of the year.

David Koning

Got you. Thank you. And I guess finally just capital allocation, like – you haven't bought as much stock back, but you're generating good cash flow. Are you thinking of making acquisitions at this point?

Taylor Greenwald

Yes. You know, if you look at our capital allocation strategy, first and foremost, expanding capacity to meet the strong demand, right? And we get very good payback periods. Most of the capacity we're building out is in offshore regions and the payback period is about a year. So we're very excited to make those investments.

Secondly, as you pointed out, we continue share repurchases. I think we still have $13.5 million left in our current share purchase authorization, but we've repurchased over 30% of our shares in the past 3 years. And we continue to see that as a good investment as our business continues to grow.

From an acquisition standpoint, we're really laser-focused right now on growing our AI agent solutions and with our double-digit organic growth, which has been 7 quarters, will soon be 8 quarters, we don't feel the need to make acquisitions. If the perfect acquisition fell in our lap, like a certain geography or vertical market, we'd certainly take a look at it and listen. But I would not consider it a high priority of our capital allocation strategy right now.

David Koning

Got you. Thanks guys. Great job.

Taylor Greenwald

Yes, thanks. Thank you, Dave.

Operator

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

Robert Dechant

Well, thank you all for listening today. I want to take a moment to congratulate my team. They continue to deliver quarter after quarter, as you can see through our results, and prove that they're best in the industry. And their dedication and commitment to delivering for our clients puts us into the unique space in this industry as we further separate ourselves. So a shout-out to them for their commitment. And we look forward to talking in the next quarter as our business keeps chugging along. Thank you all.

Operator

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

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