Financial Data and Key Metrics Changes - The company reported headline revenue growth of 17% and adjusted EPS growth of 46% in Q2 FY 2026, marking the fourth consecutive quarter of double-digit organic revenue growth [4][5] - Second quarter revenue was $164.2 million, an increase of 16.7% from $140.7 million in the prior year quarter [13] - Net income increased to $12.2 million from $9.3 million in the prior year quarter, driven by growth in higher margin offshore regions [16] - Fully diluted EPS was $0.83, up 45% from $0.57 in the prior year quarter [17] - Adjusted EBITDA increased to a record of $20.7 million, or 12.6% of revenue, from $16.5 million, or 11.8% of revenue, for the same period last year [18] Business Line Data and Key Metrics Changes - Revenue growth was driven by health tech (35.1%), travel, transportation, and logistics (20.2%), and retail and e-commerce (17.2%), while telecommunications declined by 23.1% [14] - Health tech increased to 17.4% of second quarter revenue versus 15.1% in the prior year quarter [20] - The telecommunications vertical decreased to 8.7% of revenue for the quarter versus 13.1% in the prior year quarter [21] Market Data and Key Metrics Changes - Offshore revenues comprised 52.3% of total revenue, with highest margin offshore revenues growing 16.2% compared to the prior year quarter [14] - Onshore revenues expanded to 24% of total revenue from 22% in the prior year quarter [15] Company Strategy and Development Direction - The company is focused on expanding its AI capabilities and strategic investments in high-margin verticals, particularly health tech [9][10] - Expansion into India is seen as a key growth vector, with nearly 1,000 agents operational and plans for broader revenue cycle management services [6][7] - The company aims to define the market for BPO 3.0, moving beyond traditional BPO services [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for the second half of the fiscal year, citing a structurally sound company with a market-leading growth profile [11] - The company anticipates raising revenue and adjusted EBITDA guidance for the year, now expecting revenue in the range of $620 million-$630 million [26] Other Important Information - The company repurchased approximately 78,000 shares for $2.9 million during the quarter, with a total of 170,000 shares repurchased for $5.6 million in the fiscal year [23] - The company ended the second quarter with $15.5 million of cash and a net cash position of $14 million [24] Q&A Session Summary Question: Demand and Impact of AI on the Company - Management stated that the company has established itself in the AI leadership position, which aids in winning new clients and operational execution [28][30] Question: Changes in Revenue Patterns Due to Business Mix - Management indicated that the mix has changed favorably, leading to a more consistent revenue flow throughout the year, rather than a massive spike in Q2 [32][34] Question: Gross Margins and Operating Expenses - Management acknowledged that while gross margins have decreased year-over-year, SG&A expenses have decreased as a percentage of revenue, indicating effective cost management [35][36]