IBEX Limited's Q3 2025: Unpacking Contradictions in AI Revenue Impact, Margin Trends, and Sequential Growth

AI's impact on revenue and margin expansion, gross margin trends and strategic investments, sequential revenue trends, and AI revenue uplift and timeline are the key contradictions discussed in IBEX Limited's latest 2025Q3 earnings call.



Revenue and Organic Growth:
- IBEX reported record revenue of $140.7 million for Q3, up 11% year-over-year.
- This growth was driven by double-digit organic revenue growth at 11%, marking its best growth in more than 2 years.

Profitability and Margin Expansion:
- The company delivered adjusted EBITDA of $19.4 million at a margin of 13.8%, with a gross margin improvement of 50 basis points.
- Margin expansion was driven by growth in higher-margin offshore delivery locations and integrated omnichannel revenue.

India Market Entry and Strategic Milestones:
- IBEX achieved a major strategic milestone by entering the India market for a leading healthcare client.
- This expansion enhances the company's client delivery options and provides additional growth opportunities.

AI Solutions and Pipeline Expansion:
- IBEX won and launched several clients with its Wave iX AI solutions, such as AI Automate and AI Translate.
- The company has a robust AI pipeline with over 75 opportunities, expected to generate meaningful revenue and margin in FY '26.