IBEX 2025 Q4 Earnings Strong Performance as Net Income Surges 23.3%

IBEX (IBEX) reported its fiscal 2025 Q4 earnings on Sep 11th, 2025. The results exceeded expectations, with the company surpassing revenue and EBITDA guidance. IBEX also announced strong guidance for fiscal 2026, reflecting confidence in future performance.

Revenue
IBEX's total revenue for 2025 Q4 surged by 18.2% to $147.14 million, up from $124.53 million in the same period the previous year. The company's top three verticals—Retail & E-commerce (+24.5%), HealthTech (+19.0%), and Travel, Transportation and Logistics (+10.0%)—were key drivers of this growth. The digital acquisition business also contributed to the revenue expansion. For the full fiscal year 2025, revenue increased 9.8% to $558.3 million.

Earnings/Net Income
Net income for 2025 Q4 was $9.60 million, a slight decline of 2.5% from $9.85 million in the prior year quarter. However, adjusted net income rose significantly to $12.6 million, up 23.3% year over year. Earnings per share (EPS) climbed 24.2% to $0.72 in 2025 Q4 from $0.58 in 2024 Q4, reflecting continued earnings growth. The company also set a new record high for fiscal Q4 net income, the highest in 7 years. Adjusted earnings per share (EPS) increased by 50.0% to $0.87. Despite the modest decline in net income, the EPS growth indicates a strong earnings performance.

Price Action
The stock price of IBEX has shown positive momentum in recent trading sessions. It climbed 4.93% during the latest trading day, 3.57% during the most recent full trading week, and 6.10% month-to-date. This upward trend aligns with the company’s robust earnings performance and optimistic outlook.

Post Earnings Price Action Review
IBEX's CEO and Director, Robert Dechant, highlighted FY 2025 as a record year for the company, marked by 10% revenue growth to $558.3 million and 18% Q4 revenue growth. He attributed the success to the company’s BPO 2.0 strategy, which focused on culture, tech, and analytics. This strategy enabled new client wins and market share gains. Looking ahead, the CEO emphasized BPO 3.0, which will deploy AI agents to enhance operational efficiency and create a seamless customer journey from AI to human interactions. Dechant expressed optimism about FY 2026, citing strong free cash flow, a healthy balance sheet with net cash, and leadership in AI CX solutions. He underscored the momentum from the India expansion and digital-first strategies, projecting continued differentiation and growth.

Guidance
For FY 2026, IBEX expects revenue of $590 million to $610 million and adjusted EBITDA of $75 million to $79 million. In the first quarter, revenue is guided to $143 million to $146 million with adjusted EBITDA of $17.5 million to $19 million. Capital expenditures are projected at $20 million to $25 million for the year. The company anticipates stable DSO in the mid-70s and continued growth in digital and offshore services, supported by a strong balance sheet and strategic investments in AI and market expansion.

Additional News
On September 12, 2025, IBEX reported its strongest quarterly growth rate in nearly three years, with record fourth-quarter and full-year revenue, EPS, adjusted EPS, and free cash flow. Fourth-quarter revenue grew 18.2% compared to the prior year quarter, while full-year revenue rose 9.8%. Fourth-quarter EPS of $0.66 and adjusted EPS of $0.87 increased 19% and 50%, respectively. Full-year EPS of $2.36 and adjusted EPS of $2.75 grew 28% and 31%, respectively. The company exceeded the high end of its revenue and adjusted EBITDA guidance. Notable among the non-earnings news was IBEX’s significant share repurchase activity, including the $70 million TRGI share repurchase, representing 23% of its shares outstanding. Additionally, the company successfully entered the Indian market and continued to scale its AI-driven customer experience (CX) solutions, marking a milestone in its strategic expansion.