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IBEX Reports Record Quarterly Revenue and EPS, Returns to Double-Digit Growth, Raises Fiscal Year Guidance

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IBEX Limited reported strong Q3 FY2025 financial results with record revenue of $140.7 million, up 11% year-over-year. The company achieved adjusted EPS of $0.82, an 18% increase from the prior year. Growth was driven by strong performance in key verticals: HealthTech (+20%), Travel & Logistics (+18.7%), and Retail & E-commerce (+14.6%). IBEX made a strategic entry into India, launching operations with a leading healthcare client. The company raised its FY2025 guidance, now expecting revenue of $540-545 million and adjusted EBITDA of $68-70 million. Additionally, the Board authorized a new $15 million share repurchase plan starting May 12, 2025. Net income reached $10.5 million with a 7.4% margin, while adjusted EBITDA was $19.4 million with a 13.8% margin.
IBEX Limited ha riportato solidi risultati finanziari nel terzo trimestre dell'esercizio 2025 con un fatturato record di 140,7 milioni di dollari, in crescita dell'11% rispetto all'anno precedente. L'azienda ha raggiunto un utile per azione rettificato di 0,82 dollari, con un aumento del 18% rispetto all'anno precedente. La crescita è stata trainata da una forte performance nei settori chiave: HealthTech (+20%), Viaggi e Logistica (+18,7%) e Retail & E-commerce (+14,6%). IBEX ha effettuato un ingresso strategico in India, avviando operazioni con un importante cliente nel settore sanitario. La società ha rivisto al rialzo le previsioni per l'esercizio 2025, prevedendo ora un fatturato tra 540 e 545 milioni di dollari e un EBITDA rettificato tra 68 e 70 milioni di dollari. Inoltre, il Consiglio di Amministrazione ha autorizzato un nuovo piano di riacquisto azionario da 15 milioni di dollari a partire dal 12 maggio 2025. L'utile netto ha raggiunto i 10,5 milioni di dollari con un margine del 7,4%, mentre l'EBITDA rettificato è stato di 19,4 milioni di dollari con un margine del 13,8%.
IBEX Limited reportó sólidos resultados financieros en el tercer trimestre del año fiscal 2025 con un ingreso récord de 140,7 millones de dólares, un aumento del 11% interanual. La compañía logró un EPS ajustado de 0,82 dólares, un incremento del 18% respecto al año anterior. El crecimiento fue impulsado por un sólido desempeño en sectores clave: HealthTech (+20%), Viajes y Logística (+18,7%) y Retail y Comercio Electrónico (+14,6%). IBEX realizó una entrada estratégica en India, iniciando operaciones con un cliente líder en el sector salud. La empresa elevó sus previsiones para el año fiscal 2025, esperando ahora ingresos de 540-545 millones de dólares y un EBITDA ajustado de 68-70 millones de dólares. Además, la Junta autorizó un nuevo plan de recompra de acciones por 15 millones de dólares a partir del 12 de mayo de 2025. El ingreso neto alcanzó los 10,5 millones de dólares con un margen del 7,4%, mientras que el EBITDA ajustado fue de 19,4 millones de dólares con un margen del 13,8%.
IBEX Limited는 2025 회계연도 3분기를 기록하며 전년 대비 11% 성장한 강력한 재무 실적을 보고했습니다. 회사는 조정 주당순이익(EPS) 0.82달러를 달성해 전년 대비 18% 증가했습니다. 성장은 주요 산업 분야인 헬스테크(+20%), 여행 및 물류(+18.7%), 소매 및 전자상거래(+14.6%)의 강력한 실적에 힘입은 것입니다. IBEX는 인도 시장에 전략적으로 진출하여 선도적인 헬스케어 고객과 함께 사업을 시작했습니다. 회사는 2025 회계연도 가이던스를 상향 조정하여 매출 5억 4,000만~5억 4,500만 달러, 조정 EBITDA 6,800만~7,000만 달러를 예상하고 있습니다. 또한 이사회는 2025년 5월 12일부터 시작되는 1,500만 달러 규모의 자사주 매입 계획을 승인했습니다. 순이익은 1,050만 달러로 7.4% 마진을 기록했으며, 조정 EBITDA는 1,940만 달러로 13.8% 마진을 보였습니다.
IBEX Limited a publié de solides résultats financiers pour le 3e trimestre de l'exercice 2025 avec un chiffre d'affaires record de 140,7 millions de dollars, en hausse de 11 % par rapport à l'année précédente. La société a réalisé un bénéfice par action ajusté de 0,82 dollar, soit une augmentation de 18 % par rapport à l'année précédente. La croissance a été portée par de bonnes performances dans les secteurs clés : HealthTech (+20 %), Voyage & Logistique (+18,7 %) et Retail & E-commerce (+14,6 %). IBEX a fait une entrée stratégique en Inde, lançant ses opérations avec un client majeur du secteur de la santé. L'entreprise a relevé ses prévisions pour l'exercice 2025, s'attendant désormais à un chiffre d'affaires compris entre 540 et 545 millions de dollars et un EBITDA ajusté entre 68 et 70 millions de dollars. De plus, le conseil d'administration a autorisé un nouveau plan de rachat d'actions de 15 millions de dollars à partir du 12 mai 2025. Le bénéfice net a atteint 10,5 millions de dollars avec une marge de 7,4 %, tandis que l'EBITDA ajusté s'est élevé à 19,4 millions de dollars avec une marge de 13,8 %.
IBEX Limited meldete starke finanzielle Ergebnisse für das 3. Quartal des Geschäftsjahres 2025 mit einem rekordverdächtigen Umsatz von 140,7 Millionen US-Dollar, was einem Anstieg von 11 % im Jahresvergleich entspricht. Das Unternehmen erzielte ein bereinigtes Ergebnis je Aktie (EPS) von 0,82 US-Dollar, ein Plus von 18 % gegenüber dem Vorjahr. Das Wachstum wurde durch starke Leistungen in den wichtigsten Branchen angetrieben: HealthTech (+20 %), Reise & Logistik (+18,7 %) und Einzelhandel & E-Commerce (+14,6 %). IBEX tätigte einen strategischen Markteintritt in Indien und startete dort mit einem führenden Gesundheitskunden. Das Unternehmen hob seine Prognose für das Geschäftsjahr 2025 an und erwartet nun einen Umsatz von 540-545 Millionen US-Dollar sowie ein bereinigtes EBITDA von 68-70 Millionen US-Dollar. Zudem genehmigte der Vorstand einen neuen Aktienrückkaufplan in Höhe von 15 Millionen US-Dollar, der am 12. Mai 2025 beginnt. Der Nettogewinn erreichte 10,5 Millionen US-Dollar bei einer Marge von 7,4 %, während das bereinigte EBITDA 19,4 Millionen US-Dollar mit einer Marge von 13,8 % betrug.
Positive
  • Record quarterly revenue growth of 11%, highest in ten quarters
  • Adjusted EPS increased 18% to $0.82
  • Strong vertical performance: HealthTech +20%, Travel +18.7%, Retail +14.6%
  • Strategic expansion into India market
  • Raised FY2025 guidance for revenue and adjusted EBITDA
  • New $15M share repurchase plan authorized
  • Net debt improved by $6.1M to $7.6M compared to December 2024
  • Four new signature client wins in Q3, total of 12 year-to-date
Negative
  • Net income margin decreased to 7.4% from 8.1% year-over-year
  • Adjusted EBITDA margin declined to 13.8% from 15.1% year-over-year
  • Free cash flow decreased to $3.6M from $9.7M in prior year quarter
  • Higher capital expenditures of $5.3M vs $1.7M in prior year quarter

Insights

IBEX delivers record revenue with 11% growth, raises guidance, expands to India, and announces new share repurchase program.

IBEX delivered impressive Q3 FY2025 results with revenue reaching $140.7 million, marking 11% growth year-over-year - their highest growth rate in ten quarters. This acceleration stems from strong performance across multiple verticals: HealthTech (+20.0%), Travel/Transportation/Logistics (+18.7%), and Retail/E-commerce (+14.6%).

The company effectively translated this revenue growth into shareholder value, with diluted EPS rising 27.5% to $0.73 and adjusted EPS increasing 17.9% to $0.82. However, adjusted EBITDA grew only 0.9% to $19.4 million, with margins contracting 130 basis points to 13.8%. This margin pressure appears linked to increased SG&A expenses, particularly costs associated with their strategic expansion into India.

The India entry represents a significant milestone that enhances IBEX's global delivery capabilities, launching with a healthcare client. Their client acquisition momentum remained strong with 4 new logo wins in Q3 (12 year-to-date), while days sales outstanding improved to 77 days.

While free cash flow decreased to $3.6 million from $9.7 million in the prior year quarter due to planned capital expenditures, the company's net debt position improved to $7.6 million from $13.7 million sequentially. This represents effective balance sheet management despite the substantial $70 million TRGI share repurchase completed earlier.

Management's confidence is evident in their decision to raise full-year guidance (revenue now $540-545 million, up from $525-535 million; adjusted EBITDA $68-70 million, up from $68-69 million) and authorize a new $15 million share repurchase plan. The 19% growth in offshore regions is particularly significant as these represent IBEX's highest-margin operations.

  • Quarterly revenue grew 11% versus prior year quarter - highest growth in ten quarters
  • Adjusted EPS of $0.82 - an increase of 18% to prior year quarter
  • Makes strategic entry into India - launching with leading healthcare client
  • Board authorizes a new $15 million share repurchase plan

WASHINGTON, May 08, 2025 (GLOBE NEWSWIRE) -- IBEX Limited (“ibex”), a leading provider in global business process outsourcing and end-to-end customer engagement technology solutions, today announced financial results for its third fiscal quarter ended March 31, 2025.

 Three months ended March 31, 2025 Nine months ended March 31, 2025
($ millions, except per share amounts) 2025   2024  Change  2025   2024  Change
Revenue$140,736  $126,795   11.0% $411,135  $384,038   7.1%
Net income$10,469  $10,310   1.5% $27,268  $23,810   14.5%
Net income margin 7.4%  8.1%  (70) bps   6.6%  6.2%  40 bps 
Adjusted net income (1)$11,787  $12,558   (6.1)%  $30,434  $28,156   8.1%
Adjusted net income margin (1) 8.4%  9.9%  (150) bps   7.4%  7.3%  10 bps 
Adjusted EBITDA (1)$19,380  $19,204   0.9% $51,505  $47,239   9.0%
Adjusted EBITDA margin (1) 13.8%  15.1%  (130) bps   12.5%  12.3%  20 bps 
Earnings per share - diluted (2)$0.73  $0.57   27.5% $1.70  $1.29   31.9%
Adjusted earnings per share - diluted (1,2)$0.82  $0.70   17.9% $1.90  $1.53   24.4%
            
(1)See accompanying Exhibits for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
(2)The current period percentages are calculated based on exact amounts, and therefore may not recalculate exactly using rounded numbers as presented.
 

“Marking the continuation of a strong first half for fiscal year 2025, I am proud to report yet another quarter of record financial results,” said Bob Dechant, ibex CEO. “Ibex returned to double-digit top-line revenue growth with 11%, our highest rate in ten quarters. Our growth continues to be driven by outstanding performance within our embedded base clients, new client wins, and our ability to drive innovative AI solutions across our clients. I am excited to report that our new logo team performed extremely well with four signature wins in the quarter for a total of 12 year to date. Importantly, we achieved a major strategic milestone in the quarter with the seamless launch for a leading Healthcare company in our newest location, India. Operating in this key location has been a strategic priority for our company and further enhances our client delivery options.”

“With the strength and trajectory of our business, we are raising guidance for both revenue and adjusted EBITDA, as well as announcing a newly authorized share repurchase plan, reflecting the board of directors’ and management’s confidence in ibex,” added Dechant.

Third Quarter Financial Performance
Revenue

  • Revenue of $140.7 million, an increase of 11.0% from $126.8 million in the prior year quarter. Growth was driven in our top three verticals; HealthTech (+20.0%), Travel, Transportation and Logistics (+18.7%), and Retail & E-commerce (+14.6%), along with growth in the digital acquisition business.

Net Income and Earnings Per Share

  • Net income increased slightly to $10.5 million compared to $10.3 million in the prior year quarter. Net income was favorably impacted by an increase in gross margin as a result of the impact of revenue growth particularly in our higher margin offshore regions, offset by increases in selling, general, and administrative, interest, and income tax expenses.
  • Diluted earnings per share increased to $0.73 compared to $0.57 in the prior year quarter. Earnings per share benefited from diluted shares outstanding declining to 14.4 million compared to 18.0 million in the prior year quarter as a result of our share repurchase activities.
  • Net income margin decreased to 7.4% compared to 8.1% in the prior year quarter.
  • Non-GAAP adjusted net income decreased to $11.8 million compared to $12.6 million in the prior year quarter (see Exhibit 1 for reconciliation).
  • Non-GAAP adjusted diluted earnings per share increased to $0.82 compared to $0.70 in the prior year quarter (see Exhibit 1 for reconciliation).

Adjusted EBITDA

  • Adjusted EBITDA increased to $19.4 million compared to $19.2 million in the prior year quarter (see Exhibit 2 for reconciliation).
  • Adjusted EBITDA margin decreased to 13.8% compared to 15.1% in the prior year quarter (see Exhibit 2 for reconciliation). This decrease was primarily driven by increases in selling, general, and administrative expenses including costs associated with our expansion into India.

Cash Flow and Balance Sheet

  • Capital expenditures were $5.3 million compared to $1.7 million in the prior year quarter. The planned increase in capital expenditures during this quarter was driven by capacity expansion to meet growing demand in our offshore and nearshore regions.
  • Cash flow from operating activities was $8.8 million compared to $11.4 million in the prior year quarter. Free cash flow was $3.6 million compared to $9.7 million in the prior year quarter (see Exhibit 3 for reconciliation). Improvement in days sales outstanding in the quarter to 77 days was offset by the planned increased capital expenditures to fund growth and investments for expansion into India.
  • Net debt was $7.6 million, an improvement of $6.1 million compared to net debt of $13.7 million as of December 31, 2024. This reflects the impact of our $70 million TRGI share repurchase when compared to our net cash position of $61.2 million as of June 30, 2024 (see Exhibit 4 for reconciliation).

“We achieved outstanding top and strong bottom line third quarter results. We delivered a multi-year high top-line performance with 11% revenue growth, over 7% fiscal year to date, with 19% growth in our highest margin offshore regions. Our adjusted EPS of $0.82, was up 18% over the prior year quarter, and was a record for our business. The continued expansion of our embedded client base and new client wins over the last year drove these excellent results,” said Taylor Greenwald, CFO of ibex.

“The upward trend in our results over the last few quarters not only enable strategic investments in our growing AI capabilities and sales resources, but also our in-quarter entry into the India market. Importantly, these results instill continued confidence in the execution of our strategy, enabling us to again raise our fiscal year guidance, commence the newly authorized share repurchase plan, and continue to return value to shareholders.”

Raised Fiscal Year 2025 Guidance

  • Revenue is expected to be in the range of $540 to $545 million versus a previous range of $525 to $535 million.
  • Adjusted EBITDA is expected to be in the range of $68 to $70 million versus a previous range of $68 to $69 million.
  • Capital expenditures are expected to remain in the range of $15 to $20 million.

Share Repurchase Plan
The board of directors (the “Board”) has authorized a share repurchase plan to commence May 12, 2025 under which the Company may repurchase up to $15 million of its shares over the next 12 months (the “Share Repurchase Plan”).

The Company's proposed repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations. The actual timing, number, and dollar amount of repurchase transactions will be subject to Rule 10b-18 and/or Rule 10b5-1 under the Securities Exchange Act of 1934.

The Board will review the Share Repurchase Plan periodically and may authorize adjustment of its terms and size or suspend or discontinue the plan. The Company expects to fund the repurchases under this plan with its existing cash balance.

The Share Repurchase Plan does not obligate the Company to acquire any particular amount of common shares, and the plan may be suspended or discontinued at any time at the Company’s discretion.

Conference Call and Webcast Information
IBEX Limited will host a conference call and live webcast to discuss its third quarter of fiscal year 2025 financial results at 4:30 p.m. Eastern Time today, May 8, 2025. We will also post to this section of our website the earning slides, which will accompany our conference call and live webcast, and encourage you to review the information that we make available on our website.

Live and archived webcasts can be accessed at: https://investors.ibex.co/.

Financial Information
This announcement does not contain sufficient information to constitute an interim financial report as defined in Financial Accounting Standards ASC 270, “Interim Reporting.” The financial information in this press release has not been audited.

Non-GAAP Financial Measures
We present non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. We also use these measures internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance, as we believe that these non-GAAP financial measures provide a more helpful depiction of our performance of the business by encompassing only relevant and manageable events, enabling us to evaluate and plan more effectively for the future. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies, have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of our operating results as reported in accordance with accounting principles generally accepted in the United States (“GAAP”). Non-GAAP financial measures and ratios are not measurements of our performance, financial condition or liquidity under GAAP and should not be considered as alternatives to operating profit or net income / (loss) or as alternatives to cash flow from operating, investing or financing activities for the period, or any other performance measures, derived in accordance with GAAP.

ibex is not providing a quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA to the most directly comparable GAAP measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, non-recurring expenses, foreign currency gains and losses, and share-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period.

About ibex
ibex helps the world’s preeminent brands more effectively engage their customers with services ranging from customer support, technical support, inbound/outbound sales, business intelligence and analytics, digital demand generation, and CX surveys and feedback analytics.

Forward Looking Statements
In addition to historical information, this press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to attract new business and retain key clients; our profitability based on our utilization, pricing and managing costs; the potential for our clients or potential clients to consolidate; our clients deciding to enter into or further expand their insourcing activities and current trends toward outsourcing services may reverse; general economic uncertainty in global markets and unfavorable economic conditions, including inflation, rising interest rates, recession, foreign exchange fluctuations and supply-chain issues; our ability to manage our international operations, particularly in the Philippines, Jamaica, Pakistan and Nicaragua; natural events, health epidemics, global geopolitical conditions, including developing or ongoing conflicts, widespread civil unrest, terrorist attacks and other attacks of violence involving any of the countries in which we or our clients operate; our ability to anticipate, develop and implement information technology solutions that keep pace with evolving industry standards and changing client demands, including the effective adoption of Artificial Intelligence into our offerings; our ability to recruit, engage, motivate, manage and retain our global workforce; our ability to comply with applicable laws and regulations, including those regarding privacy, data protection and information security, employment and anti-corruption; the effect of cyberattacks or cybersecurity vulnerabilities on our information technology systems; our ability to realize the anticipated strategic and financial benefits of our relationship with Amazon; the impact of tax matters, including new legislation and actions by taxing authorities; and other factors discussed in the “Risk Factors” described in our periodic reports filed with the U.S. Securities and Exchange Commission (“SEC”), including our annual reports on Form 10-K, quarterly reports on Form 10-Q, and past filings on Form 20-F, and any other risk factors we include in subsequent filings with the SEC. Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

IR Contact:  Michael Darwal, EVP, Investor Relations, ibex, michael.darwal@ibex.co
Media Contact:  Daniel Burris, VP, Marketing and Communication, ibex, daniel.burris@ibex.co

 
IBEX LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(in thousands)
 
 March 31,
2025
 June 30,
2024
Assets   
Current assets   
Cash and cash equivalents$12,977  $62,720 
Accounts receivable, net 120,035   98,366 
Prepaid expenses 8,103   7,712 
Due from related parties 50   192 
Tax advances and receivables 4,976   9,080 
Other current assets 2,523   1,888 
Total current assets 148,664   179,958 
    
Non-current assets   
Property and equipment, net 30,481   29,862 
Operating lease assets 65,726   59,145 
Goodwill 11,832   11,832 
Deferred tax asset, net 5,994   4,285 
Other non-current assets 12,034   8,822 
Total non-current assets 126,067   113,946 
Total assets$274,731  $293,904 
    
Liabilities and stockholders' equity   
Current liabilities   
Accounts payable and accrued liabilities$18,430  $16,719 
Accrued payroll and employee-related liabilities 29,653   30,674 
Current deferred revenue 6,019   4,749 
Current operating lease liabilities 14,225   12,051 
Current debt 19,862   660 
Due to related parties    60 
Income taxes payable 821   6,083 
Total current liabilities 89,010   70,996 
    
Non-current liabilities   
Non-current deferred revenue 1,060   1,128 
Non-current operating lease liabilities 56,944   53,441 
Long-term debt 735   867 
Other non-current liabilities 2,801   1,673 
Total non-current liabilities 61,540   57,109 
Total liabilities 150,550   128,105 
    
Stockholders' equity   
Common Stock 1   2 
Additional paid-in capital 216,184   210,200 
Treasury stock (101,658)  (25,367)
Accumulated other comprehensive loss (6,491)  (7,913)
Retained earnings / (deficit) 16,145   (11,123)
Total stockholders' equity 124,181   165,799 
Total liabilities and stockholders' equity$274,731  $293,904 
        


IBEX LIMITED AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(Unaudited)
(in thousands, except per share data)
 
 Three Months Ended March 31, Nine Months Ended March 31,
  2025   2024   2025   2024 
Revenue$140,736  $126,795  $411,135  $384,038 
        
Cost of services (exclusive of depreciation and amortization presented separately below) 96,017   87,083   284,820   271,163 
Selling, general and administrative 27,061   23,565   78,982   71,462 
Depreciation and amortization 4,329   4,865   12,984   14,853 
Total operating expenses 127,407   115,513   376,786   357,478 
Income from operations 13,329   11,282   34,349   26,560 
        
Interest income 32   431   926   1,529 
Interest expense (404)  (124)  (1,186)  (339)
Income before income taxes 12,957   11,589   34,089   27,750 
        
Provision for income tax expense (2,488)  (1,279)  (6,821)  (3,940)
Net income$10,469  $10,310  $27,268  $23,810 
        
Other comprehensive income       
Foreign currency translation adjustments$374  $(288) $851  $(310)
Unrealized gain / (loss) on cash flow hedging instruments, net of tax 385   (131)  571   70 
Total other comprehensive income / (loss) 759   (419)  1,422   (240)
Total comprehensive income$11,228  $9,891  $28,690  $23,570 
        
Net income per share       
Basic$0.79  $0.59  $1.80  $1.33 
Diluted$0.73  $0.57  $1.70  $1.29 
        
Weighted average common shares outstanding       
Basic 13,264   17,468   15,109   17,880 
Diluted 14,404   18,036   16,135   18,458 
                


IBEX LIMITED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
 
 Three Months Ended March 31, Nine Months Ended March 31,
  2025   2024   2025   2024 
CASH FLOWS FROM OPERATING ACTIVITIES       
Net income$10,469  $10,310  $27,268  $23,810 
Adjustments to reconcile net income to net cash provided by operating activities:       
Depreciation and amortization 4,329   4,865   12,984   14,853 
Noncash lease expense 3,611   3,386   10,020   9,908 
Warrant contra revenue    299      893 
Deferred income tax (942)  290   (1,709)  586 
Share-based compensation expense 1,601   466   3,506   2,741 
Allowance of expected credit losses 105   56   428   62 
Impairment losses    1,257      1,257 
Change in assets and liabilities:       
Decrease / (increase) in accounts receivable 455   1,395   (22,050)  (16,941)
Decrease / (increase) in prepaid expenses and other current assets 1,405   (3,158)  392   (5,350)
Increase in accounts payable and accrued liabilities (6,120)  (2,880)  (3,042)  (2,336)
(Decrease) / increase in deferred revenue (1,262)  (1,399)  1,203   (1,098)
Decrease in operating lease liabilities (4,823)  (3,456)  (11,269)  (9,907)
Net cash inflow from operating activities 8,828   11,431   17,731   18,478 
        
CASH FLOWS FROM INVESTING ACTIVITIES       
Purchase of property and equipment (5,267)  (1,691)  (13,216)  (6,635)
Net cash outflow from investing activities (5,267)  (1,691)  (13,216)  (6,635)
        
CASH FLOWS FROM FINANCING ACTIVITIES       
Proceeds from line of credit 60,150   57   69,310   153 
Repayments of line of credit (48,550)  (57)  (50,210)  (205)
Proceeds from the exercise of options 2,809   351   3,534   362 
Principal payments on finance leases (286)  (138)  (639)  (342)
Purchase of treasury shares (25,052)  (8,277)  (76,421)  (18,551)
Net cash outflow from financing activities (10,929)  (8,064)  (54,426)  (18,583)
Effects of exchange rate difference on cash and cash equivalents 139   (27)  168   (24)
Net (decrease) / increase in cash and cash equivalents (7,229)  1,649   (49,743)  (6,764)
Cash and cash equivalents, beginning 20,206   49,016   62,720   57,429 
Cash and cash equivalents, ending$12,977  $50,665  $12,977  $50,665 
        
IBEX LIMITED AND SUBSIDIARIES
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
        

EXHIBIT 1: Adjusted net income, adjusted net income margin, and adjusted earnings per share

We define adjusted net income as net income before the effect of the following items: severance costs, impairment losses, warrant contra revenue, foreign currency gain / loss, and share-based compensation expense, net of the tax impact of such adjustments. We define adjusted net income margin as adjusted net income divided by revenue. We define adjusted earnings per share as adjusted net income divided by weighted average diluted shares outstanding.

The following table provides a reconciliation of net income to adjusted net income, net income margin to adjusted net income margin, and diluted earnings per share to adjusted earnings per share for the periods presented:

 Three Months Ended March 31,
 Nine Months Ended March 31,
($000s, except per share amounts) 2025   2024   2025   2024 
Net income$10,469  $10,310  $27,268  $23,810 
Net income margin 7.4%  8.1%  6.6%  6.2%
        
Severance costs    1,506      1,506 
Impairment losses    1,257      1,257 
Warrant contra revenue    299      893 
Foreign currency loss / (gain) 121   (471)  666   (571)
Share-based compensation expense 1,601   466   3,506   2,741 
Total adjustments$1,722  $3,057  $4,172  $5,826 
Tax impact of adjustments1 (404)  (809)  (1,006)  (1,480)
Adjusted net income$11,787  $12,558  $30,434  $28,156 
Adjusted net income margin 8.4%  9.9%  7.4%  7.3%
        
Diluted earnings per share$0.73  $0.57  $1.70  $1.29 
Per share impact of adjustments to net income 0.09   0.12   0.20   0.24 
Adjusted earnings per share$0.82  $0.70  $1.90  $1.53 
        
Weighted average diluted shares outstanding 14,404   18,036   16,135   18,458 
        

_______________
1The tax impact of each adjustment is calculated using the effective tax rate in the relevant jurisdictions.

EXHIBIT 2:  EBITDA, adjusted EBITDA, and adjusted EBITDA margin

EBITDA is a non-GAAP profitability measure that represents net income before the effect of the following items: interest expense, income tax expense, and depreciation and amortization. Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before the effect of the following items: severance costs, impairment losses, interest income, warrant contra revenue, foreign currency gain / loss, and share-based compensation expense. Adjusted EBITDA margin is a non-GAAP profitability measure that represents adjusted EBITDA divided by revenue.

The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA and net income margin to adjusted EBITDA margin for the periods presented:

 Three Months Ended March 31,Nine Months Ended March 31,
($000s) 2025   2024   2025   2024 
Net income$10,469  $10,310  $27,268  $23,810 
Net income margin 7.4%  8.1%  6.6%  6.2%
        
Interest expense 404   124   1,186   339 
Income tax expense 2,488   1,279   6,821   3,940 
Depreciation and amortization 4,329   4,865   12,984   14,853 
EBITDA$17,690  $16,578  $48,259  $42,942 
Severance costs    1,506      1,506 
Impairment losses    1,257      1,257 
Interest income (32)  (431)  (926)  (1,529)
Warrant contra revenue    299      893 
Foreign currency loss / (gain) 121   (471)  666   (571)
Share-based compensation expense 1,601   466   3,506   2,741 
Adjusted EBITDA$19,380  $19,204  $51,505  $47,239 
        
Adjusted EBITDA margin 13.8%  15.1%  12.5%  12.3%
        

EXHIBIT 3: Free cash flow

We define free cash flow as net cash provided by operating activities less capital expenditures.

 Three Months Ended March 31,Nine Months Ended March 31,
($000s) 2025   2024   2025   2024 
Net cash provided by operating activities$8,828  $11,431  $17,731  $18,478 
Less: capital expenditures 5,267   1,691   13,216   6,635 
Free cash flow$3,561  $9,740  $4,515  $11,843 
                

EXHIBIT 4: Net (debt) / cash

We define net (debt) / cash as total cash and cash equivalents less debt.

 March 31, June 30,
($000s) 2025   2024 
Cash and cash equivalents$12,977  $62,720 
    
Debt   
Current$19,862  $660 
Non-current 735   867 
Total debt$20,597  $1,527 
Net (debt) / cash$(7,620) $61,193 
        

FAQ

What were IBEX's Q3 2025 earnings results?

IBEX reported Q3 FY2025 revenue of $140.7M (up 11%), net income of $10.5M, and adjusted EPS of $0.82 (up 18% YoY). The company achieved adjusted EBITDA of $19.4M with a 13.8% margin.

Why did IBEX stock announce a share repurchase program?

IBEX announced a $15 million share repurchase program starting May 12, 2025, reflecting the board's and management's confidence in the company's performance and commitment to returning value to shareholders.

What is IBEX's revenue guidance for fiscal year 2025?

IBEX raised its FY2025 revenue guidance to $540-545 million from the previous range of $525-535 million, and adjusted EBITDA guidance to $68-70 million from $68-69 million.

How did IBEX's key business verticals perform in Q3 2025?

IBEX's key verticals showed strong growth: HealthTech grew 20%, Travel, Transportation and Logistics increased 18.7%, and Retail & E-commerce rose 14.6%.

What is significant about IBEX's expansion into India?

IBEX's entry into India represents a strategic milestone, launching operations with a leading healthcare company and enhancing their client delivery options in this key market.
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