Record Q3 growth as IBEX (NASDAQ: IBEX) raises 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
IBEX Limited reported strong results for its third fiscal quarter ended March 31, 2026 and raised full-year guidance. Revenue rose 16.8% to $164.4 million, driven by double-digit growth across HealthTech, Technology, Travel & Logistics, and Retail & E-commerce.
Net income increased to $13.3 million, with diluted EPS up 21.9% to $0.89. Adjusted EBITDA grew to $22.0 million, while free cash flow improved to $6.6 million. The company now expects fiscal 2026 revenue of $638–$642 million and adjusted EBITDA of $82–$84 million, and highlighted a new strategic AI partnership with Sierra.ai.
Positive
- Raised fiscal 2026 outlook: Revenue guidance increased to $638–$642 million (from $620–$630 million) and adjusted EBITDA guidance to $82–$84 million (from $80–$82 million), reflecting confidence supported by sustained double-digit growth and record adjusted EBITDA.
- Strong growth and profitability: Q3 revenue grew 16.8% to $164.4 million, net income rose 27.3% to $13.3 million, and diluted EPS increased 21.9% to $0.89, with continued positive free cash flow and a net cash position of $14.0 million.
Negative
- None.
Insights
IBEX delivered broad-based double-digit growth and raised full-year guidance.
IBEX posted Q3 revenue of $164.4M, up 16.8% year over year, with growth led by HealthTech and Technology. Net income rose to $13.3M and diluted EPS increased to $0.89, while adjusted EPS reached $0.91.
Profitability remained solid: adjusted EBITDA climbed to $22.0M, though the adjusted EBITDA margin eased slightly to 13.4%. Operating cash flow improved to $11.9M and free cash flow to $6.6M, and the company maintained net cash of $14.0M as of March 31, 2026.
Management raised fiscal 2026 revenue guidance to $638–$642M and adjusted EBITDA guidance to $82–$84M. The quarter also featured a strategic AI-focused partnership with Sierra.ai, which the company describes as already supporting new deal activity, alongside continued share repurchases of 140,300 shares for $4.5M.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 2026 revenue: $164.4 million
Q3 2026 net income: $13.3 million
Q3 2026 diluted EPS: $0.89
+5 more
8 metrics
Q3 2026 revenue
$164.4 million
Three months ended March 31, 2026; up 16.8% year over year
Q3 2026 net income
$13.3 million
Three months ended March 31, 2026; 27.3% growth vs prior year
Q3 2026 diluted EPS
$0.89
Three months ended March 31, 2026; up 21.9% year over year
Q3 2026 adjusted EBITDA
$22.0 million
Three months ended March 31, 2026; adjusted EBITDA margin 13.4%
Fiscal 2026 revenue guidance
$638–$642 million
Updated full-year revenue outlook for fiscal year 2026
Fiscal 2026 adjusted EBITDA guidance
$82–$84 million
Updated full-year adjusted EBITDA outlook for fiscal year 2026
Q3 2026 free cash flow
$6.6 million
Three months ended March 31, 2026; derived from $11.9M operating cash flow and $5.3M capex
Net cash balance
$14.0 million
Net cash as of March 31, 2026 from $15.4M cash and $1.4M debt
Key Terms
Adjusted EBITDA, free cash flow, non-GAAP, Adjusted net income, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA increased to $22.0 million compared to $19.4 million in the prior year quarter"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow was $6.6 million compared to $3.6 million in the prior year quarter"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
non-GAAP financial
"We present non-GAAP financial measures because we believe that they and other similar measures are widely used"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
Adjusted net income financial
"Non-GAAP adjusted net income increased to $13.6 million compared to $11.8 million in the prior year quarter"
Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.
net cash financial
"We define net cash as total cash and cash equivalents less debt"
Net cash is the amount of money a company has after subtracting any debts or obligations from its total cash holdings. It shows how much cash would remain if the company used its available funds to pay off its debts. For investors, positive net cash indicates financial health and flexibility, while negative net cash may suggest potential difficulties in meeting financial commitments.
forward-looking statements regulatory
"this press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Earnings Snapshot
Revenue: $164.4 million · Guidance included
Q3 2026
Revenue
$164.4 million
16.8% year-over-year
Net income
$13.3 million
27.3% year-over-year
Diluted EPS
$0.89
21.9% year-over-year
Adjusted EBITDA
$22.0 million
13.6% year-over-year
Guidance
Fiscal 2026 revenue expected at $638–$642 million and adjusted EBITDA at $82–$84 million, both raised from prior ranges.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________
FORM 8-K
____________________________________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2026
____________________________________________________________
(Exact name of registrant as specified in its charter)
____________________________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (202 ) 580-6200
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On May 6, 2026, IBEX Limited issued a press release announcing its financial results for its third fiscal quarter ended March 31, 2026.
A copy of the May 6, 2026 press release is attached hereto as Exhibit 99.1 to this current report on Form 8-K.
The information in this Item 2.02, including the exhibits attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
EXHIBIT INDEX
Exhibit No. Description
99.1 Press release announcing financial results for the third fiscal quarter ended March 31, 2026,
dated May 6, 2026
104 Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| IBEX LIMITED | ||||||||
| (Registrant) | ||||||||
Date: May 6, 2026 | /s/ Taylor Greenwald | |||||||
| (Signature) | ||||||||
| Name: | Taylor Greenwald | |||||||
| Title: | Chief Financial Officer | |||||||
Exhibit 99.1
IBEX Reports Record Quarterly Revenue and EPS, Raises Fiscal Year Guidance
•Record Revenue, Adjusted EBITDA, EPS, and Adjusted EPS
•Revenue grew 17% versus prior year quarter, fifth consecutive quarter of double-digit growth
•Diluted EPS grew 22% versus prior year quarter to $0.89, and adjusted EPS grew 11% to $0.91
•Raises Fiscal Year Revenue and Adjusted EBITDA Guidance
•Strategic partnership announced with Sierra AI
WASHINGTON, DC— May 6, 2026 —IBEX Limited (“ibex”) (Nasdaq: IBEX), a global leader in outsourced business services and AI-powered customer experience solutions, today announced financial results for its third fiscal quarter ended March 31, 2026.
| Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||||||||
| ($ millions, except per share amounts) | 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||||||||||||||||
| Revenue | $ | 164.4 | $ | 140.7 | 16.8 | % | $ | 479.8 | $ | 411.1 | 16.7 | % | |||||||||||||||||||||||
| Net income | $ | 13.3 | $ | 10.5 | 27.3 | % | $ | 37.6 | $ | 27.3 | 37.8 | % | |||||||||||||||||||||||
| Net income margin | 8.1 | % | 7.4 | % | 70 | bps | 7.8 | % | 6.6 | % | 120 | bps | |||||||||||||||||||||||
| Adjusted net income (1) | $ | 13.6 | $ | 11.8 | 15.2 | % | $ | 39.5 | $ | 30.4 | 29.8 | % | |||||||||||||||||||||||
| Adjusted net income margin (1) | 8.3 | % | 8.4 | % | (10) | bps | 8.2 | % | 7.4 | % | 80 | bps | |||||||||||||||||||||||
| Adjusted EBITDA (1) | $ | 22.0 | $ | 19.4 | 13.6 | % | $ | 62.2 | $ | 51.5 | 20.7 | % | |||||||||||||||||||||||
| Adjusted EBITDA margin (1) | 13.4 | % | 13.8 | % | (40) | bps | 13.0 | % | 12.5 | % | 50 | bps | |||||||||||||||||||||||
| Earnings per share - diluted (2) | $ | 0.89 | $ | 0.73 | 21.9 | % | $ | 2.54 | $ | 1.70 | 49.6 | % | |||||||||||||||||||||||
| Adjusted earnings per share - diluted (1,2) | $ | 0.91 | $ | 0.82 | 10.7 | % | $ | 2.67 | $ | 1.90 | 40.7 | % | |||||||||||||||||||||||
(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. | |||||||||||||||||||||||||||||||||||
“Ibex delivered another record-breaking quarter with revenue growth of 17% to $164.4 million, our fifth straight double-digit growth quarter, and adjusted EPS growth of 11%, adding to the momentum we’ve amassed over the last two years,” said Bob Dechant, ibex CEO. “Our strong results were again anchored by our two performance pillars: driving new wins with key logos and continued market share gains driven by our ability to deliver the highest levels of operational excellence. Going forward, we will continue to define the new era of BPO 3.0 with a strategy designed to make ourselves even more valuable, more capable, and more essential to existing and new clients alike.”
“To that end, we recently announced a landmark strategic partnership with Sierra.ai, the leading AI-powered customer experience platform. Through this partnership, ibex will integrate Sierra’s market-leading AI technology with our best-in-class CX expertise, tech integration, and deep analytics to design and deploy scalable, end-to-end, AI-powered CX solutions. We are positioned to provide best-in-class service that leverages the strengths of both automated and human-powered support, providing a truly end-to-end orchestration of the customer experience. Since signing this partnership, our sales teams have already seen both the volume and velocity of deal opportunities accelerate with some decisive early wins. We believe this collaboration will be transformative for our business and set ibex truly apart from the rest of our industry.”
Third Quarter Financial Performance
Revenue
•Revenue of $164.4 million, an increase of 16.8% from $140.7 million in the prior year quarter, was driven by broad-based growth across four verticals: HealthTech (+53.7%), Technology (+42.6%), Travel, Transportation and Logistics (+15.1%), and Retail & E-commerce (+8.3%), along with continued growth in the digital acquisition business.
Net Income and Earnings Per Share
•Net income increased to $13.3 million compared to $10.5 million in the prior year quarter. Net income was favorably impacted by revenue growth in our higher margin offshore regions and lower selling, general, and administrative expenses as a percentage of revenue.
•Net income margin increased to 8.1% compared to 7.4% in the prior year quarter.
•Diluted earnings per share increased to $0.89 compared to $0.73 in the prior year quarter.
•Non-GAAP adjusted net income increased to $13.6 million compared to $11.8 million in the prior year quarter (see Exhibit 1 for reconciliation).
•Non-GAAP adjusted diluted earnings per share increased to $0.91 compared to $0.82 in the prior year quarter (see Exhibit 1 for reconciliation).
Non-GAAP Adjusted EBITDA
•Adjusted EBITDA increased to $22.0 million compared to $19.4 million in the prior year quarter (see Exhibit 2 for reconciliation).
•Adjusted EBITDA margin was 13.4% compared to 13.8% in the prior year quarter (see Exhibit 2 for reconciliation).
Cash Flow and Balance Sheet
•Capital expenditures were $5.3 million, consistent with the prior year quarter.
•Cash flow from operating activities was $11.9 million compared to $8.8 million in the prior year quarter.
•Free cash flow was $6.6 million compared to $3.6 million in the prior year quarter (see Exhibit 3 for reconciliation).
•During the quarter, we repurchased 140,300 shares for $4.5 million.
•Net cash was $14.0 million, compared to net cash of $13.7 million as of June 30, 2025 (see Exhibit 4 for reconciliation).
Third Quarter Review and Fiscal 2026 Business Outlook
“Our strong financial results in fiscal year 2026 are being driven by our differentiated strategy and sustainable growth trends with our clients, giving us confidence in continued outperformance heading into fiscal year 2027. Our third quarter revenue was again led by meaningful growth in our higher margin services and vertical markets, particularly our robust growth in HealthTech. This combination of drivers led to a record quarterly adjusted EBITDA of $22.0 million,” said Taylor Greenwald, CFO of ibex.
“As we enter the fourth quarter, our healthy balance sheet and cash flows are enabling us to make thoughtful investments to support increased capacity for anticipated growth as well as to further extend our current AI leadership position. Reflective of our outstanding performance thus far and our forward momentum, we are raising our revenue and adjusted EBITDA guidance for the third time this year.”
Fiscal Year 2026 Guidance
• Revenue is expected to be in the range of $638 to $642 million, up from $620 to $630 million.
•Adjusted EBITDA is expected to be in the range of $82 to $84 million, up from $80 to $82 million.
•Capital expenditures are now expected to be in the range of $25 to $30 million, up from our previous range of $20 to $25 million, as a result of ongoing investment to meet increased demand in higher margin regions.
Conference Call and Webcast Information
IBEX Limited will host a conference call and live webcast to discuss its third quarter of fiscal year 2026 financial results at 4:30 p.m. Eastern Time today, May 6, 2026. 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 stock-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 is a global leader in outsourced business services and AI-powered customer experience solutions, enabling the world’s best brands to deliver truly differentiated experiences for their customers. Leveraging a global team of more than 36,000 human CX experts – powered by the best AI technology, decades of CX innovation, and deep business insights – ibex engineers seamless, end-to-end customer journeys from AI agents to human agents at scale across retail, e-commerce, healthcare, fintech, utilities, technology, logistics, and more. Discover more at ibex.co and connect with us on LinkedIn.
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,” “forecast,” 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; 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: ir@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, 2026 | June 30, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 15,409 | $ | 15,350 | |||||||
| Accounts receivable, net | 129,154 | 117,136 | |||||||||
| Prepaid expenses | 16,889 | 9,443 | |||||||||
| Due from related parties | — | 40 | |||||||||
| Tax advances and receivables | 2,057 | 1,522 | |||||||||
| Other current assets | 1,921 | 2,128 | |||||||||
| Total current assets | 165,430 | 145,619 | |||||||||
| Non-current assets | |||||||||||
| Property and equipment, net | 42,799 | 32,563 | |||||||||
| Operating lease assets | 54,054 | 62,276 | |||||||||
| Goodwill | 11,832 | 11,832 | |||||||||
| Deferred tax asset, net | 7,953 | 7,163 | |||||||||
| Other non-current assets | 15,179 | 13,762 | |||||||||
| Total non-current assets | 131,817 | 127,596 | |||||||||
| Total assets | $ | 297,247 | $ | 273,215 | |||||||
| Liabilities and stockholders' equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable and accrued liabilities | $ | 21,467 | $ | 18,692 | |||||||
| Accrued payroll and employee-related liabilities | 38,193 | 38,588 | |||||||||
| Current deferred revenue | 6,830 | 5,498 | |||||||||
| Current operating lease liabilities | 14,596 | 14,332 | |||||||||
| Current debt | 819 | 823 | |||||||||
| Due to related parties | — | 22 | |||||||||
| Income taxes payable | 2,890 | 1,986 | |||||||||
| Total current liabilities | 84,795 | 79,941 | |||||||||
| Non-current liabilities | |||||||||||
| Non-current deferred revenue | 1,832 | 1,130 | |||||||||
| Non-current operating lease liabilities | 45,038 | 53,804 | |||||||||
| Long-term debt | 572 | 796 | |||||||||
| Other non-current liabilities | 4,227 | 3,235 | |||||||||
| Total non-current liabilities | 51,669 | 58,965 | |||||||||
| Total liabilities | 136,464 | 138,906 | |||||||||
| Stockholders' equity | |||||||||||
| Common shares | 2 | 1 | |||||||||
| Treasury stock | (113,446) | (103,338) | |||||||||
| Additional paid-in capital | 224,225 | 218,241 | |||||||||
| Accumulated other comprehensive loss | (13,323) | (6,336) | |||||||||
| Retained earnings | 63,325 | 25,741 | |||||||||
| Total stockholders' equity | 160,783 | 134,309 | |||||||||
| Total liabilities and stockholders' equity | $ | 297,247 | $ | 273,215 | |||||||
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, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue | $ | 164,407 | $ | 140,736 | $ | 479,807 | $ | 411,135 | |||||||||||||||
| Cost of services (exclusive of depreciation and amortization presented separately below) | 115,614 | 96,017 | 338,820 | 284,820 | |||||||||||||||||||
| Selling, general and administrative | 27,467 | 27,061 | 81,547 | 78,982 | |||||||||||||||||||
| Depreciation and amortization | 5,170 | 4,329 | 14,298 | 12,984 | |||||||||||||||||||
| Total operating expenses | 148,251 | 127,407 | 434,665 | 376,786 | |||||||||||||||||||
| Income from operations | 16,156 | 13,329 | 45,142 | 34,349 | |||||||||||||||||||
| Interest income | 62 | 32 | 151 | 926 | |||||||||||||||||||
| Interest expense | (249) | (404) | (714) | (1,186) | |||||||||||||||||||
| Income before income taxes | 15,969 | 12,957 | 44,579 | 34,089 | |||||||||||||||||||
| Provision for income tax expense | (2,644) | (2,488) | (6,995) | (6,821) | |||||||||||||||||||
| Net income | $ | 13,325 | $ | 10,469 | $ | 37,584 | $ | 27,268 | |||||||||||||||
| Other comprehensive income | |||||||||||||||||||||||
| Foreign currency translation adjustments | $ | (1,123) | $ | 374 | $ | (2,704) | $ | 851 | |||||||||||||||
| Unrealized (loss) / gain on cash flow hedging instruments, net of tax | (1,679) | 385 | (4,283) | 571 | |||||||||||||||||||
| Total other comprehensive (loss) / income | (2,802) | 759 | (6,987) | 1,422 | |||||||||||||||||||
| Total comprehensive income | $ | 10,523 | $ | 11,228 | $ | 30,597 | $ | 28,690 | |||||||||||||||
| Net income per share | |||||||||||||||||||||||
| Basic | $ | 0.99 | $ | 0.79 | $ | 2.80 | $ | 1.80 | |||||||||||||||
| Diluted | $ | 0.89 | $ | 0.73 | $ | 2.54 | $ | 1.70 | |||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||
| Basic | 13,454 | 13,264 | 13,427 | 15,109 | |||||||||||||||||||
| Diluted | 14,994 | 14,404 | 14,780 | 16,135 | |||||||||||||||||||
IBEX LIMITED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
| Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||||
| Net income | $ | 13,325 | $ | 10,469 | $ | 37,584 | $ | 27,268 | |||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 5,170 | 4,329 | 14,298 | 12,984 | |||||||||||||||||||
| Noncash lease expense | 3,394 | 3,611 | 10,319 | 10,020 | |||||||||||||||||||
| Deferred income tax | 642 | (942) | (790) | (1,709) | |||||||||||||||||||
| Stock-based compensation expense | 788 | 1,601 | 4,452 | 3,506 | |||||||||||||||||||
| Allowance for expected credit losses | 88 | 105 | 313 | 428 | |||||||||||||||||||
| Change in assets and liabilities: | |||||||||||||||||||||||
| Decrease / (increase) in accounts receivable | 1,222 | 455 | (12,354) | (22,050) | |||||||||||||||||||
| Increase / (decrease) in prepaid expenses and other current assets | (8,167) | 1,405 | (10,373) | 392 | |||||||||||||||||||
| Increase / (decrease) in accounts payable and accrued liabilities | 312 | (6,120) | (545) | (3,042) | |||||||||||||||||||
| Decrease / (increase) in deferred revenue | (1,331) | (1,262) | 2,034 | 1,203 | |||||||||||||||||||
| Decrease in operating lease liabilities | (3,579) | (4,823) | (10,760) | (11,269) | |||||||||||||||||||
| Net cash inflow from operating activities | 11,864 | 8,828 | 34,178 | 17,731 | |||||||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||||
| Purchase of property and equipment | (5,273) | (5,267) | (24,644) | (13,216) | |||||||||||||||||||
| Net cash outflow from investing activities | (5,273) | (5,267) | (24,644) | (13,216) | |||||||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||||
| Proceeds from line of credit | 24,600 | 60,150 | 35,600 | 69,310 | |||||||||||||||||||
| Repayments of line of credit | (24,600) | (48,550) | (35,600) | (50,210) | |||||||||||||||||||
| Proceeds from the exercise of options | 466 | 2,809 | 3,814 | 3,534 | |||||||||||||||||||
| Taxes paid related to net share settlement of equity awards | (2,261) | — | (2,302) | — | |||||||||||||||||||
| Principal payments on finance leases | (284) | (286) | (833) | (639) | |||||||||||||||||||
| Purchase of treasury shares | (4,580) | (25,052) | (10,133) | (76,421) | |||||||||||||||||||
| Net cash outflow from financing activities | (6,659) | (10,929) | (9,454) | (54,426) | |||||||||||||||||||
| Effects of exchange rate difference on cash and cash equivalents | 17 | 139 | (21) | 168 | |||||||||||||||||||
| Net (decrease) / increase in cash and cash equivalents | (51) | (7,229) | 59 | (49,743) | |||||||||||||||||||
| Cash and cash equivalents, beginning | 15,460 | 20,206 | 15,350 | 62,720 | |||||||||||||||||||
| Cash and cash equivalents, ending | $ | 15,409 | $ | 12,977 | $ | 15,409 | $ | 12,977 | |||||||||||||||
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, foreign currency gains and losses, and stock-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) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net income | $ | 13,325 | $ | 10,469 | $ | 37,584 | $ | 27,268 | |||||||||||||||
| Net income margin | 8.1 | % | 7.4 | % | 7.8 | % | 6.6 | % | |||||||||||||||
| Severance costs | 814 | — | 973 | — | |||||||||||||||||||
| Foreign currency (gain) / loss | (913) | 121 | (2,678) | 666 | |||||||||||||||||||
| Stock-based compensation expense | 788 | 1,601 | 4,452 | 3,506 | |||||||||||||||||||
| Total adjustments | $ | 689 | $ | 1,722 | $ | 2,747 | $ | 4,172 | |||||||||||||||
| Tax impact of adjustments1 | (437) | (404) | (829) | (1,006) | |||||||||||||||||||
| Adjusted net income | $ | 13,577 | $ | 11,787 | $ | 39,502 | $ | 30,434 | |||||||||||||||
| Adjusted net income margin | 8.3 | % | 8.4 | % | 8.2 | % | 7.4 | % | |||||||||||||||
| Diluted earnings per share | $ | 0.89 | $ | 0.73 | $ | 2.54 | $ | 1.70 | |||||||||||||||
| Per share impact of adjustments to net income | 0.02 | 0.09 | 0.13 | 0.20 | |||||||||||||||||||
| Adjusted earnings per share | $ | 0.91 | $ | 0.82 | $ | 2.67 | $ | 1.90 | |||||||||||||||
| Weighted average diluted shares outstanding | 14,994 | 14,404 | 14,780 | 16,135 | |||||||||||||||||||
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, interest income, foreign currency gains and losses, and stock-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) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net income | $ | 13,325 | $ | 10,469 | $ | 37,584 | $ | 27,268 | |||||||||||||||
| Net income margin | 8.1 | % | 7.4 | % | 7.8 | % | 6.6 | % | |||||||||||||||
| Interest expense | 249 | 404 | 714 | 1,186 | |||||||||||||||||||
| Income tax expense | 2,644 | 2,488 | 6,995 | 6,821 | |||||||||||||||||||
| Depreciation and amortization | 5,170 | 4,329 | 14,298 | 12,984 | |||||||||||||||||||
| EBITDA | $ | 21,388 | $ | 17,690 | $ | 59,591 | $ | 48,259 | |||||||||||||||
| Severance costs | 814 | — | 973 | — | |||||||||||||||||||
| Interest income | (62) | (32) | (151) | (926) | |||||||||||||||||||
| Foreign currency (gain) / loss | (913) | 121 | (2,678) | 666 | |||||||||||||||||||
| Stock-based compensation expense | 788 | 1,601 | 4,452 | 3,506 | |||||||||||||||||||
| Adjusted EBITDA | $ | 22,015 | $ | 19,380 | $ | 62,187 | $ | 51,505 | |||||||||||||||
| Adjusted EBITDA margin | 13.4 | % | 13.8 | % | 13.0 | % | 12.5 | % | |||||||||||||||
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) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net cash provided by operating activities | $ | 11,864 | $ | 8,828 | $ | 34,178 | $ | 17,731 | |||||||||||||||
| Less: capital expenditures | 5,273 | 5,267 | 24,644 | 13,216 | |||||||||||||||||||
| Free cash flow | $ | 6,591 | $ | 3,561 | $ | 9,534 | $ | 4,515 | |||||||||||||||
EXHIBIT 4: Net cash
We define net cash as total cash and cash equivalents less debt.
| March 31, | June 30, | ||||||||||
| ($000s) | 2026 | 2025 | |||||||||
| Cash and cash equivalents | $ | 15,409 | $ | 15,350 | |||||||
| Debt | |||||||||||
| Current | $ | 819 | $ | 823 | |||||||
| Non-current | 572 | 796 | |||||||||
| Total debt | $ | 1,391 | $ | 1,619 | |||||||
| Net cash | $ | 14,018 | $ | 13,731 | |||||||
FAQ
How did IBEX (IBEX) perform financially in its Q3 2026 results?
IBEX delivered strong Q3 2026 results, with revenue rising 16.8% to $164.4 million and net income increasing to $13.3 million. Diluted EPS grew to $0.89, while adjusted EBITDA reached $22.0 million, reflecting solid profitability and continued operating leverage.
Did IBEX (IBEX) raise its fiscal year 2026 guidance?
Yes. IBEX raised its fiscal 2026 revenue guidance to $638–$642 million, up from $620–$630 million. It also lifted adjusted EBITDA guidance to $82–$84 million, compared with $80–$82 million previously, citing sustained growth trends and strong year-to-date performance.
What drove IBEX (IBEX) revenue growth in Q3 2026?
IBEX’s Q3 2026 revenue growth to $164.4 million was broad-based across key verticals. HealthTech grew 53.7%, Technology 42.6%, Travel, Transportation and Logistics 15.1%, and Retail & E-commerce 8.3%, supported by ongoing expansion in its digital acquisition business.
How profitable was IBEX (IBEX) in Q3 2026 on an adjusted basis?
On an adjusted basis, IBEX generated $13.6 million of adjusted net income and $22.0 million of adjusted EBITDA in Q3 2026. Adjusted EPS was $0.91, and the adjusted EBITDA margin was 13.4%, showing strong profitability despite a modest margin decline versus last year.
What is notable about IBEX (IBEX) cash flow and balance sheet in Q3 2026?
IBEX produced Q3 2026 operating cash flow of $11.9 million and free cash flow of $6.6 million. It ended March 31, 2026 with $15.4 million in cash and $14.0 million of net cash, while also repurchasing 140,300 shares for $4.5 million.
What strategic partnership did IBEX (IBEX) announce with its Q3 2026 results?
IBEX announced a strategic partnership with Sierra.ai, an AI-powered customer experience platform. IBEX plans to integrate Sierra’s AI technology with its own CX operations to deliver end-to-end AI-powered solutions, and reports early deal momentum and new wins since signing the partnership.