Group 1 - Adobe Inc. reported third-quarter earnings of $5.31 per share, exceeding the analyst estimate of $5.18, with quarterly revenue of $5.99 billion, surpassing the Street estimate of $5.91 billion, leading to a 2.6% increase in shares to $359.65 in after-hours trading [2] - RH reported second-quarter earnings of $2.93 per share, falling short of the analyst estimate of $3.20, with quarterly revenue of $899.15 million, missing the Street estimate of $904.64 million, resulting in a 6.8% decline in shares to $212.73 in after-hours trading [2] - Huize Holding Ltd. will release its second-quarter unaudited financial results, with shares jumping 116.3% to $6.12 in after-hours trading [2] - Ibex Ltd reported better-than-expected fourth-quarter financial results and provided strong FY26 sales guidance, causing shares to surge 27% to $38.69 in after-hours trading [2] - Frequency Electronics Inc. reported disappointing first-quarter financial results, leading to a 9.8% drop in shares to $31.00 in after-hours trading [2]

IBEX (NasdaqGM:IBEX) Q4 2025 Earnings Call September 11, 2025 04:30 PM ET Company ParticipantsBob Dechant - CEOTaylor Greenwald - CFOMichael Darwal - Head of Investor RelationsConference Call ParticipantsDavid Koning - AnalystOperatorWelcome to the IBEX Fourth Quarter Full Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 ...

IBEX (NasdaqGM:IBEX) Q4 2025 Earnings Call September 11, 2025 04:30 PM ET Company ParticipantsBob Dechant - CEOTaylor Greenwald - CFOMichael Darwal - Head of Investor RelationsConference Call ParticipantsDavid Koning - AnalystOperatorWelcome to the IBEX Fourth Quarter Full Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 ...

Financial Data and Key Metrics Changes - Fiscal year 2025 revenue reached $558.3 million, a 10% increase from the previous year, with Q4 revenues rising 18% year-over-year to $147.1 million [7][12] - Adjusted EBITDA for FY 2025 was $72 million, up more than 10% from the prior year, with a record adjusted EPS of $2.75, reflecting a 31% increase [8][20] - Free cash flow for Q4 was $23 million, marking the strongest quarter ever, and total free cash flow for the year was $27 million [8][24] Business Line Data and Key Metrics Changes - Revenue growth was driven by retail and e-commerce (25% growth), health tech (19%), and travel, transportation, and logistics (10%) [12] - Digital and omnichannel services represented 82% of total revenue, up from 77% in the prior year, with a growth rate of 25% [12][18] - Offshore revenue grew 17% year-over-year, comprising 49% of total revenue, while onshore revenue increased 13% [12][18] Market Data and Key Metrics Changes - The fintech vertical's revenue share decreased to 10.6% from 13.7% year-over-year, while retail and e-commerce increased to 25.3% [17] - The company experienced growth in both onshore and offshore regions, with onshore revenue making up 24% of total revenue [18] Company Strategy and Development Direction - The company has transitioned to BPO 3.0, focusing on AI solutions to enhance customer experience and operational efficiency [6][10] - The strategy emphasizes a blend of culture, technology (WaveX), and analytics to outperform competitors and capture market share [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue outperforming the market, citing a strong balance sheet with zero net debt and robust free cash flow generation [9][10] - The company anticipates revenue for FY 2026 to be between $590 million and $610 million, with adjusted EBITDA expected to range from $75 million to $79 million [24] Other Important Information - The company has successfully entered the Indian market, marking a significant milestone in its expansion strategy [8] - Capital expenditures for FY 2025 were $18 million, up from $9 million in the prior year, driven by demand in high-margin regions [22] Q&A Session Summary Question: Insights on Q4 performance and any one-time impacts - Management confirmed that the growth in Q4 was sustainable and driven by market share gains and strong operational performance [30] Question: Commentary on the impact of Gen AI - Management indicated that while there are opportunities for automation, owning the entire customer journey is crucial, and the company is well-positioned to leverage AI solutions [35][36]

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ibex Q4 FY2025 Earnings Call Built for what's next. Disclaimer This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation, other than statements of historical facts, are forward-looking statements. The words "believe," "estimate," "expect," "may," "will" and similar expressions are intended to identify forward-looking statements. Such forward- looking statements include, but are not limited t ...

[Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section outlines that the Form 10-K contains forward-looking statements, which are not guarantees of future performance and are subject to various risks and uncertainties detailed in the 'Risk Factors' section [Purpose and Risks of Forward-Looking Statements](index=4&type=section&id=4.1%20Purpose%20and%20Risks) This section clarifies that the Form 10-K contains forward-looking statements based on current expectations and assumptions, which are not guarantees of future performance, and highlights that actual results could differ materially due to known and unknown risks and uncertainties, as detailed in the 'Risk Factors' section - Forward-looking statements are based on current expectations and assumptions, not guarantees of performance, and involve **known and unknown risks and uncertainties**[12](index=12&type=chunk) - Important factors that could cause actual results to differ materially are disclosed under 'Risk Factors' in this Form 10-K[13](index=13&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statement unless required by law[14](index=14&type=chunk) [Key Factors Affecting Future Results](index=4&type=section&id=4.2%20Key%20Factors%20Affecting%20Future%20Results) Key factors that could cause actual results to differ from expectations include the ability to attract and retain clients, profitability management, client consolidation or insourcing, general economic conditions, international operations management, natural events, technology adoption (including AI), workforce management, regulatory compliance, cybersecurity, and tax matters - Ability to attract new business and retain key clients[15](index=15&type=chunk) - Profitability based on utilization, pricing, and cost management[15](index=15&type=chunk) - Potential for client consolidation or expansion of insourcing activities[15](index=15&type=chunk) - General economic uncertainty, including inflation, interest rates, recession, and foreign exchange fluctuations[15](index=15&type=chunk) - Ability to manage international operations, particularly in the Philippines, Jamaica, Pakistan, and Nicaragua[15](index=15&type=chunk) - Impact of natural events, health epidemics, geopolitical conditions, and cyberattacks[15](index=15&type=chunk) - Ability to anticipate, develop, and implement information technology solutions, including Artificial Intelligence (AI)[15](index=15&type=chunk) - Ability to recruit, engage, motivate, manage, and retain the global workforce[15](index=15&type=chunk) - Compliance with applicable laws and regulations, including privacy, data protection, and information security[15](index=15&type=chunk) - Impact of tax matters, including new legislation and actions by taxing authorities[15](index=15&type=chunk) Part I [ITEM 1. BUSINESS](index=7&type=section&id=ITEM%201.%20BUSINESS) IBEX Limited provides technology-enabled customer lifecycle experience (CLX) solutions, leveraging its Wave iX platform, global delivery model, and agent-first culture to serve over 140 clients in the BPO industry - IBEX delivers innovative BPO, smart digital marketing, online acquisition technology, and end-to-end customer engagement solutions[28](index=28&type=chunk) - The company serves more than **140 clients**, leveraging its proprietary technology platform, company culture, and operational excellence[29](index=29&type=chunk) - As of June 30, 2025, IBEX operates **30 delivery centers** with approximately **33,000 employees** globally[38](index=38&type=chunk) [Company Overview](index=7&type=section&id=7.1%20Company%20Overview) IBEX Limited offers innovative business process outsourcing (BPO), digital marketing, and end-to-end customer engagement solutions to over 140 clients - IBEX Limited provides innovative business process outsourcing (BPO), smart digital marketing, online acquisition technology, and end-to-end customer engagement solutions[28](index=28&type=chunk) - The company helps over **140 clients** create innovative and differentiated customer experiences to increase loyalty, enhance brand awareness, and drive revenue[29](index=29&type=chunk) [Service Offerings](index=7&type=section&id=7.2%20Service%20Offerings) IBEX provides integrated technology-enabled customer lifecycle experience (CLX) solutions, including customer service, technical support, and digital marketing for customer acquisition - IBEX offers end-to-end technology-enabled customer lifecycle experience (CLX) solutions through an integrated platform[30](index=30&type=chunk) - The 'Connect' business delivers customer service, technical support, revenue generation, and back-office services via an omni-channel CX model[31](index=31&type=chunk) - The 'ibex Digital' suite provides digital marketing, e-commerce technology, and platform solutions for customer acquisition, alongside CX services for measuring and managing customer experiences[32](index=32&type=chunk) [Culture](index=7&type=section&id=7.3%20Culture) IBEX fosters an 'agent-first' culture through branded sites, technology-enabled recruiting, and engagement programs, achieving an Employee Net Promoter Score (eNPS) of 77 - IBEX is built around an **'agent-first' culture**, supported by branded sites, technology-enabled recruiting, and year-round employee engagement programs[33](index=33&type=chunk) - The company achieved an Employee Net Promoter Score (**eNPS) of 77** and has been recognized as a **top employer by Forbes and Newsweek in 2025**[33](index=33&type=chunk) [Technology](index=8&type=section&id=8.1%20Technology) The Wave iX technology platform, with its three-pronged AI strategy, underpins IBEX's service offerings to enhance agent interactions, client CX, and overall performance - The **Wave iX technology platform** is the foundation for IBEX's service offerings, featuring a **three-pronged AI strategy** to enhance agent interactions, client CX, and overall performance[34](index=34&type=chunk) - Wave iX integrates **AI-powered solutions** for hyper-personalized interactions, automation, and customized client solutions, deployed across most of the client portfolio[36](index=36&type=chunk)[37](index=37&type=chunk) [Flexible Operating Delivery Model](index=8&type=section&id=8.2%20Flexible%20Operating%20Delivery%20Model) IBEX employs a global delivery model with 30 centers and approximately 33,000 employees across onshore, nearshore, and offshore locations, including work-at-home capabilities - IBEX operates a **global delivery model** with onshore (U.S.), nearshore (Nicaragua, Honduras, Jamaica), and offshore (Philippines, Pakistan, India) customer experience centers, including work-at-home capabilities[38](index=38&type=chunk) - As of June 30, 2025, the company has **30 delivery centers** and approximately **33,000 employees**, with **97% of on-site capacity** in high-growth, high-margin offshore and nearshore geographies[38](index=38&type=chunk)[42](index=42&type=chunk) [Strategic Approach](index=9&type=section&id=9.1%20Strategic%20Approach) IBEX focuses on delivering exceptional customer experiences through innovative technology, operational excellence, a strong culture, and a client-devoted 'land and expand' strategy - IBEX prioritizes delivering exceptional customer experiences and has transformed into a **technology-led provider**, focusing on clients who view **CX as a competitive differentiator**[43](index=43&type=chunk)[44](index=44&type=chunk) - The growth strategy is based on **four pillars**: innovative technology, best-in-class operations, high-performing company culture, and a client-devoted mentality, utilizing a **'land and expand' approach**[45](index=45&type=chunk)[46](index=46&type=chunk)[49](index=49&type=chunk) [Our Clients](index=9&type=section&id=9.2%20Our%20Clients) IBEX partners with growing 'Digital-First' and established 'Blue Chip' companies across diverse verticals, maintaining high client retention and a Net Promoter Score (NPS) of 68 - IBEX partners with growing companies and established **Fortune 500 brands** across various verticals (Retail & E-commerce, HealthTech, Telecommunication, FinTech, Travel, Technology)[48](index=48&type=chunk) - Clients are categorized as **'Digital-First Companies'** (fast-growing, tech/e-commerce) and **'Blue Chip Companies'** (large customer bases, seeking digital transformation)[50](index=50&type=chunk)[51](index=51&type=chunk) - The company maintains **high client retention rates** and a **client Net Promoter Score (NPS) of 68**, reflecting strong relationships[53](index=53&type=chunk) [Industry Overview and Trends](index=10&type=section&id=10.1%20Industry%20Overview%20and%20Trends) The BPO industry is evolving towards technology-enabled solutions, with increasing integration of AI, a focus on customer experience, and demand for integrated end-to-end partners - The BPO industry is shifting from labor arbitrage to **technology-enabled solutions**, with Blue Chip clients increasingly evaluating **AI-enabled technologies**[55](index=55&type=chunk)[56](index=56&type=chunk) - Prioritization of Customer Experience (CX)[58](index=58&type=chunk)[59](index=59&type=chunk) - Focus on Consumer Centricity & Customer Lifetime Value (LTV)[58](index=58&type=chunk)[59](index=59&type=chunk) - Outsourcing across the entire operational value chain[58](index=58&type=chunk)[59](index=59&type=chunk) - Increasing integration of AI to enhance service delivery, including generative AI for automation and insights[58](index=58&type=chunk)[59](index=59&type=chunk) - Demand for integrated end-to-end partners offering unified solutions[58](index=58&type=chunk)[59](index=59&type=chunk) - Preference for 'Bestshore' flexible delivery models (onshore, nearshore, offshore, remote)[58](index=58&type=chunk)[59](index=59&type=chunk) - Heightened focus on Data Protection & Security[58](index=58&type=chunk)[59](index=59&type=chunk) - Integration of Data and Analytics into core service offerings[58](index=58&type=chunk)[59](index=59&type=chunk) [Sales and Marketing](index=12&type=section&id=12.1%20Sales%20and%20Marketing) Sales and marketing efforts focus on driving awareness, customer acquisition, and expanding existing client relationships through a 'land and expand' strategy across key verticals - Sales and marketing focus on driving awareness, customer acquisition, and expanding existing client relationships through a **'land and expand' strategy**[60](index=60&type=chunk) - Efforts target **key market verticals** (Retail & E-commerce, HealthTech, FinTech, Technology, Travel, Telecommunications) and **key decision-makers** (CDO, CIO, CXO, CCO, CMO)[61](index=61&type=chunk)[69](index=69&type=chunk) - The sales process for digital-first clients is **30-60 days**, while for larger blue-chip clients, it can extend **up to two years**[64](index=64&type=chunk) [Competition](index=13&type=section&id=13.1%20Competition) The highly fragmented BPO industry presents opportunities for differentiated providers like IBEX, which competes on service quality, value-added offerings, and advanced technology - The BPO industry is **highly fragmented**, creating opportunities for differentiated providers like IBEX, especially as clients seek **unified, end-to-end solutions**[71](index=71&type=chunk)[72](index=72&type=chunk) - IBEX faces competition from traditional BPO companies and in-house customer service departments, with key competitive factors including **service quality, value-added offerings, and advanced technological capabilities**[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Competitive Strengths and Differentiators](index=14&type=section&id=14.1%20Competitive%20Strengths%20and%20Differentiators) IBEX differentiates itself through its nimble, innovative culture, Wave iX AI technology, strong employer brand, broad digital service portfolio, and leading global delivery model - Differentiation as a nimble, disruptive provider with an innovative and entrepreneurial culture[78](index=78&type=chunk)[79](index=79&type=chunk)[84](index=84&type=chunk) - Wave iX technology solutions, leveraging generative AI (Wave iX AI Virtual Agent, Wave iX Translate) to drive performance and innovation[78](index=78&type=chunk)[79](index=79&type=chunk)[84](index=84&type=chunk) - Position as a leading brand and employer in its markets, fostering high employee engagement and lower attrition[78](index=78&type=chunk)[79](index=79&type=chunk)[84](index=84&type=chunk) - Broad portfolio of full lifecycle digital services (ibex Connect, ibex Digital, ibex CX)[78](index=78&type=chunk)[79](index=79&type=chunk)[84](index=84&type=chunk) - Leading global delivery model with significant growth in high-margin nearshore and offshore regions, offering geographic diversity and business continuity[78](index=78&type=chunk)[79](index=79&type=chunk)[84](index=84&type=chunk) [Seasonality](index=15&type=section&id=15.1%20Seasonality) IBEX's business experiences seasonal fluctuations, with increased customer engagement during the calendar year-end holiday period and customer acquisition revenues rising in summer and Q4 - IBEX's business performance is subject to **seasonal fluctuations**, with increased activity in customer engagement during the **calendar year-end holiday period**[81](index=81&type=chunk) - Customer acquisition revenues may increase during the **summer (household moves)** and the **final calendar quarter (holiday season)**[82](index=82&type=chunk) [Intellectual Property](index=15&type=section&id=15.2%20Intellectual%20Property) IBEX protects its competitive position through intellectual property laws, contractual arrangements, proprietary technology, registered trademarks, and trade secret controls - IBEX relies on **intellectual property laws, contractual arrangements, and proprietary technology** (next-generation software) to protect its competitive position[83](index=83&type=chunk) - The company registers **trademarks and service marks** in the U.S. and other countries and maintains **trade secrets** through contractual clauses and system access controls[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) [Regulation](index=16&type=section&id=16.1%20Regulation) IBEX is subject to diverse U.S. and foreign laws and regulations concerning privacy, data protection, intellectual property, and employment, with compliance being costly and time-consuming - IBEX is subject to **U.S. federal and state, and foreign laws and regulations** concerning privacy, data protection, intellectual property, competition, consumer protection, export taxation, and employment[87](index=87&type=chunk) - As a Bermuda company, IBEX must comply with the **Bermuda Companies Act 1981**, the **Economic Substance Act 2018** (effective July 1, 2019), and the **Personal Information Protection Act 2016** (fully implemented January 1, 2025)[88](index=88&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Compliance with these diverse legal requirements is **costly and time-consuming**, with potential for **significant fines or penalties** for violations[99](index=99&type=chunk) [Human Capital Resources](index=18&type=section&id=18.1%20Human%20Capital%20Resources) IBEX had approximately **33,000 full-time employees** as of June 30, 2025, fostering a customer-centric, employee-driven culture with an eNPS of 77 - IBEX had approximately **33,000 full-time employees** as of June 30, 2025, **up from 30,000 in 2024**, driven by a customer-centric, employee-driven culture[100](index=100&type=chunk) - The company's culture is built on **three principles**: being the best employer, an employee-first approach, and highly immersive engagement, resulting in an **eNPS of 77**[101](index=101&type=chunk)[105](index=105&type=chunk) [Information about our Executive Officers](index=18&type=section&id=18.2%20Information%20about%20our%20Executive%20Officers) This section lists the executive officers of IBEX Limited as of September 11, 2025, who serve at the discretion of the Board with no family relationships Executive Officers as of September 11, 2025 | Name | Age | Title | | :--- | :--- | :--- | | Robert Dechant | 63 | Chief Executive Officer | | Taylor Greenwald | 57 | Chief Financial Officer | | Christy O'Connor | 56 | Chief Legal Officer and Assistant Secretary | | David Afdahl | 51 | Chief Operating Officer | | Julie Casteel | 64 | Chief Marketing and Strategic Accounts Officer | | Bruce Dawson | 61 | Chief Sales and Client Services Officer | | Paul Inson | 61 | Chief People Officer | | Andreas Wilkens | 53 | Chief Technology Officer | | Michael Darwal | 42 | Deputy CFO, President ibex Digital | - Executive officers serve at the discretion of the Board, with no family relationships between them or directors[104](index=104&type=chunk) [ITEM 1A. RISK FACTORS](index=21&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section details material risks to IBEX's business, financial condition, and operations, categorized across business, financial, operational, legal, Bermuda incorporation, and common share factors - Investment in IBEX is **speculative and risky** due to **material risks and uncertainties** that could adversely affect business, results of operation, reputation, prospects, financial condition, operating results, cash flows, profitability, liquidity, and stock price[116](index=116&type=chunk) - The risks described are **not exhaustive**, and **additional unknown or currently immaterial risks** may also harm the business[116](index=116&type=chunk) [Business Risks](index=21&type=section&id=21.1%20Business%20Risks) Business risks include dependence on key clients, challenges in maintaining profitability, potential client claims, effects of consolidation, inability to adapt to market trends, acquisition risks, and intellectual property protection failures - Dependence on key clients, with the top three clients accounting for **26% of revenue in FY2025**[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - Profitability relies on efficient asset utilization, appropriate pricing, and cost management, with most contracts lacking minimum volume requirements[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - Risk of client claims for reduced payments or damages if quality standards are not met[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - Adverse effects from client consolidation or increased insourcing activities[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - Inability to anticipate client needs, adapt to market/technology trends (including AI), or successfully convert customer acquisition website visitors[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - Risks associated with future acquisitions, including diversion of management attention, dilution, and integration difficulties[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - Failure to adequately protect intellectual property and proprietary information, leading to competitive impairment or costly litigation[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) [Financial, Accounting, and Economic Risks](index=25&type=section&id=25.1%20Financial%2C%20Accounting%2C%20and%20Economic%20Risks) Financial risks encompass high working capital needs, quarterly operating fluctuations, economic uncertainty, client payment defaults, debt covenant restrictions, goodwill impairment, and limitations on net operating loss carryforwards - Inability to fund high working capital requirements and new investments, potentially increasing financing costs[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - Operating results may fluctuate quarterly due to factors like client loss, new contracts, termination of existing contracts, and seasonal changes[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - Adverse effects from general economic uncertainty, including inflation, rising interest rates, recession, and foreign exchange fluctuations, particularly given **96% of FY2025 revenue from U.S. clients**[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - Risk of clients failing to pay accounts receivable balances in a timely manner, impacting financial condition and cash flow[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - Debt covenants may restrict operational flexibility, and non-compliance could lead to default[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - Potential for significant charges to earnings if goodwill or intangible assets become impaired[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - Limitations on the ability to use U.S. state and international net operating loss carryforwards, which begin to expire between 2026 and 2039[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) [Operational Risks](index=27&type=section&id=27.1%20Operational%20Risks) Operational risks involve reliance on technology, challenges with AI integration, dependence on international operations, workforce management, impacts of natural events, currency fluctuations, advertising effectiveness, and facility lease renewals - Heavy reliance on technology, telephone, and computer systems, as well as third-party telecommunications providers, exposing the company to technical difficulties or disruptions[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Risks from integrating AI and generative AI technology, including unintended consequences, data sourcing issues, program bias, security challenges, and potential replacement of lower-tier service offerings[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Significant dependence on international operations, particularly in the Philippines, Jamaica, Pakistan, and Nicaragua, where disruptions could diminish competitive advantage[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Challenges in attracting, retaining, and motivating qualified senior management, employees, and agents, exacerbated by high industry turnover and increasing labor costs[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Adverse effects from natural events, health epidemics, geopolitical conditions, widespread civil unrest, or terrorist attacks in operating countries[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Material impact on results of operations from unhedged fluctuations in local currencies against the U.S. dollar[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Negative impact if unable to advertise cost-effectively on internet search engines to attract consumers to customer acquisition websites[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Difficulties and increased expenses when expanding operations into new countries with less familiar local procedures or less developed infrastructure[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Adverse effects if unable to renew leases for facilities on commercially acceptable terms or at all[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) [Legal and Regulatory Risks](index=31&type=section&id=31.1%20Legal%20and%20Regulatory%20Risks) Legal and regulatory risks include compliance with diverse laws, potential fines for non-compliance, liability from data breaches, and costs associated with intellectual property infringement claims - Exposure to numerous and sometimes conflicting legal and regulatory requirements across multiple countries and industries, including data privacy, telecommunications, import/export, and anti-corruption laws[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - Non-compliance with legal regimes could result in significant fines, penalties, civil enforcement actions, criminal prosecution, and reputational damage[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - Unauthorized or improper disclosure of personal information, privacy breaches, or cyber-attacks could lead to significant liability and harm reputation[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - Claims of intellectual property infringement or violation of contractual protections by others could result in substantial costs, diversion of resources, and reputational harm[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) [Risks Related to Being Incorporated in Bermuda](index=34&type=section&id=34.1%20Risks%20Related%20to%20Being%20Incorporated%20in%20Bermuda) Risks related to Bermuda incorporation include adverse tax impacts, less shareholder protection under Bermuda law, and difficulties enforcing foreign judgments against the company - Potential adverse impact from tax matters, new legislation (e.g., Bermuda Corporate Income Tax Act 2023 if revenues exceed **€750 million**), and actions by taxing authorities[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) - Differences in Bermuda law compared to U.S. law may afford less protection to common shareholders, with limited rights for class actions or derivative actions[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) - Difficulty enforcing U.S. or other foreign judgments against IBEX in Bermuda due to its incorporation and asset location outside the U.S[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) [Risks Related to Our Common Shares](index=36&type=section&id=36.1%20Risks%20Related%20to%20Our%20Common%20Shares) Risks to common shares include influence from major shareholders, dilution from warrants, disclosure exemptions as an emerging growth company, increased compliance costs, potential PFIC characterization, market price volatility, and no planned dividends - The Resource Group International Limited (TRGI) beneficially owns **~13% of common shares** and has consent rights over certain actions, potentially limiting other shareholders' influence[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) - The Amazon Warrant, if exercised, will dilute ownership interests and could adversely affect the market price of common shares[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) - As an 'emerging growth company' and 'smaller reporting company,' IBEX benefits from disclosure exemptions, which may make its common shares less attractive to investors[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) - Increased costs and demands on management due to complying with public company laws and regulations, including Section 404 of Sarbanes-Oxley Act[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) - Risk of adverse U.S. tax consequences for certain U.S. holders if IBEX is characterized as a passive foreign investment company (PFIC)[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) - Potential for a significant portion of total outstanding shares to be sold into the market, causing a decrease in market price[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) - Anti-takeover provisions in bye-laws and the ability to issue preferred shares without shareholder approval could make acquisitions more difficult and limit shareholder influence[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) - The market price of common shares may be volatile due to various factors, including operating performance, analyst reports, and economic conditions[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) - IBEX does not plan to pay dividends in the foreseeable future, meaning investors may only realize gains if the share price increases[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=40&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) This section states that there are no unresolved staff comments from the SEC regarding the company's previous filings - There are **no unresolved staff comments**[221](index=221&type=chunk) [ITEM 1C. CYBERSECURITY](index=40&type=section&id=ITEM%201C.%20CYBERSECURITY) IBEX outlines its comprehensive cybersecurity risk management program, integrated into its enterprise risk management framework, with Board oversight and management-led day-to-day operations - IBEX integrates cybersecurity processes into its overall **enterprise risk management framework** to evaluate and manage risks[222](index=222&type=chunk)[224](index=224&type=chunk) - The **Board of Directors** is responsible for **overseeing cybersecurity risk management**, receiving periodic updates from management[232](index=232&type=chunk)[235](index=235&type=chunk) - While cybersecurity threats in the last fiscal year have **not materially affected** the Company's business strategy, results of operations or financial condition, future incidents are **unavoidable** and could have **material adverse effects**[236](index=236&type=chunk) [Risk Management and Strategy](index=40&type=section&id=40.1%20Risk%20Management%20and%20Strategy) IBEX conducts periodic cybersecurity evaluations, assesses AI-related risks, oversees third-party risks, maintains robust incident response plans, and provides mandatory employee training - **Periodic evaluations** of cybersecurity policies, processes, and practices by in-house security teams and third-party firms, including **audits, penetration testing, and threat modeling**[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk) - Consideration of likelihood, impact, and feasibility of controls in assessing cybersecurity risks, with controls including **vulnerability management, firewalls, access controls, and data encryption**[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk) - Integration of **AI into solutions** and third-party offerings, with **risk assessments** conducted to identify potential threats and vulnerabilities in AI systems[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk) - Established processes to oversee and identify cybersecurity risks from **third parties**, including **contractual controls and periodic assessments** of vendor practices[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk) - Maintenance of **business continuity, incident response, and disaster recovery plans**, routinely evaluated and updated by IT Security, Operations, and Compliance teams[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk) - **Regular, mandatory cybersecurity training** for all personnel and out-of-cycle notices from the CTO[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk) [Governance](index=41&type=section&id=41.1%20Governance) The Board oversees cybersecurity risk management, receiving updates from management, while a dedicated Cybersecurity Committee and CISO handle day-to-day oversight - The **Board oversees cybersecurity risk management**, receiving periodic updates from management on strategy, risk assessments, and significant developments[232](index=232&type=chunk)[235](index=235&type=chunk) - Management, supported by dedicated professionals and a Cybersecurity Committee, handles day-to-day oversight, with the **Chief Information Security Officer (CISO)** leading the Information Security department[233](index=233&type=chunk) - The current CISO has **over eighteen years of experience** in cybersecurity and holds **multiple professional certifications** (CIISSP, CISA, CISM)[234](index=234&type=chunk) [Cybersecurity Threats](index=42&type=section&id=42.1%20Cybersecurity%20Threats) IBEX has implemented enhanced safeguards, and while past threats have not materially impacted the company, future cybersecurity incidents are unavoidable and could have material adverse effects - IBEX has implemented **additional technical and procedural safeguards** to strengthen its security posture, including **enhanced incident response protocols and employee awareness training**[236](index=236&type=chunk) - While cybersecurity threats in the last fiscal year have **not materially affected** the Company's business strategy, results of operations or financial condition, future cybersecurity incidents are **unavoidable** and could have **material adverse effects**[236](index=236&type=chunk) [ITEM 2. PROPERTIES](index=42&type=section&id=ITEM%202.%20PROPERTIES) IBEX operates executive management offices in Washington, D.C., and 30 leased global delivery centers, housing **20,456 workstations** as of June 30, 2025, primarily in offshore and nearshore regions - IBEX leases all of its facilities, including executive management offices in Washington, D.C. (**5,300 sq ft**) and **30 delivery centers** globally[237](index=237&type=chunk)[239](index=239&type=chunk) Delivery Centers and Workstations as of June 30, 2025 | Country | Number of centers | Number of workstations | | :--- | :--- | :--- | | United States | 2 | 654 | | Philippines | 9 | 8,567 | | Pakistan | 10 | 4,058 | | Jamaica | 4 | 3,810 | | Nicaragua | 4 | 2,691 | | Honduras | 1 | 676 | | Total | 30 | 20,456 | - The company expects to procure additional space and expand geographically to meet business demands[240](index=240&type=chunk) [ITEM 3. LEGAL PROCEEDINGS](index=43&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) IBEX is involved in ordinary course legal actions, accruing for probable losses, but management believes current proceedings will not materially affect financial position or operations - IBEX is involved in legal actions in the ordinary course of business and accrues for probable and reasonably estimable losses[241](index=241&type=chunk) - Management believes that the disposition or ultimate resolution of any current legal proceedings will **not have a material adverse effect** on the Company's financial position, cash flows, or results of operations[242](index=242&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=43&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to IBEX Limited - This item is **not applicable**[243](index=243&type=chunk) Part II [ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=43&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) This section provides information on IBEX's common shares trading on Nasdaq, outstanding shares, dividend policy, and details of the **$15 million** share repurchase program authorized on May 1, 2025 - IBEX common shares began trading on the **Nasdaq Global Market** under the symbol 'IBEX' on **August 7, 2020**[245](index=245&type=chunk) - As of August 29, 2025, there were **13,315,077 common shares outstanding** and **94 holders of record**[6](index=6&type=chunk)[245](index=245&type=chunk) - The company currently **does not plan to declare dividends**, intending to retain all future earnings to finance business growth and development[246](index=246&type=chunk) Share Repurchases for the Three Months Ended June 30, 2025 | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under 2025 Share Repurchase Program ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | April 1 - 30, 2025 | — | — | — | — | | May 1 - 31, 2025 | 14,300 | $28.68 | 14,300 | $14,590 | | June 1 - 30, 2025 | 43,980 | $28.79 | 43,980 | $13,324 | | Total | 58,280 | $28.76 | 58,280 | | [ITEM 6. [RESERVED]](index=44&type=section&id=ITEM%206.%20%5BRESERVED%5D) This item is reserved and contains no information - This item is **reserved**[252](index=252&type=chunk) [ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=44&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section analyzes IBEX's financial condition and results for FY2025, highlighting **9.8% revenue growth** to **$558.3 million**, **9.5% net income increase** to **$36.9 million**, and diluted EPS of **$2.36**, driven by client growth and strategic shifts - IBEX delivered revenues of **$558.3 million** during the fiscal year ended June 30, 2025, a **9.8% increase** compared to the prior year[257](index=257&type=chunk) - Net income for FY2025 was **$36.9 million**, a **9.5% increase** from **$33.7 million** in the prior year, driven by revenue growth in higher margin offshore regions and improved gross margin performance[257](index=257&type=chunk) - Fully diluted earnings per share for FY2025 was **$2.36**, **up from $1.84** in the prior year, due to higher net income and fewer diluted shares outstanding[257](index=257&type=chunk) [Overview](index=45&type=section&id=45.1%20Overview) IBEX provides innovative BPO, digital marketing, and customer engagement solutions, operating a global CX delivery model with 30 centers and approximately **33,000 employees** - IBEX delivers innovative BPO, smart digital marketing, online acquisition technology, and end-to-end customer engagement solutions[255](index=255&type=chunk) - The company operates a global CX delivery center model with **30 centers** and approximately **33,000 employees**, managing nearly **169 million customer interactions**[255](index=255&type=chunk) [Business Highlights](index=45&type=section&id=45.2%20Business%20Highlights) In FY2025, IBEX achieved strong financial results with growth in key verticals, expanded capacity in offshore/nearshore regions, and secured sixteen new client wins - During FY2025, IBEX delivered **strong financial results** with growth in Retail & E-commerce, HealthTech, Travel, Transportation & Logistics, and Other verticals[256](index=256&type=chunk) - The company increased capacity in offshore and nearshore regions, expanded into **two new sites**, and achieved **sixteen new client wins**[256](index=256&type=chunk) [Recent Financial Highlights](index=45&type=section&id=45.3%20Recent%20Financial%20Highlights) FY2025 saw **revenues of $558.3 million** (+**9.8%**), **net income of $36.9 million** (+**9.5%**), and **fully diluted EPS of $2.36** (+**28.3%**), driven by higher-margin offshore growth Key Financial Highlights (FY2025 vs FY2024) | Metric | FY2025 | FY2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $558.3 million | $508.6 million | +9.8% | | Net Income | $36.9 million | $33.7 million | +9.5% | | Fully Diluted EPS | $2.36 | $1.84 | +28.3% | - The increase in net income was driven by **revenue growth in higher margin offshore regions** and **improved gross margin performance**[257](index=257&type=chunk) [Trends and Factors Affecting our Performance](index=45&type=section&id=45.4%20Trends%20and%20Factors%20Affecting%20our%20Performance) Performance is influenced by macroeconomic factors, AI integration, demand for services, capacity utilization, wage pressures, operating margins from geographic shifts, client concentration, pricing strategies, employee turnover, and currency exchange rates - **Macroeconomic factors** (inflation, interest rates, geopolitical uncertainty, foreign exchange) have impacted financial results, leading some clients to shift work to offshore sites for **cost reduction**[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - IBEX is aggressively leveraging **generative AI** through its **Wave iX technology** to **increase agent productivity**, provide customer insights, and deploy voice/chat bots, aiming to capture **AI-enabled revenue**[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - Demand for customer interaction services reflects client business performance; FY2025 saw **higher demand** due to digital-first solutions, existing client growth, and new client wins[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - Capacity utilization impacts margins; overall utilization increased to **88% in FY2025** from **84% in FY2024**, with U.S. utilization **over 100%** due to work-at-home model[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - **Increasing wage pressure** in all geographies was offset by **higher agent quality, increased productivity, better retention, and contractual cost of living adjustments (COLA)**[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - Operating margins are influenced by the shift towards **higher-margin offshore and nearshore delivery locations**, which now account for approximately **97% of workstations**[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - IBEX has a **strong track record of new client wins**, with in-year wins historically generating **2.0x to 3.0x revenue** in subsequent years[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - Client concentration: largest client accounted for **11% of revenue**, and top three clients for **26% in FY2025**, but overall client diversification is increasing[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - Pricing strategies include **base price per minute/hour, bonuses/penalties**, and successful negotiation of **price increases/COLA** due to labor market tightening and facilities expenses[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - **High employee turnover** in the outsourcing industry impacts profitability; IBEX focuses on employee engagement to support **lower attrition rates**[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - **Increased costs** for sourcing or generating leads, or changes in conversion rates, can **impact profit margins** in customer acquisition solutions[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - **Increased up-front costs** for hiring and training new employees in response to demand can initially **depress operating profit margins**[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - Net effect of currency exchange rate fluctuations: a **significant portion of operating expenses are in foreign currencies** (PHP, JMD, PKR), while **revenues are primarily in USD**, leading to **FX exposure**[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) [Key Operational Metrics](index=48&type=section&id=48.1%20Key%20Operational%20Metrics) Key operational metrics include workstations, work-at-home agents, and capacity utilization, which increased to **88% in FY2025** from **84% in FY2024**, driven by offshore and nearshore optimization - Workstations: Number of physical workstations used for production at delivery centers[276](index=276&type=chunk) - Work at home: Number of production agents working from home[277](index=277&type=chunk) - Capacity Utilization: Efficiency metric defined as (on-site workstations in use + work at home seats) / total on-site workstations[278](index=278&type=chunk) - Capacity utilization increased to **88% in FY2025** from **84% in FY2024**, driven by utilization in nearshore and offshore geographies and optimization of onshore capacity[279](index=279&type=chunk) Capacity Utilization by Region (as of June 30, 2025 and 2024) | | As of June 30, 2025 | | As of June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | | Total Production Workstations | Utilization % | Tota

Executive Summary & Fiscal Year 2025 Highlights IBEX Limited achieved record FY25 financial results, exceeding guidance with its strongest quarterly growth in nearly three years [Overall Performance Summary](index=1&type=section&id=Overall%20Performance%20Summary) IBEX Limited achieved record FY25 financial results, exceeding revenue and Adjusted EBITDA guidance with strong top-line growth and record EPS - IBEX achieved its strongest quarterly growth rate in nearly 3 years and record fiscal year 2025 financial results[1](index=1&type=chunk) - The company exceeded the high end of its Revenue and Adjusted EBITDA Guidance for FY25[4](index=4&type=chunk) Key Financial Highlights (Q4 & FY25 vs FY24) | Metric | Q4 2025 | Q4 2024 | Q4 Change (%) | FY 2025 | FY 2024 | FY Change (%) | | :-------------------------------- | :------ | :------ | :------------ | :------ | :------ | :------------ | | Revenue | $147.1M | $124.5M | 18.2% | $558.3M | $508.6M | 9.8% | | Net income | $9.6M | $9.8M | (2.5)% | $36.9M | $33.7M | 9.5% | | Adjusted net income | $12.6M | $10.2M | 23.3% | $43.0M | $38.4M | 12.1% | | Adjusted EBITDA | $20.5M | $17.9M | 14.0% | $72.0M | $65.2M | 10.4% | | Diluted EPS | $0.66 | $0.56 | 18.7% | $2.36 | $1.84 | 27.8% | | Adjusted diluted EPS | $0.87 | $0.58 | 50.0% | $2.75 | $2.10 | 30.7% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Bob Dechant highlighted IBEX's BPO market outperformance, driven by operational excellence, market share gains, new client wins, and AI solution deployments - CEO Bob Dechant stated that IBEX continues to outperform the BPO market, completing a tremendous fourth quarter and fiscal year 2025 with record financial results[2](index=2&type=chunk) - Growth was driven by operational excellence with existing clients, enabling significant market share wins, and continued new logo wins with 'trophy clients'[2](index=2&type=chunk) - Fiscal 2025 marked the shift from proof of concept for AI solutions to full-scale deployments, setting the stage for future growth, and included a successful entry into India[2](index=2&type=chunk) Fourth Quarter Fiscal Year 2025 Financial Results IBEX Limited reported strong Q4 FY25 financial results, driven by significant revenue growth and improved adjusted profitability [Revenue Performance (Q4)](index=1&type=section&id=Revenue%20Performance%20(Q4)) Fourth quarter revenue increased by 18.2% year-over-year to $147.1 million, marking the highest growth rate in eleven quarters Q4 2025 Revenue Performance | Metric | Q4 2025 | Q4 2024 | Change (%) | | :------- | :------ | :------ | :--------- | | Revenue | $147.1M | $124.5M | 18.2% | - Q4 revenue growth of **18.2%** was the highest rate in eleven quarters[2](index=2&type=chunk) - Growth was driven by top three verticals: Retail & E-commerce (**+24.5%**), HealthTech (**+19.0%**), and Travel, Transportation and Logistics (**+10.0%**), as well as outstanding growth in the digital acquisition business[3](index=3&type=chunk) [Net Income and Earnings Per Share (Q4)](index=2&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share%20(Q4)) Q4 net income remained consistent at $9.6 million, while diluted EPS rose 18.7% to $0.66, and adjusted diluted EPS increased 50.0% to $0.87 Q4 2025 Net Income and EPS | Metric | Q4 2025 | Q4 2024 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Net income | $9.6M | $9.8M | (2.5)% | | Diluted EPS | $0.66 | $0.56 | 18.7% | | Adjusted net income | $12.6M | $10.2M | 23.3% | | Adjusted diluted EPS | $0.87 | $0.58 | 50.0% | | Net income margin | 6.5% | 7.9% | (140)bps | | Adjusted net income margin | 8.5% | 8.2% | 30 bps | - Diluted EPS benefited from fewer diluted shares outstanding due to share repurchase activities during fiscal 2025[9](index=9&type=chunk) - Net income margin decreased due to increases in selling, general, and administrative expenses, including higher payroll costs (**$5.7M**), impairment losses (**$1.4M**), and net foreign currency losses (**$1.3M**), partially offset by lower income tax expense[9](index=9&type=chunk) [Adjusted EBITDA (Q4)](index=2&type=section&id=Adjusted%20EBITDA%20(Q4)) Adjusted EBITDA for Q4 increased by 14.0% to $20.5 million, though the margin slightly decreased to 13.9% due to higher operating expenses Q4 2025 Adjusted EBITDA Performance | Metric | Q4 2025 | Q4 2024 | Change (%) | | :------------------ | :------ | :------ | :--------- | | Adjusted EBITDA | $20.5M | $17.9M | 14.0% | | Adjusted EBITDA margin | 13.9% | 14.4% | (50)bps | - Adjusted EBITDA margin decreased due to increases in selling, general, and administrative expenses, including higher payroll and related costs of **$5.7 million** to support growth[9](index=9&type=chunk) Full Fiscal Year 2025 Financial Results IBEX Limited achieved robust full fiscal year 2025 financial results, marked by strong revenue growth and record adjusted earnings [Revenue Performance (FY25)](index=2&type=section&id=Revenue%20Performance%20(FY25)) For the full fiscal year 2025, revenue grew by 9.8% to $558.3 million, representing the highest growth in three years FY 2025 Revenue Performance | Metric | FY 2025 | FY 2024 | Change (%) | | :------- | :------ | :------ | :--------- | | Revenue | $558.3M | $508.6M | 9.8% | - Full-year revenue growth of **9.8%** was the highest in three years[2](index=2&type=chunk) - Growth was driven by top three verticals: HealthTech (**+23.2%**), Travel, Transportation and Logistics (**+13.7%**), and Retail & E-commerce (**+12.6%**), and outstanding growth in the digital acquisition business[6](index=6&type=chunk) [Net Income and Earnings Per Share (FY25)](index=2&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share%20(FY25)) Fiscal year 2025 net income increased by 9.5% to $36.9 million, with diluted EPS rising 27.8% to $2.36, and adjusted EPS reaching a record $2.75 FY 2025 Net Income and EPS | Metric | FY 2025 | FY 2024 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Net income | $36.9M | $33.7M | 9.5% | | Diluted EPS | $2.36 | $1.84 | 27.8% | | Adjusted net income | $43.0M | $38.4M | 12.1% | | Adjusted diluted EPS | $2.75 | $2.10 | 30.7% | | Net income margin | 6.6% | 6.6% | — bps | | Adjusted net income margin | 7.7% | 7.5% | 20 bps | - Net income was favorably impacted by an increase in gross margin due to revenue growth, particularly in higher-margin offshore regions, offset by increases in SG&A, interest, and income tax expenses[10](index=10&type=chunk) - Diluted EPS benefited from diluted shares outstanding declining to **15.7 million** from **18.3 million** in the prior year, a result of share repurchase activities[10](index=10&type=chunk) [Adjusted EBITDA (FY25)](index=2&type=section&id=Adjusted%20EBITDA%20(FY25)) Adjusted EBITDA for fiscal year 2025 increased by 10.4% to $72.0 million, maintaining a consistent Adjusted EBITDA margin of 12.9% FY 2025 Adjusted EBITDA Performance | Metric | FY 2025 | FY 2024 | Change (%) | | :------------------ | :------ | :------ | :--------- | | Adjusted EBITDA | $72.0M | $65.2M | 10.4% | | Adjusted EBITDA margin | 12.9% | 12.8% | 10 bps | Cash Flow and Balance Sheet Analysis IBEX Limited demonstrated improved operating cash flow and record free cash flow in FY25, while managing its net cash position through strategic share repurchases

Core Insights - IBEX Limited reported strong financial results for the fourth quarter and fiscal year 2025, achieving record revenue and earnings per share, driven by operational excellence and market share gains [4][7][15]. Financial Performance - Fourth quarter revenue reached $147.1 million, an increase of 18.2% from $124.5 million in the prior year quarter, marking the highest growth rate in eleven quarters [5][7]. - Full-year revenue was $558.3 million, up 9.8% from $508.6 million in the previous year, with significant contributions from key verticals: HealthTech (+23.2%), Travel, Transportation and Logistics (+13.7%), and Retail & E-commerce (+12.6%) [9][13]. - Net income for the fourth quarter was $9.6 million, slightly down from $9.8 million in the prior year quarter, while full-year net income increased to $36.9 million from $33.7 million [8][13]. - Diluted earnings per share (EPS) for the fourth quarter rose to $0.66 from $0.56, and full-year EPS increased to $2.36 from $1.84, reflecting a 27.8% growth [7][13]. Adjusted Metrics - Adjusted net income for the fourth quarter was $12.6 million, up 23.3% from $10.2 million in the prior year quarter, with an adjusted net income margin of 8.5% [12][33]. - Adjusted EBITDA for the fourth quarter was $20.5 million, a 14.0% increase from $17.9 million in the prior year quarter, with an adjusted EBITDA margin of 13.9% [12][36]. - Full-year adjusted net income was $43.0 million, up from $38.4 million, and adjusted EBITDA was $72.0 million, compared to $65.2 million in the previous year [13][36]. Cash Flow and Capital Expenditures - The company generated record free cash flow of $22.8 million in the fourth quarter, contributing to an annual free cash flow of $27.3 million, slightly up from $27.0 million in the prior year [7][39]. - Capital expenditures for the year were $18.4 million, significantly higher than $8.9 million in the previous year, aimed at capacity expansion [13][14]. Market Position and Strategic Outlook - IBEX continues to outperform the BPO market, with a strategic focus on expanding AI capabilities and entering new markets, including a successful entry into India [4][15]. - The company anticipates revenue for fiscal year 2026 to be in the range of $590 to $610 million, with adjusted EBITDA expected between $75 to $79 million [20].

Core Insights - ibex is shifting its focus to the government sector, aiming to provide next-generation contact center and citizen engagement solutions using AI technology [1][2][3] - The company emphasizes the need for government agencies to enhance citizen experiences by adopting innovative, digital-first solutions that meet rising expectations [2][4] Company Strategy - ibex plans to leverage its extensive experience in customer engagement to help government entities improve service delivery and efficiency [2][3] - The company aims to address budget constraints faced by government agencies by offering cost-effective, human-centered solutions that accelerate ROI [3][4] Technology and Solutions - Central to ibex's government offering is the ibex Wave iX platform, which provides AI-driven customer support capabilities across multiple channels [4] - The Wave iX platform is designed to facilitate seamless interactions between customer service agents and citizens, ensuring consistent service quality [4] Operational Scale - ibex operates approximately 30 global delivery centers and employs over 33,000 staff, managing nearly 170 million customer interactions annually [5][6] - The company generates over $2.2 billion in lifetime customer revenue each year, showcasing its significant impact on customer experience [6]