IBEX(IBEX) - 2025 Q4 - Annual Results

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 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] - The company exceeded the high end of its Revenue and Adjusted EBITDA Guidance for FY25[4] 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 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] - Growth was driven by operational excellence with existing clients, enabling significant market share wins, and continued new logo wins with 'trophy clients'[2] - 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] 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) 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] - 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] Net Income and Earnings Per Share (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] - 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] Adjusted EBITDA (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] 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) 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] - 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] Net Income and Earnings Per Share (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] - 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] Adjusted EBITDA (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