IBEX(US:IBEX)2025-09-11 21:32Financial Data and Key Metrics Changes - Fiscal year 2025 revenue reached $558.3 million, a 10% increase from the previous year, with Q4 revenues increasing by 18% year-over-year [8][19] - Record adjusted EBITDA of $72 million for FY 2025, up more than 10% from the previous year [8][21] - Adjusted EPS for FY 2025 was $2.75, a 31% increase from the prior year, with adjusted net income rising to $43 million, up 12% [9][21] - Free cash flow for Q4 was $23 million, marking the strongest quarter ever, and a record $27 million for the year [9][24] Business Line Data and Key Metrics Changes - Revenue growth was driven by retail and e-commerce (25%), health tech (19%), and travel, transportation, and logistics (10%) [12][13] - Digital and omnichannel services represented 82% of total revenue, up from 77% in the prior year quarter, growing 25% year-over-year [13][14] - Offshore revenue grew 17% year-over-year, comprising 49% of total revenue, maintaining a strong gross margin of 31.4% [13][19] Market Data and Key Metrics Changes - Onshore revenue increased by 13%, while offshore revenue grew by 15% year-over-year [19] - Nearshore revenue, which comprised 25% of total revenue, declined slightly by 3% [19] - The fintech vertical's revenue exposure decreased to 10.6% from 13.7% in the prior year quarter, with expectations for stabilization [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][8] - The strategy emphasizes a blend of culture, technology (WaveX), and analytics (BPO 2.0) to outperform competitors and gain market share [4][5] - Continued investments in AI capabilities and geographic expansions, particularly in high-margin offshore regions, are planned for future growth [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform the market, citing a strong balance sheet with zero net debt and robust free cash flow generation [10][11] - The company anticipates revenue for FY 2026 to be in the range of $590 to $610 million, with adjusted EBITDA expected between $75 to $79 million [24][25] - Management highlighted the successful transition from proof of concept to full-scale AI solution deployments, which is expected to drive future growth [34][35] Other Important Information - The company has maintained a well-diversified client portfolio, with the largest client accounting for less than 10% of revenue [17] - Capital expenditures for FY 2025 were $18 million, up from $9 million in the prior year, driven by expansions in high-demand regions [22] Q&A Session Summary Question: Insights on Q4 performance and any one-time factors - Management confirmed that the growth in Q4 was sustainable and driven by winning market share and strong operational performance [30] Question: Commentary on Gen AI impact - Management acknowledged the potential for automation but emphasized the importance of owning the entire customer journey, positioning the company as a leader in AI-driven solutions [34][35]