IBEX LTD (NASDAQ:IBEX) Surpasses Q4 Earnings and Revenue Estimates

IBEX LTD (NASDAQ:IBEX) delivered a robust fourth quarter performance, surpassing analyst expectations and demonstrating significant momentum across key financial metrics. The company's latest earnings report highlights both top-line growth and improved profitability, contributing to a notable market reaction following the announcement.

Earnings and Revenue Performance

The business process outsourcing specialist reported fourth quarter revenue of $147.1 million, representing an 18.2% increase compared to the same period last year. This figure substantially exceeded analyst estimates of $135.6 million. The company's growth was particularly strong in its core verticals, including Retail & E-commerce, HealthTech, and Travel, Transportation and Logistics.

The earnings performance was equally impressive, with adjusted earnings per share reaching $0.87 for the quarter. This result significantly outperformed the consensus estimate of $0.71 per share and marked a 50% improvement over the prior year period. The strong EPS performance was driven by both operational improvements and the company's share repurchase program, which reduced diluted shares outstanding.

Market Reaction and Price Action

Following the earnings release, the market responded positively to IBEX's results. The stock demonstrated strong after-hours performance, reflecting investor approval of the company's exceeding both revenue and earnings expectations. This positive momentum suggests that the market views IBEX's current trajectory favorably, particularly given the company's ability to outperform in a competitive business process outsourcing landscape.

Full Year Results and Business Outlook

For the full fiscal year 2025, IBEX achieved record financial results with revenue of $558.3 million, representing 9.8% growth year-over-year. Adjusted EPS for the year reached $2.75, a 31% increase from the previous year. The company also generated record free cash flow of $27.3 million.

Looking ahead, management provided guidance for fiscal year 2026 that indicates continued growth momentum. The company expects revenue between $590-610 million and adjusted EBITDA in the range of $75-79 million. This outlook compares favorably to analyst estimates, which had projected revenue of approximately $587.2 million for the full year.

Key Business Highlights

The earnings release highlighted several important operational achievements:

• Strongest quarterly growth rate in nearly three years
• Successful expansion into new markets, including entry into India
• Full-scale deployment of AI solutions moving beyond proof-of-concept stage
• Significant share repurchase activity that eliminated controlled company status
• Record free cash flow generation in the fourth quarter

Capital Allocation and Balance Sheet

IBEX demonstrated disciplined capital management throughout the year, repurchasing approximately 3.9 million shares representing 23% of shares outstanding. The company ended the quarter with a net cash position of $13.7 million, a significant improvement from the net debt position recorded in the previous quarter.

For more detailed earnings information and future estimates, readers can view the complete earnings data and analyst projections here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.