IBEX LTD (NASDAQ:IBEX) Reports Strong Q1 FY2026 Earnings, Beats Estimates and Raises Guidance

IBEX LTD (NASDAQ:IBEX) reported financial results for the first quarter of fiscal year 2026, delivering performance that exceeded analyst expectations across key financial metrics. The global business process outsourcing provider announced record quarterly results, prompting an upward revision to its full-year financial guidance.

Earnings and Revenue Performance Versus Estimates

The company posted significant beats on both the top and bottom lines for the quarter ended September 30, 2025.

• Revenue: Reported $151.2 million, surpassing analyst estimates of $147.5 million.
• Adjusted EPS: Reported $0.90 per share, comfortably exceeding the consensus estimate of $0.75 per share.

This represents a continuation of strong growth, with revenue increasing 16.5% year-over-year from $129.7 million. The adjusted EPS of $0.90 marks a substantial 74% increase compared to the $0.52 reported in the same quarter last fiscal year.

Market Reaction and Price Action

The market's immediate reaction to the earnings beat and raised guidance appears measured. In after-hours trading following the announcement, the stock showed no significant price movement. This neutral initial response follows a period of modest weakness for the stock over the past month. Investors may be weighing the strong quarterly beat against the broader market context and the company's recent performance trends as they digest the new, more optimistic full-year outlook.

Key Highlights from the Quarterly Report

The first quarter was marked by record performance and expanding profitability. Beyond the headline revenue and EPS figures, several operational and financial achievements stood out.

• Profitability Metrics: Net income surged 59.9% to $12.0 million, while Adjusted EBITDA grew 24.9% to $19.5 million. The Adjusted EBITDA margin expanded to 12.9%, up 90 basis points from the prior year.
• Strong Cash Generation: The company demonstrated robust cash flow, with operating cash flow doubling to $15.7 million and free cash flow reaching $8.0 million.
• Balance Sheet Strength: Net cash position improved to $21.1 million, a $7.4 million increase from the end of the previous quarter.
• Shareholder Returns: IBEX repurchased 91,658 shares during the quarter for $2.7 million.

Raised Fiscal 2026 Guidance

Bolstered by the strong start to the fiscal year, management raised its full-year outlook, providing increased confidence in its growth trajectory. The new guidance ranges now sit above the previous forecasts and, in the case of revenue, above current analyst expectations.

• Revenue Guidance: Raised to a range of $605 - $620 million, up from the prior range of $590 - $610 million. The midpoint of this new range ($612.5 million) exceeds the current analyst consensus estimate of $614.91 million for full-year sales.
• Adjusted EBITDA Guidance: Increased to a range of $78 - $81 million, up from the previous $75 - $79 million.

For a detailed look at historical earnings, future estimates, and analyst projections, you can review the complete data on the IBEX earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.