IBEX Limited reported record second‑quarter revenue of $164.2 million, up 16.7 % from $140.7 million in Q2 FY25. Adjusted earnings per share rose to $0.87, a 46.3 % increase over the $0.58 EPS reported a year earlier and beating the consensus estimate of $0.79 by $0.08, or 10 %. The revenue lift was driven by a 16.2 % year‑over‑year rise in offshore delivery center revenue and strong growth in high‑margin verticals, including a 35.1 % increase in HealthTech and a 20.2 % rise in Travel, Transportation and Logistics.
Adjusted EBITDA reached $20.7 million, up 25 % from $16.5 million in the prior year quarter, and expanded the margin to 12.6 % from 11.8 %. The improvement reflects continued geographic arbitrage and disciplined cost control, even as the company invested $11.7 million in capital expenditures—more than double the $4.3 million spent in Q2 FY25—to expand offshore capacity. Free cash flow was negative $5.1 million, a slight deterioration from the $3.2 million shortfall in Q2 FY25, largely due to the capital‑expenditure push.
Segment analysis shows that offshore delivery centers contributed $90.3 million of revenue, up 16.2 %, while AI‑enabled services—encompassing automation and translation—accounted for $22.4 million, a 25 % increase. HealthTech revenue reached $28.7 million, up 35.1 %, and Retail & E‑commerce grew 17.2 %. These high‑margin verticals offset modest growth in legacy BPO services, underscoring the company’s shift toward AI‑driven, high‑value offerings.
IBEX raised its full‑year 2026 guidance to revenue of $620–$630 million and adjusted EBITDA of $80–$82 million, up from the previous $590–$610 million and $78–$81 million ranges. The upward revision signals management confidence in sustained double‑digit organic growth and the acceleration of its AI‑native transformation strategy, while maintaining a margin outlook that reflects the company’s ability to scale high‑margin services.
CEO Bob Dechant said the quarter “demonstrates the strength of our AI‑enabled platform and the execution of our BPO 3.0 strategy.” CFO Taylor Greenwald added that the company’s “robust balance sheet and disciplined cost management” enable continued investment in sales resources and offshore capacity, positioning IBEX for further success in the years ahead.
The results reinforce IBEX’s positioning as a leader in AI‑driven customer‑experience solutions. The combination of record revenue, margin expansion, and a higher guidance range indicates that the company’s focus on high‑margin verticals and offshore expansion is paying off, while the capital‑expenditure increase signals a commitment to sustaining growth momentum. The earnings beat and guidance raise are likely to influence long‑term investment models, underscoring the event’s high importance.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.