Ibex targets $590M–$610M FY 2026 revenue while scaling AI CX deployments and expanding digital services
Sep. 11, 2025 7:03 PM ET
AI-Generated Earnings Calls Insights
Earnings Call Insights: IBEX Limited (IBEX) Q4 2025
Management View- CEO Robert Dechant highlighted a decade-long transformation of IBEX into a differentiated customer experience company, emphasizing three pillars: company culture, proprietary Wave X technology, and advanced analytics. He described FY 2025 as a “transcendent year” with “all-time bests across a number of key financial metrics.” Dechant noted, “We delivered record fiscal year revenue of $558.3 million, up 10% from a year ago… record adjusted EBITDA of $72 million… record adjusted EPS of $2.75 up 31% from a year ago on record adjusted net income of $43 million.”
- Dechant reported that IBEX’s internal and client-facing AI deployments moved from proof of concept to full-scale production during Q4, stating this “marked the shift from proof of concept for our AI solutions to full-scale deployments setting the table for future growth.” He underscored the competitive advantage of integrating AI agents with human agents for a seamless customer journey.
- Dechant emphasized new market expansion, especially India, and continued focus on digital-first and omnichannel services, representing more than 80% of the business. He said, “We are a growth leader. Revenue grew 10% in FY ‘25 when many of the largest players were low single digit or negative.”
- CFO Taylor Greenwald stated, “Our fourth quarter results are once again among the strongest in our history, with record results across the board for revenue, adjusted EBITDA, EPS, adjusted EPS and free cash flow.”
Outlook- For FY 2026, revenue is expected to be in the range of $590 million to $610 million. Adjusted EBITDA is expected in the range of $75 million to $79 million. For Q1 FY 2026, revenue is projected at $143 million to $146 million, and Q1 adjusted EBITDA at $17.5 million to $19 million. Greenwald noted, “Capital expenditures are expected to remain in the range of $20 million to $25 million for the year.”
Financial Results- Q4 revenue was $147.1 million, up 18.2% from $124.5 million in the prior year quarter. Greenwald attributed the growth to strong verticals such as Retail & E-commerce (up 25%), HealthTech (up 19%), and Travel, Transportation and Logistics (up 10%), as well as robust performance in digital acquisition.
- Offshore revenue grew 17% year-over-year and made up 49% of total revenue, supporting a gross margin of 31.4%.
- Digital and omnichannel delivery comprised 82% of total revenue, up from 77% in the prior year quarter, with 25% growth in these services.
- Net income for Q4 was $9.6 million, with fully diluted EPS of $0.66, up from $0.56 in the prior year quarter. Adjusted EBITDA increased to $20.5 million. Non-GAAP adjusted EPS for Q4 rose to $0.87 from $0.58.
- Free cash flow for Q4 reached $23 million, with $27 million for the fiscal year. The company ended Q4 with $15 million in cash and $1.6 million in debt, resulting in a net cash position of $13.7 million.
- Share repurchases totaled 3.9 million shares during FY 2025, including 58,000 shares in Q4 for $1.7 million.
Q&A- David Koning, Baird: “The quarter itself, when we've looked at Q4s in the past, I think, every quarter since we've covered the stock, it's been a flat to down sequential quarter. This quarter, you were up 5% sequentially…is there anything in there that was a little bit onetime in nature?...Is that sustainable?” CEO Dechant responded, “The answer to that is no, this is all kind of sustainable annuity-type business. What we did exceptional in this quarter is win market share in our embedded base, driven by our great performance...And we did that across many, many clients -- of our existing clients.”
- Koning also asked about the impact of GenAI. Dechant answered, “...this Q4, Dave, we went from proof of concept to some full-scale production implementations with our clients. And what we have seen is there's a lot of opportunity for automation. But you know what's more important is actually the entire customer journey and owning that journey.”
Sentiment Analysis- Analyst sentiment was positive, with Koning congratulating management and focusing on sustainability of growth, but also probing for one-time effects and the real impact of AI.
- Management tone was confident and assertive both in prepared remarks and Q&A. Dechant repeatedly referenced leadership, differentiation, and sustainable growth, stating, “We believe clearly we have a leadership position in this.”
- Compared to the previous quarter, analyst tone remained upbeat but continued to probe sequential growth trends and AI effects. Management’s confidence increased, with more emphasis on record achievements and competitive positioning.
Quarter-over-Quarter Comparison- Revenue growth accelerated from 11% in Q3 to 18% in Q4 year-over-year.
- Digital and omnichannel services increased their share of revenue from 81% in Q3 to 82% in Q4, with continued strong growth.
- New guidance for FY 2026 is notably higher than the previous year’s targets. The company’s strategic messaging shifted from piloting AI to deploying it at scale, with Q4 described as “an inflection point.”
- Management’s tone was more confident, highlighting competitive wins, deeper market penetration, and the sustainability of recent growth.
Risks and Concerns- CFO Greenwald acknowledged higher SG&A linked to investments in technology, organizational expansion, and the India market.
- The company incurred $2 million in severance and impairment expenses related to long-term assets and a small business closure.
- Exposure to the Fintech vertical decreased to 10.6% of revenue in Q4, but Greenwald stated, “We expect the Fintech vertical to stabilize as we move forward based on the strength of our pipeline in this vertical.”
Final Takeaway
IBEX delivered a record-setting fourth quarter and fiscal year, with management pointing to sustainable market share gains, broad-based vertical growth, and the inflection of its AI solutions into full-scale production as key drivers. The company’s new guidance projects continued momentum in FY 2026, supported by a strong balance sheet, expansion into India, and ongoing digital transformation. Management emphasized that these achievements are structural and sustainable, positioning IBEX for further industry leadership and growth.
Read the full Earnings Call Transcript |
