IBEX (IBEX) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 FY2025 revenue of $129.7 million, up 4.1% year-over-year, with strong growth in Health Tech, Retail & E-commerce, and Travel verticals, marking a return to organic growth after industry challenges.

• Set first-quarter records in net income ($7.5 million), EPS ($0.43), and adjusted EBITDA ($15.6 million, 12% margin), with margin expansion in nine of the last ten quarters.

• Growth driven by new client wins, market share gains, and expansion in higher-margin services, geographies, and AI-driven solutions.

• Continued investment in AI solutions, with notable wins and industry recognition for AI Translate and AI Automate.

• Repurchased 282,000 shares for $4.7 million, maintaining a net cash position of $60.8 million.

Financial highlights

• Q1 revenue: $129.7 million, up from $124.6 million year-over-year; Health Tech up 23.4%, Retail & E-commerce up 8.6%, Travel up 10.0%, FinTech down 13%.

• Adjusted EBITDA: $15.6 million (12% margin), up from $13.7 million (11% margin) year-over-year.

• Adjusted net income: $9.0 million (7.0% margin), up from $7.6 million (6.1% margin) year-over-year.

• Adjusted EPS: $0.52, up 30% from $0.40 year-over-year; diluted EPS $0.43, up from $0.39.

• Free cash flow: $4.1 million, down from $6.6 million year-over-year due to higher capex and longer DSOs.

Outlook and guidance

• FY2025 revenue guidance raised to $515–$525 million, up from previous $510–$525 million.

• Adjusted EBITDA guidance for FY2025: $67–$69 million; capital expenditures projected at $15–$20 million.

• Management expects continued growth in key verticals, margin improvement from offshore migration, and AI-driven digital transformation.