IBEX (IBEX) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 revenue of $140.7 million, up 6.1% year-over-year, marking the highest quarterly revenue in company history and the highest growth in nine quarters.

• Adjusted EBITDA margin expanded by 100 basis points to 11.8%, with adjusted net income up 20% to $9.6 million and adjusted EPS up 36% to $0.59 year-over-year.

• Repurchased 3.6 million shares (21% of outstanding) for $70 million, eliminating controlled company status and enhancing independence.

• Closed five new client logos in the quarter, totaling eight year-to-date, with significant generative AI solution deployments and continued digital-first transformation.

• Strengthened board with three new directors bringing industry and AI expertise.

Financial highlights

• Revenue grew 6.1% year-over-year to $140.7 million, driven by strong vertical growth in HealthTech (+31.2%), Travel/Logistics (+16.7%), and Retail/E-commerce (+4.4%), partially offset by a 14.7% decline in FinTech.

• Offshore revenues rose to 53% of total revenue (from 49% prior year), and digital/omnichannel delivery reached 80% of revenue.

• Net income increased to $9.3 million from $6.1 million year-over-year; fully diluted EPS rose to $0.57 from $0.33.

• Adjusted EBITDA was $16.5 million (11.8% margin), up from $14.3 million (10.8% margin) year-over-year.

• Net cash from operations was $1.1 million, reversing a prior year outflow; free cash flow was $(3.2) million.

Outlook and guidance

• Fiscal year 2025 revenue guidance raised to $525–$535 million (from $515–$525 million).

• Adjusted EBITDA guidance increased to $68–$69 million (from $67–$69 million).

• Capital expenditures expected to remain $15–$20 million.

• Management expects continued growth in offshore and nearshore delivery, leveraging AI-enabled solutions to drive future revenue and profitability.

• DSOs expected to stabilize in the mid-70s.