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.

• Net income increased to $9.3 million from $6.1 million year-over-year, with diluted EPS up to $0.57 from $0.33.

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

• Growth driven by new client wins, significant expansion in offshore/nearshore capacity, and strategic investments in AI and sales resources.

Financial highlights

• Revenue grew 6.1% year-over-year to $140.7 million, led by 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, up from 49% a year ago; digital and omnichannel services reached 80% of revenue.

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

• Net income for Q2 was $9.3 million, up from $6.1 million; fully diluted EPS was $0.57, up from $0.33.

• Free cash flow was $(3.2) million, an improvement from $(4.5) million in the prior year quarter; net cash from operations was $1.1 million.

Outlook and guidance

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

• Adjusted EBITDA guidance increased to $68–$69 million (previously $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.

• Liquidity position and credit facilities are considered sufficient for operational needs for at least the next twelve months.