Ibex Ltd ((IBEX)) has held its Q4 earnings call. Read on for the main highlights of the call.
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IBEX Ltd’s recent earnings call painted a picture of robust growth and strategic advancements, setting a positive tone for the company’s future. The sentiment was overwhelmingly optimistic, driven by record-breaking financial metrics and successful strategic initiatives. Despite some challenges, such as increased expenses and a dip in the Fintech vertical, IBEX’s overall performance and strategic positioning suggest a promising outlook.
Record Fiscal Year Revenue
IBEX Ltd achieved a milestone with its fiscal year revenue reaching $558.3 million, marking a 10% increase from the previous year. The fourth quarter alone saw an 18% rise in revenues compared to the same period last year, underscoring the company’s strong market presence and growth trajectory.
Strong Adjusted EBITDA and Net Income
The company reported a record adjusted EBITDA of $72 million, reflecting a growth of over 10% from the previous year. Additionally, the adjusted earnings per share (EPS) climbed to $2.75, a significant 31% increase, with adjusted net income rising by 12% to $43 million, highlighting the company’s efficient operational management.
Impressive Growth in Key Verticals
IBEX’s revenue growth was notably driven by key verticals such as Retail & E-commerce, which saw a 25% increase, HealthTech with a 19% rise, and Travel, Transportation, and Logistics growing by 10%. These sectors have been pivotal in bolstering the company’s overall financial performance.
Strong Free Cash Flow
The company reported a record free cash flow of $27 million for the fiscal year, with $23 million generated in the fourth quarter alone. This marks the strongest quarter ever for IBEX in terms of cash flow, providing a solid foundation for future investments and growth.
Successful AI Integration
IBEX has successfully integrated AI solutions, transitioning from proof of concept to full-scale deployments in the fourth quarter. This strategic move is expected to provide a competitive advantage and position the company for continued growth in the coming years.
Expansion into New Markets
The company has significantly expanded into new markets, notably India, with offshore revenue increasing by 17% year-over-year. This expansion is a testament to IBEX’s strategic vision and its ability to tap into emerging markets.
Healthy Balance Sheet
IBEX maintains a healthy balance sheet with zero net debt and strong free cash flow generation. This financial stability allows the company to invest in growth opportunities and weather potential market fluctuations.
Increased SG&A Expenses
The company reported higher selling, general, and administrative expenses due to investments in teams, technology, and expansion efforts. While these expenses slightly impacted net income, they are seen as necessary for supporting long-term growth.
Decline in Fintech Vertical
The Fintech vertical saw a decline, with its contribution to revenue dropping to 10.6% from 13.7% in the previous year. This decrease highlights the challenges within this sector, although it remains a smaller part of IBEX’s overall revenue mix.
Forward-Looking Guidance
Looking ahead, IBEX provided optimistic guidance for fiscal 2026, projecting revenues between $590 million and $610 million, with adjusted EBITDA expected to range from $75 million to $79 million. For the first quarter of fiscal 2026, revenue is anticipated to be between $143 million and $146 million, with adjusted EBITDA estimated at $17.5 million to $19 million. These projections reflect the company’s confidence in sustaining its growth momentum.
In summary, IBEX Ltd’s earnings call highlighted a year of record-breaking achievements and strategic advancements. The company’s positive sentiment is supported by strong financial performance, successful AI integration, and strategic market expansions. While challenges such as increased expenses and a decline in the Fintech vertical exist, IBEX’s overall outlook remains promising, with forward-looking guidance suggesting continued growth.