Ibex Ltd (IBEX)
NASDAQ:IBEX
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IBEX
(NASDAQ:IBEX)
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Rating:78Outperform
Price Target:
$35.00
▲(22.29% Upside)
Action:Reiterated
Date:05/14/26
IBEX scores well on valuation (low P/E) and earnings-call momentum (raised guidance, record results, and AI-driven growth narrative). Financials are generally improving (lower leverage, positive and growing free cash flow), but the overall score is tempered by the sharp TTM gross margin drop and subpar cash conversion. Technically, the stock shows improving near-term momentum, though it remains below longer-term moving averages.
Positive Factors
Revenue growth and vertical diversification
IBEX has re-accelerated organic growth with five consecutive quarters of strong top-line expansion and outsized HealthTech and onshore growth. Durable multi-vertical demand and expanding onshore mix support a larger, higher-value revenue base and reduce reliance on any single segment over the medium term.
Negative Factors
Sharp gross margin decline
A substantial drop in gross margin signals rising delivery costs or pricing pressure in core contact-center operations. Because gross margin underpins operating leverage, this erosion threatens sustainable operating profit levels unless offset by pricing, efficiency gains, or a durable shift to higher-value digital services.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and vertical diversification
IBEX has re-accelerated organic growth with five consecutive quarters of strong top-line expansion and outsized HealthTech and onshore growth. Durable multi-vertical demand and expanding onshore mix support a larger, higher-value revenue base and reduce reliance on any single segment over the medium term.
Read all positive factors
IBEX (IBEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$423.63M
Dividend YieldN/A
Average Volume (3M)115.97K
Price to Earnings (P/E)9.0
Beta (1Y)1.03
Revenue Growth17.04%
EPS Growth45.20%
CountryUS
Employees33,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)3.52
Shares Outstanding13,389,116
10 Day Avg. Volume104,537
30 Day Avg. Volume115,972
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)3.18
Price to Sales (P/S)0.77
P/FCF Ratio15.65
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit2.65
Enterprise Value/Ebitda6.17
Forecast
1Y Price Target
$40.00Price Target Upside39.76% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.42
Revenue Forecast (FY)$624.63M
IBEX Business Overview & Revenue Model
Company Description
IBEX Limited provides end-to-end technology-enabled customer lifecycle experience solutions in the United States and internationally. The company provides ibex Connect, a customer engagement solution that comprises customer service, technical supp...
How the Company Makes Money
IBEX primarily makes money by providing outsourced customer experience and business process services to enterprise clients under service contracts. Revenue is largely generated from operating contact center and CX programs (e.g., customer care, te...
IBEX Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 10, 2026
Earnings Call Sentiment Positive
The call highlighted a strong quarter with record revenue, adjusted EBITDA and EPS, broad-based high-margin vertical and geographic growth (notably HealthTech), robust cash flow, raised guidance, and a strategically important AI partnership that is delivering early wins. Near-term headwinds were noted around margin pressure from work-shifting (nearshore to offshore), a one-time severance and an anticipated asset impairment, a pronounced decline in the telecommunications vertical, and acknowledged potential for some AI-driven cannibalization of human volumes. Overall, the positives—organic double-digit growth across multiple quarters, margin expansion year-to-date, strong client retention and diversification, healthy cash generation, and a potentially transformative AI partnership—materially outweigh the manageable near-term challenges.Positive Updates
Record Revenue Growth
Third quarter revenue of $164.4 million, an increase of 16.8% year-over-year (from $140.7 million), marking the fifth consecutive quarter of double-digit revenue growth.
Negative Updates
Adjusted EBITDA Margin Pressures This Quarter
Quarterly adjusted EBITDA margin declined by ~40 basis points to 13.4% driven in part by temporary impacts of shifting work from nearshore to offshore and deferred training revenue, and management flagged a related near-term margin headwind.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue Growth
Third quarter revenue of $164.4 million, an increase of 16.8% year-over-year (from $140.7 million), marking the fifth consecutive quarter of double-digit revenue growth.
Read all positive updates
Company Guidance
Management raised full-year FY‑2026 guidance, now expecting revenue of $638–$642 million (up from $620–$630M) and adjusted EBITDA of $82–$84 million (up from $80–$82M), while increasing capital expenditures to $25–$30 million (from $20–$25M) to fund capacity and AI investments; they expect a Q4 effective tax rate before discrete items of ~19% and DSOs to remain stable in the low‑ to mid‑70s. Year‑to‑date adjusted EBITDA margin is up 50 basis points to 13%, Q3 free cash flow was $6.6 million, Q3 net cash was ~$14.0 million (cash $15.4M less $1.4M debt), and the company has repurchased 310,000 shares for $10.1M year‑to‑date with $3.2M remaining on the buyback authorization.IBEX Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
73
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 626.95M | 558.27M | 508.57M | 523.12M | 492.85M | 443.39M |
| Gross Profit | 177.33M | 172.58M | 152.03M | 148.13M | 118.88M | 108.14M |
| EBITDA | 76.07M | 64.80M | 60.96M | 60.10M | 38.77M | 31.16M |
| Net Income | 47.18M | 36.86M | 33.66M | 31.58M | 21.46M | 13.09M |
Balance Sheet | ||||||
| Total Assets | 297.25M | 273.21M | 293.90M | 293.32M | 294.18M | 274.29M |
| Cash, Cash Equivalents and Short-Term Investments | 15.41M | 15.35M | 62.72M | 57.43M | 48.83M | 57.84M |
| Total Debt | 61.02M | 69.75M | 67.02M | 78.90M | 105.54M | 112.52M |
| Total Liabilities | 136.46M | 138.91M | 128.10M | 143.36M | 180.72M | 193.63M |
| Stockholders Equity | 160.78M | 134.31M | 165.80M | 149.96M | 113.46M | 80.66M |
Cash Flow | ||||||
| Free Cash Flow | 32.31M | 27.29M | 27.05M | 22.91M | 14.09M | -4.75M |
| Operating Cash Flow | 62.12M | 45.67M | 35.90M | 41.86M | 40.01M | 16.08M |
| Investing Cash Flow | -29.80M | -18.38M | -8.86M | -19.04M | -25.92M | -20.82M |
| Financing Cash Flow | -29.69M | -74.66M | -21.73M | -13.61M | -22.13M | 40.90M |
IBEX Technical Analysis
Positive
28.62
Price Trends
29.09
Positive
31.09
Positive
33.48
Negative
Market Momentum
0.76
Negative
57.81
Neutral
64.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBEX, the sentiment is Positive. The current price of 28.62 is below the 20-day moving average (MA) of 30.83, below the 50-day MA of 29.09, and below the 200-day MA of 33.48, indicating a neutral trend. The MACD of 0.76 indicates Negative momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 64.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBEX.
IBEX Risk Analysis
IBEX disclosed 49 risk factors in its most recent earnings report. IBEX reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IBEX Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.43B | 87.17 | 37.48% | ― | 40.10% | 2.61% | |
78 Outperform | $423.63M | 9.02 | 31.81% | ― | 17.04% | 45.20% | |
67 Neutral | $579.69M | 5.45 | 21.23% | ― | 15.95% | 88.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $462.66M | 26.74 | 25.27% | ― | -12.59% | 33.81% | |
57 Neutral | $290.43M | 20.61 | 15.84% | 2.41% | -5.71% | -38.81% | |
51 Neutral | $334.63M | -0.95 | 125.36% | ― | 0.15% | -359.97% |
* Technology Sector Average
IBEX
IBEX
31.64
3.19
11.21%
INOD
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104.98
61.12
139.35%
HCKT
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11.53
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UIS
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4.59
-0.04
-0.86%
TSSI
TSS
16.48
2.02
13.97%
TASK
TaskUs
6.33
-4.60
-42.08%
IBEX Corporate Events
Business Operations and StrategyStock Buyback
Ibex Announces $20 Million Share Repurchase Authorization
Positive
May 13, 2026
On May 11, 2026, Ibex Limited’s board approved a share repurchase plan allowing the company to buy back up to $20 million of its common stock over one year starting May 14, 2026, using existing cash and free cash flow. Purchases may be execu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.