TLDR
- IBEX surges 22.8% after record Q4 earnings, AI expansion, and bold buybacks
- AI push, buybacks, and record growth send IBEX soaring in after-hours trade
- IBEX crushes earnings, boosts EPS with buybacks, stock jumps nearly 23%
- Record revenue, AI rollout, and guidance fuel IBEX’s post-earnings rally
- IBEX rallies on record Q4, strong FY25, buybacks, and bullish FY26 outlook
IBEX Limited closed at $30.46 on September 11 and then surged 22.82% in after-hours trading to $37.41.
The post-market rally followed the company’s fiscal Q4 2025 earnings announcement, which revealed record-breaking revenue and profit. Strong guidance, expanding AI operations, and aggressive share buybacks further lifted sentiment.
Record-Breaking Quarter and Fiscal Year Performance
IBEX posted fourth-quarter revenue of $147.1 million, reflecting an 18.2% increase from the prior year. This marked the company’s fastest quarterly growth rate in nearly three years and capped a full-year revenue total of $558.3 million, up 9.8%. EPS for the quarter hit $0.66, with adjusted EPS soaring 50% to $0.87.
Despite a slight decline in net income margin, IBEX expanded its adjusted net income by 23.3% to $12.6 million. Full-year net income reached $36.9 million, increasing 9.5% year-over-year, while adjusted EPS for the year rose to $2.75 from $2.10. The company surpassed the high end of its revenue and adjusted EBITDA guidance, indicating effective operational execution.
IBEX’s revenue growth came from strong verticals like Retail & E-commerce, HealthTech, and Logistics. Particularly, HealthTech grew by over 23% annually, positioning the segment as a major driver for future earnings. The company credited its consistent momentum to both new client acquisitions and deeper expansion within existing accounts.
AI Expansion and Operational Efficiency Fuel Market Optimism
IBEX announced full-scale deployment of its AI solutions during the quarter, transitioning from proof of concept. This milestone was critical in driving top-line results and is expected to power continued growth. The firm’s AI-backed customer engagement tools played a pivotal role in winning market share.
Strong free cash flow generation supported its strategic moves, including the scaling of operations in high-margin offshore regions. The company reported a record $22.8 million in quarterly free cash flow, bringing the annual figure to $27.3 million. With net cash of $13.7 million, the balance sheet remains strong despite elevated capital spending.
Capital expenditures rose to $18.4 million, more than doubling from last year due to global expansion. This included investments in its India operations, marking a major geographic milestone. Management emphasized the importance of these investments in sustaining long-term efficiency and competitiveness.
Buybacks Eliminate Controlled Status and Boost EPS
IBEX completed repurchases totaling $77.2 million, including a $70 million deal with TRGI, eliminating its controlled company designation. These buybacks reduced the share count by 23%, significantly lifting EPS and providing long-term shareholder value. Approximately 3.9 million shares were bought back during fiscal 2025.
This aggressive repurchase program contributed to EPS growth even as operating margins remained stable. The diluted share count dropped from 18.3 million to 15.7 million, amplifying per-share profitability. The company continued share repurchases in Q4 with 0.1 million shares bought back for $1.7 million.
With stronger earnings per share, rising revenue, and reduced share count, the financial picture looks resilient heading into fiscal 2026. Management also highlighted the improved earnings quality due to operational leverage and a focus on high-margin clients. This structure supports durable profitability.
Confident Guidance for Fiscal 2026
IBEX expects fiscal year 2026 revenue between $590 and $610 million, signaling sustained momentum. Adjusted EBITDA is projected in the $75 to $79 million range, pointing to continued margin discipline. Q1 revenue is forecast between $143 and $146 million, with adjusted EBITDA of up to $19 million.
The company anticipates capital expenditures of $20 to $25 million to fuel additional capacity growth. With a robust cash position and operational tailwinds, IBEX remains confident in its ability to maintain growth. Continued AI investments and geographic expansion will remain key pillars of its strategy.
As the company enters fiscal 2026 with strong fundamentals, investors have rewarded its proactive execution. The after-hours stock jump reflects market confidence in IBEX’s growth trajectory and capital return plans.
