Executive Summary
IBEX Limited delivered a record Q3 2025 with revenue of $140.7 million, up 11% year over year, driven by strength in higher-margin offshore delivery and growth in digital/omnichannel services. GAAP operating income rose to $13.3 million, and adjusted EBITDA reached $19.4 million (adjusted EBITDA margin 13.8%), reflecting ongoing investments in India and in scaling the Wave iX AI solution stack. Management raised full-year guidance on both revenue and EBITDA to reflect favorable demand dynamics, and announced a new $15 million share repurchase program in addition to repaying TRGI-related debt, underscoring confidence in the trajectory and capital allocation framework. The quarter also featured meaningful strategic progress, including the first entry into India for a leading healthcare client, a robust AI pipeline (75 opportunities with nine deployments expected in Q4), and four new logo wins across health tech, fintech, and retail/e-commerce verticals. While near-term margin pressure partly reflects investments in India and AI-scale initiatives, IBEX is positioned to drive margin expansion through offshore strength, higher-margin digital/omnichannel mix (now 81% of revenue), and AI-driven deployments that are moving from pilots to full production.
Looking ahead, the company expects FY2025 revenue of $540–$545 million and adjusted EBITDA of $68–$70 million, with capital expenditures of $15–$20 million. The combination of a diversified client base, an expanding offshore footprint, an expanding AI toolkit, and a growing Indian footprint provides a constructive setup for sustained growth into FY2026, though investors should monitor AI deployment ramp timing, client concentration dynamics, and macro-related demand volatility.
Key Performance Indicators
Key Insights
Revenue: $140.736 million in Q3 2025, up 11% YoY; QoQ growth was essentially flat to modestly positive per management commentary. Gross Profit: $44.719 million; Gross Margin: 31.8% (up 50 bps YoY). Operating Income: $13.329 million; Operating Margin: 9.47%. EBITDA: $17.690 million; EBITDA Margin (GAAP): ~12.6%; Adjusted EBITDA: $19.4 million; Adjusted EBITDA Margin: 13.8%.
Net Income: $10.469 million; Net Income Margin: 7.44%. Diluted EPS: $0.73; GAAP EPS: $0.79; Non-GAAP EPS: $0.82.
Cash Flow: ...
Financial Highlights
Revenue: $140.736 million in Q3 2025, up 11% YoY; QoQ growth was essentially flat to modestly positive per management commentary. Gross Profit: $44.719 million; Gross Margin: 31.8% (up 50 bps YoY). Operating Income: $13.329 million; Operating Margin: 9.47%. EBITDA: $17.690 million; EBITDA Margin (GAAP): ~12.6%; Adjusted EBITDA: $19.4 million; Adjusted EBITDA Margin: 13.8%.
Net Income: $10.469 million; Net Income Margin: 7.44%. Diluted EPS: $0.73; GAAP EPS: $0.79; Non-GAAP EPS: $0.82.
Cash Flow: Operating cash flow $8.829 million; Free cash flow $3.561 million. Capex: $5.267 million (3.7% of revenue). Balance Sheet: Cash $12.98 million; Total debt $91.77 million; Net debt $7.79 million. Equity: Total stockholders’ equity $124.18 million; Total assets $274.73 million; Current ratio 1.67.
Liquidity and Leverage: DSO 77 days (improved from 79 days); Net debt decreased by $6.1 million vs. prior quarter after repayment of a $25 million TRGI convertible note. Offshore revenue now 51% of total (vs. 48% prior year). Digital/Omnichannel mix 81% of revenue (up from 78%). Top client concentration 11% of revenue; Top 5 concentration 38%; Top 10 54%; Top 25 80%. Guidance update and capital returns: new $15 million share repurchase program; guidance raised for revenue and EBITDA.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
140.74M |
10.99% |
0.04% |
| Gross Profit |
44.72M |
12.61% |
6.68% |
| Operating Income |
13.33M |
18.14% |
11.75% |
| Net Income |
10.47M |
1.54% |
12.96% |
| EPS |
0.79 |
33.90% |
29.51% |
Key Financial Ratios
operatingProfitMargin
9.47%
operatingCashFlowPerShare
$0.67
freeCashFlowPerShare
$0.27
Management Commentary
- Strategy and execution: IBEX returned to double-digit organic revenue growth (11%), marking the best growth in more than two years and the highest quarterly revenue in company history. - Margin and mix: Offshore delivery grew 19% YoY, contributing to a gross margin expansion of 50 bps to 31.8%; digital/omnichannel solutions now represent 81% of revenue, up from 78%. - AI and growth engines: Wave iX AI solutions delivered multiple wins and launches; pipeline exceeds 75 opportunities with nine deployments expected in Q4, signaling a tangible path to revenue and margin expansion in FY2026. - Geographic diversification: Entry into India for a leading healthcare client underscores strategic diversification and delivery flexibility; management expects continued high-margin offshore growth. - Capital allocation: Management raised full-year guidance, announced a $15 million share repurchase, and completed repayment of the TRGI seller financing note, signaling strong balance sheet discipline and a commitment to shareholder value.
"We have returned to double-digit organic revenue growth at 11%. This marks our best growth in more than two years and resulted in our highest revenue for a quarter ever as a company."
— Bob Dechant
"Offshore revenues now comprise 51% of total revenue versus 48% in the prior year quarter, contributing to our 50 basis point gross margin improvement to 31.8%."
— Taylor Greenwald
Forward Guidance
Management raised FY2025 guidance to revenue of $540–$545 million and adjusted EBITDA of $68–$70 million, with capex of $15–$20 million. The trajectory implies a medium-term margin expansion as AI deployments move from pilots to full production and offshore/digital omnichannel mix remains elevated. The company expects nine Wave iX AI deployments in FY2026 (beyond Q4), and a robust pipeline of over 75 opportunities, suggesting a step-up in project rollouts and higher-margin services. Key factors investors should monitor include: AI deployment timing and contract economics (pilot-to-production ramp), execution in India and other offshore geographies, potential FX impact, client concentration dynamics (top 25 clients representing ~80% of revenue), and the sustainability of the higher-margin mix as offshore revenue stabilizes around the 50%+ level.