The chart below shows how IBEX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, IBEX sees a +0.26% change in stock price 10 days leading up to the earnings, and a +6.72% change 10 days following the report. On the earnings day itself, the stock moves by +0.27%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Q2 Revenue Growth: IBEX Limited reported record Q2 revenue of $140.7 million, reflecting a 6.1% increase from $132.6 million in the prior year quarter.
EBITDA Margin Improvement: Adjusted EBITDA margin improved by 100 basis points to 11.8%, driven by growth in higher margin offshore regions and key verticals.
Adjusted Net Income Growth: Adjusted net income rose to $9.6 million, a 20% increase from $8 million in the prior year quarter, showcasing strong profitability growth.
Adjusted EPS Increase: Adjusted EPS increased by 36% to $0.59, up from $0.44 in the prior year quarter, reflecting improved earnings performance.
Share Repurchase Strategy: The company executed a strategic repurchase of approximately 3.6 million shares, enhancing independence and shareholder value.
Negative
FinTech Revenue Decline: Revenue decline in FinTech vertical by 15%, indicating a significant loss in this segment.
Increased Days Sales Outstanding: Days Sales Outstanding (DSOs) increased to 79 days from 75 days, reflecting a delay in client payments and potential cash flow issues.
Free Cash Flow Challenges: Free cash flow reported an outflow of $3.2 million, although improved from a $4.5 million outflow in the prior year, still indicating cash management challenges.
Cash Position Decline: Net cash position decreased to $20.2 million with net debt rising to $13.7 million, a stark contrast to a net cash position of $60.8 million at the end of the previous quarter.
Increased Capital Expenditures: Capital expenditures increased to $4.3 million or 3.1% of revenue, up from $2.9 million or 2.2% of revenue in the prior year, indicating rising operational costs.
IBEX Limited (NASDAQ:IBEX) Q2 2025 Earnings Call Transcript
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