IBEX (NASDAQ:IBEX) Issues Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• IBEX beat the quarter with $0.91 EPS vs. $0.86 expected and $164.4M revenue (+17%)$22.0M Adjusted EBITDA and raising FY26 guidance to $638–$642M revenue and $82–$84M Adjusted EBITDA while increasing CapEx to $25–$30M.
• The company announced a strategic partnership with Sierra to integrate AI agent technology—management says rapid deployments should be accretive to margins—and its health‑tech vertical grew ~54% and is expected to exceed $100M this fiscal year.
• Offsetting positives, management recorded $0.8M of severance tied to a nearshore‑to‑offshore shift, saw a ~40 bps decline in Adjusted EBITDA margin, expects an additional asset impairment in Q4, and insiders have been net sellers as the stock traded down to about $28.11.

IBEX (NASDAQ:IBEX - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.91 EPS for the quarter, beating analysts' consensus estimates of $0.86 by $0.05, FiscalAI reports. The firm had revenue of $164.41 million for the quarter, compared to analysts' expectations of $157.00 million. IBEX had a net margin of 7.35% and a return on equity of 31.70%.

Here are the key takeaways from IBEX's conference call:

• Record quarterly results with revenue up 17% to $164.4 million, Adjusted EPS up 11% to $0.91, and a record Adjusted EBITDA of $22.0 million, marking multiple consecutive quarters of double‑digit growth.
• Announced a strategic partnership with Sierra to integrate their AI agent technology with IBEX's CX capabilities, with management citing rapid deployments, early wins, and expectations that AI services will be accretive to margins.
• The health tech vertical is a major growth driver—up ~54% and expected to exceed $100 million this fiscal year—driven by new large logos and share gains that management describes as sustainable.
• Raised FY26 guidance to $638–$642 million revenue and $82–$84 million Adjusted EBITDA, while increasing CapEx guidance to $25–$30 million to fund capacity expansion and AI investments.
• Management recorded $0.8 million of severance related to a nearshore‑to‑offshore volume shift, noted a ~40 bps decline in Adjusted EBITDA margin for the quarter, and expects an additional asset impairment charge in Q4 as it adjusts capacity.

IBEX Price Performance

NASDAQ IBEX traded down $0.24 during mid-day trading on Wednesday, hitting $28.11. The company's stock had a trading volume of 107,260 shares, compared to its average volume of 105,024. IBEX has a 52-week low of $25.00 and a 52-week high of $42.99. The stock's fifty day simple moving average is $28.33 and its two-hundred day simple moving average is $33.42. The firm has a market capitalization of $376.96 million, a P/E ratio of 9.25 and a beta of 0.66.

Insider Activity at IBEX

In other news, CEO Robert Thomas Dechant sold 6,000 shares of IBEX stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $28.46, for a total transaction of $170,760.00. Following the sale, the chief executive officer owned 275,406 shares in the company, valued at $7,838,054.76. This trade represents a 2.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Michael Joseph Darwal sold 1,660 shares of IBEX stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $34.98, for a total transaction of $58,066.80. Following the sale, the insider owned 42,185 shares in the company, valued at $1,475,631.30. This represents a 3.79% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 16,287 shares of company stock worth $498,499. Company insiders own 3.40% of the company's stock.

Institutional Trading of IBEX

Hedge funds have recently made changes to their positions in the company. Polymer Capital Management US LLC raised its stake in shares of IBEX by 15.3% during the fourth quarter. Polymer Capital Management US LLC now owns 10,584 shares of the company's stock valued at $404,000 after purchasing an additional 1,404 shares during the period. Nebula Research & Development LLC raised its stake in shares of IBEX by 57.5% during the second quarter. Nebula Research & Development LLC now owns 13,266 shares of the company's stock valued at $386,000 after purchasing an additional 4,843 shares during the period. Engineers Gate Manager LP raised its stake in shares of IBEX by 32.8% during the fourth quarter. Engineers Gate Manager LP now owns 9,462 shares of the company's stock valued at $361,000 after purchasing an additional 2,338 shares during the period. EP Wealth Advisors LLC purchased a new stake in shares of IBEX during the fourth quarter valued at approximately $337,000. Finally, NewEdge Advisors LLC purchased a new stake in shares of IBEX during the fourth quarter valued at approximately $315,000. Hedge funds and other institutional investors own 81.24% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on IBEX shares. Weiss Ratings lowered shares of IBEX from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, February 5th. Wall Street Zen raised shares of IBEX from a "buy" rating to a "strong-buy" rating in a research report on Saturday, February 21st. Three research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, IBEX presently has an average rating of "Hold" and an average target price of $35.00.

About IBEX

IBEX Holdings, Inc is a global business process outsourcing (BPO) company that specializes in customer experience solutions for a range of industries, including telecommunications, cable, technology, financial services and e-commerce. The company's core offerings encompass multichannel customer support delivered via voice, email, chat, social media and digital self-service platforms. In addition to front-line contact center services, IBEX provides back-office processing, order management, technical troubleshooting and analytics-driven insights to help clients optimize operational efficiency and customer satisfaction.

Beyond traditional contact center operations, IBEX has built a proprietary technology stack designed to integrate real-time data analytics, workforce management and quality assurance.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.