IBEX Ltd Q4 FY2025 earnings call

• IBEX underwent a strategic transformation to become a differentiated customer experience company with pillars including culture, engagement, branding; purpose-built technology Wave X; and deep analytics capabilities (BPO 2.0). - FY '25 was a record year with record revenue, adjusted EBITDA, EPS, and strong free cash flow. - The company expanded into India, invested in offshore regions and the Wave iX tech stack. - Q4 2025 saw strong financial results across revenue, adjusted EBITDA, EPS, and free cash flow. - Vertical growth was evident in Retail & E-commerce, HealthTech, etc., with offshore regions contributing positively to margins.

In FY '25, IBEX achieved record fiscal year revenue of $558.3 million, a 10% increase from the prior year. Q4 revenue was $147.1 million, up 18.2% from the prior year quarter. Revenue growth was driven by verticals such as Retail & E-commerce (25% growth), HealthTech (19% growth), Travel, Transportation and Logistics (10% growth), and strong performance in the digital acquisition business. Offshore revenue grew 17% year-over-year, accounting for 49% of total revenue. Digital and omnichannel services made up 82% of total revenue, an increase from 77% in the prior year quarter.

• Fiscal 2026 revenue is expected to be in the range of $590 million to $610 million. - Adjusted EBITDA for fiscal 2026 is projected to be between $75 million and $79 million. - First quarter of fiscal 2026 revenue is expected to be $143 million to $146 million. - First quarter adjusted EBITDA for fiscal 2026 is forecasted to be $17.5 million to $19 million. - Capital expenditures for fiscal 2026 are expected to remain in the range of $20 million to $25 million.

Forward-looking statements are subject to various risks, uncertainties, and factors that could cause actual results to differ materially from expectations. These include risks related to market competition, technological advancements, and changes in client demand as detailed in the annual report on Form 10-K and subsequent SEC filings.

Q: David Koning inquired about Q4 sequential growth (up 5% sequentially) and the 'other' vertical that saw over 100% year-over-year growth.

A: Robert Dechant responded that the growth is sustainable, driven by winning market share in embedded base clients, growth in the digital acquisition business, and strong performance from the new logo team, citing examples like significant growth with a major e-commerce client across multiple regions