IBEX (NASDAQ:IBEX) Posts Earnings Results, Beats Expectations By $0.01 EPS

IBEX (NASDAQ:IBEX) announced its earnings results on Thursday. The company reported $0.85 earnings per share for the quarter, topping the consensus estimate of $0.84 by $0.01, FiscalAI reports. IBEX had a net margin of 7.19% and a return on equity of 29.77%. The business had revenue of $164.27 million during the quarter, compared to the consensus estimate of $160.02 million.

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

• Record fiscal 2026 performance included revenue of $644.1 million, up 15.4%, record adjusted EBITDA of $82.4 million, and record free cash flow of $31.2 million.
• IBEX added nine trophy clients in the fourth quarter and 17 for the year, while client retention exceeded 99% and client NPS remained strong at 71.
• AI-enabled solutions are gaining traction across five verticals, with deployments achieving resolution rates above 20%-40% and customer satisfaction above 4.7 out of 5; management said AI is generating incremental rather than cannibalized revenue.
• Health tech revenue grew 38% for the year to $114 million, surpassing the company’s $100 million target, and management highlighted strong pipelines in health care, e-commerce, and travel.
• Fourth-quarter adjusted EBITDA margin declined to 12.3% from 13.9% a year earlier due to new-client training costs, nearshore-to-offshore transitions, and higher fuel-related expenses, although management expects margin expansion in the first quarter of fiscal 2027.

IBEX Trading Up 6.8%

Shares of IBEX opened at $39.80 on Friday. The stock’s 50 day moving average is $35.95 and its two-hundred day moving average is $31.77. The firm has a market capitalization of $532.88 million, a PE ratio of 12.72 and a beta of 0.72. IBEX has a twelve month low of $25.94 and a twelve month high of $42.99.

IBEX News Summary

Here are the key news stories impacting IBEX this week:

• Positive Sentiment: Above-consensus fiscal 2027 outlook: IBEX forecast fiscal 2027 revenue of $700 million to $715 million, well above the $678.5 million analyst consensus. First-quarter fiscal 2027 revenue guidance of $168 million to $170 million also exceeded the $161.4 million consensus. The outlook reflects continued growth in AI-powered customer-experience services, including the Sierra AI partnership. IBEX fiscal 2026 results and fiscal 2027 guidance
• Positive Sentiment: Quarterly earnings beat estimates: IBEX reported adjusted earnings of $0.85 per share, topping the $0.84 consensus, while revenue reached $164.27 million versus expectations of $160.02 million. A 7.53% net margin and 31.50% return on equity further support the company’s strong operating performance. IBEX quarterly earnings report
• Positive Sentiment: Price target raised: Robert W. Baird increased its IBEX target from $35 to $40. However, the firm maintained a neutral rating, suggesting limited additional upside at recent trading levels.
• Neutral Sentiment: Short-interest data offers little signal: Reported short interest was zero shares, meaning there is no measurable short-covering catalyst or significant reported bearish positioning.
• Negative Sentiment: COO sold shares: Chief Operating Officer David Afdahl sold 17,500 shares worth approximately $649,075, reducing his direct ownership by 11.11%. The transaction occurred under a pre-arranged Rule 10b5-1 plan, which makes it a less concerning signal than a discretionary insider sale. IBEX insider trading filing

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Robert W. Baird boosted their price target on IBEX from $35.00 to $40.00 and gave the company a “neutral” rating in a research report on Friday. Wall Street Zen cut IBEX from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of IBEX in a research note on Friday, July 31st. Three equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $40.00.

Insider Buying and Selling at IBEX

In related news, COO David Afdahl sold 17,500 shares of the company’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $37.09, for a total transaction of $649,075.00. Following the transaction, the chief operating officer owned 140,006 shares of the company’s stock, valued at $5,192,822.54. This represents a 11.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On IBEX

A number of hedge funds and other institutional investors have recently bought and sold shares of IBEX. Qube Research & Technologies Ltd lifted its stake in shares of IBEX by 11.1% in the third quarter. Qube Research & Technologies Ltd now owns 103,479 shares of the company’s stock valued at $4,193,000 after purchasing an additional 10,311 shares during the period. AQR Capital Management LLC boosted its holdings in IBEX by 4.6% during the second quarter. AQR Capital Management LLC now owns 146,306 shares of the company’s stock worth $4,258,000 after buying an additional 6,404 shares in the last quarter. Two Sigma Investments LP grew its position in IBEX by 7.0% during the third quarter. Two Sigma Investments LP now owns 165,881 shares of the company’s stock worth $6,721,000 after buying an additional 10,868 shares during the period. Marshall Wace LLP acquired a new position in IBEX during the third quarter worth about $7,685,000. Finally, Vanguard Group Inc. increased its holdings in IBEX by 25.6% in the third quarter. Vanguard Group Inc. now owns 170,736 shares of the company’s stock valued at $6,918,000 after buying an additional 34,807 shares in the last quarter. Institutional investors and hedge funds own 81.24% of the company’s stock.

IBEX Company Profile

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.