IBEX Limited Reports 6.1% Revenue Growth to $140.7 Million in Q2 FY2025

IBEX Limited reported a solid financial performance for the second quarter of fiscal year 2025, with revenues reaching $140.7 million, a 6.1% increase from $132.6 million in the same quarter of the previous year. For the six-month period ending December 31, 2024, total revenues amounted to $270.4 million, reflecting a 5.1% growth compared to $257.2 million in the prior year. The company’s net income for the quarter was $9.3 million, a significant 52.6% increase from $6.1 million year-over-year, while net income for the six months was $16.8 million, up 24.4% from $13.5 million in the same period last year. Fully diluted earnings per share also improved, rising to $0.57 for the quarter and $1.00 for the six months.

The financial results were bolstered by growth in key sectors, particularly HealthTech, Travel, Transportation & Logistics, and Retail & E-commerce. The HealthTech vertical alone saw a revenue increase of 31.2% year-over-year. The company attributed its revenue growth to new client acquisitions and an increase in market share within existing clients, particularly in higher-margin offshore regions. However, the FinTech sector experienced a decline, with revenues decreasing by 14.7% compared to the previous year.

Operationally, IBEX expanded its capacity in offshore and nearshore regions, launching two new sites during the reporting period. The company’s workforce has grown to approximately 33,000 employees, supporting its global customer experience delivery model. The shift towards lower-cost geographies has allowed IBEX to optimize its operational delivery and improve margins. The company reported a decrease in payroll costs as a percentage of revenue, reflecting its strategy to enhance profitability through geographic optimization.

In terms of strategic developments, IBEX entered into new credit agreements with HSBC, securing a $25 million revolving credit facility and a $50 million post-shipment seller revolving loan facility. This move replaced a previous credit facility with PNC Bank and is expected to provide the company with additional liquidity for operational and strategic initiatives. The company also engaged in share repurchase programs, buying back 327,230 shares for $5.6 million during the six months ended December 31, 2024.

Looking ahead, IBEX remains optimistic about its growth trajectory, particularly in leveraging artificial intelligence to enhance its service offerings. The company is focused on maintaining its competitive edge in the business process outsourcing sector while navigating macroeconomic challenges such as inflation and rising interest rates. Management anticipates that the ongoing demand for cost-effective solutions will continue to drive business opportunities, particularly as clients seek to optimize their operations in response to economic pressures.