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

IBEX (NASDAQ:IBEX) announced its quarterly earnings results on Thursday. The company reported $0.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to analyst estimates 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. IBEX has a 1-year low of $25.94 and a 1-year high of $42.99. The firm’s 50-day moving average price is $35.95 and its 200-day moving average price is $31.77. The firm has a market capitalization of $532.88 million, a price-to-earnings ratio of 12.72 and a beta of 0.72.

Analyst Ratings Changes

A number of analysts have recently weighed in on IBEX shares. Weiss Ratings reiterated a “hold (c+)” rating on shares of IBEX in a report on Friday, July 31st. Wall Street Zen lowered IBEX from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Finally, Robert W. Baird upped their price target on IBEX from $35.00 to $40.00 and gave the company a “neutral” rating in a research report on Friday. Three analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $40.00.

Key Headlines Impacting IBEX

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

Insider Transactions at IBEX

In other IBEX news, COO David Afdahl sold 17,500 shares of the firm’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $37.09, for a total value of $649,075.00. Following the completion of the sale, the chief operating officer directly owned 140,006 shares in the company, valued at $5,192,822.54. This trade represents a 11.11% decrease in their ownership of the stock. The sale was disclosed in a 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 insiders.

Institutional Investors Weigh In On IBEX

Several hedge funds have recently made changes to their positions in IBEX. Ieq Capital LLC grew its position in shares of IBEX by 3.8% in the 4th quarter. Ieq Capital LLC now owns 11,772 shares of the company’s stock worth $449,000 after buying an additional 429 shares during the period. Polymer Capital Management US LLC lifted its holdings 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 last quarter. Nebula Research & Development LLC boosted its position in shares of IBEX by 57.5% in the 2nd quarter. Nebula Research & Development LLC now owns 13,266 shares of the company’s stock worth $386,000 after purchasing an additional 4,843 shares in the last quarter. Evolve Private Wealth LLC bought a new position in IBEX during the 4th quarter valued at approximately $371,000. Finally, Engineers Gate Manager LP increased its position in IBEX by 32.8% during the 4th quarter. Engineers Gate Manager LP now owns 9,462 shares of the company’s stock valued at $361,000 after buying an additional 2,338 shares in the last quarter. 81.24% of the stock is currently owned by institutional investors.

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.