Cash flow generation remains inconsistent, with the OCF/NI ratio fluctuating between 0.12 and 2.91, and liquidity is constrained by a cash balance that declined to $15.4M in 2026Q3 from $62.7M in 2024Q4.
| Cash from Operations | 62.12M | 45.67M | 35.9M | 41.86M | 40.01M | 16.08M | 51.72M | 2.2M | -5.75M | 6.65M | 3.04M |
| Operating CF Margin % | - | 8.18% | 7.06% | 8% | 8.12% | 3.63% | 12.77% | 0.6% | -1.68% | 1.99% | 0.94% |
| Operating CF Growth % | 678.92% | 27.21% | -14.24% | 4.63% | 148.84% | -68.91% | 2248.73% | 138.32% | -186.47% | 118.47% | - |
| Net Income | 47.18M | 36.86M | 33.66M | 31.58M | 21.46M | 13.09M | 7.77M | 19.41M | -15.94M | -8.72M | 3.43M |
| Depreciation & Amortization | 18.55M | 17.23M | 19.46M | 18.98M | 18.1M | 14.12M | 24.47M | 21.8M | 12.42M | 13.83M | 12.65M |
| Stock-Based Compensation | 158K | 5.43M | 3.77M | 4.61M | 1.85M | 5.36M | 359K | 5.26M | 8.94M | 323K | 945K |
| Deferred Taxes | -1.96M | -2.88M | 344K | 4.53M | -5.17M | -1.91M | 0 | -13.44M | -6.24M | -1.72M | 1.84M |
| Other Non-Cash Items | -5.54M | 15.32M | 15.95M | 15.85M | 15.04M | 12.41M | 11.51M | 13.38M | 5.33M | 6.39M | 5.13M |
| Working Capital Changes | -23.54M | -26.3M | -37.28M | -33.69M | -11.27M | -26.98M | 7.61M | -44.22M | -10.26M | -3.46M | -20.96M |
| Change in Receivables | -9.57M | -19.26M | 0 | -12.3M | -9.71M | -13.33M | 9.04M | -18.02M | 758K | 4.01M | -20.04M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 9.29M | 6.25M | -2.25M | -3.75M | 2.31M | -4.01M | 0 | 9M | 4.41M | 2.34M | 7.49M |
| Cash from Investing | -29.8M | -18.38M | -8.86M | -19.04M | -25.92M | -20.82M | -4.83M | -9.08M | -5.44M | -9.75M | -11.58M |
| Capital Expenditures | -29.8M | -18.38M | -8.86M | -18.95M | -25.92M | -20.82M | -4.28M | -6.23M | -5.76M | -9.93M | -10.88M |
| CapEx % of Revenue | 4.75% | 3.29% | 1.74% | 3.62% | 5.26% | 4.7% | 1.06% | 1.69% | 1.68% | 2.97% | 3.37% |
| Acquisitions | 0 | 0 | 0 | -85K | 0 | 0 | 0 | -3.04M | 182K | 177K | 178K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | -552K | 810K | 715K | 177K | 178K |
| Cash from Financing | -29.69M | -74.66M | -21.73M | -13.61M | -22.13M | 40.9M | -33.87M | 2.55M | 3.19M | 14.98M | 12.19M |
| Debt Issued (Net) | -20.25M | -953K | -543K | -15.39M | -18.76M | -17.16M | -19.2M | 10.12M | 3.33M | 15.76M | 18.61M |
| Equity Issued (Net) | -11.26M | -78.01M | -21.56M | -276K | -3.41M | 63.11M | 0 | -5.97M | 0 | 25K | -59K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -4M | 0 | -1.6M | -146K | -1M | -6.56M |
| Share Repurchases | -11.73M | -78.01M | -21.56M | -276K | -3.41M | 0 | 0 | -5.97M | 0 | 0 | -118K |
| Other Financing | 1.82M | 4.31M | 366K | 2.05M | 35K | -1.05M | -14.67M | 0 | 0 | 190K | 200K |
| Net Change in Cash | 2.43M | -47.37M | 5.29M | 8.6M | -9.01M | 35.97M | 13M | -4.65M | -7.8M | 11.87M | 3.65M |
| Free Cash Flow | 32.31M | 27.29M | 27.05M | 22.91M | 14.09M | -4.75M | 47.44M | -4.03M | -11.51M | -3.29M | -7.84M |
| FCF Margin % | 5.15% | 4.89% | 5.32% | 4.38% | 2.86% | -1.07% | 11.71% | -1.09% | -3.36% | -0.98% | -2.43% |
| FCF Growth % | 63.88% | 0.92% | 18.06% | 62.61% | 396.82% | -110.01% | 1276.49% | 64.98% | -250.44% | 58.09% | - |
| FCF per Share | 2.15 | 1.74 | 1.48 | 1.21 | 0.75 | -0.26 | 2.68 | -0.23 | -0.65 | -0.19 | -0.44 |
| FCF Conversion (FCF/Net Income) | 0.68x | 1.24x | 1.07x | 1.33x | 1.86x | 1.23x | 6.66x | -0.49x | 0.36x | -0.74x | 1.94x |
| Interest Paid | 913K | 1.63M | 514K | 152K | 1.25M | 0 | 9.43M | 0 | 0 | 0 | 0 |
| Taxes Paid | -2.78M | 11.95M | 7.69M | 4.28M | 2.16M | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
Based on reported financial statements, IBEX exhibits significant volatility in cash conversion, with the OCF/NI ratio fluctuating from a low of 0.12 in 2025Q2 to a high of 2.91 in 2025Q4, suggesting that net income is frequently decoupled from actual cash generation capabilities.
The wide variance in the conversion ratio indicates that reported net income is heavily influenced by non-cash items and timing differences in revenue recognition. Investors should monitor whether this inconsistency stems from aggressive accrual accounting or the inherent lumpiness of BPO contract billing cycles.
As indicated by the quarterly data, IBEX's free cash flow trajectory remains inconsistent, with margins swinging from a negative 3.4% in 2024Q2 to a peak of 15.5% in 2025Q4, reflecting a business model that struggles to maintain steady cash flow generation across different periods.
The inability to sustain positive free cash flow suggests that the company's operational scaling is often offset by sudden cash outflows. This pattern warrants further investigation into whether the company's growth strategy is fundamentally cash-consumptive or if these dips are merely temporary timing mismatches.
According to recent SEC filings, IBEX consistently faces substantial working capital outflows, with a recurring negative impact on operating cash flow that reached a peak drain of $17.7M in 2024Q2, highlighting a persistent challenge in managing the cash conversion cycle effectively.
The recurring negative working capital changes suggest that the company is likely extending significant credit to clients or facing delays in collections that outpace its ability to manage payables. This persistent drain on cash flow may indicate a lack of bargaining power with larger enterprise customers.
Based on reported figures, IBEX has prioritized share repurchases, including a notable $46.6M outflow in 2025Q2, despite maintaining a relatively modest cash position, which suggests a management strategy that favors returning capital to shareholders over building a larger liquidity buffer for operational contingencies.
The decision to allocate significant capital to buybacks while operating cash flow remains volatile may limit the company's flexibility to invest in proprietary technology or weather potential sector downturns. Investors should monitor whether this capital allocation strategy is sustainable given the company's reliance on external growth.
Quick answers to the most common questions about buying IBEX stock.
IBEX Limited (IBEX) generated $45.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
IBEX Limited (IBEX) generated $27.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
IBEX Limited (IBEX) spent $18.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, IBEX Limited (IBEX) spent $78.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.